UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-01944 |
Principal Variable Contracts Funds, Inc. |
(Exact name of registrant as specified in charter)
801 Grand Avenue, Des Moines, IA 50309 |
(Address of principal executive offices) (Zip code)
Principal Global Investors, LLC, 801 Grand Avenue, Des Moines, IA 50309 |
(Name and address of agent for service)
Registrant’s telephone number, including area code: | 515-248-0156 |
Date of fiscal year end: | December 31, 2020 |
Date of reporting period: | December 31, 2020 |
ITEM 1 – REPORT TO STOCKHOLDERS
Principal
Variable
Contracts
Funds,
Inc.
Annual
Report
December
31,
2020
Beginning
on
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
you
may
not
be
receiving
paper
copies
of
the
Fund’s
shareholder
reports
from
the
insurance
company
that
offers
your
contract
unless
you
specifically
request
paper
copies
from
the
insurance
company
or
from
your
financial
intermediary.
Instead,
the
shareholder
reports
will
be
made
available
on
a
website,
and
the
insurance
company
will
notify
you
by
mail
each
time
a
report
is
posted
and
provide
you
with
a
website
link
to
access
the
report.
Instructions
for
requesting
paper
copies
will
be
provided
by
your
insurance
company.
If
you
already
elected
to
receive
shareholder
reports
electronically,
you
will
not
be
affected
by
this
change
and
you
need
not
take
any
action.
You
may
elect
to
receive
shareholder
reports
and
other
communications
from
the
insurance
company
electronically
by
following
the
instructions
provided
by
the
insurance
company.
You
may
elect
to
receive
all
future
reports
in
paper
free
of
charge
from
the
insurance
company.
You
can
inform
the
insurance
company
that
you
wish
to
continue
receiving
paper
copies
of
your
shareholder
reports
by
calling
1-800-247-
9988
if
you
have
a
life
insurance
policy
or
1-800-852-4450
if
you
have
an
annuity.
Your
election
to
receive
reports
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paper
will
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available
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your
contract.
Sign
up
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eDelivery!
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secure
and
ready
when
you
are,
sign
up
for
eDelivery
today.
Two
ways
to
sign
up
(some
restrictions
may
apply):
Visit
Principal.com
>
Log
in,
select
“My
Profile”,
then
select
“Manage
Delivery
Preferences”
Telephone:
>
Call
us
at
1-800-247-9988
if
you
have
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life
insurance
policy
or
1-800-852-4450
if
you
have
an
annuity.
Table
of
Contents
Not
FDIC
or
NCUA
insured
May
lose
value
•
Not
a
deposit
•
No
bank
or
credit
union
guarantee
Not
insured
by
any
Federal
government
agency
Economic
&
Financial
Market
Review
1
Important
Account
Information
2
Bond
Market
Index
Account
(unaudited)
3
Core
Plus
Bond
Account
(unaudited)
4
Diversified
Balanced
Account
(unaudited)
5
Diversified
Balanced
Managed
Volatility
Account
(unaudited)
6
Diversified
Balanced
Volatility
Control
Account
(unaudited)
7
Diversified
Growth
Account
(unaudited)
8
Diversified
Growth
Managed
Volatility
Account
(unaudited)
9
Diversified
Growth
Volatility
Control
Account
(unaudited)
10
Diversified
Income
Account
(unaudited)
11
Diversified
International
Account
(unaudited)
12
Equity
Income
Account
(unaudited)
13
Government
&
High
Quality
Bond
Account
(unaudited)
14
International
Emerging
Markets
Account
(unaudited)
15
LargeCap
Growth
Account
I
(unaudited)
16
LargeCap
S&P
500
Index
Account
(unaudited)
17
LargeCap
S&P
500
Managed
Volatility
Index
Account
(unaudited)
18
MidCap
Account
(unaudited)
19
Principal
Capital
Appreciation
Account
(unaudited)
20
Principal
LifeTime
2010
Account
(unaudited)
21
Principal
LifeTime
2020
Account
(unaudited)
22
Principal
LifeTime
2030
Account
(unaudited)
23
Principal
LifeTime
2040
Account
(unaudited)
24
Principal
LifeTime
2050
Account
(unaudited)
25
Principal
LifeTime
2060
Account
(unaudited)
26
Principal
LifeTime
Strategic
Income
Account
(unaudited)
27
Real
Estate
Securities
Account
(unaudited)
28
SAM
Balanced
Portfolio
(unaudited)
29
SAM
Conservative
Balanced
Portfolio
(unaudited)
30
SAM
Conservative
Growth
Portfolio
(unaudited)
31
SAM
Flexible
Income
Portfolio
(unaudited)
32
SAM
Strategic
Growth
Portfolio
(unaudited)
33
Short-Term
Income
Account
(unaudited)
34
SmallCap
Account
(unaudited)
35
Financial
Statements
36
Notes
to
Financial
Statements
77
Schedules
of
Investments
103
Financial
Highlights
(Includes
performance
information)
230
Report
of
Independent
Registered
Public
Accounting
Firm
250
Shareholder
Expense
Example
252
Supplemental
Information
256
1
Economic
&
Financial
Market
Review
The
wave
of
new
COVID-19
cases
and
fatalities
in
the
United
States
impacted
the
economy.
Consumer
confidence
weakened
in
December
and
was
well
below
pre-pandemic
levels.
The
latest
data
showed
household
spending
and
retail
sales
dipped
in
November
as
coastal
lockdowns
kept
people
from
normal
activities.
JPMorgan
Chase
private
credit/debit
card
data
showed
a
similar
moderate
downturn
in
spending
from
the
pattern
in
October.
Job
growth
had
been
stellar
but
slowed;
total
continuing
claims
for
jobless
benefits
had
been
falling,
but
the
pace
slackened
for
several
weeks.
However,
the
American
Staffing
Index
of
temp-help
jobs
improved.
There
was
a
clear
divergence
between
households
and
business.
National
surveys
of
business
purchasing
managers
weakened
modestly
in
December
but
were
still
at
healthy
levels.
The
New
York
Federal
Reserve
weekly
economic
indicator
suggests
U.S.
gross
domestic
product
(GDP)
was
only
(1.32)%
below
a
year
ago
the
week
ending
December
26,
the
best
datapoint
since
the
pandemic.
Parts
of
Europe,
especially
Germany,
were
still
under
the
scourge
of
rising
new
daily
cases
and
fatalities.
Stringent
lockdowns
and
falling
economic
indicators
suggested
a
moderate
contraction
in
fourth
quarter
Eurozone
GDP
even
though
a
trade
deal
has
been
mostly
finalized
as
the
United
Kingdom
exits
the
European
Union.
Eurozone
business
surveys
plunged
in
November,
but
the
collapse
was
mostly
reversed
in
December.
Retail
sales
tumbled
in
November.
Japan’s
economy
never
recovered
completely
from
the
October
2019
two-percentage-point
hike
in
the
Value-Added
Tax
when
the
pandemic
hit.
The
rebound
of
Japan’s
economy
from
the
virus-inspired
recession
has
been
sluggish.
Households,
self-isolating
from
a
surge
in
COVID-19
cases,
likely
flattened
activity
in
December.
Global
growth
helped;
China’s
economic
resurgence
and
U.S.
demand
are
keeping
Japan’s
exports
surprisingly
robust.
Inventories
have
fallen.
Business
sentiment
was
recovering;
the
purchasing
manager
survey
for
manufacturing
companies
was
the
highest
since
May
2019.
The
labor
market
improved
with
a
drop
in
the
jobless
rate
to
an
ultra-low
2.9%.
Overall
economic
growth
in
China
continued
to
rocket
ahead,
pushed
by
a
stunning
amount
of
government-directed
stimulus.
Retail
sales
finally
picked
versus
year-ago
levels,
but
for
the
eleven
months
through
November
are
still
4.8%
below
the
same
period
of
2019..
Investment
by
private
companies
lagged
dramatically
even
though
capital
spending
by
state-owned
businesses
was
up
significantly.
China’s
trade
surplus
hit
record
levels,
with
vigorous
exports
of
COVID-19-related
materials.
*Commentary
sourced
from
Outlook
for
2021
and
commentary
by
Robert
F.
Baur,
Ph.D.,
executive
director,
chief
global
economist.
All
data
from
Bloomberg,
unless
otherwise
stated.
2
Important
Account
Information
The
following
information
applies
to
all
accounts
shown
in
the
annual
report
(unless
noted):
The
line
graphs
on
the
following
pages
illustrate
the
growth
of
a
hypothetical
$10,000
investment.
For
each
account,
the
illustration
is
based
on
performance
of
the
Class
1
shares,
except
for
Diversified
Balanced
Account,
Diversified
Balanced
Managed
Volatility
Account,
Diversified
Balanced
Volatility
Control
Account,
Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Growth
Volatility
Control
Account,
and
Diversified
Income
Account
which
are
based
on
the
performance
of
the
Class
2
shares.
The
performance
of
other
share
classes
will
differ.
Investment
results
shown
represent
historical
performance
and
do
not
guarantee
future
results.
Your
investment’s
returns
and
principal
values
will
fluctuate
with
changes
in
interest
rates
and
other
market
conditions
so
the
value,
when
redeemed,
may
be
worth
more
or
less
than
original
costs.
Performance
shown
does
not
account
for
fees,
expenses,
and
charges
of
any
variable
insurance
contract
or
retirement
plan.
If
these
fees
were
reflected,
performance
would
be
lower.
Current
performance
may
be
lower
or
higher
than
the
performance
shown.
For
more
information,
including
the
most
recent
month-end
performance,
call
your
financial
professional,
or
call
800-222-5852.
*
Performance
assumes
reinvestment
of
all
dividends
and
capital
gains.
Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Account’s
oldest
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
Performance
does
not
reflect
the
impact
of
federal,
state,
or
municipal
taxes.
If
it
did,
performance
would
be
lower.
**
Performance
shown
for
the
benchmark
assumes
reinvestment
of
all
dividends
and
distributions.
Indices
are
unmanaged,
and
individuals
cannot
invest
directly
in
an
index.
.
3
Bond
Market
Index
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
current
income.
Under
normal
circumstances,
the
Account
uses
a
passive
investment
approach
known
as
"sampling"
to
invest
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
investments
designed
to
track
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
(the
"index")
at
the
time
of
purchase.
The
index
is
composed
of
investment
grade,
fixed
rate
debt
issues
with
maturities
of
one
year
or
more,
including
government
securities,
corporate
securities,
and
asset-backed
and
mortgage-
backed
securities
(securitized
products).
Security
specific
impacts
within
investment
grade
corporate
bonds
contributed. Security
specific
impacts
within
mortgage-backed
securities
contributed.
Lower
allocation
compared
to
benchmark
weight
to
commercial
mortgage-backed
securities
contributed.
Slightly
short
duration
position
relative
to
the
benchmark
as
interest
rates
decreased
detracted.
Slightly
lower
allocation
compared
to
benchmark
weight
to
investment
grade
corporate
bonds
detracted.
Security
specific
impacts
within
government
related
credit
detracted.
Value
of
a
$10,000
Investment*
May
15,
2012
-
December
31,
2020
1-Year
5-Year
Since
Inception
Inception
Date
Class
1
Shares
7.29%
4.17%
3.02%
5/15/12
4
Core
Plus
Bond
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
current
income
and,
as
a
secondary
objective,
capital
appreciation.
Under
normal
circumstances,
the
Account
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
bonds
or
other
debt
securities
at
the
time
of
purchase.
Such
investments
include
securities
issued
or
guaranteed
by
the
U.S.
government
or
its
agencies
or
instrumentalities
(including
collateralized
mortgage
obligations);
asset-backed
securities
or
mortgage-backed
securities
(securitized
products);
corporate
bonds;
and
foreign
securities,
including
emerging
market
securities.
Out-of-index
allocation
to
below
investment
grade
corporate
bonds,
overweight
allocation
to
investment
grade
corporate
bonds
and
long
duration
positioning
all
contributed.
Curve
positioning,
overweight
allocation
to
commercial
mortgage-backed
securities
(CMBS),
and
security
selection
within
commercial
mortgage-backed
securities
(CMBS)
all
detracted.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
9.55%
5.29%
4.46%
12/18/87
5
Diversified
Balanced
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
as
high
a
level
of
total
return
(consisting
of
reinvested
income
and
capital
appreciation)
as
is
consistent
with
reasonable
risk.
The
Account
operates
as
a
fund
of
funds
and
invests
in
funds
and
exchange-traded
funds
("ETFs")
of
Principal
Funds,
Inc.,
PVC,
Principal
Exchange-Traded
Funds,
and
other
fund
complexes
(collectively,
the
"underlying
funds").
It
generally
allocates
approximately
50%
of
its
assets
to
equity
index
underlying
funds
to
gain
broad
market
capitalization
exposure
to
both
U.S.
and
non-U.S.
investments
and
approximately
50%
to
fixed-income
index
underlying
funds
for
intermediate
duration
fixed-income
exposure.
U.S.
large-cap
equity
was
the
best
performing
underlying
holding.
U.S.
mid-cap
and
small-cap
equities
experienced
a
strong
bounce
back
toward
the
end
of
2020,
posting
double-digit
returns
for
the
year.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
and
performed
in
line
with
core
fixed
income.
Although
fixed
income
struggled
relative
to
U.S.
equities,
it
remains
a
strong
asset
class
supported
by
an
accommodative
Federal
Reserve.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date
Class
1
Shares
12.96%
9.11%
7.88%
5/1/17
12/30/09
Class
2
Shares
12.63%
8.91%
7.79%
12/30/09
–
Class
3
Shares
12.48%
8.75%
7.63%
12/9/20
12/30/09
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Account’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
6
Diversified
Balanced
Managed
Volatility
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
as
high
a
level
of
total
return
as
is
consistent
with
reasonable
risk,
with
an
emphasis
on
managing
volatility.
The
Account
operates
as
a
fund
of
funds
and
invests
in
funds
and
exchange-traded
funds
("ETFs")
of
Principal
Funds,
Inc.,
PVC,
Principal
Exchange-Traded
Funds
and
other
fund
complexes
(collectively,
the
"underlying
funds").
It
generally
allocates
approximately
50%
of
its
assets
to
equity
index
underlying
funds
to
gain
broad
market
capitalization
exposure
to
both
U.S.
and
non-U.S.
investments
and
approximately
50%
to
fixed-income
index
underlying
funds
for
intermediate
duration
fixed-income
exposure.
U.S.
large-cap
equity
was
the
best
performing
underlying
holding.
U.S.
mid-cap
and
small-cap
equities
experienced
a
strong
bounce
back
toward
the
end
of
2020,
posting
double-digit
returns
for
the
year.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
and
performed
in
line
with
core
fixed
income.
Although
fixed
income
struggled
relative
to
U.S.
equities,
it
remains
a
strong
asset
class
supported
by
an
accommodative
Federal
Reserve.
Value
of
a
$10,000
Investment*
October
31,
2013
-
December
31,
2020
1-Year
5-Year
Since
Inception
Inception
Date
Extended
Performance
Inception
Date***
Class
2
Shares
12.03%
8.50%
7.11%
10/31/13
–
Class
3
Shares
11.88%
8.34%
6.95%
12/9/20
10/31/13
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Account’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
7
Diversified
Balanced
Volatility
Control
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
as
high
a
level
of
total
return
(consisting
of
reinvested
income
and
capital
appreciation)
as
is
consistent
with
reasonable
risk,
while
seeking
to
control
volatility.
The Account
operates
as
a
fund
of
funds
and
invests
in
funds
and
exchange-traded
funds
("ETFs")
of
Principal
Funds,
Inc.,
PVC,
Principal
Exchange-Traded
Funds
and
other
fund
complexes
(collectively,
the
"underlying
funds").
The Account
also
invests
in
cash
and
cash
equivalents
(as
investments
and/or
to
serve
as
margin
or
collateral
for
derivatives
positions)
and
derivative
instruments
(primarily
exchange-traded
futures).
U.S.
large-cap
equity
was
the
best
performing
underlying
holding.
U.S.
mid-cap
and
small-cap
equities
experienced
a
strong
bounce
back
toward
the
end
of
2020,
posting
double-digit
returns
for
the
year.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
and
performed
in
line
with
core
fixed
income.
Although
fixed
income
struggled
relative
to
U.S.
equities,
it
remains
a
strong
asset
class
supported
by
an
accommodative
Federal
Reserve.
The
volatility
control
sleeve
struggled
and
was
the
worst
performing
underlying
investment.
Value
of
a
$10,000
Investment*
March
30,
2017
-
December
31,
2020
1-Year
Since
Inception
Inception
Date
Extended
Performance
Inception
Date
Class
2
Shares
8.82%
7.41%
3/30/17
–
Class
3
Shares
8.67%
7.26%
12/9/20
3/30/17
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Account’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
8
Diversified
Growth
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
capital
appreciation.
The Account
operates
as
a
fund
of
funds
and
invests
in
funds
and
exchange-
traded
funds
("ETFs")
of
Principal
Funds,
Inc.,
PVC,
Principal
Exchange-Traded
Funds,
and
other
fund
complexes
(collectively,
the
"underlying
funds").
It
generally
allocates
approximately
65%
of
its
assets
to
equity
index
underlying
funds
to
gain
broad
market
capitalization
exposure
to
both
U.S.
and
non-U.S.
investments
and
approximately
35%
to
fixed-income
index
underlying
funds
for
intermediate
duration
fixed-income
exposure.
U.S.
large-cap
equity
was
the
best
performing
underlying
holding.
U.S.
mid-cap
and
small-cap
equities
experienced
a
strong
bounce
back
toward
the
end
of
2020,
posting
double-digit
returns
for
the
year.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
and
performed
in
line
with
core
fixed
income.
Although
fixed
income
struggled
relative
to
U.S.
equities,
it
remains
a
strong
asset
class
supported
by
an
accommodative
Federal
Reserve.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date
Class
2
Shares
13.76%
10.21%
8.99%
12/30/09
–
Class
3
Shares
13.60%
10.05%
8.83%
12/9/20
12/30/09
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Account’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
9
Diversified
Growth
Managed
Volatility
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
capital
appreciation,
with
an
emphasis
on
managing
volatility.
The
Account
operates
as
a
fund
of
funds
and
invests
in
funds
and
exchange-traded
funds
("ETFs")
of
Principal
Funds,
Inc.,
PVC,
Principal
Exchange-Traded
Funds
and
other
fund
complexes
(collectively,
the
"underlying
funds").
It
generally
allocates
approximately
65%
of
its
assets
to
equity
index
underlying
funds
to
gain
broad
market
capitalization
exposure
to
both
U.S.
and
non-U.S.
investments
and
approximately
35%
to
fixed-income
index
underlying
funds
for
intermediate
duration
fixed-income
exposure.
U.S.
large-cap
equity
was
the
best
performing
underlying
holding.
U.S.
mid-cap
and
small-cap
equities
experienced
a
strong
bounce
back
toward
the
end
of
2020,
posting
double-digit
returns
for
the
year.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
and
performed
in
line
with
core
fixed
income.
Although
fixed
income
struggled
relative
to
U.S.
equities,
it
remains
a
strong
asset
class
supported
by
an
accommodative
Federal
Reserve.
Value
of
a
$10,000
Investment*
October
31,
2013
-
December
31,
2020
1-Year
5-Year
Since
Inception
Inception
Date
Extended
Performance
Inception
Date
Class
2
Shares
13.06%
9.70%
8.11%
10/31/13
–
Class
3
Shares
12.89%
9.53%
7.93%
12/9/20
10/31/13
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Account’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
10
Diversified
Growth
Volatility
Control
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
capital
appreciation,
while
seeking
to
control
volatility.
The Account
operates
as
a
fund
of
funds
and
invests
in
funds
and
exchange-traded
funds
("ETFs")
of
Principal
Funds,
Inc.,
PVC,
Principal
Exchange-Traded
Funds
and
other
fund
complexes
(collectively,
the
"underlying
funds").
It
also
invests
in
cash
and
cash
equivalents
(as
investments
and/or
to
serve
as
margin
or
collateral
for
derivatives
positions)
and
derivative
instruments
(primarily
exchange-traded
futures).
U.S.
large-cap
equity
was
the
best
performing
underlying
holding.
U.S.
mid-cap
and
small-cap
equities
experienced
a
strong
bounce
back
toward
the
end
of
2020,
posting
double-digit
returns
for
the
year.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
and
performed
in
line
with
core
fixed
income.
Although
fixed
income
struggled
relative
to
U.S.
equities,
it
remains
a
strong
asset
class
supported
by
an
accommodative
Federal
Reserve.
The
volatility
control
sleeve
struggled
and
was
the
worst
performing
underlying
investment.
Value
of
a
$10,000
Investment*
March
30,
2017
-
December
31,
2020
1-Year
Since
Inception
Inception
Date
Extended
Performance
Inception
Date
Class
2
Shares
8.98%
8.12%
3/30/17
–
Class
3
Shares
8.83%
7.98%
12/9/20
3/30/17
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Account’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
11
Diversified
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
a
high
level
of
total
return
(consisting
of
reinvestment
of
income
with
some
capital
appreciation).
The Account
operates
as
a
fund
of
funds
and
invests
in
funds
and
exchange-traded
funds
("ETFs")
of
Principal
Funds,
Inc.,
PVC,
Principal
Exchange-
Traded
Funds,
and
other
fund
complexes
(collectively,
the
"underlying
funds").
It
generally
allocates
approximately
35%
of
its
assets
to
equity
index
underlying
funds
to
gain
broad
market
capitalization
exposure
to
both
U.S.
and
non-U.S.
investments
and
approximately
65%
to
fixed-income
index
underlying
funds
for
intermediate
duration
fixed-income
exposure.
U.S.
large-cap
equity
was
the
best
performing
underlying
holding.
U.S.
mid-cap
and
small-cap
equities
experienced
a
strong
bounce
back
toward
the
end
of
2020,
posting
double-digit
returns
for
the
year.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
and
performed
in
line
with
core
fixed
income.
Although
fixed
income
struggled
relative
to
U.S.
equities,
it
remains
a
strong
asset
class
supported
by
an
accommodative
Federal
Reserve.
Value
of
a
$10,000
Investment*
May
15,
2012
-
December
31,
2020
1-Year
5-Year
Since
Inception
Inception
Date
Extended
Performance
Inception
Date
Class
2
Shares
11.27%
7.52%
6.72%
5/15/12
–
Class
3
Shares
11.11%
7.35%
6.56%
12/9/20
5/15/12
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Account’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
12
Diversified
International
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
The
Account
invests
primarily
in
foreign
equity
securities.
It
has
no
limitation
on
the
percentage
of
assets
that
are
invested
in
any
one
country
or
denominated
in
any
one
currency,
but
the
Account
typically
invests
in
foreign
securities
of
at
least
20
countries.
Primary
consideration
is
given
to
securities
of
issuers
of
developed
areas
(for
example,
Japan,
Western
Europe,
Canada,
Australia,
Hong
Kong,
and
Singapore);
however,
the
Account
also
invests
in
emerging
market
securities.
The
Account
invests
in
equity
securities
regardless
of
market
capitalization
size
and
style
(growth
or
value).
Strong
stock
selection
was
witnessed
in
Japan
and
the
information
technology
and
energy
sectors.
Logitech
International,
a
leading
designer
and
manufacturer
of
personal
peripherals
for
the
PC
and
other
digital
platforms,
benefitted
most
in
categories
that
enable
people
to
“work,
game,
engage,
and
connect”,
including
PC
webcams
and
video
collaboration.
Neste
Corporation,
the
European
refiner,
reported
strong
renewables
business
performance
during
the
period,
while
Vestas
Wind
Systems,
the
Denmark-based
wind
turbine
manufacturer,
is
experiencing
an
increase
in
demand
for
wind
power
generation
and
therefore,
its
products
and
services,
driven
by
an
increase
in
global
power
demand
while
reducing
output
from
coal.
On
the
other
hand,
negative
attribution
was
seen
in
Canada
and
the
financials
and
consumer
discretionary
sectors.
Shopify,
the
Canadian
cloud-based
commerce
platform,
was
not
held
by
the
portfolio
and
benefitted
from
greater
customer
adoption
of
e-commerce
solutions
and
increased
online
shopping,
leading
to
underperformance
for
the
portfolio.
AerCap
Holdings,
the
leading
global
aircraft
leasing
company,
experienced
an
ongoing
headwind
due
to
less
demand
for
air
travel
in
the
COVID-19
environment
and
has
since
been
exited
by
the
portfolio.
BNP
Paribas,
a
diversified
bank
based
in
France,
has
experienced
pressures
due
to
a
tough
revenue
backdrop
and
lower
fees
over
the
year,
but
is
beginning
to
see
benefits
from
its
transformation
plan
with
cost
savings
continuing
to
accelerate.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
16.16%
8.77%
6.22%
5/2/94
13
Equity
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
current
income
and
long-term
growth
of
income
and
capital.
Under
normal
circumstances,
the
Account
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
dividend-paying
equity
securities
at
the
time
of
purchase.
It
usually
invests
in
equity
securities
of
companies
with
large
and
medium
market
capitalizations.
The
Account
invests
in
value
equity
securities,
an
investment
strategy
that
emphasizes
buying
equity
securities
that
appear
to
be
undervalued.
Taiwan
Semiconductor
Manufacturing
Co.,
Ltd.
(TSM)
outperformed
as
the
company
beat
expectations
and
raised
their
full
year
guidance.
Deere
&
Company
(DE)
outperformed
on
the
success
of
the
company’s
innovative
agriculture
product
lines
as
agriculture
markets
recover.
Apple
Inc.
(AAPL)
outperformed
as
the
company
continues
to
top
expectations
and
diversify
their
revenue
streams.
Delta
Air
Lines,
Inc.
(DAL)
detracted
as
the
airline
industry
faced
a
steep
reduction
in
demand
due
to
the
COVID-19
pandemic.
EOG
Resources,
Inc.
(EOG)
underperformed
as
the
energy
sector
was
the
worst
performing
sector
within
the
Russell
1000
Value
Index
on
the
year,
as
the
sector
faces
continued
headwinds.
Tyson
Foods,
Inc.
(TSN)
detracted
from
relative
results
as
foodservice
demand
remained
weak
through
the
year
as
restaurants
were
hit
hard
by
dine-in
bans.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date***
Class
1
Shares
6.43%
12.83%
11.63%
4/28/98
–
Class
2
Shares
6.15%
12.55%
11.35%
5/1/01
–
Class
3
Shares
6.00%
12.40%
11.21%
12/9/20
4/28/98
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Account’s
Class
1
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
14
Government
&
High
Quality
Bond
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
a
high
level
of
current
income
consistent
with
safety
and
liquidity.
The Account
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
debt
securities
issued
by
the
U.S.
government,
its
agencies
or
instrumentalities
or
debt
securities
that
are
rated,
at
the
time
of
purchase,
AAA
by
S&P
Global
or
Aaa
by
Moody's,
or,
if
unrated,
in
the
opinion
of
those
selecting
such
investments,
are
of
comparable
quality.
It
maintains
an
average
portfolio
duration
that
is
within
from
50%
to
150%
of
the
duration
of
the
Bloomberg
Barclays
MBS
Fixed
Rate
Index.
As
a
result
of
the
COVID
crisis
in
early
2020
Treasury
rates
rallied
and
the
Federal
Reserve
embarked
upon
its
QE4
purchase
programs.
With
this
support,
Treasury
rates
remained
low
over
the
course
of
the
year
with
the
primary
30-year
mortgage
rate
moving
from
approximately
3.75%
in
December
2019
to
approximately
2.70%
in
December
2020.
This
decline
resulted
in
high
prepayment
speeds
within
the
mortgage-
backed
securities
market
and
increased
demand
for
specified
pools
thereby
benefiting
specified
pool
prices,
particularly
after
the
first
quarter.
Further,
the
specified
pools
held
by
the Account
experienced
prepayment
rates
that
were
lower
than
generic
collateral
resulting
in
additional
carry
for
the
Account.
As
the
specified
pools
comprise
the
majority
of
pools
held
by
the Account
this
was
a
primary
contributor
to
performance.
Out-of-index
allocation
to
non-agency
commercial
mortgage-backed
securities
was
the
largest
detractor
to
performance
for
the
year.
Further,
out-of-index
allocations
to
agency
collateralized
mortgage
obligations,
and
agency
commercial
mortgage-backed
securities
also
detracted.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
2.87%
2.76%
2.86%
5/6/93
15
International
Emerging
Markets
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
19.23%
11.28%
2.93%
10/24/00
The
investment
seeks
long-term
growth
of
capital.
The
Account
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
equity
securities
of
emerging
market
companies
at
the
time
of
purchase.
The
adviser
considers
a
security
to
be
tied
economically
to
an
emerging
market
(an
"emerging
market
security")
if
the
issuer
of
the
security
has
its
principal
place
of
business
or
principal
office
in
an
emerging
market,
has
its
principal
securities
trading
market
in
an
emerging
market,
or
derives
a
majority
of
its
revenue
from
emerging
markets.
The
Greater
China
region
was
the
best
performer
during
the
period,
entirely
driven
by
positive
stock
selection.
The
EMEA
region
was
the
other
standout
market
where
South
Africa
was
the
top
relative
performer.
At
the
country
level,
Argentina
was
a
top
performer,
led
by
our
e-commerce
holding,
MercadoLibre,
up
191.7%.
From
a
sector
standpoint,
communication
services
and
consumer
discretionary
were
the
best
performers.
The
consumer
sector
was
highlighted
by
our
e-commerce
exposure
and
online
food
delivery
holding,
Meituan,
up
190.5%.
Communication
services
outperformance
was
driven
by
our
holdings
in
Tencent
and
NetEase,
up
51.3%
and
57.8%.
Other
notable
contributors
to
our
strategy
were
in
the
information
technology
sector,
led
by
Taiwan
Semiconductor,
up
74.7%
and
Samsung
Electronics,
up
59.9%.
Negative
stock
selection
in
South
Korea,
India,
and
Brazil
were
the
main
sources
of
weakness
during
the
period.
The
financials
sector
was
the
worst
relative
performer
during
the
period,
largely
driven
by
our
holding
in
IRB
Brasil.
The
company
came
under
pressure
during
the
period
following
a
short
report
published
by
Squadra
(Rio-based
hedge
fund)
which
questioned
their
accounting
methods.
We
were
also
hurt
by
our
Latin
American
holdings,
Credicorp,
down
18.0%,
Petrobras
Distribuidora,
down
40.7%,
and
Petrobras,
down
46.9%.
16
LargeCap
Growth
Account
I
Investment
Advisor:
Principal
Global
Investors,
LLC
Sub-Advisors:
Brown
Advisory,
LLC,
and
T.
Rowe
Price
Associates,
Inc.
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
Under
normal
circumstances,
the
Account
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
equity
securities
of
companies
with
large
market
capitalizations
at
the
time
of
purchase.
For
this
Account,
companies
with
large
market
capitalizations
are
those
with
market
capitalizations
within
the
range
of
companies
comprising
the
Russell
1000®
Growth
Index.
The Account
is
non-diversified.
The
communication
services
sector
was
the
top
performing
sector,
driven
by
strong
stock
selection.
Stock
selection
within
the
health
care,
consumer
staples,
and
real
estate
sectors
also
benefitted.
The
information
technology
sector
was
the
worst
performing
sector,
driven
by
an
underweight
to
the
sector
and
poor
stock
selection.
An
overweight
to
industrials
and
health
care
was
also
a
headwind
for
the
period.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
36.20%
20.85%
16.90%
6/1/94
17
LargeCap
S&P
500
Index
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
Under
normal
circumstances,
the
Account
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
equity
securities
of
companies
that
compose
the
S&P
500
Index
at
the
time
of
purchase.
The
index
is
designed
to
represent
U.S.
equities
with
risk/return
characteristics
of
the
large
cap
universe.
During
the
12-month
period
ending
in
December
2020,
the
LargeCap
S&P
500
Index
Account
was
in
line
with
the
S&P
500
Index.
It
uses
an
indexing
strategy
and
does
not
attempt
to
manage
market
volatility,
use
defensive
strategies
or
reduce
the
effect
of
any
long-term
periods
of
negative
stock
market
performance.
Eight
of
the
eleven
economic
sectors
in
the
index
posted
positive
returns
during
the
period
with
the
information
technology
and
consumer
discretionary
sectors
providing
the
best
return.
NVIDIA,
PayPal
Holdings,
and
Apple
contributed
to
performance
for
the
12-month
period
ending
December.
The
energy
and
real
estate
sectors
recorded
the
worst
returns
during
the
period.
Occidental
Petroleum,
Raytheon,
and
Wells
Fargo
detracted
from
performance
for
the
12-month
period
ending
in
December.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date***
Class
1
Shares
18.08%
14.90%
13.54%
5/3/99
–
Class
2
Shares
17.77%
14.60%
13.26%
5/1/15
5/3/99
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Account’s
Class
1
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
18
LargeCap
S&P
500
Managed
Volatility
Index
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Sub-Advisor:
Spectrum
Asset
Management,
Inc.
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital,
with
an
emphasis
on
managing
volatility.
Under
normal
circumstances,
the
Account
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
equity
securities
of
companies
that
compose
the
S&P
500
Index
at
the
time
of
each
purchase.
The
index
is
designed
to
represent
U.S.
equities
with
risk/return
characteristics
of
the
large
cap
universe,
which
include
growth
and
value
stocks.
During
the
12-month
period
ending
in
December
2020,
the
LargeCap
S&P
500
Managed
Volatility
Index
Account
was
in
line
with
the
S&P
500
Index.
It
uses
an
indexing
strategy
and
does
not
attempt
to
manage
market
volatility,
use
defensive
strategies
or
reduce
the
effect
of
any
long-term
periods
of
negative
stock
market
performance.
Eight
of
the
eleven
economic
sectors
in
the
index
posted
positive
returns
during
the
period
with
the
information
technology
and
consumer
discretionary
sectors
providing
the
best
return.
NVIDIA,
PayPal
Holdings,
and
Apple
contributed
to Account
performance
for
the
12-month
period
ending
December.
The
energy
and
real
estate
sectors
recorded
the
worst
returns
during
the
period.
Occidental
Petroleum,
Raytheon,
and
Wells
Fargo
detracted
from Account
performance
for
the
12-month
period
ending
in
December.
Value
of
a
$10,000
Investment*
October
31,
2013
-
December
31,
2020
1-Year
5-Year
Since
Inception
Inception
Date
Class
1
Shares
16.67%
13.82%
12.03%
10/31/13
19
MidCap
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
Under
normal
circumstances,
the
Account
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
equity
securities
of
companies
with
medium
market
capitalizations
at
the
time
of
purchase.
For
this
Account,
companies
with
medium
market
capitalizations
are
those
with
market
capitalizations
within
the
range
of
companies
comprising
the
Russell
Midcap®
Index.
During
2020
the
MidCap
Account
benefited
from
both
positive
company
selection
and
sector
allocation.
Company
selection
in
the
financials,
industrials,
and
utilities
sectors
drove
the
relative
outperformance
for
the
year.
The
account
was
also
helped
by
its
underweight
positions
in
the
energy
and
utilities
sectors,
as
they
were
two
of
the
market’s
lagging
sectors.
The
largest
contributor
for
the
year
was
Wix.com,
a
founder-
led
software
company
that
offers
easy-to-use
website
building
tools.
Wix.com
enables
the
creation
of
a
sophisticated
digital
presence
at
an
attractive
price,
which
has
become
even
more
important
over
the
last
year.
The
MidCap
Account’s
next
largest
contributor
was
Autodesk,
the
leader
in
computer-aided
design
software
that
is
essential
for
architects
and
manufacturers.
Another
important
contributor
was
long-time
holding
Copart
which
provides
auction
and
remarketing
services
for
salvaged
vehicles.
The
largest
detractor
during
the
year
was
Howard
Hughes,
a
real
estate
developer
with
attractive
projects
in
growing
U.S.
markets
such
as
Houston
and
Las
Vegas.
COVID-19
has
impacted
some
of
the
markets
where
Howard
Hughes
operates,
and
the
company’s
shares
underperformed.
The
MidCap
Account’s
next
largest
detractor
was
Markel,
a
specialty-insurance
company
with
decades
of
experience
successfully
underwriting
non-standard
and
hard-to-place
risks.
Another
detractor
for
the
year
was
Arch
Capital
Group,
a
provider
of
mortgage
insurance,
reinsurance,
and
specialty
insurance
with
a
management
team
that
focuses
on
long-term
returns
through
cycles.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
18.33%
17.00%
15.87%
12/18/87
Class
2
Shares
18.07%
16.71%
15.58%
9/9/09
20
Principal
Capital
Appreciation
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
growth
of
capital.
The Account
invests
primarily
in
equity
securities
of
companies
with
any
market
capitalization,
but
it
has
a
greater
exposure
to
large
market
capitalization
companies
than
small
or
medium
market
capitalization
companies.
Those
managing
the
Account's
investments
seek
to
invest
in
securities
of
businesses
that
they
believe
are
trading
at
a
discount
to
their
private
market
value
(i.e.,
the
value
of
the
business
if
it
was
sold),
have
a
competitive
advantage,
and/or
that
have
barriers
to
entry
in
their
respective
industries.
Taiwan
Semiconductor
Manufacturing
Co.,
Ltd.
(TSM)
outperformed
as
the
company
beat
expectations
and
raised
their
full
year
guidance.
Deckers
Outdoor
Corporation
(DECK)
contributed
to
relative
results
as
HOKA
sales
drove
shares
higher.
Not
owning
Exxon
Mobil
(XOM)
contributed
to
relative
results.
Not
owning
Tesla
Inc.
(TSLA)
detracted
from
relative
results.
Fidelity
National
Financial,
Inc.
(FNF)
a
title
insurance
company,
has
seen
strong
refinance
strength
within
residential,
but
shares
have
trailed
the
broader
markets
as
investors
have
reacted
negatively
to
the
acquisition
announcement
of
FGL
Holdings.
JPMorgan
Chase
&
Co.
(JPM)
detracted
as
investors
became
concerned
that
banks
faced
net
interest
margin
pressure
during
the
year
as
Treasury
rates
dropped.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
18.72%
14.89%
13.27%
4/28/98
Class
2
Shares
18.44%
14.60%
12.99%
11/6/01
21
Principal
LifeTime
2010
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The
Account
operates
as
a
"target
date
fund"
that
invests
according
to
an
asset
allocation
strategy
designed
for
investors
having
a
retirement
investment
goal
close
to
the
year
in
the
Account's
name.
The
Account's
asset
allocation
will
become
more
conservative
over
time
as
investment
goals
near
(for
example,
retirement,
which
is
assumed
to
begin
at
age
65)
and
investors
become
more
risk-averse.
The
Account
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Performance
in
the
non-U.S.
equity
space
contributed
positively
for
the
year
driven
by
strong
performance
of
the
Diversified
International
and
Overseas
investment
option
against
their
respective
indices.
An
overweight
to
growth
exposure
within
U.S.
equity
across
the
series
was
a
contributor
to
performance
as
growth
was
favored
relative
to
value
for
the
year.
Asset
class
positioning
was
a
positive
contributor
for
the
year
driven
largely
by
an
overweight
to
U.S.
equities
in
all
vintages,
besides
those
in-retirement
which
are
more
conservatively
positioned.
Manager
performance
within
the
real
asset
space
contributed
positively
in
the
later-dated
vintages
as
the
Real
Estate
Securities
investment
option
outperformed
its
index
for
the
year.
Active
management
within
the
U.S.
large-cap
equity
space
detracted
for
the
year
as
the
Blue
Chip
and
LargeCap
Growth
I
investment
options
lagged
their
indices.
The
inclusion
of
a
non-U.S.
value
strategy,
Overseas,
detracted
from
a
style
selection
perspective
as
value
was
out
of
favor
for
the
year.
Performance
of
the
High
Income
investment
option
hindered
returns
as
it
lagged
both
its
manager
index
and
the
high
yield
exposure
of
the
S&P
Target
Date
index
for
the
year.
An
overweight
to
real
assets
detracted
from
performance
for
the
year,
causing
the
portfolio
to
forgo
better
opportunities
for
absolute
performance
in
other
asset
classes.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
11.40%
7.46%
6.43%
8/30/04
22
Principal
LifeTime
2020
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The
Account
operates
as
a
"target
date
fund"
that
invests
according
to
an
asset
allocation
strategy
designed
for
investors
having
a
retirement
investment
goal
close
to
the
year
in
the
Account's
name.
The
Account's
asset
allocation
will
become
more
conservative
over
time
as
investment
goals
near
(for
example,
retirement,
which
is
assumed
to
begin
at
age
65)
and
investors
become
more
risk-averse.
The
Account
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Performance
in
the
non-U.S.
equity
space
contributed
positively
for
the
year
driven
by
strong
performance
of
the
Diversified
International
and
Overseas
investment
option
against
their
respective
indices.
An
overweight
to
growth
exposure
within
U.S.
equity
across
the
series
was
a
contributor
to
performance
as
growth
was
favored
relative
to
value
for
the
year.
Asset
class
positioning
was
a
positive
contributor
for
the
year
driven
largely
by
an
overweight
to
U.S.
equities
in
all
vintages,
besides
those
in-retirement
which
are
more
conservatively
positioned.
Manager
performance
within
the
real
asset
space
contributed
positively
in
the
later-dated
vintages
as
the
Real
Estate
Securities
investment
option
outperformed
its
index
for
the
year.
Active
management
within
the
U.S.
large-cap
equity
space
detracted
for
the
year
as
the
Blue
Chip
and
LargeCap
Growth
I
investment
options
lagged
their
indices.
The
inclusion
of
a
non-U.S.
value
strategy,
Overseas,
detracted
from
a
style
selection
perspective
as
value
was
out
of
favor
for
the
year.
Performance
of
the
High
Income
investment
option
hindered
returns
as
it
lagged
both
its
manager
index
and
the
high
yield
exposure
of
the
S&P
Target
Date
index
for
the
year.
An
overweight
to
real
assets
detracted
from
performance
for
the
year,
causing
the
portfolio
to
forgo
better
opportunities
for
absolute
performance
in
other
asset
classes.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
12.89%
8.94%
7.76%
8/30/04
23
Principal
LifeTime
2030
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The
Account
operates
as
a
"target
date
fund"
that
invests
according
to
an
asset
allocation
strategy
designed
for
investors
having
a
retirement
investment
goal
close
to
the
year
in
the
Account's
name.
The
Account's
asset
allocation
will
become
more
conservative
over
time
as
investment
goals
near
(for
example,
retirement,
which
is
assumed
to
begin
at
age
65)
and
investors
become
more
risk-averse.
The
Account
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Performance
in
the
non-U.S.
equity
space
contributed
positively
for
the
year
driven
by
strong
performance
of
the
Diversified
International
and
Overseas
investment
option
against
their
respective
indices.
An
overweight
to
growth
exposure
within
U.S.
equity
across
the
series
was
a
contributor
to
performance
as
growth
was
favored
relative
to
value
for
the
year.
Asset
class
positioning
was
a
positive
contributor
for
the
year
driven
largely
by
an
overweight
to
U.S.
equities
in
all
vintages,
besides
those
in-retirement
which
are
more
conservatively
positioned.
Manager
performance
within
the
real
asset
space
contributed
positively
in
the
later-dated
vintages
as
the
Real
Estate
Securities
investment
option
outperformed
its
index
for
the
year.
Active
management
within
the
U.S.
large-cap
equity
space
detracted
for
the
year
as
the
Blue
Chip
and
LargeCap
Growth
I
investment
options
lagged
their
indices.
The
inclusion
of
a
non-U.S.
value
strategy,
Overseas,
detracted
from
a
style
selection
perspective
as
value
was
out
of
favor
for
the
year.
Performance
of
the
High
Income
investment
option
hindered
returns
as
it
lagged
both
its
manager
index
and
the
high
yield
exposure
of
the
S&P
Target
Date
index
for
the
year.
An
overweight
to
real
assets
detracted
from
performance
for
the
year,
causing
the
portfolio
to
forgo
better
opportunities
for
absolute
performance
in
other
asset
classes.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
14.89%
10.28%
8.69%
8/30/04
24
Principal
LifeTime
2040
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The
Account
operates
as
a
"target
date
fund"
that
invests
according
to
an
asset
allocation
strategy
designed
for
investors
having
a
retirement
investment
goal
close
to
the
year
in
the
Account's
name.
The
Account's
asset
allocation
will
become
more
conservative
over
time
as
investment
goals
near
(for
example,
retirement,
which
is
assumed
to
begin
at
age
65)
and
investors
become
more
risk-averse.
The
Account
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Performance
in
the
non-U.S.
equity
space
contributed
positively
for
the
year
driven
by
strong
performance
of
the
Diversified
International
and
Overseas
investment
option
against
their
respective
indices.
An
overweight
to
growth
exposure
within
U.S.
equity
across
the
series
was
a
contributor
to
performance
as
growth
was
favored
relative
to
value
for
the
year.
Asset
class
positioning
was
a
positive
contributor
for
the
year
driven
largely
by
an
overweight
to
U.S.
equities
in
all
vintages,
besides
those
in-retirement
which
are
more
conservatively
positioned.
Manager
performance
within
the
real
asset
space
contributed
positively
in
the
later-dated
vintages
as
the
Real
Estate
Securities
investment
option
outperformed
its
index
for
the
year.
Active
management
within
the
U.S.
large-cap
equity
space
detracted
for
the
year
as
the
Blue
Chip
and
LargeCap
Growth
I
investment
options
lagged
their
indices.
The
inclusion
of
a
non-U.S.
value
strategy,
Overseas,
detracted
from
a
style
selection
perspective
as
value
was
out
of
favor
for
the
year.
Performance
of
the
High
Income
investment
option
hindered
returns
as
it
lagged
both
its
manager
index
and
the
high
yield
exposure
of
the
S&P
Target
Date
index
for
the
year.
An
overweight
to
real
assets
detracted
from
performance
for
the
year,
causing
the
portfolio
to
forgo
better
opportunities
for
absolute
performance
in
other
asset
classes.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
16.11%
11.18%
9.48%
8/30/04
25
Principal
LifeTime
2050
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The
Account
operates
as
a
"target
date
fund"
that
invests
according
to
an
asset
allocation
strategy
designed
for
investors
having
a
retirement
investment
goal
close
to
the
year
in
the
Account's
name.
The
Account's
asset
allocation
will
become
more
conservative
over
time
as
investment
goals
near
(for
example,
retirement,
which
is
assumed
to
begin
at
age
65)
and
investors
become
more
risk-averse.
The
Account
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Performance
in
the
non-U.S.
equity
space
contributed
positively
for
the
year
driven
by
strong
performance
of
the
Diversified
International
and
Overseas
investment
option
against
their
respective
indices.
An
overweight
to
growth
exposure
within
U.S.
equity
across
the
series
was
a
contributor
to
performance
as
growth
was
favored
relative
to
value
for
the
year.
Asset
class
positioning
was
a
positive
contributor
for
the
year
driven
largely
by
an
overweight
to
U.S.
equities
in
all
vintages,
besides
those
in-retirement
which
are
more
conservatively
positioned.
Manager
performance
within
the
real
asset
space
contributed
positively
in
the
later-dated
vintages
as
the
Real
Estate
Securities
investment
option
outperformed
its
index
for
the
year.
Active
management
within
the
U.S.
large-cap
equity
space
detracted
for
the
year
as
the
Blue
Chip
and
LargeCap
Growth
I
investment
options
lagged
their
indices.
The
inclusion
of
a
non-U.S.
value
strategy,
Overseas,
detracted
from
a
style
selection
perspective
as
value
was
out
of
favor
for
the
year.
Performance
of
the
High
Income
investment
option
hindered
returns
as
it
lagged
both
its
manager
index
and
the
high
yield
exposure
of
the
S&P
Target
Date
index
for
the
year.
An
overweight
to
real
assets
detracted
from
performance
for
the
year,
causing
the
portfolio
to
forgo
better
opportunities
for
absolute
performance
in
other
asset
classes.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
16.68%
11.68%
9.81%
8/30/04
26
Principal
LifeTime
2060
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The
Account
operates
as
a
"target
date
fund"
that
invests
according
to
an
asset
allocation
strategy
designed
for
investors
having
a
retirement
investment
goal
close
to
the
year
in
the
Account's
name.
The
Account's
asset
allocation
will
become
more
conservative
over
time
as
investment
goals
near
(for
example,
retirement,
which
is
assumed
to
begin
at
age
65)
and
investors
become
more
risk-averse.
The
Account
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Performance
in
the
non-U.S.
equity
space
contributed
positively
for
the
year
driven
by
strong
performance
of
the
Diversified
International
and
Overseas
investment
option
against
their
respective
indices.
An
overweight
to
growth
exposure
within
U.S.
equity
across
the
series
was
a
contributor
to
performance
as
growth
was
favored
relative
to
value
for
the
year.
Asset
class
positioning
was
a
positive
contributor
for
the
year
driven
largely
by
an
overweight
to
U.S.
equities
in
all
vintages,
besides
those
in-retirement
which
are
more
conservatively
positioned.
Manager
performance
within
the
real
asset
space
contributed
positively
in
the
later-dated
vintages
as
the
Real
Estate
Securities
investment
option
outperformed
its
index
for
the
year.
Active
management
within
the
U.S.
large-cap
equity
space
detracted
for
the
year
as
the
Blue
Chip
and
LargeCap
Growth
I
investment
options
lagged
their
indices.
The
inclusion
of
a
non-U.S.
value
strategy,
Overseas,
detracted
from
a
style
selection
perspective
as
value
was
out
of
favor
for
the
year.
Performance
of
the
High
Income
investment
option
hindered
returns
as
it
lagged
both
its
manager
index
and
the
high
yield
exposure
of
the
S&P
Target
Date
index
for
the
year.
An
overweight
to
real
assets
detracted
from
performance
for
the
year,
causing
the
portfolio
to
forgo
better
opportunities
for
absolute
performance
in
other
asset
classes.
Value
of
a
$10,000
Investment*
May
1,
2013
-
December
31,
2020
1-Year
5-Year
Since
Inception
Inception
Date
Class
1
Shares
16.58%
11.76%
10.27%
5/1/13
27
Principal
LifeTime
Strategic
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
current
income,
and
as
a
secondary
objective,
capital
appreciation.
The
Account
invests
according
to
an
asset
allocation
strategy
designed
for
investors
primarily
seeking
current
income
and
secondarily
capital
appreciation.
The
Account's
asset
allocation
is
designed
for
investors
who
are
approximately
15
years
beyond
the
normal
retirement
age
of
65.
The
Account
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Performance
in
the
non-U.S.
equity
space
contributed
positively
for
the
year
driven
by
strong
performance
of
the
Diversified
International
and
Overseas
investment
option
against
their
respective
indices.
An
overweight
to
growth
exposure
within
U.S.
equity
across
the
series
was
a
contributor
to
performance
as
growth
was
favored
relative
to
value
for
the
year.
Asset
class
positioning
was
a
positive
contributor
for
the
year
driven
largely
by
an
overweight
to
U.S.
equities
in
all
vintages,
besides
those
in-retirement
which
are
more
conservatively
positioned.
Manager
performance
within
the
real
asset
space
contributed
positively
in
the
later-dated
vintages
as
the
Real
Estate
Securities
investment
option
outperformed
its
index
for
the
year.
Active
management
within
the
U.S.
large-cap
equity
space
detracted
for
the
year
as
the
Blue
Chip
and
LargeCap
Growth
I
investment
options
lagged
their
indices.
The
inclusion
of
a
non-U.S.
value
strategy,
Overseas,
detracted
from
a
style
selection
perspective
as
value
was
out
of
favor
for
the
year.
Performance
of
the
High
Income
investment
option
hindered
returns
as
it
lagged
both
its
manager
index
and
the
high
yield
exposure
of
the
S&P
Target
Date
index
for
the
year.
An
overweight
to
real
assets
detracted
from
performance
for
the
year,
causing
the
portfolio
to
forgo
better
opportunities
for
absolute
performance
in
other
asset
classes.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
10.30%
6.51%
5.41%
8/30/04
28
Real
Estate
Securities
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Sub-Advisor:
Principal
Real
Estate
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
generate
a
total
return.
Under
normal
circumstances,
the
Account
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
equity
securities
of
companies
principally
engaged
in
the
real
estate
industry
at
the
time
of
purchase.
A
real
estate
company
has
at
least
50%
of
its
assets,
income
or
profits
derived
from
products
or
services
related
to
the
real
estate
industry.
It
is
non-diversified.
An
overweight
to
Equinix,
Inc.,
a
U.S.
data
center
stock,
contributed.
The
data
center
space
is
one
of
the
few
REIT
sectors
that
has
seen
relatively
minimal
negative
operational
impact
from
COVID-19,
while
also
seeing
positive
leasing
momentum
driven
by
healthy
demand.
Notably,
the
company’s
interconnection
business
has
particularly
benefited
from
more
distributed
network
traffic
and
remote
working.
An
overweight
to
Prologis,
Inc.,
a
U.S.
industrial
stock,
contributed.
Demand
for
logistics
space
as
ecommerce
sales
experienced
a
material
acceleration
during
the
pandemic
contributed.
Fundamentals
remain
favorable
as
retailers
continue
to
reconfigure
their
supply
chains
to
meet
increased
online
demand.
An
overweight
position
to
office
stock
Alexandria
Real
Estate
Equities,
Inc.
contributed.
Alexandria
owns
and
develops
lab
and
biotech
office
space
that
experienced
a
surge
in
demand
as
significant
dollars
were
invested
in
finding
a
cure
for
COVID-19.
An
overweight
to
AvalonBay
Communities,
Inc.,
a
U.S.
apartments
stock,
detracted.
The
stock
suffered
from
slow
leasing
activities
and
poor
pricing
in
coastal
gateway
markets
due
to
impacts
from
the
work-from-home
trend
as
a
result
of
COVID-19.
Regulatory
uncertainties,
especially
in
the
California
markets,
also
pressured
the
stock,
such
as
various
local
governments
requiring
flat
renewal
rates
and/or
the
prevention
of
eviction
of
COVID-19
impacted
tenants,
which
led
to
low
rent
collection/bad
debt.
An
overweight
to
EPR
Properties,
a
U.S.
net
lease
stock,
detracted.
Large
exposure
to
experiential
tenants,
especially
movie
theater
operators,
caused
the
stock
to
underperform
due
to
the
social
distancing
requirements
caused
by
the
COVID-19
pandemic.
Our
positioning
in
CyrusOne,
Inc.,
a
U.S.
data
center
stock,
detracted,
mainly
as
a
result
of
poor
trade
timing.
We
added
to
the
sector
prior
to
a
cyclical
rally
as
the
result
of
massive
policy
support
and
optimism
over
economic
reopening
which
caused
defensive
sectors,
like
data
centers,
to
lag.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
-3.42%
7.01%
9.95%
5/1/98
Class
2
Shares
-3.65%
6.74%
9.68%
1/8/07
29
SAM
Balanced
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
as
high
a
level
of
total
return
(consisting
of
reinvested
income
and
capital
appreciation)
as
is
consistent
with
reasonable
risk.
The Portfolio
operates
as
funds
of
funds
and
invests
principally
in
funds
and
exchange-traded
funds
("ETFs")
of
Principal
Funds,
Inc.,
PVC,
and
Principal
Exchange-Traded
Funds
("underlying
funds").
It
generally
invests
between
40%
and
80%
of
its
assets
in
equity
funds,
and
less
than
30%
in
any
one
equity
fund.
The
Portfolio's
tactical
underweight
to
non-U.S.
developed
market
equities,
which
underperformed
their
U.S.
and
emerging
market
counterparts,
was
the
largest
positive
contributor
to
performance
for
the
period.
In
addition,
the
Portfolio's
strategic
underweight
to
large-
cap
value
equities,
which
significantly
underperformed
its
growth
counterparts,
aided
performance
for
the
period.
Lastly,
strong
security
selection
in
real
estate
investment
trusts
positively
contributed
to
performance
for
the
period.
Security
selection
in
large-cap
growth
equities
was
the
largest
detractor
to
performance
for
the
period.
In
addition,
security
selection
in
mid-
cap
growth
equities
hindered
performance
for
the
period.
Lastly,
the
Portfolio's
strategic
underweight
to
large-cap
growth
equities,
which
was
one
of
the
top
performing
asset
classes,
negatively
contributed
to
performance
for
the
period.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
11.28%
9.31%
8.28%
6/3/97
Class
2
Shares
10.96%
9.04%
8.01%
11/6/01
30
SAM
Conservative
Balanced
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
a
high
level
of
total
return
(consisting
of
reinvestment
of
income
and
capital
appreciation),
consistent
with
a
moderate
degree
of
principal
risk.
The Portfolio
operates
as
a
fund
of
funds.
It
generally
invests
between
40%
and
80%
of
its
assets
in
fixed-income
funds,
and
less
than
40%
in
any
one
fixed-income
fund.
The Portfolio
generally
invests
between
20%
and
60%
of
its
assets
in
equity
funds,
and
less
than
30%
in
any
one
equity
fund.
It
generally
invests
less
than
20%
of
its
assets
in
specialty
funds,
and
less
than
20%
in
any
one
specialty
fund.
The
Portfolio's
strategic
underweight
to
large-cap
value
equities,
which
significantly
underperformed
its
growth
counterparts,
was
the
largest
positive
contributor
to
performance
for
the
period.
In
addition,
the
Portfolio's
tactical
underweight
to
non-U.S.
developed
market
equities,
which
underperformed
their
U.S.
and
emerging
market
counterparts,
aided
performance
for
the
period.
Lastly,
strong
security
selection
in
real
estate
investment
trusts
positively
contributed
to
performance
for
the
period.
Security
selection
in
large-cap
growth
equities
was
the
largest
detractor
to
performance
for
the
period.
In
addition,
security
selection
in
mid-
cap
growth
equities
hindered
performance
for
the
period.
Lastly,
the
Portfolio's
strategic
underweight
to
large-cap
growth
equities,
which
was
one
of
the
top
performing
asset
classes,
negatively
contributed
to
performance
for
the
period.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
9.60%
7.76%
6.87%
4/23/98
Class
2
Shares
9.25%
7.47%
6.59%
11/6/01
31
SAM
Conservative
Growth
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
capital
appreciation.
The Portfolio
operates
as
a
fund
of
funds.
It
generally
invests
between
0%
and
40%
of
its
assets
in
fixed-income
funds,
and
less
than
30%
in
any
one
fixed-income
fund.
The Portfolio
generally
invests
between
60%
and
100%
of
its
assets
in
equity
funds,
and
less
than
40%
in
any
one
equity
fund.
It
generally
invests
less
than
20%
of
its
assets
in
specialty
funds,
and
less
than
20%
in
any
one
specialty
fund.
The
Portfolio's
tactical
overweight
to
equities
and
underweight
to
fixed
income
was
the
largest
positive
contributor
to
performance
for
the
period,
as
equities
led
the
market
rally.
In
addition,
the
Portfolio's
strategic
underweight
to
large-cap
value
equities,
which
underperformed
their
growth
counterparts,
aided
performance
for
the
period.
Lastly,
strong
security
selection
in
real
estate
investment
trusts
positively
contributed
to
performance
for
the
period.
Security
selection
in
large-cap
growth
equities
was
the
largest
detractor
to
performance
for
the
period.
In
addition,
security
selection
in
mid-
cap
growth
equities
hindered
performance
for
the
period.
Lastly,
the
Portfolio's
strategic
underweight
to
large-cap
growth
equities,
which
was
one
of
the
top
performing
asset
classes,
negatively
contributed
to
performance
for
the
period.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
12.95%
10.89%
9.56%
6/3/97
Class
2
Shares
12.68%
10.62%
9.29%
11/6/01
32
SAM
Flexible
Income
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
a
high
level
of
total
return
(consisting
of
reinvestment
of
income
with
some
capital
appreciation).
The Portfolio
operates
as
a
fund
of
funds.
It
generally
invests
between
55%
and
95%
of
its
assets
in
fixed-income
funds,
and
less
than
40%
in
any
one
fixed-
income
fund.
The Portfolio
generally
invests
between
5%
and
45%
of
its
assets
in
equity
funds,
and
less
than
30%
in
any
one
equity
fund.
It
generally
invests
less
than
20%
of
its
assets
in
specialty
funds,
and
less
than
20%
in
any
one
specialty
fund.
Strong
security
selection
in
real
estate
investment
trusts
was
the
largest
positive
contributor
to
performance
for
the
period.
In
addition,
the
Portfolio's
strategic
and
tactical
allocation
to
high
yield
bonds,
which
posted
high
single-digit
returns,
aided
performance
for
the
period.
Lastly,
the
Portfolio's
tactical
underweight
to
non-U.S.
developed
market
equities,
which
underperformed
their
U.S.
and
emerging
market
counterparts,
positively
contributed
to
performance
for
the
period.
Security
selection
in
Treasury
Inflation-Protected
Securities
was
the
largest
detractor
to
performance
for
the
period.
In
addition,
security
selection
in
high
yield
bonds
hindered
performance
for
the
period.
Lastly,
the
Portfolio's
strategic
underweight
to
large-cap
growth
equities,
which
was
one
of
the
top
performing
asset
classes,
negatively
contributed
to
performance
for
the
period.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
7.27%
6.68%
5.95%
9/9/97
Class
2
Shares
7.03%
6.42%
5.69%
11/6/01
33
SAM
Strategic
Growth
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
capital
appreciation.
The Portfolio
operates
as
a
fund
of
funds.
It
generally
invests
between
75%
and
100%
of
its
assets
in
equity
funds,
and
less
than
50%
in
any
one
equity
fund.
The Portfolio
invests
less
than
20%
of
its
assets
in
specialty
funds,
and
less
than
20%
in
any
one
specialty
fund.
The
Portfolio's
strategic
underweight
to
large-cap
value
equities,
which
underperformed
their
growth
counterparts,
was
the
largest
positive
contributor
to
performance
for
the
period.
In
addition,
strong
security
selection
in
real
estate
investment
trusts
aided
performance
for
the
period.
Lastly,
the
Portfolio's
tactical
underweight
to
non-U.S.
developed
market
equities,
which
underperformed
their
U.S.
counterparts,
positively
contributed
to
performance
for
the
period.
The
Portfolio's
strategic
underweight
to
large-cap
growth
equities,
which
was
one
of
the
top
performing
asset
classes,
was
the
largest
detractor
to
performance
for
the
period.
In
addition,
security
selection
in
mid-cap
growth
equities
hindered
performance
for
the
period.
Lastly,
security
selection
in
large-cap
growth
equities
negatively
contributed
to
performance
for
the
period.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
15.40%
11.77%
10.41%
6/3/97
Class
2
Shares
15.13%
11.49%
10.13%
11/6/01
34
Short-Term
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
as
high
a
level
of
current
income
as
is
consistent
with
prudent
investment
management
and
stability
of
principal.
The Account
invests
primarily
in
high
quality
short-term
bonds
and
other
fixed-income
securities
that,
at
the
time
of
purchase,
are
rated
BBB-
or
higher
by
S&P
Global
Ratings
("S&P
Global")
or
Baa3
or
higher
by
Moody's
Investors
Service,
Inc.
("Moody's")
or,
if
unrated,
in
the
opinion
of
those
selecting
such
investments,
are
of
comparable
quality.
It
invests
in
foreign
securities.
Issuer
selection
in
energy,
basic
industry,
government
owned
no
guarantee
debt,
and
technology
contributed.
Out-of-index
contributions
to
agency
commercial
mortgage-backed
securities
and
treasuries
detracted.
Underweight
to
banking
detracted.
Overweight
to
government
owned
no
guarantee
debt
detracted.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
3.36%
2.71%
2.34%
1/12/94
35
SmallCap
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2020
What
contributed
to
or
detracted
from
Account
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
Under
normal
circumstances,
the
Account
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
equity
securities
of
companies
with
small
market
capitalizations
at
the
time
of
purchase.
For
this
Account,
companies
with
small
market
capitalizations
are
those
with
market
capitalizations
within
the
range
of
companies
comprising
the
Russell
2000®
Index.
Teladoc,
a
leading
provider
of
telehealth
solutions,
contributed
as
it
reported
better-than-expected
operating
results
and
significant
demand
for
its
services
amid
the
COVID-19
pandemic.
SiTime,
a
provider
of
semiconductors
that
manage
clocks
and
timing
in
electronic
devices,
contributed
amid
increased
quarterly
guidance
partly
related
to
a
new
smartphone
design
win.
Natera,
a
specialty
diagnostics
company,
performed
well
amid
better
than
expected
results
driven
by
improved
reimbursement
for
their
leading
prenatal
test.
Carvana,
an
e-commerce
platform
for
buying
and
selling
used
cars,
reported
better-than-expected
operating
results
and
a
more
favorable
outlook
driven
by
strong
demand
and
favorable
used
car
prices.
Horizon
Therapeutics,
a
specialty
pharmaceutical
company
now
focused
on
developing
therapies
for
rare
and
orphan
diseases,
outperformed
following
better-than-expected
results
from
faster
than
anticipated
uptake
of
its
newly
launched
drug,
Tepezza.
Brandywine
Realty
Trust,
an
equity
REIT
that
derives
most
of
its
operating
income
through
the
ownership
and
management
of
office
properties
located
in
the
mid-Atlantic
region,
detracted
as
the
outlook
for
office
properties
came
into
question
amid
the
COVID-19
pandemic
as
many
companies
shifted
their
employees
to
working
remotely.
Ladder
Capital,
a
commercial
mortgage
REIT
declined
due
to
liquidity
and
credit
concerns
related
to
its
commercial
loan
portfolio
that
arose
amid
the
COVID-19
containment
efforts.
OneSpaWorld,
which
operates
shipboard
spas,
sold
off
sharply
as
cruise
line
partners
cancelled
sailings
in
response
to
the
COVID-19
pandemic.
Pebblebrook
Hotel
Trust,
a
lodging
real
estate
investment
trust
focused
on
upscale
full-service
hotel
and
resort
properties,
detracted
as
hotel
occupancy
rates
were
dramatically
reduced
amid
the
COVID-19
pandemic.
Brink’s,
a
provider
of
secure
logistics
and
security
solutions,
reported
disappointing
earnings
and
withdrew
full
year
guidance
due
to
COVID-19
uncertainties
but
has
also
been
impacted
by
the
shift
toward
paperless
transactions.
Value
of
a
$10,000
Investment*
December
31,
2010
-
December
31,
2020
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date***
Class
1
Shares
22.20%
12.95%
12.40%
5/1/98
–
Class
2
Shares
21.87%
12.66%
12.12%
2/17/15
5/1/98
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Account’s
Class
1
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
36
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Blue
Chip
Account
Bond
Market
Index
Account
Core
Plus
Bond
Account
Investment
in
securities--at
cost
..........................................................
$
4,997
$
2,531,768
$
256,298
Investment
in
affiliated
securities--at
cost
................................................
$
6
$
233,150
$
10,172
Assets
Investment
in
securities--at
value
..........................................................
$
5,167
$
2,703,541
(a)
$
270,065
(a)
Investment
in
affiliated
securities--at
value
.................................................
6
233,150
10,172
Cash
.........................................................................................
–
356
–
Deposits
with
counterparty
..................................................................
–
–
9
Receivables:
Dividends
and
interest
.................................................................
1
12,926
1,636
Expense
reimbursement
from
Manager
...............................................
3
–
–
Fund
shares
sold
.......................................................................
–
224
1,994
Investment
securities
sold
.............................................................
14
18,345
10
Other
assets
..................................................................................
–
–
6
Prepaid
expenses
............................................................................
–
–
1
Total
Assets
5,191
2,968,542
283,893
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
2
320
99
Accrued
distribution
fees
....................................................................
1
–
–
Accrued
directors'
expenses
.................................................................
–
10
–
Accrued
professional
fees
...................................................................
3
–
–
Accrued
other
expenses
.....................................................................
–
20
–
Cash
overdraft
...............................................................................
–
–
14
Deposits
from
counterparty
.................................................................
–
353
–
Payables:
Fund
shares
redeemed
.................................................................
–
7,432
171
Investment
securities
purchased
......................................................
15
220,242
27,240
Variation
margin
on
futures
...........................................................
–
–
1
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
4,906
412
Total
Liabilities
21
233,283
27,937
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
5,170
$
2,735,259
$
255,956
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
5,000
$
2,500,890
$
230,894
Total
distributable
earnings
(accumulated
loss)
.............................................
170
234,369
25,062
Total
Net
Assets
$
5,170
$
2,735,259
$
255,956
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
300,000
400,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
N/A
$
2,735,259
$
255,956
Shares
issued
and
outstanding
........................................................
244,070
21,059
Net
Asset
Value
per
share
.............................................................
$
11.21
$
12.15
Class
3
:
Net
Assets
..........................................................................
$
5,170
N/A
N/A
Shares
issued
and
outstanding
........................................................
500
Net
Asset
Value
per
share
.............................................................
$
10.34
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
37
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Diversified
Balanced
Account
Diversified
Balanced
Managed
Volatility
Account
Diversified
Balanced
Volatility
Control
Account
Investment
in
securities--at
cost
..........................................................
$
–
$
–
$
35,628
Investment
in
affiliated
securities--at
cost
................................................
$
715,498
$
150,583
$
134,003
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
–
$
36,980
Investment
in
affiliated
securities--at
value
.................................................
1,020,535
185,202
147,597
Receivables:
Fund
shares
sold
.......................................................................
6
176
–
Investment
securities
sold
.............................................................
2,447
–
76
Total
Assets
1,022,988
185,378
184,653
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
43
8
18
Accrued
distribution
fees
....................................................................
207
38
38
Accrued
directors'
expenses
.................................................................
3
1
1
Accrued
other
expenses
.....................................................................
6
5
6
Payables:
Fund
shares
redeemed
.................................................................
2,453
79
95
Investment
securities
purchased
......................................................
–
98
16
Total
Liabilities
2,712
229
174
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
1,020,276
$
185,149
$
184,479
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
643,720
$
143,388
$
163,737
Total
distributable
earnings
(accumulated
loss)
.............................................
376,556
41,761
20,742
Total
Net
Assets
$
1,020,276
$
185,149
$
184,479
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
650,000
400,000
400,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
40,515
N/A
N/A
Shares
issued
and
outstanding
........................................................
2,305
Net
Asset
Value
per
share
.............................................................
$
17.58
Class
2
:
Net
Assets
..........................................................................
$
979,751
$
185,139
$
184,469
Shares
issued
and
outstanding
........................................................
55,634
13,561
14,881
Net
Asset
Value
per
share
.............................................................
$
17.61
$
13.65
$
12.40
Class
3
:
Net
Assets
..........................................................................
$
10
$
10
$
10
Shares
issued
and
outstanding
........................................................
1
1
1
Net
Asset
Value
per
share
.............................................................
$
17.58
$
13.65
$
12.40
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
38
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Diversified
Growth
Account
Diversified
Growth
Managed
Volatility
Account
Diversified
Growth
Volatility
Control
Account
Investment
in
securities--at
cost
..........................................................
$
–
$
–
$
195,197
Investment
in
affiliated
securities--at
cost
................................................
$
2,633,458
$
296,872
$
708,662
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
–
$
200,049
Investment
in
affiliated
securities--at
value
.................................................
3,854,088
378,350
796,705
Receivables:
Fund
shares
sold
.......................................................................
–
119
–
Investment
securities
sold
.............................................................
7,476
1,235
2,955
Total
Assets
3,861,564
379,704
999,709
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
162
16
100
Accrued
distribution
fees
....................................................................
811
80
208
Accrued
directors'
expenses
.................................................................
17
1
5
Accrued
other
expenses
.....................................................................
6
5
6
Payables:
Fund
shares
redeemed
.................................................................
7,476
1,354
3,694
Investment
securities
purchased
......................................................
–
–
111
Total
Liabilities
8,472
1,456
4,124
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
3,853,092
$
378,248
$
995,585
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
2,383,057
$
281,623
$
873,701
Total
distributable
earnings
(accumulated
loss)
.............................................
1,470,035
96,625
121,884
Total
Net
Assets
$
3,853,092
$
378,248
$
995,585
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
500,000
400,000
400,000
Net
Asset
Value
Per
Share:
Class
2
:
Net
Assets
..........................................................................
$
3,853,082
$
378,238
$
995,575
Shares
issued
and
outstanding
........................................................
191,207
26,390
78,505
Net
Asset
Value
per
share
.............................................................
$
20.15
$
14.33
$
12.68
Class
3
:
Net
Assets
..........................................................................
$
10
$
10
$
10
Shares
issued
and
outstanding
........................................................
1
1
1
Net
Asset
Value
per
share
.............................................................
$
20.15
$
14.33
$
12.68
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
39
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Diversified
Income
Account
Diversified
International
Account
Equity
Income
Account
Investment
in
securities--at
cost
..........................................................
$
–
$
206,904
$
427,973
Investment
in
affiliated
securities--at
cost
................................................
$
266,122
$
1,712
$
15,730
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
292,426
(a)
$
779,536
(a)
Investment
in
affiliated
securities--at
value
.................................................
323,623
1,712
15,730
Cash
.........................................................................................
–
–
31
Receivables:
Dividends
and
interest
.................................................................
–
697
1,571
Fund
shares
sold
.......................................................................
667
17
136
Investment
securities
sold
.............................................................
2,734
–
–
Total
Assets
327,024
294,852
797,004
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
13
204
306
Accrued
distribution
fees
....................................................................
68
–
7
Accrued
directors'
expenses
.................................................................
1
2
5
Accrued
foreign
tax
.........................................................................
–
79
–
Accrued
other
expenses
.....................................................................
6
44
23
Payables:
Fund
shares
redeemed
.................................................................
3,401
577
3,666
Investment
securities
purchased
......................................................
–
–
366
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
2,220
2,788
Total
Liabilities
3,489
3,126
7,161
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
323,535
$
291,726
$
789,843
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
252,676
$
204,129
$
418,128
Total
distributable
earnings
(accumulated
loss)
.............................................
70,859
87,597
371,715
Total
Net
Assets
$
323,535
$
291,726
$
789,843
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
250,000
300,000
400,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
N/A
$
291,726
$
755,882
Shares
issued
and
outstanding
........................................................
16,414
26,482
Net
Asset
Value
per
share
.............................................................
$
17.77
$
28.54
Class
2
:
Net
Assets
..........................................................................
$
323,525
N/A
$
33,951
Shares
issued
and
outstanding
........................................................
21,826
1,201
Net
Asset
Value
per
share
.............................................................
$
14.82
$
28.26
Class
3
:
Net
Assets
..........................................................................
$
10
N/A
$
10
Shares
issued
and
outstanding
........................................................
1
–
(b)
Net
Asset
Value
per
share
.............................................................
$
14.82
$
28.53
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
(b)
Reflects
an
amount
less
than
500
shares
issued
and
outstanding.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
40
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Government
&
High
Quality
Bond
Account
International
Emerging
Markets
Account
LargeCap
Growth
Account
I
Investment
in
securities--at
cost
..........................................................
$
260,560
$
67,272
$
356,499
Investment
in
affiliated
securities--at
cost
................................................
$
17,351
$
805
$
6,012
Assets
Investment
in
securities--at
value
..........................................................
$
264,141
$
93,357
$
606,896
(a)
Investment
in
affiliated
securities--at
value
.................................................
17,351
805
6,012
Cash
.........................................................................................
1
18
–
Deposits
with
counterparty
..................................................................
179
–
132
Receivables:
Dividends
and
interest
.................................................................
607
180
88
Expense
reimbursement
from
Manager
...............................................
–
–
4
Fund
shares
sold
.......................................................................
954
64
100
Investment
securities
sold
.............................................................
–
–
171
Variation
margin
on
futures
...........................................................
–
–
15
Total
Assets
283,233
94,424
613,418
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
97
85
348
Accrued
directors'
expenses
.................................................................
1
–
1
Accrued
foreign
tax
.........................................................................
–
198
–
Accrued
other
expenses
.....................................................................
7
23
30
Cash
overdraft
...............................................................................
–
–
2
Payables:
Expense
reimbursement
to
Manager
..................................................
–
3
–
Fund
shares
redeemed
.................................................................
72
276
242
Investment
securities
purchased
......................................................
55,046
–
148
Variation
margin
on
futures
...........................................................
14
–
–
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
–
290
Total
Liabilities
55,237
585
1,061
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
227,996
$
93,839
$
612,357
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
229,158
$
66,028
$
285,156
Total
distributable
earnings
(accumulated
loss)
.............................................
(1,162)
27,811
327,201
Total
Net
Assets
$
227,996
$
93,839
$
612,357
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
227,996
$
93,839
$
612,357
Shares
issued
and
outstanding
........................................................
23,200
4,707
12,637
Net
Asset
Value
per
share
.............................................................
$
9.83
$
19.94
$
48.46
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
41
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
LargeCap
S&P
500
Index
Account
LargeCap
S&P
500
Managed
Volatility
Index
Account
MidCap
Account
Investment
in
securities--at
cost
..........................................................
$
1,580,245
$
130,888
$
354,458
Investment
in
affiliated
securities--at
cost
................................................
$
49,065
$
15,820
$
1,607
Assets
Investment
in
securities--at
value
..........................................................
$
2,875,842
(a)
$
220,104
(a)
$
629,664
Investment
in
affiliated
securities--at
value
.................................................
49,065
15,820
1,607
Cash
.........................................................................................
21
–
232
Receivables:
Dividends
and
interest
.................................................................
2,150
164
169
Fund
shares
sold
.......................................................................
351
34
36
Investment
securities
sold
.............................................................
–
–
2,024
Variation
margin
on
futures
...........................................................
323
31
–
Total
Assets
2,927,752
236,153
633,732
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
617
89
279
Accrued
distribution
fees
....................................................................
6
–
5
Accrued
directors'
expenses
.................................................................
13
1
4
Accrued
other
expenses
.....................................................................
15
10
7
Payables:
Fund
shares
redeemed
.................................................................
6,064
556
1,228
Investment
securities
purchased
......................................................
–
–
2,472
Options
and
swaptions
contracts
written
(premiums
received
$
0
,
$
873
and
$
0
)
.....
–
316
–
Collateral
obligation
on
securities
loaned,
at
value
.........................................
394
69
–
Total
Liabilities
7,109
1,041
3,995
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
2,920,643
$
235,112
$
629,737
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
1,346,444
$
138,661
$
309,495
Total
distributable
earnings
(accumulated
loss)
.............................................
1,574,199
96,451
320,242
Total
Net
Assets
$
2,920,643
$
235,112
$
629,737
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
300,000
100,000
105,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
2,892,842
$
235,112
$
604,094
Shares
issued
and
outstanding
........................................................
131,873
13,913
9,484
Net
Asset
Value
per
share
.............................................................
$
21.94
$
16.90
$
63.69
Class
2
:
Net
Assets
..........................................................................
$
27,801
N/A
$
25,643
Shares
issued
and
outstanding
........................................................
1,284
407
Net
Asset
Value
per
share
.............................................................
$
21.65
$
63.08
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
42
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
Capital
Appreciation
Account
Principal
LifeTime
2010
Account
Principal
LifeTime
2020
Account
Investment
in
securities--at
cost
..........................................................
$
75,859
$
–
$
–
Investment
in
affiliated
securities--at
cost
................................................
$
1,887
$
32,374
$
168,335
Foreign
currency--at
cost
..................................................................
$
7
$
–
$
–
Assets
Investment
in
securities--at
value
..........................................................
$
164,293
$
–
$
–
Investment
in
affiliated
securities--at
value
.................................................
1,887
35,830
194,173
Foreign
currency--at
value
..................................................................
7
–
–
Receivables:
Dividends
and
interest
.................................................................
156
33
139
Fund
shares
sold
.......................................................................
10
9
23
Investment
securities
sold
.............................................................
9
15
30
Total
Assets
166,362
35,887
194,365
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
87
–
–
Accrued
distribution
fees
....................................................................
4
–
–
Accrued
directors'
expenses
.................................................................
1
–
1
Accrued
professional
fees
...................................................................
–
6
–
Accrued
other
expenses
.....................................................................
7
–
5
Cash
overdraft
...............................................................................
2
–
–
Payables:
Fund
shares
redeemed
.................................................................
360
24
53
Investment
securities
purchased
......................................................
187
33
139
Total
Liabilities
648
63
198
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
165,714
$
35,824
$
194,167
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
69,925
$
29,811
$
154,323
Total
distributable
earnings
(accumulated
loss)
.............................................
95,789
6,013
39,844
Total
Net
Assets
$
165,714
$
35,824
$
194,167
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
100,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
147,026
$
35,824
$
194,167
Shares
issued
and
outstanding
........................................................
4,286
2,636
12,957
Net
Asset
Value
per
share
.............................................................
$
34.30
$
13.59
$
14.99
Class
2
:
Net
Assets
..........................................................................
$
18,688
N/A
N/A
Shares
issued
and
outstanding
........................................................
552
Net
Asset
Value
per
share
.............................................................
$
33.81
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
43
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
LifeTime
2030
Account
Principal
LifeTime
2040
Account
Principal
LifeTime
2050
Account
Investment
in
affiliated
securities--at
cost
................................................
$
192,845
$
88,590
$
40,188
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
228,297
$
107,143
$
49,785
Receivables:
Dividends
and
interest
.................................................................
118
32
7
Fund
shares
sold
.......................................................................
97
25
13
Investment
securities
sold
.............................................................
240
62
82
Total
Assets
228,752
107,262
49,887
Liabilities
Accrued
directors'
expenses
.................................................................
1
–
–
Accrued
professional
fees
...................................................................
–
–
6
Accrued
other
expenses
.....................................................................
5
6
–
Payables:
Fund
shares
redeemed
.................................................................
337
87
95
Investment
securities
purchased
......................................................
118
32
7
Total
Liabilities
461
125
108
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
228,291
$
107,137
$
49,779
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
181,064
$
83,018
$
37,542
Total
distributable
earnings
(accumulated
loss)
.............................................
47,227
24,119
12,237
Total
Net
Assets
$
228,291
$
107,137
$
49,779
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
228,291
$
107,137
$
49,779
Shares
issued
and
outstanding
........................................................
15,736
5,924
2,850
Net
Asset
Value
per
share
.............................................................
$
14.51
$
18.09
$
17.47
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
44
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
LifeTime
2060
Account
Principal
LifeTime
Strategic
Income
Account
Real
Estate
Securities
Account
Investment
in
securities--at
cost
..........................................................
$
–
$
–
$
111,134
Investment
in
affiliated
securities--at
cost
................................................
$
9,631
$
28,419
$
59
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
–
$
136,186
Investment
in
affiliated
securities--at
value
.................................................
11,474
31,030
59
Receivables:
Dividends
and
interest
.................................................................
1
33
545
Fund
shares
sold
.......................................................................
14
9
26
Investment
securities
sold
.............................................................
–
–
42
Total
Assets
11,489
31,072
136,858
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
–
–
92
Accrued
distribution
fees
....................................................................
–
–
1
Accrued
directors'
expenses
.................................................................
–
–
1
Accrued
professional
fees
...................................................................
6
5
–
Accrued
other
expenses
.....................................................................
–
–
6
Payables:
Fund
shares
redeemed
.................................................................
–
7
176
Investment
securities
purchased
......................................................
15
35
–
Total
Liabilities
21
47
276
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
11,468
$
31,025
$
136,582
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
9,164
$
26,591
$
99,257
Total
distributable
earnings
(accumulated
loss)
.............................................
2,304
4,434
37,325
Total
Net
Assets
$
11,468
$
31,025
$
136,582
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
100,000
100,000
300,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
11,468
$
31,025
$
129,617
Shares
issued
and
outstanding
........................................................
696
2,417
6,782
Net
Asset
Value
per
share
.............................................................
$
16.49
$
12.84
$
19.11
Class
2
:
Net
Assets
..........................................................................
N/A
N/A
$
6,965
Shares
issued
and
outstanding
........................................................
364
Net
Asset
Value
per
share
.............................................................
$
19.16
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
45
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SAM
Balanced
Portfolio
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
Investment
in
affiliated
securities--at
cost
................................................
$
524,998
$
160,216
$
283,874
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
702,547
$
194,529
$
384,302
Receivables:
Dividends
and
interest
.................................................................
909
240
494
Fund
shares
sold
.......................................................................
81
61
272
Investment
securities
sold
.............................................................
635
354
–
Total
Assets
704,172
195,184
385,068
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
134
37
73
Accrued
distribution
fees
....................................................................
28
6
33
Accrued
directors'
expenses
.................................................................
2
1
1
Accrued
other
expenses
.....................................................................
6
5
6
Payables:
Fund
shares
redeemed
.................................................................
716
415
236
Investment
securities
purchased
......................................................
299
131
104
Total
Liabilities
1,185
595
453
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
702,987
$
194,589
$
384,615
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
501,175
$
155,586
$
272,652
Total
distributable
earnings
(accumulated
loss)
.............................................
201,812
39,003
111,963
Total
Net
Assets
$
702,987
$
194,589
$
384,615
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
300,000
200,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
568,806
$
164,411
$
226,009
Shares
issued
and
outstanding
........................................................
34,453
12,848
10,390
Net
Asset
Value
per
share
.............................................................
$
16.51
$
12.80
$
21.75
Class
2
:
Net
Assets
..........................................................................
$
134,181
$
30,178
$
158,606
Shares
issued
and
outstanding
........................................................
8,238
2,393
7,410
Net
Asset
Value
per
share
.............................................................
$
16.29
$
12.61
$
21.40
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
46
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SAM
Flexible
Income
Portfolio
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
Investment
in
securities--at
cost
..........................................................
$
–
$
–
$
149,793
Investment
in
affiliated
securities--at
cost
................................................
$
163,176
$
269,414
$
2,196
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
–
$
152,647
(a)
Investment
in
affiliated
securities--at
value
.................................................
184,196
355,463
2,196
Deposits
with
counterparty
..................................................................
–
–
2
Receivables:
Dividends
and
interest
.................................................................
207
256
555
Expense
reimbursement
from
Manager
...............................................
–
–
1
Fund
shares
sold
.......................................................................
88
213
2,887
Total
Assets
184,491
355,932
158,288
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
35
67
66
Accrued
distribution
fees
....................................................................
7
35
–
Accrued
directors'
expenses
.................................................................
1
1
1
Accrued
other
expenses
.....................................................................
6
6
8
Payables:
Fund
shares
redeemed
.................................................................
20
115
834
Investment
securities
purchased
......................................................
160
98
–
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
–
360
Total
Liabilities
229
322
1,269
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
184,262
$
355,610
$
157,019
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
157,553
$
259,338
$
151,250
Total
distributable
earnings
(accumulated
loss)
.............................................
26,709
96,272
5,769
Total
Net
Assets
$
184,262
$
355,610
$
157,019
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
400,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
149,396
$
187,904
$
157,019
Shares
issued
and
outstanding
........................................................
11,667
7,774
60,344
Net
Asset
Value
per
share
.............................................................
$
12.81
$
24.17
$
2.60
Class
2
:
Net
Assets
..........................................................................
$
34,866
$
167,706
N/A
Shares
issued
and
outstanding
........................................................
2,755
7,044
Net
Asset
Value
per
share
.............................................................
$
12.66
$
23.80
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
47
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SmallCap
Account
Investment
in
securities--at
cost
......................................................................................................................
$
154,874
Investment
in
affiliated
securities--at
cost
............................................................................................................
$
1,177
Assets
Investment
in
securities--at
value
......................................................................................................................
$
208,603
(a)
Investment
in
affiliated
securities--at
value
.............................................................................................................
1,177
Cash
.....................................................................................................................................................
2
Receivables:
Dividends
and
interest
.............................................................................................................................
198
Fund
shares
sold
...................................................................................................................................
134
Investment
securities
sold
.........................................................................................................................
199
Unrealized
gain
on
unfunded
commitments
......................................................................................................
111
Total
Assets
210,424
Liabilities
Accrued
management
and
investment
advisory
fees
....................................................................................................
142
Accrued
distribution
fees
................................................................................................................................
2
Accrued
directors'
expenses
.............................................................................................................................
1
Accrued
other
expenses
.................................................................................................................................
6
Payables:
Fund
shares
redeemed
.............................................................................................................................
1,516
Collateral
obligation
on
securities
loaned,
at
value
.....................................................................................................
4,495
Total
Liabilities
6,162
Net
Assets
Applicable
to
Outstanding
Shares
........................................................................................................
$
204,262
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...........................................................................................................
$
143,544
Total
distributable
earnings
(accumulated
loss)
.........................................................................................................
60,718
Total
Net
Assets
$
204,262
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
........................................................................................................................................
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
......................................................................................................................................
$
195,848
Shares
issued
and
outstanding
....................................................................................................................
11,350
Net
Asset
Value
per
share
.........................................................................................................................
$
17.26
Class
2
:
Net
Assets
......................................................................................................................................
$
8,414
Shares
issued
and
outstanding
....................................................................................................................
490
Net
Asset
Value
per
share
.........................................................................................................................
$
17.17
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
48
See
accompanying
notes.
Amounts
in
thousands
Blue
Chip
Account
(a)
Bond
Market
Index
Account
Core
Plus
Bond
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
...........................................................
$
–
$
250
$
36
Dividends
......................................................................................
1
753
213
Interest
.........................................................................................
–
54,437
5,867
Securities
lending
-
net
........................................................................
–
36
7
Total
Income
1
55,476
6,123
Expenses:
Management
and
investment
advisory
fees
...................................................
2
3,561
1,173
Distribution
fees
-
Class
3
.....................................................................
1
N/A
N/A
Administration
service
fees
-
Class
3
.........................................................
–
N/A
N/A
Chief
compliance
officer
expenses
............................................................
–
2
–
Custodian
fees
.................................................................................
–
43
21
Directors'
expenses
............................................................................
–
53
8
Professional fees
..............................................................................
3
6
3
Other
expenses
................................................................................
–
3
–
Total
Gross
Expenses
6
3,668
1,205
Less:
Reimbursement
from
Manager
-
Class
3
...............................................
3
N/A
N/A
Total
Net
Expenses
3
3,668
1,205
Net
Investment
Income
(Loss)
(2
)
51,808
4,918
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
swap
agreements
Net
realized
gain
(loss)
from:
Investment
transactions
.......................................................................
2
34,032
8,350
Futures
contracts
..............................................................................
–
–
561
Swap
agreements
..............................................................................
–
–
1,807
Change
in
unrealized
appreciation/depreciation
of:
Investments
....................................................................................
170
87,025
7,681
Futures
contracts
..............................................................................
–
–
63
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
swap
agreements
172
121,057
18,462
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
170
$
172,865
$
23,380
(a)
Period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
49
See
accompanying
notes.
Amounts
in
thousands
Diversified
Balanced
Account
(a)
Diversified
Balanced
Managed
Volatility
Account
(a)
Diversified
Balanced
Volatility
Control
Account
(a)
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
22,078
$
3,707
$
3,166
Dividends
..................................................................................
–
–
208
Total
Income
22,078
3,707
3,374
Expenses:
Management
and
investment
advisory
fees
...............................................
490
86
192
Distribution
fees
-
Class
2
.................................................................
2,353
432
400
Distribution
fees
-
Class
3
.................................................................
–
–
–
Administration
service
fees
-
Class
3
.....................................................
–
–
–
Chief
compliance
officer
expenses
........................................................
1
–
–
Custodian
fees
.............................................................................
–
–
1
Directors'
expenses
........................................................................
22
6
6
Professional fees
..........................................................................
4
4
4
Other
expenses
............................................................................
1
–
–
Total
Expenses
2,871
528
603
Net
Investment
Income
(Loss)
19,207
3,179
2,771
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
6
–
2,961
Investment
transactions
in
affiliated
securities
............................................
36,473
2,162
73
Futures
contracts
..........................................................................
–
–
(
1,774
)
Capital
gain
distribution
received
from
affiliated
securities
..............................
23,092
1,835
1,961
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
5
–
(
869
)
Investments
in
affiliated
securities
........................................................
37,366
12,698
9,504
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
96,942
16,695
11,856
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
116,149
$
19,874
$
14,627
(a)
Period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020
for
Class
3
shares.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
50
See
accompanying
notes.
Amounts
in
thousands
Diversified
Growth
Account
(a)
Diversified
Growth
Managed
Volatility
Account
(a)
Diversified
Growth
Volatility
Control
Account
(a)
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
79,197
$
7,118
$
16,091
Dividends
..................................................................................
–
–
847
Interest
.....................................................................................
–
–
1
Total
Income
79,197
7,118
16,939
Expenses:
Management
and
investment
advisory
fees
...............................................
1,804
174
1,012
Distribution
fees
-
Class
2
.................................................................
9,019
869
2,108
Distribution
fees
-
Class
3
.................................................................
–
–
–
Administration
service
fees
-
Class
3
.....................................................
–
–
–
Chief
compliance
officer
expenses
........................................................
3
–
1
Custodian
fees
.............................................................................
–
–
1
Directors'
expenses
........................................................................
77
9
20
Professional fees
..........................................................................
4
4
7
Other
expenses
............................................................................
3
–
2
Total
Expenses
10,910
1,056
3,151
Net
Investment
Income
(Loss)
68,287
6,062
13,788
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
–
15,069
Investment
transactions
in
affiliated
securities
............................................
91,147
4,347
408
Futures
contracts
..........................................................................
–
–
(
16,352
)
Capital
gain
distribution
received
from
affiliated
securities
..............................
110,638
4,792
16,355
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
–
(
6,577
)
Investments
in
affiliated
securities
........................................................
201,145
29,119
60,574
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
402,930
38,258
69,477
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
471,217
$
44,320
$
83,265
(a)
Period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020
for
Class
3
shares.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
51
See
accompanying
notes.
Amounts
in
thousands
Diversified
Income
Account
(a)
Diversified
International
Account
Equity
Income
Account
(a)
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
6,976
$
8
$
58
Dividends
..................................................................................
–
5,682
18,880
Withholding
tax
...........................................................................
–
(523)
(494)
Interest
.....................................................................................
–
–
1
Securities
lending
-
net
....................................................................
–
15
36
Total
Income
6,976
5,182
18,481
Expenses:
Management
and
investment
advisory
fees
...............................................
145
2,088
3,287
Distribution
fees
-
Class
3
.................................................................
–
N/A
–
Distribution
fees
-
Class
2
.................................................................
726
N/A
71
Administration
service
fees
-
Class
3
.....................................................
–
N/A
–
Chief
compliance
officer
expenses
........................................................
–
–
1
Custodian
fees
.............................................................................
–
133
12
Directors'
expenses
........................................................................
8
8
17
Professional fees
..........................................................................
4
27
4
Other
expenses
............................................................................
–
2
1
Total
Expenses
883
2,258
3,393
Net
Investment
Income
(Loss)
6,093
2,924
15,088
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
foreign
currencies
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
2,551
3,936
Investment
transactions
in
affiliated
securities
............................................
2,337
–
–
Foreign
currency
transactions
.............................................................
–
(196)
–
Capital
gain
distribution
received
from
affiliated
securities
..............................
5,040
–
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
(net
of
foreign
taxes
of
$0,
$79
and
$0,
respectively)
.......................
–
35,037
28,636
Investments
in
affiliated
securities
........................................................
18,607
–
–
Translation
of
assets
and
liabilities
in
foreign
currencies
.................................
–
28
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
foreign
currencies
25,984
37,420
32,572
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
32,077
$
40,344
$
47,660
(a)
Period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020
for
Class
3
shares.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
52
See
accompanying
notes.
Amounts
in
thousands
Government
&
High
Quality
Bond
Account
International
Emerging
Markets
Account
LargeCap
Growth
Account
I
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
29
$
2
$
28
Dividends
..................................................................................
–
1,734
2,930
Withholding
tax
...........................................................................
–
(
185
)
(
14
)
Interest
.....................................................................................
4,114
–
–
Securities
lending
-
net
....................................................................
3
–
13
Total
Income
4,146
1,551
2,957
Expenses:
Management
and
investment
advisory
fees
...............................................
1,199
929
3,740
Custodian
fees
.............................................................................
6
64
26
Directors'
expenses
........................................................................
7
4
13
Professional fees
..........................................................................
6
24
2
Shareholder
meeting
expense
............................................................
–
–
26
Other
expenses
............................................................................
–
4
2
Total
Gross
Expenses
1,218
1,025
3,809
Less:
Reimbursement
from
Manager
.....................................................
–
39
86
Less:
Reimbursement
from
Manager
-
Class
1
...........................................
–
10
–
Total
Net
Expenses
1,218
976
3,723
Net
Investment
Income
(Loss)
2,928
575
(
766
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
2,342
1,977
88,542
Investment
transactions
in
affiliated
securities
............................................
–
–
60
Foreign
currency
transactions
.............................................................
–
(
176
)
–
Futures
contracts
..........................................................................
(
792
)
–
1,068
Change
in
unrealized
appreciation/depreciation
of:
Investments
(net
of
foreign
taxes
of
$
0
,
$
198
and
$
0
,
respectively)
......................
2,474
12,319
81,833
Investments
in
affiliated
securities
........................................................
–
–
(
73
)
Futures
contracts
..........................................................................
(
167
)
–
1
Translation
of
assets
and
liabilities
in
foreign
currencies
.................................
–
(
3
)
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
3,857
14,117
171,431
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
6,785
$
14,692
$
170,665
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
53
See
accompanying
notes.
Amounts
in
thousands
LargeCap
S&P
500
Index
Account
LargeCap
S&P
500
Managed
Volatility
Index
Account
MidCap
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
119
$
43
$
3
Dividends
..................................................................................
48,818
3,807
3,919
Withholding
tax
...........................................................................
–
–
(
123
)
Interest
.....................................................................................
1
–
–
Securities
lending
-
net
....................................................................
34
2
24
Total
Income
48,972
3,852
3,823
Expenses:
Management
and
investment
advisory
fees
...............................................
6,611
976
3,035
Distribution
fees
-
Class
2
.................................................................
49
N/A
51
Chief
compliance
officer
expenses
........................................................
2
–
1
Custodian
fees
.............................................................................
15
14
4
Directors'
expenses
........................................................................
56
7
14
Professional fees
..........................................................................
4
4
5
Other
expenses
............................................................................
32
2
1
Total
Expenses
6,769
1,003
3,111
Net
Investment
Income
(Loss)
42,203
2,849
712
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
options
and
swaptions
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
288,682
20,997
52,550
Futures
contracts
..........................................................................
16,461
1,755
–
Options
and
swaptions
....................................................................
–
(
8,661
)
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
150,911
20,227
44,805
Futures
contracts
..........................................................................
387
42
–
Options
and
swaptions
....................................................................
–
441
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
options
and
swaptions
456,441
34,801
97,355
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
498,644
$
37,650
$
98,067
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
54
See
accompanying
notes.
Amounts
in
thousands
Principal
Capital
Appreciation
Account
Principal
LifeTime
2010
Account
Principal
LifeTime
2020
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
11
$
634
$
3,236
Dividends
..................................................................................
2,470
–
–
Withholding
tax
...........................................................................
(
11
)
–
–
Securities
lending
-
net
....................................................................
1
–
–
Total
Income
2,471
634
3,236
Expenses:
Management
and
investment
advisory
fees
...............................................
928
–
–
Distribution
fees
-
Class
2
.................................................................
35
N/A
N/A
Custodian
fees
.............................................................................
4
–
–
Directors'
expenses
........................................................................
5
3
6
Professional fees
..........................................................................
4
4
4
Total
Expenses
976
7
10
Net
Investment
Income
(Loss)
1,495
627
3,226
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
7,923
–
–
Investment
transactions
in
affiliated
securities
............................................
–
1,779
9,556
Capital
gain
distribution
received
from
affiliated
securities
..............................
–
185
1,411
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
16,879
–
–
Investments
in
affiliated
securities
........................................................
–
993
5,602
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
24,802
2,957
16,569
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
26,297
$
3,584
$
19,795
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
55
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2030
Account
Principal
LifeTime
2040
Account
Principal
LifeTime
2050
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
3,396
$
1,608
$
716
Total
Income
3,396
1,608
716
Expenses:
Directors'
expenses
........................................................................
6
4
3
Professional fees
..........................................................................
4
4
4
Total
Expenses
10
8
7
Net
Investment
Income
(Loss)
3,386
1,600
709
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
in
affiliated
securities
............................................
6,370
2,575
1,228
Capital
gain
distribution
received
from
affiliated
securities
..............................
2,249
1,459
748
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
16,183
9,163
4,442
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
24,802
13,197
6,418
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
28,188
$
14,797
$
7,127
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
56
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2060
Account
Principal
LifeTime
Strategic
Income
Account
Real
Estate
Securities
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
161
$
583
$
3
Dividends
..................................................................................
–
–
3,737
Total
Income
161
583
3,740
Expenses:
Management
and
investment
advisory
fees
...............................................
–
–
1,121
Distribution
fees
-
Class
2
.................................................................
N/A
N/A
16
Custodian
fees
.............................................................................
–
–
3
Directors'
expenses
........................................................................
3
3
5
Professional fees
..........................................................................
4
4
4
Total
Expenses
7
7
1,149
Net
Investment
Income
(Loss)
154
576
2,591
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
–
9,588
Investment
transactions
in
affiliated
securities
............................................
137
1,130
–
Capital
gain
distribution
received
from
affiliated
securities
..............................
179
133
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
–
(
19,045
)
Investments
in
affiliated
securities
........................................................
1,132
900
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
1,448
2,163
(
9,457
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
1,602
$
2,739
$
(
6,866
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
57
See
accompanying
notes.
Amounts
in
thousands
SAM
Balanced
Portfolio
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
12,938
$
4,139
$
5,858
Total
Income
12,938
4,139
5,858
Expenses:
Management
and
investment
advisory
fees
...............................................
1,503
419
783
Distribution
fees
-
Class
2
.................................................................
299
67
346
Chief
compliance
officer
expenses
........................................................
1
–
–
Directors'
expenses
........................................................................
16
6
9
Professional fees
..........................................................................
4
4
4
Other
expenses
............................................................................
1
–
–
Total
Expenses
1,824
496
1,142
Net
Investment
Income
(Loss)
11,114
3,643
4,716
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
2
–
–
Investment
transactions
in
affiliated
securities
............................................
9,525
1,311
3,879
Capital
gain
distribution
received
from
affiliated
securities
..............................
5,761
1,117
4,078
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
42,753
10,081
30,555
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
58,041
12,509
38,512
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
69,155
$
16,152
$
43,228
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
58
See
accompanying
notes.
Amounts
in
thousands
SAM
Flexible
Income
Portfolio
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
4,894
$
4,602
$
10
Interest
.....................................................................................
–
–
2,952
Securities
lending
-
net
....................................................................
–
–
2
Total
Income
4,894
4,602
2,964
Expenses:
Management
and
investment
advisory
fees
...............................................
410
696
701
Distribution
fees
-
Class
2
.................................................................
78
353
N/A
Custodian
fees
.............................................................................
–
–
11
Directors'
expenses
........................................................................
6
8
5
Professional fees
..........................................................................
4
4
6
Total
Gross
Expenses
498
1,061
723
Less:
Reimbursement
from
Manager
-
Class
1
...........................................
–
–
14
Total
Net
Expenses
498
1,061
709
Net
Investment
Income
(Loss)
4,396
3,541
2,255
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
–
1,329
Investment
transactions
in
affiliated
securities
............................................
2,071
2,833
–
Capital
gain
distribution
received
from
affiliated
securities
..............................
906
5,378
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
–
1,248
Investments
in
affiliated
securities
........................................................
4,312
35,189
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
7,289
43,400
2,577
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
11,685
$
46,941
$
4,832
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2020
59
See
accompanying
notes.
Amounts
in
thousands
SmallCap
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
................................................................................................................
$
9
Dividends
...........................................................................................................................................
1,725
Withholding
tax
....................................................................................................................................
(
2
)
Securities
lending
-
net
.............................................................................................................................
115
Total
Income
1,847
Expenses:
Management
and
investment
advisory
fees
........................................................................................................
1,419
Distribution
fees
-
Class
2
..........................................................................................................................
16
Custodian
fees
......................................................................................................................................
5
Directors'
expenses
.................................................................................................................................
6
Professional fees
...................................................................................................................................
4
Total
Expenses
1,450
Net
Investment
Income
(Loss)
397
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
............................................................................................................................
8,395
Change
in
unrealized
appreciation/depreciation
of:
Investments
.........................................................................................................................................
28,277
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
36,672
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
37,069
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
60
See
accompanying
notes.
Amounts
in
thousands
Blue
Chip
Account
Bond
Market
Index
Account
Period Ended
December
31,
2020
(a)
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
...............................................................................................
$
(
2
)
$
51,808
$
63,413
Net
realized
gain
(loss)
on
investments
.....................................................................................
2
34,032
15,149
Change
in
unrealized
appreciation/depreciation
of
investments
............................................................
170
87,025
120,981
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
170
172,865
199,543
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
.................................................................................................................
N/A
(
66,635
)
(
63,629
)
Class
3
.................................................................................................................
–
N/A
N/A
Total
Dividends
and
Distributions
–
(
66,635
)
(
63,629
)
Capital
Share
Transactions
Dollars
sold:
Class
1
.................................................................................................................
N/A
731,232
629,823
Class
3
.................................................................................................................
5,000
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
.................................................................................................................
N/A
66,635
63,629
Dollars
redeemed:
Class
1
.................................................................................................................
N/A
(
708,298
)
(
503,261
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
5,000
89,569
190,191
Total
Increase
(Decrease)
5,170
195,799
326,105
Net
Assets
Beginning
of
period
.........................................................................................................
–
2,539,460
2,213,355
End
of
period
...............................................................................................................
$
5,170
$
2,735,259
$
2,539,460
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
.................................................................................................................
N/A
65,182
59,835
Class
3
.................................................................................................................
500
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
.................................................................................................................
N/A
5,971
5,969
Shares
redeemed:
Class
1
.................................................................................................................
N/A
(
63,937
)
(
47,091
)
Net
Increase
(Decrease)
.....................................................................................................
500
7,216
18,713
(a)
Period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
61
See
accompanying
notes.
Amounts
in
thousands
Core
Plus
Bond
Account
Diversified
Balanced
Account
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2020
(b)
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
4,918
$
8,756
$
19,207
$
20,392
Net
realized
gain
(loss)
on
investments
,
futures
contracts
and
swap
agreements
.......................
10,718
4,484
59,571
41,502
Change
in
unrealized
appreciation/depreciation
of
investments
,
futures
contracts
......................
7,744
15,149
37,371
110,315
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
23,380
28,389
116,149
172,209
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
9,503
)
(
10,172
)
(
2,241
)
(
2,466
)
Class
2
..............................................................................................
N/A
–
(
52,088
)
(
58,890
)
Class
3
..............................................................................................
N/A
N/A
–
N/A
Total
Dividends
and
Distributions
(
9,503
)
(
10,172
)
(
54,329
)
(
61,356
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
59,751
50,731
1,819
1,350
Class
2
..............................................................................................
N/A
678
6,443
9,218
Class
3
..............................................................................................
N/A
N/A
10
N/A
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A
13,863
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
9,503
10,172
2,241
2,466
Class
2
..............................................................................................
N/A
–
52,088
58,890
Dollars
redeemed:
Class
1
..............................................................................................
(
80,049
)
(
120,810
)
(
6,732
)
(
4,004
)
Class
2
..............................................................................................
N/A
(
1,497
)
(
126,371
)
(
155,027
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
10,795
)
(
46,863
)
(
70,502
)
(
87,107
)
Total
Increase
(Decrease)
3,082
(
28,646
)
(
8,682
)
23,746
Net
Assets
Beginning
of
period
......................................................................................
252,874
281,520
1,028,958
1,005,212
End
of
period
............................................................................................
$
255,956
$
252,874
$
1,020,276
$
1,028,958
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
4,979
4,480
113
83
Class
2
..............................................................................................
N/A
61
387
565
Class
3
..............................................................................................
N/A
N/A
1
N/A
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A
1,210
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
795
891
137
155
Class
2
..............................................................................................
N/A
–
3,184
3,699
Shares
redeemed:
Class
1
..............................................................................................
(
6,709
)
(
10,571
)
(
408
)
(
248
)
Class
2
..............................................................................................
N/A
(
132
)
(
7,660
)
(
9,604
)
Net
Increase
(Decrease)
..................................................................................
(
935
)
(
4,061
)
(
4,246
)
(
5,350
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
(b)
Period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020
for
Class
3
shares.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
62
See
accompanying
notes.
Amounts
in
thousands
Diversified
Balanced
Managed
Volatility
Account
Diversified
Balanced
Volatility
Control
Account
Year
Ended
December
31,
2020
(a)
Year
Ended
December
31,
2019
Year
Ended
December
31,
2020
(a)
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
3,179
$
3,259
$
2,771
$
2,521
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
3,997
6,547
3,221
2,216
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
12,698
17,624
8,635
9,421
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
19,874
27,430
14,627
14,158
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
2
..............................................................................................
(
9,814
)
(
5,335
)
(
4,487
)
(
2,000
)
Class
3
..............................................................................................
–
N/A
–
N/A
Total
Dividends
and
Distributions
(
9,814
)
(
5,335
)
(
4,487
)
(
2,000
)
Capital
Share
Transactions
Dollars
sold:
Class
2
..............................................................................................
9,530
8,008
30,906
68,215
Class
3
..............................................................................................
10
N/A
10
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
9,814
5,335
4,487
2,000
Dollars
redeemed:
Class
2
..............................................................................................
(
20,500
)
(
21,369
)
(
6,435
)
(
3,985
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
1,146
)
(
8,026
)
28,968
66,230
Total
Increase
(Decrease)
8,914
14,069
39,108
78,388
Net
Assets
Beginning
of
period
......................................................................................
176,235
162,166
145,371
66,983
End
of
period
............................................................................................
$
185,149
$
176,235
$
184,479
$
145,371
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
2
..............................................................................................
739
648
2,639
6,096
Class
3
..............................................................................................
1
N/A
1
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
771
429
384
178
Shares
redeemed:
Class
2
..............................................................................................
(
1,602
)
(
1,721
)
(
553
)
(
357
)
Net
Increase
(Decrease)
..................................................................................
(
91
)
(
644
)
2,471
5,917
(a)
Period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020
for
Class
3
shares.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
63
See
accompanying
notes.
Amounts
in
thousands
Diversified
Growth
Account
Diversified
Growth
Managed
Volatility
Account
Year
Ended
December
31,
2020
(a)
Year
Ended
December
31,
2019
Year
Ended
December
31,
2020
(a)
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
68,287
$
69,980
$
6,062
$
6,246
Net
realized
gain
(loss)
on
investments
..................................................................
201,785
139,147
9,139
16,172
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
201,145
495,618
29,119
40,824
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
471,217
704,745
44,320
63,242
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
2
..............................................................................................
(
190,828
)
(
198,223
)
(
22,413
)
(
10,642
)
Class
3
..............................................................................................
–
N/A
–
N/A
Total
Dividends
and
Distributions
(
190,828
)
(
198,223
)
(
22,413
)
(
10,642
)
Capital
Share
Transactions
Dollars
sold:
Class
2
..............................................................................................
17,827
21,912
13,484
8,119
Class
3
..............................................................................................
10
N/A
10
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
190,828
198,223
22,413
10,642
Dollars
redeemed:
Class
2
..............................................................................................
(
408,107
)
(
442,824
)
(
33,253
)
(
42,902
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
199,442
)
(
222,689
)
2,654
(
24,141
)
Total
Increase
(Decrease)
80,947
283,833
24,561
28,459
Net
Assets
Beginning
of
period
......................................................................................
3,772,145
3,488,312
353,687
325,228
End
of
period
............................................................................................
$
3,853,092
$
3,772,145
$
378,248
$
353,687
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
2
..............................................................................................
966
1,219
1,020
633
Class
3
..............................................................................................
1
N/A
1
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
10,405
11,142
1,709
825
Shares
redeemed:
Class
2
..............................................................................................
(
22,032
)
(
24,574
)
(
2,480
)
(
3,332
)
Net
Increase
(Decrease)
..................................................................................
(
10,660
)
(
12,213
)
250
(
1,874
)
(a)
Period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020
for
Class
3
shares.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
64
See
accompanying
notes.
Amounts
in
thousands
Diversified
Growth
Volatility
Control
Account
Diversified
Income
Account
Year
Ended
December
31,
2020
(a)
Year
Ended
December
31,
2019
Year
Ended
December
31,
2020
(a)
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
13,788
$
13,065
$
6,093
$
5,720
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
15,480
12,029
7,377
5,094
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
53,997
64,354
18,607
26,128
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
83,265
89,448
32,077
36,942
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
2
..............................................................................................
(
26,804
)
(
10,290
)
(
10,799
)
(
10,164
)
Class
3
..............................................................................................
–
N/A
–
N/A
Total
Dividends
and
Distributions
(
26,804
)
(
10,290
)
(
10,799
)
(
10,164
)
Capital
Share
Transactions
Dollars
sold:
Class
2
..............................................................................................
158,414
296,797
60,558
49,724
Class
3
..............................................................................................
10
N/A
10
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
26,804
10,290
10,799
10,164
Dollars
redeemed:
Class
2
..............................................................................................
(
11,521
)
(
5,534
)
(
48,998
)
(
48,109
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
173,707
301,553
22,369
11,779
Total
Increase
(Decrease)
230,168
380,711
43,647
38,557
Net
Assets
Beginning
of
period
......................................................................................
765,417
384,706
279,888
241,331
End
of
period
............................................................................................
$
995,585
$
765,417
$
323,535
$
279,888
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
2
..............................................................................................
13,413
26,239
4,296
3,693
Class
3
..............................................................................................
1
N/A
1
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
2,277
901
768
756
Shares
redeemed:
Class
2
..............................................................................................
(
960
)
(
478
)
(
3,488
)
(
3,573
)
Net
Increase
(Decrease)
..................................................................................
14,731
26,662
1,577
876
(a)
Period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020
for
Class
3
shares.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
65
See
accompanying
notes.
Amounts
in
thousands
Diversified
International
Account
Equity
Income
Account
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2020
(b)
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
2,924
$
4,743
$
15,088
$
15,671
Net
realized
gain
(loss)
on
investments
and
foreign
currencies
.........................................
2,355
421
3,936
25,250
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
35,065
46,445
28,636
143,189
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
40,344
51,609
47,660
184,110
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
6,493
)
(
16,680
)
(
33,840
)
(
31,963
)
Class
2
..............................................................................................
N/A
–
(
1,309
)
(
1,260
)
Class
3
..............................................................................................
N/A
N/A
–
N/A
Total
Dividends
and
Distributions
(
6,493
)
(
16,680
)
(
35,149
)
(
33,223
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
23,408
16,466
69,175
30,924
Class
2
..............................................................................................
N/A
282
5,224
2,812
Class
3
..............................................................................................
N/A
N/A
10
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
6,493
16,680
33,840
31,963
Class
2
..............................................................................................
N/A
–
1,309
1,260
Dollars
redeemed:
Class
1
..............................................................................................
(
38,794
)
(
34,685
)
(
100,507
)
(
102,774
)
Class
2
..............................................................................................
N/A
(
2,536
)
(
4,904
)
(
3,271
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
8,893
)
(
3,793
)
4,147
(
39,086
)
Total
Increase
(Decrease)
24,958
31,136
16,658
111,801
Net
Assets
Beginning
of
period
......................................................................................
266,768
235,632
773,185
661,384
End
of
period
............................................................................................
$
291,726
$
266,768
$
789,843
$
773,185
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,592
1,091
2,814
1,185
Class
2
..............................................................................................
N/A
19
205
107
Class
3
..............................................................................................
N/A
N/A
–
(c)
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
429
1,154
1,364
1,212
Class
2
..............................................................................................
N/A
–
53
48
Shares
redeemed:
Class
1
..............................................................................................
(
2,591
)
(
2,292
)
(
3,991
)
(
3,931
)
Class
2
..............................................................................................
N/A
(
165
)
(
197
)
(
127
)
Net
Increase
(Decrease)
..................................................................................
(
570
)
(
193
)
248
(
1,506
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
(b)
Period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020
for
Class
3
shares.
(c)
Reflects
an
amount
less
than
500
shares
sold.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
66
See
accompanying
notes.
Amounts
in
thousands
Government
&
High
Quality
Bond
Account
International
Emerging
Markets
Account
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
2,928
$
5,203
$
575
$
2,141
Net
realized
gain
(loss)
on
investments
,
foreign
currencies
and
futures
contracts
......................
1,550
447
1,801
(
158
)
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
2,307
8,424
12,316
12,106
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
6,785
14,074
14,692
14,089
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
5,987
)
(
6,457
)
(
1,960
)
(
3,085
)
Class
2
..............................................................................................
N/A
–
N/A
–
Total
Dividends
and
Distributions
(
5,987
)
(
6,457
)
(
1,960
)
(
3,085
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
48,406
45,780
6,687
10,185
Class
2
..............................................................................................
N/A
109
N/A
300
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
5,987
6,457
1,960
3,085
Dollars
redeemed:
Class
1
..............................................................................................
(
68,527
)
(
38,035
)
(
17,269
)
(
17,834
)
Class
2
..............................................................................................
N/A
(
2,835
)
N/A
(
1,909
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
14,134
)
11,476
(
8,622
)
(
6,173
)
Total
Increase
(Decrease)
(
13,336
)
19,093
4,110
4,831
Net
Assets
Beginning
of
period
......................................................................................
241,332
222,239
89,729
84,898
End
of
period
............................................................................................
$
227,996
$
241,332
$
93,839
$
89,729
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
4,870
4,656
403
632
Class
2
..............................................................................................
N/A
11
N/A
19
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
610
662
117
198
Shares
redeemed:
Class
1
..............................................................................................
(
6,882
)
(
3,904
)
(
1,050
)
(
1,108
)
Class
2
..............................................................................................
N/A
(
289
)
N/A
(
121
)
Net
Increase
(Decrease)
..................................................................................
(
1,402
)
1,136
(
530
)
(
380
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
67
See
accompanying
notes.
Amounts
in
thousands
LargeCap
Growth
Account
I
LargeCap
S&P
500
Index
Account
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
(
766
)
$
126
$
42,203
$
46,309
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
89,670
37,349
305,143
202,727
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
81,761
79,915
151,298
447,023
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
170,665
117,390
498,644
696,059
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
32,044
)
(
34,797
)
(
209,074
)
(
159,558
)
Class
2
..............................................................................................
N/A
–
(
1,726
)
(
807
)
Total
Dividends
and
Distributions
(
32,044
)
(
34,797
)
(
210,800
)
(
160,365
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
76,419
49,655
412,611
242,319
Class
2
..............................................................................................
N/A
1,475
10,151
6,806
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A
112,835
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
32,044
34,797
209,074
159,558
Class
2
..............................................................................................
N/A
–
1,726
807
Dollars
redeemed:
Class
1
..............................................................................................
(
137,380
)
(
72,723
)
(
707,658
)
(
620,303
)
Class
2
..............................................................................................
N/A
(
5,277
)
(
2,283
)
(
872
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
28,917
)
120,762
(
76,379
)
(
211,685
)
Total
Increase
(Decrease)
109,704
203,355
211,465
324,009
Net
Assets
Beginning
of
period
......................................................................................
502,653
299,298
2,709,178
2,385,169
End
of
period
............................................................................................
$
612,357
$
502,653
$
2,920,643
$
2,709,178
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,875
1,406
23,526
12,839
Class
2
..............................................................................................
N/A
42
525
360
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A
3,150
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
747
1,003
10,760
8,551
Class
2
..............................................................................................
N/A
–
90
44
Shares
redeemed:
Class
1
..............................................................................................
(
3,339
)
(
2,043
)
(
35,841
)
(
33,092
)
Class
2
..............................................................................................
N/A
(
148
)
(
124
)
(
47
)
Net
Increase
(Decrease)
..................................................................................
(
717
)
3,410
(
1,064
)
(
11,345
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
68
See
accompanying
notes.
Amounts
in
thousands
LargeCap
S&P
500
Managed
Volatility
Index
Account
MidCap
Account
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
2,849
$
3,457
$
712
$
4,139
Net
realized
gain
(loss)
on
investments
,
futures
contracts
and
options
and
swaptions
..................
14,091
13,103
52,550
65,028
Change
in
unrealized
appreciation/depreciation
of
investments
,
futures
contracts
and
options
and
swaptions
.................................................................................................
20,710
38,791
44,805
131,244
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
37,650
55,351
98,067
200,411
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
8,348
)
(
18,504
)
(
55,618
)
(
78,890
)
Class
2
..............................................................................................
N/A
N/A
(
2,129
)
(
2,711
)
Total
Dividends
and
Distributions
(
8,348
)
(
18,504
)
(
57,747
)
(
81,601
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
28,455
13,578
16,217
16,147
Class
2
..............................................................................................
N/A
N/A
3,754
241
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
8,348
18,504
55,618
78,890
Class
2
..............................................................................................
N/A
N/A
2,129
2,711
Dollars
redeemed:
Class
1
..............................................................................................
(
48,772
)
(
56,805
)
(
94,297
)
(
96,550
)
Class
2
..............................................................................................
N/A
N/A
(
2,666
)
(
1,662
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
11,969
)
(
24,723
)
(
19,245
)
(
223
)
Total
Increase
(Decrease)
17,333
12,124
21,075
118,587
Net
Assets
Beginning
of
period
......................................................................................
217,779
205,655
608,662
490,075
End
of
period
............................................................................................
$
235,112
$
217,779
$
629,737
$
608,662
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
2,164
939
298
272
Class
2
..............................................................................................
N/A
N/A
66
4
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
552
1,323
1,013
1,395
Class
2
..............................................................................................
N/A
N/A
39
48
Shares
redeemed:
Class
1
..............................................................................................
(
3,262
)
(
3,948
)
(
1,635
)
(
1,633
)
Class
2
..............................................................................................
N/A
N/A
(
48
)
(
28
)
Net
Increase
(Decrease)
..................................................................................
(
546
)
(
1,686
)
(
267
)
58
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
69
See
accompanying
notes.
Amounts
in
thousands
Principal
Capital
Appreciation
Account
Principal
LifeTime
2010
Account
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
1,495
$
1,897
$
627
$
806
Net
realized
gain
(loss)
on
investments
..................................................................
7,923
9,392
1,964
613
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
16,879
30,626
993
2,832
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
26,297
41,915
3,584
4,251
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
8,219
)
(
14,537
)
(
1,397
)
(
2,623
)
Class
2
..............................................................................................
(
845
)
(
1,192
)
N/A
N/A
Total
Dividends
and
Distributions
(
9,064
)
(
15,729
)
(
1,397
)
(
2,623
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
5,155
2,236
13,158
4,033
Class
2
..............................................................................................
4,919
3,206
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
8,219
14,537
1,397
2,623
Class
2
..............................................................................................
845
1,192
N/A
N/A
Dollars
redeemed:
Class
1
..............................................................................................
(
25,015
)
(
26,520
)
(
12,417
)
(
8,675
)
Class
2
..............................................................................................
(
2,405
)
(
1,378
)
N/A
N/A
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
8,282
)
(
6,727
)
2,138
(
2,019
)
Total
Increase
(Decrease)
8,951
19,459
4,325
(
391
)
Net
Assets
Beginning
of
period
......................................................................................
156,763
137,304
31,499
31,890
End
of
period
............................................................................................
$
165,714
$
156,763
$
35,824
$
31,499
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
179
77
1,023
316
Class
2
..............................................................................................
159
109
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
269
509
108
211
Class
2
..............................................................................................
28
42
N/A
N/A
Shares
redeemed:
Class
1
..............................................................................................
(
824
)
(
894
)
(
965
)
(
675
)
Class
2
..............................................................................................
(
81
)
(
47
)
N/A
N/A
Net
Increase
(Decrease)
..................................................................................
(
270
)
(
204
)
166
(
148
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
70
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2020
Account
Principal
LifeTime
2030
Account
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
3,226
$
4,648
$
3,386
$
4,063
Net
realized
gain
(loss)
on
investments
..................................................................
10,967
3,295
8,619
3,596
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
5,602
22,973
16,183
24,435
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
19,795
30,916
28,188
32,094
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
7,874
)
(
12,571
)
(
7,444
)
(
12,276
)
Class
2
..............................................................................................
N/A
–
N/A
–
Total
Dividends
and
Distributions
(
7,874
)
(
12,571
)
(
7,444
)
(
12,276
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
41,931
36,143
60,753
38,567
Class
2
..............................................................................................
N/A
57
N/A
193
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
7,874
12,571
7,444
12,276
Dollars
redeemed:
Class
1
..............................................................................................
(
58,034
)
(
48,621
)
(
42,822
)
(
28,880
)
Class
2
..............................................................................................
N/A
(
1,506
)
N/A
(
2,217
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
8,229
)
(
1,356
)
25,375
19,939
Total
Increase
(Decrease)
3,692
16,989
46,119
39,757
Net
Assets
Beginning
of
period
......................................................................................
190,475
173,486
182,172
142,415
End
of
period
............................................................................................
$
194,167
$
190,475
$
228,291
$
182,172
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
2,969
2,639
4,701
3,010
Class
2
..............................................................................................
N/A
4
N/A
15
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
569
940
570
984
Shares
redeemed:
Class
1
..............................................................................................
(
4,285
)
(
3,540
)
(
3,418
)
(
2,251
)
Class
2
..............................................................................................
N/A
(
109
)
N/A
(
172
)
Net
Increase
(Decrease)
..................................................................................
(
747
)
(
66
)
1,853
1,586
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
71
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2040
Account
Principal
LifeTime
2050
Account
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
1,600
$
1,770
$
709
$
748
Net
realized
gain
(loss)
on
investments
..................................................................
4,034
1,840
1,976
939
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
9,163
12,532
4,442
6,530
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
14,797
16,142
7,127
8,217
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
3,620
)
(
5,351
)
(
1,684
)
(
2,861
)
Class
2
..............................................................................................
N/A
–
N/A
–
Total
Dividends
and
Distributions
(
3,620
)
(
5,351
)
(
1,684
)
(
2,861
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
23,228
19,903
9,945
7,098
Class
2
..............................................................................................
N/A
158
N/A
93
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
3,620
5,351
1,684
2,861
Dollars
redeemed:
Class
1
..............................................................................................
(
16,293
)
(
13,291
)
(
6,174
)
(
6,652
)
Class
2
..............................................................................................
N/A
(
905
)
N/A
(
1,155
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
10,555
11,216
5,455
2,245
Total
Increase
(Decrease)
21,732
22,007
10,898
7,601
Net
Assets
Beginning
of
period
......................................................................................
85,405
63,398
38,881
31,280
End
of
period
............................................................................................
$
107,137
$
85,405
$
49,779
$
38,881
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,475
1,269
656
471
Class
2
..............................................................................................
N/A
10
N/A
6
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
227
350
111
196
Shares
redeemed:
Class
1
..............................................................................................
(
1,044
)
(
853
)
(
412
)
(
442
)
Class
2
..............................................................................................
N/A
(
57
)
N/A
(
76
)
Net
Increase
(Decrease)
..................................................................................
658
719
355
155
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
72
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2060
Account
Principal
LifeTime
Strategic
Income
Account
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
154
$
142
$
576
$
661
Net
realized
gain
(loss)
on
investments
..................................................................
316
203
1,263
31
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
1,132
1,153
900
2,005
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
1,602
1,498
2,739
2,697
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
346
)
(
454
)
(
686
)
(
1,595
)
Total
Dividends
and
Distributions
(
346
)
(
454
)
(
686
)
(
1,595
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
5,470
4,342
13,699
7,304
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
346
454
686
1,595
Dollars
redeemed:
Class
1
..............................................................................................
(
3,735
)
(
2,358
)
(
11,692
)
(
4,386
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
2,081
2,438
2,693
4,513
Total
Increase
(Decrease)
3,337
3,482
4,746
5,615
Net
Assets
Beginning
of
period
......................................................................................
8,131
4,649
26,279
20,664
End
of
period
............................................................................................
$
11,468
$
8,131
$
31,025
$
26,279
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
395
312
1,125
609
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
24
33
56
137
Shares
redeemed:
Class
1
..............................................................................................
(
277
)
(
168
)
(
968
)
(
371
)
Net
Increase
(Decrease)
..................................................................................
142
177
213
375
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
73
See
accompanying
notes.
Amounts
in
thousands
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
2,591
$
2,548
$
11,114
$
14,101
Net
realized
gain
(loss)
on
investments
..................................................................
9,588
10,570
15,288
20,849
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
19,045
)
28,328
42,753
90,645
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
6,866
)
41,446
69,155
125,595
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
10,113
)
(
12,865
)
(
28,428
)
(
34,485
)
Class
2
..............................................................................................
(
471
)
(
409
)
(
6,281
)
(
6,978
)
Total
Dividends
and
Distributions
(
10,584
)
(
13,274
)
(
34,709
)
(
41,463
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
14,394
13,048
15,889
11,207
Class
2
..............................................................................................
2,633
2,340
12,156
12,791
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
10,113
12,865
28,428
34,485
Class
2
..............................................................................................
471
409
6,281
6,978
Dollars
redeemed:
Class
1
..............................................................................................
(
33,684
)
(
31,224
)
(
77,946
)
(
102,578
)
Class
2
..............................................................................................
(
1,825
)
(
602
)
(
15,097
)
(
13,398
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
7,898
)
(
3,164
)
(
30,289
)
(
50,515
)
Total
Increase
(Decrease)
(
25,348
)
25,008
4,157
33,617
Net
Assets
Beginning
of
period
......................................................................................
161,930
136,922
698,830
665,213
End
of
period
............................................................................................
$
136,582
$
161,930
$
702,987
$
698,830
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
757
621
1,033
740
Class
2
..............................................................................................
136
109
811
852
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
571
619
1,893
2,314
Class
2
..............................................................................................
27
20
424
474
Shares
redeemed:
Class
1
..............................................................................................
(
1,781
)
(
1,476
)
(
5,156
)
(
6,736
)
Class
2
..............................................................................................
(
94
)
(
29
)
(
1,001
)
(
895
)
Net
Increase
(Decrease)
..................................................................................
(
384
)
(
136
)
(
1,996
)
(
3,251
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
74
See
accompanying
notes.
Amounts
in
thousands
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
3,643
$
4,273
$
4,716
$
6,095
Net
realized
gain
(loss)
on
investments
..................................................................
2,428
4,079
7,957
5,613
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
10,081
18,902
30,555
59,644
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
16,152
27,254
43,228
71,352
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
6,527
)
(
7,836
)
(
7,057
)
(
13,076
)
Class
2
..............................................................................................
(
1,120
)
(
1,118
)
(
4,603
)
(
8,339
)
Total
Dividends
and
Distributions
(
7,647
)
(
8,954
)
(
11,660
)
(
21,415
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
10,993
10,371
15,388
13,665
Class
2
..............................................................................................
6,465
3,994
10,170
12,305
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
6,527
7,836
7,057
13,076
Class
2
..............................................................................................
1,120
1,118
4,603
8,339
Dollars
redeemed:
Class
1
..............................................................................................
(
24,358
)
(
24,553
)
(
28,311
)
(
33,646
)
Class
2
..............................................................................................
(
4,138
)
(
2,337
)
(
12,707
)
(
14,790
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
3,391
)
(
3,571
)
(
3,800
)
(
1,051
)
Total
Increase
(Decrease)
5,114
14,729
27,768
48,886
Net
Assets
Beginning
of
period
......................................................................................
189,475
174,746
356,847
307,961
End
of
period
............................................................................................
$
194,589
$
189,475
$
384,615
$
356,847
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
905
886
809
719
Class
2
..............................................................................................
542
338
541
654
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
548
668
365
698
Class
2
..............................................................................................
95
96
242
452
Shares
redeemed:
Class
1
..............................................................................................
(
2,063
)
(
2,065
)
(
1,484
)
(
1,766
)
Class
2
..............................................................................................
(
354
)
(
199
)
(
682
)
(
790
)
Net
Increase
(Decrease)
..................................................................................
(
327
)
(
276
)
(
209
)
(
33
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
75
See
accompanying
notes.
Amounts
in
thousands
SAM
Flexible
Income
Portfolio
SAM
Strategic
Growth
Portfolio
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
4,396
$
4,893
$
3,541
$
5,175
Net
realized
gain
(loss)
on
investments
..................................................................
2,977
4,715
8,211
7,194
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
4,312
13,562
35,189
56,229
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
11,685
23,170
46,941
68,598
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
7,314
)
(
9,918
)
(
6,858
)
(
10,497
)
Class
2
..............................................................................................
(
1,558
)
(
1,807
)
(
5,802
)
(
8,871
)
Total
Dividends
and
Distributions
(
8,872
)
(
11,725
)
(
12,660
)
(
19,368
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
12,405
11,700
17,678
13,010
Class
2
..............................................................................................
7,059
5,814
10,818
9,949
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A
346
N/A
N/A
Class
2
..............................................................................................
N/A
107
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
7,314
9,918
6,858
10,497
Class
2
..............................................................................................
1,558
1,807
5,802
8,871
Dollars
redeemed:
Class
1
..............................................................................................
(
30,419
)
(
30,930
)
(
23,845
)
(
21,196
)
Class
2
..............................................................................................
(
5,053
)
(
4,297
)
(
11,395
)
(
10,097
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
7,136
)
(
5,535
)
5,916
11,034
Total
Increase
(Decrease)
(
4,323
)
5,910
40,197
60,264
Net
Assets
Beginning
of
period
......................................................................................
188,585
182,675
315,413
255,149
End
of
period
............................................................................................
$
184,262
$
188,585
$
355,610
$
315,413
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,003
937
858
625
Class
2
..............................................................................................
577
468
543
486
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A
27
N/A
N/A
Class
2
..............................................................................................
N/A
8
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
601
811
327
517
Class
2
..............................................................................................
129
149
281
443
Shares
redeemed:
Class
1
..............................................................................................
(
2,490
)
(
2,464
)
(
1,170
)
(
1,024
)
Class
2
..............................................................................................
(
415
)
(
346
)
(
555
)
(
496
)
Net
Increase
(Decrease)
..................................................................................
(
595
)
(
410
)
284
551
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
76
See
accompanying
notes.
Amounts
in
thousands
Short-Term
Income
Account
SmallCap
Account
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2020
Year
Ended
December
31,
2019
Operations
Net
investment
income
(loss)
............................................................................
$
2,255
$
3,167
$
397
$
976
Net
realized
gain
(loss)
on
investments
..................................................................
1,329
367
8,395
12,355
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
1,248
2,788
28,277
31,227
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
4,832
6,322
37,069
44,558
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
3,166
)
(
3,392
)
(
12,854
)
(
28,785
)
Class
2
..............................................................................................
N/A
–
(
488
)
(
937
)
Total
Dividends
and
Distributions
(
3,166
)
(
3,392
)
(
13,342
)
(
29,722
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
76,173
32,469
11,103
7,971
Class
2
..............................................................................................
N/A
1,115
1,429
1,072
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
3,166
3,392
12,854
28,785
Class
2
..............................................................................................
N/A
–
488
937
Dollars
redeemed:
Class
1
..............................................................................................
(
54,838
)
(
56,911
)
(
35,244
)
(
29,980
)
Class
2
..............................................................................................
N/A
(
5,301
)
(
1,358
)
(
475
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
24,501
(
25,236
)
(
10,728
)
8,310
Total
Increase
(Decrease)
26,167
(
22,306
)
12,999
23,146
Net
Assets
Beginning
of
period
......................................................................................
130,852
153,158
191,263
168,117
End
of
period
............................................................................................
$
157,019
$
130,852
$
204,262
$
191,263
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
29,351
12,624
841
506
Class
2
..............................................................................................
N/A
437
102
70
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
1,223
1,330
965
1,996
Class
2
..............................................................................................
N/A
–
37
65
Shares
redeemed:
Class
1
..............................................................................................
(
21,193
)
(
22,197
)
(
2,487
)
(
1,890
)
Class
2
..............................................................................................
N/A
(
2,065
)
(
96
)
(
30
)
Net
Increase
(Decrease)
..................................................................................
9,381
(
9,871
)
(
638
)
717
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
77
1.
Organization
Principal
Variable
Contracts
Funds,
Inc.
(the
"Fund")
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
as
an
open-end
management
investment
company
and
operates
as
a
series
fund
in
the
mutual
fund
industry.
The
financial
statements
for
Blue
Chip
Account,
Bond
Market
Index
Account,
Core
Plus
Bond
Account,
Diversified
Balanced
Account,
Diversified
Balanced
Managed
Volatility
Account,
Diversified
Balanced
Volatility
Control
Account,
Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Growth
Volatility
Control
Account,
Diversified
Income
Account,
Diversified
International
Account,
Equity
Income
Account,
Government
&
High
Quality
Bond
Account,
International
Emerging
Markets
Account,
LargeCap
Growth
Account
I,
LargeCap
S&P
500
Index
Account,
LargeCap
S&P
500
Managed
Volatility
Index
Account,
MidCap
Account,
Principal
Capital
Appreciation
Account,
Principal
LifeTime
2010
Account,
Principal
LifeTime
2020
Account,
Principal
LifeTime
2030
Account,
Principal
LifeTime
2040
Account,
Principal
LifeTime
2050
Account,
Principal
LifeTime
2060
Account,
Principal
LifeTime
Strategic
Income
Account,
Real
Estate
Securities
Account,
SAM
Balanced
Portfolio,
SAM
Conservative
Balanced
Portfolio,
SAM
Conservative
Growth
Portfolio,
SAM
Flexible
Income
Portfolio,
SAM
Strategic
Growth
Portfolio,
Short-Term
Income
Account
and
SmallCap
Account
(known
as
the
“Accounts”),
are
presented
herein.
Principal
LifeTime
2010
Account,
Principal
LifeTime
2020
Account,
Principal
LifeTime
2030
Account,
Principal
LifeTime
2040
Account,
Principal
LifeTime
2050
Account,
Principal
LifeTime
2060
Account,
and
Principal
LifeTime
Strategic
Income
Account
are
referred
to
collectively
as
the
“Principal
LifeTime
Accounts”.
SAM
Balanced
Portfolio,
SAM
Conservative
Balanced
Portfolio,
SAM
Conservative
Growth
Portfolio,
SAM
Flexible
Income
Portfolio,
and
SAM
Strategic
Growth
Portfolio
are
referred
to
collectively
as
the
“SAM
Portfolios”.
Each
of
the
Accounts
is
an
investment
company
and
applies
specialized
accounting
and
reporting
under
Accounting
Standards
Codification
(“ASC”)
Topic
946,
Financial
Services
-
Investment
Companies
.
The
Accounts
have
not
provided
financial
support
and
are
not
contractually
required
to
provide
financial
support
to
any
investee.
Effective
June
7,
2019,
Core
Plus
Bond
Account,
as
the
accounting
legal
survivor,
acquired
all
the
assets
and
assumed
all
the
liabilities
of
Income
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
2018.
The
purpose
of
the
acquisition
was
to
combine
two
accounts
managed
by
the
Principal
Global
Investors,
LLC
(“Manager”)
with
similar
investment
objectives,
principal
policies,
and
risks.
The
acquisition
was
accomplished
by
a
taxable
exchange
of
5,873,000
shares
from
Income
Account
for
1,210,000
shares
valued
at
$13,863,000
of
Core
Plus
Bond
Account
at
an
approximate
exchange
rate
of
.21
and
.21
for
Class
1
and
Class
2
shares,
respectively.
The
investment
securities
of
Income
Account,
with
a
fair
value
of
approximately
$13,145,000
and
a
cost
of
$12,607,000
and
$613,000
cash
were
the
primary
assets
acquired
by
Core
Plus
Bond
Account
on
June
7,
2019.
For
financial
reporting
purposes,
assets
received
and
shares
issued
by
Core
Plus
Bond
Account
were
recorded
at
fair
value.
The
net
assets
of
Income
Account
and
Core
Plus
Bond
Account
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
generally
accepted
accounting
principles
(“U.S.
GAAP”)
were
approximately
$13,863,000
($4,875,000
of
accumulated
realized
gain)
and
$304,718,000,
respectively.
The
net
assets
of
Core
Plus
Bond
Account
immediately
following
the
acquisition
were
$318,581,000.
In
accordance
with
Sections
381-384
of
the
Internal
Revenue
Code,
a
portion
of
accumulated
realized
losses
may
be
subject
to
limitation.
Assuming
the
acquisition
had
been
completed
on
January
1,
2019,
the
beginning
of
the
fiscal
year
for
Core
Plus
Bond
Account,
Core
Plus
Bond
Account’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$11,379,000
of
net
investment
income,
$24,559,000
of
net
realized
and
unrealized
gain
on
investments,
and
$35,938,000
of
net
increase
in
net
assets
resulting
from
operations.
Because
the
combined
investment
portfolios
have
been
managed
as
a
single
integrated
portfolio
since
the
acquisition
was
completed,
it
is
not
practicable
to
separate
the
amounts
of
revenue
and
earnings
of
Income
Account
that
have
been
included
in
Core
Plus
Bond
Account’s
statement
of
operations
since
June
7,
2019.
Effective
June
7,
2019,
LargeCap
Growth
Account
I,
as
the
accounting
legal
survivor,
acquired
all
the
assets
and
assumed
all
the
liabilities
of
LargeCap
Growth
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
2018.
The
purpose
of
the
acquisition
was
to
combine
two
accounts
managed
by
the
Manager
with
similar
investment
objectives,
principal
policies,
and
risks.
The
acquisition
was
accomplished
by
a
tax-free
exchange
of
4,657,000
shares
from
LargeCap
Growth
Account
for
3,150,000
shares
valued
at
$112,835,000
of
LargeCap
Growth
Account
I
at
an
approximate
exchange
rate
of
.68
and
.67
for
Class
1
and
Class
2
shares,
respectively.
The
investment
securities
of
LargeCap
Growth
Account,
with
a
fair
value
of
approximately
$109,603,000
and
a
cost
of
$97,236,000
and
$3,176,000
cash
were
the
primary
assets
acquired
by
LargeCap
Growth
Account
I
on
June
7,
2019.
For
financial
reporting
purposes,
assets
received
and
shares
issued
by
LargeCap
Growth
Account
I
were
recorded
at
fair
value;
however,
the
cost
basis
of
the
investments
received
from
LargeCap
Growth
Account
were
maintained
through
the
reorganization.
The
net
assets
of
LargeCap
Growth
Account
and
LargeCap
Growth
Account
I
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$112,835,000
($650,000
of
accumulated
realized
gain)
and
$351,045,000,
respectively.
The
net
assets
of
LargeCap
Growth
Account
I
immediately
following
the
acquisition
were
$463,880,000.
In
accordance
with
Sections
381-384
of
the
Internal
Revenue
Code,
a
portion
of
accumulated
realized
losses
may
be
subject
to
limitation.
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
78
Assuming
the
acquisition
had
been
completed
on
January
1,
2019,
the
beginning
of
the
fiscal
year
for
LargeCap
Growth
Account
I,
LargeCap
Growth
Account
I’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$132,000
of
net
investment
income,
$134,661,000
of
net
realized
and
unrealized
gain
on
investments,
and
$134,793,000
of
net
increase
in
net
assets
resulting
from
operations.
Because
the
combined
investment
portfolios
have
been
managed
as
a
single
integrated
portfolio
since
the
acquisition
was
completed,
it
is
not
practicable
to
separate
the
amounts
of
revenue
and
earnings
of
LargeCap
Growth
Account
that
have
been
included
in
LargeCap
Growth
Account
I’s
statement
of
operations
since
June
7,
2019.
Effective
June
7,
2019,
SAM
Flexible
Income
Portfolio,
as
the
accounting
legal
survivor,
acquired
all
the
assets
and
assumed
all
the
liabilities
of
Multi-Asset
Income
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
2018.
The
purpose
of
the
acquisition
was
to
combine
two
accounts
managed
by
the
Manager
with
similar
investment
objectives,
principal
policies,
and
risks.
The
acquisition
was
accomplished
by
a
tax-free
exchange
of
43,000
shares
from
Multi-Asset
Income
Account
for
35,000
shares
valued
at
$453,000
of
SAM
Flexible
Income
Portfolio
at
an
approximate
exchange
rate
of
.83
and
.83
for
Class
1
and
Class
2
shares,
respectively.
$457,000
cash
was
the
primary
asset
acquired
by
SAM
Flexible
Income
Portfolio
on
June
7,
2019.
The
net
assets
of
Multi-Asset
Income
Account
and
SAM
Flexible
Income
Portfolio
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$453,000
and
$185,924,000,
respectively.
The
net
assets
of
SAM
Flexible
Income
Portfolio
immediately
following
the
acquisition
were
$186,377,000.
In
accordance
with
Sections
381-384
of
the
Internal
Revenue
Code,
a
portion
of
accumulated
realized
losses
may
be
subject
to
limitation.
Assuming
the
acquisition
had
been
completed
on
January
1,
2019,
the
beginning
of
the
fiscal
year
for
SAM
Flexible
Income
Portfolio,
SAM
Flexible
Income
Portfolio’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$4,900,000
of
net
investment
income,
$18,302,000
of
net
realized
and
unrealized
gain
on
investments,
and
$23,202,000
of
net
increase
in
net
assets
resulting
from
operations.
Because
the
combined
investment
portfolios
have
been
managed
as
a
single
integrated
portfolio
since
the
acquisition
was
completed,
it
is
not
practicable
to
separate
the
amounts
of
revenue
and
earnings
of
Multi-Asset
Income
Account
that
have
been
included
in
SAM
Flexible
Income
Portfolio’s
statement
of
operations
since
June
7,
2019.
Effective
June
14,
2019,
Class
2
shares
discontinued
and
converted
into
Class
1
shares
for
the
following
Accounts:
Effective
December
9,
2020,
the
initial
purchase
of
$5,000,000
of
Class
3
shares
of
Blue
Chip
Account
was
made
by
Principal
Financial
Services,
Inc.
Effective
December
9,
2020,
the
initial
purchases
of
$10,000
of
Class
3
shares
of
the
following
Accounts
were
made
by
the
Manager.
All
classes
of
shares
for
each
of
the
Accounts
represent
interests
in
the
same
portfolio
of
investments
and
will
vote
together
as
a
single
class,
except
where
otherwise
required
by
law
or
as
determined
by
the
Fund’s
Board
of
Directors.
In
addition,
the
Board
of
Directors
declares
separate
dividends
on
each
class
of
shares.
2.
Significant
Accounting
Policies
The
preparation
of
financial
statements
in
conformity
with
U.S. GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
revenues
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
following
summarizes
the
significant
accounting
policies
of
the
Accounts:
Security
Valuation.
The
Accounts
may
invest
in
other
series
of
the
Fund,
Principal
Funds,
Inc.,
and
other
publicly
traded
investment
funds,
which
are
valued
at
the
closing
net
asset
value
per
share
on
the
day
of
valuation.
In
addition,
the
Accounts
may
invest
in
Principal
Exchange-
Traded
Funds,
which
are
valued
at
closing
exchange
price.
The
shares
of
the
other
series
of
the
Fund,
Principal
Funds,
Inc.,
and
Principal
Core
Plus
Bond
Account
Principal
LifeTime
2020
Account
Diversified
International
Account
Principal
LifeTime
2030
Account
Government
&
High-Quality
Bond
Account
Principal
LifeTime
2040
Account
International
Emerging
Markets
Account
Principal
LifeTime
2050
Account
LargeCap
Growth
Account
I
Short-Term
Income
Account
Diversified
Balanced
Account
Diversified
Growth
Managed
Volatility
Account
Diversified
Balanced
Managed
Volatility
Account
Diversified
Growth
Volatility
Control
Account
Diversified
Balanced
Volatility
Control
Account
Diversified
Income
Account
Diversified
Growth
Account
Equity
Income
Account
1.
Organization
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
79
Exchange-Traded
Funds
are
referred
to
as
the
“Affiliated
Underlying
Funds”
and
collectively,
with
other
publicly
traded
investment
funds
are
referred
to
as
the
“Underlying
Funds”.
The
Accounts
(with
the
exception
of
Diversified
Balanced
Volatility
Control
Account,
Diversified
Balanced
Managed
Volatility
Account,
Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Growth
Volatility
Control
Account,
Diversified
Income
Account,
Principal
LifeTime
Accounts,
and
SAM
Portfolios)
value
securities
for
which
market
quotations
are
readily
available
at
fair
value,
which
is
determined
using
the
last
reported
sale
price.
If
no
sales
are
reported,
as
is
regularly
the
case
for
some
securities
traded
over-the-counter,
securities
are
valued
using
the
last
reported
bid
price
or
an
evaluated
bid
price
provided
by
a
pricing
service.
Pricing
services
use
modeling
techniques
that
incorporate
security
characteristics
such
as
current
quotations
by
broker/dealers,
coupon,
maturity,
quality,
type
of
issue,
trading
characteristics,
other
yield
and
risk
factors,
and
other
market
conditions
to
determine
an
evaluated
bid
price
or,
in
the
case
of
certain
credit
default
swaps,
a
mean
price
provided
by
a
pricing
service.
When
reliable
market
quotations
are
not
considered
to
be
readily
available,
which
may
be
the
case,
for
example,
with
respect
to
restricted
securities,
certain
debt
securities,
preferred
stocks,
and
foreign
securities,
the
investments
are
valued
at
their
fair
value
as
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Fund’s
Board
of
Directors.
The
value
of
foreign
securities
used
in
computing
the
net
asset
value
per
share
is
generally
determined
as
of
the
close
of
the
foreign
exchange
where
the
security
is
principally
traded.
Events
that
occur
after
the
close
of
the
applicable
foreign
market
or
exchange
but
prior
to
the
calculation
of
the
Accounts’
net
asset
values
are
reflected
in
the
Accounts’
net
asset
values
and
these
securities
are
valued
at
fair
value.
Many
factors,
provided
by
independent
pricing
services,
are
reviewed
in
the
course
of
making
a
good
faith
determination
of
a
security’s
fair
value,
including,
but
not
limited
to,
price
movements
in
American
depository
receipts
(“ADRs”),
futures
contracts,
industry
indices,
general
indices,
and
foreign
currencies.
To
the
extent
the
Accounts
invest
in
foreign
securities
listed
on
foreign
exchanges
which
trade
on
days
on
which
the
Accounts
do
not
determine
net
asset
values,
for
example,
weekends
and
other
customary
national
U.S.
holidays,
the
Accounts’
net
asset
values
could
be
significantly
affected
on
days
when
shareholders
cannot
purchase
or
redeem
shares.
Certain
securities
issued
by
companies
in
emerging
market
countries
may
have
more
than
one
quoted
valuation
at
any
given
point
in
time,
sometimes
referred
to
as
a
"local"
price
and
a
"premium"
price.
The
premium
price
is
often
a
negotiated
price,
which
may
not
consistently
represent
a
price
at
which
a
specific
transaction
can
be
effected.
It
is
the
policy
of
the
Fund
to
value
such
securities
at
prices
at
which
it
is
expected
those
shares
may
be
sold,
and
the
Manager
or
any
sub-advisor,
is
authorized
to
make
such
determinations
subject
to
such
oversight
by
the
Fund’s
Board
of
Directors,
as
may
occasionally
be
necessary.
Currency
Translation.
Foreign
holdings
are
translated
to
U.S.
dollars
using
the
exchange
rate
at
the
daily
close
of
the
New
York
Stock
Exchange.
The
identified
cost
of
the
Accounts’
holdings
is
translated
at
approximate
rates
prevailing
when
acquired.
Income
and
expense
amounts
are
translated
at
approximate
rates
prevailing
when
received
or
paid,
with
daily
accruals
of
such
amounts
reported
at
approximate
rates
prevailing
at
the
date
of
valuation.
Since
the
carrying
amount
of
the
foreign
securities
is
determined
based
on
the
exchange
rate
and
market
values
at
the
close
of
the
period,
it
is
not
practicable
to
isolate
that
portion
of
the
results
of
operations
arising
as
a
result
of
changes
in
the
foreign
exchange
rates
from
the
fluctuations
arising
from
changes
in
the
market
prices
of
securities
during
the
period
.
Net
realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
trade
and
settlement
dates
on
security
transactions,
and
the
difference
between
the
amount
of
dividends,
interest
income,
interest
expense,
and
foreign
withholding
taxes
recorded
on
the
books
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
appreciation
(depreciation)
on
translation
of
assets
and
liabilities
in
foreign
currencies
arise
from
changes
in
the
exchange
rate
relating
to
assets
and
liabilities,
other
than
investments
in
securities,
purchased
and
held
in
non-U.S.
denominated
currencies.
The
following accounts
held
securities
denominated
in
foreign
currencies
that
exceeded
5%
of
net
assets
of
the
respective
account as
of
December
31,
2020:
Diversified
International
Account
Euro
24.7%
Japanese
Yen
17.1
British
Pound
Sterling
9.2
Hong
Kong
Dollar
7.0
Canadian
Dollar
6.4
Swiss
Franc
5.7
International
Emerging
Markets
Account
Hong
Kong
Dollar
28.3%
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
80
Income
and
Investment
Transactions.
The Accounts
record
investment
transactions
on
a
trade
date
basis.
Trade
date
for
senior
floating
rate
interests
purchased
in
the
primary
market
is
considered
the
date
on
which
the
loan
allocations
are
determined.
Trade
date
for
senior
floating
rate
interests
purchased
in
the
secondary
market
is
the
date
on
which
the
transaction
is
entered
into.
The
identified
cost
basis
has
been
used
in
determining
the
net
realized
gain
or
loss
from
investment
transactions
and
unrealized
appreciation
or
depreciation
of
investments.
The
Accounts
record
dividend
income
on
the
ex-dividend
date,
except
dividend
income
from
foreign
securities
whereby
the
ex-dividend
date
has
passed;
such
dividends
are
recorded
as
soon
as
the Accounts
are
informed
of
the
ex-dividend
date.
Interest
income
is
recognized
on
an
accrual
basis.
Discounts
and
premiums
on
securities
are
accreted/amortized,
respectively,
on
the
level
yield
method
over
the
expected
lives
of
the
respective
securities.
Callable
debt
securities
purchased
at
a
premium
are
amortized
to
the
earliest
call
date
and
to
the
callable
amount,
if
other
than
par.
The Accounts
allocate
all
income
and
realized
and
unrealized
gains
or
losses
on
a
daily
basis
to
each
class
of
shares
based
upon
the
relative
proportion
of
the
value
of
shares
outstanding
of
each class.
Distributions
from
Real
Estate
Investment
Trusts
("REITs")
may
be
characterized
as
ordinary
income,
capital
gain,
or
a
return
of
capital
to
the
account.
The
proper
characterization
of
REIT
distributions
is
generally
not
known
until
after
the
end
of
each
calendar
year.
As
such,
estimates
are
used
in
reporting
the
character
of
income
and
distributions
for
financial
statement
purposes.
Real
Estate
Securities
Account
receives
substantial
distributions
from
holdings
in
REITs.
Expenses.
Expenses
directly
attributed
to
a
particular account
are
charged
to
that
account.
Other
expenses
not
directly
attributed
to
a
particular account
are
apportioned
among
the
registered
investment
companies
managed
by
the
Manager.
Management
fees
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
the
value
of
shares
outstanding
of
each
class.
Expenses
specifically
attributable
to
a
particular
class
are
charged
directly
to
such
class
and
are
included
separately
in
the
statements
of
operations.
In
addition
to
the
expenses
the Accounts
bear
directly,
each
of
the Accounts
may
indirectly
bear
a
pro
rata
share
of
the
fees
and
expenses
of
the
Underlying
Funds
in
which
they
invest.
Because
the
Underlying
Funds
have
varied
expense
levels
and
each
of
the Accounts
may
own
different
proportions
of
the Underlying
Funds
at
different
times,
the
amount
of
expense
incurred
indirectly
by
each Account
will
vary.
Expenses
included
in
the
statements
of
operations
and
financial
highlights
of
the Accounts do
not
include
any
expenses
associated
with
the
Underlying
Funds.
Dividends
and
Distributions
to
Shareholders.
Dividends
and
distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Dividends
and
distributions
to
shareholders
from
net
investment
income
and
net
realized
gain
from
investments
and
foreign
currency
transactions
are
determined
in
accordance
with
federal
tax
regulations,
which
may
differ
from
U.S.
GAAP.
These
differences
are
primarily
due
to
differing
treatments
for
amortization
of
premiums
and
discounts,
net
operating
losses,
foreign
currency
transactions,
options
and
futures
contracts,
certain
defaulted
securities,
sales
of
passive
foreign
investment
companies,
losses
deferred
due
to
wash
sales,
tax
straddles,
mortgage-backed
securities,
certain
preferred
securities,
swap
agreements,
short
sales,
partnership
investments,
REITs,
utilization
of
earnings
and
profits
distributed
to
shareholders
on
redemption
of
shares,
and
limitations
imposed
by
Sections
381
–
384
of
the
Internal
Revenue
Code.
Permanent
book
and
tax
basis
differences
are
reclassified
within
the
capital
accounts
based
on
federal
tax-basis
treatment;
temporary
differences
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
current
and
accumulated
earnings
and
profits
for
federal
income
tax
purposes,
they
are
reported
as
return
of
capital
distributions.
Federal
Income
Taxes.
No
provision
for
federal
income
taxes
is
considered
necessary
because
each
of
the Accounts
intends
to
qualify
as
a
“regulated
investment
company”
under
the
Internal
Revenue
Code
and
intends
to
distribute
each
year
substantially
all
of
its
net
investment
income
and
realized
capital
gains
to
shareholders.
Management
evaluates
tax
positions
taken
or
expected
to
be
taken
in
the
course
of
preparing
the
Accounts’
tax
returns
to
determine
whether
it
is
“more
likely
than
not”
that
each
tax
position
would
be
sustained
upon
examination
by
a
taxing
authority
based
on
the
technical
merits
of
the
position.
Tax
positions
not
deemed
to
meet
the
"more
likely
than
not"
threshold
would
be
recorded
as
a
tax
benefit
or
expense
in
the
current
year.
During
the year
ended
December
31,
2020,
the Accounts
did
not
record
any
such
tax
benefit
or
expense
in
the
accompanying
financial
statements.
The
statute
of
limitations
remains
open
for
the
last
three
fiscal
years,
once
a
return
is
filed.
No
examinations
are
in
progress
at
this
time.
Indian
Rupee
14.4
South
Korean
Won
13.7
New
Taiwan
Dollar
12.2
Brazilian
Real
6.1
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
81
Foreign
Taxes.
Certain
of
the Accounts
are
subject
to
foreign
income
taxes
imposed
by
certain
countries
in
which
they
invest.
Foreign
income
taxes
are
accrued
by
the Accounts
as
a
reduction
of
income.
These
amounts
are
shown
as
withholding
tax
on
the
statements
of
operations.
In
consideration
of
recent
decisions
rendered
by
European
courts,
certain
of
the Accounts
have
filed
additional
tax
reclaims
for
taxes
withheld
in
prior
years.
Due
to
the
uncertainty
and
timing
of
these
reclaims,
among
other
factors,
a
corresponding
receivable
will
only
be
recognized
when
the
tax
position
meets
the
"more
likely
than
not"
threshold.
Gains
realized
upon
the
disposition
of
certain
foreign
securities
held
by
certain
of
the
Accounts
may
be
subject
to
capital
gains
tax,
payable
prior
to
repatriation
of
sale
proceeds.
The
tax
is
computed
on
certain
net
realized
gains
and,
if
any,
is
shown
on
the
statements
of
operations.
In
certain
countries,
realized
losses
in
excess
of
gains
may
be
carried
forward
to
offset
future
gains.
In
addition,
the
Accounts
accrue
an
estimated
accrued
tax
liability
for
future
gains
on
certain
foreign
securities.
Any
accrued
tax
liability
is
shown
on
the
statements
of
assets
and
liabilities. As
of December
31,
2020,
Diversified
International
Account
and
International
Emerging
Markets
Account
had
an
estimated
accrued
tax
liability
relating
to
foreign
securities
of
$79,000
and
$198,000,
respectively.
Recent
Accounting
Pronouncements.
In
March
2020,
the
Financial
Accounting
Standards
Board
("FASB")
issued
Accounting
Standards
Update
("ASU")
No.
2020-04
Reference
Rate
Reform
(Topic
848);
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting,
which
provides
optional
guidance
for
a
limited
period
of
time
to
ease
the
potential
burden
in
accounting
for
(or
recognizing
the
effects
of)
reference
rate
reform.
The
guidance
is
applicable
to
contracts
referencing
London
Interbank
Offered
Rate
("LIBOR")
or
another
reference
rate
that
is
expected
to
be
discontinued
due
to
reference
rate
reform. The
ASU
is
effective
as
of
March
12,
2020
and
generally
can
be
applied
through
December
31,
2022.
Management
is
evaluating
the
underlying
securities
referencing
LIBOR
or
another
reference
rate
that
is
expected
to
be
discontinued
as
a
reference
rate
over
the
period
of
time
the
ASU
is
effective.
3.
Operating
Policies
Borrowings.
Pursuant
to
an
exemptive
order
issued
by
the
Securities
and
Exchange
Commission
(the
"SEC"),
the
Accounts and
other
registered
investment
companies
managed
by
the
Manager
may
participate
in
an
interfund
lending
facility
(“Facility”).
The
Facility
allows
the Accounts
to
borrow
money
from
or
loan
money
to
the
other
participants.
Loans
under
the
Facility
are
made
to
handle
unusual
and/or
unanticipated
short-term
cash
requirements.
Interest
paid
and
received
on
borrowings
is
the
average
of
the
current
repurchase
agreement
rate
and
the
bank
loan
rate
(the
higher
of
(
i
)
the
Federal
Funds
Rate
or
(ii)
the
LIBOR
rate
plus
1.00%).
The
interest
income
received
is
included
in
interest
income
on
the
statements
of
operations.
The
interest
expense
associated
with
these
borrowings
is
included
in
other
expenses
on
the
statements
of
operations.
There
were
no
outstanding
loans
or borrowings
as
of
December
31,
2020.
During
the year
ended
December
31,
2020, Accounts
lending
to
the
Facility
were
as
follows
(amounts
in
thousands):
During
the year
ended
December
31,
2020, Accounts
borrowing
from
the
Facility
were
as
follows
(amounts
in
thousands):
Average
Daily
Amount
Loaned
Weighted
Average
Annual
Interest
Rate
Bond
Market
Index
Account
$
783
0.74
%
Core
Plus
Bond
Account
25
1.74
Diversified
Balanced
Volatility
Control
Account
5
0.62
Diversified
Growth
Volatility
Control
Account
22
0.62
Diversified
International
Account
8
1.09
Equity
Income
Account
144
0.62
Government
&
High
Quality
Bond
Account
57
0.63
International
Emerging
Markets
Account
2
0.89
LargeCap
Growth
Account
I
5
1.29
LargeCap
S&P
500
Index
Account
265
0.63
LargeCap
S&P
500
Managed
Volatility
Index
Account
48
0.71
MidCap
Account
4
0.62
Principal
Capital
Appreciation
Account
6
1.94
Short-Term
Income
Account
12
0.88
SmallCap
Account
1
2.15
Average
Daily
Outstanding
Balance
Weighted
Average
Annual
Interest
Rate
Core
Plus
Bond
Account
$
—
0.62
%
Diversified
Balanced
Volatility
Control
Account
14
1.83
Diversified
Growth
Volatility
Control
Account
36
0.90
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
82
In
addition,
the
Accounts
(with
the
exception
of
Blue
Chip
Account)
participate
with
other
registered
investment
companies
managed
by
the
Manager
in
an
unsecured
joint
line
of
credit
with
a
bank
which
allows
the
participants
to
borrow
up
to
$100
million,
collectively.
Borrowings
are
made
solely
to
facilitate
the
handling
of
unusual
and/or
unanticipated
short-term
cash
requirements.
Interest
is
charged
to
each
participant,
based
on
its
borrowings,
at
a
rate
equal
to
the
higher
of
the
Federal
Funds
Rate
or
the
One
Month
LIBOR
rate
(or
such
successor
if
no
longer
available)
plus
1.25%
(effective
June
19,
2020
and
thereafter).
From
January
1,
2020
through
June
18,
2020,
interest
was
at
a
rate
equal
to
the
higher
of
the
Federal
Funds
Rate
or
the
LIBOR
rate
(or
such
successor
if
no
longer
available)
plus
1%.
Additionally,
a
commitment
fee
is
charged
at
an
annual
rate
of
.20%
(effective
June
19,
2020
and
thereafter)
on
the
amount
of
the
line
of
credit
which
is
allocated
to
each
participating
fund
based
on
average
net
assets.
From
January
1,
2020
through
June
18,
2020,
the
commitment
fee
was
charged
at
an
annual
rate
of
.15%.
The
interest
expense
associated
with
these
borrowings
is
included
in
other
expenses
on
the
statements
of
operations.
There
were
no
outstanding
borrowings
against
the
line
of
credit
as
of
December
31,
2020.
During
the
year
ended
December
31,
2020,
Accounts
borrowing
from
the
line
of
credit
were
as
follows
(amounts
in
thousands):
Contingent
Convertible
Securities.
As
footnoted
in
the
schedules
of
investments,
certain
of
the
Accounts
invest
in contingent
convertible
securities
(“
CoCos
”).
CoCos
are
hybrid
debt
securities
that
may
convert
into
equity
or
have
their
principal
written
down
upon
the
occurrence
of
certain
“triggers.”
Although
a
contingent
convertible
security’s
equity
conversion
and
principal
write-down
features
are
tailored
to
the
particular
issuing
banking
institution
and
its
regulatory
requirements,
triggers
are
generally
linked
to
regulatory
capital
thresholds
or
regulatory
actions
calling
into
question
such
institution’s
continued
viability
as
a
going-concern.
CoCos
may
have
no
stated
maturity
and
fully
discretionary
coupons,
which
means
coupon
payments
can
be
canceled
at
the
issuing
banking
institution’s
discretion
or
at
the
request
of
the
relevant
regulatory
authority
without
causing
a
default.
To
provide
the
appropriate
regulatory
capital
treatment,
CoCos
are
usually
issued
in
the
form
of
subordinated
debt
instruments
that
rank
junior
to
the
claims
of
holders
of
more
senior
obligations
in
the
event
of
the
issuer’s
liquidation.
If
CoCos
are
converted
into
equity
securities
due
to
a
trigger
event,
holders
will
be
further
subordinated.
The
future
value
of
CoCos
is
unpredictable
and
is
influenced
by
many
factors
including,
without
limitation:
the
creditworthiness
of
the
issuer
and/or
fluctuations
in
such
issuer’s
applicable
capital
ratios;
supply
and
demand
for
CoCos
;
general
market
conditions
and
available
liquidity;
and
economic,
financial
and
political
events
that
affect
the
issuer,
its
particular
market
or
the
financial
markets
in
general.
Due
to
these
features,
CoCos
may
have
substantially
greater
risk
than
other
securities
in
times
of
financial
stress.
Because
of
the
uncertainty
regarding
whether
a
conversion
event
will
occur,
it
may
be
difficult
to
predict
when,
if
at
all,
a
contingent
convertible
security
will
be
converted
to
equity,
and
an
account may
suffer
losses
as
a
result.
If
the
trigger
level
is
breached,
the
issuer’s
decision
to
write
down,
write
off
or
convert
a
contingent
convertible
security
may
result
in
the
account's
complete
loss
on
an
investment
in
CoCos
with
no
chance
of
recovery
even
if
the
issuer
remains
in
existence.
Counterparties.
The
Accounts
may
be
exposed
to
counterparty
risk,
or
the
risk
that
another
party
with
which
the
Accounts
have
unsettled
or
open
transactions
will
fail
to
perform
on
their
commitment.
To
the
extent
that
unpaid
amounts
owed
to
the
Accounts
exceed
a
predetermined
threshold
agreed
to
with
the
counterparty,
as
stated
in
the
counterparties’
master
netting
agreements
(“Master
Netting
Agreements”),
such
counterparty
shall
advance
collateral
to
the
Accounts
in
the
form
of
cash
or
cash
equivalents
equal
in
value
to
the
unpaid
amount
owed
to
the
Accounts.
If
the
unpaid
amount
owed
to
the
Accounts
subsequently
decreases,
the
Accounts
would
be
required
to
return
all
or
a
portion
of
the
collateral.
Average
Daily
Outstanding
Balance
Weighted
Average
Annual
Interest
Rate
Diversified
International
Account
$
31
0.63
%
Equity
Income
Account
9
0.62
Government
&
High
Quality
Bond
Account
7
1.02
International
Emerging
Markets
Account
3
0.62
LargeCap
Growth
Account
I
190
0.64
LargeCap
S&P
500
Index
Account
388
0.85
MidCap
Account
49
1.42
Real
Estate
Securities
Account
32
0.78
SmallCap
Account
15
0.62
Average
Daily
Outstanding
Balance
Weighted
Average
Annual
Interest
Rate
SAM
Balanced
Portfolio
$
10
1
.
44
%
SAM
Conservative
Growth
Portfolio
—
1
.
44
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
83
Master
Netting
Agreements
may
also
help
limit
counterparty
risk
by
specifying
collateral
posting
arrangements
at
pre-arranged
exposure
levels.
Under
the
Master
Netting
Agreements,
collateral
is
routinely
transferred
if
the
total
net
exposure
to
certain
transactions
governed
under
the
relevant
Master
Netting
Agreement
with
a
counterparty
exceeds
a
specified
threshold.
The
financial
instruments
that
are
subject
to
Master
Netting
Agreements
or
similar
agreements
may
include
right
of
setoff
provisions.
Derivative
instruments
include
provisions
to
setoff
positions
covered
under
the
agreements
with
the
same
counterparties
and
provisions
to
setoff
positions
outside
of
the
agreements
with
the
same
counterparties
in
the
event
of
default
by
one
of
the
parties.
Derivative
instruments
are
shown
gross
on
the
statements
of
assets
and
liabilities.
Derivative
instruments
also
include
collateral
provisions.
Collateral
received
and
pledged
are
generally
settled
daily
with
each
counterparty.
As
of
December
31,
2020
,
no
Accounts
had
financial
assets
and
liabilities
subject
to
Master
Netting
Agreements
or
similar
agreements.
Cross
Trades.
The
Accounts
may
engage
in
cross
trades.
A
cross
trade
is
a
purchase
or
sale
transaction
between
affiliated
portfolios
executed
directly
or
through
an
intermediary.
Mutual
funds
and
other
managed
portfolios
may
be
considered
affiliated
if
they
have
a
common
investment
advisor,
so
an
account may
be
considered
affiliated
with
any
portfolio
for
which
the
account's
sub-advisor
acts
as
an
investment
advisor.
Such
transactions
are
permissible
provided
that
the
conditions
of
Rule
17a-7
under
the
Investment
Company
Act
of
1940
are
satisfied.
For
the
year ended December
31,
2020,
none
of
the
Accounts
had
material
cross
trades.
Deposits
with
Counterparty.
Cash
pledged
as
collateral
is
reflected
as
an
asset
on
the
statements
of
assets
and
liabilities
as
deposits
with
counterparty.
There
are
a
variety
of
security
types
which
require
varying
levels
of
pledged
collateral.
Customer
account
agreements
govern
cleared
derivatives
transactions
such
as
futures
contracts
and
certain
swap
agreements.
Such
transactions
require
posting
of
initial
margin
as
determined
by
each
relevant
clearing
agency
which
is
segregated
in
an
account
at
a
futures
commission
merchant
(“FCM”)
registered
with
the
Commodity
Futures
Trading
Commission.
International
Swaps
and
Derivatives
Association
(“ISDA”)
accounts
are
maintained
in
a
segregated
account
at
the
custodian
for
over-the-counter
("OTC")
derivatives.
Master
Securities
Forward
Transaction
Agreements
("MSFTA")
accounts
are
also
maintained
in
a
segregated
account
at
the
custodian
for
collateral
related
to
forward
currency
contracts
and
"to-be-announced"
("TBA")
securities.
Certain
of
the Accounts may
pledge
cash
to
a
broker
for
securities
sold
short.
As
of
December
31,
2020,
deposits
with
counterparty
were
as
follows
(amounts
in
thousands):
Deposits
from
Counterparty.
Cash
received
from
a
counterparty
as
collateral
is
reflected
as
a
liability
on
the
statements
of
assets
and
liabilities
as
deposits
from
counterparty.
There
are
a
variety
of
security
types
which
require
varying
levels
of
pledged
collateral.
The
collateral
posted
to
the Accounts
by
the
broker
is
received
in
the
account’s
custodian
account.
As
of
December
31,
2020,
deposits
from
counterparty
were
as
follows
(amounts
in
thousands):
Foreign
Currency
Contracts.
Certain
of
the
Accounts
may
be
subject
to
foreign
currency
exchange
rate
risk
in
the
normal
course
of
pursuing
such
Accounts’
investment
objectives.
The
Accounts
may
use
foreign
currency
contracts
to
gain
exposure
to,
or
hedge
against
changes
in
the
value
of
foreign
currencies.
Certain
of
the
Accounts
enter
into
forward
contracts
to
purchase
and
sell
foreign
currencies
at
a
specified
future
date
at
a
fixed
exchange
rate.
Forward
foreign
currency
contracts
are
valued
at
the
forward
rate,
and
are
marked-to-market
daily.
The
change
in
fair
value
is
recorded
by
the
Accounts
as
an
unrealized
gain
or
loss.
When
the
contract
is
closed,
the
Accounts
record
a
realized
gain
or
loss
equal
to
the
difference
between
the
value
of
the
contract
at
the
time
it
was
opened
and
the
value
at
the
time
it
was
closed.
The
use
of
forward
foreign
currency
contracts
does
not
eliminate
the
fluctuations
in
underlying
prices
of
the
Accounts’
portfolio
securities,
but
it
does
establish
a
rate
of
exchange
that
can
be
achieved
in
the
future.
Although
forward
foreign
currency
contracts
limit
the
risk
of
loss
due
to
a
decline
in
the
value
of
the
hedged
currency,
they
also
limit
any
potential
gain
that
might
result
should
the
value
of
the
currency
FCM
(Futures
and
Cleared
Swaps)
ISDA
(OTC
Derivatives)
MSFTA
(Forward
Currency
Contracts
and
TBA
Securities)
Total
Deposits
with
Counterparty
Core
Plus
Bond
Account
$
—
$
1
$
8
$
9
Government
&
High
Quality
Bond
Account
179
—
—
179
LargeCap
Growth
Account
I
132
—
—
132
Short-Term
Income
Account
2
—
—
2
MSFTA
(Forward
Currency
Contracts
and
TBA
Securities)
Bond
Market
Index
Account
$
353
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
84
increase.
In
addition,
the
Accounts
could
be
exposed
to
risks
if
the
counterparties
to
the
contracts
are
unable
to
meet
the
terms
of
their
contracts
or
if
the
value
of
the
currency
changes
unfavorably
to
the
U.S.
dollar
or
other
respective
currency.
Futures
Contracts.
The Accounts
are
subject
to
equity
price
risk,
interest
rate
risk,
and
foreign
currency
exchange
rate
risk
in
the
normal
course
of
pursuing
their
investment
objectives.
The Accounts
(with
the
exception
of
Diversified
Balanced
Account,
Diversified
Balanced
Managed
Volatility
Account, Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Income
Account,
Principal
LifeTime
Accounts,
and
SAM
Portfolios)
may
enter
into
futures
contracts
to
hedge
against
changes
in
or
to
gain
exposure
to,
change
in
the
value
of
equities,
interest
rates
and
foreign
currencies.
Initial
margin
deposits
are
made
by
cash
deposits
or
segregation
of
specific
securities
as
may
be
required
by
the
exchange
on
which
the
transaction
was
conducted.
Pursuant
to
the
contracts,
typically an
account agrees
to
receive
from
or
pay
to
the
broker,
an
amount
of
cash
equal
to
the
daily
fluctuation
in
the
value
of
the
contract.
Such
receipts
or
payments
are
known
as
“variation
margin”
and
are
recorded
by
the account
as
a
variation
margin
receivable
or
payable
on
financial
derivative
instruments.
For
those
contracts
where
daily
variation
margin
payments
are
not
received
from
or
paid
to
the
broker,
the
cumulative
unrealized
gains
or
losses
are
included
in
variation
margin
receivable
or
payable
on
financial
derivative
instruments.
Futures
contracts
are
marked
to
market
daily
at
the
closing
settlement
price
or
in
the
absence
of
such
a
price,
the
most
recent
quoted
bid
price.
If
there
are
no
quotations
available,
the
security
is
valued
at
the
last
available
closing
settlement
price.
During
the
period
the
futures
contracts
are
open,
daily
changes
in
the
fair
value
of
the
contracts
are
recognized
as
unrealized
gains
or
losses.
These
unrealized
gains
or
losses
are
included
as
a
component
of
total
distributable
earnings
(accumulated
loss)
on
the
statements
of
assets
and
liabilities.
When
the
contracts
are
closed,
the account
recognizes
a
realized
gain
or
loss
equal
to
the
difference
between
the
proceeds
from,
or
cost
of,
the
closing
transaction
and
the
account’s
cost
basis
in
the
contract.
There
is
minimal
counterparty
credit
risk
to
the Accounts
because
futures
are
exchange
traded
and
the
exchange’s
clearinghouse,
as
counterparty
to
all
exchange
traded
futures,
guarantees
the
futures
against
default.
Long
equity
futures
contracts
are
used
to
obtain
market
exposure
for
the
cash
balances
that
are
maintained
by
certain
of
the
Accounts
and
the
notional
values
of
the
futures
contracts
will
vary
in
accordance
with
changing
cash
balances.
Long
and
short
U.S.
Treasury
futures
contracts
are
used
to
obtain
interest
rate
exposure
in
order
to
manage
duration
of
Core
Plus
Bond
Account
and
Government
&
High
Quality
Bond
Account.
The
notional
values
of
the
futures
contracts
will
vary
in
accordance
with the
changing
duration
of
these
accounts.
Illiquid
Securities.
Illiquid
securities
generally
cannot
be
sold
or
disposed
of
in
the
ordinary
course
of
business
(within
seven
calendar
days)
at
approximately
the
value
at
which
each
of
the Accounts
has
valued
the
investments.
This
may
have
an
adverse
effect
on
each
of
the
Accounts'
ability
to
dispose
of
particular
illiquid
securities
at
fair
value
and
may
limit
each
of
the
Accounts’
ability
to
obtain
accurate
market
quotations
for
purposes
of
valuing
the
securities.
Indemnification.
Under
the
Fund’s
by-laws,
present
and
past
officers,
directors,
and
employees
are
indemnified
against
certain
liabilities
arising
out
of
the
performance
of
their
duties.
In
addition,
in
the
normal
course
of
business,
the
Fund
may
enter
into
a
variety
of
contracts
that
may
contain
representations
and
warranties
which
provide
general
indemnifications.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund.
Inflation-Indexed
Bonds.
Certain
of
the
Accounts
may
invest
in
inflation-indexed
bonds.
Inflation-indexed
bonds
are
fixed-income
securities
whose
principal
value
is
periodically
adjusted
to
the
rate
of
inflation.
The
interest
rate
on
these
bonds
is
generally
fixed
at
issuance
at
a
rate
lower
than
typical
bonds.
Over
the
life
of
an
inflation-indexed
bond,
however,
interest
will
be
paid
based
on
a
principal
value,
which
is
adjusted
for
inflation.
Any
increase
or
decrease
in
the
principal
amount
of
an
inflation-indexed
bond
will
be
included
as
interest
income
on
the
statements
of
operations,
even
though
the
Accounts
would
not
receive
the
principal
until
maturity.
Mortgage
Dollar
Rolls.
Certain
of
the
Accounts
have
entered
into
mortgage-dollar-roll
transactions
on TBA
securities,
in
which
the
Accounts
sell
mortgage-backed
securities
and
simultaneously
agree
to
purchase
similar
securities
in
the
future
at
a
predetermined
price.
The
proceeds
of
the
securities
sold
in
mortgage-dollar-roll
transactions
are
invested
in
additional
securities.
The
Accounts
forgo
principal
and
interest
paid
on
the
securities
and
are
compensated
by
interest
earned
on
the
proceeds
of
the
initial
sale
and
by
a
lower
price
on
the
securities
to
be
repurchased.
The
Accounts
treat
mortgage-dollar-roll
transactions
as
purchases
and
sales;
as
such,
these
transactions
may
increase
the
Accounts’
portfolio
turnover
ratio.
Amounts
to
be
received
or
paid
in
connection
with
open
mortgage-dollar-rolls
are
included
in
investment
securities
sold
and
investment
securities
purchased
on
the
statements
of
assets
and
liabilities.
Options
Contracts.
During
the
year
ended
December
31,
2020
,
LargeCap
S&P
500
Managed
Volatility
Index
Account
wrote
call
and
put
options
on indices
it owns
or
in
which it
may
invest
for
both
hedging
and
non-hedging
purposes.
Writing
put
options
tends
to
increase
an
account’s
exposure
to
the
underlying
instrument.
Writing
call
options
tends
to
decrease
an
account’s
exposure
to
the
underlying
instrument.
When
an
account
writes
a
call
or
put
option,
an
amount
equal
to
the
premium
received
is
recorded
as
a
liability
and
subsequently
marked
to
market
to
reflect
the
current
value
of
the
option
written.
These
liabilities
are
reflected
as
options
contracts
written
on
the
statements
of
assets
and
liabilities.
Premiums
received
from
writing
options
which
expire
are
treated
as
realized
gains.
Premiums
received
from
writing
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
85
options
which
are
exercised
or
closed
are
added
to
the
proceeds
or
offset
against
amounts
paid
on
the
underlying index
to
determine
the
realized
gain
or
loss.
An
account,
as
a
writer
of
an
option,
has
no
control
over
whether
the
underlying
index
may
be
sold
(call)
or
purchased
(put)
and
as
a
result
bears
the
market
risk
of
an
unfavorable
change
in
the
price
of
the
index
underlying
the
written
option.
There
is
the
risk an
account may
not
be
able
to
enter
into
a
closing
transaction
because
of
an
illiquid
market.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
an
account as
a
writer
of
put
options
could
be
required
to
make
is
equal
to
the
notional
amount
multiplied
by
the
exercise
price
as
shown
in
the
schedule
of
investments. An
account may
also
purchase
put
and
call
options.
Purchasing
call
options
tends
to
increase an
account's
exposure
to
the
underlying
instrument.
Purchasing
put
options
tends
to
decrease an
account's
exposure
to
the
underlying
instrument.
An
account pays
a
premium
which
is
included
on
the account's
statements
of
assets
and
liabilities
as
an
investment
and
subsequently
marked
to
market
to
reflect
the
current
value
of
the
option.
Premiums
paid
for
purchasing
options
which
expire
are
treated
as
realized
losses.
The
risk
associated
with
purchasing
put
and
call
options
is
limited
to
the
premium
paid.
Premiums
paid
for
purchasing
options
which
are
exercised
or
closed
are
added
to
the
amounts
paid
or
offset
against
the
proceeds
on
the
underlying
index
transaction
to
determine
the
realized
gain
or
loss.
Details
of
options
contracts
open
at
year
end
are
included
in
the
Accounts'
schedules
of
investments.
Private
Investments
in
Public
Equity.
The
Accounts
may
invest
in
private
investments
in
public
equity
(“PIPE”)
which
are
issued
by
a
company
in
the
secondary
market
as
a
means
of
raising
capital.
In
connection
with
PIPE
investments,
the
Accounts
may
enter
into
unfunded
commitments.
Commitments
may
be
subject
to
various
contingencies
and
are
recognized
as
a
financial
instrument
when
the
commitment
is
legally
binding.
These
contingencies
are
considered
in
the
valuation
of
the
commitments.
The
Accounts
are
obligated
to
fund
these
commitments
when
the
contingencies
are
met
and
therefore,
the
Accounts
must
have
funds
sufficient
to
cover
its
obligation.
Commitments
are
marked
to
market
daily
and
the
unrealized
gain
or
loss
is
shown
as
a
separate
line
item
called
unrealized
gain
or
loss
on
unfunded
commitments
on
the
statements
of
assets
and
liabilities
and
included
in
the
net
change
in
unrealized
appreciation/(depreciation)
of
investments
on
the
statements
of
operations,
as
applicable.
As
of
year
end,
the
commitments
are
categorized
as
Level
2
within
the
disclosure
hierarchy.
As
of
December
31,
2020,
the
Accounts
had
unfunded
commitments
in
connection
with
PIPE
investments
as
follows
(amounts
in
thousands):
Rebates.
Subject
to
best
execution,
the Accounts
may
direct
certain
portfolio
transactions
to
brokerage
firms
that,
in
turn,
have
agreed
to
rebate
a
portion
of
the
related
brokerage
commission
to
the
Accounts
in
cash.
Commission
rebates
are
included
as
a
component
of
realized
gain
from
investment
transactions
in
the
statements
of
operations.
Repurchase
Agreements.
The
Accounts
may
invest
in
repurchase
agreements
that
are
fully
collateralized,
typically
by
U.S.
government
or
U.S.
government
agency
securities.
It
is
the Fund's
policy
that
the
counterparties’
custodian
takes
possession
of
the
underlying
collateral
securities.
The
fair
value
of
the
collateral
is
at
all
times
at
least
equal
to
the
total
amount
of
the
repurchase
obligation.
In
the
event
of
default
on
the
obligation
to
repurchase,
the
Accounts
have
the
right
to
liquidate
the
collateral
and
apply
the
proceeds
in
satisfaction
of
the
obligation.
In
the
event
the
seller
of
a
repurchase
agreement
defaults,
the
Accounts
could
experience
delays
in
the
realization
of
the
collateral.
Restricted
Securities.
Certain
of
the
Accounts
may
invest
in
securities
that
are
subject
to
legal
or
contractual
restrictions
on
resale.
These
securities
generally
may
be
resold
in
transactions
exempt
from
registration
or
to
the
public
if
the
securities
are
registered.
Disposal
of
these
securities
may
involve
time-consuming
negotiations
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
Securities
Lending.
To
earn
additional
income,
certain
of
the
Accounts
may
lend
portfolio
securities
to
approved
brokerage
firms.
The
Accounts
receive
collateral,
in
the
form
of
cash,
against
the
loaned
securities.
During
the
period
of
the
loan,
the
borrower
must
maintain
collateral
in
an
amount
not
less
than
102%
of
the
market
value
of
the
domestic
and
foreign
fixed
income
loaned
securities
and
105%
of
the
market
value
of
the
foreign
equity
loaned
securities. The
market
value
of
the
loaned
securities
is
determined
at
the
close
of
business
of
the
Accounts
and
any
additional
required
collateral
is
delivered
to
the
Accounts
on
the
next
business
day.
The
cash
collateral
received
is
usually
invested
in
a
SEC-registered
money
market
mutual
fund
and
the
Accounts
could
realize
a
loss
on
such
investments.
Further,
the
Accounts
could
experience
a
delay
in
recovering
its
securities
and
possible
loss
of
income
or
value
if
the
borrower
fails
to
return
them.
Security
lending
income,
net
of
related
fees, is
shown
on
the
statements
of
operations.
As
of
December
31,
2020,
the
Accounts
had
securities
on
loan
as
follows
(amounts
in
thousands):
Unfunded
Commitment
Unrealized
Gain/(Loss)
SmallCap
Account
$
850
$
111
Market
Value
Collateral
Value
Bond
Market
Index
Account
$
4,781
$
4,906
Core
Plus
Bond
Account
401
412
Diversified
International
Account
2,103
2,220
Equity
Income
Account
2,723
2,788
LargeCap
Growth
Account
I
285
290
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
86
Senior
Floating
Rate
Interests.
The
Accounts
may
invest
in
senior
floating
rate
interests
(bank
loans).
Senior
floating
rate
interests
typically
hold
the
most
senior
position
in
the
capital
structure
of
a
business
entity
(the
“Borrower”),
are
secured
by
specific
collateral
and
have
a
claim
on
the
assets
and/or
stock
of
the
Borrower
that
is
senior
to
that
held
by
subordinated
debtholders
and
stockholders
of
the
Borrower.
Senior
floating
rate
interests
are
typically
structured
and
administered
by
a
financial
institution
that
acts
as
the
agent
of
the
lenders
participating
in
the
senior
floating
rate
interest.
Borrowers
of
senior
floating
rate
interests
are
typically
rated
below-investment-grade,
which
means
they
are
more
likely
to
default
than
investment-grade
loans.
A
default
could
lead
to
non-payment
of
income
which
would
result
in
a
reduction
of
income
to
the
account
and
there
can
be
no
assurance
that
the
liquidation
of
any
collateral
would
satisfy
the
Borrower’s
obligation
in
the
event
of
non-payment
of
scheduled
interest
or
principal
payments,
or
that
such
collateral
could
be
readily
liquidated.
Senior
floating
rate
interests
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
LIBOR
rate.
Senior
floating
rate
interests
generally
are
subject
to
mandatory
and/or
optional
prepayment.
Because
of
these
mandatory
prepayment
conditions
and
because
there
may
be
significant
economic
incentives
for
the
Borrower
to
repay,
prepayments
of
senior
floating
rate
interests
may
occur.
As
a
result,
the
actual
remaining
maturity
of
senior
floating
rate
interests
may
be
substantially
less
than
stated
maturities
shown
in
the
schedules
of
investments.
In
connection
with
the
senior
floating
rate
interests,
the
Accounts
may
also
enter
into
unfunded
loan
commitments.
All
or
a
portion
of
the
loan
commitments
may
be
unfunded.
The
Accounts
are
obligated
to
fund
these
loan
commitments
at
the
Borrower’s
discretion.
Therefore,
the
Accounts
must
have
funds
sufficient
to
cover
its
contractual
obligation.
Unfunded
loan
commitments
are
marked
to
market
daily
and
the
unrealized
gain
or
loss
is
shown
as
a
separate
line
item
called
unrealized
gain
or
loss
on
unfunded
commitments
on
the
statements
of
assets
and
liabilities
and
included
in
the
net
change
in
unrealized
appreciation/(depreciation)
of
investments
on
the
statements
of
operations,
as
applicable.
As
of
year
end,
the
unfunded
loan
commitments
are
categorized
as
Level
2
within
the
disclosure
hierarchy.
As
of
December
31,
2020
there
are
no
unfunded
loan
commitments.
Short
Sales.
Certain
of
the
Accounts
may
enter
into
short
sales
transactions.
A
short
sale
is
a
transaction
in
which
an
account
sells
a
security
it
does
not
own
as
a
hedge
against
some
of
its
long
positions
and/or
in
anticipation
of
a
decline
in
the
market
price
of
the
security.
The
account
must
borrow
the
security
sold
short
and
deliver
it
to
the
broker
dealer
which
made
the
short
sale.
A
security
sold
in
a
short
sale
transaction
and
the
interest
or
dividend
payable
on
the
security
if
any,
is
reflected
as
a
liability
on
the
statements
of
assets
and
liabilities.
The
account
is
obligated
to
pay
any
interest
or
dividends
received
on
the
borrowed
securities.
Interest
accrued
and
dividends
declared
on
short
positions
are
recorded
as
an
expense
and,
if
any,
appear
as
dividends
and
interest
on
shorts
on
the
statements
of
operations.
An
account
is
obligated
to
deliver
the
security
at
the
market
price
at
the
time
the
short
position
is
closed.
Possible
losses
from
short
sales
may
be
unlimited.
The
account
is
required
to
pledge
cash
or
securities
to
the
broker
as
collateral
for
securities
sold
short.
Collateral
requirements
are
calculated
daily
based
on
the
current
market
value
of
the
short
positions.
Cash
deposited
with
the
broker
for
collateral
is
included
in
deposits
with
counterparty
on
the
statements
of
assets
and
liabilities
and
securities
segregated
as
collateral
are
footnoted
in
the
schedules
of
investments.
The
account
may
pay
broker’s
fees
on
the
borrowed
securities
and
may
also
pay
a
financing
charge
for
the
difference
in
the
market
value
of
the
short
position
and
cash
collateral
deposited
with
the
broker.
These
fees
are
included
as
short
sale
fees
on
the
statements
of
operations.
No
Accounts
entered
in
short
sales
transactions
during
the
year
ended
December
31,
2020.
Swap
Agreements.
Core
Plus
Bond Account
entered
into
swap
agreements
during
the
period.
Swap
agreements
are
negotiated
agreements
between
an
account and
a
counterparty
to
exchange
a
series
of
cash
flows
at
specified
intervals
based
upon,
or
calculated
by
reference
to,
changes
in
specified
prices
or
rates
for
a
specified
amount
of
an
underlying
asset.
An
account
may
enter
into
credit
default,
interest
rate,
or
total
return
swap
agreements
to
manage
its
exposure
to
credit,
interest
rate,
or
market
risk.
In
connection
with
these
agreements,
securities
may
be
identified
as
collateral
in
accordance
with
the
terms
of
the
respective
swap
agreements
to
provide
assets
of
value
and
recourse
in
the
event
of
default
or
bankruptcy/insolvency.
Swap
agreements
are
valued
through
a
pricing
service
or
using
procedures
established
and
periodically
reviewed
by
the
Fund’s
Board
of
Directors.
Centrally
cleared
swaps
are
valued
using
the
last
traded
price
from
the
primary
trading
exchange.
OTC
swaps
are
modeled
taking
into
account
the
counterparties’
creditworthiness
and
using
a
series
of
techniques,
including
simulation
models.
Changes
in
value
are
Market
Value
Collateral
Value
LargeCap
S&P
500
Index
Account
$
377
$
394
LargeCap
S&P
500
Managed
Volatility
Index
Account
66
69
Short-Term
Income
Account
350
360
SmallCap
Account
4,360
4,495
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
87
recorded
as
unrealized
gain
or
loss
which
is
included
as
a
component
of
total
distributable
earnings
(accumulated
loss)
on the
statements
of
assets
and
liabilities.
Upon
termination
of
swap
agreements,
the Accounts
recognize
a
realized
gain
or
loss.
Net
periodic
payments
to
be
received
or
paid
are
accrued
daily
and
are
recorded
in
the
statements
of
operations
as
realized
gains
or
losses.
Payments
received
or
made
at
the
beginning
of
the
measurement
period
are
reflected
as
such
on
the
statements
of
assets
and
liabilities
and
represent
payments
made
or
received
upon
entering
into
the
swap
agreement
to
compensate
for
differences
between
the
stated
terms
of
the
swap
agreement
and
prevailing
market
conditions
(credit
spreads,
interest
rates,
and
other
relevant
factors).
These
upfront
payments
are
amortized
daily
over
the
term
of
the
swap
agreement
as
realized
gains
or
losses
on
the
statements
of
operations.
Notional
principal
amounts
are
used
to
express
the
extent
of
involvement
in
these
agreements.
Risks
may
exceed
amounts
shown
on
the
statements
of
assets
and
liabilities.
These
risks
include
changes
in
the
returns
of
the
underlying
instruments,
unfavorable
interest
rate
fluctuation,
that
the
counterparty
to
the
agreements
may
default
on
its
obligation
to
perform
or
disagree
as
to
the
meaning
of
contractual
terms
in
the
agreements,
and
the
possible
lack
of
liquidity
with
respect
to
the
swap
agreements.
The Accounts
and
any
counterparty
are
required
to
maintain
an
agreement
that
requires
the Accounts
and
that
counterparty
to
monitor
the
net
fair
value
of
all
derivative
transactions
entered
into
pursuant
to
the
contract
between
the Accounts
and
such
counterparty.
If
the
net
fair
value
of
such
derivatives
transactions
between
the Accounts
and
that
counterparty
exceeds
a
certain
threshold
(as
defined
in
the
agreement),
the Accounts
or
the
counterparty
are
required
to
post
cash
and/or
securities
as
collateral.
Fair
values
of
derivatives
transactions
presented
in
the
financial
statements
are
not
netted
with
the
fair
values
of
other
derivatives
transactions
or
with
any
collateral
amounts
posted
by
the Accounts
or
any
counterparty.
Credit
default
swaps
involve
commitments
to
pay
a
fixed
rate
at
a
predetermined
frequency
in
exchange
for
a
lump
sum
payment
if
a
“credit
event”,
as
defined
in
the
agreement,
affecting
a
third
party
occurs.
Credit
events
may
include
a
failure
to
pay
interest,
bankruptcy,
restructuring,
or
other
event
as
defined
in
the
agreement.
A
“buyer”
of
credit
protection
agrees
to
pay
a
counterparty
to
assume
the
credit
risk
of
an
issuer
upon
the
occurrence
of
a
credit
event.
The
“seller”
of
the
protection
receives
periodic
payments
and
agrees
to
assume
the
credit
risk
of
an
issuer
upon
the
occurrence
of
a
credit
event.
As
the
seller
of
credit
protection, an
account would
add
leverage
to
its
portfolio
because,
in
addition
to
its
total
net
assets,
an
account would
be
subject
to
investment
exposure
on
the
notional
amount
of
the
swap.
If an
account
is
a
seller
of
protection
and
a
credit
event
occurs,
as
defined
under
the
terms
of
that
particular
swap
agreement,
the account
will
either
(i)
pay
to
the
buyer
of
protection
an
amount
equal
to
the
notional
amount
of
the
swap
and
take
delivery
of
the
referenced
obligation,
other
deliverable
obligations
or
underlying
securities
comprising
the
referenced
index
or
(ii)
pay
a
net
settlement
amount
in
the
form
of
cash
or
securities
equal
to
the
notional
amount
of
the
swap
less
the
recovery
value
of
the
referenced
obligation
or
underlying
securities
comprising
the
referenced
index.
If an
account
is
a
buyer
of
protection
and
a
credit
event
occurs,
as
defined
under
the
terms
of
that
particular
swap
agreement,
an
account will
either
(i)
receive
from
the
seller
of
protection
an
amount
equal
to
the
notional
amount
of
the
swap
and
deliver
the
referenced
obligation,
other
deliverable
obligations
or
underlying
securities
comprising
the
referenced
index
or
(ii)
receive
a
net
settlement
amount
in
the
form
of
cash
or
securities
equal
to
the
notional
amount
of
the
swap
less
the
recovery
value
of
the
referenced
obligation
or
underlying
securities
comprising
the
referenced
index.
Credit
default
swap
agreements
on
credit
indices
involve
one
party
making
a
stream
of
payments
to
another
party
in
exchange
for
the
right
to
receive
a
specified
return
in
the
event
of
a
write-down,
principal
shortfall,
interest
shortfall
or
default
of
all
or
part
of
the
referenced
entities
comprising
the
credit
index.
A
credit
index
is
a
basket
of
credit
instruments
or
exposures
designed
to
be
representative
of
some
part
of
the
credit
market
as
a
whole.
These
indices
are
made
up
of
reference
credits
that
are
judged
by
a
poll
of
dealers
to
be
the
most
liquid
entities
in
the
credit
default
swap
market
based
on
the
sector
of
the
index.
Components
of
the
indices
may
include,
but
are
not
limited
to,
investment
grade
securities,
high
yield
securities,
asset
backed
securities,
emerging
markets,
and/or
various
credit
ratings
within
each
sector.
Credit
indices
are
traded
using
credit
default
swaps
with
standardized
terms
including
a
fixed
spread
and
standard
maturity
dates.
An
index
credit
default
swap
references
all
the
names
in
the
index,
and
if
there
is
a
default,
the
credit
event
is
settled
based
on
that
name’s
weight
in
the
index.
The
composition
of
the
indices
changes
periodically,
usually
every
six
months,
and
for
most
indices,
each
name
has
an
equal
weight
in
the
index.
An
account
may
use
credit
default
swaps
on
credit
indices
to
hedge
a
portfolio
of
credit
default
swaps
or
bonds,
which
is
less
expensive
than
it
would
be
to
buy
many
credit
default
swaps
to
achieve
a
similar
effect.
Credit
default
swaps
on
indices
are
benchmarks
for
protecting
investors
owning
bonds
against
default,
and
traders
use
them
to
speculate
on
changes
in
credit
quality.
For
credit
default
swap
agreements
on
asset-backed
securities
and
credit
indices,
the
quoted
market
prices
and
resulting
values
serve
as
the
indicator
of
the
current
status
of
the
payment/performance
risk.
Wider
credit
spreads
and
increasing
values,
in
absolute
terms
when
compared
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
88
to
the
notional
amount
of
the
swap,
represent
a
deterioration
of
the
referenced
entity’s
credit
soundness
and
a
greater
likelihood
or
risk
of
default
or
other
credit
event
occurring
as
defined
under
the
terms
of
the
agreement.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
an
account
as
a
seller
of
protection
could
be
required
to
make
under
a
credit
default
swap
agreement
would
be
an
amount
equal
to
the
notional
amount
of
the
agreement.
Notional
amounts
of
all
credit
default
swap
agreements
outstanding
as
of December
31,
2020
for
which an
account
is
the
seller
of
protection
are
disclosed
in
the
footnotes
to
the
schedules
of
investments.
These
potential
amounts
would
be
partially
offset
by
any
recovery
values
of
the
respective
referenced
obligations,
upfront
payments
received
upon
entering
into
the
agreement,
or
net
amounts
received
from
the
settlement
of
buy
protection
credit
default
swap
agreements
entered
into
by an
account
for
the
same
referenced
entity
or
entities.
Interest
rate
swaps
involve
the
commitment
to
exchange
fixed
or
floating
rate
cash
flows
based
on
changes
in
the
value
of
a
specific
reference
rate.
Certain
collateral
amounts
relate
to
exchange
cleared
swaps
which
are
not
subject
to
Master
Netting
Agreements
with
counterparties.
To
Be
Announced
Securities.
The Accounts
may
trade
portfolio
securities
on
a
TBA
or
when-issued
basis.
In
a
TBA
or
when-issued
transaction,
the Accounts
commit
to
purchase
or
sell
securities
for
which
all
specific
information
is
not
known
at
the
time
of
the
trade.
Securities
purchased
on
a
TBA
or
when-issued
basis
are
not
settled
until
they
are
delivered
to
the
Accounts,
normally
15
to
30
days
later.
These
transactions
are
subject
to
market
fluctuations
and
their
current
value
is
determined
in
the
same
manner
as
for
other
portfolio
securities.
Underlying
Funds.
The
performance
and
risks
of
each
of
the
Principal
LifeTime
Accounts,
each
of
the
SAM
Portfolios,
Diversified
Balanced
Account,
Diversified
Balanced
Volatility
Control
Account,
Diversified
Balanced
Managed
Volatility
Account,
Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Growth
Volatility
Control
Account,
and
Diversified
Income
Account
(singly,
“a
fund
of
funds”
and
collectively,
“the
funds
of
funds”)
directly
corresponds
to
the
performance
and
risks
of
the
Underlying
Funds
in
which
the
fund
of
funds
invest.
By
investing
in
many
Underlying
Funds,
the
funds
of
funds
have
partial
exposure
to
the
risks
of
many
different
areas
of
the
market.
The
more
a
fund
of
funds
allocates
to
stock
funds,
the
greater
the
expected
risk.
An
Underlying
Fund
to
a
fund
of
funds
may
experience
relatively
large
redemptions
or
purchases
as
the
fund
of
funds
periodically
reallocates
or
rebalances
its
assets.
These
transactions
may
accelerate
the
realization
of
taxable
income
if
sales
of
portfolio
securities
result
in
gains
and
could
increase
transaction
costs.
In
addition,
when
a
fund
of
funds
reallocates
or
redeems
significant
assets
away
from
an
Underlying
Fund,
the
loss
of
assets
to
the
Underlying
Fund
could
result
in
increased
expense
ratios
for
that
fund.
The
Manager
is
the
advisor
to
the
Fund,
Principal
Funds,
Inc.,
and
Principal
Exchange-Traded
Funds.
The
Manager
is
committed
to
minimizing
the
potential
impact
of
Underlying
Fund
risk
on
Affiliated
Underlying
Funds
to
the
extent
consistent
with
pursuing
the
investment
objectives
of
the
fund
of
funds
which
it
manages.
Each
may
face
conflicts
of
interest
in
fulfilling
its
responsibilities
to
all
such
funds.
Shareholder
reports
for
the
Affiliated
Underlying
Funds
can
be
found
at
www.principalfunds.com.
As
of
December
31,
2020,
series
of
the
Fund
owned
the
following
percentages,
in
aggregate,
of
the
outstanding
shares
of
the
Affiliated
Underlying
Funds
listed
below:
U.S.
Government
Agencies
or
Government-Sponsored
Enterprises.
Certain
of
the Accounts
may
invest
in
U.S.
Government
agencies
or
government-sponsored
enterprises.
U.S.
Government
securities
are
obligations
of,
and
in
certain
cases,
guaranteed
by,
the
U.S.
Government
or
its
agencies.
The
U.S.
Government
does
not
guarantee
the
net
asset
value
of
the Accounts'
shares.
Some
U.S.
Government
securities
such
as
treasury
bills,
notes
and
bonds,
and
securities
guaranteed
by
the
Government
National
Mortgage
Association
(“GNMA”)
are
supported
by
the
full
faith
and
credit
of
the
U.S.
Government.
Other
securities,
such
as
those
of
the
Federal
Home
Loan
Bank,
are
supported
by
the
right
of
the
issuer
to
borrow
from
the
U.S.
Department
of
the
Treasury.
Still
other
securities,
such
as
those
of
the
Federal
National
Mortgage
Association
(“FNMA”),
are
supported
by
the
discretionary
authority
of
the
U.S.
Government
to
purchase
the
agency’s
obligations.
Total
Percentage
of
Outstanding
Shares
Owned
Bond
Market
Index
Account
98.85%
Equity
Income
Account
35.98
Government
&
High
Quality
Bond
Account
36.35
LargeCap
S&P
500
Index
Account
83.91
LargeCap
S&P
500
Managed
Volatility
Index
Account
100.00
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
89
Government
related
guarantors
(those
not
backed
by
the
full
faith
and
credit
of
the U.S.
Government)
include
the FNMA
and
the
Federal
Home
Loan
Mortgage
Corporation
(“FHLMC”).
The
FNMA
is
a
government
sponsored
corporation,
the
common
stock
of
which
is
owned
entirely
by
private
stockholders.
The
FNMA
purchases
conventional
residential
mortgages
from
a
list
of
approved
seller/servicers
which
include
state
and
federally
chartered
savings
and
loan
associations,
mutual
savings
banks,
commercial
banks,
credit
unions,
and
mortgage
bankers.
Pass-through
securities
issued
by
the
FNMA
are
guaranteed
as
to
the
timely
payment
of
principal
and
interest
by
the
FNMA,
but
are
not
backed
by
the
full
faith
and
credit
of
the
U.S.
Government.
The
FHLMC
issues
participation
certificates,
which
are
pass-through
securities,
each
representing
an
undivided
interest
in
a
pool
of
residential
mortgages.
The
FHLMC
guarantees
the
timely
payment
of
interest
and
ultimate
collection
of
principal,
but
participation
certificates
are
not
backed
by
the
full
faith
and
credit
of
the
U.S.
Government.
Derivatives.
The
following
tables
provide
information
about
where
in
the
statements
of
assets
and
liabilities
and
statements
of
operations
information
about
derivatives
can
be
found
(amounts
in
thousands):
Asset
Derivatives
December
31,
2020
Liability
Derivatives
December
31,
2020
Derivatives
not
accounted
for
as
hedging
instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Core
Plus
Bond
Account
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
2
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
1
*
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
18
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
LargeCap
Growth
Account
I
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
12
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
LargeCap
S&P
500
Index
Account
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
1,000
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
LargeCap
S&P
500
Managed
Volatility
Index
Account
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
601
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
316
*
Includes
cumulative
unrealized
appreciation/depreciation
of
futures
contracts
as
shown
in
the
schedules
of
investments.
Only
the
portion
of
the
unrealized
appreciation/
depreciation
not
yet
cash
settled
is
shown
in
the
statements
of
assets
and
liabilities
as
variation
margin.
Derivatives
not
accounted
for
as
hedging
instruments
Location
of
Gain
or
(Loss)
on
Derivatives
Recognized
in
Statement
of
Operations
Net
Realized
Gain
or
(Loss)
on
Derivatives
Recognized
in
Statement
of
Operations
Net
Change
in
Unrealized
Appreciation/
(Depreciation)
of
Derivatives
Recognized
in
Statement
of Operations
Core
Plus
Bond
Account
Credit
contracts
Net
realized
gain
(loss)
from
Swap
agreements
$
1,807
$
—
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
561
$
63
Total
$
2,368
$
63
Diversified
Balanced
Volatility
Control
Account
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts
$
(1,774)
$
—
Diversified
Growth
Volatility
Control
Account
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts
$
(16,352)
$
—
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
(792)
$
(167)
LargeCap
Growth
Account
I
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
1,068
$
1
LargeCap
S&P
500
Index
Account
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
16,461
$
387
LargeCap
S&P
500
Managed
Volatility
Index
Account
Equity
contracts
Net
realized
gain
(loss)
from
Investment
transactions,
Futures
contracts,
and
Options
and
swaptions
/Net
change
in
unrealized
appreciation/
(depreciation)
of
Investments,
Futures
contracts,
and
Options
and
swaptions
$
706
$
(23)
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
90
The
following
table
includes
a
summary
of
the
average
quarterly
outstanding
notional
by
derivative
instrument
type
for
the year
ended
December
31,
2020 (amounts
in
thousands):
4.
Fair
Valuation
Fair
value
is
defined
as
the
price
that
the Accounts
would
receive
upon
selling
a
security
or
transferring
a
liability in
a
timely
transaction
to
an
independent
buyer
in
the
principal
or
most
advantageous
market
of
the
security
at
the
measurement
date.
In
determining
fair
value,
the Accounts
may
use
one
or
more
of
the
following
approaches:
market,
income
and/or
cost.
A
hierarchy
for
inputs
is
used
in
measuring
fair
value
that
maximizes
the
use
of
observable
inputs
and
minimizes
the
use
of
unobservable
inputs
by
requiring
that
the
most
observable
inputs
be
used
when
available.
Observable
inputs
are
inputs
that
reflect
the
assumptions
market
participants
would
use
in
pricing
the
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
Accounts.
Unobservable
inputs
are
inputs
that
reflect
the
account's
own
estimates
about
the
estimates
market
participants
would
use
in
pricing
the
asset
or
liability
developed
based
on
the
best
information
available
in
the
circumstances.
The
three-tier
hierarchy
of
inputs
is
summarized
in
the
three
broad
levels
listed
below.
●
Level
1
–
Quoted
prices
are
available
in
active
markets
for
identical
securities
as
of
the
reporting
date.
Investments
which
are
generally
included
in
this
category
include listed
equities
and
listed
derivatives.
●
Level
2
–
Other
significant
observable
inputs
(including
quoted
prices
for
similar
investments,
interest
rates,
prepayment
speeds,
credit
risk,
etc.).
Investments
which
are
generally
included
in
this
category
include
certain
foreign
equities,
corporate
bonds,
senior
floating
rate
interests,
municipal
bonds,
and
U.S.
Government
and
Government
Agency
Obligations.
●
Level
3
–
Significant
unobservable
inputs
(including
the
Accounts’
assumptions
in
determining
the
fair
value
of
investments).
Investments
which are
generally included
in
this
category
include
certain
common
stocks,
corporate
bonds,
mortgage
backed
securities
or
senior
floating
rate
interests.
The
availability
of
observable
inputs
can
vary
from
security
to
security
and
is
affected
by
a
wide
variety
of
factors,
including,
for
example,
the
type
of
security,
whether
the
security
is
new
and
not
yet
established
in
the
market
place,
and
other
characteristics
particular
to
the
transaction.
To
the
extent
that
valuation
is
based
on
models
or
inputs
that
are
less
observable
or
unobservable
in
the
market,
the
determination
Contract
Type
Derivative
Type
Average
Notional
Core
Plus
Bond
Account
Credit
Contracts
Exchange
Cleared
Credit
Default
Swaps
-
Buy
Protection
$
8,331
Interest
Rate
Contracts
Futures
-
Long
5,164
Futures
-
Short
6,206
Diversified
Balanced
Volatility
Control
Account
Equity
Contracts
Futures
-
Short
15,781
Diversified
Growth
Volatility
Control
Account
Equity
Contracts
Futures
-
Short
148,759
Government
&
High
Quality
Bond
Account
Interest
Rate
Contracts
Futures
-
Short
12,331
LargeCap
Growth
Account
I
Equity
Contracts
Futures
-
Long
2,455
LargeCap
S&P
500
Index
Account
Equity
Contracts
Futures
-
Long
56,639
LargeCap
S&P
500
Managed
Volatility
Index
Account
Equity
Contracts
Futures
-
Long
5,024
Purchased
Options
34
Written
Options
34
Short-Term
Income
Account
Interest
Rate
Contracts
Futures
-
Short
505
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
91
of
fair
value
requires
more
judgment.
Accordingly,
the
degree
of
judgment
exercised
by
the
Accounts
in
determining
fair
value
is
greatest
for
instruments
categorized
in
Level
3.
In
certain
cases,
the
inputs
used
to
measure
fair
value
may
fall
into
different
levels
of
the
fair
value
hierarchy.
In
such
cases,
for
disclosure
purposes,
the
level
in
the
fair
value
hierarchy
within
which
the
fair
value
measurement
in
its
entirety
falls
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety.
Fair
value
is
a
market
based
measure
considered
from
the
perspective
of
a
market
participant
who
holds
the
asset
rather
than
an
entity
specific
measure.
Therefore,
even
when
market
assumptions
are
not
readily
available,
the
Accounts'
own
assumptions
are
set
to
reflect
those
that
market
participants
would
use
in
pricing
the
asset
or
liability
at
the
measurement
date.
The
Accounts
use
prices
and
inputs
that
are
current
as
of
the
measurement
date,
when
available.
Investments
which
are
included
in
the
Level
3
category
may
be
valued
using
indicative
quoted
prices
from
brokers
and
dealers
participating
in
the
market
for
these
investments.
These
investments
are
classified
as
Level
3
investments
due
to
the
lack
of
market
transparency
and
market
corroboration
to
support
these
quoted
prices.
Valuation
models
may
be
used
as
the
pricing
source
for
other
investments
classified
as
Level
3.
Valuation
models
rely
on
one
or
more
significant
unobservable
inputs
such
as:
yield
to
maturity,
EBITDA
multiples,
discount
rates
or
available
cash.
Significant
increases
in
yield
to
maturity,
EBITDA
multiples
or
available
cash
would
have
resulted
in
significantly
higher
fair
value
measurements.
Significant
increases
in
discount
rates
would
have
resulted
in
a
significantly
lower
fair
value
measurements.
Benchmark
pricing
procedures
set
the
base
price
of
a
security
based
on
current
market
data.
The
base
price
may
be
a
broker-dealer
quote,
transaction
price,
or
internal
value
based
on
relevant
market
data.
The
fair
values
of
these
securities
are
dependent
on
economic,
political,
and
other
considerations.
The
values
of
such
securities
may
be
affected
by
significant
changes
in
the
economic
conditions,
changes
in
government
policies,
and
other
factors
(e.g.,
natural
disasters,
pandemics, accidents,
conflicts,
etc.).
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
instruments.
The
following
is
a
summary
of
the
inputs
used
as
of December
31,
2020
in
valuing
the
Accounts'
securities
carried
at
fair
value
(amounts
in
thousands):
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Blue
Chip
Account
Common
Stocks*
$
5,167
$
—
$
—
$
5,167
Investment
Companies
6
—
—
6
Total
investments
in
securities
$
5,173
$
—
$
—
$
5,173
Bond
Market
Index
Account
Bonds*
—
900,716
—
900,716
Investment
Companies
282,949
—
—
282,949
Municipal
Bonds*
—
17,642
—
17,642
U.S.
Government
&
Government
Agency
Obligations*
—
1,735,384
—
1,735,384
Total
investments
in
securities
$
282,949
$
2,653,742
$
—
$
2,936,691
Core
Plus
Bond
Account
Bonds*
—
165,680
35
165,715
Common
Stocks
Energy
91
94
—
185
Investment
Companies
15,705
—
—
15,705
Senior
Floating
Rate
Interests*
—
2,491
—
2,491
U.S.
Government
&
Government
Agency
Obligations*
—
96,141
—
96,141
Total
investments
in
securities
$
15,796
$
264,406
$
35
$
280,237
Assets
Interest
Rate
Contracts
Futures**
2
—
—
2
Liabilities
Interest
Rate
Contracts
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
92
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Core
Plus
Bond
Account
Futures**
$
(1)
$
—
$
—
$
(1)
Diversified
Balanced
Account
Bonds*
—
—
—
—
Investment
Companies
1,020,535
—
—
1,020,535
Total
investments
in
securities
$
1,020,535
$
—
$
—
$
1,020,535
Diversified
Balanced
Managed
Volatility
Account
Investment
Companies
185,202
—
—
185,202
Total
investments
in
securities
$
185,202
$
—
$
—
$
185,202
Diversified
Balanced
Volatility
Control
Account
Investment
Companies
184,577
—
—
184,577
Total
investments
in
securities
$
184,577
$
—
$
—
$
184,577
Diversified
Growth
Account
Investment
Companies
3,854,088
—
—
3,854,088
Total
investments
in
securities
$
3,854,088
$
—
$
—
$
3,854,088
Diversified
Growth
Managed
Volatility
Account
Investment
Companies
378,350
—
—
378,350
Total
investments
in
securities
$
378,350
$
—
$
—
$
378,350
Diversified
Growth
Volatility
Control
Account
Investment
Companies
996,754
—
—
996,754
Total
investments
in
securities
$
996,754
$
—
$
—
$
996,754
Diversified
Income
Account
Investment
Companies
323,623
—
—
323,623
Total
investments
in
securities
$
323,623
$
—
$
—
$
323,623
Diversified
International
Account
Common
Stocks
Basic
Materials
1,232
12,082
—
13,314
Communications
5,396
16,810
—
22,206
Consumer,
Cyclical
5,767
50,582
—
56,349
Consumer,
Non-cyclical
3,471
39,439
—
42,910
Energy
4,914
10,945
—
15,859
Financial
13,245
44,885
—
58,130
Industrial
2,741
36,435
—
39,176
Technology
—
34,621
—
34,621
Utilities
1,073
6,568
—
7,641
Investment
Companies
3,932
—
—
3,932
Total
investments
in
securities
$
41,771
$
252,367
$
—
$
294,138
Equity
Income
Account
Common
Stocks*
776,748
—
—
776,748
Investment
Companies
18,518
—
—
18,518
Total
investments
in
securities
$
795,266
$
—
$
—
$
795,266
Government
&
High
Quality
Bond
Account
Bonds*
—
54,156
—
54,156
Investment
Companies
17,351
—
—
17,351
U.S.
Government
&
Government
Agency
Obligations*
—
209,985
—
209,985
Total
investments
in
securities
$
17,351
$
264,141
$
—
$
281,492
Assets
Interest
Rate
Contracts
Futures**
18
—
—
18
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
93
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
International
Emerging
Markets
Account
Common
Stocks
Basic
Materials
$
—
$
4,793
$
—
$
4,793
Communications
1,487
13,988
—
15,475
Consumer,
Cyclical
2,008
8,058
—
10,066
Consumer,
Non-cyclical
2,328
7,753
—
10,081
Diversified
—
402
—
402
Energy
838
2,818
—
3,656
Financial
3,386
13,927
—
17,313
Industrial
1,316
6,644
—
7,960
Technology
1,077
20,028
—
21,105
Utilities
—
1,445
—
1,445
Investment
Companies
805
—
—
805
Preferred
Stocks
Energy
794
—
—
794
Technology
—
267
—
267
Total
investments
in
securities
$
14,039
$
80,123
$
—
$
94,162
LargeCap
Growth
Account
I
Common
Stocks
Basic
Materials
9,671
—
—
9,671
Communications
152,443
1,484
—
153,927
Consumer,
Cyclical
40,386
—
—
40,386
Consumer,
Non-cyclical
163,081
—
—
163,081
Energy
206
—
—
206
Financial
37,429
—
—
37,429
Industrial
28,795
—
—
28,795
Technology
164,353
147
155
164,655
Utilities
2,431
—
—
2,431
Convertible
Preferred
Stocks
Communications
—
—
254
254
Consumer,
Cyclical
—
—
2,623
2,623
Technology
—
—
1,030
1,030
Investment
Companies
8,420
—
—
8,420
Total
investments
in
securities
$
607,215
$
1,631
$
4,062
$
612,908
Assets
Equity
Contracts
Futures**
12
—
—
12
LargeCap
S&P
500
Index
Account
Common
Stocks*
2,869,811
—
—
2,869,811
Investment
Companies
55,096
—
—
55,096
Total
investments
in
securities
$
2,924,907
$
—
$
—
$
2,924,907
Assets
Equity
Contracts
Futures**
1,000
—
—
1,000
LargeCap
S&P
500
Managed
Volatility
Index
Account
Common
Stocks*
219,327
—
—
219,327
Investment
Companies
16,091
—
—
16,091
Purchased
Options
506
—
—
506
Total
investments
in
securities
$
235,924
$
—
$
—
$
235,924
Assets
Equity
Contracts
Futures**
95
—
—
95
Liabilities
Equity
Contracts
Written
Options
(316)
—
—
(316)
MidCap
Account
Common
Stocks
Basic
Materials
3,705
—
—
3,705
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
94
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
MidCap
Account
Communications
$
63,024
$
—
$
—
$
63,024
Consumer,
Cyclical
142,111
—
—
142,111
Consumer,
Non-cyclical
78,873
—
—
78,873
Diversified
—
1,297
—
1,297
Financial
148,537
—
—
148,537
Industrial
85,807
—
—
85,807
Technology
89,817
—
—
89,817
Utilities
16,493
—
—
16,493
Investment
Companies
1,607
—
—
1,607
Total
investments
in
securities
$
629,974
$
1,297
$
—
$
631,271
Principal
Capital
Appreciation
Account
Common
Stocks
Basic
Materials
2,672
—
—
2,672
Communications
23,911
—
—
23,911
Consumer,
Cyclical
17,048
—
—
17,048
Consumer,
Non-cyclical
30,931
—
—
30,931
Energy
3,462
—
—
3,462
Financial
26,397
—
—
26,397
Industrial
14,463
1,446
—
15,909
Technology
39,485
—
—
39,485
Utilities
4,478
—
—
4,478
Investment
Companies
1,887
—
—
1,887
Total
investments
in
securities
$
164,734
$
1,446
$
—
$
166,180
Principal
LifeTime
2010
Account
Investment
Companies
35,830
—
—
35,830
Total
investments
in
securities
$
35,830
$
—
$
—
$
35,830
Principal
LifeTime
2020
Account
Investment
Companies
194,173
—
—
194,173
Total
investments
in
securities
$
194,173
$
—
$
—
$
194,173
Principal
LifeTime
2030
Account
Investment
Companies
228,297
—
—
228,297
Total
investments
in
securities
$
228,297
$
—
$
—
$
228,297
Principal
LifeTime
2040
Account
Investment
Companies
107,143
—
—
107,143
Total
investments
in
securities
$
107,143
$
—
$
—
$
107,143
Principal
LifeTime
2050
Account
Investment
Companies
49,785
—
—
49,785
Total
investments
in
securities
$
49,785
$
—
$
—
$
49,785
Principal
LifeTime
2060
Account
Investment
Companies
11,474
—
—
11,474
Total
investments
in
securities
$
11,474
$
—
$
—
$
11,474
Principal
LifeTime
Strategic
Income
Account
Investment
Companies
31,030
—
—
31,030
Total
investments
in
securities
$
31,030
$
—
$
—
$
31,030
Real
Estate
Securities
Account
Common
Stocks*
136,186
—
—
136,186
Investment
Companies
59
—
—
59
Total
investments
in
securities
$
136,245
$
—
$
—
$
136,245
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
95
*For
additional
detail
regarding
sector
classifications,
please
see
the
schedules
of
investments.
**Futures
are
presented
at
the
unrealized
appreciation/(depreciation)
of
the
instrument.
At
the
end
of
the
year,
there
were
no
Accounts
which
had
a
significant
Level
3
balance.
During
the
year,
there
were
no
significant
purchases,
sales,
or
transfers
into
or
out
of
Level
3.
5.
Management
Agreement
and
Transactions
with
Affiliates
Management
Services.
The
Accounts
have
agreed
to
pay
investment
advisory
and
management
fees
to
the
Manager
computed
at
an
annual
percentage
rate
of
each
account’s
average
daily
net
assets.
A
portion
of
the
management
fee
is
paid
by
the
Manager
to
the
sub-advisor
of
each
of
the
Accounts,
some
of
which
are
affiliates
of
the
Manager.
The
annual
rate
paid
by
the
SAM
Portfolios
is
based
upon
the
aggregate
average
daily
net
assets
(“aggregate
net
assets”)
of
the
SAM
Portfolios.
The
investment
advisory
and
management
fee
schedule
for
the
SAM
Portfolios
is
.25%
of
aggregate
net
assets
up
to
the
first
$1
billion
and
.20%
of
aggregate
net
assets
over
$1
billion.
The
Principal
LifeTime
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
SAM
Balanced
Portfolio
Investment
Companies
$
702,547
$
—
$
—
$
702,547
Total
investments
in
securities
$
702,547
$
—
$
—
$
702,547
SAM
Conservative
Balanced
Portfolio
Investment
Companies
194,529
—
—
194,529
Total
investments
in
securities
$
194,529
$
—
$
—
$
194,529
SAM
Conservative
Growth
Portfolio
Investment
Companies
384,302
—
—
384,302
Total
investments
in
securities
$
384,302
$
—
$
—
$
384,302
SAM
Flexible
Income
Portfolio
Investment
Companies
184,196
—
—
184,196
Total
investments
in
securities
$
184,196
$
—
$
—
$
184,196
SAM
Strategic
Growth
Portfolio
Investment
Companies
355,463
—
—
355,463
Total
investments
in
securities
$
355,463
$
—
$
—
$
355,463
Short-Term
Income
Account
Bonds*
—
135,006
—
135,006
Investment
Companies
2,556
—
—
2,556
U.S.
Government
&
Government
Agency
Obligations*
—
17,281
—
17,281
Total
investments
in
securities
$
2,556
$
152,287
$
—
$
154,843
Assets
Equity
Contracts
Futures**
—
—
—
—
SmallCap
Account
Common
Stocks
Basic
Materials
6,613
—
—
6,613
Communications
4,849
—
—
4,849
Consumer,
Cyclical
28,389
—
—
28,389
Consumer,
Non-cyclical
55,617
—
—
55,617
Diversified
4,221
—
—
4,221
Energy
3,371
—
—
3,371
Financial
39,162
—
—
39,162
Industrial
32,751
—
—
32,751
Technology
25,759
—
—
25,759
Utilities
3,376
—
—
3,376
Investment
Companies
5,672
—
—
5,672
Total
investments
in
securities
$
209,780
$
—
$
—
$
209,780
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
96
Accounts
do
not
pay
investment
advisory
and
management
fees.
The
annual
rates
used
in
this
calculation
for
each
of
the
other
Accounts
are
as
follows:
The
Manager
has
contractually
agreed
to
waive
certain
of
the
Accounts'
management
and
investment
advisory
fees.
The
expense
waiver
will
reduce
the account's
management
and
investment
advisory
fees
by
the
following
amounts:
The
Manager
has
contractually
agreed
to
limit
the
expenses
(excluding
interest
expense,
expenses
related
to account
investments,
acquired
fund
fees
and
expenses,
and
other
extraordinary
expenses)
for
certain
classes
of
shares
of
certain
of
the
Accounts.
The
reductions
and
reimbursements
are
in
amounts
that
maintain
total
operating
expenses
at
or
below
certain
limits.
The
limits
are
expressed
as
a
percentage
of
average
daily
net
assets
attributable
to
each
class
of
shares
on
an
annualized
basis
during
the
reporting
period.
The
expenses
borne
by
the
Manager
are
subject
to
reimbursement
by
the
Accounts
through
the
fiscal
year
end,
provided
no
reimbursement
will
be
made
if
it
would
result
in
the
Accounts
exceeding
the
total
operating
expense
limits.
Any
amounts
outstanding
at
the
end
of
the
year
are
shown
as
an
expense
Net
Assets
of
Account
(in
millions)
First
$100
Next
$100
Next
$100
Next
$100
Thereafter
Core
Plus
Bond
Account
.50%
.45%
.40%
.35%
.30%
Equity
Income
Account
.60
.55
.50
.45
.40
LargeCap
Growth
Account
I
.80
.75
.70
.65
.60
MidCap
Account
.65
.60
.55
.50
.45
Real
Estate
Securities
Account
.83
.78
.73
.70
.68
SmallCap
Account
.85
.80
.75
.70
.65
Net
Assets
of
Account
(in
millions)
First
$250
Next
$250
Next
$250
Next
$250
Thereafter
Diversified
International
Account
.85%
.80%
.75%
.70%
.65%
International
Emerging
Markets
Account
(Effective
May
1,
2020)
1.10
1.05
1.00
.95
.90
International
Emerging
Markets
Account
(Prior
to
May
1,
2020
1.25
1.20
1.15
1.10
1.05
Net
Assets
of
Account
(in
millions)
First
$200
Next
$300
Over
$500
Short-Term
Income
Account
.50%
.45%
.40%
Net
Assets
of
Account
(in
millions)
First
$500
Over
$500
Blue
Chip
Account
.60%
.55%
Principal
Capital
Appreciation
Account
.625
.50
Net
Assets
of
Account
(in
billions)
First
$2
Over
$2
Government
&
High
Quality
Bond
Account
.50%
.45%
All
Net
Assets
Bond
Market
Index
Account
.14%
Diversified
Balanced
Account
.05
Diversified
Balanced
Managed
Volatility
Account
.05
Diversified
Balanced
Volatility
Control
Account
.12
Diversified
Growth
Account
.05
Diversified
Growth
Managed
Volatility
Account
.05
Diversified
Growth
Volatility
Control
Account
.12
Diversified
Income
Account
.05
LargeCap
S&P
500
Index
Account
.25
LargeCap
S&P
500
Managed
Volatility
Index
Account
.45
Period
from
January
1,
2020
through
December
31,
2020
Expiration
International
Emerging
Markets
Account
.150%
April
30,
2020
LargeCap
Growth
Account
I
.016
April
30,
2021
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
97
reimbursement
from
Manager
or
expense
reimbursement
to
Manager
on
the
statements
of
assets
and
liabilities.
The
operating
expense
limits are
as
follows:
*
Period
from
December
9,
2020
through
December
31,
2020.
The
Manager
has
contractually
agreed
to
reduce
Short-Term
Income
Account’s
expenses
by
.01%
through
the
period
ending
April
30,
2021.
In
addition,
the
Manager
has
voluntarily
agreed
to
limit
the
expenses
(excluding
interest
expense,
expenses
related
to
account
investments,
acquired
fund
fees
and
expenses,
and
other
extraordinary
expenses)
attributable
to
Class
2
shares
of
certain
of
the
Accounts.
The
reductions
and
reimbursements
are
in
amounts
that
maintain
total
operating
expenses
at
or
below
certain
limits.
The
limits
are
expressed
as
a
percentage
of
average
daily
net
assets
on
an
annualized
basis
during
the
reporting
period.
The
expense
limit
may
be
terminated
at
any
time.
The
operating
expense
limits
are
as
follows:
Distribution
Fees.
Class
2
and
Class
3
shares
of
the
Accounts
bear
distribution
fees.
The
fee
is
computed
at
an
annual
rate
of
the
average
daily
net
assets
attributable
to
Class
2
and
Class
3
shares
of
each
of
the
Accounts.
Distribution
fees
are
paid
to
Principal
Funds
Distributor,
Inc.
(an
affiliate
of
the
Manager),
the
principal
distributor
of
the
Accounts.
A
portion
of
the
distribution
fees
may
be
paid
to
other
selling
dealers
for
providing
certain
services.
The
annual
distribution
fee
rate
is
.25%.
Administrative
Service
Fees.
Class
3
shares
of
the
Accounts
bear
administrative
service
fees.
The
fee
is
computed
at
an
annual
rate
of
the
average
daily
net
assets
attributable
to
Class
3
shares
of
each
of
the
Accounts.
Administrative
fees
are
paid
to
Principal
Shareholder
Services,
Inc.
(an
affiliate
of
the
Manager),
the
principal
administrator
of
the
Accounts.
The
annual
administrative
service
fee
rate
is
.15%.
Chief
Compliance
Officer
Expenses.
The Accounts
pay
certain
expenses
associated
with
the
Chief
Compliance
Officer
(“CCO”).
This
expense
is
allocated
among
the
registered
investment companies
managed
by
the
Manager based
on
the
relative
net
assets
of
each account
and
is
shown
on
the
statements
of
operations.
Affiliated
Ownership.
At
December
31,
2020,
the
Manager,
Principal National
Life
Insurance
Company
(an
affiliate
of
the
Manager), Principal
Life
Insurance
Company
(an
affiliate
of
the
Manager),
Principal
Financial
Services,
Inc.
(an
affiliate
of
the
Manager) and/or
one
or
more
separate
accounts
sponsored
by
Principal
Life
Insurance
Company
owned
shares
of
the
Accounts as
follows
(amounts
in
thousands):
Period
from
January
1,
2020
through
December
31,
2020
Class
1
Class
2
Class
3
Expiration
Blue
Chip
Account
N/A
N/A
1.05%*
April
30,
2022
Diversified
Balanced
Managed
Volatility
Account
N/A
.31%
N/A
April
30,
2021
Diversified
Balanced
Volatility
Control
Account
N/A
.39
N/A
April
30,
2020
Diversified
Growth
Managed
Volatility
Account
N/A
.31
N/A
April
30,
2020
International
Emerging
Markets
Account
1.20%
N/A
N/A
April
30,
2021
LargeCap
Growth
Account
I
.69
N/A
N/A
April
30,
2021
Principal
LifeTime
2060
Account
.10
N/A
N/A
April
30,
2021
Period
from
January
1,
2020
through
December
31,
2020
Class
2
Expense
Limit
Diversified
Income
Account
.31%
Class
1
Class
2
Class
3
Blue
Chip
Account
N/A
N/A
500
Bond
Market
Index
Account
2,796
N/A
N/A
Core
Plus
Bond
Account
20,494
N/A
N/A
Diversified
Balanced
Account
2,305
55,634
1
Diversified
Balanced
Managed
Volatility
Account
N/A
13,561
1
Diversified
Balanced
Volatility
Control
Account
N/A
14,881
1
Diversified
Growth
Account
N/A
191,207
1
Diversified
Growth
Managed
Volatility
Account
N/A
26,390
1
Diversified
Growth
Volatility
Control
Account
N/A
78,505
1
Diversified
Income
Account
N/A
21,827
1
Diversified
International
Account
16,205
N/A
N/A
Equity
Income
Account
12,253
299
—
Government
&
High
Quality
Bond
Account
14,393
N/A
N/A
International
Emerging
Markets
Account
4,707
N/A
N/A
LargeCap
Growth
Account
I
12,371
N/A
N/A
LargeCap
S&P
500
Index
Account
20,146
1,284
N/A
MidCap
Account
9,303
57
N/A
Principal
Capital
Appreciation
Account
3,661
241
N/A
Principal
LifeTime
2010
Account
2,636
N/A
N/A
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
98
6.
Investment
Transactions
For
the year ended
December
31,
2020,
the
cost
of
investment
securities
purchased
and
proceeds
from
investment
securities
sold
(not
including
short-term
investments,
return
of
capital, and
U.S.
government
securities)
by
the Accounts
were
as
follows
(amounts
in
thousands):
For
the year
ended December
31,
2020,
the
cost
of
U.S.
government
securities
purchased
and
proceeds
from
U.S.
government
securities
sold
(not
including
short-term
investments)
by
the Accounts
were
as
follows
(amounts
in
thousands):
Class
1
Class
2
Class
3
Principal
LifeTime
2020
Account
12,957
N/A
N/A
Principal
LifeTime
2030
Account
15,736
N/A
N/A
Principal
LifeTime
2040
Account
5,924
N/A
N/A
Principal
LifeTime
2050
Account
2,850
N/A
N/A
Principal
LifeTime
2060
Account
696
N/A
N/A
Principal
LifeTime
Strategic
Income
Account
2,417
N/A
N/A
Real
Estate
Securities
Account
6,760
351
N/A
SAM
Balanced
Portfolio
31,948
1,687
N/A
SAM
Conservative
Balanced
Portfolio
12,613
1,038
N/A
SAM
Conservative
Growth
Portfolio
9,038
916
N/A
SAM
Flexible
Income
Portfolio
11,169
1,793
N/A
SAM
Strategic
Growth
Portfolio
7,386
603
N/A
Short-Term
Income
Account
59,427
N/A
N/A
SmallCap
Account
11,100
217
N/A
Purchases
Sales
Blue
Chip
Account
$
5,112
$
118
Bond
Market
Index
Account
1,546,732
1,399,119
Core
Plus
Bond
Account
421,651
403,393
Diversified
Balanced
Account
231,754
314,280
Diversified
Balanced
Managed
Volatility
Account
43,207
49,151
Diversified
Balanced
Volatility
Control
Account
148,747
121,399
Diversified
Growth
Account
829,753
1,041,077
Diversified
Growth
Managed
Volatility
Account
77,421
86,320
Diversified
Growth
Volatility
Control
Account
813,966
652,950
Diversified
Income
Account
113,336
90,623
Diversified
International
Account
114,550
125,949
Equity
Income
Account
143,042
155,814
Government
&
High
Quality
Bond
Account
169,633
182,433
International
Emerging
Markets
Account
45,842
55,518
LargeCap
Growth
Account
I
224,308
281,853
LargeCap
S&P
500
Index
Account
287,770
525,269
LargeCap
S&P
500
Managed
Volatility
Index
Account
18,007
37,279
MidCap
Account
68,674
142,536
Principal
Capital
Appreciation
Account
53,394
68,333
Principal
LifeTime
2010
Account
24,680
23,127
Principal
LifeTime
2020
Account
95,828
107,293
Principal
LifeTime
2030
Account
123,782
100,216
Principal
LifeTime
2040
Account
44,158
34,163
Principal
LifeTime
2050
Account
18,485
13,257
Principal
LifeTime
2060
Account
7,326
5,257
Principal
LifeTime
Strategic
Income
Account
21,777
19,062
Real
Estate
Securities
Account
48,346
61,708
SAM
Balanced
Portfolio
122,439
168,571
SAM
Conservative
Balanced
Portfolio
42,107
48,012
SAM
Conservative
Growth
Portfolio
69,932
76,421
SAM
Flexible
Income
Portfolio
68,156
78,816
SAM
Strategic
Growth
Portfolio
69,527
67,061
Short-Term
Income
Account
83,886
70,288
SmallCap
Account
65,913
85,254
Purchases
Sales
Bond
Market
Index
Account
$
1,136,678
$
1,217,482
Core
Plus
Bond
Account
135,505
154,099
Government
&
High
Quality
Bond
Account
115,894
95,244
Short-Term
Income
Account
23,909
26,283
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
99
7.
Federal
Tax
Information
Distributions
to
Shareholders.
The
federal
income
tax
character
of
distributions
paid
for
the years
ended December
31,
2020 and
December
31,
2019 were
as
follows
(amounts
in
thousands):
*The
Accounts
designate
these
distributions
as
long-term
capital
gain
dividends
per
Internal
Revenue
Code
Sec.
852
(b)(3)(C)
in
the
20-percent
group
(which
may
be
taxed
at
a
20-percent
rate,
a
15-percent
rate
or
a
0-percent
rate,
depending
on
the
shareholder’s
taxable
income).
^Unrecaptured
Section
1250
gains
are
gains
from
the
sale
of
depreciable
property
that
are
subject
to
a
maximum
tax
rate
of
25%.
Certain
Accounts
may
also
utilize
earnings
and
profits
distributed
to
shareholders
on
redemptions
of
shares
as
part
of
the
dividends
paid
deduction.
For
U.S.
federal
income
tax
purposes,
short-term
capital
gain
distributions
are
considered
ordinary
income
distributions.
Distributable
Earnings.
As
of December
31,
2020,
the
components
of
total
distributable
earnings
(accumulated
loss)
on
a
federal
tax
basis
were
as
follows
(amounts
in
thousands):
Ordinary
Income
Long-Term
Capital
Gain*
Section
1250
Gain^
2020
2019
2020
2019
2020
2019
Bond
Market
Index
Account
$
66,635
$
63,629
$
—
$
—
$
—
$
—
Core
Plus
Bond
Account
9,503
10,172
—
—
—
—
Diversified
Balanced
Account
24,559
19,161
29,770
42,195
—
—
Diversified
Balanced
Managed
Volatility
Account
3,789
2,985
6,025
2,350
—
—
Diversified
Balanced
Volatility
Control
Account
3,190
1,239
1,297
761
—
—
Diversified
Growth
Account
80,741
66,048
110,087
132,175
—
—
Diversified
Growth
Managed
Volatility
Account
7,464
6,096
14,949
4,546
—
—
Diversified
Growth
Volatility
Control
Account
17,491
5,625
9,313
4,665
—
—
Diversified
Income
Account
6,762
4,545
4,037
5,619
—
—
Diversified
International
Account
6,493
4,159
—
12,521
—
—
Equity
Income
Account
15,534
16,637
19,615
16,586
—
—
Government
&
High
Quality
Bond
Account
5,987
6,457
—
—
—
—
International
Emerging
Markets
Account
1,960
802
—
2,283
—
—
LargeCap
Growth
Account
I
3,033
230
29,011
34,567
—
—
LargeCap
S&P
500
Index
Account
51,542
48,899
159,258
111,466
—
—
LargeCap
S&P
500
Managed
Volatility
Index
Account
3,444
3,588
4,904
14,916
—
—
MidCap
Account
3,984
1,707
53,763
79,894
—
—
Principal
Capital
Appreciation
Account
2,350
2,602
6,714
13,127
—
—
Principal
LifeTime
2010
Account
887
911
510
1,712
—
—
Principal
LifeTime
2020
Account
5,542
4,556
2,332
8,015
—
—
Principal
LifeTime
2030
Account
4,185
3,601
3,259
8,675
—
—
Principal
LifeTime
2040
Account
1,831
1,500
1,789
3,851
—
—
Principal
LifeTime
2050
Account
794
719
890
2,142
—
—
Principal
LifeTime
2060
Account
151
129
195
325
—
—
Principal
LifeTime
Strategic
Income
Account
686
609
—
986
—
—
Real
Estate
Securities
Account
2,794
3,501
7,790
9,349
—
424
SAM
Balanced
Portfolio
14,711
17,364
19,998
24,099
—
—
SAM
Conservative
Balanced
Portfolio
4,519
5,316
3,128
3,638
—
—
SAM
Conservative
Growth
Portfolio
6,417
5,992
5,243
15,423
—
—
SAM
Flexible
Income
Portfolio
5,111
6,506
3,761
5,219
—
—
SAM
Strategic
Growth
Portfolio
5,611
4,270
7,049
15,098
—
—
Short-Term
Income
Account
3,166
3,392
—
—
—
—
SmallCap
Account
838
6,293
12,504
23,429
—
—
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Accumulated
Losses
Net
Unrealized
Appreciation
(Depreciation)
Other
Temporary
Differences*
Total
Accumulated
Earnings
(Deficit)
Blue
Chip
Account
$
—
$
—
$
—
$
170
$
—
$
170
Bond
Market
Index
Account
60,588
4,480
—
169,301
—
234,369
Core
Plus
Bond
Account
12,215
10
—
12,808
29
25,062
Diversified
Balanced
Account
28,146
43,718
—
304,692
—
376,556
Diversified
Balanced
Managed
Volatility
Account
4,629
2,572
—
34,560
—
41,761
Diversified
Balanced
Volatility
Control
Account
5,288
794
—
14,726
(66
)
20,742
Diversified
Growth
Account
96,335
154,353
—
1,219,347
—
1,470,035
Diversified
Growth
Managed
Volatility
Account
8,751
6,514
—
81,360
—
96,625
Diversified
Growth
Volatility
Control
Account
23,950
6,465
—
91,489
(20
)
121,884
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
100
*Represents
book-to-tax
accounting
differences.
Capital
Loss
Carryforwards.
For
federal
income
tax
purposes,
capital
loss
carryforwards
are
losses
that
can
be
used
to
offset
future
capital
gains
of
the
Accounts.
As
of December
31,
2020,
the Accounts had
approximate
net
capital
loss
carryforwards
as
follows
(amounts
in
thousands):
All
of
these
capital
losses
were
generated
in
taxable
years
beginning
after
the
enactment
date
of
the
Regulated
Investment
Company
Modernization
Act
of
2010
on
December
22,
2010,
and
will
be
carried
forward
with
no
expiration
and
with
the
character
of
the
loss
retained.
For
the
year
ended
December
31,
2020,
the
Accounts
utilized
capital
loss
carryforwards
as
follows
(amounts
in
thousands):
Late-Year
Losses.
A
regulated
investment
company
may
elect
to
treat
any
portion
of
its
qualified
late-year
loss
as
arising
on
the
first
day
of
the
next
taxable
year.
Qualified
late-year
losses
are
certain
capital
and
ordinary
losses
which
occur
during
the
portion
of
the account's
taxable
year
subsequent
to
October 31.
For
the
taxable
year
ended
December
31,
2020
,
the
Accounts
do
not
plan
to
defer
any
late-year
losses.
Reclassification
of
Capital
Accounts.
The
Accounts
may
record
reclassifications
in
their
capital
accounts.
These
reclassifications
have
no
impact
on
the
total
net
assets
of
the
Accounts.
The
reclassifications
are
a
result
of
permanent
differences
between
U.S.
GAAP
and
tax
accounting.
Adjustments
are
made
to
reflect
the
impact
these
items
have
on
current
and
future
distributions
to
shareholders.
Therefore,
the
source
of
the Accounts'
distributions
may
be
shown
in
the
accompanying
statements
of
changes
in
net
assets
as
from
net
investment
income
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Accumulated
Losses
Net
Unrealized
Appreciation
(Depreciation)
Other
Temporary
Differences*
Total
Accumulated
Earnings
(Deficit)
Diversified
Income
Account
8,095
5,445
—
57,319
—
70,859
Diversified
International
Account
3,880
1,423
—
82,295
(1
)
87,597
Equity
Income
Account
14,226
426
—
357,063
—
371,715
Government
&
High
Quality
Bond
Account
4,265
—
(8,973
)
3,581
(35
)
(1,162
)
International
Emerging
Markets
Account
420
1,430
—
25,963
(2
)
27,811
LargeCap
Growth
Account
I
8,157
70,754
—
248,290
—
327,201
LargeCap
S&P
500
Index
Account
50,392
243,278
—
1,280,529
—
1,574,199
LargeCap
S&P
500
Managed
Volatility
Index
Account
7,415
19,457
—
89,067
(19,488
)
96,451
MidCap
Account
1,561
43,625
—
275,056
—
320,242
Principal
Capital
Appreciation
Account
1,793
6,620
—
87,376
—
95,789
Principal
LifeTime
2010
Account
1,192
1,413
—
3,408
—
6,013
Principal
LifeTime
2020
Account
4,266
10,092
—
25,486
—
39,844
Principal
LifeTime
2030
Account
5,511
6,650
—
35,066
—
47,227
Principal
LifeTime
2040
Account
2,447
3,205
—
18,467
—
24,119
Principal
LifeTime
2050
Account
1,109
1,580
—
9,548
—
12,237
Principal
LifeTime
2060
Account
288
238
—
1,778
—
2,304
Principal
LifeTime
Strategic
Income
Account
887
968
—
2,579
—
4,434
Real
Estate
Securities
Account
2,557
10,205
—
24,563
—
37,325
SAM
Balanced
Portfolio
11,461
15,012
—
175,339
—
201,812
SAM
Conservative
Balanced
Portfolio
3,678
2,576
—
32,749
—
39,003
SAM
Conservative
Growth
Portfolio
4,715
8,341
—
98,907
—
111,963
SAM
Flexible
Income
Portfolio
4,510
2,803
—
19,396
—
26,709
SAM
Strategic
Growth
Portfolio
3,537
8,783
—
83,952
—
96,272
Short-Term
Income
Account
2,913
8
—
2,854
(6
)
5,769
SmallCap
Account
5,090
2,437
—
53,191
—
60,718
Short-Term
Long-Term
Total
Government
&
High
Quality
Bond
Account
$
1,055
$
7,918
$
8,973
Utilized
Bond
Market
Index
Account
$
19,606
Core
Plus
Bond
Account
3,611
Diversified
International
Account
272
Government
&
High
Quality
Bond
Account
48
International
Emerging
Markets
Account
69
Short-Term
Income
Account
656
7.
Federal
Tax
Information
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
101
and net
realized
gain
on
investments
or
from
tax
return
of
capital
depending
on
the
type
of
book
and
tax
differences
that
exist.
For
the
year
ended December
31,
2020,
the
Accounts
recorded
reclassifications
as
follows
(amounts
in
thousands):
Federal
Income
Tax
Basis.
As
of December
31,
2020, the
net
federal
income
tax
unrealized
appreciation
(depreciation)
and
federal
tax
cost
of
investments
held
by
the
Accounts
were
as
follows
(amounts
in
thousands):
8.
Other
Matters
As
of
the
date
these
financial
statements
were
available
to
be
issued,
the
outbreak
of
the
novel
coronavirus
(“COVID-19”)
in
many
countries
continues
to
adversely
impact
global
commercial
activity
and
has
contributed
to
significant
volatility
in
financial
markets.
The
global
impact
of
the
outbreak
has
been
rapidly
evolving
and
many
countries
have
reacted
by
instituting
quarantines
and
restriction
on
travel.
Such
measures,
Total
Distributable
Earnings
(Accumulated
Loss)
Capital
Shares
and
Additional
Paid-in-Capital
Diversified
Balanced
Account
$
(6,995
)
$
6,995
Diversified
Growth
Account
(19,727
)
19,727
Diversified
International
Account
(336
)
336
Equity
Income
Account
(2,913
)
2,913
LargeCap
Growth
Account
I
(10,553
)
10,553
LargeCap
S&P
500
Index
Account
(57,254
)
57,254
LargeCap
S&P
500
Managed
Volatility
Index
Account
(649
)
649
MidCap
Account
(8,430
)
8,430
Principal
Capital
Appreciation
Account
(1,256
)
1,256
Real
Estate
Securities
Account
13
(13
)
SmallCap
Account
(1,418
)
1,418
Unrealized
Appreciation
Unrealized
(Depreciation)
Net
Unrealized
Appreciation/
(Depreciation)
Cost
for
Federal
Income
Tax
Purposes
Blue
Chip
Account
$
185
$
(15)
$
170
$
5,003
Bond
Market
Index
Account
174,320
(5,020)
169,300
2,767,391
Core
Plus
Bond
Account
13,968
(1,160)
12,808
267,430
Diversified
Balanced
Account
305,555
(863)
304,692
715,843
Diversified
Balanced
Managed
Volatility
Account
34,722
(162)
34,560
150,642
Diversified
Balanced
Volatility
Control
Account
15,193
(467)
14,726
169,851
Diversified
Growth
Account
1,223,464
(4,117)
1,219,347
2,634,741
Diversified
Growth
Managed
Volatility
Account
81,692
(332)
81,360
296,990
Diversified
Growth
Volatility
Control
Account
94,551
(3,063)
91,488
905,266
Diversified
Income
Account
57,823
(504)
57,319
266,304
Diversified
International
Account
86,801
(4,519)
82,282
211,856
Equity
Income
Account
370,899
(13,836)
357,063
438,203
Government
&
High
Quality
Bond
Account
7,073
(3,493)
3,580
277,930
International
Emerging
Markets
Account
27,710
(1,746)
25,964
68,198
LargeCap
Growth
Account
I
252,012
(3,722)
248,290
364,630
LargeCap
S&P
500
Index
Account
1,405,857
(125,327)
1,280,530
1,645,377
LargeCap
S&P
500
Managed
Volatility
Index
Account
99,675
(10,608)
89,067
146,636
MidCap
Account
281,345
(6,289)
275,056
356,215
Principal
Capital
Appreciation
Account
88,869
(1,493)
87,376
78,804
Principal
LifeTime
2010
Account
3,662
(254)
3,408
32,422
Principal
LifeTime
2020
Account
27,215
(1,729)
25,486
168,687
Principal
LifeTime
2030
Account
36,617
(1,551)
35,066
193,231
Principal
LifeTime
2040
Account
19,330
(863)
18,467
88,676
Principal
LifeTime
2050
Account
9,913
(365)
9,548
40,237
Principal
LifeTime
2060
Account
1,928
(151)
1,777
9,697
Principal
LifeTime
Strategic
Income
Account
2,731
(152)
2,579
28,451
Real
Estate
Securities
Account
32,470
(7,906)
24,564
111,681
SAM
Balanced
Portfolio
177,563
(2,224)
175,339
527,208
SAM
Conservative
Balanced
Portfolio
34,395
(1,646)
32,749
161,780
SAM
Conservative
Growth
Portfolio
100,448
(1,540)
98,908
285,394
SAM
Flexible
Income
Portfolio
21,250
(1,854)
19,396
164,800
SAM
Strategic
Growth
Portfolio
86,067
(2,116)
83,951
271,512
Short-Term
Income
Account
3,196
(342)
2,854
151,989
SmallCap
Account
64,409
(11,218)
53,191
156,700
7.
Federal
Tax
Information
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
102
as
well
as
the
general
uncertainty
surrounding
the
dangers
and
impact
of
COVID-19,
are
creating
significant
disruption
in
supply
chains
and
economic
activity.
As
COVID-19
continues
to
spread,
the
potential
impacts,
including
a
global,
regional
or
other
economic
recession,
are
increasingly
difficult
to
assess.
These
events,
or
fear
of
such
an
event,
present
material
uncertainty
and
risk
with
respect
to
the Accounts'
performance
and
financial
results.
9.
Subsequent
Events
Management
has
evaluated
events
and
transactions
that
have
occurred
through
the
date
the
financial
statements
were
issued
that
would
merit
recognition
or
disclosure
in
the
financial
statements.
There
were
no
items
requiring
adjustment
of
the
financial
statements
or
additional
disclosure.
8.
Other
Matters
(continued)
Schedule
of
Investments
Blue
Chip
Account
December
31,
2020
See
accompanying
notes.
103
INVESTMENT
COMPANIES
-
0.12%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.12%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
5,864
$
6
TOTAL
INVESTMENT
COMPANIES
$
6
COMMON
STOCKS
-
99.94%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
4.74%
TransDigm
Group
Inc
(b)
396
$
245
Chemicals
-
2.67%
Ecolab
Inc
72
16
Linde
PLC
388
102
Sherwin-Williams
Co/The
27
20
$
138
Commercial
Services
-
8.39%
CoStar
Group
Inc
(b)
66
61
Moody's
Corp
198
57
PayPal
Holdings
Inc
(b)
1,044
245
S&P
Global
Inc
217
71
$
434
Diversified
Financial
Services
-
11.12%
Charles
Schwab
Corp/The
1,437
76
Mastercard
Inc
715
255
Visa
Inc
1,114
244
$
575
Electronics
-
1.53%
Roper
Technologies
Inc
184
79
Healthcare
-
Products
-
3.04%
Danaher
Corp
505
112
IDEXX
Laboratories
Inc
(b)
90
45
$
157
Insurance
-
2.55%
Aon
PLC
445
94
Progressive
Corp/The
386
38
$
132
Internet
-
22.07%
Alphabet
Inc
-
A
Shares
(b)
28
49
Alphabet
Inc
-
C
Shares
(b)
166
291
Amazon.com
Inc
(b)
143
466
Facebook
Inc
(b)
625
171
Netflix
Inc
(b)
207
112
Spotify
Technology
SA
(b)
87
27
VeriSign
Inc
(b)
116
25
$
1,141
Lodging
-
1.92%
Hilton
Worldwide
Holdings
Inc
885
99
Media
-
3.95%
Charter
Communications
Inc
(b)
274
181
Liberty
Broadband
Corp
-
C
Shares
(b)
143
23
$
204
Private
Equity
-
5.47%
Brookfield
Asset
Management
Inc
5,905
244
KKR
&
Co
Inc
978
39
$
283
REITs
-
3.83%
American
Tower
Corp
883
198
Retail
-
3.69%
CarMax
Inc
(b)
362
34
Costco
Wholesale
Corp
108
41
O'Reilly
Automotive
Inc
(b)
80
36
Starbucks
Corp
741
80
$
191
Semiconductors
-
1.51%
NVIDIA
Corp
150
78
Software
-
23.46%
Adobe
Inc
(b)
478
239
Autodesk
Inc
(b)
291
89
Intuit
Inc
626
238
Microsoft
Corp
1,910
425
salesforce.com
Inc
(b)
996
222
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
Snowflake
Inc
-
Class
A
(b)
2
$
—
$
1,213
TOTAL
COMMON
STOCKS
$
5,167
Total
Investments
$
5,173
Other
Assets
and
Liabilities
- (0.06)%
(3)
TOTAL
NET
ASSETS
-
100.00%
$
5,170
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary (unaudited)
Sector
Percent
Communications
26.02%
Technology
24.97%
Financial
22.97%
Consumer,
Non-cyclical
11.43%
Industrial
6.27%
Consumer,
Cyclical
5.61%
Basic
Materials
2.67%
Money
Market
Funds
0.12%
Other
Assets
and
Liabilities
(0.06)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Blue
Chip
Account
December
31,
2020
See
accompanying
notes.
104
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
—
$
5,000
$
4,994
$
6
$
—
$
5,000
$
4,994
$
6
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
105
INVESTMENT
COMPANIES
-
10.34%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
1.64%
iShares
iBoxx
$
Investment
Grade
Corporate
Bond
ETF
325,000
$
44,893
Money
Market
Funds
-
8.70%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.01%
(a),(b)
4,906,329
4,906
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
233,150,460
233,150
$
238,05
6
TOTAL
INVESTMENT
COMPANIES
$
282,949
BONDS
-
32.93%
Principal
Amount
(000's)
Value
(000's)
Advertising
-
0.02%
Interpublic
Group
of
Cos
Inc/The
5.40%,
10/01/2048
$
300
$
411
Omnicom
Group
Inc
2.45%,
04/30/2030
160
170
$
581
Aerospace
&
Defense
-
0.53%
Boeing
Co/The
2.75%,
02/01/2026
175
184
2.95%,
02/01/2030
170
176
3.25%,
02/01/2028
700
751
3.25%,
02/01/2035
170
174
3.63%,
02/01/2031
175
192
3.75%,
02/01/2050
235
247
3.95%,
08/01/2059
315
337
4.51%,
05/01/2023
970
1,048
4.88%,
05/01/2025
620
707
5.04%,
05/01/2027
310
362
5.15%,
05/01/2030
310
375
5.71%,
05/01/2040
310
402
5.81%,
05/01/2050
505
696
5.88%,
02/15/2040
154
196
General
Dynamics
Corp
2.25%,
11/15/2022
15
15
3.25%,
04/01/2025
80
88
3.38%,
05/15/2023
300
321
3.50%,
04/01/2027
160
184
3.75%,
05/15/2028
300
351
4.25%,
04/01/2040
160
208
L3Harris
Technologies
Inc
1.80%,
01/15/2031
90
91
2.90%,
12/15/2029
60
66
3.83%,
04/27/2025
500
561
Lockheed
Martin
Corp
1.85%,
06/15/2030
55
58
3.55%,
01/15/2026
240
273
3.60%,
03/01/2035
350
423
3.80%,
03/01/2045
25
31
4.07%,
12/15/2042
47
61
4.09%,
09/15/2052
389
515
4.70%,
05/15/2046
25
35
Northrop
Grumman
Corp
2.55%,
10/15/2022
380
394
3.20%,
02/01/2027
500
563
3.85%,
04/15/2045
500
610
4.03%,
10/15/2047
25
31
Raytheon
Technologies
Corp
2.25%,
07/01/2030
160
170
3.50%,
03/15/2027
800
913
3.75%,
11/01/2046
30
36
4.05%,
05/04/2047
300
374
4.13%,
11/16/2028
435
519
4.15%,
05/15/2045
40
51
4.35%,
04/15/2047
40
53
4.50%,
06/01/2042
600
782
4.63%,
11/16/2048
210
285
4.88%,
10/15/2040
154
201
5.70%,
04/15/2040
51
75
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Aerospace
&
Defense
(continued)
Raytheon
Technologies
Corp
(continued)
6.13%,
07/15/2038
$
18
$
27
6.70%,
08/01/2028
175
238
$
14,450
Agriculture
-
0.35%
Altria
Group
Inc
2.35%,
05/06/2025
160
170
2.85%,
08/09/2022
40
42
3.40%,
05/06/2030
325
365
3.88%,
09/16/2046
60
63
4.00%,
01/31/2024
700
769
4.80%,
02/14/2029
340
407
5.80%,
02/14/2039
380
501
6.20%,
02/14/2059
310
435
Archer-Daniels-Midland
Co
2.50%,
08/11/2026
850
927
BAT
Capital
Corp
2.26%,
03/25/2028
170
176
2.73%,
03/25/2031
170
176
2.79%,
09/06/2024
245
262
3.46%,
09/06/2029
245
267
3.56%,
08/15/2027
800
891
3.98%,
09/25/2050
170
177
4.54%,
08/15/2047
325
361
BAT
International
Finance
PLC
1.67%,
03/25/2026
170
174
Philip
Morris
International
Inc
0.88%,
05/01/2026
175
176
1.75%,
11/01/2030
175
177
2.38%,
08/17/2022
30
31
2.75%,
02/25/2026
310
338
3.25%,
11/10/2024
30
33
3.38%,
08/11/2025
375
417
4.13%,
03/04/2043
300
367
4.25%,
11/10/2044
30
38
4.38%,
11/15/2041
61
76
4.50%,
03/20/2042
400
506
4.88%,
11/15/2043
35
47
Reynolds
American
Inc
4.45%,
06/12/2025
250
285
4.85%,
09/15/2023
350
390
5.70%,
08/15/2035
25
32
5.85%,
08/15/2045
415
531
$
9,607
Airlines
-
0.05%
American
Airlines
2019-1
Class
AA
Pass
Through
Trust
3.15%,
08/15/2033
164
161
Delta
Air
Lines
2020-1
Class
AA
Pass
Through
Trust
2.00%,
06/10/2028
310
309
Southwest
Airlines
Co
5.25%,
05/04/2025
480
556
United
Airlines
2014-2
Class
A
Pass
Through
Trust
3.75%,
03/03/2028
144
146
United
Airlines
2019-2
Class
AA
Pass
Through
Trust
2.70%,
11/01/2033
79
76
$
1,248
Apparel
-
0.05%
NIKE
Inc
2.25%,
05/01/2023
200
208
2.40%,
03/27/2025
160
173
2.75%,
03/27/2027
160
177
3.25%,
03/27/2040
160
186
3.38%,
11/01/2046
350
415
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
106
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Apparel
(continued)
NIKE
Inc
(continued)
3.63%,
05/01/2043
$
200
$
244
$
1,403
Automobile
Asset
Backed
Securities
-
0.13%
BMW
Vehicle
Owner
Trust
2018-A
2.51%,
06/25/2024
1,500
1,521
Toyota
Auto
Receivables
2018-A
Owner
Trust
2.35%,
05/16/2022
247
248
World
Omni
Auto
Receivables
Trust
2018-A
2.50%,
04/17/2023
255
257
World
Omni
Automobile
Lease
Securitization
Trust
2019-A
2.94%,
05/16/2022
1,500
1,514
$
3,540
Automobile
Manufacturers
-
0.39%
American
Honda
Finance
Corp
0.65%,
09/08/2023
170
171
1.20%,
07/08/2025
165
169
1.95%,
05/20/2022
155
158
1.95%,
05/10/2023
160
166
2.05%,
01/10/2023
490
507
2.15%,
09/10/2024
445
471
Daimler
Finance
North
America
LLC
8.50%,
01/18/2031
127
201
General
Motors
Co
4.88%,
10/02/2023
675
749
5.00%,
10/01/2028
400
476
5.00%,
04/01/2035
200
241
5.40%,
04/01/2048
360
453
6.75%,
04/01/2046
25
36
General
Motors
Financial
Co
Inc
1.70%,
08/18/2023
330
339
3.25%,
01/05/2023
400
419
3.45%,
01/14/2022
30
31
3.45%,
04/10/2022
325
334
3.55%,
07/08/2022
500
522
3.70%,
05/09/2023
325
344
4.30%,
07/13/2025
325
364
4.35%,
01/17/2027
305
347
5.10%,
01/17/2024
500
560
PACCAR
Financial
Corp
0.35%,
08/11/2023
165
165
1.80%,
02/06/2025
170
178
Toyota
Motor
Corp
3.67%,
07/20/2028
200
235
Toyota
Motor
Credit
Corp
0.35%,
10/14/2022
410
411
0.50%,
08/14/2023
165
166
0.80%,
10/16/2025
210
212
1.15%,
05/26/2022
155
157
1.15%,
08/13/2027
165
166
1.35%,
08/25/2023
155
159
1.80%,
02/13/2025
160
168
2.00%,
10/07/2024
165
174
2.25%,
10/18/2023
350
368
3.30%,
01/12/2022
77
79
3.35%,
01/08/2024
400
434
3.45%,
09/20/2023
400
433
$
10,563
Automobile
Parts
&
Equipment
-
0.02%
BorgWarner
Inc
3.38%,
03/15/2025
(e)
500
551
Banks
-
5.83%
Australia
&
New
Zealand
Banking
Group
Ltd/
New
York
NY
2.05%,
11/21/2022
250
259
2.63%,
05/19/2022
250
258
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Banco
Santander
SA
2.75%,
05/28/2025
$
200
$
213
2.75%,
12/03/2030
400
412
3.13%,
02/23/2023
600
632
3.49%,
05/28/2030
200
224
Bank
of
America
Corp
0.81%,
10/24/2024
(f)
340
343
United
States
Secured
Overnight
Financing
Rate
+
0.74%
0.98%,
09/25/2025
(f)
170
172
United
States
Secured
Overnight
Financing
Rate
+
0.91%
1.32%,
06/19/2026
(f)
320
327
United
States
Secured
Overnight
Financing
Rate
+
1.15%
1.90%,
07/23/2031
(f)
750
758
United
States
Secured
Overnight
Financing
Rate
+
1.53%
1.92%,
10/24/2031
(f)
340
344
United
States
Secured
Overnight
Financing
Rate
+
1.37%
2.46%,
10/22/2025
(f)
310
330
3
Month
USD
LIBOR
+
0.87%
2.50%,
02/13/2031
(f)
320
340
3
Month
USD
LIBOR
+
0.99%
2.59%,
04/29/2031
(f)
250
268
United
States
Secured
Overnight
Financing
Rate
+
2.15%
2.68%,
06/19/2041
(f)
1,070
1,115
United
States
Secured
Overnight
Financing
Rate
+
1.93%
2.82%,
07/21/2023
(f)
500
519
3
Month
USD
LIBOR
+
0.93%
2.83%,
10/24/2051
(f)
130
136
United
States
Secured
Overnight
Financing
Rate
+
1.88%
3.00%,
12/20/2023
(f)
1,389
1,462
3
Month
USD
LIBOR
+
0.79%
3.12%,
01/20/2023
(f)
500
514
3
Month
USD
LIBOR
+
1.16%
3.19%,
07/23/2030
(f)
335
375
3
Month
USD
LIBOR
+
1.18%
3.25%,
10/21/2027
40
45
3.30%,
01/11/2023
330
350
3.42%,
12/20/2028
(f)
1,041
1,176
3
Month
USD
LIBOR
+
1.04%
3.50%,
04/19/2026
795
901
3.59%,
07/21/2028
(f)
500
568
3
Month
USD
LIBOR
+
1.37%
3.82%,
01/20/2028
(f)
400
459
3
Month
USD
LIBOR
+
1.58%
3.86%,
07/23/2024
(f)
300
325
3
Month
USD
LIBOR
+
0.94%
3.88%,
08/01/2025
30
34
3.95%,
04/21/2025
830
936
3.97%,
02/07/2030
(f)
1,000
1,178
3
Month
USD
LIBOR
+
1.21%
4.13%,
01/22/2024
500
554
4.18%,
11/25/2027
560
650
4.20%,
08/26/2024
625
700
4.27%,
07/23/2029
(f)
360
429
3
Month
USD
LIBOR
+
1.31%
4.33%,
03/15/2050
(f)
310
407
3
Month
USD
LIBOR
+
1.52%
4.44%,
01/20/2048
(f)
30
40
3
Month
USD
LIBOR
+
1.99%
5.00%,
01/21/2044
25
35
5.70%,
01/24/2022
580
613
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
107
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Bank
of
America
Corp
(continued)
5.88%,
02/07/2042
$
228
$
347
7.75%,
05/14/2038
250
426
Bank
of
America
NA
6.00%,
10/15/2036
250
374
Bank
of
Montreal
0.45%,
12/08/2023
995
998
1.85%,
05/01/2025
150
157
2.55%,
11/06/2022
15
16
3.30%,
02/05/2024
400
434
Bank
of
New
York
Mellon
Corp/The
0.35%,
12/07/2023
150
150
1.60%,
04/24/2025
140
146
1.85%,
01/27/2023
790
815
1.95%,
08/23/2022
850
874
2.10%,
10/24/2024
775
823
Bank
of
Nova
Scotia/The
0.55%,
09/15/2023
170
171
1.30%,
06/11/2025
160
164
2.00%,
11/15/2022
160
165
2.45%,
09/19/2022
30
31
2.70%,
03/07/2022
15
15
2.70%,
08/03/2026
170
187
3.40%,
02/11/2024
400
435
4.50%,
12/16/2025
500
583
Barclays
PLC
1.01%,
12/10/2024
(f)
200
201
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.80%
2.65%,
06/24/2031
(f)
320
333
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.90%
3.56%,
09/23/2035
(f)
200
217
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.90%
3.68%,
01/10/2023
1,700
1,752
4.34%,
01/10/2028
1,030
1,183
4.38%,
01/12/2026
200
230
4.97%,
05/16/2029
(f)
210
252
3
Month
USD
LIBOR
+
1.90%
BNP
Paribas
SA
4.25%,
10/15/2024
750
844
BPCE
SA
4.00%,
04/15/2024
250
277
Canadian
Imperial
Bank
of
Commerce
0.50%,
12/14/2023
185
186
0.95%,
06/23/2023
70
71
2.61%,
07/22/2023
(f)
250
259
3
Month
USD
LIBOR
+
0.79%
3.50%,
09/13/2023
500
543
Citibank
NA
3.65%,
01/23/2024
500
547
Citigroup
Inc
0.78%,
10/30/2024
(f)
255
257
United
States
Secured
Overnight
Financing
Rate
+
0.69%
1.68%,
05/15/2024
(f)
160
165
United
States
Secured
Overnight
Financing
Rate
+
1.67%
2.57%,
06/03/2031
(f)
320
341
United
States
Secured
Overnight
Financing
Rate
+
2.11%
2.67%,
01/29/2031
(f)
315
338
United
States
Secured
Overnight
Financing
Rate
+
1.15%
2.70%,
10/27/2022
900
936
2.75%,
04/25/2022
15
15
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Citigroup
Inc
(continued)
2.88%,
07/24/2023
(f)
$
200
$
208
3
Month
USD
LIBOR
+
0.95%
2.98%,
11/05/2030
(f)
155
171
United
States
Secured
Overnight
Financing
Rate
+
1.42%
3.20%,
10/21/2026
770
861
3.50%,
05/15/2023
600
643
3.67%,
07/24/2028
(f)
1,200
1,360
3
Month
USD
LIBOR
+
1.39%
3.75%,
06/16/2024
500
553
3.89%,
01/10/2028
(f)
400
458
3
Month
USD
LIBOR
+
1.56%
4.05%,
07/30/2022
200
211
4.07%,
04/23/2029
(f)
240
281
3
Month
USD
LIBOR
+
1.19%
4.28%,
04/24/2048
(f)
330
432
3
Month
USD
LIBOR
+
1.84%
4.30%,
11/20/2026
525
611
4.40%,
06/10/2025
780
892
4.45%,
09/29/2027
20
24
4.50%,
01/14/2022
454
473
4.60%,
03/09/2026
60
70
4.65%,
07/30/2045
222
297
5.30%,
05/06/2044
25
35
5.50%,
09/13/2025
325
391
5.88%,
01/30/2042
328
498
6.63%,
06/15/2032
112
159
6.68%,
09/13/2043
30
49
8.13%,
07/15/2039
132
236
Cooperatieve
Rabobank
UA
3.88%,
02/08/2022
328
341
3.95%,
11/09/2022
300
318
5.25%,
05/24/2041
500
737
5.25%,
08/04/2045
250
357
5.75%,
12/01/2043
250
373
Credit
Suisse
AG/New
York
NY
3.63%,
09/09/2024
400
444
Credit
Suisse
Group
AG
3.75%,
03/26/2025
750
833
4.88%,
05/15/2045
500
700
Deutsche
Bank
AG/New
York
NY
2.13%,
11/24/2026
(f)
200
205
United
States
Secured
Overnight
Financing
Rate
+
1.87%
2.22%,
09/18/2024
(f)
170
175
United
States
Secured
Overnight
Financing
Rate
+
2.16%
4.10%,
01/13/2026
500
557
5.00%,
02/14/2022
400
418
Discover
Bank
2.45%,
09/12/2024
320
338
2.70%,
02/06/2030
250
265
Fifth
Third
Bancorp
2.38%,
01/28/2025
85
90
4.30%,
01/16/2024
30
33
Fifth
Third
Bank
NA
1.80%,
01/30/2023
250
257
3.85%,
03/15/2026
700
793
Goldman
Sachs
Group
Inc/The
0.63%,
11/17/2023
(f)
365
366
United
States
Secured
Overnight
Financing
Rate
+
0.54%
1.09%,
12/09/2026
(f)
315
318
United
States
Secured
Overnight
Financing
Rate
+
0.79%
2.60%,
02/07/2030
1,240
1,334
3.00%,
04/26/2022
25
25
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
108
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Goldman
Sachs
Group
Inc/The
(continued)
3.63%,
02/20/2024
$
1,000
$
1,088
3.75%,
05/22/2025
30
34
3.81%,
04/23/2029
(f)
2,000
2,315
3
Month
USD
LIBOR
+
1.16%
3.85%,
01/26/2027
60
68
4.02%,
10/31/2038
(f)
750
915
3
Month
USD
LIBOR
+
1.37%
4.22%,
05/01/2029
(f)
415
492
3
Month
USD
LIBOR
+
1.30%
4.25%,
10/21/2025
1,280
1,468
4.41%,
04/23/2039
(f)
180
230
3
Month
USD
LIBOR
+
1.43%
4.80%,
07/08/2044
25
35
5.15%,
05/22/2045
310
432
5.75%,
01/24/2022
228
241
6.75%,
10/01/2037
530
811
HSBC
Holdings
PLC
1.59%,
05/24/2027
(f)
400
407
United
States
Secured
Overnight
Financing
Rate
+
1.29%
1.65%,
04/18/2026
(f)
250
256
United
States
Secured
Overnight
Financing
Rate
+
1.54%
2.01%,
09/22/2028
(f)
335
343
United
States
Secured
Overnight
Financing
Rate
+
1.73%
2.10%,
06/04/2026
(f)
320
332
United
States
Secured
Overnight
Financing
Rate
+
1.93%
2.36%,
08/18/2031
(f)
200
207
United
States
Secured
Overnight
Financing
Rate
+
1.95%
2.63%,
11/07/2025
(f)
230
245
3
Month
USD
LIBOR
+
1.14%
2.85%,
06/04/2031
(f)
200
215
United
States
Secured
Overnight
Financing
Rate
+
2.39%
3.60%,
05/25/2023
500
538
3.90%,
05/25/2026
395
451
3.95%,
05/18/2024
(f)
400
431
3
Month
USD
LIBOR
+
0.99%
3.97%,
05/22/2030
(f)
400
462
3
Month
USD
LIBOR
+
1.61%
4.04%,
03/13/2028
(f)
500
571
3
Month
USD
LIBOR
+
1.55%
4.25%,
03/14/2024
500
552
4.29%,
09/12/2026
(f)
500
570
3
Month
USD
LIBOR
+
1.35%
4.58%,
06/19/2029
(f)
365
432
3
Month
USD
LIBOR
+
1.53%
4.95%,
03/31/2030
200
251
5.25%,
03/14/2044
300
418
6.10%,
01/14/2042
174
265
6.50%,
05/02/2036
420
608
Huntington
Bancshares
Inc/OH
2.30%,
01/14/2022
229
233
2.55%,
02/04/2030
110
118
Huntington
National
Bank/The
1.80%,
02/03/2023
250
257
3.55%,
10/06/2023
400
433
ING
Groep
NV
3.55%,
04/09/2024
400
437
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
JPMorgan
Chase
&
Co
0.65%,
09/16/2024
(f)
$
920
$
925
United
States
Secured
Overnight
Financing
Rate
+
0.60%
1.05%,
11/19/2026
(f)
360
364
United
States
Secured
Overnight
Financing
Rate
+
0.80%
1.51%,
06/01/2024
(f)
815
837
United
States
Secured
Overnight
Financing
Rate
+
1.46%
1.76%,
11/19/2031
(f)
360
363
United
States
Secured
Overnight
Financing
Rate
+
1.11%
2.00%,
03/13/2026
(f)
160
168
United
States
Secured
Overnight
Financing
Rate
+
1.59%
2.08%,
04/22/2026
(f)
460
486
United
States
Secured
Overnight
Financing
Rate
+
1.85%
2.18%,
06/01/2028
(f)
815
865
United
States
Secured
Overnight
Financing
Rate
+
1.89%
2.30%,
10/15/2025
(f)
280
297
United
States
Secured
Overnight
Financing
Rate
+
1.16%
2.52%,
04/22/2031
(f)
730
785
United
States
Secured
Overnight
Financing
Rate
+
2.04%
2.53%,
11/19/2041
(f)
180
185
United
States
Secured
Overnight
Financing
Rate
+
1.51%
2.74%,
10/15/2030
(f)
260
283
United
States
Secured
Overnight
Financing
Rate
+
1.51%
2.78%,
04/25/2023
(f)
250
258
3
Month
USD
LIBOR
+
0.94%
2.96%,
05/13/2031
(f)
725
795
United
States
Secured
Overnight
Financing
Rate
+
2.52%
3.11%,
04/22/2041
(f)
730
816
United
States
Secured
Overnight
Financing
Rate
+
2.46%
3.11%,
04/22/2051
(f)
730
813
United
States
Secured
Overnight
Financing
Rate
+
2.44%
3.20%,
01/25/2023
600
635
3.21%,
04/01/2023
(f)
1,400
1,451
3
Month
USD
LIBOR
+
0.70%
3.25%,
09/23/2022
320
337
3.30%,
04/01/2026
500
560
3.38%,
05/01/2023
400
427
3.51%,
01/23/2029
(f)
400
455
3
Month
USD
LIBOR
+
0.95%
3.63%,
12/01/2027
25
28
3.80%,
07/23/2024
(f)
270
293
3
Month
USD
LIBOR
+
0.89%
3.88%,
02/01/2024
20
22
3.88%,
09/10/2024
500
560
3.88%,
07/24/2038
(f)
500
609
3
Month
USD
LIBOR
+
1.36%
3.96%,
11/15/2048
(f)
400
503
3
Month
USD
LIBOR
+
1.38%
4.01%,
04/23/2029
(f)
270
317
3
Month
USD
LIBOR
+
1.12%
4.03%,
07/24/2048
(f)
30
38
3
Month
USD
LIBOR
+
1.46%
4.20%,
07/23/2029
(f)
300
359
3
Month
USD
LIBOR
+
1.26%
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
109
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
JPMorgan
Chase
&
Co
(continued)
4.25%,
10/01/2027
$
10
$
12
4.85%,
02/01/2044
20
29
4.95%,
06/01/2045
55
78
5.40%,
01/06/2042
102
152
5.60%,
07/15/2041
154
233
5.63%,
08/16/2043
375
565
6.40%,
05/15/2038
200
310
KeyBank
NA/Cleveland
OH
0.42%,
01/03/2024
(f)
250
250
United
States
Secured
Overnight
Financing
Rate
+
0.34%
1.25%,
03/10/2023
250
255
KeyCorp
2.25%,
04/06/2027
410
437
2.55%,
10/01/2029
310
336
Korea
Development
Bank/The
0.80%,
04/27/2026
350
351
1.75%,
02/18/2025
500
521
Kreditanstalt
fuer
Wiederaufbau
0.00%,
04/18/2036
(d)
380
304
0.00%,
06/29/2037
(d)
200
158
0.25%,
10/19/2023
340
340
0.38%,
07/18/2025
1,630
1,626
2.00%,
05/02/2025
380
407
2.13%,
03/07/2022
500
512
2.13%,
06/15/2022
960
987
2.13%,
01/17/2023
1,800
1,871
2.38%,
12/29/2022
600
626
2.50%,
11/20/2024
300
325
2.63%,
01/25/2022
1,257
1,290
2.88%,
04/03/2028
275
317
Landwirtschaftliche
Rentenbank
0.88%,
09/03/2030
330
325
2.00%,
01/13/2025
300
319
2.38%,
06/10/2025
1,200
1,303
Lloyds
Banking
Group
PLC
3.57%,
11/07/2028
(f)
630
711
3
Month
USD
LIBOR
+
1.21%
3.75%,
01/11/2027
515
584
4.05%,
08/16/2023
400
437
4.45%,
05/08/2025
400
459
4.65%,
03/24/2026
500
575
5.30%,
12/01/2045
200
276
Mitsubishi
UFJ
Financial
Group
Inc
1.41%,
07/17/2025
200
205
2.05%,
07/17/2030
250
261
2.19%,
02/25/2025
200
211
2.56%,
02/25/2030
200
216
2.62%,
07/18/2022
700
724
2.76%,
09/13/2026
400
440
2.80%,
07/18/2024
650
697
3.20%,
07/18/2029
700
789
3.75%,
07/18/2039
550
670
3.76%,
07/26/2023
300
325
3.85%,
03/01/2026
350
402
Mizuho
Financial
Group
Inc
1.24%,
07/10/2024
(f)
200
203
3
Month
USD
LIBOR
+
0.99%
2.20%,
07/10/2031
(f)
200
207
3
Month
USD
LIBOR
+
1.51%
2.23%,
05/25/2026
(f)
200
210
3
Month
USD
LIBOR
+
0.83%
2.72%,
07/16/2023
(f)
600
620
3
Month
USD
LIBOR
+
0.84%
2.84%,
07/16/2025
(f)
1,000
1,064
3
Month
USD
LIBOR
+
0.98%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Mizuho
Financial
Group
Inc
(continued)
3.15%,
07/16/2030
(f)
$
400
$
444
3
Month
USD
LIBOR
+
1.13%
Morgan
Stanley
0.56%,
11/10/2023
(f)
360
361
United
States
Secured
Overnight
Financing
Rate
+
0.47%
0.86%,
10/21/2025
(f)
95
96
United
States
Secured
Overnight
Financing
Rate
+
0.75%
0.99%,
12/10/2026
(f)
280
282
United
States
Secured
Overnight
Financing
Rate
+
0.72%
1.79%,
02/13/2032
(f)
1,360
1,370
United
States
Secured
Overnight
Financing
Rate
+
1.03%
2.19%,
04/28/2026
(f)
475
502
United
States
Secured
Overnight
Financing
Rate
+
1.99%
2.72%,
07/22/2025
(f)
250
267
United
States
Secured
Overnight
Financing
Rate
+
1.15%
2.75%,
05/19/2022
300
310
3.13%,
01/23/2023
300
317
3.13%,
07/27/2026
1,330
1,487
3.59%,
07/22/2028
(f)
30
34
3
Month
USD
LIBOR
+
1.34%
3.63%,
01/20/2027
30
34
3.70%,
10/23/2024
25
28
3.75%,
02/25/2023
1,230
1,319
3.77%,
01/24/2029
(f)
360
417
3
Month
USD
LIBOR
+
1.14%
3.88%,
04/29/2024
30
33
3.95%,
04/23/2027
50
58
3.97%,
07/22/2038
(f)
15
18
3
Month
USD
LIBOR
+
1.46%
4.00%,
07/23/2025
30
34
4.10%,
05/22/2023
380
412
4.30%,
01/27/2045
50
67
4.35%,
09/08/2026
30
35
4.38%,
01/22/2047
30
41
4.88%,
11/01/2022
30
32
5.00%,
11/24/2025
525
628
5.60%,
03/24/2051
(f)
500
805
United
States
Secured
Overnight
Financing
Rate
+
4.84%
6.38%,
07/24/2042
620
1,013
National
Australia
Bank
Ltd/New
York
1.88%,
12/13/2022
250
258
2.50%,
05/22/2022
570
587
Natwest
Group
PLC
3.88%,
09/12/2023
200
217
4.80%,
04/05/2026
500
590
4.89%,
05/18/2029
(f)
400
481
3
Month
USD
LIBOR
+
1.75%
5.08%,
01/27/2030
(f)
1,000
1,229
3
Month
USD
LIBOR
+
1.91%
Northern
Trust
Corp
3.95%,
10/30/2025
500
577
Oesterreichische
Kontrollbank
AG
0.38%,
09/17/2025
340
338
2.88%,
03/13/2023
1,000
1,057
PNC
Bank
NA
1.74%,
02/24/2023
(f)
250
254
3
Month
USD
LIBOR
+
0.00%
2.70%,
10/22/2029
250
275
3.80%,
07/25/2023
400
434
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
110
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
PNC
Financial
Services
Group
Inc/The
2.20%,
11/01/2024
$
130
$
138
2.55%,
01/22/2030
160
175
2.60%,
07/23/2026
140
154
3.45%,
04/23/2029
300
346
Regions
Financial
Corp
3.80%,
08/14/2023
1,000
1,085
Royal
Bank
of
Canada
0.50%,
10/26/2023
170
171
1.95%,
01/17/2023
720
744
2.25%,
11/01/2024
310
330
2.55%,
07/16/2024
125
134
Santander
Holdings
USA
Inc
4.50%,
07/17/2025
780
885
Santander
UK
Group
Holdings
PLC
1.53%,
08/21/2026
(f)
200
203
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.25%
3.57%,
01/10/2023
520
536
Santander
UK
PLC
2.10%,
01/13/2023
475
491
State
Street
Corp
2.35%,
11/01/2025
(f)
365
390
United
States
Secured
Overnight
Financing
Rate
+
0.94%
2.40%,
01/24/2030
160
175
2.65%,
05/19/2026
60
66
3.10%,
05/15/2023
325
346
3.55%,
08/18/2025
225
255
3.70%,
11/20/2023
10
11
Sumitomo
Mitsui
Financial
Group
Inc
1.47%,
07/08/2025
300
307
2.13%,
07/08/2030
930
969
2.14%,
09/23/2030
170
171
2.35%,
01/15/2025
200
212
2.70%,
07/16/2024
420
448
2.75%,
01/15/2030
200
218
3.04%,
07/16/2029
200
222
3.36%,
07/12/2027
750
849
3.45%,
01/11/2027
140
158
3.78%,
03/09/2026
500
569
Toronto-Dominion
Bank/The
0.45%,
09/11/2023
670
672
0.75%,
06/12/2023
330
333
1.15%,
06/12/2025
330
337
1.90%,
12/01/2022
115
119
Truist
Bank
1.25%,
03/09/2023
250
255
1.50%,
03/10/2025
250
259
3.63%,
09/16/2025
250
282
3.80%,
10/30/2026
250
288
Truist
Financial
Corp
1.13%,
08/03/2027
465
468
1.20%,
08/05/2025
(e)
665
683
1.95%,
06/05/2030
(e)
665
690
2.50%,
08/01/2024
350
373
2.70%,
01/27/2022
30
31
US
Bancorp
1.38%,
07/22/2030
415
416
2.40%,
07/30/2024
190
203
2.63%,
01/24/2022
55
56
2.95%,
07/15/2022
230
239
3.00%,
03/15/2022
158
163
3.00%,
07/30/2029
950
1,061
3.15%,
04/27/2027
25
28
US
Bank
NA/Cincinnati
OH
2.05%,
01/21/2025
300
317
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Wells
Fargo
&
Co
1.65%,
06/02/2024
(f)
$
820
$
843
United
States
Secured
Overnight
Financing
Rate
+
1.60%
2.16%,
02/11/2026
(f)
645
678
3
Month
USD
LIBOR
+
0.75%
2.19%,
04/30/2026
(f)
830
874
United
States
Secured
Overnight
Financing
Rate
+
2.00%
2.39%,
06/02/2028
(f)
820
873
United
States
Secured
Overnight
Financing
Rate
+
2.10%
2.41%,
10/30/2025
(f)
1,310
1,385
3
Month
USD
LIBOR
+
0.83%
3.00%,
04/22/2026
500
550
3.00%,
10/23/2026
530
587
3.07%,
01/24/2023
35
36
3.07%,
04/30/2041
(f)
480
522
United
States
Secured
Overnight
Financing
Rate
+
2.53%
3.45%,
02/13/2023
215
228
3.50%,
03/08/2022
180
187
3.58%,
05/22/2028
(f)
500
567
3
Month
USD
LIBOR
+
1.31%
4.10%,
06/03/2026
600
688
4.40%,
06/14/2046
385
482
4.48%,
04/04/2031
(f)
245
299
3
Month
USD
LIBOR
+
3.77%
4.65%,
11/04/2044
30
38
4.90%,
11/17/2045
520
693
5.01%,
04/04/2051
(f)
325
462
3
Month
USD
LIBOR
+
4.24%
5.38%,
02/07/2035
500
684
5.38%,
11/02/2043
20
28
5.61%,
01/15/2044
45
64
5.95%,
12/01/2086
200
268
Wells
Fargo
Bank
NA
5.95%,
08/26/2036
750
1,070
6.60%,
01/15/2038
250
381
Westpac
Banking
Corp
2.00%,
01/13/2023
1,155
1,196
2.35%,
02/19/2025
155
166
2.65%,
01/16/2030
155
174
2.80%,
01/11/2022
500
513
2.89%,
02/04/2030
(f)
160
168
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.35%
2.96%,
11/16/2040
80
85
4.11%,
07/24/2034
(f)
165
188
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.00%
4.42%,
07/24/2039
165
211
$
159,329
Beverages
-
0.74%
Anheuser-Busch
Cos
LLC
/
Anheuser-Busch
InBev
Worldwide
Inc
3.65%,
02/01/2026
825
933
4.70%,
02/01/2036
1,030
1,308
4.90%,
02/01/2046
890
1,157
Anheuser-Busch
InBev
Finance
Inc
4.63%,
02/01/2044
25
31
Anheuser-Busch
InBev
Worldwide
Inc
3.50%,
06/01/2030
295
342
3.75%,
07/15/2042
100
114
4.35%,
06/01/2040
295
362
4.50%,
06/01/2050
720
909
4.75%,
01/23/2029
560
692
4.90%,
01/23/2031
750
955
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
111
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Beverages
(continued)
Anheuser-Busch
InBev
Worldwide
Inc
(continued)
5.45%,
01/23/2039
$
500
$
679
5.80%,
01/23/2059
595
916
8.20%,
01/15/2039
51
88
Coca-Cola
Co/The
1.00%,
03/15/2028
340
342
1.38%,
03/15/2031
340
340
1.45%,
06/01/2027
260
269
1.65%,
06/01/2030
260
267
1.75%,
09/06/2024
190
199
2.13%,
09/06/2029
165
177
2.50%,
06/01/2040
260
277
2.50%,
03/15/2051
170
175
2.60%,
06/01/2050
260
274
2.95%,
03/25/2025
325
358
3.38%,
03/25/2027
160
183
Constellation
Brands
Inc
3.15%,
08/01/2029
630
702
3.20%,
02/15/2023
450
476
Diageo
Capital
PLC
2.13%,
10/24/2024
200
211
2.13%,
04/29/2032
200
211
2.38%,
10/24/2029
200
215
2.63%,
04/29/2023
10
10
5.88%,
09/30/2036
139
200
Diageo
Investment
Corp
2.88%,
05/11/2022
200
207
Fomento
Economico
Mexicano
SAB
de
CV
3.50%,
01/16/2050
160
178
Keurig
Dr
Pepper
Inc
3.13%,
12/15/2023
500
538
4.06%,
05/25/2023
425
462
4.99%,
05/25/2038
600
803
Molson
Coors
Beverage
Co
3.00%,
07/15/2026
530
578
5.00%,
05/01/2042
50
63
PepsiCo
Inc
0.40%,
10/07/2023
125
126
0.75%,
05/01/2023
95
96
1.40%,
02/25/2031
165
166
1.63%,
05/01/2030
95
97
2.38%,
10/06/2026
670
730
2.63%,
07/29/2029
170
188
2.75%,
03/05/2022
593
610
2.85%,
02/24/2026
500
554
2.88%,
10/15/2049
160
179
3.10%,
07/17/2022
15
16
3.38%,
07/29/2049
705
855
3.60%,
08/13/2042
350
428
$
20,246
Biotechnology
-
0.32%
Amgen
Inc
1.90%,
02/21/2025
160
168
2.20%,
02/21/2027
1,090
1,169
2.45%,
02/21/2030
160
171
2.60%,
08/19/2026
500
546
2.65%,
05/11/2022
40
41
3.15%,
02/21/2040
860
947
3.38%,
02/21/2050
160
179
4.40%,
05/01/2045
40
51
4.66%,
06/15/2051
300
409
Baxalta
Inc
4.00%,
06/23/2025
50
56
5.25%,
06/23/2045
130
178
Biogen
Inc
2.25%,
05/01/2030
115
120
5.20%,
09/15/2045
540
733
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Biotechnology
(continued)
Gilead
Sciences
Inc
1.65%,
10/01/2030
$
165
$
166
2.60%,
10/01/2040
85
86
2.80%,
10/01/2050
165
164
2.95%,
03/01/2027
530
582
3.25%,
09/01/2022
60
63
4.00%,
09/01/2036
300
362
4.15%,
03/01/2047
70
86
4.60%,
09/01/2035
500
646
4.75%,
03/01/2046
195
258
4.80%,
04/01/2044
500
660
Regeneron
Pharmaceuticals
Inc
1.75%,
09/15/2030
165
163
Royalty
Pharma
PLC
0.75%,
09/02/2023
(g)
160
161
1.75%,
09/02/2027
(g)
310
319
2.20%,
09/02/2030
(g)
160
164
3.30%,
09/02/2040
(g)
160
168
$
8,816
Building
Materials
-
0.09%
Carrier
Global
Corp
1.92%,
02/15/2023
160
165
2.24%,
02/15/2025
160
169
2.49%,
02/15/2027
160
173
2.72%,
02/15/2030
320
342
3.38%,
04/05/2040
160
176
3.58%,
04/05/2050
160
179
Martin
Marietta
Materials
Inc
2.50%,
03/15/2030
160
171
Masco
Corp
4.45%,
04/01/2025
300
344
Owens
Corning
4.40%,
01/30/2048
300
361
Vulcan
Materials
Co
3.50%,
06/01/2030
295
339
$
2,419
Chemicals
-
0.38%
Air
Products
and
Chemicals
Inc
1.85%,
05/15/2027
80
85
2.80%,
05/15/2050
155
170
Albemarle
Corp
5.45%,
12/01/2044
150
180
Dow
Chemical
Co/The
2.10%,
11/15/2030
165
169
3.50%,
10/01/2024
5
5
3.60%,
11/15/2050
165
185
3.63%,
05/15/2026
300
338
4.38%,
11/15/2042
230
282
4.80%,
05/15/2049
300
405
5.25%,
11/15/2041
280
370
9.40%,
05/15/2039
51
92
DuPont
de
Nemours
Inc
4.73%,
11/15/2028
500
616
5.32%,
11/15/2038
500
677
5.42%,
11/15/2048
245
356
Eastman
Chemical
Co
4.80%,
09/01/2042
100
128
Ecolab
Inc
1.30%,
01/30/2031
85
84
2.13%,
08/15/2050
85
82
4.80%,
03/24/2030
160
204
5.50%,
12/08/2041
307
442
Linde
Inc/CT
1.10%,
08/10/2030
165
163
2.20%,
08/15/2022
300
308
LYB
International
Finance
II
BV
3.50%,
03/02/2027
735
820
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
112
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Chemicals
(continued)
LYB
International
Finance
III
LLC
1.25%,
10/01/2025
$
85
$
87
2.25%,
10/01/2030
165
170
3.63%,
04/01/2051
165
180
4.20%,
10/15/2049
125
146
LyondellBasell
Industries
NV
4.63%,
02/26/2055
20
24
5.75%,
04/15/2024
130
150
Mosaic
Co/The
4.25%,
11/15/2023
496
541
Nutrien
Ltd
1.90%,
05/13/2023
95
98
4.20%,
04/01/2029
600
717
4.90%,
06/01/2043
200
256
6.13%,
01/15/2041
250
359
Sherwin-Williams
Co/The
2.30%,
05/15/2030
160
167
2.95%,
08/15/2029
450
495
3.30%,
05/15/2050
160
177
3.80%,
08/15/2049
175
211
Westlake
Chemical
Corp
3.60%,
08/15/2026
350
393
$
10,332
Commercial
Mortgage
Backed
Securities
-
1.59%
BANK
2018-BNK10
3.69%,
02/15/2061
1,850
2,134
CFCRE
Commercial
Mortgage
Trust
2016-C4
3.28%,
05/10/2058
1,300
1,412
Citigroup
Commercial
Mortgage
Trust
2016-GC36
3.62%,
02/10/2049
1,000
1,124
COMM
2013-CCRE8
Mortgage
Trust
3.61%,
06/10/2046
(h)
500
533
COMM
2015-DC1
Mortgage
Trust
3.35%,
02/10/2048
1,000
1,096
COMM
2015-LC19
Mortgage
Trust
3.18%,
02/10/2048
1,000
1,092
COMM
2016-CR28
Mortgage
Trust
3.76%,
02/10/2049
1,000
1,132
CSAIL
2016-C7
Commercial
Mortgage
Trust
3.31%,
11/15/2049
1,000
1,062
Fannie
Mae-Aces
2.42%,
10/25/2026
(h)
1,000
1,088
2.53%,
09/25/2024
939
995
2.71%,
06/25/2025
(h)
2,000
2,179
2.80%,
02/25/2027
(h)
1,100
1,222
2.96%,
02/25/2027
(h)
1,000
1,117
2.98%,
12/25/2027
(h)
1,000
1,119
3.37%,
07/25/2028
(h)
2,025
2,351
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
2.67%,
03/25/2026
1,050
1,152
2.87%,
12/25/2021
480
489
3.06%,
07/25/2023
(h)
750
797
3.06%,
12/25/2024
500
550
3.31%,
05/25/2023
(h)
810
865
3.32%,
02/25/2023
(h)
1,000
1,057
3.41%,
12/25/2026
1,500
1,720
3.53%,
10/25/2023
(h)
1,050
1,134
GS
Mortgage
Securities
Trust
2012-GC6
3.48%,
01/10/2045
273
277
GS
Mortgage
Securities
Trust
2012-GCJ9
2.77%,
11/10/2045
489
504
GS
Mortgage
Securities
Trust
2014-GC18
3.80%,
01/10/2047
454
472
GS
Mortgage
Securities
Trust
2015-GC34
3.51%,
10/10/2048
1,000
1,113
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
GS
Mortgage
Securities
Trust
2017-GS5
3.47%,
03/10/2050
$
2,250
$
2,455
GS
Mortgage
Securities
Trust
2018-GS9
3.99%,
03/10/2051
(h)
1,500
1,757
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C22
3.80%,
09/15/2047
1,000
1,098
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2015-C24
3.48%,
05/15/2048
1,000
1,085
Morgan
Stanley
Capital
I
Trust
2017-H1
3.26%,
06/15/2050
2,500
2,788
SG
Commercial
Mortgage
Securities
Trust
2016-C5
3.06%,
10/10/2048
1,000
1,079
UBS-Barclays
Commercial
Mortgage
Trust
2013-C6
3.24%,
04/10/2046
500
525
Wells
Fargo
Commercial
Mortgage
Trust
2012-LC5
2.92%,
10/15/2045
441
454
Wells
Fargo
Commercial
Mortgage
Trust
2015-C28
3.29%,
05/15/2048
1,631
1,759
WFRBS
Commercial
Mortgage
Trust
2013-C14
2.98%,
06/15/2046
562
574
$
43,360
Commercial
Services
-
0.22%
Automatic
Data
Processing
Inc
3.38%,
09/15/2025
500
561
California
Institute
of
Technology
4.32%,
08/01/2045
80
109
Global
Payments
Inc
2.65%,
02/15/2025
170
182
3.20%,
08/15/2029
170
188
4.15%,
08/15/2049
85
105
Leland
Stanford
Junior
University/The
3.65%,
05/01/2048
287
364
Massachusetts
Institute
of
Technology
3.89%,
07/01/2116
250
317
4.68%,
07/01/2114
250
381
Moody's
Corp
2.55%,
08/18/2060
165
155
PayPal
Holdings
Inc
1.35%,
06/01/2023
160
164
1.65%,
06/01/2025
160
167
2.20%,
09/26/2022
160
165
2.30%,
06/01/2030
160
171
2.40%,
10/01/2024
160
171
2.85%,
10/01/2029
160
178
President
and
Fellows
of
Harvard
College
3.15%,
07/15/2046
350
414
S&P
Global
Inc
1.25%,
08/15/2030
165
163
2.50%,
12/01/2029
120
131
3.25%,
12/01/2049
120
140
University
of
Southern
California
2.81%,
10/01/2050
645
699
5.25%,
10/01/2111
30
48
Verisk
Analytics
Inc
4.00%,
06/15/2025
500
566
William
Marsh
Rice
University
3.57%,
05/15/2045
500
608
$
6,147
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
113
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Computers
-
0.71%
Apple
Inc
0.55%,
08/20/2025
$
525
$
527
0.75%,
05/11/2023
435
440
1.13%,
05/11/2025
550
566
1.25%,
08/20/2030
525
525
1.65%,
05/11/2030
160
165
1.70%,
09/11/2022
195
200
2.15%,
02/09/2022
50
51
2.20%,
09/11/2029
165
178
2.40%,
01/13/2023
300
313
2.40%,
05/03/2023
330
346
2.40%,
08/20/2050
525
537
2.50%,
02/09/2022
530
542
2.55%,
08/20/2060
260
267
2.65%,
05/11/2050
160
170
2.85%,
02/23/2023
30
32
2.90%,
09/12/2027
655
733
2.95%,
09/11/2049
165
185
3.20%,
05/13/2025
445
496
3.20%,
05/11/2027
320
361
3.35%,
02/09/2027
535
610
3.45%,
02/09/2045
30
36
3.75%,
09/12/2047
115
144
3.75%,
11/13/2047
150
189
3.85%,
05/04/2043
300
379
4.65%,
02/23/2046
1,235
1,756
Dell
International
LLC
/
EMC
Corp
5.45%,
06/15/2023
(g)
250
277
6.02%,
06/15/2026
(g)
1,000
1,220
8.10%,
07/15/2036
(g)
255
377
8.35%,
07/15/2046
(g)
335
507
DXC
Technology
Co
4.75%,
04/15/2027
505
578
Hewlett
Packard
Enterprise
Co
1.45%,
04/01/2024
465
478
2.25%,
04/01/2023
165
171
4.45%,
10/02/2023
150
165
4.90%,
10/15/2025
300
351
6.20%,
10/15/2035
80
103
6.35%,
10/15/2045
195
257
HP
Inc
2.20%,
06/17/2025
240
254
3.00%,
06/17/2027
240
265
6.00%,
09/15/2041
154
201
International
Business
Machines
Corp
2.85%,
05/13/2022
400
414
3.30%,
05/15/2026
1,050
1,186
3.38%,
08/01/2023
335
362
3.50%,
05/15/2029
470
544
4.00%,
06/20/2042
35
43
4.15%,
05/15/2039
230
291
4.25%,
05/15/2049
340
447
4.70%,
02/19/2046
185
257
5.60%,
11/30/2039
92
136
5.88%,
11/29/2032
200
289
6.22%,
08/01/2027
351
460
NetApp
Inc
2.38%,
06/22/2027
160
171
$
19,552
Consumer
Products
-
0.06%
Church
&
Dwight
Co
Inc
3.15%,
08/01/2027
300
333
3.95%,
08/01/2047
300
375
Clorox
Co/The
1.80%,
05/15/2030
160
165
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Consumer
Products
(continued)
Kimberly-Clark
Corp
2.40%,
03/01/2022
$
257
$
263
2.75%,
02/15/2026
400
443
2.88%,
02/07/2050
160
180
$
1,759
Cosmetics
&
Personal
Care
-
0.14%
Estee
Lauder
Cos
Inc/The
2.00%,
12/01/2024
240
254
2.38%,
12/01/2029
240
259
Procter
&
Gamble
Co/The
0.55%,
10/29/2025
240
242
1.20%,
10/29/2030
340
341
2.30%,
02/06/2022
441
451
2.80%,
03/25/2027
660
735
3.10%,
08/15/2023
30
32
3.55%,
03/25/2040
160
199
Unilever
Capital
Corp
1.38%,
09/14/2030
170
171
2.13%,
09/06/2029
115
123
2.20%,
05/05/2022
100
102
2.60%,
05/05/2024
510
544
5.90%,
11/15/2032
230
339
$
3,792
Credit
Card
Asset
Backed
Securities
-
0.13%
Capital
One
Multi-Asset
Execution
Trust
2.43%,
01/15/2025
1,500
1,540
Citibank
Credit
Card
Issuance
Trust
2.19%,
11/20/2023
1,000
1,017
2.88%,
01/23/2023
500
501
Synchrony
Credit
Card
Master
Note
Trust
2.97%,
03/15/2024
500
503
$
3,561
Distribution
&
Wholesale
-
0.01%
WW
Grainger
Inc
4.60%,
06/15/2045
250
335
Diversified
Financial
Services
-
0.86%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
2.88%,
08/14/2024
1,035
1,076
3.88%,
01/23/2028
300
323
Air
Lease
Corp
2.25%,
01/15/2023
130
134
2.30%,
02/01/2025
265
274
2.88%,
01/15/2026
385
407
3.25%,
03/01/2025
500
535
3.25%,
10/01/2029
95
100
Ally
Financial
Inc
1.45%,
10/02/2023
185
189
8.00%,
11/01/2031
540
793
American
Express
Co
2.65%,
12/02/2022
400
418
4.05%,
12/03/2042
25
32
American
Express
Credit
Corp
3.30%,
05/03/2027
30
34
Ameriprise
Financial
Inc
4.00%,
10/15/2023
225
248
BlackRock
Inc
2.40%,
04/30/2030
125
137
3.38%,
06/01/2022
200
209
3.50%,
03/18/2024
500
549
Brookfield
Finance
Inc
3.50%,
03/30/2051
165
176
3.90%,
01/25/2028
400
459
Brookfield
Finance
LLC
3.45%,
04/15/2050
160
170
Capital
One
Bank
USA
NA
3.38%,
02/15/2023
340
359
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
114
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
(continued)
Capital
One
Financial
Corp
3.20%,
02/05/2025
$
415
$
453
3.50%,
06/15/2023
114
122
3.75%,
04/24/2024
5
6
3.75%,
07/28/2026
1,000
1,134
4.20%,
10/29/2025
30
34
Charles
Schwab
Corp/The
0.90%,
03/11/2026
315
319
1.65%,
03/11/2031
315
318
3.45%,
02/13/2026
250
283
CME
Group
Inc
3.00%,
09/15/2022
25
26
3.00%,
03/15/2025
530
581
5.30%,
09/15/2043
200
299
Credit
Suisse
USA
Inc
7.13%,
07/15/2032
300
466
Discover
Financial
Services
4.10%,
02/09/2027
500
576
GE
Capital
Funding
LLC
3.45%,
05/15/2025
(g)
200
221
4.05%,
05/15/2027
(g)
200
229
GE
Capital
International
Funding
Co
Unlimited
Co
4.42%,
11/15/2035
2,000
2,387
Intercontinental
Exchange
Inc
0.70%,
06/15/2023
165
166
1.85%,
09/15/2032
125
126
2.10%,
06/15/2030
160
167
2.65%,
09/15/2040
165
169
3.00%,
09/15/2060
165
172
3.75%,
12/01/2025
50
57
4.00%,
10/15/2023
550
604
4.25%,
09/21/2048
150
191
Jefferies
Group
LLC
6.50%,
01/20/2043
200
275
Jefferies
Group
LLC
/
Jefferies
Group
Capital
Finance
Inc
4.15%,
01/23/2030
400
466
Mastercard
Inc
2.00%,
03/03/2025
210
223
2.95%,
11/21/2026
500
559
3.35%,
03/26/2030
80
93
3.85%,
03/26/2050
560
723
Nasdaq
Inc
2.50%,
12/21/2040
185
183
4.25%,
06/01/2024
350
388
Nomura
Holdings
Inc
1.85%,
07/16/2025
330
343
2.68%,
07/16/2030
330
349
ORIX
Corp
3.70%,
07/18/2027
300
342
Synchrony
Financial
4.25%,
08/15/2024
800
884
4.50%,
07/23/2025
20
23
Visa
Inc
1.10%,
02/15/2031
165
163
1.90%,
04/15/2027
475
506
2.00%,
08/15/2050
165
158
2.05%,
04/15/2030
155
166
2.70%,
04/15/2040
155
169
2.80%,
12/14/2022
20
21
3.15%,
12/14/2025
600
673
3.65%,
09/15/2047
85
107
4.15%,
12/14/2035
215
279
4.30%,
12/14/2045
375
514
Western
Union
Co/The
6.20%,
11/17/2036
200
254
$
23,589
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
-
1.97%
AEP
Texas
Inc
2.10%,
07/01/2030
$
165
$
172
3.45%,
01/15/2050
55
62
AEP
Transmission
Co
LLC
4.00%,
12/01/2046
600
747
AES
Corp/The
2.45%,
01/15/2031
(g)
180
182
Alabama
Power
Co
1.45%,
09/15/2030
160
161
4.30%,
01/02/2046
400
528
Ameren
Illinois
Co
1.55%,
11/15/2030
180
181
2.70%,
09/01/2022
300
310
3.25%,
03/15/2050
80
93
American
Electric
Power
Co
Inc
1.00%,
11/01/2025
45
46
2.30%,
03/01/2030
160
167
Appalachian
Power
Co
3.30%,
06/01/2027
400
447
7.00%,
04/01/2038
120
184
Arizona
Public
Service
Co
2.60%,
08/15/2029
270
294
2.65%,
09/15/2050
170
176
4.50%,
04/01/2042
77
99
Berkshire
Hathaway
Energy
Co
1.65%,
05/15/2031
(g)
135
135
2.85%,
05/15/2051
(g)
180
185
3.80%,
07/15/2048
300
359
4.50%,
02/01/2045
550
696
5.15%,
11/15/2043
15
21
6.13%,
04/01/2036
156
231
CenterPoint
Energy
Houston
Electric
LLC
4.25%,
02/01/2049
300
398
CenterPoint
Energy
Inc
2.50%,
09/01/2024
90
96
2.95%,
03/01/2030
125
136
3.70%,
09/01/2049
90
103
CMS
Energy
Corp
3.45%,
08/15/2027
350
395
3.75%,
12/01/2050
(f)
180
184
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.90%
Commonwealth
Edison
Co
3.00%,
03/01/2050
160
175
4.00%,
03/01/2049
300
384
Connecticut
Light
and
Power
Co/The
0.75%,
12/01/2025
180
182
3.20%,
03/15/2027
165
185
4.00%,
04/01/2048
500
647
Consolidated
Edison
Co
of
New
York
Inc
3.00%,
12/01/2060
180
183
3.13%,
11/15/2027
300
335
3.70%,
11/15/2059
80
93
3.88%,
06/15/2047
650
769
4.13%,
05/15/2049
300
371
4.20%,
03/15/2042
128
155
4.30%,
12/01/2056
230
293
5.85%,
03/15/2036
51
71
6.75%,
04/01/2038
125
191
Consumers
Energy
Co
2.50%,
05/01/2060
160
161
3.10%,
08/15/2050
245
283
Delmarva
Power
&
Light
Co
4.15%,
05/15/2045
350
437
Dominion
Energy
Inc
3.38%,
04/01/2030
155
177
4.70%,
12/01/2044
300
393
4.90%,
08/01/2041
77
101
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
115
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Dominion
Energy
Inc
(continued)
5.95%,
06/15/2035
$
400
$
561
Dominion
Energy
South
Carolina
Inc
5.45%,
02/01/2041
77
111
DTE
Electric
Co
2.25%,
03/01/2030
160
172
2.63%,
03/01/2031
155
172
3.95%,
03/01/2049
500
649
DTE
Energy
Co
0.55%,
11/01/2022
165
166
1.05%,
06/01/2025
85
86
2.25%,
11/01/2022
155
160
Duke
Energy
Carolinas
LLC
2.45%,
08/15/2029
225
242
2.50%,
03/15/2023
279
291
3.20%,
08/15/2049
450
512
4.00%,
09/30/2042
100
124
5.30%,
02/15/2040
512
729
Duke
Energy
Corp
0.90%,
09/15/2025
170
170
3.15%,
08/15/2027
15
17
3.75%,
09/01/2046
600
698
Duke
Energy
Florida
LLC
1.75%,
06/15/2030
160
164
2.50%,
12/01/2029
330
360
3.40%,
10/01/2046
300
343
5.65%,
04/01/2040
25
36
6.40%,
06/15/2038
66
102
Duke
Energy
Indiana
LLC
2.75%,
04/01/2050
160
166
6.12%,
10/15/2035
77
109
6.45%,
04/01/2039
300
466
Duke
Energy
Ohio
Inc
2.13%,
06/01/2030
160
168
Duke
Energy
Progress
LLC
2.50%,
08/15/2050
165
166
4.15%,
12/01/2044
300
381
Emera
US
Finance
LP
3.55%,
06/15/2026
25
28
4.75%,
06/15/2046
25
32
Entergy
Arkansas
LLC
2.65%,
06/15/2051
170
174
Entergy
Corp
0.90%,
09/15/2025
580
580
Entergy
Louisiana
LLC
2.90%,
03/15/2051
90
96
Entergy
Texas
Inc
1.75%,
03/15/2031
165
165
4.00%,
03/30/2029
300
350
4.50%,
03/30/2039
300
379
Evergy
Inc
2.45%,
09/15/2024
165
175
Evergy
Kansas
Central
Inc
4.25%,
12/01/2045
500
654
Evergy
Metro
Inc
2.25%,
06/01/2030
160
170
Eversource
Energy
0.80%,
08/15/2025
165
165
1.65%,
08/15/2030
165
164
Exelon
Corp
3.95%,
06/15/2025
25
28
4.45%,
04/15/2046
20
25
5.63%,
06/15/2035
300
406
Exelon
Generation
Co
LLC
4.25%,
06/15/2022
500
522
5.60%,
06/15/2042
500
570
6.25%,
10/01/2039
349
421
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Florida
Power
&
Light
Co
3.15%,
10/01/2049
$
90
$
104
3.70%,
12/01/2047
200
248
5.69%,
03/01/2040
48
71
Georgia
Power
Co
2.20%,
09/15/2024
165
174
4.30%,
03/15/2042
228
290
Gulf
Power
Co
3.30%,
05/30/2027
400
451
Hydro-Quebec
8.05%,
07/07/2024
102
127
Iberdrola
International
BV
6.75%,
07/15/2036
128
196
Interstate
Power
and
Light
Co
2.30%,
06/01/2030
40
42
4.10%,
09/26/2028
300
357
Kentucky
Utilities
Co
3.30%,
06/01/2050
155
176
5.13%,
11/01/2040
250
345
MidAmerican
Energy
Co
3.15%,
04/15/2050
165
190
3.65%,
04/15/2029
300
356
4.25%,
07/15/2049
300
403
Mississippi
Power
Co
4.25%,
03/15/2042
100
121
National
Rural
Utilities
Cooperative
Finance
Corp
2.40%,
04/25/2022
300
308
2.40%,
03/15/2030
105
114
3.05%,
02/15/2022
102
104
3.05%,
04/25/2027
300
334
3.25%,
11/01/2025
500
557
Nevada
Power
Co
2.40%,
05/01/2030
200
215
NextEra
Energy
Capital
Holdings
Inc
2.25%,
06/01/2030
650
681
2.75%,
11/01/2029
115
125
5.65%,
05/01/2079
(f)
500
589
3
Month
USD
LIBOR
+
3.16%
Northern
States
Power
Co/MN
2.60%,
06/01/2051
160
169
2.90%,
03/01/2050
80
90
3.40%,
08/15/2042
100
116
5.35%,
11/01/2039
82
118
NorthWestern
Corp
4.18%,
11/15/2044
300
362
Oncor
Electric
Delivery
Co
LLC
0.55%,
10/01/2025
(g)
165
165
2.75%,
06/01/2024
300
322
3.10%,
09/15/2049
430
490
5.25%,
09/30/2040
51
73
Pacific
Gas
and
Electric
Co
2.10%,
08/01/2027
1,160
1,180
2.50%,
02/01/2031
320
321
3.30%,
08/01/2040
160
160
3.50%,
08/01/2050
1,160
1,153
PacifiCorp
2.70%,
09/15/2030
1,000
1,099
6.25%,
10/15/2037
92
137
PECO
Energy
Co
2.38%,
09/15/2022
100
103
2.80%,
06/15/2050
425
452
3.90%,
03/01/2048
200
252
PPL
Capital
Funding
Inc
4.70%,
06/01/2043
100
125
PPL
Electric
Utilities
Corp
3.00%,
10/01/2049
80
87
3.95%,
06/01/2047
300
374
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
116
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Progress
Energy
Inc
3.15%,
04/01/2022
$
128
$
131
7.75%,
03/01/2031
136
203
Public
Service
Co
of
Colorado
2.25%,
09/15/2022
500
512
2.70%,
01/15/2051
495
530
3.70%,
06/15/2028
300
350
Public
Service
Electric
and
Gas
Co
2.05%,
08/01/2050
165
155
2.45%,
01/15/2030
160
174
3.00%,
05/15/2027
400
445
3.15%,
01/01/2050
160
182
3.25%,
09/01/2023
400
428
3.65%,
09/01/2042
200
234
Public
Service
Enterprise
Group
Inc
0.80%,
08/15/2025
330
330
Puget
Sound
Energy
Inc
3.25%,
09/15/2049
60
67
5.80%,
03/15/2040
351
499
San
Diego
Gas
&
Electric
Co
1.70%,
10/01/2030
170
172
3.32%,
04/15/2050
155
176
Sempra
Energy
2.90%,
02/01/2023
300
315
3.40%,
02/01/2028
300
342
3.80%,
02/01/2038
300
347
4.00%,
02/01/2048
400
477
6.00%,
10/15/2039
112
161
Southern
California
Edison
Co
2.25%,
06/01/2030
160
167
2.85%,
08/01/2029
125
136
3.65%,
02/01/2050
315
358
4.00%,
04/01/2047
585
687
5.50%,
03/15/2040
102
136
5.95%,
02/01/2038
617
838
Southern
Co/The
3.25%,
07/01/2026
570
639
4.00%,
01/15/2051
(f)
170
180
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.73%
5.50%,
03/15/2057
(f)
400
416
3
Month
USD
LIBOR
+
3.63%
Southern
Power
Co
5.25%,
07/15/2043
200
246
Southwestern
Electric
Power
Co
3.85%,
02/01/2048
300
353
4.10%,
09/15/2028
400
470
6.20%,
03/15/2040
51
75
Tampa
Electric
Co
4.35%,
05/15/2044
200
253
Tucson
Electric
Power
Co
1.50%,
08/01/2030
455
451
Union
Electric
Co
2.63%,
03/15/2051
165
172
3.50%,
04/15/2024
500
542
Virginia
Electric
and
Power
Co
2.45%,
12/15/2050
90
91
2.75%,
03/15/2023
500
523
2.88%,
07/15/2029
90
101
3.15%,
01/15/2026
30
33
4.20%,
05/15/2045
600
769
4.65%,
08/15/2043
250
338
6.00%,
05/15/2037
77
113
8.88%,
11/15/2038
10
19
WEC
Energy
Group
Inc
0.55%,
09/15/2023
170
171
1.38%,
10/15/2027
165
167
3.55%,
06/15/2025
92
103
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Wisconsin
Electric
Power
Co
2.05%,
12/15/2024
$
65
$
69
Xcel
Energy
Inc
0.50%,
10/15/2023
85
85
2.60%,
12/01/2029
115
124
$
53,880
Electrical
Components
&
Equipment
-
0.01%
Emerson
Electric
Co
0.88%,
10/15/2026
250
252
Electronics
-
0.15%
Agilent
Technologies
Inc
2.10%,
06/04/2030
160
166
Allegion
US
Holding
Co
Inc
3.55%,
10/01/2027
500
547
Arrow
Electronics
Inc
4.50%,
03/01/2023
200
214
Fortive
Corp
3.15%,
06/15/2026
535
595
Honeywell
International
Inc
1.35%,
06/01/2025
75
78
1.95%,
06/01/2030
310
328
2.15%,
08/08/2022
115
118
2.30%,
08/15/2024
365
389
2.50%,
11/01/2026
50
55
2.70%,
08/15/2029
85
95
2.80%,
06/01/2050
160
175
3.81%,
11/21/2047
77
99
Roper
Technologies
Inc
1.00%,
09/15/2025
85
86
1.40%,
09/15/2027
165
167
2.35%,
09/15/2024
110
117
2.95%,
09/15/2029
95
104
3.13%,
11/15/2022
750
784
Tyco
Electronics
Group
SA
7.13%,
10/01/2037
14
21
$
4,138
Environmental
Control
-
0.08%
Republic
Services
Inc
1.75%,
02/15/2032
90
90
2.30%,
03/01/2030
340
359
2.50%,
08/15/2024
215
230
2.90%,
07/01/2026
500
553
Waste
Management
Inc
0.75%,
11/15/2025
90
90
2.50%,
11/15/2050
180
182
3.90%,
03/01/2035
200
245
4.10%,
03/01/2045
210
263
4.15%,
07/15/2049
115
153
$
2,165
Finance
-
Mortgage
Loan/Banker
-
1.26%
Fannie
Mae
0.25%,
11/27/2023
980
981
0.50%,
06/17/2025
370
372
0.50%,
11/07/2025
360
361
0.75%,
10/08/2027
500
502
0.88%,
08/05/2030
1,350
1,325
1.38%,
09/06/2022
300
306
2.00%,
01/05/2022
400
408
2.00%,
10/05/2022
500
516
2.13%,
04/24/2026
3,000
3,268
2.25%,
04/12/2022
250
257
2.38%,
01/19/2023
500
523
2.50%,
02/05/2024
(e)
500
536
2.63%,
01/11/2022
500
513
2.63%,
09/06/2024
750
816
5.63%,
07/15/2037
200
317
6.63%,
11/15/2030
602
911
7.13%,
01/15/2030
199
304
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
117
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Finance
-
Mortgage
Loan/Banker
(continued)
Fannie
Mae
(continued)
7.25%,
05/15/2030
$
280
$
434
Federal
Home
Loan
Banks
0.13%,
10/21/2022
1,130
1,130
0.38%,
09/04/2025
170
170
2.13%,
06/09/2023
3,125
3,273
2.50%,
02/13/2024
1,000
1,072
3.25%,
11/16/2028
(e)
2,000
2,392
5.50%,
07/15/2036
700
1,081
Freddie
Mac
0.13%,
10/16/2023
345
345
0.25%,
06/26/2023
3,125
3,132
0.25%,
08/24/2023
335
336
0.25%,
09/08/2023
505
506
0.25%,
11/06/2023
550
550
0.25%,
12/04/2023
370
370
0.38%,
09/23/2025
2,810
2,805
2.38%,
01/13/2022
1,757
1,798
2.75%,
06/19/2023
1,625
1,728
6.25%,
07/15/2032
231
357
6.75%,
03/15/2031
577
889
$
34,584
Food
-
0.32%
Campbell
Soup
Co
3.95%,
03/15/2025
350
394
4.15%,
03/15/2028
160
188
Conagra
Brands
Inc
1.38%,
11/01/2027
125
126
3.20%,
01/25/2023
295
310
4.85%,
11/01/2028
205
255
5.30%,
11/01/2038
120
160
5.40%,
11/01/2048
120
171
General
Mills
Inc
2.60%,
10/12/2022
500
519
3.70%,
10/17/2023
300
327
4.00%,
04/17/2025
300
339
Hershey
Co/The
1.70%,
06/01/2030
160
165
3.38%,
08/15/2046
350
406
Kellogg
Co
2.10%,
06/01/2030
160
168
2.65%,
12/01/2023
417
445
3.25%,
04/01/2026
500
562
Koninklijke
Ahold
Delhaize
NV
5.70%,
10/01/2040
(e)
30
43
Kroger
Co/The
3.40%,
04/15/2022
154
159
3.70%,
08/01/2027
300
345
3.95%,
01/15/2050
175
213
4.45%,
02/01/2047
55
69
5.15%,
08/01/2043
300
411
5.40%,
07/15/2040
25
34
Mondelez
International
Inc
0.63%,
07/01/2022
165
166
1.50%,
02/04/2031
105
104
2.13%,
04/13/2023
85
88
2.63%,
09/04/2050
625
635
Sysco
Corp
2.40%,
02/15/2030
135
140
4.85%,
10/01/2045
250
317
5.38%,
09/21/2035
500
664
Tyson
Foods
Inc
4.55%,
06/02/2047
520
691
$
8,614
Forest
Products
&
Paper
-
0.08%
Celulosa
Arauco
y
Constitucion
SA
4.50%,
08/01/2024
500
550
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Forest
Products
&
Paper
(continued)
Georgia-Pacific
LLC
7.75%,
11/15/2029
$
51
$
75
8.00%,
01/15/2024
228
278
International
Paper
Co
4.40%,
08/15/2047
350
458
4.80%,
06/15/2044
300
404
7.30%,
11/15/2039
25
40
Suzano
Austria
GmbH
5.00%,
01/15/2030
300
341
$
2,146
Gas
-
0.11%
Atmos
Energy
Corp
1.50%,
01/15/2031
165
165
3.38%,
09/15/2049
165
192
4.13%,
10/15/2044
400
503
CenterPoint
Energy
Resources
Corp
1.75%,
10/01/2030
165
167
Eastern
Energy
Gas
Holdings
LLC
2.50%,
11/15/2024
155
166
4.80%,
11/01/2043
300
385
NiSource
Inc
0.95%,
08/15/2025
330
332
3.49%,
05/15/2027
20
23
3.60%,
05/01/2030
150
173
5.95%,
06/15/2041
402
575
Southern
California
Gas
Co
2.55%,
02/01/2030
160
173
Southern
Co
Gas
Capital
Corp
1.75%,
01/15/2031
165
166
Washington
Gas
Light
Co
3.65%,
09/15/2049
95
114
$
3,134
Hand
&
Machine
Tools
-
0.01%
Stanley
Black
&
Decker
Inc
2.30%,
03/15/2030
160
174
2.75%,
11/15/2050
175
183
$
357
Healthcare
-
Products
-
0.30%
Abbott
Laboratories
1.15%,
01/30/2028
250
254
1.40%,
06/30/2030
330
335
2.55%,
03/15/2022
35
36
3.75%,
11/30/2026
266
312
4.75%,
11/30/2036
40
55
4.90%,
11/30/2046
500
741
5.30%,
05/27/2040
200
294
Baxter
International
Inc
1.73%,
04/01/2031
(g)
175
176
Boston
Scientific
Corp
1.90%,
06/01/2025
160
168
2.65%,
06/01/2030
160
171
3.45%,
03/01/2024
600
650
3.85%,
05/15/2025
270
305
4.70%,
03/01/2049
50
69
7.38%,
01/15/2040
51
81
Danaher
Corp
2.60%,
10/01/2050
165
171
DH
Europe
Finance
II
Sarl
2.05%,
11/15/2022
155
160
2.60%,
11/15/2029
155
169
3.25%,
11/15/2039
155
176
Koninklijke
Philips
NV
5.00%,
03/15/2042
128
173
Medtronic
Inc
4.38%,
03/15/2035
665
895
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
118
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Products
(continued)
Stryker
Corp
3.50%,
03/15/2026
$
500
$
565
4.10%,
04/01/2043
200
246
4.63%,
03/15/2046
20
27
Thermo
Fisher
Scientific
Inc
2.60%,
10/01/2029
160
175
2.95%,
09/19/2026
530
591
4.13%,
03/25/2025
160
182
Zimmer
Biomet
Holdings
Inc
3.15%,
04/01/2022
500
514
3.55%,
04/01/2025
350
387
$
8,078
Healthcare
-
Services
-
0.59%
Aetna
Inc
2.80%,
06/15/2023
35
37
3.50%,
11/15/2024
300
329
4.13%,
11/15/2042
100
119
6.63%,
06/15/2036
105
154
6.75%,
12/15/2037
112
170
Anthem
Inc
2.88%,
09/15/2029
120
133
2.95%,
12/01/2022
300
314
3.13%,
05/15/2050
600
659
3.30%,
01/15/2023
325
344
3.65%,
12/01/2027
300
346
4.38%,
12/01/2047
300
387
4.63%,
05/15/2042
30
39
4.65%,
01/15/2043
115
151
Ascension
Health
3.95%,
11/15/2046
500
645
Baylor
Scott
&
White
Holdings
3.97%,
11/15/2046
232
283
Children's
Hospital
Medical
Center/Cincinnati
OH
4.27%,
05/15/2044
215
271
CommonSpirit
Health
4.35%,
11/01/2042
200
234
Dignity
Health
3.13%,
11/01/2022
500
519
HCA
Inc
4.50%,
02/15/2027
800
931
5.25%,
06/15/2026
750
888
Humana
Inc
3.13%,
08/15/2029
85
94
4.50%,
04/01/2025
160
184
4.95%,
10/01/2044
325
438
Kaiser
Foundation
Hospitals
3.27%,
11/01/2049
230
263
4.15%,
05/01/2047
470
612
Laboratory
Corp
of
America
Holdings
2.30%,
12/01/2024
310
329
2.95%,
12/01/2029
310
343
4.70%,
02/01/2045
115
151
Memorial
Sloan-Kettering
Cancer
Center
4.13%,
07/01/2052
200
264
4.20%,
07/01/2055
250
334
Mount
Sinai
Hospitals
Group
Inc
3.98%,
07/01/2048
400
453
Partners
Healthcare
System
Inc
3.19%,
07/01/2049
315
347
4.12%,
07/01/2055
300
389
Quest
Diagnostics
Inc
2.95%,
06/30/2030
155
171
UnitedHealth
Group
Inc
1.25%,
01/15/2026
160
165
2.00%,
05/15/2030
160
170
2.38%,
10/15/2022
500
520
2.38%,
08/15/2024
250
266
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Services
(continued)
UnitedHealth
Group
Inc
(continued)
2.75%,
05/15/2040
$
160
$
174
2.88%,
03/15/2022
180
184
2.88%,
08/15/2029
175
199
2.90%,
05/15/2050
160
177
3.45%,
01/15/2027
540
618
3.50%,
08/15/2039
200
238
3.70%,
08/15/2049
350
439
4.25%,
06/15/2048
165
220
4.38%,
03/15/2042
750
988
4.45%,
12/15/2048
120
166
4.63%,
07/15/2035
30
40
6.50%,
06/15/2037
77
123
$
16,012
Home
Builders
-
0.01%
DR
Horton
Inc
1.40%,
10/15/2027
165
166
Insurance
-
0.84%
Aflac
Inc
3.63%,
11/15/2024
230
256
Allied
World
Assurance
Co
Holdings
Ltd
4.35%,
10/29/2025
500
543
Allstate
Corp/The
0.75%,
12/15/2025
160
161
1.45%,
12/15/2030
160
160
3.28%,
12/15/2026
500
571
5.55%,
05/09/2035
200
293
American
International
Group
Inc
3.75%,
07/10/2025
20
23
3.88%,
01/15/2035
750
900
4.20%,
04/01/2028
190
226
4.38%,
01/15/2055
30
39
4.70%,
07/10/2035
750
968
4.80%,
07/10/2045
50
66
4.88%,
06/01/2022
280
297
Aon
Corp
2.20%,
11/15/2022
660
682
2.80%,
05/15/2030
160
175
Arch
Capital
Finance
LLC
5.03%,
12/15/2046
250
341
Arch
Capital
Group
US
Inc
5.14%,
11/01/2043
375
505
Athene
Holding
Ltd
4.13%,
01/12/2028
500
557
AXA
SA
8.60%,
12/15/2030
38
59
Berkshire
Hathaway
Finance
Corp
1.45%,
10/15/2030
165
167
1.85%,
03/12/2030
80
84
2.85%,
10/15/2050
125
134
4.20%,
08/15/2048
285
376
4.25%,
01/15/2049
400
531
4.30%,
05/15/2043
300
397
5.75%,
01/15/2040
115
177
Berkshire
Hathaway
Inc
2.75%,
03/15/2023
30
32
3.13%,
03/15/2026
350
391
3.40%,
01/31/2022
205
212
4.50%,
02/11/2043
25
34
Chubb
Corp/The
6.50%,
05/15/2038
10
16
Chubb
INA
Holdings
Inc
1.38%,
09/15/2030
335
334
2.88%,
11/03/2022
500
521
3.35%,
05/03/2026
30
34
4.35%,
11/03/2045
25
34
6.70%,
05/15/2036
250
390
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
119
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Insurance
(continued)
CNA
Financial
Corp
2.05%,
08/15/2030
$
165
$
168
Equitable
Holdings
Inc
4.35%,
04/20/2028
605
715
Hartford
Financial
Services
Group
Inc/The
3.60%,
08/19/2049
170
200
4.30%,
04/15/2043
250
315
Lincoln
National
Corp
4.00%,
09/01/2023
1,000
1,091
4.35%,
03/01/2048
55
69
7.00%,
06/15/2040
47
72
Loews
Corp
2.63%,
05/15/2023
200
209
4.13%,
05/15/2043
200
236
Manulife
Financial
Corp
5.38%,
03/04/2046
250
366
Marsh
&
McLennan
Cos
Inc
3.88%,
03/15/2024
500
552
4.38%,
03/15/2029
50
61
4.90%,
03/15/2049
400
580
MetLife
Inc
3.00%,
03/01/2025
300
330
3.60%,
04/10/2024
250
275
4.37%,
09/15/2023
235
260
4.60%,
05/13/2046
225
311
4.88%,
11/13/2043
20
28
5.70%,
06/15/2035
164
241
6.40%,
12/15/2066
288
373
3
Month
USD
LIBOR
+
2.21%
Progressive
Corp/The
3.20%,
03/26/2030
160
184
4.35%,
04/25/2044
200
263
Prudential
Financial
Inc
2.10%,
03/10/2030
(e)
160
168
3.50%,
05/15/2024
700
771
3.70%,
10/01/2050
(f)
165
175
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.04%
3.70%,
03/13/2051
630
764
3.91%,
12/07/2047
177
213
5.20%,
03/15/2044
(f)
350
372
3
Month
USD
LIBOR
+
3.04%
5.70%,
12/14/2036
25
36
5.70%,
09/15/2048
(f)
150
173
3
Month
USD
LIBOR
+
2.67%
Reinsurance
Group
of
America
Inc
4.70%,
09/15/2023
200
221
Travelers
Cos
Inc/The
4.00%,
05/30/2047
400
519
6.25%,
06/15/2037
12
18
6.75%,
06/20/2036
51
80
Trinity
Acquisition
PLC
4.40%,
03/15/2026
500
583
W
R
Berkley
Corp
4.00%,
05/12/2050
85
104
Willis
North
America
Inc
2.95%,
09/15/2029
55
60
3.60%,
05/15/2024
300
328
3.88%,
09/15/2049
165
201
XLIT
Ltd
5.25%,
12/15/2043
400
565
$
22,936
Internet
-
0.36%
Alibaba
Group
Holding
Ltd
3.40%,
12/06/2027
325
364
3.60%,
11/28/2024
300
330
4.40%,
12/06/2057
305
408
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Internet
(continued)
Alphabet
Inc
0.80%,
08/15/2027
$
330
$
330
1.10%,
08/15/2030
165
163
1.90%,
08/15/2040
165
162
2.00%,
08/15/2026
30
32
2.05%,
08/15/2050
165
157
2.25%,
08/15/2060
165
160
3.38%,
02/25/2024
530
580
Amazon.com
Inc
1.20%,
06/03/2027
465
474
1.50%,
06/03/2030
465
473
2.40%,
02/22/2023
370
386
2.50%,
11/29/2022
130
135
2.50%,
06/03/2050
765
794
3.15%,
08/22/2027
490
558
3.80%,
12/05/2024
20
22
3.88%,
08/22/2037
340
424
4.05%,
08/22/2047
30
40
4.80%,
12/05/2034
30
41
4.95%,
12/05/2044
515
755
Baidu
Inc
1.72%,
04/09/2026
200
203
2.38%,
10/09/2030
200
205
3.08%,
04/07/2025
200
213
3.50%,
11/28/2022
500
525
4.13%,
06/30/2025
500
560
eBay
Inc
1.90%,
03/11/2025
160
168
2.60%,
07/15/2022
600
618
3.45%,
08/01/2024
30
33
3.80%,
03/09/2022
500
519
4.00%,
07/15/2042
100
114
$
9,946
Iron
&
Steel
-
0.07%
Nucor
Corp
2.00%,
06/01/2025
155
164
4.00%,
08/01/2023
500
540
Steel
Dynamics
Inc
1.65%,
10/15/2027
85
88
2.40%,
06/15/2025
40
42
2.80%,
12/15/2024
80
86
Vale
Overseas
Ltd
6.25%,
08/10/2026
400
496
6.88%,
11/21/2036
317
465
8.25%,
01/17/2034
38
58
$
1,939
Lodging
-
0.03%
Las
Vegas
Sands
Corp
3.20%,
08/08/2024
170
180
3.50%,
08/18/2026
85
91
3.90%,
08/08/2029
170
183
Sands
China
Ltd
4.60%,
08/08/2023
200
212
5.40%,
08/08/2028
200
234
$
900
Machinery
-
Construction
&
Mining
-
0.11%
ABB
Finance
USA
Inc
2.88%,
05/08/2022
100
103
Caterpillar
Financial
Services
Corp
0.45%,
09/14/2023
335
336
0.65%,
07/07/2023
165
166
0.80%,
11/13/2025
180
181
1.10%,
09/14/2027
335
339
1.90%,
09/06/2022
815
838
1.95%,
11/18/2022
265
273
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
120
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Machinery
-
Construction
&
Mining
(continued)
Caterpillar
Inc
2.60%,
04/09/2030
$
150
$
165
3.25%,
09/19/2049
160
188
3.40%,
05/15/2024
30
33
3.80%,
08/15/2042
105
133
6.05%,
08/15/2036
132
198
$
2,953
Machinery
-
Diversified
-
0.12%
CNH
Industrial
Capital
LLC
1.88%,
01/15/2026
165
173
Deere
&
Co
2.88%,
09/07/2049
165
183
3.10%,
04/15/2030
160
183
3.90%,
06/09/2042
30
38
5.38%,
10/16/2029
500
664
Dover
Corp
5.38%,
03/01/2041
77
98
John
Deere
Capital
Corp
0.40%,
10/10/2023
165
166
0.70%,
07/05/2023
160
162
1.20%,
04/06/2023
120
122
1.95%,
06/13/2022
375
384
2.05%,
01/09/2025
160
170
2.80%,
03/06/2023
20
21
2.80%,
07/18/2029
385
428
Otis
Worldwide
Corp
2.06%,
04/05/2025
160
170
2.57%,
02/15/2030
160
172
3.36%,
02/15/2050
160
185
$
3,319
Media
-
0.99%
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
2.30%,
02/01/2032
145
145
2.80%,
04/01/2031
405
428
3.70%,
04/01/2051
405
421
3.85%,
04/01/2061
145
146
4.46%,
07/23/2022
340
358
4.80%,
03/01/2050
545
651
4.91%,
07/23/2025
400
465
5.75%,
04/01/2048
605
792
6.48%,
10/23/2045
435
615
Comcast
Corp
1.50%,
02/15/2031
165
164
2.35%,
01/15/2027
60
64
2.45%,
08/15/2052
165
160
2.65%,
02/01/2030
125
137
2.65%,
08/15/2062
165
165
3.10%,
04/01/2025
160
176
3.15%,
03/01/2026
30
33
3.25%,
11/01/2039
245
278
3.38%,
08/15/2025
525
586
3.40%,
07/15/2046
20
23
3.45%,
02/01/2050
485
572
3.55%,
05/01/2028
125
144
3.70%,
04/15/2024
600
660
3.75%,
04/01/2040
860
1,039
3.90%,
03/01/2038
150
184
4.00%,
08/15/2047
30
38
4.00%,
03/01/2048
400
504
4.00%,
11/01/2049
20
25
4.15%,
10/15/2028
500
602
4.25%,
01/15/2033
120
151
4.60%,
10/15/2038
485
639
4.60%,
08/15/2045
500
675
4.65%,
07/15/2042
1,615
2,188
4.75%,
03/01/2044
45
62
5.65%,
06/15/2035
20
29
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
(continued)
Comcast
Corp
(continued)
6.45%,
03/15/2037
$
85
$
131
6.95%,
08/15/2037
274
441
7.05%,
03/15/2033
15
23
Discovery
Communications
LLC
3.63%,
05/15/2030
180
206
3.95%,
06/15/2025
400
449
3.95%,
03/20/2028
500
574
4.00%,
09/15/2055
(g)
601
673
Fox
Corp
3.05%,
04/07/2025
40
44
5.48%,
01/25/2039
200
274
5.58%,
01/25/2049
500
731
Grupo
Televisa
SAB
4.63%,
01/30/2026
500
572
NBCUniversal
Media
LLC
4.45%,
01/15/2043
15
20
6.40%,
04/30/2040
251
396
Thomson
Reuters
Corp
5.85%,
04/15/2040
25
35
Time
Warner
Cable
LLC
5.50%,
09/01/2041
340
437
5.88%,
11/15/2040
20
27
6.55%,
05/01/2037
176
242
6.75%,
06/15/2039
77
110
7.30%,
07/01/2038
300
445
Time
Warner
Entertainment
Co
LP
8.38%,
07/15/2033
95
147
TWDC
Enterprises
18
Corp
3.70%,
12/01/2042
100
120
7.00%,
03/01/2032
51
76
ViacomCBS
Inc
3.50%,
01/15/2025
400
439
4.00%,
01/15/2026
515
589
4.20%,
05/19/2032
200
241
4.38%,
03/15/2043
435
514
4.85%,
07/01/2042
200
247
6.88%,
04/30/2036
181
262
7.88%,
07/30/2030
178
266
Walt
Disney
Co/The
1.75%,
08/30/2024
325
339
1.75%,
01/13/2026
635
666
2.00%,
09/01/2029
245
256
2.20%,
01/13/2028
860
920
2.65%,
01/13/2031
395
433
2.75%,
09/01/2049
325
344
3.35%,
03/24/2025
120
133
3.50%,
05/13/2040
160
188
3.60%,
01/13/2051
160
194
3.70%,
03/23/2027
120
139
4.63%,
03/23/2040
240
320
4.75%,
11/15/2046
230
312
4.95%,
10/15/2045
350
489
6.20%,
12/15/2034
154
233
6.40%,
12/15/2035
98
152
$
27,168
Metal
Fabrication
&
Hardware
-
0.02%
Precision
Castparts
Corp
2.50%,
01/15/2023
100
104
3.25%,
06/15/2025
25
28
4.38%,
06/15/2045
250
314
$
446
Mining
-
0.12%
Barrick
Gold
Corp
5.25%,
04/01/2042
20
28
Barrick
North
America
Finance
LLC
5.75%,
05/01/2043
355
518
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
121
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mining
(continued)
Barrick
PD
Australia
Finance
Pty
Ltd
5.95%,
10/15/2039
$
90
$
130
BHP
Billiton
Finance
USA
Ltd
5.00%,
09/30/2043
270
397
Newmont
Corp
2.25%,
10/01/2030
610
642
4.88%,
03/15/2042
20
27
Rio
Tinto
Alcan
Inc
6.13%,
12/15/2033
77
117
Rio
Tinto
Finance
USA
PLC
4.75%,
03/22/2042
328
451
Southern
Copper
Corp
5.88%,
04/23/2045
350
506
6.75%,
04/16/2040
258
388
Teck
Resources
Ltd
3.90%,
07/15/2030
120
134
$
3,338
Miscellaneous
Manufacturers
-
0.26%
3M
Co
1.75%,
02/14/2023
65
67
2.00%,
02/14/2025
130
138
2.38%,
08/26/2029
500
541
3.25%,
08/26/2049
850
983
Eaton
Corp
2.75%,
11/02/2022
100
104
4.00%,
11/02/2032
100
122
4.15%,
11/02/2042
50
63
General
Electric
Co
3.45%,
05/01/2027
475
537
3.63%,
05/01/2030
240
274
4.13%,
10/09/2042
26
30
4.25%,
05/01/2040
75
89
4.35%,
05/01/2050
620
754
6.15%,
08/07/2037
155
214
6.75%,
03/15/2032
896
1,256
Illinois
Tool
Works
Inc
2.65%,
11/15/2026
500
553
3.50%,
03/01/2024
350
381
Parker-Hannifin
Corp
3.50%,
09/15/2022
577
606
Trane
Technologies
Luxembourg
Finance
SA
4.65%,
11/01/2044
300
384
$
7,096
Oil
&
Gas
-
1.25%
BP
Capital
Markets
America
Inc
1.75%,
08/10/2030
460
463
2.77%,
11/10/2050
625
623
2.94%,
04/06/2023
135
142
3.00%,
02/24/2050
160
164
3.19%,
04/06/2025
275
303
3.22%,
04/14/2024
420
454
3.54%,
04/06/2027
275
313
3.59%,
04/14/2027
30
34
BP
Capital
Markets
PLC
3.06%,
03/17/2022
315
325
3.28%,
09/19/2027
175
196
3.72%,
11/28/2028
40
46
3.81%,
02/10/2024
400
439
Canadian
Natural
Resources
Ltd
2.95%,
01/15/2023
30
31
3.85%,
06/01/2027
655
735
4.95%,
06/01/2047
20
25
6.25%,
03/15/2038
250
336
Chevron
Corp
1.14%,
05/11/2023
85
87
1.55%,
05/11/2025
85
88
2.00%,
05/11/2027
160
170
2.24%,
05/11/2030
160
172
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Chevron
Corp
(continued)
2.36%,
12/05/2022
$
325
$
337
2.41%,
03/03/2022
500
511
2.95%,
05/16/2026
355
394
2.98%,
05/11/2040
40
44
3.08%,
05/11/2050
160
179
Chevron
USA
Inc
0.43%,
08/11/2023
250
251
0.69%,
08/12/2025
330
332
1.02%,
08/12/2027
165
166
2.34%,
08/12/2050
165
163
CNOOC
Finance
2013
Ltd
2.88%,
09/30/2029
200
208
4.25%,
05/09/2043
100
114
CNOOC
Finance
2014
ULC
4.25%,
04/30/2024
500
543
CNOOC
Petroleum
North
America
ULC
5.88%,
03/10/2035
340
444
6.40%,
05/15/2037
157
214
7.50%,
07/30/2039
15
23
Concho
Resources
Inc
4.30%,
08/15/2028
300
355
4.88%,
10/01/2047
120
162
Conoco
Funding
Co
7.25%,
10/15/2031
200
300
ConocoPhillips
6.50%,
02/01/2039
169
261
ConocoPhillips
Co
4.30%,
11/15/2044
420
528
6.95%,
04/15/2029
202
283
Devon
Energy
Corp
5.00%,
06/15/2045
10
12
5.60%,
07/15/2041
425
520
Diamondback
Energy
Inc
2.88%,
12/01/2024
155
163
3.25%,
12/01/2026
155
165
Ecopetrol
SA
5.88%,
09/18/2023
400
447
5.88%,
05/28/2045
550
666
EOG
Resources
Inc
2.63%,
03/15/2023
200
209
4.15%,
01/15/2026
350
406
Equinor
ASA
1.75%,
01/22/2026
160
168
2.45%,
01/17/2023
30
31
2.65%,
01/15/2024
400
425
2.88%,
04/06/2025
145
158
3.00%,
04/06/2027
645
718
3.15%,
01/23/2022
102
105
3.25%,
11/18/2049
220
244
3.63%,
04/06/2040
145
174
5.10%,
08/17/2040
263
368
Exxon
Mobil
Corp
1.57%,
04/15/2023
230
237
1.90%,
08/16/2022
500
514
2.02%,
08/16/2024
400
421
2.28%,
08/16/2026
500
538
2.44%,
08/16/2029
150
163
2.61%,
10/15/2030
305
333
2.99%,
03/19/2025
305
334
3.00%,
08/16/2039
150
163
3.10%,
08/16/2049
450
488
3.45%,
04/15/2051
805
920
4.23%,
03/19/2040
305
380
Hess
Corp
5.60%,
02/15/2041
51
62
7.13%,
03/15/2033
221
289
7.30%,
08/15/2031
25
33
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
122
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
HollyFrontier
Corp
5.88%,
04/01/2026
$
475
$
530
Marathon
Oil
Corp
2.80%,
11/01/2022
4
4
3.85%,
06/01/2025
505
541
6.60%,
10/01/2037
223
276
Marathon
Petroleum
Corp
3.63%,
09/15/2024
400
437
5.00%,
09/15/2054
200
226
5.13%,
12/15/2026
300
358
Noble
Energy
Inc
3.25%,
10/15/2029
325
373
5.05%,
11/15/2044
25
35
5.25%,
11/15/2043
350
503
6.00%,
03/01/2041
102
155
Phillips
66
1.30%,
02/15/2026
90
91
2.15%,
12/15/2030
410
416
3.85%,
04/09/2025
490
550
5.88%,
05/01/2042
128
178
Pioneer
Natural
Resources
Co
1.90%,
08/15/2030
165
164
Shell
International
Finance
BV
0.38%,
09/15/2023
170
170
2.00%,
11/07/2024
155
163
2.38%,
08/21/2022
130
135
2.38%,
04/06/2025
430
461
2.38%,
11/07/2029
155
167
2.50%,
09/12/2026
330
362
2.75%,
04/06/2030
600
664
3.13%,
11/07/2049
155
171
3.25%,
04/06/2050
600
680
3.63%,
08/21/2042
100
117
4.00%,
05/10/2046
245
309
4.38%,
05/11/2045
490
646
4.55%,
08/12/2043
35
47
5.50%,
03/25/2040
25
36
6.38%,
12/15/2038
43
67
Suncor
Energy
Inc
2.80%,
05/15/2023
160
168
4.00%,
11/15/2047
90
101
5.95%,
05/15/2035
400
518
6.50%,
06/15/2038
428
598
6.80%,
05/15/2038
12
17
6.85%,
06/01/2039
5
7
Total
Capital
International
SA
2.43%,
01/10/2025
85
91
2.83%,
01/10/2030
85
95
2.88%,
02/17/2022
128
132
2.99%,
06/29/2041
370
400
3.13%,
05/29/2050
510
553
3.39%,
06/29/2060
370
420
3.46%,
07/12/2049
85
99
Valero
Energy
Corp
1.20%,
03/15/2024
170
172
2.85%,
04/15/2025
170
181
3.65%,
03/15/2025
500
547
6.63%,
06/15/2037
234
311
7.50%,
04/15/2032
15
21
$
34,275
Oil
&
Gas
Services
-
0.06%
Baker
Hughes
a
GE
Co
LLC
/
Baker
Hughes
Co-
Obligor
Inc
2.77%,
12/15/2022
155
162
3.14%,
11/07/2029
155
170
3.34%,
12/15/2027
165
185
4.08%,
12/15/2047
170
192
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
Services
(continued)
Halliburton
Co
3.80%,
11/15/2025
$
62
$
70
4.50%,
11/15/2041
51
56
4.85%,
11/15/2035
275
321
7.45%,
09/15/2039
10
14
NOV
Inc
3.60%,
12/01/2029
155
162
3.95%,
12/01/2042
200
203
Schlumberger
Investment
SA
2.65%,
06/26/2030
165
176
$
1,711
Packaging
&
Containers
-
0.04%
Packaging
Corp
of
America
3.00%,
12/15/2029
310
346
4.05%,
12/15/2049
155
192
WestRock
RKT
LLC
4.00%,
03/01/2023
500
531
WRKCo
Inc
3.00%,
06/15/2033
80
88
$
1,157
Pharmaceuticals
-
1.81%
AbbVie
Inc
2.30%,
11/21/2022
310
321
2.60%,
11/21/2024
465
498
2.90%,
11/06/2022
200
209
2.95%,
11/21/2026
310
343
3.20%,
05/14/2026
335
371
3.20%,
11/21/2029
775
869
3.25%,
10/01/2022
180
187
3.45%,
03/15/2022
30
31
3.75%,
11/14/2023
350
382
3.80%,
03/15/2025
330
368
3.85%,
06/15/2024
445
490
4.05%,
11/21/2039
385
466
4.25%,
11/14/2028
220
264
4.25%,
11/21/2049
620
777
4.30%,
05/14/2036
170
209
4.40%,
11/06/2042
200
251
4.45%,
05/14/2046
280
356
4.50%,
05/14/2035
300
377
4.63%,
10/01/2042
100
127
4.70%,
05/14/2045
330
432
4.75%,
03/15/2045
235
307
4.88%,
11/14/2048
210
284
AmerisourceBergen
Corp
3.40%,
05/15/2024
250
271
AstraZeneca
PLC
0.70%,
04/08/2026
125
124
1.38%,
08/06/2030
165
163
2.13%,
08/06/2050
85
80
2.38%,
06/12/2022
20
21
3.38%,
11/16/2025
905
1,016
4.00%,
09/18/2042
125
154
4.38%,
11/16/2045
185
248
4.38%,
08/17/2048
90
120
6.45%,
09/15/2037
164
253
Becton
Dickinson
and
Co
2.82%,
05/20/2030
160
176
2.89%,
06/06/2022
42
43
3.36%,
06/06/2024
20
22
3.70%,
06/06/2027
900
1,033
3.73%,
12/15/2024
194
215
4.67%,
06/06/2047
35
46
4.69%,
12/15/2044
196
253
Bristol-Myers
Squibb
Co
0.75%,
11/13/2025
180
181
1.13%,
11/13/2027
315
318
1.45%,
11/13/2030
180
181
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
123
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Bristol-Myers
Squibb
Co
(continued)
2.55%,
11/13/2050
$
180
$
184
2.60%,
05/16/2022
500
516
2.90%,
07/26/2024
610
662
3.25%,
08/15/2022
25
26
3.25%,
02/20/2023
400
421
3.25%,
08/01/2042
300
348
3.40%,
07/26/2029
540
629
3.55%,
08/15/2022
20
21
3.90%,
02/20/2028
185
219
4.13%,
06/15/2039
230
293
4.25%,
10/26/2049
430
582
4.35%,
11/15/2047
150
202
4.55%,
02/20/2048
185
258
4.63%,
05/15/2044
355
483
5.00%,
08/15/2045
30
43
Cardinal
Health
Inc
2.62%,
06/15/2022
250
257
3.08%,
06/15/2024
50
54
3.20%,
03/15/2023
200
212
3.41%,
06/15/2027
200
226
4.60%,
03/15/2043
100
118
Cigna
Corp
2.40%,
03/15/2030
860
917
3.20%,
03/15/2040
160
175
3.75%,
07/15/2023
500
541
4.13%,
11/15/2025
270
311
4.38%,
10/15/2028
750
907
4.80%,
08/15/2038
400
521
4.80%,
07/15/2046
25
33
4.90%,
12/15/2048
360
495
6.13%,
11/15/2041
16
24
CVS
Health
Corp
1.30%,
08/21/2027
165
166
1.75%,
08/21/2030
165
166
1.88%,
02/28/2031
185
187
2.63%,
08/15/2024
420
450
2.70%,
08/21/2040
165
167
3.00%,
08/15/2026
375
415
3.25%,
08/15/2029
170
191
3.50%,
07/20/2022
1,000
1,044
3.70%,
03/09/2023
205
219
4.30%,
03/25/2028
564
671
4.78%,
03/25/2038
485
615
5.05%,
03/25/2048
980
1,328
5.13%,
07/20/2045
370
498
5.30%,
12/05/2043
25
34
Eli
Lilly
and
Co
2.25%,
05/15/2050
390
383
2.50%,
09/15/2060
160
163
3.95%,
03/15/2049
400
525
GlaxoSmithKline
Capital
Inc
3.63%,
05/15/2025
600
674
3.88%,
05/15/2028
545
649
5.38%,
04/15/2034
500
714
GlaxoSmithKline
Capital
PLC
0.53%,
10/01/2023
165
166
2.85%,
05/08/2022
143
148
Johnson
&
Johnson
0.55%,
09/01/2025
370
372
0.95%,
09/01/2027
370
372
1.30%,
09/01/2030
740
746
2.10%,
09/01/2040
370
373
2.25%,
09/01/2050
370
372
2.45%,
03/01/2026
30
33
2.45%,
09/01/2060
370
385
3.50%,
01/15/2048
90
112
3.63%,
03/03/2037
20
24
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Johnson
&
Johnson
(continued)
3.70%,
03/01/2046
$
225
$
287
3.75%,
03/03/2047
30
39
4.95%,
05/15/2033
201
282
McKesson
Corp
0.90%,
12/03/2025
185
186
4.88%,
03/15/2044
150
189
Mead
Johnson
Nutrition
Co
4.60%,
06/01/2044
250
332
Merck
&
Co
Inc
0.75%,
02/24/2026
80
81
1.45%,
06/24/2030
365
370
2.35%,
02/10/2022
800
818
2.35%,
06/24/2040
285
295
2.75%,
02/10/2025
385
418
2.80%,
05/18/2023
230
244
3.60%,
09/15/2042
100
123
3.70%,
02/10/2045
10
12
3.90%,
03/07/2039
115
145
4.00%,
03/07/2049
170
224
4.15%,
05/18/2043
200
260
Novartis
Capital
Corp
1.75%,
02/14/2025
325
341
2.00%,
02/14/2027
325
347
2.20%,
08/14/2030
160
172
2.75%,
08/14/2050
160
175
3.00%,
11/20/2025
500
553
4.40%,
05/06/2044
350
482
Pfizer
Inc
0.80%,
05/28/2025
445
453
1.70%,
05/28/2030
195
202
2.55%,
05/28/2040
450
481
2.63%,
04/01/2030
160
179
2.70%,
05/28/2050
190
204
3.00%,
06/15/2023
530
565
3.45%,
03/15/2029
210
245
4.00%,
03/15/2049
140
184
4.40%,
05/15/2044
30
40
5.60%,
09/15/2040
380
557
7.20%,
03/15/2039
176
304
Sanofi
3.38%,
06/19/2023
400
429
3.63%,
06/19/2028
400
466
Shire
Acquisitions
Investments
Ireland
DAC
3.20%,
09/23/2026
525
587
Takeda
Pharmaceutical
Co
Ltd
2.05%,
03/31/2030
405
415
3.18%,
07/09/2050
405
432
Utah
Acquisition
Sub
Inc
3.95%,
06/15/2026
595
681
5.25%,
06/15/2046
170
223
Viatris
Inc
1.13%,
06/22/2022
(g)
80
81
2.30%,
06/22/2027
(g)
120
128
2.70%,
06/22/2030
(g)
160
170
3.85%,
06/22/2040
(g)
120
135
4.00%,
06/22/2050
(g)
160
183
Wyeth
LLC
5.95%,
04/01/2037
91
136
6.50%,
02/01/2034
144
225
Zoetis
Inc
2.00%,
05/15/2030
350
362
3.00%,
05/15/2050
175
193
3.25%,
02/01/2023
100
105
3.95%,
09/12/2047
5
6
$
49,623
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
124
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pipelines
-
0.88%
Boardwalk
Pipelines
LP
3.38%,
02/01/2023
$
200
$
209
Cheniere
Corpus
Christi
Holdings
LLC
3.70%,
11/15/2029
310
345
Columbia
Pipeline
Group
Inc
5.80%,
06/01/2045
250
342
Enable
Midstream
Partners
LP
5.00%,
05/15/2044
500
482
Enbridge
Energy
Partners
LP
7.38%,
10/15/2045
100
153
Enbridge
Inc
2.50%,
01/15/2025
155
166
3.13%,
11/15/2029
155
170
5.50%,
12/01/2046
30
40
Energy
Transfer
Operating
LP
2.90%,
05/15/2025
315
333
3.60%,
02/01/2023
15
16
3.75%,
05/15/2030
160
173
4.75%,
01/15/2026
50
57
5.15%,
03/15/2045
400
434
5.20%,
02/01/2022
102
106
5.25%,
04/15/2029
400
467
5.30%,
04/15/2047
15
17
5.95%,
10/01/2043
350
396
6.13%,
12/15/2045
525
620
6.25%,
04/15/2049
500
605
6.50%,
02/01/2042
402
490
Enterprise
Products
Operating
LLC
2.80%,
01/31/2030
120
130
3.35%,
03/15/2023
300
317
3.70%,
02/15/2026
525
595
3.70%,
01/31/2051
250
275
3.75%,
02/15/2025
500
560
3.90%,
02/15/2024
250
273
4.25%,
02/15/2048
155
182
4.85%,
08/15/2042
300
373
4.85%,
03/15/2044
430
533
4.90%,
05/15/2046
400
509
6.13%,
10/15/2039
123
171
6.45%,
09/01/2040
177
253
6.88%,
03/01/2033
15
21
Kinder
Morgan
Energy
Partners
LP
3.50%,
09/01/2023
200
214
4.15%,
03/01/2022
300
313
4.70%,
11/01/2042
200
229
5.00%,
03/01/2043
100
118
5.40%,
09/01/2044
400
501
6.38%,
03/01/2041
128
169
6.50%,
09/01/2039
112
146
6.95%,
01/15/2038
112
153
7.40%,
03/15/2031
177
237
Kinder
Morgan
Inc
2.00%,
02/15/2031
310
312
3.15%,
01/15/2023
500
526
3.25%,
08/01/2050
310
308
4.30%,
06/01/2025
55
63
5.05%,
02/15/2046
15
18
5.55%,
06/01/2045
50
64
MPLX
LP
1.75%,
03/01/2026
165
171
4.13%,
03/01/2027
425
490
4.25%,
12/01/2027
400
470
4.50%,
07/15/2023
30
33
4.50%,
04/15/2038
220
252
4.70%,
04/15/2048
185
219
4.88%,
12/01/2024
30
34
4.90%,
04/15/2058
60
71
5.20%,
03/01/2047
330
401
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pipelines
(continued)
MPLX
LP
(continued)
5.20%,
12/01/2047
$
200
$
242
5.50%,
02/15/2049
170
224
ONEOK
Inc
2.20%,
09/15/2025
160
165
2.75%,
09/01/2024
175
185
3.40%,
09/01/2029
100
107
4.25%,
02/01/2022
300
309
4.45%,
09/01/2049
500
526
ONEOK
Partners
LP
5.00%,
09/15/2023
250
275
Plains
All
American
Pipeline
LP
/
PAA
Finance
Corp
2.85%,
01/31/2023
200
207
3.65%,
06/01/2022
128
132
4.30%,
01/31/2043
200
197
4.50%,
12/15/2026
300
336
4.65%,
10/15/2025
15
17
Sabine
Pass
Liquefaction
LLC
5.00%,
03/15/2027
360
424
5.63%,
03/01/2025
390
455
5.75%,
05/15/2024
300
343
5.88%,
06/30/2026
345
417
Spectra
Energy
Partners
LP
5.95%,
09/25/2043
200
259
Sunoco
Logistics
Partners
Operations
LP
3.45%,
01/15/2023
200
209
4.95%,
01/15/2043
200
207
5.35%,
05/15/2045
15
17
Texas
Eastern
Transmission
LP
7.00%,
07/15/2032
100
139
TransCanada
PipeLines
Ltd
4.25%,
05/15/2028
300
354
4.75%,
05/15/2038
300
375
4.88%,
05/15/2048
420
543
5.60%,
03/31/2034
300
392
6.10%,
06/01/2040
25
34
7.25%,
08/15/2038
51
77
Williams
Cos
Inc/The
3.35%,
08/15/2022
15
16
3.75%,
06/15/2027
400
456
3.90%,
01/15/2025
350
388
5.10%,
09/15/2045
180
222
6.30%,
04/15/2040
343
456
$
24,030
Private
Equity
-
0.01%
Brookfield
Asset
Management
Inc
4.00%,
01/15/2025
300
335
Regional
Authority
-
0.35%
Province
of
Alberta
Canada
1.00%,
05/20/2025
555
564
3.30%,
03/15/2028
850
982
Province
of
British
Columbia
Canada
2.00%,
10/23/2022
1,200
1,239
6.50%,
01/15/2026
18
23
Province
of
Manitoba
Canada
3.05%,
05/14/2024
500
544
Province
of
Ontario
Canada
1.13%,
10/07/2030
325
321
1.75%,
01/24/2023
2,015
2,075
2.00%,
10/02/2029
400
428
3.20%,
05/16/2024
250
273
3.40%,
10/17/2023
305
331
Province
of
Quebec
Canada
0.60%,
07/23/2025
1,145
1,150
1.35%,
05/28/2030
310
314
1.50%,
02/11/2025
295
307
2.63%,
02/13/2023
1,000
1,049
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
125
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Regional
Authority
(continued)
Province
of
Quebec
Canada
(continued)
7.50%,
09/15/2029
$
64
$
97
$
9,697
REITs
-
0.89%
Alexandria
Real
Estate
Equities
Inc
1.88%,
02/01/2033
250
250
2.75%,
12/15/2029
80
87
3.38%,
08/15/2031
115
132
4.00%,
01/15/2024
250
275
4.00%,
02/01/2050
85
106
4.90%,
12/15/2030
80
102
American
Campus
Communities
Operating
Partnership
LP
2.85%,
02/01/2030
155
162
3.63%,
11/15/2027
300
331
American
Tower
Corp
0.60%,
01/15/2024
360
360
1.30%,
09/15/2025
80
82
1.88%,
10/15/2030
165
166
2.90%,
01/15/2030
160
174
2.95%,
01/15/2051
180
180
3.38%,
10/15/2026
500
562
3.50%,
01/31/2023
530
562
3.70%,
10/15/2049
165
187
4.70%,
03/15/2022
278
292
AvalonBay
Communities
Inc
2.30%,
03/01/2030
160
171
4.20%,
12/15/2023
400
441
Boston
Properties
LP
2.75%,
10/01/2026
550
600
2.90%,
03/15/2030
415
447
Brixmor
Operating
Partnership
LP
3.85%,
02/01/2025
300
329
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp
3.85%,
04/15/2023
20
21
Crown
Castle
International
Corp
1.35%,
07/15/2025
370
378
3.10%,
11/15/2029
150
165
3.20%,
09/01/2024
400
435
3.25%,
01/15/2051
370
390
3.30%,
07/01/2030
155
174
4.00%,
11/15/2049
110
130
5.25%,
01/15/2023
30
33
CubeSmart
LP
2.00%,
02/15/2031
125
125
Digital
Realty
Trust
LP
4.45%,
07/15/2028
250
301
Duke
Realty
LP
1.75%,
07/01/2030
160
162
2.88%,
11/15/2029
75
83
4.00%,
09/15/2028
400
471
Equinix
Inc
1.00%,
09/15/2025
165
165
1.25%,
07/15/2025
160
163
1.80%,
07/15/2027
160
165
2.63%,
11/18/2024
155
166
3.20%,
11/18/2029
260
285
ERP
Operating
LP
2.50%,
02/15/2030
125
135
Essex
Portfolio
LP
3.00%,
01/15/2030
170
187
4.00%,
03/01/2029
300
350
4.50%,
03/15/2048
300
388
Federal
Realty
Investment
Trust
1.25%,
02/15/2026
170
173
4.50%,
12/01/2044
250
295
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
REITs
(continued)
GLP
Capital
LP
/
GLP
Financing
II
Inc
4.00%,
01/15/2030
$
170
$
185
5.38%,
04/15/2026
300
344
Healthcare
Trust
of
America
Holdings
LP
2.00%,
03/15/2031
170
170
Healthpeak
Properties
Inc
3.00%,
01/15/2030
150
164
3.40%,
02/01/2025
300
331
4.20%,
03/01/2024
250
274
6.75%,
02/01/2041
300
441
Kilroy
Realty
LP
2.50%,
11/15/2032
165
167
Kimco
Realty
Corp
2.70%,
10/01/2030
165
178
3.70%,
10/01/2049
330
355
Life
Storage
LP
2.20%,
10/15/2030
85
87
Mid-America
Apartments
LP
1.70%,
02/15/2031
125
125
4.00%,
11/15/2025
500
566
National
Retail
Properties
Inc
4.80%,
10/15/2048
200
244
Office
Properties
Income
Trust
4.00%,
07/15/2022
400
409
Omega
Healthcare
Investors
Inc
4.50%,
01/15/2025
300
328
4.95%,
04/01/2024
750
816
Prologis
LP
1.25%,
10/15/2030
165
163
2.13%,
04/15/2027
145
156
2.25%,
04/15/2030
140
150
3.00%,
04/15/2050
110
122
3.88%,
09/15/2028
250
296
Realty
Income
Corp
0.75%,
03/15/2026
430
429
3.25%,
01/15/2031
165
187
4.65%,
08/01/2023
250
274
Simon
Property
Group
LP
2.00%,
09/13/2024
915
956
2.45%,
09/13/2029
140
147
3.25%,
11/30/2026
500
554
3.25%,
09/13/2049
140
143
3.50%,
09/01/2025
165
183
4.25%,
11/30/2046
130
151
6.75%,
02/01/2040
25
37
SL
Green
Operating
Partnership
LP
3.25%,
10/15/2022
300
310
UDR
Inc
3.20%,
01/15/2030
165
184
4.00%,
10/01/2025
200
227
Ventas
Realty
LP
3.00%,
01/15/2030
200
215
3.50%,
04/15/2024
300
326
5.70%,
09/30/2043
300
388
VEREIT
Operating
Partnership
LP
2.20%,
06/15/2028
180
184
3.10%,
12/15/2029
375
405
Welltower
Inc
3.63%,
03/15/2024
600
654
4.13%,
03/15/2029
300
350
Weyerhaeuser
Co
7.38%,
03/15/2032
300
450
WP
Carey
Inc
2.40%,
02/01/2031
85
88
$
24,251
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
126
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Retail
-
0.82%
AutoZone
Inc
1.65%,
01/15/2031
$
165
$
164
3.75%,
06/01/2027
250
287
Costco
Wholesale
Corp
1.38%,
06/20/2027
155
160
1.60%,
04/20/2030
155
159
1.75%,
04/20/2032
155
161
2.30%,
05/18/2022
310
318
2.75%,
05/18/2024
50
54
3.00%,
05/18/2027
150
168
Dollar
General
Corp
4.15%,
11/01/2025
500
574
Dollar
Tree
Inc
4.20%,
05/15/2028
185
220
Home
Depot
Inc/The
2.13%,
09/15/2026
250
269
2.63%,
06/01/2022
30
31
2.70%,
04/01/2023
30
31
2.95%,
06/15/2029
435
494
3.50%,
09/15/2056
305
381
3.75%,
02/15/2024
380
417
3.90%,
06/15/2047
30
38
4.20%,
04/01/2043
520
676
4.25%,
04/01/2046
590
783
4.40%,
03/15/2045
20
27
5.95%,
04/01/2041
351
542
Kohl's
Corp
5.55%,
07/17/2045
250
269
Lowe's
Cos
Inc
1.30%,
04/15/2028
165
166
1.70%,
10/15/2030
165
167
3.00%,
10/15/2050
50
53
3.10%,
05/03/2027
530
595
3.65%,
04/05/2029
465
543
3.70%,
04/15/2046
40
47
4.00%,
04/15/2025
160
182
4.05%,
05/03/2047
30
38
4.38%,
09/15/2045
500
628
5.00%,
04/15/2040
160
217
McDonald's
Corp
1.45%,
09/01/2025
160
166
2.13%,
03/01/2030
160
169
2.63%,
09/01/2029
415
454
3.38%,
05/26/2025
500
555
3.50%,
07/01/2027
325
373
3.63%,
09/01/2049
115
135
3.70%,
02/15/2042
128
150
4.70%,
12/09/2035
25
32
4.88%,
07/15/2040
9
12
4.88%,
12/09/2045
250
340
6.30%,
10/15/2037
262
395
O'Reilly
Automotive
Inc
1.75%,
03/15/2031
85
85
3.85%,
06/15/2023
300
321
4.35%,
06/01/2028
300
357
Starbucks
Corp
2.00%,
03/12/2027
160
170
3.55%,
08/15/2029
500
582
3.85%,
10/01/2023
530
576
4.45%,
08/15/2049
300
396
Target
Corp
2.35%,
02/15/2030
320
350
2.50%,
04/15/2026
500
553
2.90%,
01/15/2022
25
26
TJX
Cos
Inc/The
1.15%,
05/15/2028
130
131
1.60%,
05/15/2031
130
131
2.50%,
05/15/2023
500
523
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Retail
(continued)
Walgreens
Boots
Alliance
Inc
3.45%,
06/01/2026
$
420
$
465
3.80%,
11/18/2024
300
332
4.80%,
11/18/2044
355
403
Walmart
Inc
2.35%,
12/15/2022
500
521
2.85%,
07/08/2024
575
622
2.95%,
09/24/2049
245
282
3.05%,
07/08/2026
500
563
3.25%,
07/08/2029
490
570
3.40%,
06/26/2023
530
569
3.70%,
06/26/2028
390
459
3.95%,
06/28/2038
185
236
5.63%,
04/01/2040
38
58
5.63%,
04/15/2041
280
428
7.55%,
02/15/2030
628
960
$
22,309
Semiconductors
-
0.48%
Applied
Materials
Inc
1.75%,
06/01/2030
160
166
3.30%,
04/01/2027
35
40
3.90%,
10/01/2025
500
571
4.35%,
04/01/2047
40
55
5.10%,
10/01/2035
250
348
Broadcom
Corp
/
Broadcom
Cayman
Finance
Ltd
3.88%,
01/15/2027
910
1,021
Broadcom
Inc
2.25%,
11/15/2023
90
94
3.15%,
11/15/2025
600
655
3.63%,
10/15/2024
350
385
4.15%,
11/15/2030
285
330
4.25%,
04/15/2026
500
573
4.30%,
11/15/2032
185
219
4.75%,
04/15/2029
730
871
Intel
Corp
2.45%,
11/15/2029
310
336
2.60%,
05/19/2026
530
578
2.70%,
12/15/2022
25
26
3.15%,
05/11/2027
540
610
3.25%,
11/15/2049
315
353
3.40%,
03/25/2025
160
178
3.73%,
12/08/2047
240
287
3.75%,
03/25/2027
160
185
4.00%,
12/15/2032
200
249
4.25%,
12/15/2042
200
258
4.60%,
03/25/2040
160
211
4.80%,
10/01/2041
77
105
4.90%,
07/29/2045
25
35
KLA
Corp
4.65%,
11/01/2024
500
569
Lam
Research
Corp
1.90%,
06/15/2030
155
161
2.88%,
06/15/2050
235
253
Marvell
Technology
Group
Ltd
4.88%,
06/22/2028
300
354
Micron
Technology
Inc
2.50%,
04/24/2023
90
94
4.19%,
02/15/2027
115
135
4.66%,
02/15/2030
115
141
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA
Inc
3.15%,
05/01/2027
(g)
80
88
QUALCOMM
Inc
1.30%,
05/20/2028
(g)
411
416
1.65%,
05/20/2032
(g)
340
340
3.25%,
05/20/2027
320
363
4.65%,
05/20/2035
115
154
4.80%,
05/20/2045
425
605
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
127
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Semiconductors
(continued)
Texas
Instruments
Inc
1.38%,
03/12/2025
$
160
$
166
1.75%,
05/04/2030
245
254
4.15%,
05/15/2048
205
274
$
13,106
Software
-
0.68%
Activision
Blizzard
Inc
1.35%,
09/15/2030
85
83
2.50%,
09/15/2050
165
161
Adobe
Inc
1.90%,
02/01/2025
315
333
2.30%,
02/01/2030
160
173
Fidelity
National
Information
Services
Inc
3.00%,
08/15/2026
40
44
3.50%,
04/15/2023
30
32
3.75%,
05/21/2029
400
470
Fiserv
Inc
3.50%,
10/01/2022
600
628
3.50%,
07/01/2029
310
354
3.80%,
10/01/2023
400
436
3.85%,
06/01/2025
300
338
Intuit
Inc
1.35%,
07/15/2027
165
169
Microsoft
Corp
2.38%,
02/12/2022
380
388
2.40%,
02/06/2022
690
704
2.40%,
08/08/2026
55
60
2.53%,
06/01/2050
792
835
2.68%,
06/01/2060
1,209
1,310
3.13%,
11/03/2025
700
783
3.30%,
02/06/2027
200
228
3.45%,
08/08/2036
750
925
3.63%,
12/15/2023
30
33
3.70%,
08/08/2046
950
1,205
4.10%,
02/06/2037
113
148
4.20%,
11/03/2035
430
565
Oracle
Corp
2.40%,
09/15/2023
30
31
2.50%,
05/15/2022
30
31
2.50%,
10/15/2022
1,070
1,112
2.50%,
04/01/2025
150
161
2.63%,
02/15/2023
390
408
2.65%,
07/15/2026
700
769
2.80%,
04/01/2027
850
937
2.95%,
04/01/2030
150
168
3.60%,
04/01/2040
150
176
3.60%,
04/01/2050
150
175
3.80%,
11/15/2037
250
302
3.90%,
05/15/2035
600
737
4.00%,
07/15/2046
780
957
4.30%,
07/08/2034
1,015
1,285
4.38%,
05/15/2055
610
801
ServiceNow
Inc
1.40%,
09/01/2030
165
161
$
18,616
Sovereign
-
1.72%
Canada
Government
International
Bond
1.63%,
01/22/2025
1,165
1,224
Chile
Government
International
Bond
2.45%,
01/31/2031
535
572
2.55%,
01/27/2032
475
511
3.13%,
03/27/2025
250
275
Colombia
Government
International
Bond
2.63%,
03/15/2023
500
516
3.00%,
01/30/2030
315
330
3.13%,
04/15/2031
325
345
4.50%,
01/28/2026
700
793
5.20%,
05/15/2049
700
889
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Sovereign
(continued)
Colombia
Government
International
Bond
(continued)
5.63%,
02/26/2044
$
500
$
647
6.13%,
01/18/2041
200
268
8.13%,
05/21/2024
201
246
10.38%,
01/28/2033
100
161
Export
Development
Canada
1.38%,
02/24/2023
250
256
2.00%,
05/17/2022
1,150
1,178
Export-Import
Bank
of
Korea
3.00%,
11/01/2022
500
523
3.25%,
11/10/2025
500
559
3.25%,
08/12/2026
500
564
5.00%,
04/11/2022
200
212
Hungary
Government
International
Bond
5.38%,
03/25/2024
500
570
7.63%,
03/29/2041
250
443
Indonesia
Government
International
Bond
2.85%,
02/14/2030
800
863
3.50%,
01/11/2028
200
224
3.70%,
10/30/2049
200
218
4.20%,
10/15/2050
500
595
4.75%,
02/11/2029
200
242
Israel
Government
AID
Bond
5.50%,
09/18/2023
25
28
5.50%,
04/26/2024
125
146
5.50%,
09/18/2033
12
18
Israel
Government
International
Bond
3.88%,
07/03/2050
200
240
4.00%,
06/30/2022
500
527
Japan
Bank
for
International
Cooperation
0.38%,
09/15/2023
510
511
0.63%,
05/22/2023
200
201
1.63%,
10/17/2022
900
921
2.00%,
10/17/2029
200
215
2.38%,
04/20/2026
300
327
2.50%,
06/01/2022
500
515
3.00%,
05/29/2024
1,000
1,086
3.38%,
07/31/2023
1,000
1,077
Korea
International
Bond
1.00%,
09/16/2030
200
197
3.88%,
09/11/2023
250
273
3.88%,
09/20/2048
500
680
Mexico
Government
International
Bond
2.66%,
05/24/2031
400
410
3.25%,
04/16/2030
(e)
200
216
3.60%,
01/30/2025
210
234
3.75%,
01/11/2028
750
843
3.77%,
05/24/2061
200
208
3.90%,
04/27/2025
(e)
600
673
4.50%,
04/22/2029
1,000
1,174
4.50%,
01/31/2050
800
937
4.60%,
02/10/2048
700
821
4.75%,
03/08/2044
506
601
5.55%,
01/21/2045
300
393
6.05%,
01/11/2040
464
622
Panama
Government
International
Bond
3.75%,
03/16/2025
800
885
3.87%,
07/23/2060
340
400
3.88%,
03/17/2028
500
574
4.50%,
05/15/2047
200
257
4.50%,
04/16/2050
400
513
6.70%,
01/26/2036
224
333
Peruvian
Government
International
Bond
1.86%,
12/01/2032
1,180
1,189
2.78%,
12/01/2060
180
182
5.63%,
11/18/2050
528
830
6.55%,
03/14/2037
126
191
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
128
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Sovereign
(continued)
Peruvian
Government
International
Bond
(continued)
7.35%,
07/21/2025
$
180
$
230
8.75%,
11/21/2033
192
328
Philippine
Government
International
Bond
2.46%,
05/05/2030
500
539
2.65%,
12/10/2045
400
405
2.95%,
05/05/2045
200
211
3.00%,
02/01/2028
300
332
3.70%,
02/02/2042
230
266
5.00%,
01/13/2037
300
396
6.38%,
10/23/2034
210
308
9.50%,
02/02/2030
400
658
10.63%,
03/16/2025
400
567
Republic
of
Italy
Government
International
Bond
1.25%,
02/17/2026
400
399
2.38%,
10/17/2024
200
210
2.88%,
10/17/2029
200
211
5.38%,
06/15/2033
420
539
6.88%,
09/27/2023
512
594
Republic
of
Poland
Government
International
Bond
4.00%,
01/22/2024
575
637
5.00%,
03/23/2022
528
559
State
of
Israel
2.50%,
01/15/2030
200
217
3.38%,
01/15/2050
800
884
Svensk
Exportkredit
AB
0.50%,
08/26/2025
335
334
2.38%,
03/09/2022
1,000
1,025
2.88%,
03/14/2023
200
211
Tennessee
Valley
Authority
2.88%,
02/01/2027
250
282
3.50%,
12/15/2042
400
499
4.25%,
09/15/2065
200
302
4.63%,
09/15/2060
300
473
5.25%,
09/15/2039
251
377
5.38%,
04/01/2056
154
265
6.75%,
11/01/2025
102
133
Uruguay
Government
International
Bond
4.13%,
11/20/2045
100
124
4.38%,
10/27/2027
390
461
4.98%,
04/20/2055
210
291
5.10%,
06/18/2050
725
1,014
$
46,953
Supranational
Bank
-
1.54%
African
Development
Bank
2.13%,
11/16/2022
1,500
1,553
Asian
Development
Bank
0.25%,
07/14/2023
330
330
0.25%,
10/06/2023
490
489
0.38%,
09/03/2025
325
324
1.75%,
09/13/2022
1,100
1,129
1.75%,
09/19/2029
650
693
1.88%,
02/18/2022
1,250
1,273
2.13%,
03/19/2025
300
322
2.63%,
01/30/2024
1,800
1,930
2.75%,
03/17/2023
400
422
5.82%,
06/16/2028
15
20
6.38%,
10/01/2028
51
71
Asian
Infrastructure
Investment
Bank/The
0.25%,
09/29/2023
340
339
2.25%,
05/16/2024
500
532
Corp
Andina
de
Fomento
3.25%,
02/11/2022
900
924
4.38%,
06/15/2022
22
23
Council
Of
Europe
Development
Bank
1.38%,
02/27/2025
320
333
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Supranational
Bank
(continued)
European
Bank
for
Reconstruction
&
Development
0.25%,
07/10/2023
$
330
$
330
0.50%,
11/25/2025
385
385
1.63%,
09/27/2024
650
681
1.88%,
02/23/2022
250
255
European
Investment
Bank
0.38%,
12/15/2025
340
339
0.63%,
10/21/2027
585
580
1.63%,
03/14/2025
315
332
1.88%,
02/10/2025
600
637
2.25%,
03/15/2022
400
410
2.25%,
08/15/2022
750
775
2.25%,
06/24/2024
500
534
2.38%,
05/24/2027
300
331
2.50%,
03/15/2023
600
630
2.63%,
05/20/2022
900
930
2.63%,
03/15/2024
1,000
1,076
3.25%,
01/29/2024
2,350
2,563
FMS
Wertmanagement
2.75%,
01/30/2024
500
538
Inter-American
Development
Bank
0.25%,
11/15/2023
325
325
0.63%,
09/16/2027
340
337
1.75%,
04/14/2022
1,000
1,020
1.75%,
03/14/2025
585
618
2.13%,
01/18/2022
340
347
2.38%,
07/07/2027
500
552
2.50%,
01/18/2023
1,900
1,989
3.00%,
10/04/2023
700
753
3.00%,
02/21/2024
250
271
3.13%,
09/18/2028
500
584
4.38%,
01/24/2044
50
74
International
Bank
for
Reconstruction
&
Development
0.25%,
11/24/2023
180
180
0.50%,
10/28/2025
1,630
1,633
0.75%,
11/24/2027
365
365
0.75%,
08/26/2030
735
717
1.63%,
02/10/2022
1,000
1,016
1.63%,
01/15/2025
475
499
1.75%,
10/23/2029
1,030
1,099
2.50%,
03/19/2024
800
857
2.50%,
11/25/2024
500
542
2.50%,
07/29/2025
1,700
1,858
2.50%,
11/22/2027
500
557
7.63%,
01/19/2023
1,512
1,739
International
Finance
Corp
0.38%,
07/16/2025
1,080
1,077
Nordic
Investment
Bank
0.38%,
09/11/2025
255
254
1.38%,
10/17/2022
200
204
2.25%,
05/21/2024
500
533
$
42,033
Telecommunications
-
1.35%
America
Movil
SAB
de
CV
3.13%,
07/16/2022
600
622
4.38%,
04/22/2049
250
320
6.13%,
03/30/2040
102
152
6.38%,
03/01/2035
200
301
AT&T
Inc
1.65%,
02/01/2028
330
337
2.25%,
02/01/2032
240
244
2.30%,
06/01/2027
465
496
2.63%,
12/01/2022
630
654
2.75%,
06/01/2031
310
331
2.95%,
07/15/2026
20
22
3.00%,
06/30/2022
200
207
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
129
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
AT&T
Inc
(continued)
3.10%,
02/01/2043
$
240
$
244
3.30%,
02/01/2052
480
476
3.50%,
06/01/2041
310
334
3.50%,
09/15/2053
(g)
904
905
3.50%,
02/01/2061
480
478
3.55%,
09/15/2055
(g)
1,898
1,892
3.65%,
06/01/2051
755
791
3.65%,
09/15/2059
(g)
1,057
1,067
3.80%,
02/15/2027
40
46
4.05%,
12/15/2023
500
553
4.10%,
02/15/2028
81
95
4.13%,
02/17/2026
30
35
4.25%,
03/01/2027
530
620
4.30%,
12/15/2042
221
258
4.35%,
03/01/2029
500
596
4.35%,
06/15/2045
260
300
4.50%,
03/09/2048
490
586
4.65%,
06/01/2044
500
601
British
Telecommunications
PLC
9.62%,
12/15/2030
577
957
Cisco
Systems
Inc
2.20%,
09/20/2023
30
31
2.50%,
09/20/2026
30
33
5.50%,
01/15/2040
600
898
Corning
Inc
4.38%,
11/15/2057
300
375
4.75%,
03/15/2042
102
130
Deutsche
Telekom
International
Finance
BV
8.75%,
06/15/2030
641
1,014
Juniper
Networks
Inc
2.00%,
12/10/2030
185
183
Motorola
Solutions
Inc
4.00%,
09/01/2024
454
507
Orange
SA
5.38%,
01/13/2042
102
145
Rogers
Communications
Inc
3.00%,
03/15/2023
400
420
3.70%,
11/15/2049
225
266
5.00%,
03/15/2044
500
686
Telefonica
Emisiones
SA
5.21%,
03/08/2047
530
679
7.05%,
06/20/2036
795
1,186
TELUS
Corp
4.60%,
11/16/2048
300
394
T-Mobile
USA
Inc
1.50%,
02/15/2026
(g)
320
328
2.05%,
02/15/2028
(g)
320
333
2.25%,
11/15/2031
(g)
350
359
2.55%,
02/15/2031
(g)
490
515
3.00%,
02/15/2041
(g)
170
176
3.30%,
02/15/2051
(g)
310
319
3.50%,
04/15/2025
(g)
150
166
3.75%,
04/15/2027
(g)
295
336
3.88%,
04/15/2030
(g)
295
342
4.38%,
04/15/2040
(g)
150
183
4.50%,
04/15/2050
(g)
295
364
Verizon
Communications
Inc
0.85%,
11/20/2025
180
181
1.50%,
09/18/2030
1,000
985
1.68%,
10/30/2030
(g)
1,473
1,467
1.75%,
01/20/2031
360
358
2.63%,
08/15/2026
25
27
2.65%,
11/20/2040
135
136
2.88%,
11/20/2050
360
363
2.99%,
10/30/2056
(g)
562
566
3.00%,
11/20/2060
180
182
3.38%,
02/15/2025
40
44
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
Verizon
Communications
Inc
(continued)
3.85%,
11/01/2042
$
275
$
326
3.88%,
02/08/2029
400
471
4.13%,
03/16/2027
500
589
4.33%,
09/21/2028
500
602
4.40%,
11/01/2034
750
936
4.50%,
08/10/2033
360
454
4.81%,
03/15/2039
1,225
1,598
5.01%,
04/15/2049
53
74
Vodafone
Group
PLC
4.25%,
09/17/2050
165
204
4.38%,
05/30/2028
560
671
5.00%,
05/30/2038
250
327
5.25%,
05/30/2048
400
557
6.15%,
02/27/2037
201
290
6.25%,
11/30/2032
500
685
$
36,981
Toys,
Games
&
Hobbies
-
0.00%
Hasbro
Inc
6.35%,
03/15/2040
25
32
Transportation
-
0.58%
Burlington
Northern
Santa
Fe
LLC
3.05%,
02/15/2051
1,000
1,139
3.55%,
02/15/2050
115
142
4.38%,
09/01/2042
545
721
4.45%,
03/15/2043
20
27
4.55%,
09/01/2044
15
20
5.15%,
09/01/2043
350
506
Canadian
National
Railway
Co
2.45%,
05/01/2050
65
67
3.20%,
08/02/2046
400
474
3.65%,
02/03/2048
75
92
Canadian
Pacific
Railway
Co
4.00%,
06/01/2028
300
352
4.80%,
09/15/2035
500
658
CSX
Corp
2.40%,
02/15/2030
65
70
2.60%,
11/01/2026
300
328
3.25%,
06/01/2027
40
45
3.35%,
11/01/2025
500
559
3.35%,
09/15/2049
70
80
3.80%,
03/01/2028
100
117
3.80%,
11/01/2046
30
36
4.25%,
11/01/2066
400
535
4.30%,
03/01/2048
105
135
4.75%,
05/30/2042
277
365
FedEx
Corp
3.10%,
08/05/2029
550
614
3.88%,
08/01/2042
100
117
4.40%,
01/15/2047
405
512
4.55%,
04/01/2046
400
515
4.75%,
11/15/2045
525
683
Kansas
City
Southern
4.70%,
05/01/2048
300
378
Norfolk
Southern
Corp
2.55%,
11/01/2029
155
168
3.85%,
01/15/2024
200
218
3.94%,
11/01/2047
398
485
4.84%,
10/01/2041
100
136
Ryder
System
Inc
2.50%,
09/01/2024
80
85
2.90%,
12/01/2026
150
165
Union
Pacific
Corp
2.15%,
02/05/2027
230
244
3.15%,
03/01/2024
400
433
3.55%,
08/15/2039
80
93
3.80%,
10/01/2051
577
706
3.84%,
03/20/2060
575
712
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
130
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Transportation
(continued)
Union
Pacific
Corp
(continued)
3.95%,
09/10/2028
$
210
$
249
4.15%,
01/15/2045
350
434
4.16%,
07/15/2022
256
269
United
Parcel
Service
Inc
2.45%,
10/01/2022
10
10
2.50%,
09/01/2029
125
136
3.40%,
09/01/2049
770
942
3.90%,
04/01/2025
665
751
4.88%,
11/15/2040
25
34
5.20%,
04/01/2040
125
178
6.20%,
01/15/2038
23
36
$
15,771
Water
-
0.04%
American
Water
Capital
Corp
3.75%,
09/01/2047
180
220
4.15%,
06/01/2049
650
861
6.59%,
10/15/2037
5
8
$
1,089
TOTAL
BONDS
$
900,716
MUNICIPAL
BONDS
-
0.65%
Principal
Amount
(000's)
Value
(000's)
California
-
0.21%
Bay
Area
Toll
Authority
6.26%,
04/01/2049
$
300
$
517
6.92%,
04/01/2040
120
187
California
State
University
2.98%,
11/01/2051
160
171
East
Bay
Municipal
Utility
District
Water
System
Revenue
5.87%,
06/01/2040
60
90
Los
Angeles
Department
of
Water
&
Power
Power
System
Revenue
6.57%,
07/01/2045
150
263
Los
Angeles
Unified
School
District/CA
5.75%,
07/01/2034
80
113
5.76%,
07/01/2029
50
64
6.76%,
07/01/2034
530
797
Regents
of
the
University
of
California
Medical
Center
Pooled
Revenue
6.55%,
05/15/2048
250
406
San
Diego
County
Water
Authority
6.14%,
05/01/2049
260
406
Santa
Clara
Valley
Transportation
Authority
5.88%,
04/01/2032
25
32
State
of
California
3.50%,
04/01/2028
165
193
7.30%,
10/01/2039
375
619
7.35%,
11/01/2039
500
830
7.60%,
11/01/2040
180
326
7.63%,
03/01/2040
280
486
University
of
California
5.77%,
05/15/2043
200
289
$
5,789
District
of
Columbia
-
0.03%
District
of
Columbia
Water
&
Sewer
Authority
4.81%,
10/01/2114
450
669
Georgia
-
0.02%
Municipal
Electric
Authority
of
Georgia
6.64%,
04/01/2057
149
226
7.06%,
04/01/2057
197
285
$
511
Illinois
-
0.06%
Chicago
Transit
Authority
Sales
&
Transfer
Tax
Receipts
Revenue
6.90%,
12/01/2040
200
289
MUNICIPAL
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Illinois
(continued)
Chicago
Transit
Authority
Sales
Tax
Receipts
Fund
6.20%,
12/01/2040
$
70
$
98
County
of
Cook
IL
6.23%,
11/15/2034
102
144
State
of
Illinois
4.95%,
06/01/2023
21
22
5.10%,
06/01/2033
1,000
1,076
7.35%,
07/01/2035
70
83
$
1,712
Kansas
-
0.01%
State
of
Kansas
Department
of
Transportation
4.60%,
09/01/2035
115
149
Nevada
-
0.00%
County
of
Clark
Department
of
Aviation
6.82%,
07/01/2045
25
42
New
Jersey
-
0.07%
New
Jersey
Economic
Development
Authority
(credit
support
from
Assured
Guaranty
Municipal
Corp
)
0.00%,
02/15/2023
(d),(i)
51
50
New
Jersey
Economic
Development
Authority
(credit
support
from
National
Public
Finance
Guarantee
Corp
)
7.43%,
02/15/2029
(i)
700
902
New
Jersey
Transportation
Trust
Fund
Authority
5.75%,
12/15/2028
190
226
6.56%,
12/15/2040
210
290
New
Jersey
Turnpike
Authority
7.10%,
01/01/2041
147
240
Rutgers
The
State
University
of
New
Jersey
5.67%,
05/01/2040
130
180
$
1,888
New
York
-
0.10%
City
of
New
York
NY
5.52%,
10/01/2037
25
35
Metropolitan
Transportation
Authority
6.81%,
11/15/2040
135
180
New
York
City
Transitional
Finance
Authority
Future
Tax
Secured
Revenue
5.51%,
08/01/2037
250
344
New
York
City
Water
&
Sewer
System
5.72%,
06/15/2042
270
415
5.95%,
06/15/2042
125
197
New
York
State
Dormitory
Authority
5.60%,
03/15/2040
435
607
Port
Authority
of
New
York
&
New
Jersey
4.46%,
10/01/2062
400
532
4.96%,
08/01/2046
300
410
6.04%,
12/01/2029
50
67
$
2,787
Ohio
-
0.01%
American
Municipal
Power
Inc
6.27%,
02/15/2050
69
98
Ohio
State
University/The
4.91%,
06/01/2040
125
173
$
271
Pennsylvania
-
0.02%
State
Public
School
Building
Authority
5.00%,
09/15/2027
500
606
Texas
-
0.09%
City
of
San
Antonio
TX
Electric
&
Gas
Systems
Revenue
5.81%,
02/01/2041
135
204
Dallas
Area
Rapid
Transit
5.02%,
12/01/2048
50
71
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
131
MUNICIPAL
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Texas
(continued)
Dallas
Convention
Center
Hotel
Development
Corp
7.09%,
01/01/2042
$
70
$
98
Dallas
County
Hospital
District
5.62%,
08/15/2044
83
122
Dallas
Independent
School
District
(credit
support
from
Permanent
School
Fund
Guarantee
Program
)
6.45%,
02/15/2035
(i)
50
51
Grand
Parkway
Transportation
Corp
5.18%,
10/01/2042
300
415
State
of
Texas
4.68%,
04/01/2040
100
135
5.52%,
04/01/2039
405
602
Texas
Transportation
Commission
State
Highway
Fund
5.18%,
04/01/2030
625
806
$
2,504
Utah
-
0.01%
State
of
Utah
3.54%,
07/01/2025
300
326
Wisconsin
-
0.02%
State
of
Wisconsin
(credit
support
from
Assured
Guaranty
Municipal
Corp
)
5.70%,
05/01/2026
(i)
330
388
TOTAL
MUNICIPAL
BONDS
$
17,642
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
63.44%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
2.87%
2.00%,
08/01/2029
$
353
$
371
2.00%,
10/01/2031
79
84
2.00%,
03/01/2032
153
160
2.50%,
10/01/2027
107
112
2.50%,
03/01/2028
239
250
2.50%,
06/01/2028
141
148
2.50%,
06/01/2028
326
341
2.50%,
07/01/2028
224
234
2.50%,
10/01/2028
139
145
2.50%,
10/01/2028
110
115
2.50%,
10/01/2029
292
306
2.50%,
12/01/2029
341
357
2.50%,
09/01/2030
591
618
2.50%,
01/01/2031
625
655
2.50%,
01/01/2031
69
72
2.50%,
02/01/2031
69
72
2.50%,
03/01/2031
200
209
2.50%,
12/01/2031
206
216
2.50%,
12/01/2031
231
242
2.50%,
02/01/2032
262
274
2.50%,
03/01/2032
338
353
2.50%,
11/01/2032
643
672
2.50%,
02/01/2033
203
212
2.50%,
03/01/2033
128
134
2.50%,
03/01/2033
558
583
2.50%,
04/01/2033
233
243
2.50%,
05/01/2033
108
113
2.50%,
06/01/2033
160
167
2.50%,
11/01/2036
128
136
2.50%,
02/01/2043
140
149
2.50%,
03/01/2043
108
115
3.00%,
01/01/2027
95
100
3.00%,
03/01/2027
76
80
3.00%,
05/01/2027
72
76
3.00%,
10/01/2028
241
253
3.00%,
07/01/2029
302
318
3.00%,
08/01/2029
130
137
3.00%,
10/01/2029
78
82
3.00%,
11/01/2029
133
140
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
3.00%,
07/01/2030
$
302
$
318
3.00%,
09/01/2030
406
427
3.00%,
11/01/2030
62
65
3.00%,
11/01/2030
129
136
3.00%,
01/01/2031
142
149
3.00%,
04/01/2031
222
233
3.00%,
02/01/2032
62
65
3.00%,
05/01/2032
98
104
3.00%,
12/01/2032
501
526
3.00%,
12/01/2032
447
469
3.00%,
01/01/2033
698
732
3.00%,
02/01/2033
409
430
3.00%,
03/01/2033
295
316
3.00%,
04/01/2033
176
186
3.00%,
04/01/2033
152
161
3.00%,
06/01/2033
108
114
3.00%,
09/01/2033
147
156
3.00%,
09/01/2033
156
166
3.00%,
12/01/2034
44
47
3.00%,
01/01/2035
31
33
3.00%,
02/01/2035
44
47
3.00%,
05/01/2035
387
408
3.00%,
02/01/2036
85
90
3.00%,
09/01/2036
79
85
3.00%,
02/01/2037
101
107
3.00%,
05/01/2037
132
139
3.00%,
06/01/2037
145
153
3.00%,
07/01/2037
220
231
3.00%,
09/01/2037
47
49
3.00%,
01/01/2043
187
203
3.00%,
01/01/2043
249
265
3.00%,
02/01/2043
1,035
1,103
3.00%,
03/01/2043
632
674
3.00%,
04/01/2043
225
239
3.00%,
05/01/2043
225
240
3.00%,
06/01/2043
402
426
3.00%,
07/01/2043
699
743
3.00%,
07/01/2043
367
391
3.00%,
07/01/2043
401
427
3.00%,
07/01/2043
672
715
3.00%,
08/01/2043
85
90
3.00%,
08/01/2043
126
135
3.00%,
08/01/2043
1,194
1,272
3.00%,
08/01/2043
231
246
3.00%,
09/01/2043
329
350
3.00%,
09/01/2043
221
235
3.00%,
09/01/2043
434
463
3.00%,
10/01/2043
127
135
3.00%,
10/01/2043
382
407
3.00%,
03/01/2045
445
469
3.00%,
04/01/2045
154
163
3.00%,
06/01/2045
558
588
3.00%,
07/01/2045
353
374
3.00%,
07/01/2045
331
349
3.00%,
08/01/2045
626
659
3.00%,
08/01/2045
221
234
3.00%,
08/01/2045
164
173
3.00%,
12/01/2045
897
944
3.00%,
03/01/2046
402
423
3.00%,
03/01/2046
135
142
3.00%,
04/01/2046
560
589
3.00%,
04/01/2046
59
62
3.00%,
05/01/2046
151
159
3.00%,
09/01/2046
651
685
3.00%,
10/01/2046
591
633
3.00%,
11/01/2046
1,063
1,116
3.00%,
11/01/2046
103
108
3.00%,
11/01/2046
615
646
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
132
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
3.00%,
11/01/2046
$
727
$
768
3.00%,
12/01/2046
769
810
3.00%,
12/01/2046
890
938
3.00%,
01/01/2047
1,197
1,263
3.00%,
03/01/2047
1,137
1,194
3.00%,
03/01/2048
509
533
3.50%,
10/01/2025
78
83
3.50%,
11/01/2025
109
115
3.50%,
12/01/2026
105
111
3.50%,
01/01/2029
104
111
3.50%,
01/01/2032
82
87
3.50%,
02/01/2032
50
53
3.50%,
03/01/2032
60
64
3.50%,
04/01/2032
60
65
3.50%,
08/01/2032
48
52
3.50%,
09/01/2033
231
245
3.50%,
01/01/2034
53
57
3.50%,
01/01/2035
114
123
3.50%,
02/01/2035
95
103
3.50%,
07/01/2035
133
144
3.50%,
09/01/2035
236
254
3.50%,
04/01/2037
68
73
3.50%,
06/01/2037
151
161
3.50%,
05/01/2041
258
276
3.50%,
02/01/2042
266
286
3.50%,
04/01/2042
85
92
3.50%,
06/01/2042
181
196
3.50%,
07/01/2042
287
309
3.50%,
07/01/2042
222
238
3.50%,
08/01/2042
129
140
3.50%,
08/01/2042
291
314
3.50%,
02/01/2044
473
511
3.50%,
06/01/2044
426
457
3.50%,
09/01/2044
233
250
3.50%,
02/01/2045
261
281
3.50%,
03/01/2045
376
403
3.50%,
06/01/2045
429
459
3.50%,
07/01/2045
715
766
3.50%,
09/01/2045
387
414
3.50%,
10/01/2045
437
468
3.50%,
11/01/2045
717
768
3.50%,
12/01/2045
572
612
3.50%,
12/01/2045
67
72
3.50%,
12/01/2045
453
484
3.50%,
01/01/2046
71
76
3.50%,
01/01/2046
200
216
3.50%,
03/01/2046
1,862
1,992
3.50%,
03/01/2046
363
392
3.50%,
04/01/2046
460
492
3.50%,
05/01/2046
495
533
3.50%,
06/01/2046
568
603
3.50%,
08/01/2046
399
428
3.50%,
04/01/2047
620
659
3.50%,
11/01/2047
664
703
3.50%,
11/01/2047
483
512
3.50%,
05/01/2048
87
92
3.50%,
06/01/2048
469
499
3.50%,
06/01/2048
309
329
3.50%,
09/01/2048
116
123
4.00%,
06/01/2025
70
75
4.00%,
07/01/2025
96
102
4.00%,
12/01/2030
26
28
4.00%,
08/01/2031
26
28
4.00%,
10/01/2031
39
43
4.00%,
11/01/2031
12
13
4.00%,
12/01/2031
19
21
4.00%,
11/01/2033
54
59
4.00%,
01/01/2034
90
98
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
4.00%,
07/01/2035
$
37
$
41
4.00%,
03/01/2037
156
169
4.00%,
05/01/2038
70
75
4.00%,
02/01/2041
155
170
4.00%,
06/01/2042
110
121
4.00%,
06/01/2042
86
95
4.00%,
08/01/2043
612
674
4.00%,
01/01/2044
94
103
4.00%,
02/01/2044
255
282
4.00%,
03/01/2044
92
101
4.00%,
04/01/2044
306
333
4.00%,
05/01/2044
77
84
4.00%,
07/01/2044
191
209
4.00%,
07/01/2044
254
277
4.00%,
10/01/2044
211
230
4.00%,
11/01/2044
469
517
4.00%,
12/01/2044
460
501
4.00%,
01/01/2045
131
143
4.00%,
02/01/2045
169
184
4.00%,
04/01/2045
161
175
4.00%,
05/01/2045
88
96
4.00%,
06/01/2045
184
201
4.00%,
07/01/2045
339
370
4.00%,
08/01/2045
72
78
4.00%,
08/01/2045
653
712
4.00%,
08/01/2045
57
62
4.00%,
09/01/2045
124
137
4.00%,
09/01/2045
754
818
4.00%,
10/01/2045
748
812
4.00%,
11/01/2045
465
504
4.00%,
12/01/2045
205
222
4.00%,
03/01/2047
603
653
4.00%,
08/01/2047
736
788
4.00%,
10/01/2047
466
500
4.00%,
12/01/2047
778
835
4.00%,
07/01/2048
524
559
4.00%,
08/01/2048
305
326
4.00%,
09/01/2048
363
388
4.50%,
08/01/2023
33
36
4.50%,
05/01/2024
34
37
4.50%,
02/01/2030
8
9
4.50%,
08/01/2030
6
7
4.50%,
05/01/2031
8
9
4.50%,
06/01/2031
57
64
4.50%,
06/01/2039
88
99
4.50%,
10/01/2039
65
73
4.50%,
10/01/2040
103
116
4.50%,
03/01/2041
273
307
4.50%,
03/01/2041
248
278
4.50%,
09/01/2041
105
113
4.50%,
11/01/2041
178
200
4.50%,
09/01/2043
150
168
4.50%,
11/01/2043
74
83
4.50%,
11/01/2043
115
129
4.50%,
01/01/2044
107
120
4.50%,
01/01/2044
71
78
4.50%,
03/01/2044
115
129
4.50%,
05/01/2044
183
204
4.50%,
07/01/2044
73
82
4.50%,
09/01/2044
73
82
4.50%,
10/01/2045
127
140
4.50%,
02/01/2046
366
399
4.50%,
03/01/2047
86
95
4.50%,
03/01/2047
375
412
4.50%,
04/01/2047
86
94
4.50%,
06/01/2047
189
206
4.50%,
09/01/2047
203
223
4.50%,
11/01/2047
50
54
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
133
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
4.50%,
05/01/2048
$
188
$
205
4.50%,
07/01/2048
351
381
4.50%,
11/01/2048
189
205
4.50%,
01/01/2049
688
747
4.50%,
05/01/2049
1,572
1,706
5.00%,
09/01/2023
27
30
5.00%,
04/01/2024
14
15
5.00%,
01/01/2025
52
58
5.00%,
12/01/2027
24
26
5.00%,
02/01/2030
4
4
5.00%,
03/01/2030
3
3
5.00%,
04/01/2034
89
102
5.00%,
06/01/2035
93
108
5.00%,
01/01/2038
157
182
5.00%,
11/01/2038
132
153
5.00%,
12/01/2038
142
165
5.00%,
09/01/2039
224
260
5.00%,
01/01/2040
139
161
5.00%,
05/01/2040
85
97
5.00%,
04/01/2041
92
105
5.00%,
06/01/2041
78
86
5.00%,
11/01/2041
285
323
5.00%,
11/01/2041
79
92
5.50%,
01/01/2028
54
60
5.50%,
04/01/2036
113
132
5.50%,
12/01/2036
88
103
5.50%,
12/01/2036
91
108
5.50%,
03/01/2039
132
155
5.50%,
04/01/2039
80
95
5.50%,
02/01/2040
121
142
5.50%,
06/01/2041
185
217
6.00%,
02/01/2027
6
7
$
78,604
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
17.22%
2.00%,
09/01/2028
101
106
2.00%,
05/01/2030
188
197
2.00%,
04/01/2032
87
91
2.00%,
01/01/2036
(j)
19,300
20,178
2.00%,
01/01/2051
(j)
53,500
55,575
2.50%,
01/01/2028
111
116
2.50%,
07/01/2028
144
151
2.50%,
08/01/2028
73
77
2.50%,
08/01/2028
140
147
2.50%,
09/01/2028
155
162
2.50%,
07/01/2029
85
89
2.50%,
07/01/2029
67
70
2.50%,
07/01/2029
212
222
2.50%,
09/01/2029
179
187
2.50%,
12/01/2029
81
85
2.50%,
01/01/2030
144
151
2.50%,
04/01/2030
175
183
2.50%,
05/01/2030
385
402
2.50%,
06/01/2030
237
248
2.50%,
08/01/2030
478
500
2.50%,
08/01/2030
115
120
2.50%,
01/01/2031
180
189
2.50%,
01/01/2031
177
185
2.50%,
02/01/2031
187
195
2.50%,
02/01/2031
256
267
2.50%,
05/01/2031
115
121
2.50%,
06/01/2031
196
204
2.50%,
11/01/2031
1,897
1,982
2.50%,
12/01/2031
310
324
2.50%,
01/01/2032
675
706
2.50%,
01/01/2032
377
394
2.50%,
02/01/2032
423
444
2.50%,
03/01/2032
112
117
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
2.50%,
03/01/2032
$
182
$
190
2.50%,
11/01/2032
32
34
2.50%,
12/01/2032
94
100
2.50%,
01/01/2033
135
141
2.50%,
02/01/2033
499
521
2.50%,
04/01/2033
980
1,023
2.50%,
07/01/2033
73
77
2.50%,
10/01/2034
1,123
1,172
2.50%,
02/01/2035
2,257
2,353
2.50%,
06/01/2035
3,753
3,914
2.50%,
01/01/2036
(j)
4,500
4,693
2.50%,
10/01/2036
87
91
2.50%,
10/01/2036
36
39
2.50%,
12/01/2036
160
169
2.50%,
07/01/2040
3,067
3,236
2.50%,
01/01/2043
411
440
2.50%,
08/01/2043
118
126
2.50%,
10/01/2043
258
275
2.50%,
12/01/2046
111
119
2.50%,
10/01/2050
4,734
5,008
2.50%,
01/01/2051
(j)
70,500
74,317
3.00%,
11/01/2026
84
88
3.00%,
02/01/2027
151
158
3.00%,
04/01/2027
767
816
3.00%,
08/01/2027
113
119
3.00%,
10/01/2028
289
304
3.00%,
11/01/2028
131
137
3.00%,
02/01/2029
99
104
3.00%,
03/01/2029
161
169
3.00%,
03/01/2029
116
122
3.00%,
04/01/2029
141
148
3.00%,
05/01/2029
141
149
3.00%,
06/01/2029
95
100
3.00%,
08/01/2029
86
90
3.00%,
10/01/2029
74
77
3.00%,
10/01/2029
77
81
3.00%,
10/01/2029
99
105
3.00%,
11/01/2029
76
80
3.00%,
01/01/2030
362
380
3.00%,
01/01/2030
153
161
3.00%,
01/01/2030
389
409
3.00%,
03/01/2030
238
251
3.00%,
06/01/2030
195
205
3.00%,
06/01/2030
211
222
3.00%,
09/01/2030
349
367
3.00%,
09/01/2030
79
83
3.00%,
10/01/2030
220
231
3.00%,
02/01/2031
92
97
3.00%,
04/01/2032
964
1,035
3.00%,
05/01/2032
129
136
3.00%,
08/01/2032
203
214
3.00%,
01/01/2033
38
40
3.00%,
02/01/2033
647
679
3.00%,
02/01/2033
2,183
2,292
3.00%,
08/01/2033
555
589
3.00%,
05/01/2034
205
214
3.00%,
05/01/2034
112
119
3.00%,
08/01/2034
417
447
3.00%,
10/01/2034
49
52
3.00%,
11/01/2034
133
141
3.00%,
12/01/2034
2,162
2,268
3.00%,
02/01/2035
131
139
3.00%,
02/01/2035
140
148
3.00%,
03/01/2035
62
65
3.00%,
04/01/2035
63
67
3.00%,
06/01/2035
156
165
3.00%,
07/01/2035
59
62
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
134
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.00%,
11/01/2035
$
85
$
90
3.00%,
07/01/2036
130
137
3.00%,
12/01/2036
199
210
3.00%,
12/01/2036
271
286
3.00%,
12/01/2036
405
426
3.00%,
02/01/2037
174
183
3.00%,
02/01/2037
27
28
3.00%,
04/01/2037
120
126
3.00%,
04/01/2037
86
90
3.00%,
07/01/2037
56
58
3.00%,
08/01/2037
89
94
3.00%,
09/01/2037
234
246
3.00%,
06/01/2040
2,660
2,819
3.00%,
04/01/2042
143
152
3.00%,
09/01/2042
73
78
3.00%,
12/01/2042
108
118
3.00%,
02/01/2043
653
696
3.00%,
02/01/2043
354
376
3.00%,
02/01/2043
392
428
3.00%,
04/01/2043
194
206
3.00%,
04/01/2043
271
288
3.00%,
04/01/2043
360
384
3.00%,
04/01/2043
195
207
3.00%,
04/01/2043
368
392
3.00%,
04/01/2043
288
305
3.00%,
04/01/2043
823
878
3.00%,
04/01/2043
285
303
3.00%,
04/01/2043
466
496
3.00%,
05/01/2043
39
41
3.00%,
05/01/2043
270
288
3.00%,
05/01/2043
368
390
3.00%,
05/01/2043
195
206
3.00%,
06/01/2043
370
394
3.00%,
06/01/2043
563
612
3.00%,
06/01/2043
621
659
3.00%,
06/01/2043
256
272
3.00%,
06/01/2043
325
344
3.00%,
07/01/2043
472
500
3.00%,
07/01/2043
200
213
3.00%,
07/01/2043
129
137
3.00%,
08/01/2043
87
93
3.00%,
08/01/2043
422
449
3.00%,
08/01/2043
626
667
3.00%,
08/01/2043
230
245
3.00%,
08/01/2043
86
90
3.00%,
08/01/2043
127
135
3.00%,
09/01/2043
515
550
3.00%,
09/01/2043
244
260
3.00%,
10/01/2043
653
695
3.00%,
10/01/2043
39
41
3.00%,
11/01/2043
208
222
3.00%,
11/01/2043
120
128
3.00%,
11/01/2043
84
90
3.00%,
01/01/2044
111
119
3.00%,
01/01/2045
360
380
3.00%,
05/01/2045
524
553
3.00%,
09/01/2045
69
73
3.00%,
10/01/2045
353
373
3.00%,
11/01/2045
73
76
3.00%,
11/01/2045
179
188
3.00%,
12/01/2045
435
458
3.00%,
01/01/2046
294
309
3.00%,
02/01/2046
519
547
3.00%,
02/01/2046
441
465
3.00%,
02/01/2046
209
220
3.00%,
04/01/2046
87
92
3.00%,
05/01/2046
216
228
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.00%,
05/01/2046
$
265
$
279
3.00%,
05/01/2046
79
83
3.00%,
06/01/2046
148
157
3.00%,
08/01/2046
451
474
3.00%,
08/01/2046
188
199
3.00%,
09/01/2046
235
247
3.00%,
09/01/2046
228
239
3.00%,
10/01/2046
1,032
1,086
3.00%,
10/01/2046
121
128
3.00%,
11/01/2046
100
105
3.00%,
11/01/2046
751
790
3.00%,
11/01/2046
629
662
3.00%,
11/01/2046
80
84
3.00%,
11/01/2046
545
571
3.00%,
11/01/2046
483
508
3.00%,
12/01/2046
1,464
1,539
3.00%,
12/01/2046
777
817
3.00%,
01/01/2047
321
338
3.00%,
01/01/2047
812
850
3.00%,
02/01/2047
146
153
3.00%,
02/01/2047
600
631
3.00%,
05/01/2047
301
317
3.00%,
10/01/2048
61
64
3.00%,
09/01/2049
4,661
4,896
3.00%,
10/01/2049
8,795
9,262
3.00%,
10/01/2049
1,477
1,554
3.00%,
11/01/2049
2,545
2,673
3.00%,
11/01/2049
740
776
3.00%,
11/01/2049
1,461
1,537
3.00%,
11/01/2049
2,828
3,038
3.00%,
03/01/2050
5,733
6,102
3.00%,
03/01/2050
7,084
7,547
3.00%,
06/01/2050
4,656
4,945
3.00%,
07/01/2050
2,860
3,000
3.00%,
07/01/2050
12,114
12,793
3.00%,
10/01/2050
3,855
4,058
3.50%,
10/01/2025
137
146
3.50%,
11/01/2025
74
79
3.50%,
11/01/2025
181
193
3.50%,
01/01/2026
165
175
3.50%,
03/01/2026
157
167
3.50%,
12/01/2026
139
148
3.50%,
02/01/2027
82
87
3.50%,
11/01/2028
136
146
3.50%,
12/01/2028
74
80
3.50%,
03/01/2029
120
129
3.50%,
01/01/2031
6
6
3.50%,
04/01/2031
12
13
3.50%,
02/01/2032
58
63
3.50%,
04/01/2032
52
56
3.50%,
05/01/2032
114
121
3.50%,
06/01/2032
218
238
3.50%,
07/01/2032
74
80
3.50%,
09/01/2032
112
121
3.50%,
12/01/2032
2,534
2,738
3.50%,
09/01/2033
56
60
3.50%,
09/01/2033
110
117
3.50%,
10/01/2033
118
127
3.50%,
10/01/2033
370
393
3.50%,
11/01/2033
122
132
3.50%,
01/01/2034
82
89
3.50%,
06/01/2034
142
154
3.50%,
08/01/2034
37
40
3.50%,
11/01/2034
88
96
3.50%,
02/01/2035
1,643
1,755
3.50%,
12/01/2035
179
192
3.50%,
07/01/2036
200
215
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
135
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.50%,
02/01/2037
$
139
$
148
3.50%,
03/01/2037
169
179
3.50%,
05/01/2037
33
35
3.50%,
07/01/2037
71
75
3.50%,
10/01/2037
84
89
3.50%,
01/01/2038
232
246
3.50%,
01/01/2041
718
774
3.50%,
03/01/2041
974
1,052
3.50%,
10/01/2041
91
97
3.50%,
12/01/2041
276
299
3.50%,
12/01/2041
298
321
3.50%,
01/01/2042
104
112
3.50%,
03/01/2042
250
272
3.50%,
03/01/2042
69
74
3.50%,
03/01/2042
96
103
3.50%,
05/01/2042
79
85
3.50%,
05/01/2042
462
497
3.50%,
07/01/2042
129
139
3.50%,
07/01/2042
73
79
3.50%,
10/01/2042
553
597
3.50%,
04/01/2043
156
170
3.50%,
05/01/2043
175
190
3.50%,
05/01/2043
370
404
3.50%,
05/01/2043
485
528
3.50%,
06/01/2043
405
443
3.50%,
07/01/2043
206
225
3.50%,
07/01/2043
529
571
3.50%,
08/01/2043
386
415
3.50%,
08/01/2043
108
118
3.50%,
09/01/2043
130
141
3.50%,
12/01/2043
132
142
3.50%,
01/01/2044
1,287
1,413
3.50%,
02/01/2044
120
130
3.50%,
07/01/2044
766
827
3.50%,
10/01/2044
140
150
3.50%,
10/01/2044
355
381
3.50%,
11/01/2044
367
394
3.50%,
12/01/2044
353
379
3.50%,
12/01/2044
77
83
3.50%,
12/01/2044
288
308
3.50%,
01/01/2045
385
411
3.50%,
04/01/2045
353
378
3.50%,
05/01/2045
139
148
3.50%,
07/01/2045
71
76
3.50%,
07/01/2045
381
408
3.50%,
08/01/2045
376
402
3.50%,
08/01/2045
415
444
3.50%,
09/01/2045
457
492
3.50%,
09/01/2045
516
553
3.50%,
09/01/2045
208
222
3.50%,
11/01/2045
337
361
3.50%,
11/01/2045
174
186
3.50%,
12/01/2045
598
640
3.50%,
12/01/2045
427
457
3.50%,
12/01/2045
321
343
3.50%,
01/01/2046
504
537
3.50%,
01/01/2046
668
713
3.50%,
02/01/2046
129
137
3.50%,
02/01/2046
285
304
3.50%,
03/01/2046
446
476
3.50%,
03/01/2046
446
476
3.50%,
05/01/2046
505
539
3.50%,
06/01/2046
80
86
3.50%,
07/01/2046
431
459
3.50%,
09/01/2046
378
404
3.50%,
11/01/2046
690
739
3.50%,
12/01/2046
444
474
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.50%,
01/01/2047
$
898
$
958
3.50%,
02/01/2047
696
740
3.50%,
03/01/2047
76
81
3.50%,
09/01/2047
212
225
3.50%,
11/01/2047
933
989
3.50%,
01/01/2048
843
893
3.50%,
02/01/2048
794
843
3.50%,
02/01/2048
93
99
3.50%,
03/01/2048
570
604
3.50%,
04/01/2048
357
379
3.50%,
10/01/2048
87
92
3.50%,
10/01/2048
63
67
3.50%,
04/01/2049
873
926
3.50%,
06/01/2049
1,204
1,272
3.50%,
06/01/2049
884
936
3.50%,
06/01/2049
1,849
1,950
3.50%,
07/01/2049
1,831
1,935
3.50%,
07/01/2049
3,307
3,493
3.50%,
07/01/2049
2,585
2,737
3.50%,
08/01/2049
2,577
2,722
3.50%,
09/01/2049
1,790
1,907
3.50%,
11/01/2049
7,998
8,519
3.50%,
11/01/2049
3,323
3,513
3.50%,
11/01/2049
3,006
3,177
3.50%,
05/01/2050
4,566
4,824
3.50%,
09/01/2050
2,893
3,102
4.00%,
07/01/2025
112
118
4.00%,
04/01/2029
3
3
4.00%,
10/01/2030
9
10
4.00%,
12/01/2030
80
86
4.00%,
02/01/2031
27
29
4.00%,
03/01/2031
593
631
4.00%,
07/01/2031
17
19
4.00%,
10/01/2031
72
78
4.00%,
11/01/2031
17
18
4.00%,
12/01/2031
14
15
4.00%,
01/01/2032
20
22
4.00%,
09/01/2033
148
162
4.00%,
01/01/2036
148
163
4.00%,
02/01/2036
97
106
4.00%,
06/01/2036
84
92
4.00%,
01/01/2037
118
129
4.00%,
02/01/2037
266
287
4.00%,
07/01/2038
241
258
4.00%,
02/01/2039
68
73
4.00%,
10/01/2039
111
120
4.00%,
01/01/2041
273
300
4.00%,
02/01/2041
73
80
4.00%,
02/01/2041
209
229
4.00%,
09/01/2041
111
122
4.00%,
02/01/2043
91
99
4.00%,
12/01/2043
101
111
4.00%,
01/01/2044
289
316
4.00%,
06/01/2044
154
168
4.00%,
06/01/2044
259
284
4.00%,
07/01/2044
214
233
4.00%,
07/01/2044
263
287
4.00%,
09/01/2044
115
126
4.00%,
10/01/2044
177
194
4.00%,
10/01/2044
413
451
4.00%,
11/01/2044
190
208
4.00%,
12/01/2044
284
313
4.00%,
12/01/2044
49
54
4.00%,
01/01/2045
95
103
4.00%,
02/01/2045
116
126
4.00%,
02/01/2045
156
170
4.00%,
02/01/2045
272
296
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
136
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
4.00%,
07/01/2045
$
212
$
230
4.00%,
07/01/2045
166
181
4.00%,
09/01/2045
277
301
4.00%,
10/01/2045
256
279
4.00%,
10/01/2045
70
75
4.00%,
11/01/2045
114
123
4.00%,
11/01/2045
377
411
4.00%,
12/01/2045
182
199
4.00%,
12/01/2045
90
99
4.00%,
01/01/2046
376
413
4.00%,
02/01/2046
287
310
4.00%,
02/01/2046
84
91
4.00%,
03/01/2046
122
133
4.00%,
03/01/2046
76
82
4.00%,
04/01/2046
190
206
4.00%,
07/01/2046
370
399
4.00%,
04/01/2047
611
658
4.00%,
06/01/2047
487
524
4.00%,
08/01/2047
690
740
4.00%,
08/01/2047
362
389
4.00%,
08/01/2047
91
98
4.00%,
08/01/2047
551
593
4.00%,
09/01/2047
633
679
4.00%,
11/01/2047
1,223
1,313
4.00%,
01/01/2048
978
1,053
4.00%,
02/01/2048
458
491
4.00%,
03/01/2048
227
243
4.00%,
03/01/2048
7,995
8,610
4.00%,
05/01/2048
1,750
1,882
4.00%,
06/01/2048
398
426
4.00%,
06/01/2048
1,035
1,110
4.00%,
07/01/2048
288
308
4.00%,
08/01/2048
172
183
4.00%,
08/01/2048
147
157
4.00%,
09/01/2048
568
606
4.00%,
09/01/2048
487
521
4.00%,
01/01/2049
4,485
4,881
4.00%,
01/01/2049
2,966
3,195
4.00%,
03/01/2049
396
423
4.00%,
04/01/2049
688
735
4.00%,
04/01/2049
589
629
4.00%,
07/01/2049
2,075
2,217
4.00%,
08/01/2049
1,860
1,985
4.00%,
10/01/2049
758
826
4.00%,
10/01/2049
1,767
1,894
4.00%,
11/01/2049
1,323
1,417
4.00%,
04/01/2050
4,119
4,478
4.50%,
07/01/2029
1
1
4.50%,
02/01/2030
8
8
4.50%,
04/01/2030
3
3
4.50%,
08/01/2030
53
59
4.50%,
09/01/2030
44
48
4.50%,
01/01/2031
9
10
4.50%,
04/01/2031
5
6
4.50%,
05/01/2031
8
9
4.50%,
07/01/2031
36
40
4.50%,
08/01/2031
19
21
4.50%,
02/01/2035
79
87
4.50%,
08/01/2040
134
149
4.50%,
08/01/2040
65
73
4.50%,
06/01/2041
90
100
4.50%,
09/01/2041
146
163
4.50%,
09/01/2043
86
96
4.50%,
10/01/2043
151
167
4.50%,
01/01/2044
329
368
4.50%,
01/01/2044
432
484
4.50%,
02/01/2044
198
221
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
4.50%,
03/01/2044
$
114
$
128
4.50%,
03/01/2044
137
149
4.50%,
05/01/2044
82
92
4.50%,
05/01/2044
107
119
4.50%,
05/01/2044
400
443
4.50%,
06/01/2044
213
238
4.50%,
08/01/2044
148
165
4.50%,
08/01/2044
167
186
4.50%,
12/01/2044
278
311
4.50%,
04/01/2046
166
183
4.50%,
08/01/2046
148
162
4.50%,
01/01/2047
113
125
4.50%,
02/01/2047
91
100
4.50%,
02/01/2047
204
223
4.50%,
03/01/2047
178
197
4.50%,
10/01/2047
165
180
4.50%,
11/01/2047
316
345
4.50%,
02/01/2048
242
263
4.50%,
04/01/2048
719
785
4.50%,
05/01/2048
432
469
4.50%,
07/01/2048
5,898
6,434
4.50%,
08/01/2048
75
81
4.50%,
08/01/2048
127
138
4.50%,
10/01/2048
678
735
4.50%,
10/01/2048
1,447
1,568
4.50%,
12/01/2048
3,135
3,425
4.50%,
03/01/2049
5,127
5,563
4.50%,
04/01/2049
585
635
4.50%,
05/01/2049
3,895
4,258
4.50%,
07/01/2049
799
867
4.50%,
07/01/2049
1,506
1,635
4.50%,
09/01/2049
5,908
6,411
4.50%,
09/01/2049
1,023
1,110
5.00%,
07/01/2024
2
3
5.00%,
04/01/2029
6
7
5.00%,
09/01/2029
79
88
5.00%,
03/01/2030
10
11
5.00%,
08/01/2030
13
15
5.00%,
07/01/2035
104
121
5.00%,
04/01/2037
175
202
5.00%,
01/01/2039
222
258
5.00%,
07/01/2039
94
109
5.00%,
07/01/2039
98
114
5.00%,
02/01/2041
113
130
5.00%,
02/01/2041
197
229
5.00%,
05/01/2042
261
303
5.00%,
03/01/2044
192
216
5.00%,
03/01/2044
119
133
5.00%,
05/01/2044
97
109
5.00%,
11/01/2044
156
175
5.00%,
04/01/2048
195
215
5.00%,
09/01/2048
1,585
1,755
5.00%,
05/01/2049
140
155
5.00%,
06/01/2049
999
1,104
5.00%,
07/01/2049
516
577
5.00%,
08/01/2049
626
697
5.50%,
01/01/2023
1
2
5.50%,
07/01/2023
2
2
5.50%,
08/01/2023
19
21
5.50%,
10/01/2023
24
27
5.50%,
11/01/2023
31
35
5.50%,
02/01/2026
34
38
5.50%,
03/01/2027
33
37
5.50%,
06/01/2028
3
4
5.50%,
09/01/2028
1
1
5.50%,
01/01/2029
16
18
5.50%,
01/01/2029
2
3
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
137
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
5.50%,
12/01/2029
$
8
$
9
5.50%,
11/01/2035
155
183
5.50%,
12/01/2036
78
92
5.50%,
03/01/2037
114
133
5.50%,
08/01/2037
82
96
5.50%,
08/01/2037
105
123
5.50%,
08/01/2037
87
102
5.50%,
05/01/2038
149
175
5.50%,
06/01/2038
74
88
6.00%,
05/01/2041
144
171
6.50%,
01/01/2038
79
90
$
470,938
Government
National
Mortgage
Association
(GNMA)
-
6.65%
2.00%,
01/01/2051
11,000
11,503
2.50%,
03/20/2028
71
74
2.50%,
07/20/2028
71
74
2.50%,
03/20/2031
87
91
2.50%,
05/20/2032
117
123
2.50%,
07/20/2043
145
156
2.50%,
06/20/2045
88
94
2.50%,
12/20/2046
209
222
2.50%,
01/20/2047
319
339
2.50%,
01/01/2051
35,000
37,051
3.00%,
07/20/2030
149
157
3.00%,
01/20/2031
91
96
3.00%,
07/20/2032
120
127
3.00%,
01/20/2033
57
60
3.00%,
09/20/2042
942
1,007
3.00%,
10/15/2042
199
209
3.00%,
12/20/2042
267
287
3.00%,
01/20/2043
376
403
3.00%,
03/20/2043
504
538
3.00%,
03/20/2043
176
190
3.00%,
04/20/2043
655
699
3.00%,
06/15/2043
207
218
3.00%,
06/20/2043
143
153
3.00%,
07/15/2043
73
77
3.00%,
08/15/2043
132
139
3.00%,
08/15/2043
171
180
3.00%,
08/20/2043
68
72
3.00%,
09/20/2043
258
275
3.00%,
10/20/2043
133
142
3.00%,
11/20/2043
99
106
3.00%,
03/20/2044
193
206
3.00%,
08/20/2044
742
791
3.00%,
11/15/2044
247
277
3.00%,
11/20/2044
274
291
3.00%,
12/20/2044
295
315
3.00%,
02/15/2045
227
249
3.00%,
05/20/2045
269
288
3.00%,
07/15/2045
109
114
3.00%,
07/20/2045
2,081
2,218
3.00%,
08/15/2045
182
202
3.00%,
08/20/2045
614
654
3.00%,
10/20/2045
571
608
3.00%,
11/20/2045
330
352
3.00%,
12/20/2045
469
499
3.00%,
01/20/2046
120
127
3.00%,
02/20/2046
158
168
3.00%,
03/20/2046
782
833
3.00%,
04/20/2046
525
559
3.00%,
05/20/2046
472
502
3.00%,
06/20/2046
713
760
3.00%,
07/20/2046
2,142
2,282
3.00%,
08/20/2046
1,465
1,561
3.00%,
09/20/2046
858
915
3.00%,
10/20/2046
560
596
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
3.00%,
11/20/2046
$
283
$
306
3.00%,
11/20/2046
850
905
3.00%,
12/20/2046
1,023
1,090
3.00%,
01/20/2047
678
723
3.00%,
07/20/2047
33
35
3.00%,
10/20/2047
762
808
3.00%,
11/20/2047
363
385
3.00%,
12/20/2047
1,170
1,236
3.00%,
01/20/2048
508
538
3.00%,
02/20/2048
547
572
3.00%,
03/20/2048
511
535
3.00%,
11/20/2049
21,657
22,719
3.50%,
09/20/2028
95
101
3.50%,
04/20/2042
642
699
3.50%,
05/20/2042
674
734
3.50%,
06/20/2042
188
204
3.50%,
07/20/2042
750
817
3.50%,
10/20/2042
456
496
3.50%,
01/15/2043
239
255
3.50%,
01/20/2043
236
257
3.50%,
02/20/2043
724
795
3.50%,
03/20/2043
682
743
3.50%,
03/20/2043
308
342
3.50%,
04/15/2043
88
96
3.50%,
04/20/2043
671
731
3.50%,
04/20/2043
472
515
3.50%,
07/20/2043
802
874
3.50%,
08/15/2043
68
72
3.50%,
08/20/2043
630
687
3.50%,
09/20/2043
414
452
3.50%,
07/20/2044
505
547
3.50%,
08/20/2044
529
573
3.50%,
09/20/2044
197
213
3.50%,
10/20/2044
212
230
3.50%,
11/20/2044
231
250
3.50%,
12/20/2044
256
276
3.50%,
02/20/2045
253
275
3.50%,
05/20/2045
350
378
3.50%,
06/20/2045
71
77
3.50%,
07/20/2045
523
563
3.50%,
08/20/2045
239
257
3.50%,
09/20/2045
129
139
3.50%,
10/20/2045
963
1,048
3.50%,
11/20/2045
778
838
3.50%,
12/20/2045
495
533
3.50%,
01/20/2046
1,251
1,347
3.50%,
02/20/2046
69
74
3.50%,
03/20/2046
6,492
7,009
3.50%,
04/20/2046
508
548
3.50%,
05/20/2046
696
754
3.50%,
06/20/2046
3,075
3,346
3.50%,
07/15/2046
63
67
3.50%,
07/20/2046
370
400
3.50%,
08/20/2046
1,633
1,762
3.50%,
09/20/2046
665
717
3.50%,
10/20/2046
793
855
3.50%,
11/20/2046
609
656
3.50%,
12/20/2046
640
686
3.50%,
01/20/2047
680
730
3.50%,
02/20/2047
405
435
3.50%,
03/20/2047
561
602
3.50%,
04/20/2047
1,363
1,463
3.50%,
05/20/2047
409
438
3.50%,
06/20/2047
637
682
3.50%,
07/20/2047
1,168
1,254
3.50%,
08/20/2047
1,855
1,988
3.50%,
09/20/2047
139
150
3.50%,
10/20/2047
468
503
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
138
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
3.50%,
11/20/2047
$
608
$
651
3.50%,
12/20/2047
696
744
3.50%,
01/20/2048
1,012
1,088
3.50%,
02/20/2048
154
166
3.50%,
07/20/2048
299
320
4.00%,
08/15/2040
56
61
4.00%,
12/20/2040
29
32
4.00%,
08/15/2041
41
44
4.00%,
11/15/2041
79
85
4.00%,
03/15/2042
126
134
4.00%,
03/20/2042
131
145
4.00%,
04/20/2042
114
126
4.00%,
05/15/2042
96
102
4.00%,
10/20/2043
67
75
4.00%,
11/20/2043
156
172
4.00%,
02/20/2044
373
412
4.00%,
03/15/2044
129
140
4.00%,
05/20/2044
244
269
4.00%,
06/20/2044
180
198
4.00%,
07/20/2044
728
804
4.00%,
08/20/2044
513
566
4.00%,
09/20/2044
468
516
4.00%,
10/20/2044
621
686
4.00%,
11/20/2044
279
308
4.00%,
12/20/2044
497
549
4.00%,
01/20/2045
413
455
4.00%,
04/20/2045
263
291
4.00%,
05/15/2045
93
101
4.00%,
07/20/2045
107
118
4.00%,
08/20/2045
288
315
4.00%,
09/20/2045
414
454
4.00%,
10/20/2045
218
239
4.00%,
11/20/2045
79
86
4.00%,
12/15/2045
91
99
4.00%,
12/20/2045
197
216
4.00%,
01/20/2046
125
137
4.00%,
02/20/2046
181
198
4.00%,
04/20/2046
300
329
4.00%,
05/20/2046
148
162
4.00%,
07/20/2046
319
348
4.00%,
01/20/2047
663
719
4.00%,
02/20/2047
539
584
4.00%,
03/20/2047
511
551
4.00%,
05/20/2047
687
740
4.00%,
06/20/2047
683
737
4.00%,
07/20/2047
1,727
1,860
4.00%,
08/20/2047
80
86
4.00%,
09/20/2047
5,314
5,728
4.00%,
10/20/2047
392
425
4.50%,
02/15/2039
109
122
4.50%,
05/15/2039
80
89
4.50%,
11/15/2039
227
272
4.50%,
04/15/2040
246
275
4.50%,
01/20/2041
33
36
4.50%,
02/20/2041
32
36
4.50%,
03/20/2041
25
28
4.50%,
07/15/2041
110
121
4.50%,
05/20/2043
119
132
4.50%,
06/20/2043
118
132
4.50%,
10/20/2043
105
117
4.50%,
11/20/2043
336
374
4.50%,
03/20/2044
470
525
4.50%,
04/20/2044
21
23
4.50%,
05/20/2044
341
380
4.50%,
07/20/2044
177
198
4.50%,
12/20/2044
73
82
4.50%,
02/20/2045
193
215
4.50%,
03/20/2045
83
93
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
4.50%,
04/20/2045
$
105
$
117
4.50%,
06/20/2046
107
120
4.50%,
12/20/2046
326
364
4.50%,
02/20/2047
209
229
4.50%,
04/20/2047
157
172
4.50%,
06/15/2047
172
191
4.50%,
08/20/2047
333
362
4.50%,
10/20/2047
162
176
4.50%,
02/20/2048
2,933
3,192
4.50%,
05/20/2048
2,230
2,414
4.50%,
08/20/2048
550
596
4.50%,
10/20/2048
349
378
4.50%,
11/20/2048
534
578
4.50%,
12/20/2048
155
167
5.00%,
07/15/2035
75
84
5.00%,
04/15/2041
228
260
5.00%,
08/20/2041
68
78
5.00%,
04/20/2042
57
65
5.00%,
12/20/2042
168
192
5.00%,
07/20/2043
100
115
5.00%,
02/20/2044
106
121
5.00%,
03/20/2044
68
77
5.00%,
12/20/2045
90
103
5.00%,
03/20/2048
116
128
5.00%,
06/20/2048
2,420
2,647
5.00%,
10/20/2048
187
204
5.50%,
01/15/2040
79
92
5.50%,
06/20/2040
45
52
5.50%,
01/20/2041
157
184
5.50%,
10/20/2042
67
78
5.50%,
09/20/2043
74
86
6.00%,
04/15/2035
8
9
$
181,866
U.S.
Treasury
-
36.70%
0.13%,
04/30/2022
4,000
4,001
0.13%,
05/31/2022
11,410
11,412
0.13%,
06/30/2022
165
165
0.13%,
07/31/2022
780
780
0.13%,
08/31/2022
3,650
3,650
0.13%,
09/30/2022
2,320
2,320
0.13%,
10/31/2022
3,100
3,101
0.13%,
11/30/2022
7,125
7,126
0.13%,
05/15/2023
11,175
11,172
0.13%,
09/15/2023
4,650
4,646
0.25%,
04/15/2023
8,470
8,491
0.25%,
06/15/2023
4,000
4,010
0.25%,
05/31/2025
2,360
2,355
0.25%,
06/30/2025
2,210
2,204
0.25%,
07/31/2025
6,455
6,436
0.25%,
08/31/2025
470
468
0.25%,
09/30/2025
12,000
11,955
0.38%,
04/30/2025
8,100
8,129
0.38%,
11/30/2025
4,675
4,680
0.38%,
07/31/2027
1,435
1,416
0.38%,
09/30/2027
3,705
3,648
0.50%,
03/15/2023
1,725
1,739
0.50%,
03/31/2025
4,250
4,289
0.50%,
04/30/2027
4,440
4,429
0.50%,
05/31/2027
3,290
3,278
0.50%,
06/30/2027
2,265
2,256
0.50%,
10/31/2027
3,810
3,780
0.63%,
03/31/2027
5,975
6,011
0.63%,
11/30/2027
2,250
2,250
0.63%,
12/31/2027
2,500
2,496
0.63%,
05/15/2030
6,630
6,482
0.63%,
08/15/2030
7,385
7,200
0.88%,
11/15/2030
3,665
3,653
1.13%,
02/28/2025
8,950
9,266
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
139
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
1.13%,
02/28/2027
$
5,720
$
5,932
1.13%,
05/15/2040
3,760
3,570
1.13%,
08/15/2040
2,500
2,367
1.25%,
07/31/2023
5,000
5,142
1.25%,
08/31/2024
7,600
7,884
1.25%,
05/15/2050
4,505
4,087
1.38%,
10/15/2022
7,645
7,815
1.38%,
06/30/2023
4,050
4,174
1.38%,
08/31/2023
13,785
14,235
1.38%,
09/30/2023
2,220
2,295
1.38%,
08/31/2026
3,400
3,576
1.38%,
08/15/2050
5,330
4,992
1.50%,
01/31/2022
3,104
3,150
1.50%,
08/15/2022
850
869
1.50%,
02/28/2023
2,995
3,083
1.50%,
03/31/2023
3,340
3,442
1.50%,
09/30/2024
5,950
6,231
1.50%,
10/31/2024
1,000
1,048
1.50%,
11/30/2024
7,880
8,263
1.50%,
08/15/2026
15,150
16,042
1.50%,
02/15/2030
5,660
5,988
1.63%,
08/15/2022
1,990
2,038
1.63%,
08/31/2022
10,885
11,155
1.63%,
11/15/2022
2,790
2,868
1.63%,
12/15/2022
4,385
4,513
1.63%,
04/30/2023
3,000
3,103
1.63%,
10/31/2023
3,160
3,292
1.63%,
02/15/2026
3,315
3,526
1.63%,
05/15/2026
3,345
3,562
1.63%,
09/30/2026
1,265
1,349
1.63%,
11/30/2026
1,500
1,600
1.63%,
08/15/2029
3,750
4,012
1.63%,
11/15/2050
3,340
3,327
1.75%,
02/28/2022
920
937
1.75%,
03/31/2022
4,435
4,525
1.75%,
04/30/2022
3,335
3,407
1.75%,
05/15/2022
3,430
3,506
1.75%,
05/31/2022
5,280
5,401
1.75%,
06/15/2022
2,000
2,047
1.75%,
06/30/2022
3,860
3,954
1.75%,
07/15/2022
10,800
11,070
1.75%,
09/30/2022
1,640
1,686
1.75%,
01/31/2023
2,560
2,646
1.75%,
05/15/2023
2,517
2,613
1.75%,
06/30/2024
3,970
4,184
1.75%,
12/31/2024
5,620
5,953
1.75%,
11/15/2029
9,045
9,775
1.88%,
01/31/2022
3,580
3,648
1.88%,
02/28/2022
3,000
3,061
1.88%,
03/31/2022
6,700
6,847
1.88%,
04/30/2022
3,640
3,725
1.88%,
05/31/2022
1,200
1,230
1.88%,
07/31/2022
3,640
3,741
1.88%,
08/31/2022
3,810
3,920
1.88%,
10/31/2022
4,000
4,128
1.88%,
08/31/2024
4,000
4,241
1.88%,
07/31/2026
7,400
7,989
2.00%,
02/15/2022
1,545
1,577
2.00%,
07/31/2022
3,331
3,429
2.00%,
10/31/2022
4,050
4,188
2.00%,
11/30/2022
3,615
3,745
2.00%,
02/15/2023
4,597
4,778
2.00%,
04/30/2024
4,035
4,277
2.00%,
05/31/2024
6,765
7,179
2.00%,
06/30/2024
5,195
5,520
2.00%,
02/15/2025
8,570
9,176
2.00%,
08/15/2025
4,850
5,224
2.00%,
11/15/2026
1,690
1,839
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
2.00%,
02/15/2050
$
4,900
$
5,322
2.13%,
05/15/2022
4,160
4,274
2.13%,
06/30/2022
4,365
4,496
2.13%,
12/31/2022
6,600
6,863
2.13%,
03/31/2024
3,525
3,745
2.13%,
07/31/2024
5,810
6,207
2.13%,
09/30/2024
4,770
5,106
2.13%,
11/30/2024
4,460
4,785
2.13%,
05/15/2025
8,950
9,660
2.13%,
05/31/2026
2,000
2,183
2.25%,
04/15/2022
4,315
4,433
2.25%,
12/31/2023
3,655
3,883
2.25%,
01/31/2024
1,475
1,569
2.25%,
04/30/2024
4,850
5,180
2.25%,
10/31/2024
3,336
3,592
2.25%,
11/15/2024
8,963
9,656
2.25%,
12/31/2024
3,000
3,238
2.25%,
11/15/2025
2,500
2,730
2.25%,
03/31/2026
5,000
5,484
2.25%,
02/15/2027
8,160
9,020
2.25%,
08/15/2027
5,535
6,137
2.25%,
11/15/2027
9,840
10,926
2.25%,
08/15/2046
4,700
5,365
2.25%,
08/15/2049
6,380
7,301
2.38%,
03/15/2022
4,230
4,344
2.38%,
01/31/2023
4,235
4,432
2.38%,
02/29/2024
4,635
4,955
2.38%,
08/15/2024
4,595
4,952
2.38%,
04/30/2026
5,000
5,521
2.38%,
05/15/2027
15,430
17,211
2.38%,
05/15/2029
8,350
9,437
2.38%,
11/15/2049
5,505
6,467
2.50%,
01/15/2022
4,200
4,303
2.50%,
02/15/2022
4,295
4,409
2.50%,
03/31/2023
4,560
4,802
2.50%,
08/15/2023
13,632
14,470
2.50%,
01/31/2024
4,530
4,853
2.50%,
05/15/2024
3,066
3,304
2.50%,
01/31/2025
3,300
3,599
2.50%,
02/15/2045
5,035
6,004
2.50%,
02/15/2046
2,925
3,494
2.50%,
05/15/2046
4,425
5,286
2.63%,
06/30/2023
4,360
4,628
2.63%,
03/31/2025
1,805
1,983
2.63%,
12/31/2025
5,000
5,560
2.63%,
02/15/2029
6,785
7,789
2.75%,
04/30/2023
4,205
4,459
2.75%,
08/31/2023
3,000
3,207
2.75%,
11/15/2023
5,656
6,076
2.75%,
02/15/2024
5,336
5,764
2.75%,
02/28/2025
3,535
3,896
2.75%,
06/30/2025
1,280
1,419
2.75%,
08/31/2025
5,225
5,810
2.75%,
02/15/2028
9,145
10,487
2.75%,
08/15/2042
1,591
1,972
2.75%,
11/15/2042
2,610
3,234
2.75%,
08/15/2047
6,290
7,886
2.75%,
11/15/2047
1,375
1,726
2.88%,
10/31/2023
3,000
3,230
2.88%,
11/30/2023
2,935
3,166
2.88%,
04/30/2025
2,475
2,750
2.88%,
05/31/2025
4,120
4,584
2.88%,
07/31/2025
2,000
2,233
2.88%,
11/30/2025
3,435
3,857
2.88%,
05/15/2028
4,400
5,098
2.88%,
08/15/2028
5,140
5,971
2.88%,
05/15/2043
5,703
7,210
2.88%,
08/15/2045
4,255
5,414
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2020
See
accompanying
notes.
140
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
2.88%,
11/15/2046
$
850
$
1,086
2.88%,
05/15/2049
5,720
7,385
3.00%,
09/30/2025
820
923
3.00%,
10/31/2025
4,500
5,073
3.00%,
05/15/2042
1,200
1,543
3.00%,
11/15/2044
4,995
6,465
3.00%,
05/15/2045
4,260
5,527
3.00%,
11/15/2045
3,500
4,555
3.00%,
02/15/2047
4,540
5,936
3.00%,
05/15/2047
3,400
4,453
3.00%,
02/15/2048
4,050
5,317
3.00%,
08/15/2048
3,700
4,867
3.00%,
02/15/2049
4,115
5,428
3.13%,
11/15/2028
4,855
5,748
3.13%,
11/15/2041
1,700
2,223
3.13%,
02/15/2042
1,300
1,705
3.13%,
02/15/2043
4,020
5,273
3.13%,
08/15/2044
4,060
5,355
3.13%,
05/15/2048
4,020
5,396
3.38%,
05/15/2044
3,425
4,684
3.38%,
11/15/2048
6,575
9,235
3.50%,
02/15/2039
1,170
1,589
3.63%,
08/15/2043
3,570
5,042
3.63%,
02/15/2044
5,760
8,156
3.75%,
11/15/2043
1,165
1,677
3.88%,
08/15/2040
1,669
2,393
4.25%,
11/15/2040
1,135
1,705
4.38%,
11/15/2039
1,175
1,777
4.38%,
05/15/2040
1,489
2,259
4.38%,
05/15/2041
1,660
2,545
4.50%,
02/15/2036
4,490
6,590
4.50%,
05/15/2038
710
1,072
4.50%,
08/15/2039
1,235
1,890
4.63%,
02/15/2040
1,100
1,715
4.75%,
02/15/2037
2,290
3,491
4.75%,
02/15/2041
2,628
4,198
5.25%,
11/15/2028
2,415
3,256
5.25%,
02/15/2029
2,000
2,711
5.38%,
02/15/2031
3,616
5,198
6.00%,
02/15/2026
2,000
2,573
6.13%,
11/15/2027
2,225
3,056
6.13%,
08/15/2029
1,000
1,449
6.25%,
05/15/2030
1,500
2,236
6.38%,
08/15/2027
1,830
2,523
6.88%,
08/15/2025
1,000
1,301
$
1,003,976
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
1,735,384
Total
Investments
$
2,936,691
Other
Assets
and
Liabilities
- (7.36)%
(201,432)
TOTAL
NET
ASSETS
-
100.00%
$
2,735,259
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$4,906
or
0.18%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
Rate
shown
is
as
of
period
end.
The
rate
may
be
a
variable
or
floating
rate
or
a
fixed
rate
which
may
convert
to
a
variable
or
floating
rate
in
the
future.
(g)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$16,018
or
0.59%
of
net
assets.
(h)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions. These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(i)
Credit
support
indicates
investments
that
benefit
from
credit
enhancement
or
liquidity
support
provided
by
a
third
party
bank,
institution,
or
government
agency.
(j)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction.
See
accompanying
notes
for
additional
information.
Portfolio
Summary (unaudited)
Sector
Percent
Government
41.57%
Mortgage
Securities
28.33%
Money
Market
Funds
8.70%
Financial
8.43%
Consumer,
Non-cyclical
4.85%
Communications
2.72%
Energy
2.19%
Utilities
2.12%
Industrial
2.00%
Technology
1.87%
Investment
Companies
1.64%
Consumer,
Cyclical
1.38%
Basic
Materials
0.65%
Revenue
Bonds
0.39%
Asset
Backed
Securities
0.26%
General
Obligation
Unlimited
0.21%
Insured
0.05%
General
Obligation
Limited
0.00%
Other
Assets
and
Liabilities
(7.36)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
81,892
$
1,349,168
$
1,197,910
$
233,150
$
81,892
$
1,349,168
$
1,197,910
$
233,150
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
250
$
—
$
—
$
—
$
250
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
141
INVESTMENT
COMPANIES
-
6.14%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
2.00%
SPDR
Bloomberg
Barclays
High
Yield
Bond
ETF
47,000
$
5,121
Money
Market
Funds
-
4.14%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.01%
(a),(b)
412,118
412
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
10,172,371
10,172
$
10,584
TOTAL
INVESTMENT
COMPANIES
$
15,705
COMMON
STOCKS
-
0.07%
Shares
Held
Value
(000's)
Oil
&
Gas
-
0.07%
EP
Energy
Corp
(d)
2,695
$
94
Oasis
Petroleum
Inc
(d)
2,448
91
$
185
TOTAL
COMMON
STOCKS
$
185
BONDS
-
64.75%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
1.66%
Boeing
Co/The
1.95%,
02/01/2024
$
1,620
$
1,668
2.80%,
03/01/2024
300
315
3.10%,
05/01/2026
190
204
4.88%,
05/01/2025
380
433
Raytheon
Technologies
Corp
3.50%,
03/15/2027
215
245
4.45%,
11/16/2038
115
145
4.50%,
06/01/2042
205
267
5.40%,
05/01/2035
130
179
Signature
Aviation
US
Holdings
Inc
5.38%,
05/01/2026
(e)
60
62
SSL
Robotics
LLC
9.75%,
12/31/2023
(e)
145
164
TransDigm
Inc
6.25%,
03/15/2026
(e)
70
75
7.50%,
03/15/2027
131
140
8.00%,
12/15/2025
(e)
80
88
Triumph
Group
Inc
5.25%,
06/01/2022
55
52
8.88%,
06/01/2024
(e)
187
205
$
4,242
Agriculture
-
0.62%
Altria
Group
Inc
2.35%,
05/06/2025
155
165
5.95%,
02/14/2049
35
49
BAT
Capital
Corp
3.22%,
08/15/2024
170
184
3.56%,
08/15/2027
520
579
4.54%,
08/15/2047
120
133
JBS
Investments
II
GmbH
7.00%,
01/15/2026
(e)
200
216
Reynolds
American
Inc
5.70%,
08/15/2035
165
208
5.85%,
08/15/2045
45
58
$
1,592
Airlines
-
0.57%
Delta
Air
Lines
Inc
/
SkyMiles
IP
Ltd
4.50%,
10/20/2025
(e)
992
1,060
Southwest
Airlines
Co
4.75%,
05/04/2023
85
93
5.25%,
05/04/2025
255
295
$
1,448
Automobile
Asset
Backed
Securities
-
4.27%
AmeriCredit
Automobile
Receivables
Trust
2020-1
0.51%,
03/20/2023
1,651
1,652
1.00
x
1
Month
USD
LIBOR
+
0.35%
AmeriCredit
Automobile
Receivables
Trust
2020-3
0.42%,
03/18/2024
315
315
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Asset
Backed
Securities
(continued)
CarMax
Auto
Owner
Trust
2020-3
0.41%,
06/15/2023
$
480
$
480
1.00
x
1
Month
USD
LIBOR
+
0.25%
Drive
Auto
Receivables
Trust
2020-2
0.69%,
07/17/2023
294
295
1.00
x
1
Month
USD
LIBOR
+
0.53%
Ford
Credit
Auto
Lease
Trust
2019-B
2.28%,
02/15/2022
63
64
Ford
Credit
Auto
Lease
Trust
2020-B
0.42%,
12/15/2022
740
741
1.00
x
1
Month
USD
LIBOR
+
0.26%
0.50%,
12/15/2022
400
401
GM
Financial
Consumer
Automobile
Receivables
Trust
2020-3
0.35%,
07/17/2023
937
937
Hyundai
Auto
Receivables
Trust
2020-B
0.38%,
03/15/2023
900
901
Mercedes-Benz
Auto
Lease
Trust
2019-A
3.10%,
11/15/2021
140
140
Mercedes-Benz
Auto
Lease
Trust
2020-B
0.31%,
02/15/2023
850
851
Santander
Drive
Auto
Receivables
Trust
2020-2
0.51%,
05/15/2023
612
612
1.00
x
1
Month
USD
LIBOR
+
0.35%
Santander
Drive
Auto
Receivables
Trust
2020-3
0.46%,
09/15/2023
1,250
1,251
Santander
Drive
Auto
Receivables
Trust
2020-4
0.42%,
09/15/2023
315
315
Santander
Retail
Auto
Lease
Trust
2019-A
2.72%,
01/20/2022
(e)
357
357
Tesla
Auto
Lease
Trust
2019-A
2.13%,
04/20/2022
(e)
617
623
World
Omni
Auto
Receivables
Trust
2020-C
0.35%,
12/15/2023
1,000
1,001
$
10,936
Automobile
Manufacturers
-
1.87%
BMW
US
Capital
LLC
3.80%,
04/06/2023
(e)
305
328
3.90%,
04/09/2025
(e)
550
619
Ford
Motor
Co
8.50%,
04/21/2023
75
84
9.00%,
04/22/2025
75
92
9.63%,
04/22/2030
25
35
Ford
Motor
Credit
Co
LLC
3.35%,
11/01/2022
290
295
4.14%,
02/15/2023
520
536
4.25%,
09/20/2022
450
464
General
Motors
Co
4.88%,
10/02/2023
665
738
6.25%,
10/02/2043
120
162
6.60%,
04/01/2036
275
372
General
Motors
Financial
Co
Inc
1.70%,
08/18/2023
285
292
3.45%,
01/14/2022
365
375
3.95%,
04/13/2024
280
305
Navistar
International
Corp
6.63%,
11/01/2025
(e)
53
56
9.50%,
05/01/2025
(e)
25
28
$
4,781
Automobile
Parts
&
Equipment
-
0.04%
Tenneco
Inc
7.88%,
01/15/2029
(e)
100
112
Banks
-
10.99%
Banco
Internacional
del
Peru
SAA
Interbank
3.25%,
10/04/2026
(e)
150
159
Banco
Santander
SA
2.75%,
05/28/2025
1,000
1,068
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
142
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Bank
of
America
Corp
2.68%,
06/19/2041
(f)
$
680
$
708
United
States
Secured
Overnight
Financing
Rate
+
1.93%
2.88%,
10/22/2030
(f)
305
335
3
Month
USD
LIBOR
+
1.19%
3.19%,
07/23/2030
(f)
165
185
3
Month
USD
LIBOR
+
1.18%
3.46%,
03/15/2025
(f)
135
147
3
Month
USD
LIBOR
+
0.97%
4.20%,
08/26/2024
1,450
1,623
4.25%,
10/22/2026
150
176
4.30%,
01/28/2025
(f),(g)
175
180
3
Month
USD
LIBOR
+
2.66%
Barclays
PLC
1.01%,
12/10/2024
(f)
350
352
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.80%
2.85%,
05/07/2026
(f)
600
644
3
Month
USD
LIBOR
+
2.45%
7.75%,
09/15/2023
(f),(g),(h)
200
215
USD
Swap
Semi-Annual
5
Year
+
4.84%
BNP
Paribas
SA
2.22%,
06/09/2026
(e),(f)
900
942
United
States
Secured
Overnight
Financing
Rate
+
2.07%
4.50%,
02/25/2030
(e),(f),(g),(h)
310
313
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.94%
CIT
Group
Inc
5.00%,
08/15/2022
120
127
5.80%,
06/15/2022
(f),(g)
88
90
3
Month
USD
LIBOR
+
3.97%
Citigroup
Inc
3.11%,
04/08/2026
(f)
495
541
United
States
Secured
Overnight
Financing
Rate
+
2.75%
3.52%,
10/27/2028
(f)
60
68
3
Month
USD
LIBOR
+
1.15%
4.65%,
07/30/2045
750
1,004
4.65%,
07/23/2048
105
145
4.70%,
01/30/2025
(f),(g)
312
321
United
States
Secured
Overnight
Financing
Rate
+
3.23%
Credit
Suisse
AG/New
York
NY
2.95%,
04/09/2025
665
729
Credit
Suisse
Group
AG
2.19%,
06/05/2026
(e),(f)
500
523
United
States
Secured
Overnight
Financing
Rate
+
2.04%
5.25%,
02/11/2027
(e),(f),(g),(h)
1,040
1,100
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.89%
Danske
Bank
A/S
3.00%,
09/20/2022
(e),(f)
1,000
1,016
3
Month
USD
LIBOR
+
1.25%
DBS
Group
Holdings
Ltd
4.52%,
12/11/2028
(e),(f)
315
345
USD
Swap
Rate
NY
5
Year
+
1.59%
Deutsche
Bank
AG/New
York
NY
2.22%,
09/18/2024
(f)
725
746
United
States
Secured
Overnight
Financing
Rate
+
2.16%
Goldman
Sachs
Group
Inc
/The
3.63%,
02/20/2024
275
299
3.85%,
01/26/2027
160
183
6.75%,
10/01/2037
300
459
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
HSBC
Holdings
PLC
1.65%,
04/18/2026
(f)
$
475
$
486
United
States
Secured
Overnight
Financing
Rate
+
1.54%
2.63%,
11/07/2025
(f)
335
357
3
Month
USD
LIBOR
+
1.14%
4.25%,
03/14/2024
435
480
JPMorgan
Chase
&
Co
2.08%,
04/22/2026
(f)
335
354
United
States
Secured
Overnight
Financing
Rate
+
1.85%
3.96%,
11/15/2048
(f)
20
25
3
Month
USD
LIBOR
+
1.38%
4.95%,
06/01/2045
140
198
5.50%,
10/15/2040
260
382
Lloyds
Banking
Group
PLC
3.87%,
07/09/2025
(f)
850
937
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
3.50%
Morgan
Stanley
0.86%,
10/21/2025
(f)
600
605
United
States
Secured
Overnight
Financing
Rate
+
0.75%
0.99%,
12/10/2026
(f)
1,861
1,875
United
States
Secured
Overnight
Financing
Rate
+
0.72%
2.19%,
04/28/2026
(f)
150
158
United
States
Secured
Overnight
Financing
Rate
+
1.99%
3.62%,
04/01/2031
(f)
170
198
United
States
Secured
Overnight
Financing
Rate
+
3.12%
4.05%,
04/15/2021
(g)
165
163
3
Month
USD
LIBOR
+
3.81%
4.35%,
09/08/2026
800
943
5.00%,
11/24/2025
330
394
6.38%,
07/24/2042
120
196
Natwest
Group
PLC
4.27%,
03/22/2025
(f)
200
221
3
Month
USD
LIBOR
+
1.76%
5.13%,
05/28/2024
1,240
1,401
6.00%,
12/29/2025
(f),(g),(h)
425
466
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.63%
NatWest
Markets
PLC
2.38%,
05/21/2023
(e)
200
208
Popular
Inc
6.13%,
09/14/2023
65
70
Santander
UK
Group
Holdings
PLC
1.53%,
08/21/2026
(f)
635
645
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.25%
Standard
Chartered
PLC
2.82%,
01/30/2026
(e),(f)
535
567
3
Month
USD
LIBOR
+
1.21%
6.00%,
07/26/2025
(e),(f),(g),(h)
215
230
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.66%
Synchrony
Bank
3.00%,
06/15/2022
650
671
UBS
Group
AG
6.88%,
03/22/2021
(f),(g),(h)
440
444
USD
Swap
Semi-Annual
(VS
6
Month)
5
Year
+
5.50%
Wells
Fargo
&
Co
4.40%,
06/14/2046
170
213
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
143
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Westpac
Banking
Corp
4.11%,
07/24/2034
(f)
$
85
$
97
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.00%
4.42%,
07/24/2039
315
402
$
28,129
Beverages
-
0.89%
Anheuser-Busch
Cos
LLC
/
Anheuser-Busch
InBev
Worldwide
Inc
3.65%,
02/01/2026
115
130
4.90%,
02/01/2046
665
865
Anheuser-Busch
InBev
Worldwide
Inc
4.38%,
04/15/2038
190
235
5.45%,
01/23/2039
225
306
Central
American
Bottling
Corp
5.75%,
01/31/2027
(e)
95
101
Constellation
Brands
Inc
2.88%,
05/01/2030
90
99
3.15%,
08/01/2029
410
456
4.40%,
11/15/2025
70
81
$
2,273
Building
Materials
-
0.27%
Builders
FirstSource
Inc
5.00%,
03/01/2030
(e)
60
65
6.75%,
06/01/2027
(e)
79
86
Carrier
Global
Corp
2.24%,
02/15/2025
155
164
Cemex
SAB
de
CV
5.20%,
09/17/2030
(e)
200
219
Summit
Materials
LLC
/
Summit
Materials
Finance
Corp
5.25%,
01/15/2029
(e)
140
147
$
681
Chemicals
-
0.68%
Blue
Cube
Spinco
LLC
9.75%,
10/15/2023
12
12
Braskem
Netherlands
Finance
BV
4.50%,
01/31/2030
(e)
200
205
CF
Industries
Inc
4.95%,
06/01/2043
126
155
5.15%,
03/15/2034
43
53
DuPont
de
Nemours
Inc
5.32%,
11/15/2038
165
223
5.42%,
11/15/2048
105
153
EI
du
Pont
de
Nemours
and
Co
1.70%,
07/15/2025
120
125
Element
Solutions
Inc
3.88%,
09/01/2028
(e)
256
263
LYB
International
Finance
III
LLC
2.88%,
05/01/2025
250
271
NOVA
Chemicals
Corp
5.25%,
08/01/2023
(e)
55
55
SABIC
Capital
II
BV
4.00%,
10/10/2023
(e)
200
216
$
1,731
Commercial
Mortgage
Backed
Securities
-
1.90%
Benchmark
2019-B15
Mortgage
Trust
3.56%,
12/15/2072
250
278
Citigroup
Commercial
Mortgage
Trust
2015-GC27
3.57%,
02/10/2048
900
977
Citigroup
Commercial
Mortgage
Trust
2016-GC37
3.58%,
04/10/2049
350
385
Credit
Suisse
Commercial
Mortgage
Trust
Series
2006-C5
0.90%,
12/15/2039
(
i
),(j)
125
2
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
GS
Mortgage
Securities
Trust
2011-GC5
1.32%,
08/10/2044
(e),(
i
),(j)
$
8,603
$
20
GS
Mortgage
Securities
Trust
2013-GC16
1.02%,
11/10/2046
(
i
),(j)
1,857
46
GS
Mortgage
Securities
Trust
2014-GC26
0.96%,
11/10/2047
(
i
),(j)
4,138
126
GS
Mortgage
Securities
Trust
2015-GC34
3.51%,
10/10/2048
375
418
GS
Mortgage
Securities
Trust
2020-GSA2
2.01%,
12/12/2053
350
360
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2011-C5
5.42%,
08/15/2046
(e),(j)
350
336
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2012-LC9
1.49%,
12/15/2047
(
i
),(j)
1,765
40
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2016-JP3
3.14%,
08/15/2049
500
541
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C24
4.41%,
11/15/2047
(j)
500
473
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2012-C5
1.41%,
08/15/2045
(e),(
i
),(j)
3,074
48
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C14
1.00%,
02/15/2047
(
i
),(j)
4,198
103
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C16
1.00%,
06/15/2047
(
i
),(j)
3,449
85
MSBAM
Commercial
Mortgage
Securities
Trust
2012-CKSV
1.04%,
10/15/2030
(e),(
i
),(j)
3,472
47
UBS-Barclays
Commercial
Mortgage
Trust
2012-C4
1.60%,
12/10/2045
(e),(
i
),(j)
1,157
25
3.32%,
12/10/2045
(e)
500
519
WFRBS
Commercial
Mortgage
Trust
2013-C12
1.19%,
03/15/2048
(e),(
i
),(j)
2,288
45
$
4,874
Commercial
Services
-
0.29%
DP
World
PLC
6.85%,
07/02/2037
100
137
Prime
Security
Services
Borrower
LLC
/
Prime
Finance
Inc
3.38%,
08/31/2027
(e)
104
103
6.25%,
01/15/2028
(e)
102
110
Refinitiv
US
Holdings
Inc
6.25%,
05/15/2026
(e)
89
95
8.25%,
11/15/2026
(e)
56
61
Tms
International
Holding
Corp
7.25%,
08/15/2025
(e)
96
97
United
Rentals
North
America
Inc
3.88%,
02/15/2031
15
16
4.88%,
01/15/2028
109
116
$
735
Computers
-
0.35%
Apple
Inc
2.75%,
01/13/2025
220
239
4.65%,
02/23/2046
110
156
Dell
International
LLC
/
EMC
Corp
5.45%,
06/15/2023
(e)
250
277
7.13%,
06/15/2024
(e)
219
227
$
899
Consumer
Products
-
0.48%
Kimberly-Clark
Corp
1.05%,
09/15/2027
1,200
1,216
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
144
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Consumer
Products
(continued)
Kronos
Acquisition
Holdings
Inc
/
KIK
Custom
Products
Inc
5.00%,
12/31/2026
(e)
$
20
$
21
$
1,237
Credit
Card
Asset
Backed
Securities
-
1.38%
Barclays
Dryrock
Issuance
Trust
0.49%,
07/15/2024
1,300
1,302
1.00
x
1
Month
USD
LIBOR
+
0.33%
Chase
Issuance
Trust
0.36%,
04/17/2023
1,238
1,239
1.00
x
1
Month
USD
LIBOR
+
0.20%
0.71%,
06/15/2023
1,000
1,002
1.00
x
1
Month
USD
LIBOR
+
0.55%
$
3,543
Distribution
&
Wholesale
-
0.07%
American
Builders
&
Contractors
Supply
Co
Inc
4.00%,
01/15/2028
(e)
84
87
5.88%,
05/15/2026
(e)
98
102
$
189
Diversified
Financial
Services
-
2.22%
AerCap
Holdings
NV
5.88%,
10/10/2079
(f)
150
154
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.54%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
3.15%,
02/15/2024
1,000
1,048
4.50%,
09/15/2023
705
764
Air
Lease
Corp
2.88%,
01/15/2026
625
661
3.38%,
07/01/2025
370
398
Ally
Financial
Inc
4.25%,
04/15/2021
30
30
4.63%,
03/30/2025
270
308
5.80%,
05/01/2025
445
528
Brookfield
Finance
Inc
4.00%,
04/01/2024
650
714
Credit
Acceptance
Corp
5.13%,
12/31/2024
(e)
30
31
6.63%,
03/15/2026
191
203
Global
Aircraft
Leasing
Co
Ltd
6.50%,
PIK
7.25%,
09/15/2024
(e),(j),(k)
94
84
ILFC
E-Capital
Trust
II
3.48%,
12/21/2065
(e),(j)
100
69
Navient
Corp
6.63%,
07/26/2021
125
128
6.75%,
06/15/2026
103
112
OneMain
Finance
Corp
5.63%,
03/15/2023
75
81
6.63%,
01/15/2028
122
145
6.88%,
03/15/2025
199
231
8.88%,
06/01/2025
5
6
$
5,695
Electric
-
2.57%
Avangrid
Inc
3.20%,
04/15/2025
490
536
Centrais
Eletricas
Brasileiras
SA
3.63%,
02/04/2025
(e)
200
207
CMS
Energy
Corp
3.00%,
05/15/2026
75
83
4.70%,
03/31/2043
120
154
Colbun
SA
3.15%,
03/06/2030
(e)
200
216
Commonwealth
Edison
Co
4.00%,
03/01/2049
225
288
Dominion
Energy
Inc
3.90%,
10/01/2025
100
113
4.25%,
06/01/2028
85
102
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
DTE
Electric
Co
3.95%,
03/01/2049
$
60
$
78
DTE
Energy
Co
1.05%,
06/01/2025
65
66
3.40%,
06/15/2029
280
317
Enel
Chile
SA
4.88%,
06/12/2028
280
330
Exelon
Corp
3.50%,
06/01/2022
215
224
MidAmerican
Energy
Co
3.15%,
04/15/2050
120
138
National
Rural
Utilities
Cooperative
Finance
Corp
2.40%,
04/25/2022
180
185
NextEra
Energy
Capital
Holdings
Inc
2.75%,
11/01/2029
145
158
3.50%,
04/01/2029
300
343
NextEra
Energy
Operating
Partners
LP
4.25%,
07/15/2024
(e)
137
146
4.50%,
09/15/2027
(e)
25
28
NRG
Energy
Inc
3.38%,
02/15/2029
(e)
30
31
5.25%,
06/15/2029
(e)
37
41
6.63%,
01/15/2027
103
109
7.25%,
05/15/2026
85
90
Pacific
Gas
and
Electric
Co
1.75%,
06/16/2022
735
737
Perusahaan
Perseroan
Persero
PT
Perusahaan
Listrik
Negara
3.88%,
07/17/2029
(e)
200
219
PPL
Electric
Utilities
Corp
3.95%,
06/01/2047
85
106
4.75%,
07/15/2043
90
121
PPL
WEM
Ltd
/
Western
Power
Distribution
PLC
5.38%,
05/01/2021
(e)
735
738
Southern
California
Edison
Co
4.20%,
03/01/2029
125
148
4.88%,
03/01/2049
150
198
Tucson
Electric
Power
Co
4.85%,
12/01/2048
25
34
Virginia
Electric
and
Power
Co
3.80%,
04/01/2028
180
211
4.60%,
12/01/2048
60
84
$
6,579
Electrical
Components
&
Equipment
-
0.19%
Energizer
Holdings
Inc
4.38%,
03/31/2029
(e)
102
106
4.75%,
06/15/2028
(e)
79
83
WESCO
Distribution
Inc
7.13%,
06/15/2025
(e)
90
99
7.25%,
06/15/2028
(e)
173
197
$
485
Electronics
-
0.08%
Sensata
Technologies
BV
5.00%,
10/01/2025
(e)
145
161
Sensata
Technologies
Inc
4.38%,
02/15/2030
(e)
51
55
$
216
Engineering
&
Construction
-
0.04%
MasTec
Inc
4.50%,
08/15/2028
(e)
98
103
Entertainment
-
0.29%
Boyne
USA
Inc
7.25%,
05/01/2025
(e)
45
47
Caesars
Entertainment
Inc
6.25%,
07/01/2025
(e)
259
276
Lions
Gate
Capital
Holdings
LLC
5.88%,
11/01/2024
(e)
140
142
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
145
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Entertainment
(continued)
Scientific
Games
International
Inc
5.00%,
10/15/2025
(e)
$
205
$
212
8.63%,
07/01/2025
(e)
55
60
$
737
Food
-
1.43%
Albertsons
Cos
Inc
/
Safeway
Inc
/
New
Albertsons
LP
/
Albertsons
LLC
4.63%,
01/15/2027
(e)
157
167
5.75%,
03/15/2025
54
56
5.88%,
02/15/2028
(e)
178
194
Cencosud
SA
4.38%,
07/17/2027
(e)
200
224
Conagra
Brands
Inc
1.38%,
11/01/2027
1,150
1,161
Gruma
SAB
de
CV
4.88%,
12/01/2024
(e)
350
393
Ingles
Markets
Inc
5.75%,
06/15/2023
59
59
JBS
USA
LUX
SA
/
JBS
USA
Finance
Inc
5.75%,
06/15/2025
(e)
149
154
JBS
USA
LUX
SA
/
JBS
USA
Food
Co
/
JBS
USA
Finance
Inc
6.50%,
04/15/2029
(e)
39
45
Kraft
Heinz
Foods
Co
3.75%,
04/01/2030
(e)
32
34
4.25%,
03/01/2031
(e)
140
156
4.38%,
06/01/2046
146
158
Mars
Inc
2.38%,
07/16/2040
(e)
340
348
Post
Holdings
Inc
4.63%,
04/15/2030
(e)
32
34
5.00%,
08/15/2026
(e)
265
274
Want
Want
China
Finance
Ltd
2.88%,
04/27/2022
200
204
$
3,661
Forest
Products
&
Paper
-
0.07%
Suzano
Austria
GmbH
3.75%,
01/15/2031
160
170
Gas
-
0.15%
NiSource
Inc
0.95%,
08/15/2025
370
372
Healthcare
-
Products
-
0.48%
Abbott
Laboratories
4.90%,
11/30/2046
185
274
Boston
Scientific
Corp
3.45%,
03/01/2024
290
314
4.55%,
03/01/2039
260
332
4.70%,
03/01/2049
135
185
Hologic
Inc
3.25%,
02/15/2029
(e)
102
104
Medtronic
Inc
4.38%,
03/15/2035
16
22
$
1,231
Healthcare
-
Services
-
0.94%
Acadia
Healthcare
Co
Inc
5.00%,
04/15/2029
(e)
201
215
Centene
Corp
3.00%,
10/15/2030
196
208
3.38%,
02/15/2030
107
113
4.25%,
12/15/2027
259
274
5.38%,
06/01/2026
(e)
93
98
CHS/Community
Health
Systems
Inc
5.63%,
03/15/2027
(e)
20
21
8.00%,
03/15/2026
(e)
238
256
DaVita
Inc
4.63%,
06/01/2030
(e)
93
99
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Services
(continued)
HCA
Inc
3.50%,
09/01/2030
$
294
$
312
5.88%,
05/01/2023
150
165
Legacy
LifePoint
Health
LLC
6.75%,
04/15/2025
(e)
110
118
Tenet
Healthcare
Corp
4.63%,
09/01/2024
(e)
80
83
7.50%,
04/01/2025
(e)
25
27
UnitedHealth
Group
Inc
2.75%,
05/15/2040
235
255
3.50%,
08/15/2039
140
167
$
2,411
Home
Builders
-
0.37%
Empire
Communities
Corp
7.00%,
12/15/2025
(e)
80
84
Forestar
Group
Inc
5.00%,
03/01/2028
(e)
5
5
8.00%,
04/15/2024
(e)
247
260
KB
Home
7.63%,
05/15/2023
55
61
Lennar
Corp
4.88%,
12/15/2023
80
89
LGI
Homes
Inc
6.88%,
07/15/2026
(e)
187
196
Picasso
Finance
Sub
Inc
6.13%,
06/15/2025
(e)
91
97
Williams
Scotsman
International
Inc
4.63%,
08/15/2028
(e)
140
145
$
937
Home
Equity
Asset
Backed
Securities
-
0.08%
Saxon
Asset
Securities
Trust
2004-1
1.84%,
03/25/2035
118
82
1.00
x
1
Month
USD
LIBOR
+
1.70%
Specialty
Underwriting
&
Residential
Finance
Trust
Series
2004-BC1
0.91%,
02/25/2035
123
119
1.00
x
1
Month
USD
LIBOR
+
0.77%
$
201
Insurance
-
2.02%
Acrisure
LLC
/
Acrisure
Finance
Inc
8.13%,
02/15/2024
(e)
88
93
AIA
Group
Ltd
3.20%,
09/16/2040
(e)
1,400
1,468
American
International
Group
Inc
3.90%,
04/01/2026
70
80
4.50%,
07/16/2044
280
359
Arch
Capital
Finance
LLC
4.01%,
12/15/2026
125
145
Arch
Capital
Group
Ltd
3.64%,
06/30/2050
375
436
Berkshire
Hathaway
Finance
Corp
1.45%,
10/15/2030
1,580
1,601
Markel
Corp
3.35%,
09/17/2029
265
298
4.30%,
11/01/2047
95
120
XLIT
Ltd
4.45%,
03/31/2025
495
565
$
5,165
Internet
-
0.97%
Alphabet
Inc
1.90%,
08/15/2040
650
638
2.25%,
08/15/2060
155
150
Amazon.com
Inc
2.50%,
06/03/2050
125
130
2.70%,
06/03/2060
110
118
B2W
Digital
Lux
Sarl
4.38%,
12/20/2030
(e)
200
207
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
146
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Internet
(continued)
Baidu
Inc
4.38%,
05/14/2024
$
200
$
220
Expedia
Group
Inc
3.60%,
12/15/2023
(e)
210
224
Meituan
2.13%,
10/28/2025
(e)
200
203
Netflix
Inc
4.38%,
11/15/2026
187
207
NortonLifeLock
Inc
3.95%,
06/15/2022
65
66
Tencent
Holdings
Ltd
3.98%,
04/11/2029
(e)
275
313
$
2,476
Investment
Companies
-
0.04%
Icahn
Enterprises
LP
/
Icahn
Enterprises
Finance
Corp
4.75%,
09/15/2024
50
52
6.25%,
02/01/2022
60
60
$
112
Iron
&
Steel
-
0.65%
Cleveland-Cliffs
Inc
4.88%,
01/15/2024
(e)
55
56
6.38%,
10/15/2025
(e)
25
24
CSN
Inova
Ventures
6.75%,
01/28/2028
(e)
200
216
Nucor
Corp
2.00%,
06/01/2025
90
95
Steel
Dynamics
Inc
2.40%,
06/15/2025
145
154
2.80%,
12/15/2024
700
753
Vale
Overseas
Ltd
3.75%,
07/08/2030
320
356
$
1,654
Leisure
Products
&
Services
-
0.06%
Carnival
Corp
7.63%,
03/01/2026
(e)
45
49
NCL
Corp
Ltd
3.63%,
12/15/2024
(e)
40
38
5.88%,
03/15/2026
(e)
75
79
$
166
Lodging
-
0.23%
Hilton
Domestic
Operating
Co
Inc
5.38%,
05/01/2025
(e)
10
11
5.75%,
05/01/2028
(e)
177
192
Marriott
International
Inc
/MD
3.60%,
04/15/2024
300
320
MGM
Resorts
International
6.00%,
03/15/2023
60
64
$
587
Machinery
-
Diversified
-
0.12%
Maxim
Crane
Works
Holdings
Capital
LLC
10.13%,
08/01/2024
(e)
149
155
Westinghouse
Air
Brake
Technologies
Corp
3.20%,
06/15/2025
150
162
$
317
Media
-
3.12%
Altice
Financing
SA
7.50%,
05/15/2026
(e)
200
211
AMC
Networks
Inc
4.75%,
12/15/2022
37
37
4.75%,
08/01/2025
223
230
Cable
Onda
SA
4.50%,
01/30/2030
200
220
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp
4.50%,
08/15/2030
(e)
195
207
4.75%,
03/01/2030
(e)
234
253
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
(continued)
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
3.70%,
04/01/2051
$
185
$
192
4.46%,
07/23/2022
320
337
4.80%,
03/01/2050
135
161
4.91%,
07/23/2025
620
720
6.48%,
10/23/2045
120
170
Comcast
Corp
3.75%,
04/01/2040
165
199
4.60%,
10/15/2038
280
369
4.60%,
08/15/2045
160
216
6.45%,
03/15/2037
200
308
CSC
Holdings
LLC
6.50%,
02/01/2029
(e)
208
235
6.75%,
11/15/2021
40
42
Discovery
Communications
LLC
4.00%,
09/15/2055
(e)
672
752
DISH
DBS
Corp
5.88%,
11/15/2024
133
139
6.75%,
06/01/2021
40
41
7.38%,
07/01/2028
97
103
Fox
Corp
5.48%,
01/25/2039
95
130
5.58%,
01/25/2049
90
132
NBCUniversal
Media
LLC
4.45%,
01/15/2043
145
190
Time
Warner
Cable
LLC
4.00%,
09/01/2021
225
228
5.88%,
11/15/2040
135
180
6.55%,
05/01/2037
100
137
UPC
Holding
BV
5.50%,
01/15/2028
(e)
300
317
ViacomCBS
Inc
2.90%,
01/15/2027
350
384
4.38%,
03/15/2043
105
124
4.75%,
05/15/2025
215
250
4.95%,
05/19/2050
120
155
Walt
Disney
Co/The
2.65%,
01/13/2031
30
33
3.50%,
05/13/2040
260
306
5.40%,
10/01/2043
80
117
Ziggo
BV
5.50%,
01/15/2027
(e)
150
157
$
7,982
Metal
Fabrication
&
Hardware
-
0.02%
Advanced
Drainage
Systems
Inc
5.00%,
09/30/2027
(e)
60
63
Mining
-
0.65%
First
Quantum
Minerals
Ltd
7.25%,
04/01/2023
(e)
200
206
FMG
Resources
August
2006
Pty
Ltd
4.75%,
05/15/2022
(e)
125
129
Freeport-McMoRan
Inc
4.25%,
03/01/2030
70
75
4.63%,
08/01/2030
42
46
Glencore
Funding
LLC
3.00%,
10/27/2022
(e)
400
415
Hudbay
Minerals
Inc
6.13%,
04/01/2029
(e)
10
11
7.63%,
01/15/2025
(e)
187
194
IAMGOLD
Corp
5.75%,
10/15/2028
(e)
102
104
Newmont
Corp
2.25%,
10/01/2030
255
268
Novelis
Corp
4.75%,
01/30/2030
(e)
204
220
$
1,668
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
147
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
-
2.60%
Fannie
Mae
REMIC
Trust
2005-W2
0.35%,
05/25/2035
$
24
$
24
1.00
x
1
Month
USD
LIBOR
+
0.20%
Fannie
Mae
REMICS
2.25%,
07/25/2040
61
63
3.00%,
04/25/2022
(
i
)
70
1
3.00%,
04/25/2027
(
i
)
149
9
3.00%,
09/25/2050
(
i
)
1,281
192
3.50%,
11/25/2027
(
i
)
105
7
3.50%,
07/25/2028
(
i
)
198
12
3.50%,
03/25/2031
(
i
)
195
6
5.95%,
02/25/2043
(
i
)
236
52
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.95%,
09/25/2046
(
i
)
231
49
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
6.35%,
03/25/2022
(
i
)
5
—
(1.00)
x
1
Month
USD
LIBOR
+
6.50%
Freddie
Mac
REMICS
0.61%,
05/15/2049
1,795
1,806
1.00
x
1
Month
USD
LIBOR
+
0.45%
3.00%,
03/15/2026
(
i
)
86
1
3.00%,
05/15/2027
(
i
)
110
6
3.00%,
10/15/2027
(
i
)
64
4
4.00%,
11/15/2038
(
i
)
114
2
Ginnie
Mae
2.50%,
10/20/2050
(
i
)
696
71
3.00%,
07/20/2050
(
i
)
446
51
3.00%,
10/20/2050
(
i
)
1,293
161
3.00%,
11/20/2050
(
i
)
1,703
217
3.50%,
10/20/2049
(
i
)
731
89
5.35%,
05/20/2042
(
i
)
836
167
(1.00)
x
1
Month
USD
LIBOR
+
5.50%
5.95%,
11/20/2041
(
i
)
230
53
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.95%,
07/16/2042
(
i
)
1,902
429
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.95%,
07/16/2043
(
i
)
490
87
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.95%,
06/20/2046
(
i
)
556
113
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.99%,
12/20/2043
(
i
)
267
64
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
6.05%,
09/20/2041
(
i
)
2,135
313
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.05%,
11/20/2045
(
i
)
1,354
297
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.05%,
08/20/2047
(
i
)
1,517
342
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.10%,
06/20/2044
(
i
)
3,118
393
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
6.50%,
02/20/2042
(
i
)
148
38
(1.00)
x
1
Month
USD
LIBOR
+
6.65%
6.50%,
04/16/2042
(
i
)
883
201
(1.00)
x
1
Month
USD
LIBOR
+
6.65%
6.93%,
04/20/2041
(
i
)
1,042
237
(1.10)
x
1
Month
USD
LIBOR
+
7.10%
HomeBanc
Mortgage
Trust
2005-5
0.83%,
01/25/2036
169
165
1.00
x
1
Month
USD
LIBOR
+
0.34%
JP
Morgan
Mortgage
Trust
2016-2
2.77%,
06/25/2046
(e),(j)
265
268
JP
Morgan
Mortgage
Trust
2016-3
3.50%,
10/25/2046
(e),(j)
123
124
Sequoia
Mortgage
Trust
2016-3
3.50%,
11/25/2046
(e),(j)
475
479
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Washington
Mutual
Mortgage
Pass-Through
Certificates
WMALT
Series
2006-AR1
Trust
0.65%,
02/25/2036
$
62
$
52
1.00
x
1
Month
USD
LIBOR
+
0.50%
$
6,645
Office
&
Business
Equipment
-
0.02%
Xerox
Corp
4.38%,
03/15/2023
60
63
Oil
&
Gas
-
2.57%
Ascent
Resources
Utica
Holdings
LLC
/
ARU
Finance
Corp
7.00%,
11/01/2026
(e)
215
204
Chesapeake
Oil
Op/Fin
Escrow
Shares
0.00%,
11/15/2019
(d),(l),(m)
90
—
Comstock
Resources
Inc
7.50%,
05/15/2025
(e)
98
100
9.75%,
08/15/2026
163
176
Continental
Resources
Inc
/OK
3.80%,
06/01/2024
605
625
Ecopetrol
SA
6.88%,
04/29/2030
165
213
Leviathan
Bond
Ltd
5.75%,
06/30/2023
(e)
175
186
Marathon
Oil
Corp
4.40%,
07/15/2027
175
195
6.60%,
10/01/2037
225
278
MEG
Energy
Corp
6.50%,
01/15/2025
(e)
112
115
7.00%,
03/31/2024
(e)
102
103
7.13%,
02/01/2027
(e)
60
62
Occidental
Petroleum
Corp
2.90%,
08/15/2024
164
158
3.40%,
04/15/2026
52
50
4.40%,
04/15/2046
118
103
5.88%,
09/01/2025
508
541
6.13%,
01/01/2031
40
43
6.63%,
09/01/2030
41
44
Petrobras
Global
Finance
BV
5.60%,
01/03/2031
445
511
Petroleos
Mexicanos
4.50%,
01/23/2026
175
174
5.35%,
02/12/2028
150
148
6.50%,
01/23/2029
215
223
6.84%,
01/23/2030
105
110
6.95%,
01/28/2060
225
212
Saudi
Arabian
Oil
Co
1.63%,
11/24/2025
(e),(n)
500
512
Sinopec
Group
Overseas
Development
2017
Ltd
2.50%,
09/13/2022
(e),(n)
325
333
Southwestern
Energy
Co
7.75%,
10/01/2027
187
202
8.38%,
09/15/2028
10
11
Sunoco
LP
/
Sunoco
Finance
Corp
4.88%,
01/15/2023
45
46
Valero
Energy
Corp
2.85%,
04/15/2025
525
559
WPX
Energy
Inc
4.50%,
01/15/2030
196
208
5.25%,
09/15/2024
55
60
5.25%,
10/15/2027
25
26
5.75%,
06/01/2026
20
21
5.88%,
06/15/2028
20
22
$
6,574
Other
Asset
Backed
Securities
-
1.16%
Dell
Equipment
Finance
Trust
2020-2
0.47%,
10/24/2022
(e)
845
847
John
Deere
Owner
Trust
2020-B
0.41%,
03/15/2023
575
575
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
148
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Other
Asset
Backed
Securities
(continued)
Verizon
Owner
Trust
2018-1
2.82%,
09/20/2022
(e)
$
117
$
118
Verizon
Owner
Trust
2018-A
3.23%,
04/20/2023
664
673
Volvo
Financial
Equipment
LLC
0.37%,
04/17/2023
(e)
745
745
$
2,958
Packaging
&
Containers
-
0.09%
Crown
Americas
LLC
/
Crown
Americas
Capital
Corp
VI
4.75%,
02/01/2026
65
67
Crown
Cork
&
Seal
Co
Inc
7.38%,
12/15/2026
124
151
Reynolds
Group
Issuer
Inc
/
Reynolds
Group
Issuer
LLC
/
Reynolds
Group
Issuer
(Luxembourg)
S.A.
5.13%,
07/15/2023
(e)
2
2
$
220
Pharmaceuticals
-
2.48%
AbbVie
Inc
2.60%,
11/21/2024
170
182
3.75%,
11/14/2023
675
736
AstraZeneca
PLC
0.70%,
04/08/2026
505
502
Bausch
Health
Americas
Inc
8.50%,
01/31/2027
(e)
70
78
Bausch
Health
Cos
Inc
5.00%,
01/30/2028
(e)
37
38
Becton
Dickinson
and
Co
2.89%,
06/06/2022
158
163
3.36%,
06/06/2024
200
217
3.70%,
06/06/2027
450
517
Bristol-Myers
Squibb
Co
4.13%,
06/15/2039
240
306
4.25%,
10/26/2049
790
1,068
Cigna
Corp
3.75%,
07/15/2023
213
230
4.38%,
10/15/2028
345
417
4.80%,
08/15/2038
165
215
4.90%,
12/15/2048
35
48
CVS
Health
Corp
3.63%,
04/01/2027
155
176
4.30%,
03/25/2028
79
94
4.88%,
07/20/2035
190
247
5.05%,
03/25/2048
35
48
Eli
Lilly
and
Co
4.15%,
03/15/2059
80
111
Viatris
Inc
1.65%,
06/22/2025
(e)
75
78
Zoetis
Inc
3.25%,
02/01/2023
240
253
4.45%,
08/20/2048
345
463
4.70%,
02/01/2043
120
164
$
6,351
Pipelines
-
2.23%
Abu
Dhabi
Crude
Oil
Pipeline
LLC
3.65%,
11/02/2029
(e)
200
230
Antero
Midstream
Partners
LP
/
Antero
Midstream
Finance
Corp
5.38%,
09/15/2024
100
98
5.75%,
03/01/2027
(e)
110
108
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp
5.63%,
05/01/2027
(e)
374
370
Energy
Transfer
Operating
LP
3.75%,
05/15/2030
505
545
4.50%,
04/15/2024
390
427
5.15%,
03/15/2045
75
81
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pipelines
(continued)
EnLink
Midstream
LLC
5.63%,
01/15/2028
(e)
$
245
$
250
Enterprise
Products
Operating
LLC
3.95%,
01/31/2060
80
89
4.20%,
01/31/2050
155
182
5.38%,
02/15/2078
(f)
250
253
3
Month
USD
LIBOR
+
2.57%
EQM
Midstream
Partners
LP
6.00%,
07/01/2025
(e)
80
88
Galaxy
Pipeline
Assets
Bidco
Ltd
1.75%,
09/30/2027
(e)
225
228
NuStar
Logistics
LP
6.75%,
02/01/2021
120
120
Sabine
Pass
Liquefaction
LLC
5.00%,
03/15/2027
175
206
5.75%,
05/15/2024
1,325
1,515
Targa
Resources
Partners
LP
/
Targa
Resources
Partners
Finance
Corp
5.88%,
04/15/2026
121
128
6.50%,
07/15/2027
165
179
Williams
Cos
Inc
/The
4.55%,
06/24/2024
550
616
$
5,713
REITs
-
1.38%
American
Campus
Communities
Operating
Partnership
LP
3.88%,
01/30/2031
405
459
American
Tower
Corp
1.30%,
09/15/2025
185
189
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp
3.85%,
04/15/2023
510
547
CyrusOne
LP
/
CyrusOne
Finance
Corp
2.90%,
11/15/2024
295
315
HAT
Holdings
I
LLC
/
HAT
Holdings
II
LLC
3.75%,
09/15/2030
(e)
150
156
6.00%,
04/15/2025
(e)
46
49
Healthcare
Trust
of
America
Holdings
LP
3.10%,
02/15/2030
235
257
Host
Hotels
&
Resorts
LP
4.00%,
06/15/2025
260
279
Iron
Mountain
Inc
5.00%,
07/15/2028
(e)
98
104
Mid-America
Apartments
LP
1.70%,
02/15/2031
270
269
Spirit
Realty
LP
3.20%,
02/15/2031
435
462
VEREIT
Operating
Partnership
LP
3.10%,
12/15/2029
185
200
VICI
Properties
LP
/
VICI
Note
Co
Inc
3.50%,
02/15/2025
(e)
55
56
4.13%,
08/15/2030
(e)
187
197
$
3,539
Retail
-
0.50%
Falabella
SA
3.75%,
04/30/2023
(e)
200
211
Gap
Inc
/The
8.38%,
05/15/2023
(e),(n)
61
69
Home
Depot
Inc
/The
3.30%,
04/15/2040
70
82
5.88%,
12/16/2036
60
91
IRB
Holding
Corp
7.00%,
06/15/2025
(e)
15
16
L
Brands
Inc
6.63%,
10/01/2030
(e)
94
105
6.88%,
07/01/2025
(e)
30
32
9.38%,
07/01/2025
(e)
91
112
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
149
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Retail
(continued)
LBM
Acquisition
LLC
6.25%,
01/15/2029
(e)
$
50
$
52
PetSmart
Inc
5.88%,
06/01/2025
(e)
301
309
Yum!
Brands
Inc
3.63%,
03/15/2031
150
152
7.75%,
04/01/2025
(e)
46
51
$
1,282
Semiconductors
-
1.36%
Applied
Materials
Inc
1.75%,
06/01/2030
440
457
Broadcom
Inc
3.15%,
11/15/2025
270
295
4.70%,
04/15/2025
525
602
Micron
Technology
Inc
2.50%,
04/24/2023
270
281
NVIDIA
Corp
3.50%,
04/01/2040
255
306
3.50%,
04/01/2050
600
728
NXP
BV
/
NXP
Funding
LLC
4.63%,
06/01/2023
(e)
400
437
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA
Inc
2.70%,
05/01/2025
(e)
60
64
3.15%,
05/01/2027
(e)
60
66
Xilinx
Inc
2.95%,
06/01/2024
225
242
$
3,478
Software
-
1.43%
Activision
Blizzard
Inc
2.50%,
09/15/2050
260
254
3.40%,
09/15/2026
100
114
Adobe
Inc
2.30%,
02/01/2030
575
622
Fiserv
Inc
3.50%,
07/01/2029
850
971
4.40%,
07/01/2049
190
255
Microsoft
Corp
2.68%,
06/01/2060
99
107
3.70%,
08/08/2046
120
152
Open
Text
Corp
3.88%,
02/15/2028
(e)
130
135
5.88%,
06/01/2026
(e)
74
77
Oracle
Corp
2.50%,
04/01/2025
255
274
2.80%,
04/01/2027
240
265
2.95%,
05/15/2025
100
110
4.00%,
11/15/2047
35
43
salesforce.com
Inc
3.70%,
04/11/2028
230
271
$
3,650
Sovereign
-
2.55%
Abu
Dhabi
Government
International
Bond
3.88%,
04/16/2050
(e)
200
244
Brazilian
Government
International
Bond
3.88%,
06/12/2030
225
237
CoBank
ACB
6.25%,
10/01/2026
(f),(g)
115
126
3
Month
USD
LIBOR
+
4.66%
Colombia
Government
International
Bond
3.13%,
04/15/2031
200
212
4.50%,
03/15/2029
325
377
Dominican
Republic
International
Bond
4.88%,
09/23/2032
(e)
400
443
Egypt
Government
International
Bond
5.25%,
10/06/2025
(e)
200
212
8.50%,
01/31/2047
200
226
El
Salvador
Government
International
Bond
5.88%,
01/30/2025
165
156
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Sovereign
(continued)
Guatemala
Government
Bond
5.38%,
04/24/2032
$
200
$
244
Honduras
Government
International
Bond
7.50%,
03/15/2024
200
223
Indonesia
Government
International
Bond
5.38%,
10/17/2023
(e)
300
339
Kazakhstan
Government
International
Bond
5.13%,
07/21/2025
200
236
Mexico
Government
International
Bond
5.00%,
04/27/2051
200
249
Morocco
Government
International
Bond
3.00%,
12/15/2032
(e)
200
203
Panama
Government
International
Bond
3.88%,
03/17/2028
200
230
Qatar
Government
International
Bond
4.63%,
06/02/2046
200
265
Russian
Foreign
Bond
-
Eurobond
5.10%,
03/28/2035
(e)
400
506
Saudi
Government
International
Bond
4.00%,
04/17/2025
(e)
275
307
4.50%,
10/26/2046
500
606
Turkey
Government
International
Bond
6.38%,
10/14/2025
250
270
Ukraine
Government
International
Bond
7.25%,
03/15/2033
(e)
200
218
9.75%,
11/01/2028
(e)
200
246
Uruguay
Government
International
Bond
5.10%,
06/18/2050
100
140
$
6,515
Student
Loan
Asset
Backed
Securities
-
0.40%
Navient
Student
Loan
Trust
2019-1
0.48%,
12/27/2067
(e)
28
28
1.00
x
1
Month
USD
LIBOR
+
0.33%
SMB
Private
Education
Loan
Trust
2020-A
0.46%,
03/15/2027
(e)
1,006
1,005
1.00
x
1
Month
USD
LIBOR
+
0.30%
$
1,033
Telecommunications
-
2.70%
AT&T
Inc
2.55%,
12/01/2033
(e)
199
204
2.75%,
06/01/2031
135
144
3.10%,
02/01/2043
150
152
3.50%,
06/01/2041
215
232
3.50%,
09/15/2053
(e)
409
410
3.50%,
02/01/2061
195
194
3.55%,
09/15/2055
(e)
324
323
3.65%,
09/15/2059
(e)
57
58
4.05%,
12/15/2023
425
470
4.30%,
02/15/2030
110
131
CenturyLink
Inc
4.50%,
01/15/2029
(e)
30
31
CommScope
Inc
8.25%,
03/01/2027
(e)
153
163
Embarq
Corp
8.00%,
06/01/2036
167
206
Level
3
Financing
Inc
3.63%,
01/15/2029
(e)
51
51
4.25%,
07/01/2028
(e)
98
101
Ooredoo
International
Finance
Ltd
3.88%,
01/31/2028
250
287
Sprint
Communications
Inc
6.00%,
11/15/2022
75
81
Sprint
Corp
7.13%,
06/15/2024
112
131
7.63%,
03/01/2026
66
82
7.88%,
09/15/2023
173
200
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
150
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
T-Mobile
USA
Inc
3.50%,
04/15/2025
(e)
$
315
$
348
4.00%,
04/15/2022
125
129
5.13%,
04/15/2025
186
190
VEON
Holdings
BV
3.38%,
11/25/2027
(e)
200
206
Verizon
Communications
Inc
2.88%,
11/20/2050
725
731
2.99%,
10/30/2056
(e)
310
312
3.88%,
02/08/2029
270
318
4.50%,
08/10/2033
355
448
Vodafone
Group
PLC
4.88%,
06/19/2049
215
287
VTR
Comunicaciones
SpA
5.13%,
01/15/2028
(e)
200
213
Zayo
Group
Holdings
Inc
4.00%,
03/01/2027
(e)
74
74
$
6,907
Transportation
-
0.06%
Eletson
Holdings
Inc
/
Eletson
Finance
US
LLC
/
Agathonissos
Finance
LLC
0.00%,
01/15/2022
(d),(l),(m)
121
35
Navios
Maritime
Acquisition
Corp
/
Navios
Acquisition
Finance
US
Inc
8.13%,
11/15/2021
(e)
94
62
Navios
South
American
Logistics
Inc
/
Navios
Logistics
Finance
US
Inc
10.75%,
07/01/2025
(e)
46
49
$
146
Trucking
&
Leasing
-
0.02%
DAE
Funding
LLC
4.50%,
08/01/2022
(e)
45
46
U.S.
Municipals
-
0.08%
Istanbul
Metropolitan
Municipality
6.38%,
12/09/2025
(e)
200
205
TOTAL
BONDS
$
165,715
SENIOR
FLOATING
RATE
INTERESTS
-
0.97%
Principal
Amount
(000's)
Value
(000's)
Automobile
Manufacturers
-
0.05%
Navistar
Inc
3.66%,
11/06/2024
(o)
$
120
$
120
3
Month
USD
LIBOR
+
3.00%
Commercial
Services
-
0.01%
Refinitiv
US
Holdings
Inc
3.40%,
10/01/2025
(o)
34
34
3
Month
USD
LIBOR
+
3.00%
Consumer
Products
-
0.04%
Kronos
Acquisition
Holdings
Inc
0.00%,
12/17/2026
(o),(p)
110
110
1
Month
USD
LIBOR
+
4.50%
Diversified
Financial
Services
-
0.15%
Russell
Investments
US
Institutional
Holdco
Inc
4.00%,
06/02/2025
(o)
373
372
1
Month
USD
LIBOR
+
3.00%
Entertainment
-
0.09%
CCM
Merger
Inc
4.50%,
10/29/2025
(o)
175
175
1
Month
USD
LIBOR
+
3.75%
Lions
Gate
Capital
Holdings
LLC
2.40%,
03/24/2025
(o)
49
48
3
Month
USD
LIBOR
+
2.00%
$
223
Food
-
0.02%
Bellring
Brands
LLC
6.00%,
10/21/2024
(o)
50
50
1
Month
USD
LIBOR
+
5.00%
SENIOR
FLOATING
RATE
INTERESTS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Insurance
-
0.12%
AssuredPartners
Inc
5.50%,
02/13/2027
(o)
$
99
$
99
1
Month
USD
LIBOR
+
4.50%
Asurion
LLC
3.15%,
11/03/2023
(o)
60
59
1
Month
USD
LIBOR
+
7.25%
6.65%,
08/04/2025
(o)
154
155
3
Month
USD
LIBOR
+
3.25%
$
313
Lodging
-
0.02%
Golden
Nugget
LLC
3.36%,
10/04/2023
(o)
62
60
1
Month
USD
LIBOR
+
2.50%
Media
-
0.02%
CSC
Holdings
LLC
2.66%,
04/15/2027
(o)
49
49
1
Month
USD
LIBOR
+
2.50%
Oil
&
Gas
-
0.01%
Ascent
Resources
Utica
Holdings
LLC
10.00%,
11/01/2025
(o)
20
22
1
Month
USD
LIBOR
+
9.00%
Pharmaceuticals
-
0.23%
Bausch
Health
Americas
Inc
2.77%,
05/19/2025
(o)
300
298
3
Month
USD
LIBOR
+
7.50%
Endo
International
PLC
5.00%,
04/29/2024
(o)
306
300
3
Month
USD
LIBOR
+
4.00%
$
598
Retail
-
0.14%
IRB
Holding
Corp
0.00%,
11/19/2027
(o),(p)
175
175
1
Month
USD
LIBOR
+
3.25%
3.75%,
02/05/2025
(o)
185
183
1
Month
USD
LIBOR
+
2.75%
$
358
Telecommunications
-
0.07%
Maxar
Technologies
Ltd
2.90%,
10/05/2024
(o)
104
103
3
Month
USD
LIBOR
+
4.25%
Zayo
Group
Holdings
Inc
3.15%,
03/09/2027
(o)
80
79
1
Month
USD
LIBOR
+
3.00%
$
182
TOTAL
SENIOR
FLOATING
RATE
INTERESTS
$
2,491
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
37.56%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
2.29%
3.00%,
10/01/2042
$
39
$
42
3.00%,
11/01/2042
227
246
3.00%,
11/01/2042
41
44
3.00%,
03/01/2043
1,064
1,164
3.00%,
12/01/2046
94
100
3.50%,
10/01/2041
30
33
3.50%,
04/01/2042
38
41
3.50%,
04/01/2042
83
90
3.50%,
04/01/2045
39
42
3.50%,
10/01/2045
667
729
3.50%,
03/01/2048
100
109
3.62%,
02/01/2037
7
7
1.00
x
12
Month
USD
LIBOR
+
1.63%
4.00%,
02/01/2045
17
18
4.00%,
02/01/2046
54
59
4.00%,
02/01/2046
285
313
4.00%,
06/01/2046
47
52
4.00%,
04/01/2047
270
297
4.00%,
11/01/2047
359
387
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
151
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
4.50%,
07/01/2024
$
8
$
8
4.50%,
10/01/2041
26
29
4.50%,
12/01/2043
671
754
4.50%,
03/01/2046
224
254
5.00%,
06/01/2031
70
79
5.00%,
10/01/2035
24
28
5.00%,
06/01/2041
634
739
6.00%,
06/01/2032
16
19
6.00%,
10/01/2032
9
11
6.00%,
01/01/2038
45
53
6.50%,
03/01/2029
2
2
6.50%,
05/01/2029
3
4
6.50%,
04/01/2031
2
2
6.50%,
02/01/2032
3
4
6.50%,
05/01/2032
3
3
6.50%,
04/01/2035
6
7
7.00%,
12/01/2029
10
10
7.00%,
06/01/2030
3
4
7.00%,
12/01/2030
1
1
7.00%,
01/01/2031
1
2
7.00%,
12/01/2031
28
29
7.50%,
04/01/2030
1
1
7.50%,
03/01/2031
7
8
8.00%,
09/01/2030
30
31
$
5,855
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
17.00%
2.00%,
01/01/2036
(q)
2,450
2,561
2.00%,
01/01/2051
(q)
7,550
7,843
2.50%,
06/01/2035
1,943
2,026
2.50%,
08/01/2035
1,866
1,968
2.50%,
01/01/2036
(q)
700
730
2.50%,
01/01/2051
(q)
7,950
8,380
3.00%,
03/01/2034
215
228
3.00%,
03/01/2042
61
65
3.00%,
03/01/2042
65
69
3.00%,
05/01/2042
34
37
3.00%,
06/01/2042
62
66
3.00%,
06/01/2042
30
32
3.00%,
05/01/2043
142
154
3.00%,
07/01/2050
932
984
3.50%,
04/01/2030
254
276
3.50%,
05/01/2034
1,087
1,194
3.50%,
08/01/2034
248
266
3.50%,
12/01/2040
48
52
3.50%,
01/01/2041
30
32
3.50%,
12/01/2041
14
15
3.50%,
03/01/2042
26
28
3.50%,
04/01/2042
54
59
3.50%,
11/01/2042
805
894
3.50%,
02/01/2043
38
41
3.50%,
07/01/2043
664
730
3.50%,
01/01/2044
204
224
3.50%,
11/01/2044
1,178
1,289
3.50%,
03/01/2045
42
46
3.50%,
06/01/2045
80
87
3.50%,
11/01/2045
48
52
3.50%,
05/01/2046
37
40
3.50%,
10/01/2047
1,271
1,403
3.50%,
11/01/2047
539
589
3.50%,
03/01/2048
822
898
3.50%,
04/01/2048
1,082
1,182
4.00%,
03/01/2034
313
353
4.00%,
09/01/2040
63
70
4.00%,
05/01/2041
144
159
4.00%,
10/01/2041
21
23
4.00%,
10/01/2041
35
38
4.00%,
11/01/2041
34
37
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
4.00%,
04/01/2042
$
22
$
24
4.00%,
11/01/2043
81
90
4.00%,
11/01/2043
26
28
4.00%,
02/01/2044
93
102
4.00%,
06/01/2044
210
232
4.00%,
09/01/2044
21
23
4.00%,
09/01/2045
84
92
4.00%,
12/01/2045
469
512
4.00%,
08/01/2046
64
70
4.00%,
01/01/2047
40
43
4.00%,
04/01/2047
237
257
4.00%,
05/01/2047
523
563
4.00%,
11/01/2047
1,436
1,577
4.00%,
05/01/2048
107
116
4.00%,
10/01/2048
326
360
4.00%,
10/01/2048
864
930
4.00%,
01/01/2049
177
191
4.50%,
07/01/2025
25
26
4.50%,
08/01/2040
36
40
4.50%,
11/01/2040
560
629
4.50%,
12/01/2040
25
28
4.50%,
08/01/2041
25
28
4.50%,
09/01/2041
177
198
4.50%,
05/01/2044
27
30
4.50%,
12/01/2044
63
69
4.50%,
06/01/2046
30
32
4.50%,
05/01/2047
65
72
4.50%,
05/01/2047
20
22
4.50%,
05/01/2049
215
235
5.00%,
10/01/2041
134
154
5.00%,
06/01/2048
304
346
5.50%,
12/01/2022
5
5
5.50%,
07/01/2033
184
214
5.50%,
04/01/2035
22
25
5.50%,
08/01/2036
384
452
5.50%,
02/01/2037
3
4
5.50%,
05/01/2040
30
34
6.00%,
05/01/2031
2
2
6.00%,
07/01/2035
110
132
6.00%,
02/01/2037
25
28
6.00%,
02/01/2038
42
50
6.50%,
03/01/2032
2
3
6.50%,
07/01/2037
28
34
6.50%,
07/01/2037
13
15
6.50%,
02/01/2038
33
39
6.50%,
03/01/2038
7
8
6.50%,
09/01/2038
104
121
$
43,505
Government
National
Mortgage
Association
(GNMA)
-
5.79%
2.00%,
01/01/2051
1,700
1,778
2.50%,
01/01/2051
5,000
5,293
3.00%,
02/15/2043
243
261
3.00%,
07/20/2044
344
366
3.00%,
01/20/2046
254
270
3.00%,
07/20/2046
403
429
3.00%,
12/20/2046
1,112
1,185
3.50%,
04/20/2046
159
179
3.50%,
10/20/2046
237
259
3.50%,
07/20/2047
880
974
4.00%,
02/15/2042
89
98
4.00%,
06/20/2046
71
77
4.00%,
01/20/2048
1,608
1,772
4.50%,
09/15/2039
452
519
4.50%,
11/15/2040
80
91
4.50%,
06/20/2048
14
15
5.00%,
02/15/2034
161
185
5.00%,
10/15/2034
58
67
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
152
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
5.00%,
10/20/2039
$
29
$
33
5.00%,
07/20/2040
12
13
5.00%,
02/15/2042
69
80
5.50%,
12/20/2033
82
96
5.50%,
05/20/2035
9
10
5.50%,
12/20/2048
356
392
6.00%,
01/20/2029
14
16
6.00%,
07/20/2029
2
3
6.00%,
12/15/2033
21
24
6.00%,
12/20/2036
44
51
6.50%,
03/20/2028
2
3
6.50%,
05/20/2029
2
3
6.50%,
12/15/2032
219
248
7.00%,
03/15/2031
2
2
7.50%,
05/15/2029
12
12
8.00%,
12/15/2030
5
6
$
14,810
U.S.
Treasury
-
11.45%
1.63%,
08/15/2029
1,100
1,177
2.25%,
11/15/2027
3,500
3,887
2.38%,
05/15/2027
3,750
4,183
3.00%,
09/30/2025
1,000
1,125
3.00%,
05/15/2045
1,140
1,479
3.00%,
11/15/2045
(r)
3,150
4,099
3.13%,
05/15/2048
5,625
7,551
3.75%,
11/15/2043
1,650
2,375
4.75%,
02/15/2037
2,260
3,445
$
29,321
U.S.
Treasury
Bill
-
1.03%
0.08%,
01/07/2021
(s)
2,250
2,250
0.08%,
01/14/2021
(s)
400
400
$
2,650
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
96,141
Total
Investments
$
280,237
Other
Assets
and
Liabilities
- (9.49)%
(24,281)
TOTAL
NET
ASSETS
-
100.00%
$
255,956
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$412
or
0.16%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$41,528
or
16.22%
of
net
assets.
(f)
Rate
shown
is
as
of
period
end.
The
rate
may
be
a
variable
or
floating
rate
or
a
fixed
rate
which
may
convert
to
a
variable
or
floating
rate
in
the
future.
(g)
Perpetual
security.
Perpetual
securities
pay
an
indefinite
stream
of
interest,
but
they
may
be
called
by
the
issuer
at
an
earlier
date.
Date
shown,
if
any,
reflects
the
next
call
date
or
final
legal
maturity
date.
Rate
shown
is
as
of
period
end.
(h)
Security
is
a
contingent
convertible
security,
("
CoCo
").
CoCo's
are
hybrid
debt
securities
that
may
convert
to
equity
or
have
their
principal
written
down
upon
occurrence
of
certain
"triggers".
See
accompanying
notes
for
additional
information.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$2,768
or
1.08%
of
net
assets.
(
i
)
Security
is
an
Interest
Only
Strip.
(j)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions. These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(k)
Payment
in
kind;
the
issuer
has
the
option
of
paying
additional
securities
in
lieu
of
cash.
(l)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(m)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$35
or
0.01%
of
net
assets.
(n)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(o)
Rate
information
disclosed
is
based
on
an
average
weighted
rate
of
the
underlying
tranches
as
of
period
end.
(p)
This
Senior
Floating
Rate
Note
will
settle
after
December
31,
2020,
at
which
time
the
interest
rate
will
be
determined.
(q)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction.
See
accompanying
notes
for
additional
information.
(r)
Security
or
a
portion
of
the
security
was
pledged
to
cover
margin
requirements
for
futures
contracts.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$286
or
0.11%
of
net
assets.
(s)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Portfolio
Summary (unaudited)
Sector
Percent
Mortgage
Securities
29.58%
Financial
16.92%
Government
15.11%
Consumer,
Non-cyclical
7.91%
Asset
Backed
Securities
7.29%
Communications
6.88%
Energy
4.88%
Consumer,
Cyclical
4.30%
Money
Market
Funds
4.14%
Technology
3.16%
Utilities
2.72%
Industrial
2.55%
Basic
Materials
2.05%
Investment
Companies
2.00%
Other
Assets
and
Liabilities
(9.49)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2020
See
accompanying
notes.
153
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
11,648
$
200,553
$
202,029
$
10,172
$
11,648
$
200,553
$
202,029
$
10,172
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
36
$
—
$
—
$
—
$
36
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
10
Year
Note;
March
2021
Short
6
$
828
$
—
US
2
Year
Note;
March
2021
Long
7
1,547
2
US
5
Year
Note;
March
2021
Short
3
379
(1)
Total
$
1
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
Diversified
Balanced
Account
December
31,
2020
See
accompanying
notes.
154
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
15.40%
International
Equity
Index
Fund
(a)
6,482,220
$
72,147
MidCap
S&P
400
Index
Fund
(a)
2,036,242
43,453
SmallCap
S&P
600
Index
Fund
(a)
1,541,658
41,548
$
157,148
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
84.63%
Bond
Market
Index
Account
(a)
45,054,328
505,059
LargeCap
S&P
500
Index
Account
(a)
16,332,178
358,328
$
863,387
TOTAL
INVESTMENT
COMPANIES
$
1,020,535
BONDS
-
0.00%
Principal
Amount
(000's)
Value
(000's)
Oil
&
Gas
-
0.00%
Chesapeake
Oil
Op/Fin
Escrow
Shares
0.00%,
11/15/2019
(b),(c),(d)
$
5
$
—
TOTAL
BONDS
$
—
Total
Investments
$
1,020,535
Other
Assets
and
Liabilities
- (0.03)%
(259)
TOTAL
NET
ASSETS
-
100.00%
$
1,020,276
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(d)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$0
or
0.00%
of
net
assets.
Portfolio
Summary (unaudite
d)
Fund
Type
Percent
Fixed
Income
Funds
49.51%
Domestic
Equity
Funds
43.45%
International
Equity
Funds
7.07%
Energy
0.00%
Other
Assets
and
Liabilities
(0.03)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
504,518
$
118,856
$
139,723
$
505,059
International
Equity
Index
Fund
73,545
13,269
19,492
72,147
LargeCap
S&P
500
Index
Account
366,108
73,424
118,603
358,328
MidCap
S&P
400
Index
Fund
42,334
13,335
16,436
43,453
SmallCap
S&P
600
Index
Fund
42,712
12,870
20,021
41,548
$
1,029,217
$
231,754
$
314,275
$
1,020,535
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
12,573
$
3,931
$
—
$
17,477
International
Equity
Index
Fund
1,499
(18)
160
4,843
LargeCap
S&P
500
Index
Account
6,611
29,322
20,417
8,077
MidCap
S&P
400
Index
Fund
690
1,635
2,260
2,585
SmallCap
S&P
600
Index
Fund
705
1,603
255
4,384
$
22,078
$
36,473
$
23,092
$
37,366
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Balanced
Managed
Volatility
Account
December
31,
2020
See
accompanying
notes.
155
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
15.41%
International
Equity
Index
Fund
(a)
1,176,953
$
13,099
MidCap
S&P
400
Index
Fund
(a)
369,521
7,885
SmallCap
S&P
600
Index
Fund
(a)
279,875
7,543
$
28,527
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
84.62%
Bond
Market
Index
Account
(a)
8,180,946
91,710
LargeCap
S&P
500
Managed
Volatility
Index
Account
(a)
3,844,101
64,965
$
156,675
TOTAL
INVESTMENT
COMPANIES
$
185,202
Total
Investments
$
185,202
Other
Assets
and
Liabilities
- (0.03)%
(53
)
TOTAL
NET
ASSETS
-
100.00%
$
185,149
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
49.53%
Domestic
Equity
Funds
43.42%
International
Equity
Funds
7.08%
Other
Assets
and
Liabilities
(0.03)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
87,825
$
22,323
$
22,166
$
91,710
International
Equity
Index
Fund
12,794
2,854
3,469
13,099
LargeCap
S&P
500
Managed
Volatility
Index
Account
60,876
12,718
16,943
64,965
MidCap
S&P
400
Index
Fund
7,363
2,727
2,991
7,885
SmallCap
S&P
600
Index
Fund
7,428
2,585
3,582
7,543
$
176,286
$
43,207
$
49,151
$
185,202
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
2,234
$
429
$
—
$
3,299
International
Equity
Index
Fund
271
—
29
920
LargeCap
S&P
500
Managed
Volatility
Index
Account
951
1,733
1,353
6,581
MidCap
S&P
400
Index
Fund
124
(7)
407
793
SmallCap
S&P
600
Index
Fund
127
7
46
1,105
$
3,707
$
2,162
$
1,835
$
12,698
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Balanced
Volatility
Control
Account
December
31,
2020
See
accompanying
notes.
156
INVESTMENT
COMPANIES
-
100.05%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
20.04%
iShares
Core
S&P
500
ETF
98,513
$
36,980
Money
Market
Funds
-
0.01%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
15,715
16
Principal
Funds,
Inc.
Class
R-6
-
15.28%
International
Equity
Index
Fund
(a)
1,159,429
12,904
MidCap
S&P
400
Index
Fund
(a)
366,069
7,812
SmallCap
S&P
600
Index
Fund
(a)
277,071
7,467
$
28,183
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
64.72%
Bond
Market
Index
Account
(a)
8,175,672
91,650
LargeCap
S&P
500
Index
Account
(a)
1,264,715
27,748
$
119,398
TOTAL
INVESTMENT
COMPANIES
$
184,577
Total
Investments
$
184,577
Other
Assets
and
Liabilities
- (0.05)%
(98)
TOTAL
NET
ASSETS
-
100.00%
$
184,479
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
49.68%
Domestic
Equity
Funds
23.32%
Investment
Companies
20.04%
International
Equity
Funds
7.00%
Money
Market
Funds
0.01%
Other
Assets
and
Liabilities
(0.05)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
72,567
$
27,362
$
11,522
$
91,650
International
Equity
Index
Fund
10,190
4,515
2,904
12,904
LargeCap
S&P
500
Index
Account
21,826
10,425
7,569
27,748
MidCap
S&P
400
Index
Fund
5,883
3,841
2,806
7,812
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
242
120,524
120,750
16
SmallCap
S&P
600
Index
Fund
5,872
3,562
3,238
7,467
$
116,580
$
170,229
$
148,789
$
147,597
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
2,135
$
—
$
—
$
3,243
International
Equity
Index
Fund
267
(10)
29
1,113
LargeCap
S&P
500
Index
Account
481
76
1,485
2,990
MidCap
S&P
400
Index
Fund
123
(19)
402
913
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
35
—
—
—
SmallCap
S&P
600
Index
Fund
125
26
45
1,245
$
3,166
$
73
$
1,961
$
9,504
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Growth
Account
December
31,
2020
See
accompanying
notes.
157
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
20.46%
International
Equity
Index
Fund
(a)
34,870,078
$
388,104
MidCap
S&P
400
Index
Fund
(a)
9,581,499
204,469
SmallCap
S&P
600
Index
Fund
(a)
7,255,607
195,539
$
788,112
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
79.57%
Bond
Market
Index
Account
(a)
118,752,076
1,331,210
LargeCap
S&P
500
Index
Account
(a)
79,068,633
1,734,766
$
3,065,976
TOTAL
INVESTMENT
COMPANIES
$
3,854,088
Total
Investments
$
3,854,088
Other
Assets
and
Liabilities
- (0.03)%
(996)
TOTAL
NET
ASSETS
-
100.00%
$
3,853,092
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
55.41%
Fixed
Income
Funds
34.55%
International
Equity
Funds
10.07%
Other
Assets
and
Liabilities
(0.03)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
1,287,209
$
380,956
$
390,648
$
1,331,210
International
Equity
Index
Fund
382,917
62,434
81,968
388,104
LargeCap
S&P
500
Index
Account
1,715,555
280,132
429,357
1,734,766
MidCap
S&P
400
Index
Fund
192,861
54,465
61,317
204,469
SmallCap
S&P
600
Index
Fund
194,578
51,766
77,787
195,539
$
3,773,120
$
829,753
$
1,041,077
$
3,854,088
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
32,855
$
9,475
$
—
$
44,218
International
Equity
Index
Fund
8,072
(205)
856
24,926
LargeCap
S&P
500
Index
Account
31,731
80,650
97,991
87,786
MidCap
S&P
400
Index
Fund
3,234
1,188
10,595
17,272
SmallCap
S&P
600
Index
Fund
3,305
39
1,196
26,943
$
79,197
$
91,147
$
110,638
$
201,145
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Growth
Managed
Volatility
Account
December
31,
2020
See
accompanying
notes.
158
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
20.47%
International
Equity
Index
Fund
(a)
3,425,411
$
38,125
MidCap
S&P
400
Index
Fund
(a)
941,230
20,086
SmallCap
S&P
600
Index
Fund
(a)
712,755
19,208
$
77,419
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
79.56%
Bond
Market
Index
Account
(a)
11,665,646
130,772
LargeCap
S&P
500
Managed
Volatility
Index
Account
(a)
10,068,581
170,159
$
300,931
TOTAL
INVESTMENT
COMPANIES
$
378,350
Total
Investments
$
378,350
Other
Assets
and
Liabilities
- (0.03)%
(102)
TOTAL
NET
ASSETS
-
100.00%
$
378,248
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
55.38%
Fixed
Income
Funds
34.57%
International
Equity
Funds
10.08%
Other
Assets
and
Liabilities
(0.03)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
123,218
$
35,441
$
32,997
$
130,772
International
Equity
Index
Fund
36,631
6,713
7,838
38,125
LargeCap
S&P
500
Managed
Volatility
Index
Account
156,880
24,083
31,828
170,159
MidCap
S&P
400
Index
Fund
18,446
5,747
6,028
20,086
SmallCap
S&P
600
Index
Fund
18,608
5,437
7,629
19,208
$
353,783
$
77,421
$
86,320
$
378,350
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
3,190
$
749
$
—
$
4,361
International
Equity
Index
Fund
793
(6)
84
2,625
LargeCap
S&P
500
Managed
Volatility
Index
Account
2,493
3,616
3,550
17,408
MidCap
S&P
400
Index
Fund
318
(10)
1,041
1,931
SmallCap
S&P
600
Index
Fund
324
(2)
117
2,794
$
7,118
$
4,347
$
4,792
$
29,119
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Growth
Volatility
Control
Account
December
31,
2020
See
accompanying
notes.
159
INVESTMENT
COMPANIES
-
100.12%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
20.10%
iShares
Core
S&P
500
ETF
532,909
$
200,049
Money
Market
Funds
-
0.01%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
111,438
111
Principal
Funds,
Inc.
Class
R-6
-
20.30%
International
Equity
Index
Fund
(a)
8,919,611
99,275
MidCap
S&P
400
Index
Fund
(a)
2,463,584
52,573
SmallCap
S&P
600
Index
Fund
(a)
1,864,924
50,260
$
202,108
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
59.71%
Bond
Market
Index
Account
(a)
30,816,240
345,450
LargeCap
S&P
500
Index
Account
(a)
11,350,762
249,036
$
594,486
TOTAL
INVESTMENT
COMPANIES
$
996,754
Total
Investments
$
996,754
Other
Assets
and
Liabilities
- (0.12)%
(1,169)
TOTAL
NET
ASSETS
-
100.00%
$
995,585
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
35.34%
Fixed
Income
Funds
34.70%
Investment
Companies
20.10%
International
Equity
Funds
9.97%
Money
Market
Funds
0.01%
Other
Assets
and
Liabilities
(0.12)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
267,381
$
109,560
$
43,250
$
345,450
International
Equity
Index
Fund
76,620
31,856
17,513
99,275
LargeCap
S&P
500
Index
Account
191,472
84,817
53,936
249,036
MidCap
S&P
400
Index
Fund
38,707
23,080
15,054
52,573
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
1,047
718,931
719,867
111
SmallCap
S&P
600
Index
Fund
38,635
22,395
19,158
50,260
$
613,862
$
990,639
$
868,778
$
796,705
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
7,929
$
48
$
—
$
11,711
International
Equity
Index
Fund
2,064
(52)
222
8,364
LargeCap
S&P
500
Index
Account
4,254
298
13,135
26,385
MidCap
S&P
400
Index
Fund
823
4
2,695
5,836
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
185
—
—
—
SmallCap
S&P
600
Index
Fund
836
110
303
8,278
$
16,091
$
408
$
16,355
$
60,574
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Income
Account
December
31,
2020
See
accompanying
notes.
160
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
10.32%
International
Equity
Index
Fund
(a)
1,177,839
$
13,109
MidCap
S&P
400
Index
Fund
(a)
485,604
10,363
SmallCap
S&P
600
Index
Fund
(a)
367,712
9,910
$
33,382
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
89.71%
Bond
Market
Index
Account
(a)
18,629,461
208,836
LargeCap
S&P
500
Index
Account
(a)
3,710,322
81,405
$
290,241
TOTAL
INVESTMENT
COMPANIES
$
323,623
Total
Investments
$
323,623
Other
Assets
and
Liabilities
- (0.03)%
(88)
TOTAL
NET
ASSETS
-
100.00%
$
323,535
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
64.55%
Domestic
Equity
Funds
31.43%
International
Equity
Funds
4.05%
Other
Assets
and
Liabilities
(0.03)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
179,434
$
68,104
$
46,514
$
208,836
International
Equity
Index
Fund
11,502
4,604
4,095
13,109
LargeCap
S&P
500
Index
Account
71,571
31,172
30,555
81,405
MidCap
S&P
400
Index
Fund
8,691
4,787
4,287���
10,363
SmallCap
S&P
600
Index
Fund
8,768
4,669
5,172
9,910
$
279,966
$
113,336
$
90,623
$
323,623
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
4,945
$
211
$
—
$
7,601
International
Equity
Index
Fund
270
8
29
1,090
LargeCap
S&P
500
Index
Account
1,429
2,082
4,414
7,135
MidCap
S&P
400
Index
Fund
164
51
537
1,121
SmallCap
S&P
600
Index
Fund
168
(15)
60
1,660
$
6,976
$
2,337
$
5,040
$
18,607
Amounts
in
thousands.
Schedule
of
Investments
Diversified
International
Account
December
31,
2020
See
accompanying
notes.
161
INVESTMENT
COMPANIES
-
1
.35
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1
.35
%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.01%
(a),(b)
2,219,958
$
2,220
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
1,711,919
1,712
$
3,932
TOTAL
INVESTMENT
COMPANIES
$
3,932
COMMON
STOCKS
-
99
.48
%
Shares
Held
Value
(000's)
Airlines
-
0
.18
%
ANA
Holdings
Inc
24,400
$
539
Apparel
-
1
.78
%
Adidas
AG
(d)
4,141
1,507
LVMH
Moet
Hennessy
Louis
Vuitton
SE
5,901
3,694
$
5,201
Automobile
Manufacturers
-
5
.02
%
Bayerische
Motoren
Werke
AG
14,822
1,308
Eicher
Motors
Ltd
24,030
834
Ferrari
NV
9,112
2,113
Honda
Motor
Co
Ltd
57,000
1,608
Kia
Motors
Corp
(d)
22,088
1,273
Maruti
Suzuki
India
Ltd
10,869
1,140
Toyota
Motor
Corp
59,200
4,569
Volvo
AB
-
B
Shares
(d)
76,711
1,816
$
14,661
Automobile
Parts
&
Equipment
-
1
.02
%
Toyota
Industries
Corp
37,400
2,971
Banks
-
8
.51
%
Bank
Leumi
Le-Israel
BM
163,974
968
BNP
Paribas
SA
(d)
39,092
2,064
Canadian
Imperial
Bank
of
Commerce
(e)
15,200
1,298
Credicorp
Ltd
9,192
1,508
DBS
Group
Holdings
Ltd
148,800
2,820
DNB
ASA
(d)
92,415
1,811
Erste
Group
Bank
AG
43,928
1,338
Grupo
Financiero
Banorte
SAB
de
CV
(d)
174,759
963
HDFC
Bank
Ltd
ADR
(d)
15,362
1,110
ICICI
Bank
Ltd
ADR
(d)
98,798
1,468
Intesa
Sanpaolo
SpA
(d)
837,217
1,979
Kotak
Mahindra
Bank
Ltd
(d)
27,147
742
Mediobanca
Banca
di
Credito
Finanziario
SpA
(d)
210,904
1,952
PT
Bank
Central
Asia
Tbk
644,400
1,553
Toronto-Dominion
Bank/The
37,800
2,136
United
Overseas
Bank
Ltd
65,900
1,123
$
24,833
Beverages
-
1
.01
%
Carlsberg
AS
10,880
1,744
Heineken
NV
10,771
1,199
$
2,943
Biotechnology
-
0
.97
%
CSL
Ltd
12,896
2,818
Building
Materials
-
3
.19
%
Anhui
Conch
Cement
Co
Ltd
131,196
1,043
Beijing
Oriental
Yuhong
Waterproof
Technology
Co
Ltd
120,000
716
China
Lesso
Group
Holdings
Ltd
469,000
735
Cie
de
Saint-Gobain
(d)
38,667
1,778
CRH
PLC
76,129
3,238
HeidelbergCement
AG
24,326
1,811
$
9,321
Chemicals
-
2
.15
%
BASF
SE
27,771
2,195
Evonik
Industries
AG
30,352
992
Koninklijke
DSM
NV
7,989
1,374
Shin-Etsu
Chemical
Co
Ltd
9,800
1,720
$
6,281
Commercial
Services
-
2
.09
%
Adecco
Group
AG
12,526
834
Adyen
NV
(d),(f)
661
1,536
Amadeus
IT
Group
SA
14,747
1,088
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
Dai
Nippon
Printing
Co
Ltd
27,000
$
486
New
Oriental
Education
&
Technology
Group
Inc
ADR
(d)
8,223
1,528
TechnoPro
Holdings
Inc
7,400
615
$
6,087
Computers
-
2
.19
%
Capgemini
SE
11,324
1,761
Logitech
International
SA
28,360
2,754
Nomura
Research
Institute
Ltd
31,400
1,123
Obic
Co
Ltd
3,700
744
$
6,382
Consumer
Products
-
0
.43
%
Hindustan
Unilever
Ltd
38,019
1,248
Cosmetics
&
Personal
Care
-
0
.34
%
Unilever
PLC
16,530
991
Distribution
&
Wholesale
-
2
.25
%
Bunzl
PLC
38,347
1,280
Ferguson
PLC
19,827
2,409
ITOCHU
Corp
100,300
2,885
$
6,574
Diversified
Financial
Services
-
2
.03
%
B3
SA
-
Brasil
Bolsa
Balcao
88,800
1,060
Housing
Development
Finance
Corp
Ltd
47,168
1,652
KB
Financial
Group
Inc
27,651
1,098
London
Stock
Exchange
Group
PLC
8,309
1,026
SBI
Holdings
Inc/Japan
24,800
590
Tisco
Financial
Group
PCL
164,300
485
$
5,911
Electric
-
2
.62
%
Enel
SpA
306,814
3,121
Iberdrola
SA
239,865
3,447
Northland
Power
Inc
29,900
1,073
$
7,641
Electrical
Components
&
Equipment
-
0
.56
%
Delta
Electronics
Inc
173,000
1,622
Electronics
-
1
.36
%
Halma
PLC
27,145
909
Hoya
Corp
22,196
3,074
$
3,983
Energy
-
Alternate
Sources
-
1
.03
%
Vestas
Wind
Systems
A/S
12,772
3,017
Engineering
&
Construction
-
0
.63
%
Vinci
SA
18,411
1,834
Entertainment
-
0
.45
%
Flutter
Entertainment
PLC
(d)
6,401
1,302
Food
-
2
.70
%
Dino
Polska
SA
(d),(f)
10,310
799
Nestle
India
Ltd
3,021
761
Nestle
SA
46,541
5,502
Seven
&
i
Holdings
Co
Ltd
22,700
804
$
7,866
Hand
&
Machine
Tools
-
0
.79
%
Techtronic
Industries
Co
Ltd
161,000
2,301
Healthcare
-
Products
-
1
.54
%
Ambu
A/S
(e)
19,217
826
GN
Store
Nord
AS
8,486
676
Koninklijke
Philips
NV
(d)
41,989
2,262
Sartorius
Stedim
Biotech
2,081
742
$
4,506
Healthcare
-
Services
-
1
.81
%
Fresenius
SE
&
Co
KGaA
19,718
912
ICON
PLC
(d)
9,965
1,943
Lonza
Group
AG
3,757
2,420
$
5,275
Schedule
of
Investments
Diversified
International
Account
December
31,
2020
See
accompanying
notes.
162
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Home
Builders
-
1
.39
%
Daiwa
House
Industry
Co
Ltd
25,300
$
752
Persimmon
PLC
41,988
1,585
Taylor
Wimpey
PLC
(d)
755,038
1,708
$
4,045
Home
Furnishings
-
1
.95
%
Haier
Smart
Home
Co
Ltd
(d)
313,600
1,136
Howden
Joinery
Group
PLC
(d)
125,145
1,179
Sony
Corp
33,500
3,376
$
5,691
Insurance
-
6
.16
%
AIA
Group
Ltd
359,000
4,375
ASR
Nederland
NV
22,513
901
AXA
SA
101,616
2,437
Fairfax
Financial
Holdings
Ltd
2,400
818
Hannover
Rueck
SE
9,136
1,456
ICICI
Lombard
General
Insurance
Co
Ltd
(d),(f)
29,369
612
Legal
&
General
Group
PLC
473,389
1,725
NN
Group
NV
23,465
1,014
Prudential
PLC
73,888
1,359
Sompo
Holdings
Inc
30,100
1,220
Tokio
Marine
Holdings
Inc
39,900
2,056
$
17,973
Internet
-
4
.42
%
Alibaba
Group
Holding
Ltd
(d)
78,100
2,272
MercadoLibre
Inc
(d)
547
916
Naspers
Ltd
5,028
1,030
NCSoft
Corp
(d)
1,123
964
Shopify
Inc
(d)
1,896
2,146
Tencent
Holdings
Ltd
77,493
5,576
$
12,904
Machinery
-
Construction
&
Mining
-
0
.65
%
Siemens
Energy
AG
(d)
51,383
1,897
Machinery
-
Diversified
-
2
.32
%
Daifuku
Co
Ltd
10,300
1,275
Ebara
Corp
36,200
1,185
GEA
Group
AG
22,573
807
Keyence
Corp
4,000
2,250
Miura
Co
Ltd
22,400
1,250
$
6,767
Metal
Fabrication
&
Hardware
-
0
.91
%
SKF
AB
101,791
2,649
Mining
-
2
.41
%
Anglo
American
PLC
43,080
1,423
Antofagasta
PLC
61,105
1,199
Franco-Nevada
Corp
9,831
1,232
Rio
Tinto
Ltd
36,154
3,179
$
7,033
Miscellaneous
Manufacturers
-
2
.08
%
JSR
Corp
42,200
1,177
Pidilite
Industries
Ltd
30,656
742
Siemens
AG
19,914
2,868
Trelleborg
AB
(d)
57,358
1,274
$
6,061
Oil
&
Gas
-
3
.41
%
BP
PLC
462,302
1,595
LUKOIL
PJSC
ADR
11,359
772
Neste
Oyj
52,863
3,838
Parkland
Corp/Canada
20,600
654
Reliance
Industries
Ltd
63,309
1,723
Suncor
Energy
Inc
82,100
1,377
$
9,959
Pharmaceuticals
-
3
.83
%
AstraZeneca
PLC
27,661
2,758
Novo
Nordisk
A/S
39,336
2,744
Recordati
Industria
Chimica
e
Farmaceutica
SpA
10,641
592
Roche
Holding
AG
14,591
5,082
$
11,176
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pipelines
-
0
.99
%
Pembina
Pipeline
Corp
58,500
$
1,383
TC
Energy
Corp
36,900
1,500
$
2,883
Private
Equity
-
2
.46
%
3i
Group
PLC
204,712
3,238
Brookfield
Asset
Management
Inc
69,769
2,884
Intermediate
Capital
Group
PLC
44,483
1,047
$
7,169
Real
Estate
-
0
.77
%
Sun
Hung
Kai
Properties
Ltd
54,500
697
Tokyo
Tatemono
Co
Ltd
37,900
520
Vonovia
SE
14,058
1,027
$
2,244
Retail
-
3
.97
%
Alimentation
Couche-Tard
Inc
83,546
2,847
Home
Product
Center
PCL
1,333,500
607
JD
Sports
Fashion
PLC
(d)
109,002
1,281
Li
Ning
Co
Ltd
330,000
2,271
Magazine
Luiza
SA
217,100
1,043
Pan
Pacific
International
Holdings
Corp
71,500
1,652
Wal-Mart
de
Mexico
SAB
de
CV
668,122
1,877
$
11,578
Semiconductors
-
8
.04
%
ASM
International
NV
3,600
786
ASML
Holding
NV
9,901
4,794
MediaTek
Inc
54,000
1,440
Samsung
Electronics
Co
Ltd
110,641
8,262
Taiwan
Semiconductor
Manufacturing
Co
Ltd
432,140
8,175
$
23,457
Software
-
1
.64
%
Capcom
Co
Ltd
16,000
1,038
Dassault
Systemes
SE
6,064
1,230
DeNA
Co
Ltd
28,400
505
Mixi
Inc
20,000
496
Nemetschek
SE
7,934
590
NetEase
Inc
48,300
923
$
4,782
Telecommunications
-
3
.19
%
Deutsche
Telekom
AG
76,740
1,401
Nice
Ltd
ADR
(d)
5,692
1,614
Nippon
Telegraph
&
Telephone
Corp
92,900
2,384
SoftBank
Group
Corp
41,000
3,183
Telefonica
Brasil
SA
80,500
720
$
9,302
Toys,
Games
&
Hobbies
-
1
.30
%
Nintendo
Co
Ltd
5,900
3,787
Transportation
-
0
.94
%
Canadian
National
Railway
Co
24,928
2,741
TOTAL
COMMON
STOCKS
$
290,206
Total
Investments
$
294,138
Other
Assets
and
Liabilities
- (0.83)%
(
2,412
)
TOTAL
NET
ASSETS
-
100.00%
$
291,726
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$2,220
or
0.76%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$2,947
or
1.01%
of
net
assets.
Schedule
of
Investments
Diversified
International
Account
December
31,
2020
See
accompanying
notes.
163
Portfolio
Summary (unaudited)
Location
Percent
Japan
17
.10
%
United
Kingdom
8
.75
%
Canada
7
.56
%
Germany
6
.43
%
Switzerland
5
.69
%
China
5
.55
%
France
5
.31
%
Netherlands
4
.76
%
India
4
.12
%
Korea,
Republic
Of
3
.98
%
Taiwan
3
.86
%
Italy
3
.34
%
Denmark
3
.08
%
Hong
Kong
2
.53
%
Ireland
2
.23
%
Australia
2
.06
%
Sweden
1
.97
%
Spain
1
.55
%
Singapore
1
.36
%
United
States
1
.35
%
Finland
1
.32
%
Mexico
0
.97
%
Brazil
0
.97
%
Israel
0
.88
%
Norway
0
.62
%
Indonesia
0
.53
%
Peru
0
.52
%
Austria
0
.46
%
Chile
0
.41
%
Thailand
0
.38
%
South
Africa
0
.35
%
Argentina
0
.31
%
Poland
0
.27
%
Russian
Federation
0
.26
%
Other
Assets
and
Liabilities
(
0
.83
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
2,370
$
68,000
$
68,658
$
1,712
$
2,370
$
68,000
$
68,658
$
1,712
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
8
$
—
$
—
$
—
$
8
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Equity
Income
Account
December
31,
2020
See
accompanying
notes.
164
INVESTMENT
COMPANIES
-
2
.35
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
2
.35
%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.01%
(a),(b)
2,788,419
$
2,788
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
15,730,042
15,730
$
18,518
TOTAL
INVESTMENT
COMPANIES
$
18,518
COMMON
STOCKS
-
98
.34
%
Shares
Held
Value
(000's)
Apparel
-
1
.86
%
NIKE
Inc
104,036
$
14,718
Automobile
Manufacturers
-
2
.36
%
PACCAR
Inc
216,158
18,650
Automobile
Parts
&
Equipment
-
2
.20
%
Magna
International
Inc
245,268
17,365
Banks
-
9
.28
%
Bank
of
America
Corp
218,145
6,612
First
Republic
Bank/CA
123,948
18,212
JPMorgan
Chase
&
Co
170,882
21,714
Morgan
Stanley
166,061
11,380
PNC
Financial
Services
Group
Inc/The
103,398
15,406
$
73,324
Beverages
-
1
.88
%
Coca-Cola
Co/The
270,195
14,817
Biotechnology
-
1
.66
%
Corteva
Inc
338,686
13,114
Chemicals
-
2
.70
%
Air
Products
and
Chemicals
Inc
39,787
10,871
PPG
Industries
Inc
72,718
10,487
$
21,358
Computers
-
1
.76
%
Apple
Inc
104,490
13,865
Diversified
Financial
Services
-
5
.16
%
BlackRock
Inc
32,361
23,350
Discover
Financial
Services
192,438
17,421
$
40,771
Electric
-
5
.42
%
Eversource
Energy
99,530
8,610
NextEra
Energy
Inc
156,812
12,098
Sempra
Energy
24,343
3,101
WEC
Energy
Group
Inc
106,374
9,790
Xcel
Energy
Inc
137,706
9,181
$
42,780
Electronics
-
0
.96
%
Honeywell
International
Inc
35,826
7,620
Food
-
3
.18
%
Hormel
Foods
Corp
306,591
14,290
Tyson
Foods
Inc
168,007
10,827
$
25,117
Healthcare
-
Products
-
4
.64
%
Abbott
Laboratories
179,849
19,692
Medtronic
PLC
144,786
16,960
$
36,652
Insurance
-
4
.43
%
Allstate
Corp/The
24,252
2,666
Chubb
Ltd
88,811
13,670
Fidelity
National
Financial
Inc
272,393
10,648
Swiss
Re
AG
ADR
339,058
8,032
$
35,016
Machinery
-
Construction
&
Mining
-
0
.24
%
Caterpillar
Inc
10,311
1,877
Machinery
-
Diversified
-
3
.49
%
Deere
&
Co
102,323
27,530
Media
-
1
.99
%
Cable
One
Inc
3,854
8,586
Comcast
Corp
-
Class
A
136,762
7,166
$
15,752
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Miscellaneous
Manufacturers
-
4
.27
%
3M
Co
15,676
$
2,740
Parker-Hannifin
Corp
82,065
22,355
Trane
Technologies
PLC
59,237
8,599
$
33,694
Oil
&
Gas
-
3
.42
%
Chevron
Corp
106,527
8,996
EOG
Resources
Inc
165,110
8,234
Marathon
Petroleum
Corp
235,887
9,757
$
26,987
Pharmaceuticals
-
8
.40
%
Becton
Dickinson
and
Co
50,662
12,677
Merck
&
Co
Inc
192,687
15,762
Novartis
AG
ADR
123,800
11,690
Pfizer
Inc
249,098
9,169
Roche
Holding
AG
ADR
388,993
17,054
$
66,352
Pipelines
-
1
.18
%
Enterprise
Products
Partners
LP
475,720
9,319
Private
Equity
-
2
.32
%
KKR
&
Co
Inc
453,267
18,353
REITs
-
4
.22
%
Alexandria
Real
Estate
Equities
Inc
75,077
13,380
Digital
Realty
Trust
Inc
91,901
12,821
Realty
Income
Corp
115,157
7,160
$
33,361
Retail
-
4
.53
%
Costco
Wholesale
Corp
54,563
20,558
Starbucks
Corp
98,438
10,531
Target
Corp
26,384
4,658
$
35,747
Semiconductors
-
4
.19
%
Microchip
Technology
Inc
114,846
15,861
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
157,741
17,200
$
33,061
Software
-
4
.31
%
Activision
Blizzard
Inc
72,040
6,689
Fidelity
National
Information
Services
Inc
66,063
9,345
Microsoft
Corp
43,758
9,733
SAP
SE
ADR
(e)
63,456
8,274
$
34,041
Telecommunications
-
4
.54
%
BCE
Inc
392,028
16,779
Verizon
Communications
Inc
324,565
19,068
$
35,847
Toys,
Games
&
Hobbies
-
1
.61
%
Hasbro
Inc
136,225
12,742
Transportation
-
2
.14
%
Union
Pacific
Corp
81,249
16,918
TOTAL
COMMON
STOCKS
$
776,748
Total
Investments
$
795,266
Other
Assets
and
Liabilities
- (0.69)%
(
5,423
)
TOTAL
NET
ASSETS
-
100.00%
$
789,843
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$2,788
or
0.35%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Schedule
of
Investments
Equity
Income
Account
December
31,
2020
See
accompanying
notes.
165
Portfolio
Summary (unaudited)
Sector
Percent
Financial
25
.41
%
Consumer,
Non-cyclical
19
.76
%
Consumer,
Cyclical
12
.56
%
Industrial
11
.10
%
Technology
10
.26
%
Communications
6
.53
%
Utilities
5
.42
%
Energy
4
.60
%
Basic
Materials
2
.70
%
Money
Market
Funds
2
.35
%
Other
Assets
and
Liabilities
(
0
.69
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
14,848
$
235,168
$
234,286
$
15,730
$
14,848
$
235,168
$
234,286
$
15,730
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
58
$
—
$
—
$
—
$
58
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2020
See
accompanying
notes.
166
INVESTMENT
COMPANIES
-
7.61%
Shares
Held
Value
(000's)
Money
Market
Funds
-
7.61%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
17,351,360
$
17,351
TOTAL
INVESTMENT
COMPANIES
$
17,351
BONDS
-
23.75%
Principal
Amount
(000's)
Value
(000's)
Automobile
Asset
Backed
Securities
-
2.69%
AmeriCredit
Automobile
Receivables
Trust
2020-3
0.42%,
03/18/2024
$
1,425
$
1,427
Ford
Credit
Auto
Owner
Trust
2020-C
0.25%,
09/15/2023
1,435
1,435
Santander
Drive
Auto
Receivables
Trust
2020-4
0.42%,
09/15/2023
1,425
1,426
Santander
Retail
Auto
Lease
Trust
2020-B
0.42%,
11/20/2023
(d)
1,845
1,848
$
6,136
Commercial
Mortgage
Backed
Securities
-
4.32%
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
2.37%,
05/25/2022
1,100
1,125
3.30%,
04/25/2023
(e)
1,300
1,382
3.46%,
08/25/2023
(e)
1,200
1,288
3.53%,
10/25/2023
(e)
870
940
Ginnie
Mae
0.54%,
04/16/2047
(e),(f)
8,708
185
0.57%,
02/16/2055
(e),(f)
15,101
168
0.57%,
03/16/2060
(e),(f)
4,053
209
0.63%,
11/16/2052
(e),(f)
11,119
273
0.68%,
09/16/2053
(e),(f)
7,563
175
2.60%,
05/16/2059
546
577
2.60%,
03/16/2060
901
951
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2011-C5
5.42%,
08/15/2046
(d),(e)
2,000
2,016
Wells
Fargo
Commercial
Mortgage
Trust
2014-LC16
4.46%,
08/15/2050
600
558
$
9,847
Credit
Card
Asset
Backed
Securities
-
4.17%
American
Express
Credit
Account
Master
Trust
0.40%,
04/15/2024
3,500
3,504
1.00
x
1
Month
USD
LIBOR
+
0.24%
2.99%,
12/15/2023
1,597
1,613
Barclays
Dryrock
Issuance
Trust
0.49%,
07/15/2024
1,830
1,834
1.00
x
1
Month
USD
LIBOR
+
0.33%
Chase
Issuance
Trust
0.36%,
04/17/2023
2,558
2,559
1.00
x
1
Month
USD
LIBOR
+
0.20%
$
9,510
Mortgage
Backed
Securities
-
11.80%
EverBank
Mortgage
Loan
Trust
18-1
3.50%,
02/25/2048
(d),(e)
325
331
Fannie
Mae
Grantor
Trust
2005-T1
0.50%,
05/25/2035
165
165
1.00
x
1
Month
USD
LIBOR
+
0.35%
Fannie
Mae
Interest
Strip
3.50%,
12/25/2043
(e),(f)
1,136
170
Fannie
Mae
REMICS
2.33%,
06/25/2045
(f)
2,848
162
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.00%
3.00%,
10/25/2040
(f)
2,607
103
3.00%,
04/25/2042
476
485
3.00%,
08/25/2042
200
203
3.00%,
02/25/2043
335
348
3.00%,
03/25/2046
413
427
3.00%,
05/25/2048
148
157
3.50%,
01/25/2040
(f)
1,229
50
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Fannie
Mae
REMICS
(continued)
3.50%,
11/25/2042
$
2,500
$
2,680
4.00%,
12/25/2039
(f)
547
19
4.50%,
04/25/2045
(f)
2,315
393
7.00%,
04/25/2032
93
109
Freddie
Mac
REMICS
1.50%,
04/15/2028
660
671
2.49%,
05/15/2038
(f)
2,4
84
13
2
1.00
x
12
Month
Treasury
Average
Index
+
0.00%
2.50%,
11/15/2032
698
740
2.50%,
02/15/2043
728
771
3.00%,
11/15/2030
(f)
913
18
3.00%,
11/15/2035
950
982
3.00%,
06/15/2040
233
236
3.00%,
10/15/2041
503
511
3.00%,
04/15/2046
210
227
3.50%,
03/15/2029
279
288
3.50%,
08/15/2040
(f)
1,349
70
3.50%,
05/15/2043
565
581
3.50%,
09/15/2043
1,200
1,214
4.00%,
05/15/2039
2,958
3,031
Ginnie
Mae
2.50%,
10/20/2050
(f)
3,116
318
3.00%,
07/20/2050
(f)
1,996
226
3.00%,
08/20/2050
(f)
4,327
487
3.00%,
09/20/2050
(f)
3,449
396
3.00%,
09/20/2050
(f)
4,079
505
3.50%,
05/20/2039
16
16
3.50%,
10/20/2044
(f)
3,985
406
3.50%,
11/20/2045
930
977
3.50%,
10/20/2049
(f)
3,392
414
4.00%,
02/20/2044
(f)
2,254
171
4.00%,
04/20/2044
(f)
1,199
96
4.00%,
01/20/2046
(f)
1,169
89
5.95%,
07/16/2043
(f)
2,586
459
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.95%,
06/20/2046
(f)
556
113
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
5.99%,
12/20/2043
(f)
1,207
290
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
6.05%,
08/20/2042
(f)
960
154
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.05%,
09/20/2047
(f)
637
122
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.10%,
06/20/2044
(f)
1,411
178
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
JP
Morgan
Mortgage
Trust
2016-4
3.50%,
10/25/2046
(d),(e)
401
408
JP
Morgan
Mortgage
Trust
2017-3
3.79%,
08/25/2047
(d),(e)
548
570
JP
Morgan
Mortgage
Trust
2018-8
4.00%,
01/25/2049
(d),(e)
290
297
JP
Morgan
Mortgage
Trust
2019-9
3.50%,
05/25/2050
(d),(e)
1,200
1,228
New
Residential
Mortgage
Loan
Trust
2014-1
5.00%,
01/25/2054
(d),(e)
1,301
1,408
New
Residential
Mortgage
Loan
Trust
2015-2
5.52%,
08/25/2055
(d),(e)
999
1,085
Sequoia
Mortgage
Trust
2013-2
3.65%,
02/25/2043
(e)
495
511
Sequoia
Mortgage
Trust
2017-3
3.79%,
04/25/2047
(d),(e)
455
478
Sequoia
Mortgage
Trust
2018-5
3.50%,
05/25/2048
(d),(e)
221
225
$
26,90
1
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2020
See
accompanying
notes.
167
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Other
Asset
Backed
Securities
-
0.77%
Chase
Funding
Trust
Series
2004-1
0.61%,
12/25/2033
$
91
$
86
1.00
x
1
Month
USD
LIBOR
+
0.46%
CNH
Equipment
Trust
2016-C
1.76%,
09/15/2023
255
256
Towd
Point
Mortgage
Trust
4.25%,
10/25/2053
(d),(e)
550
600
Verizon
Owner
Trust
2018-A
3.23%,
04/20/2023
810
820
$
1,762
TOTAL
BONDS
$
54,15
6
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
92.10%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
7.79%
2.00%,
10/01/2031
$
519
$
545
2.48%,
09/01/2032
10
10
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.23%
2.50%,
02/01/2028
450
475
3.00%,
02/01/2027
155
164
3.00%,
01/01/2031
404
434
3.00%,
01/01/2033
739
798
3.00%,
03/01/2037
297
312
3.00%,
08/01/2042
534
568
3.00%,
10/01/2042
392
423
3.00%,
10/01/2042
770
821
3.00%,
05/01/2043
538
585
3.00%,
10/01/2046
670
732
3.50%,
02/01/2032
773
824
3.50%,
04/01/2042
1,046
1,134
3.50%,
05/01/2042
459
502
3.50%,
07/01/2042
1,596
1,733
3.50%,
02/01/2044
631
690
4.00%,
07/01/2042
619
700
4.00%,
01/01/2043
770
849
4.00%,
06/01/2043
872
964
4.00%,
10/01/2045
912
1,024
4.00%,
01/01/2048
978
1,102
4.50%,
11/01/2043
656
753
5.00%,
10/01/2025
71
79
5.00%,
02/01/2033
103
119
5.00%,
06/01/2033
131
148
5.00%,
01/01/2034
348
403
5.00%,
07/01/2035
7
9
5.00%,
07/01/2035
17
20
5.00%,
07/01/2035
71
82
5.00%,
10/01/2035
30
35
5.50%,
03/01/2033
79
92
5.50%,
04/01/2038
3
4
5.50%,
05/01/2038
19
22
6.00%,
12/01/2023
1
1
6.00%,
05/01/2031
9
11
6.00%,
12/01/2031
9
10
6.00%,
11/01/2033
36
41
6.00%,
09/01/2034
36
43
6.00%,
02/01/2035
24
28
6.00%,
10/01/2036
34
41
6.00%,
03/01/2037
30
34
6.00%,
01/01/2038
63
74
6.00%,
01/01/2038
7
8
6.00%,
04/01/2038
20
22
6.50%,
12/01/2021
2
2
6.50%,
04/01/2022
3
4
6.50%,
05/01/2022
2
2
6.50%,
05/01/2023
4
4
6.50%,
04/01/2024
1
1
6.50%,
04/01/2026
1
2
6.50%,
05/01/2026
2
2
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
6.50%,
05/01/2026
$
1
$
1
6.50%,
01/01/2028
2
3
6.50%,
03/01/2028
2
2
6.50%,
10/01/2028
11
12
6.50%,
11/01/2028
2
3
6.50%,
12/01/2028
5
6
6.50%,
03/01/2029
2
3
6.50%,
07/01/2031
17
19
6.50%,
08/01/2031
4
5
6.50%,
10/01/2031
7
8
6.50%,
10/01/2031
6
7
6.50%,
12/01/2031
9
11
6.50%,
02/01/2032
10
11
6.50%,
05/01/2032
24
28
6.50%,
04/01/2035
5
6
7.00%,
09/01/2023
3
3
7.00%,
12/01/2023
1
1
7.00%,
01/01/2024
1
1
7.00%,
09/01/2027
2
3
7.00%,
01/01/2028
19
21
7.00%,
04/01/2028
11
12
7.00%,
05/01/2028
2
2
7.00%,
10/01/2031
4
5
7.00%,
10/01/2031
9
10
7.00%,
04/01/2032
34
40
7.50%,
10/01/2030
6
7
7.50%,
02/01/2031
2
2
7.50%,
02/01/2031
6
7
8.00%,
10/01/2030
13
15
8.50%,
07/01/2029
15
16
$
17,755
Federal
National
Mortgage
Association
(FNMA)
-
0.50%
2.07%,
12/01/2033
51
51
1.00
x
12
Month
USD
LIBOR
+
1.65%
3.00%,
04/01/2043
756
815
3.64%,
12/01/2032
11
11
1.00
x
12
Month
USD
LIBOR
+
1.64%
5.50%,
05/01/2033
13
13
6.00%,
05/01/2037
156
177
6.50%,
08/01/2025
13
14
6.50%,
11/01/2032
13
14
7.00%,
08/01/2028
11
12
7.00%,
12/01/2028
9
10
8.00%,
05/01/2027
5
5
8.50%,
10/01/2027
21
22
$
1,144
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
47.21%
2.00%,
02/01/2032
319
335
2.00%,
11/01/2035
1,939
2,028
2.00%,
11/01/2035
1,385
1,448
2.00%,
01/01/2036
(g)
3,750
3,920
2.00%,
10/01/2050
992
1,033
2.00%,
01/01/2051
(g)
13,225
13,738
2.50%,
06/01/2027
693
729
2.50%,
08/01/2028
516
546
2.50%,
12/01/2031
636
678
2.50%,
09/01/2032
432
461
2.50%,
08/01/2035
1,866
1,968
2.50%,
10/01/2035
1,952
2,048
2.50%,
04/01/2050
1,837
1,939
2.50%,
06/01/2050
1,691
1,789
2.50%,
01/01/2051
(g)
14,985
15,796
3.00%,
05/01/2029
590
632
3.00%,
08/01/2031
1,149
1,244
3.00%,
12/01/2034
1,143
1,199
3.00%,
10/01/2036
484
528
3.00%,
10/01/2042
1,171
1,278
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2020
See
accompanying
notes.
168
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.00%,
10/01/2046
$
819
$
887
3.00%,
08/01/2049
495
519
3.00%,
10/01/2049
1,348
1,415
3.00%,
12/01/2049
1,204
1,265
3.00%,
01/01/2050
1,670
1,753
3.00%,
02/01/2050
1,663
1,746
3.00%,
07/01/2050
2,055
2,156
3.00%,
09/01/2050
1,990
2,110
3.50%,
08/01/2031
569
624
3.50%,
02/01/2033
916
1,007
3.50%,
09/01/2033
1,254
1,375
3.50%,
06/01/2039
429
465
3.50%,
02/01/2042
904
1,003
3.50%,
11/01/2042
977
1,073
3.50%,
12/01/2042
1,100
1,215
3.50%,
02/01/2043
399
442
3.50%,
03/01/2045
1,055
1,153
3.50%,
03/01/2045
482
533
3.50%,
06/01/2045
766
850
3.50%,
09/01/2045
672
738
3.50%,
01/01/2046
543
602
3.50%,
03/01/2046
390
433
3.50%,
04/01/2046
822
912
3.50%,
03/01/2047
816
905
3.50%,
11/01/2048
1,698
1,883
3.50%,
05/01/2049
764
838
4.00%,
01/01/2034
374
409
4.00%,
10/01/2037
608
656
4.00%,
02/01/2041
1,030
1,156
4.00%,
02/01/2042
637
715
4.00%,
08/01/2043
383
434
4.00%,
10/01/2043
254
278
4.00%,
08/01/2044
426
482
4.00%,
10/01/2044
1,203
1,319
4.00%,
11/01/2044
408
462
4.00%,
12/01/2044
689
778
4.00%,
02/01/2045
668
755
4.00%,
08/01/2045
652
737
4.00%,
07/01/2046
576
649
4.00%,
08/01/2046
1,197
1,321
4.00%,
07/01/2047
880
992
4.00%,
10/01/2047
740
829
4.00%,
12/01/2047
679
766
4.50%,
08/01/2039
1,210
1,386
4.50%,
03/01/2042
314
361
4.50%,
09/01/2043
1,269
1,456
4.50%,
10/01/2043
705
809
4.50%,
11/01/2043
810
930
4.50%,
09/01/2045
547
619
4.50%,
10/01/2045
743
852
4.50%,
11/01/2045
1,057
1,197
4.50%,
08/01/2048
701
795
4.50%,
12/01/2048
924
1,035
5.00%,
05/01/2033
882
1,018
5.00%,
04/01/2035
86
100
5.00%,
04/01/2035
69
80
5.00%,
07/01/2035
4
5
5.00%,
02/01/2038
297
345
5.00%,
02/01/2040
972
1,141
5.00%,
07/01/2041
784
914
5.50%,
05/01/2024
3
3
5.50%,
06/01/2033
46
54
5.50%,
02/01/2037
3
3
5.50%,
03/01/2038
71
83
6.00%,
06/01/2022
3
4
6.00%,
11/01/2028
11
12
6.00%,
12/01/2031
5
5
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
6.00%,
01/01/2033
$
38
$
45
6.00%,
07/01/2037
94
111
6.00%,
11/01/2037
3
3
6.00%,
12/01/2037
7
8
6.00%,
03/01/2038
52
62
6.50%,
05/01/2024
3
3
6.50%,
09/01/2024
4
5
6.50%,
07/01/2025
8
9
6.50%,
02/01/2026
2
3
6.50%,
05/01/2026
2
2
6.50%,
06/01/2026
1
1
6.50%,
07/01/2028
8
9
6.50%,
03/01/2029
4
5
6.50%,
04/01/2029
4
4
6.50%,
06/01/2031
9
10
6.50%,
01/01/2032
3
4
6.50%,
04/01/2032
3
3
6.50%,
08/01/2032
8
9
6.50%,
02/01/2033
8
9
6.50%,
12/01/2036
31
37
6.50%,
07/01/2037
22
26
6.50%,
07/01/2037
10
12
6.50%,
02/01/2038
26
30
7.00%,
10/01/2029
8
9
7.00%,
05/01/2031
4
4
7.00%,
11/01/2031
16
18
8.00%,
06/01/2030
1
2
$
107,627
Government
National
Mortgage
Association
(GNMA)
-
20.97%
2.00%,
01/01/2051
7,200
7,529
2.50%,
01/01/2051
13,500
14,291
3.00%,
11/15/2042
620
653
3.00%,
12/15/2042
1,222
1,289
3.00%,
02/15/2043
1,154
1,266
3.00%,
05/15/2043
1,488
1,625
3.00%,
07/20/2045
1,024
1,092
3.00%,
07/20/2046
579
617
3.00%,
08/20/2046
1,268
1,351
3.00%,
09/20/2046
1,550
1,652
3.00%,
12/20/2046
761
811
3.00%,
02/20/2047
922
982
3.00%,
08/20/2047
614
651
3.50%,
01/15/2043
910
1,010
3.50%,
05/15/2043
997
1,106
3.50%,
06/20/2043
609
685
3.50%,
04/20/2045
500
556
3.50%,
06/20/2046
83
92
3.50%,
02/20/2047
698
784
3.50%,
04/20/2047
1,129
1,211
3.50%,
05/20/2047
787
854
3.50%,
11/20/2047
592
637
3.50%,
02/20/2048
1,285
1,379
4.00%,
08/15/2041
695
780
4.00%,
07/20/2047
683
737
4.00%,
01/20/2048
2,719
2,996
4.50%,
07/15/2040
375
423
5.00%,
09/15/2033
4
4
5.00%,
02/15/2034
209
240
5.00%,
09/15/2039
26
30
5.50%,
11/15/2033
20
23
5.50%,
05/20/2035
89
105
6.00%,
04/20/2026
3
3
6.00%,
05/20/2026
2
2
6.00%,
03/20/2028
2
2
6.00%,
06/20/2028
10
12
6.00%,
07/20/2028
5
6
6.00%,
02/20/2029
5
6
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2020
See
accompanying
notes.
169
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
6.00%,
03/20/2029
$
10
$
12
6.00%,
07/20/2029
11
12
6.00%,
07/20/2033
83
97
6.50%,
12/20/2025
5
5
6.50%,
02/20/2026
3
4
6.50%,
03/20/2031
7
9
6.50%,
04/20/2031
8
9
7.00%,
01/15/2028
1
1
7.00%,
01/15/2028
1
1
7.00%,
01/15/2028
3
4
7.00%,
01/15/2028
2
2
7.00%,
01/15/2028
1
1
7.00%,
03/15/2028
49
51
7.00%,
05/15/2028
4
4
7.00%,
01/15/2029
10
11
7.00%,
03/15/2029
3
3
7.00%,
05/15/2031
6
7
7.00%,
09/15/2031
22
26
7.00%,
06/15/2032
52
58
7.50%,
04/15/2023
3
3
7.50%,
09/15/2023
1
1
7.50%,
10/15/2023
2
2
7.50%,
11/15/2023
2
2
8.00%,
07/15/2026
1
1
8.00%,
08/15/2026
1
2
8.00%,
01/15/2027
1
1
$
47,821
U.S.
Treasury
-
3.44%
2.13%,
12/31/2022
2,400
2,496
3.13%,
05/15/2021
2,500
2,527
4.50%,
02/15/2036
1,000
1,468
5.25%,
11/15/2028
1,000
1,348
$
7,839
U.S.
Treasury
Bill
-
12.19%
0.05%,
01/14/2021
(h)
9,500
9,500
0.07%,
01/07/2021
(h)
5,500
5,500
0.08%,
01/05/2021
(h)
2,300
2,300
0.08%,
02/16/2021
(h)
10,500
10,499
$
27,799
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
209,985
Total
Investments
$
281,49
2
Other
Assets
and
Liabilities
- (23.46)%
(53,49
6
)
TOTAL
NET
ASSETS
-
100.00%
$
227,996
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
(d)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$10,494
or
4.60%
of
net
assets.
(e)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions. These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(f)
Security
is
an
Interest
Only
Strip.
(g)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction.
See
accompanying
notes
for
additional
information.
(h)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Portfolio
Summary (unaudited)
Sector
Percent
Mortgage
Securities
92.59%
Government
15.63%
Asset
Backed
Securities
7.63%
Money
Market
Funds
7.61%
Other
Assets
and
Liabilities
(23.46)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
6,646
$
169,121
$
158,416
$
17,351
$
6,646
$
169,121
$
158,416
$
17,351
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
29
$
—
$
—
$
—
$
29
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
10
Year
Note;
March
2021
Short
104
$
14,360
$
—
US
Long
Bond;
March
2021
Short
8
1,386
18
Total
$
18
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
International
Emerging
Markets
Account
December
31,
2020
See
accompanying
notes.
170
INVESTMENT
COMPANIES
-
0.86%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.86%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
804,787
$
805
TOTAL
INVESTMENT
COMPANIES
$
805
COMMON
STOCKS
-
98.36%
Shares
Held
Value
(000's)
Agriculture
-
0.30%
SLC
Agricola
SA
53,700
$
284
Automobile
Manufacturers
-
3.55%
Ashok
Leyland
Ltd
421,535
552
Eicher
Motors
Ltd
11,161
387
Hyundai
Motor
Co
3,988
707
Kia
Motors
Corp
(b)
16,354
942
Maruti
Suzuki
India
Ltd
7,053
740
$
3,328
Automobile
Parts
&
Equipment
-
0.65%
Fuyao
Glass
Industry
Group
Co
Ltd
(d)
54,400
299
Weichai
Power
Co
Ltd
152,000
306
$
605
Banks
-
8.55%
Bank
Rakyat
Indonesia
Persero
Tbk
PT
1,494,200
444
China
Merchants
Bank
Co
Ltd
86,000
544
Credicorp
Ltd
4,589
753
Grupo
Financiero
Banorte
SAB
de
CV
(b)
154,900
854
HDFC
Bank
Ltd
(b)
46,721
920
ICICI
Bank
Ltd
(b)
103,337
760
Kotak
Mahindra
Bank
Ltd
(b)
17,760
485
PT
Bank
Central
Asia
Tbk
520,500
1,255
Regional
SAB
de
CV
(b)
82,500
382
Sberbank
of
Russia
PJSC
ADR
87,637
1,267
TCS
Group
Holding
PLC
11,048
363
$
8,027
Beverages
-
2.38%
Arca
Continental
SAB
de
CV
60,000
287
Kweichow
Moutai
Co
Ltd
2,900
891
Thai
Beverage
PCL
1,064,200
593
Tsingtao
Brewery
Co
Ltd
44,000
461
$
2,232
Building
Materials
-
3.44%
Amber
Enterprises
India
Ltd
12,920
417
Anhui
Conch
Cement
Co
Ltd
100,695
800
Beijing
Oriental
Yuhong
Waterproof
Technology
Co
Ltd
150,771
900
China
Lesso
Group
Holdings
Ltd
374,000
586
China
Resources
Cement
Holdings
Ltd
204,000
228
Voltas
Ltd
26,315
298
$
3,229
Chemicals
-
1.10%
Asian
Paints
Ltd
20,475
776
Navin
Fluorine
International
Ltd
7,208
258
$
1,034
Commercial
Services
-
1.65%
China
New
Higher
Education
Group
Ltd
(d)
387,000
241
New
Oriental
Education
&
Technology
Group
Inc
ADR
(b)
4,051
753
NICE
Information
Service
Co
Ltd
(b)
24,308
556
$
1,550
Computers
-
1.58%
Infosys
Ltd
60,036
1,029
LG
Corp
(b)
5,576
450
$
1,479
Consumer
Products
-
0.94%
Hindustan
Unilever
Ltd
26,980
886
Cosmetics
&
Personal
Care
-
0.31%
Colgate-Palmolive
India
Ltd
13,510
290
Diversified
Financial
Services
-
4.16%
B3
SA
-
Brasil
Bolsa
Balcao
48,641
580
CreditAccess
Grameen
Ltd
(b)
29,925
310
Fubon
Financial
Holding
Co
Ltd
289,000
481
Housing
Development
Finance
Corp
Ltd
38,832
1,361
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Diversified
Financial
Services
(continued)
KB
Financial
Group
Inc
18,764
$
745
Tisco
Financial
Group
PCL
145,400
429
$
3,906
Electrical
Components
&
Equipment
-
0.86%
Delta
Electronics
Inc
86,000
806
Energy
-
Alternate
Sources
-
0.59%
Sao
Martinho
SA
104,582
551
Engineering
&
Construction
-
1.39%
Frontken
Corp
Bhd
259,600
230
Grupo
Aeroportuario
del
Pacifico
SAB
de
CV
(b)
50,600
565
Grupo
Aeroportuario
del
Sureste
SAB
de
CV
(b)
30,455
505
$
1,300
Food
-
3.34%
Bid
Corp
Ltd
(b)
14,950
269
Dino
Polska
SA
(b),(d)
6,336
491
Indofood
Sukses
Makmur
Tbk
PT
715,100
349
Minerva
SA/Brazil
171,400
336
Nestle
India
Ltd
1,609
405
Tingyi
Cayman
Islands
Holding
Corp
364,000
623
Want
Want
China
Holdings
Ltd
424,000
307
X5
Retail
Group
NV
9,837
355
$
3,135
Gas
-
1.54%
China
Resources
Gas
Group
Ltd
102,000
542
ENN
Energy
Holdings
Ltd
61,500
903
$
1,445
Healthcare
-
Products
-
0.25%
Osstem
Implant
Co
Ltd
(b)
4,998
235
Healthcare
-
Services
-
1.57%
Notre
Dame
Intermedica
Participacoes
SA
21,400
323
Pharmaron
Beijing
Co
Ltd
(d)
47,400
801
Rede
D'Or
Sao
Luiz
SA
(b)
26,233
345
$
1,469
Holding
Companies
-
Diversified
-
0.43%
Swire
Pacific
Ltd
73,000
402
Home
Furnishings
-
1.37%
Gree
Electric
Appliances
Inc
of
Zhuhai
21,796
208
Haier
Smart
Home
Co
Ltd
(b)
176,000
638
Hangzhou
Robam
Appliances
Co
Ltd
70,692
443
$
1,289
Insurance
-
4.22%
AIA
Group
Ltd
52,400
638
ICICI
Lombard
General
Insurance
Co
Ltd
(b),(d)
21,786
454
ICICI
Prudential
Life
Insurance
Co
Ltd
(b),(d)
36,205
247
Odontoprev
SA
150,500
422
PICC
Property
&
Casualty
Co
Ltd
712,000
539
Ping
An
Insurance
Group
Co
of
China
Ltd
104,000
1,266
Qualitas
Controladora
SAB
de
CV
73,600
395
$
3,961
Internet
-
15.96%
Alibaba
Group
Holding
Ltd
(b)
169,592
4,932
Meituan
(b)
30,600
1,152
MercadoLibre
Inc
(b)
422
707
My
EG
Services
Bhd
473,900
227
Naspers
Ltd
4,268
874
NCSoft
Corp
(b)
834
716
Tencent
Holdings
Ltd
84,600
6,087
Tencent
Music
Entertainment
Group
ADR
(b)
14,710
283
$
14,978
Iron
&
Steel
-
1.53%
Eregli
Demir
ve
Celik
Fabrikalari
TAS
351,227
705
Severstal
PAO
41,664
732
$
1,437
Lodging
-
0.73%
Galaxy
Entertainment
Group
Ltd
51,000
397
NagaCorp
Ltd
220,000
289
$
686
Schedule
of
Investments
International
Emerging
Markets
Account
December
31,
2020
See
accompanying
notes.
171
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Metal
Fabrication
&
Hardware
-
0.35%
Astral
Poly
Technik
Ltd
13,327
$
325
Mining
-
2.48%
Anglo
American
PLC
16,432
543
Antofagasta
PLC
30,073
590
Impala
Platinum
Holdings
Ltd
44,735
616
Polymetal
International
PLC
10,584
244
Polyus
PJSC
3,270
329
$
2,322
Miscellaneous
Manufacturers
-
1.80%
Elite
Material
Co
Ltd
42,000
235
Escorts
Ltd
12,027
208
Lens
Technology
Co
Ltd
57,300
270
Pidilite
Industries
Ltd
18,081
437
Sunny
Optical
Technology
Group
Co
Ltd
24,800
542
$
1,692
Oil
&
Gas
-
3.31%
LUKOIL
PJSC
ADR
12,649
860
Petrobras
Distribuidora
SA
67,400
287
Reliance
Industries
Ltd
71,942
1,958
$
3,105
Real
Estate
-
1.51%
A-Living
Smart
City
Services
Co
Ltd
(d)
141,750
629
Shimao
Group
Holdings
Ltd
198,000
631
Shimao
Services
Holdings
Ltd
(b),(d)
103,245
159
$
1,419
Retail
-
4.43%
Alibaba
Health
Information
Technology
Ltd
(b)
120,000
355
China
Meidong
Auto
Holdings
Ltd
74,000
301
Haidilao
International
Holding
Ltd
(d)
34,000
262
Home
Product
Center
PCL
1,223,300
557
Li
Ning
Co
Ltd
98,000
675
Lojas
Renner
SA
50,850
426
Magazine
Luiza
SA
124,000
596
Wal-Mart
de
Mexico
SAB
de
CV
350,800
986
$
4,158
Semiconductors
-
18.91%
ASPEED
Technology
Inc
5,000
306
Keystone
Microtech
Corp
25,000
278
MediaTek
Inc
46,000
1,227
Parade
Technologies
Ltd
7,000
277
Realtek
Semiconductor
Corp
24,000
334
Samsung
Electronics
Co
Ltd
79,008
5,900
SK
Hynix
Inc
14,462
1,580
Taiwan
Semiconductor
Manufacturing
Co
Ltd
394,164
7,457
Tokai
Carbon
Korea
Co
Ltd
(b)
3,379
390
$
17,749
Software
-
2.00%
Bilibili
Inc
ADR
(b)
4,471
383
NetEase
Inc
41,900
800
Sea
Ltd
ADR
(b)
3,485
694
$
1,877
Telecommunications
-
0.53%
Telefonica
Brasil
SA
55,500
497
Transportation
-
0.65%
Hyundai
Glovis
Co
Ltd
(b)
2,135
362
Rumo
SA
(b)
66,220
246
$
608
TOTAL
COMMON
STOCKS
$
92,296
PREFERRED
STOCKS
-
1.13%
Shares
Held
Value
(000's)
Oil
&
Gas
-
0.85%
Petroleo
Brasileiro
SA
0.00%
(b)
145,800
$
79
4
Semiconductors
-
0.28%
Samsung
Electronics
Co
Ltd
1417.00%
3,931
267
TOTAL
PREFERRED
STOCKS
$
1,06
1
Total
Investments
$
94,16
2
Other
Assets
and
Liabilities
- (0.35)%
(32
3
)
TOTAL
NET
ASSETS
-
100.00%
$
93,839
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
(d)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$3,583
or
3.82%
of
net
assets.
Portfolio
Summary (unaudited)
Location
Percent
China
29.84%
India
14.38%
Korea,
Republic
Of
13.68%
Taiwan
12.15%
Brazil
6.07%
Mexico
4.24%
Russian
Federation
3.78%
Hong
Kong
3.40%
Indonesia
2.18%
South
Africa
1.88%
Thailand
1.68%
United
States
0.86%
Peru
0.80%
Argentina
0.75%
Turkey
0.75%
Singapore
0.74%
Cyprus
0.64%
Chile
0.63%
United
Kingdom
0.58%
Poland
0.52%
Malaysia
0.49%
Cambodia
0.31%
Other
Assets
and
Liabilities
(0.35)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
International
Emerging
Markets
Account
December
31,
2020
See
accompanying
notes.
172
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
637
$
26,497
$
26,329
$
805
$
637
$
26,497
$
26,329
$
805
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
2
$
—
$
—
$
—
$
2
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2020
See
accompanying
notes.
173
INVESTMENT
COMPANIES
-
1.37%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0.34%
iShares
Russell
1000
Growth
ETF
8,785
$
2,118
Money
Market
Funds
-
1.03%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.01%
(a),(b)
290,219
29
0
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
6,011,634
6,01
2
$
6,302
TOTAL
INVESTMENT
COMPANIES
$
8,420
COMMON
STOCKS
-
98.08%
Shares
Held
Value
(000's)
Advertising
-
0.02%
Trade
Desk
Inc/The
(d)
177
$
142
Aerospace
&
Defense
-
1.16%
HEICO
Corp
163
21
HEICO
Corp
-
Class
A
266
31
L3Harris
Technologies
Inc
34,016
6,430
Lockheed
Martin
Corp
1,064
378
Mercury
Systems
Inc
(d)
191
17
Northrop
Grumman
Corp
617
188
TransDigm
Group
Inc
(d)
49
30
$
7,095
Agriculture
-
0.02%
Altria
Group
Inc
3,449
141
Apparel
-
0.43%
NIKE
Inc
18,721
2,649
VF
Corp
97
8
$
2,657
Automobile
Manufacturers
-
0.37%
Tesla
Inc
(d)
3,243
2,288
Automobile
Parts
&
Equipment
-
0.57%
Allison
Transmission
Holdings
Inc
313
14
Aptiv
PLC
26,805
3,492
BorgWarner
Inc
114
4
$
3,510
Banks
-
0.27%
Goldman
Sachs
Group
Inc/The
6,288
1,658
Beverages
-
1.39%
Boston
Beer
Co
Inc/The
(d)
39
39
Brown-Forman
Corp
-
A
Shares
165
12
Brown-Forman
Corp
-
B
Shares
89,888
7,140
Coca-Cola
Co/The
9,749
535
Monster
Beverage
Corp
(d)
1,580
146
PepsiCo
Inc
4,380
649
$
8,521
Biotechnology
-
1.00%
ACADIA
Pharmaceuticals
Inc
(d)
472
25
Acceleron
Pharma
Inc
(d)
204
26
Alexion
Pharmaceuticals
Inc
(d)
150
23
Alnylam
Pharmaceuticals
Inc
(d)
493
64
Amgen
Inc
2,499
575
Berkeley
Lights
Inc
(d)
20
2
Biogen
Inc
(d)
203
50
BioMarin
Pharmaceutical
Inc
(d)
700
61
Bluebird
Bio
Inc
(d)
110
5
Exact
Sciences
Corp
(d)
552
73
Exelixis
Inc
(d)
478
10
Global
Blood
Therapeutics
Inc
(d)
255
11
Guardant
Health
Inc
(d)
351
45
Illumina
Inc
(d)
631
234
Incyte
Corp
(d)
16,141
1,404
Ionis
Pharmaceuticals
Inc
(d)
291
16
Iovance
Biotherapeutics
Inc
(d)
572
27
Moderna
Inc
(d)
1,223
128
Regeneron
Pharmaceuticals
Inc
(d)
416
201
Royalty
Pharma
PLC
220
11
Sage
Therapeutics
Inc
(d)
14
1
Seagen
Inc
(d)
542
95
Vertex
Pharmaceuticals
Inc
(d)
12,927
3,055
$
6,142
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Building
Materials
-
0.02%
Armstrong
World
Industries
Inc
66
$
5
AZEK
Co
Inc/The
(d)
25
1
Carrier
Global
Corp
1,320
50
Trex
Co
Inc
(d)
492
41
$
97
Chemicals
-
1.58%
Air
Products
and
Chemicals
Inc
120
33
Ecolab
Inc
211
46
FMC
Corp
110
13
NewMarket
Corp
25
10
RPM
International
Inc
455
41
Sherwin-Williams
Co/The
12,931
9,503
W
R
Grace
&
Co
75
4
$
9,650
Commercial
Services
-
6.81%
2U
Inc
(d)
82
3
Automatic
Data
Processing
Inc
1,587
280
Avalara
Inc
(d)
352
58
Booz
Allen
Hamilton
Holding
Corp
579
51
Bright
Horizons
Family
Solutions
Inc
(d)
177
31
Chegg
Inc
(d)
515
47
Cintas
Corp
24,738
8,744
CoreLogic
Inc/United
States
16
1
CoStar
Group
Inc
(d)
2,269
2,097
Dun
&
Bradstreet
Holdings
Inc
(d)
155
4
Equifax
Inc
385
74
FleetCor
Technologies
Inc
(d)
352
96
Gartner
Inc
(d)
370
59
Global
Payments
Inc
43,523
9,376
H&R
Block
Inc
581
9
IHS
Markit
Ltd
925
83
MarketAxess
Holdings
Inc
155
88
Moody's
Corp
699
203
Morningstar
Inc
84
19
Paylocity
Holding
Corp
(d)
163
34
PayPal
Holdings
Inc
(d)
77,216
18,084
Quanta
Services
Inc
119
9
Rollins
Inc
829
32
S&P
Global
Inc
4,879
1,604
Square
Inc
(d)
1,589
346
StoneCo
Ltd
(d)
863
72
TransUnion
738
73
Verisk
Analytics
Inc
682
142
WEX
Inc
(d)
15
3
$
41,722
Computers
-
4.41%
Accenture
PLC
-
Class
A
2,737
715
Apple
Inc
157,038
20,838
CACI
International
Inc
(d)
16
4
Cognizant
Technology
Solutions
Corp
163
13
Crowdstrike
Holdings
Inc
(d)
470
100
Dell
Technologies
Inc
(d)
57
4
EPAM
Systems
Inc
(d)
227
81
Fortinet
Inc
(d)
568
84
Genpact
Ltd
120,354
4,978
Globant
SA
(d)
163
35
Leidos
Holdings
Inc
49
5
Lumentum
Holdings
Inc
(d)
31
3
McAfee
Corp
73
1
NetApp
Inc
511
34
Pure
Storage
Inc
(d)
593
13
Science
Applications
International
Corp
29
3
Zscaler
Inc
(d)
309
62
$
26,973
Consumer
Products
-
0.03%
Avery
Dennison
Corp
147
23
Church
&
Dwight
Co
Inc
1,053
92
Clorox
Co/The
383
77
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2020
See
accompanying
notes.
174
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Consumer
Products
(continued)
Reynolds
Consumer
Products
Inc
50
$
1
$
193
Cosmetics
&
Personal
Care
-
1.47%
Estee
Lauder
Cos
Inc/The
31,327
8,339
Procter
&
Gamble
Co/The
4,683
652
$
8,991
Distribution
&
Wholesale
-
0.06%
Copart
Inc
(d)
870
111
Fastenal
Co
1,988
97
IAA
Inc
(d)
137
9
Pool
Corp
165
62
WW
Grainger
Inc
138
56
$
335
Diversified
Financial
Services
-
4.19%
Ares
Management
Corp
443
21
Cboe
Global
Markets
Inc
101
10
Charles
Schwab
Corp/The
20,878
1,107
Credit
Acceptance
Corp
(d),(e)
2
1
Intercontinental
Exchange
Inc
835
96
LendingTree
Inc
(d)
44
12
LPL
Financial
Holdings
Inc
24
3
Mastercard
Inc
33,729
12,039
Rocket
Cos
Inc
(d),(e)
145
3
SLM
Corp
321
4
T
Rowe
Price
Group
Inc
246
37
Tradeweb
Markets
Inc
324
20
Virtu
Financial
Inc
210
5
Visa
Inc
53,263
11,650
Western
Union
Co/The
405
9
XP
Inc
(d)
15,969
634
$
25,651
Electric
-
0.40%
NextEra
Energy
Inc
31,332
2,417
NRG
Energy
Inc
362
14
$
2,431
Electrical
Components
&
Equipment
-
0.02%
Energizer
Holdings
Inc
211
9
Generac
Holdings
Inc
(d)
237
54
Universal
Display
Corp
181
41
$
104
Electronics
-
2.68%
Agilent
Technologies
Inc
114
14
Allegion
plc
253
29
Amphenol
Corp
733
96
Coherent
Inc
(d)
86
13
Fortive
Corp
107,527
7,615
Jabil
Inc
105
5
Keysight
Technologies
Inc
(d)
268
35
Mettler-Toledo
International
Inc
(d)
96
109
PerkinElmer
Inc
93
13
Roper
Technologies
Inc
19,666
8,478
Waters
Corp
(d)
18
5
$
16,412
Energy
-
Alternate
Sources
-
0.02%
Array
Technologies
Inc
(d)
16
1
Enphase
Energy
Inc
(d)
451
79
SolarEdge
Technologies
Inc
(d)
207
66
$
146
Engineering
&
Construction
-
0.00%
frontdoor
Inc
(d)
54
3
Entertainment
-
0.23%
DraftKings
Inc
(d)
28,803
1,341
Live
Nation
Entertainment
Inc
(d)
605
44
Vail
Resorts
Inc
13
4
$
1,389
Environmental
Control
-
0.01%
Waste
Management
Inc
232
27
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Food
-
0.06%
Albertsons
Cos
Inc
(e)
64
$
1
Beyond
Meat
Inc
(d),(e)
175
22
Campbell
Soup
Co
397
19
Grocery
Outlet
Holding
Corp
(d)
140
5
Hershey
Co/The
487
74
Kellogg
Co
363
23
Lamb
Weston
Holdings
Inc
144
11
McCormick
&
Co
Inc/MD
592
57
Pilgrim's
Pride
Corp
(d)
61
1
Sprouts
Farmers
Market
Inc
(d)
426
9
Sysco
Corp
1,481
110
$
332
Hand
&
Machine
Tools
-
0.00%
Lincoln
Electric
Holdings
Inc
105
12
MSA
Safety
Inc
31
5
$
17
Healthcare
-
Products
-
8.87%
10X
Genomics
Inc
(d)
245
35
Abbott
Laboratories
2,851
312
ABIOMED
Inc
(d)
188
61
Adaptive
Biotechnologies
Corp
(d)
345
20
Align
Technology
Inc
(d)
336
179
Avantor
Inc
(d)
71,424
2,011
Baxter
International
Inc
913
73
Bio-Techne
Corp
153
49
Bruker
Corp
188
10
Cooper
Cos
Inc/The
30
11
Danaher
Corp
38,434
8,538
Edwards
Lifesciences
Corp
(d)
92,419
8,432
Haemonetics
Corp
(d)
194
23
Hill-Rom
Holdings
Inc
30
3
Hologic
Inc
(d)
764
56
ICU
Medical
Inc
(d)
21
4
IDEXX
Laboratories
Inc
(d)
362
181
Insulet
Corp
(d)
279
71
Intuitive
Surgical
Inc
(d)
21,197
17,341
Masimo
Corp
(d)
207
56
Novocure
Ltd
(d)
424
73
Penumbra
Inc
(d),(e)
139
24
Quidel
Corp
(d)
158
28
Repligen
Corp
(d)
223
43
ResMed
Inc
616
131
STERIS
PLC
18
3
Stryker
Corp
21,320
5,225
Tandem
Diabetes
Care
Inc
(d)
224
21
Teleflex
Inc
123
51
Thermo
Fisher
Scientific
Inc
23,958
11,159
Varian
Medical
Systems
Inc
(d)
49
9
West
Pharmaceutical
Services
Inc
314
89
$
54,322
Healthcare
-
Services
-
2.33%
Amedisys
Inc
(d)
135
40
American
Well
Corp
(d),(e)
134
3
Anthem
Inc
3,760
1,207
Centene
Corp
(d)
25,959
1,559
Charles
River
Laboratories
International
Inc
(d)
184
46
Chemed
Corp
66
35
DaVita
Inc
(d)
52
6
Encompass
Health
Corp
201
17
HCA
Healthcare
Inc
17,293
2,844
Humana
Inc
5,332
2,187
IQVIA
Holdings
Inc
(d)
309
55
Laboratory
Corp
of
America
Holdings
(d)
21
4
Molina
Healthcare
Inc
(d)
169
36
PPD
Inc
(d)
561
19
Syneos
Health
Inc
(d)
27
2
Teladoc
Health
Inc
(d)
430
86
UnitedHealth
Group
Inc
17,476
6,129
$
14,275
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2020
See
accompanying
notes.
175
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Home
Builders
-
0.00%
NVR
Inc
(d)
2
$
8
Home
Furnishings
-
0.00%
Dolby
Laboratories
Inc
28
3
Tempur
Sealy
International
Inc
(d)
634
17
$
20
Housewares
-
0.01%
Scotts
Miracle-Gro
Co/The
162
32
Insurance
-
0.09%
Alleghany
Corp
6
4
Aon
PLC
972
205
Axis
Capital
Holdings
Ltd
28
1
Brown
&
Brown
Inc
47
2
Erie
Indemnity
Co
62
15
GoHealth
Inc
(d)
16
—
Lincoln
National
Corp
89
5
Marsh
&
McLennan
Cos
Inc
1,688
198
Primerica
Inc
110
15
Progressive
Corp/The
719
71
RenaissanceRe
Holdings
Ltd
74
12
$
528
Internet
-
25.01%
Airbnb
-
Class
B
(d),(f),(g)
10,110
1,484
Airbnb
Inc
(d)
1,137
167
Alibaba
Group
Holding
Ltd
ADR
(d)
37,829
8,804
Alphabet
Inc
-
A
Shares
(d)
9,053
15,867
Alphabet
Inc
-
C
Shares
(d)
10,378
18,181
Amazon.com
Inc
(d)
12,837
41,808
Anaplan
Inc
(d)
556
40
Booking
Holdings
Inc
(d)
1,405
3,129
CDW
Corp/DE
606
80
DoorDash
Inc
-
Class
A
(d),(e)
921
131
DoorDash
Inc
-
Class
A
Lockup
Shares
(d),(f)
1,885
269
eBay
Inc
2,572
129
Etsy
Inc
(d)
504
90
Expedia
Group
Inc
65
9
Facebook
Inc
(d)
64,312
17,568
Farfetch
Ltd
(d)
16,850
1,075
FireEye
Inc
(d)
186
4
GoDaddy
Inc
(d)
707
59
Grubhub
Inc
(d)
34
2
IAC/InterActiveCorp
(d)
7,595
1,438
Leslie's
Inc
(d),(e)
73
2
Match
Group
Inc
(d)
70,032
10,589
Netflix
Inc
(d)
11,528
6,234
NortonLifeLock
Inc
2,350
49
Okta
Inc
(d)
494
126
Palo
Alto
Networks
Inc
(d)
399
142
Pinterest
Inc
(d)
1,427
94
Proofpoint
Inc
(d)
241
33
Roku
Inc
(d)
466
155
Shopify
Inc
(d)
7,681
8,694
Snap
Inc
Class
A
(d)
129,244
6,471
Spotify
Technology
SA
(d)
13,500
4,248
Tencent
Holdings
Ltd
ADR
66,839
4,805
Uber
Technologies
Inc
(d)
4,549
232
VeriSign
Inc
(d)
258
56
Wayfair
Inc
(d)
276
62
Wix.com
Ltd
(d)
2,889
722
Zendesk
Inc
(d)
487
70
Zillow
Group
Inc
-
A
Shares
(d)
25
3
Zillow
Group
Inc
-
C
Shares
(d)
78
10
$
153,131
Leisure
Products
&
Services
-
0.01%
Peloton
Interactive
Inc
(d)
264
40
Planet
Fitness
Inc
(d)
208
16
Polaris
Inc
23
2
Virgin
Galactic
Holdings
Inc
(d),(e)
291
7
$
65
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Lodging
-
0.01%
Las
Vegas
Sands
Corp
605
$
36
Wynn
Resorts
Ltd
104
12
$
48
Machinery
-
Construction
&
Mining
-
0.01%
BWX
Technologies
Inc
276
17
Vertiv
Holdings
Co
940
17
$
34
Machinery
-
Diversified
-
0.40%
Cognex
Corp
703
56
Graco
Inc
351
25
Ingersoll
Rand
Inc
(d)
49,461
2,254
Nordson
Corp
200
40
Rockwell
Automation
Inc
241
61
Toro
Co/The
409
39
$
2,475
Media
-
0.09%
Altice
USA
Inc
(d)
1,258
48
Cable
One
Inc
22
49
Charter
Communications
Inc
(d)
561
371
FactSet
Research
Systems
Inc
158
53
Liberty
Media
Corp-Liberty
SiriusXM
-
A
Shares
(d)
37
2
Liberty
Media
Corp-Liberty
SiriusXM
-
C
Shares
(d)
75
3
Nexstar
Media
Group
Inc
122
13
Sirius
XM
Holdings
Inc
3,074
20
World
Wrestling
Entertainment
Inc
197
9
$
568
Mining
-
0.00%
Royal
Gold
Inc
197
21
Miscellaneous
Manufacturers
-
0.07%
3M
Co
1,595
279
Axon
Enterprise
Inc
(d)
266
32
Donaldson
Co
Inc
49
3
Illinois
Tool
Works
Inc
597
122
$
436
Office
&
Business
Equipment
-
0.01%
Zebra
Technologies
Corp
(d)
204
78
Packaging
&
Containers
-
0.03%
Amcor
PLC
1,073
13
Ball
Corp
1,281
119
Berry
Global
Group
Inc
(d)
194
11
Crown
Holdings
Inc
(d)
50
5
Graphic
Packaging
Holding
Co
225
4
$
152
Pharmaceuticals
-
4.65%
AbbVie
Inc
7,116
763
Agios
Pharmaceuticals
Inc
(d)
22
1
AmerisourceBergen
Corp
296
29
Becton
Dickinson
and
Co
7,307
1,828
Bristol-Myers
Squibb
Co
3,528
219
Cardinal
Health
Inc
1,252
67
Cigna
Corp
27,235
5,670
DexCom
Inc
(d)
21,241
7,853
Eli
Lilly
and
Co
3,620
611
Herbalife
Nutrition
Ltd
(d)
46
2
Horizon
Therapeutics
Plc
(d)
772
57
Johnson
&
Johnson
1,519
239
McKesson
Corp
515
90
Merck
&
Co
Inc
9,487
776
Neurocrine
Biosciences
Inc
(d)
390
37
PRA
Health
Sciences
Inc
(d)
228
29
Reata
Pharmaceuticals
Inc
(d)
99
12
Sarepta
Therapeutics
Inc
(d)
318
54
Zoetis
Inc
61,057
10,105
$
28,442
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2020
See
accompanying
notes.
176
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pipelines
-
0.01%
Cheniere
Energy
Inc
(d)
989
$
59
Equitrans
Midstream
Corp
140
1
$
60
Private
Equity
-
0.00%
Apollo
Global
Management
Inc
383
19
Carlyle
Group
Inc/The
41
1
$
20
REITs
-
1.56%
American
Tower
Corp
1,896
426
Americold
Realty
Trust
75
3
Brookfield
Property
REIT
Inc
153
2
CoreSite
Realty
Corp
124
16
Crown
Castle
International
Corp
1,667
265
Equinix
Inc
380
271
Equity
LifeStyle
Properties
Inc
324
20
Extra
Space
Storage
Inc
378
44
Iron
Mountain
Inc
744
22
Public
Storage
420
97
SBA
Communications
Corp
29,464
8,313
Simon
Property
Group
Inc
1,094
93
$
9,572
Retail
-
4.90%
AutoZone
Inc
(d)
58
69
Best
Buy
Co
Inc
175
17
Burlington
Stores
Inc
(d)
248
65
CarMax
Inc
(d)
11,446
1,081
Carvana
Co
(d)
8,598
2,059
Chipotle
Mexican
Grill
Inc
(d)
1,249
1,732
Costco
Wholesale
Corp
17,857
6,728
Dollar
General
Corp
15,610
3,282
Dollar
Tree
Inc
(d)
478
52
Domino's
Pizza
Inc
165
63
Five
Below
Inc
(d)
234
41
Floor
&
Decor
Holdings
Inc
(d)
400
37
Home
Depot
Inc/The
2,306
613
Lowe's
Cos
Inc
3,250
522
Lululemon
Athletica
Inc
(d)
23,000
8,005
McDonald's
Corp
456
98
Ollie's
Bargain
Outlet
Holdings
Inc
(d)
219
18
O'Reilly
Automotive
Inc
(d)
306
139
Ross
Stores
Inc
37,691
4,628
Starbucks
Corp
2,896
310
TJX
Cos
Inc/The
4,168
285
Tractor
Supply
Co
493
69
Ulta
Beauty
Inc
(d)
214
61
Vroom
Inc
(d)
73
3
Wendy's
Co/The
786
17
Williams-Sonoma
Inc
47
5
Yum
China
Holdings
Inc
140
8
Yum!
Brands
Inc
97
11
$
30,018
Semiconductors
-
3.14%
Advanced
Micro
Devices
Inc
(d)
24,928
2,286
Allegro
MicroSystems
Inc
(d)
45
1
Analog
Devices
Inc
189
28
Applied
Materials
Inc
3,932
339
ASML
Holding
NV
-
NY
Reg
Shares
7,729
3,770
Broadcom
Inc
1,606
703
Entegris
Inc
534
51
Inphi
Corp
(d)
203
33
IPG
Photonics
Corp
(d)
9
2
KLA
Corp
664
172
Lam
Research
Corp
620
293
Marvell
Technology
Group
Ltd
27,734
1,318
Maxim
Integrated
Products
Inc
375
33
Microchip
Technology
Inc
802
111
MKS
Instruments
Inc
175
26
Monolithic
Power
Systems
Inc
185
68
NVIDIA
Corp
2,535
1,324
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Semiconductors
(continued)
NXP
Semiconductors
NV
46,453
$
7,387
QUALCOMM
Inc
4,835
737
Teradyne
Inc
705
85
Texas
Instruments
Inc
1,964
322
Xilinx
Inc
1,046
148
$
19,237
Shipbuilding
-
0.00%
Huntington
Ingalls
Industries
Inc
15
3
Software
-
19.33%
Activision
Blizzard
Inc
1,292
120
Adobe
Inc
(d)
18,241
9,122
Akamai
Technologies
Inc
(d)
563
59
Alteryx
Inc
(d)
223
27
ANSYS
Inc
(d)
366
133
Aspen
Technology
Inc
(d)
269
35
Atlassian
Corp
PLC
(d)
562
131
Autodesk
Inc
(d)
37,046
11,312
BigCommerce
Holdings
Inc
(d),(e)
28
2
Bill.com
Holdings
Inc
(d)
313
43
Black
Knight
Inc
(d)
646
57
Broadridge
Financial
Solutions
Inc
489
75
Cadence
Design
Systems
Inc
(d)
1,180
161
CDK
Global
Inc
58
3
Ceridian
HCM
Holding
Inc
(d)
346
37
Cerner
Corp
1,303
102
Change
Healthcare
Inc
(d)
769
14
Citrix
Systems
Inc
152
20
Cloudflare
Inc
(d)
465
35
Coupa
Software
Inc
(d)
294
100
Datadog
Inc
(d)
650
64
Datto
Holding
Corp
(d)
42
1
DocuSign
Inc
(d)
765
170
Dropbox
Inc
-
A
Shares
(d)
1,049
23
Duck
Creek
Technologies
Inc
(d)
80
4
Dynatrace
Inc
(d)
761
33
Elastic
NV
(d)
276
40
Electronic
Arts
Inc
75,371
10,823
Everbridge
Inc
(d)
156
23
Fair
Isaac
Corp
(d)
120
61
Fastly
Inc
(d),(e)
336
29
Fidelity
National
Information
Services
Inc
10,674
1,510
Fiserv
Inc
(d)
726
83
Five9
Inc
(d)
264
46
Guidewire
Software
Inc
(d)
69
9
HubSpot
Inc
(d)
176
70
Intuit
Inc
44,225
16,799
Jack
Henry
&
Associates
Inc
256
42
Jamf
Holding
Corp
(d)
37
1
JFrog
Ltd
(d)
47
3
Manhattan
Associates
Inc
(d)
239
25
Medallia
Inc
(d)
374
12
Microsoft
Corp
177,949
39,580
MongoDB
Inc
(d)
4,745
1,703
MSCI
Inc
350
156
nCino
Inc
(d)
44
3
New
Relic
Inc
(d)
222
15
Nutanix
Inc
(d)
826
26
Oak
Street
Health
Inc
(d)
35
2
Oracle
Corp
7,113
460
PagerDuty
Inc
(d)
298
12
Paychex
Inc
1,084
101
Paycom
Software
Inc
(d)
210
95
Pegasystems
Inc
162
22
Pluralsight
Inc
(d)
384
8
PTC
Inc
(d)
444
53
RealPage
Inc
(d)
325
28
RingCentral
Inc
(d)
2,873
1,089
salesforce.com
Inc
(d)
25,927
5,770
Sea
Ltd
ADR
(d)
3,413
679
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2020
See
accompanying
notes.
177
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
ServiceNow
Inc
(d)
17,552
$
9,662
Slack
Technologies
Inc
(d)
17,249
729
Smartsheet
Inc
(d)
469
33
Snowflake
Inc
-
Class
A
(d)
840
236
Snowflake
Inc
-
Class
B
(d),(f),(g)
522
147
Splunk
Inc
(d)
18,514
3,145
SS&C
Technologies
Holdings
Inc
215
16
Stripe
Inc
-
Class
B
(d),(f),(g),(h)
5,754
90
Synopsys
Inc
(d)
7,582
1,966
Take-Two
Interactive
Software
Inc
(d)
446
93
Teradata
Corp
(d)
356
8
Twilio
Inc
(d)
498
169
Tyler
Technologies
Inc
(d)
169
74
UIPATH
Inc
-
Class
A
(d),(f),(g),(h)
2,250
65
Unity
Software
Inc
(d),(e)
102
16
Veeva
Systems
Inc
(d)
574
156
VMware
Inc
(d),(e)
338
47
Workday
Inc
(d)
754
181
Zoom
Video
Communications
Inc
(d)
718
242
Zynga
Inc
(d)
3,125
31
$
118,367
Telecommunications
-
0.01%
Arista
Networks
Inc
(d)
204
59
CommScope
Holding
Co
Inc
(d)
45
1
Motorola
Solutions
Inc
75
13
Switch
Inc
326
5
Ubiquiti
Inc
30
8
$
86
Toys,
Games
&
Hobbies
-
0.00%
Mattel
Inc
(d)
903
16
Transportation
-
0.32%
CH
Robinson
Worldwide
Inc
90
9
Expeditors
International
of
Washington
Inc
432
41
JB
Hunt
Transport
Services
Inc
97
13
Landstar
System
Inc
141
19
Norfolk
Southern
Corp
4,775
1,135
Old
Dominion
Freight
Line
Inc
360
70
Union
Pacific
Corp
1,489
310
United
Parcel
Service
Inc
2,027
341
XPO
Logistics
Inc
(d)
18
2
$
1,940
TOTAL
COMMON
STOCKS
$
600,581
CONVERTIBLE
PREFERRED
STOCKS
-
0.64
%
Shares
Held
Value
(000's)
Automobile
Manufacturers
-
0.40%
Rivian
Automotive
Series
D
0.00%
(d),(f),(g),(h)
61,168
$
971
Rivian
Automotive
Series
E
0.00%
(d),(f),(g),(h)
90,527
1,438
Waymo
LLC
Series
A-2
0.00%
(d),(f),(g),(h)
2,489
214
$
2,
623
Software
-
0.08%
Magic
Leap
Inc
-
Series
C
0.00%
(d),(f),(g),(h)
5,653
13
Magic
Leap
Inc
-
Series
D
0.00%
(d),(f),(g),(h)
1,903
5
Nuro
-
Series
C
0.00%
(d),(f),(g),(h)
17,442
228
Rappi
Inc
-
Series
E
0.00%
(d),(f),(g),(h)
5,133
306
UIPATH
Inc
Series
D-1
0.00%
(d),(f),(g),(h)
13,644
397
UIPATH
Inc
Series
D-2
0.00%
(d),(f),(g),(h)
2,292
67
UIPATH
Inc
Series
E
0.00%
(d),(f),(g),(h)
484
14
$
1,030
Telecommunications
-
0.04%
Aurora
Innovation
0.00%
(d),(f),(g),(h)
12,920
254
TOTAL
CONVERTIBLE
PREFERRED
STOCKS
$
3,907
Total
Investments
$
612,908
Other
Assets
and
Liabilities
- (0.09)%
(551)
TOTAL
NET
ASSETS
-
100.00%
$
612,357
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$290
or
0.05%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
Restricted
Security.
Please
see
Restricted
Securities
sub-schedule
for
additional
information.
(g)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$5,693
or
0.93%
of
net
assets.
(h)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
Portfolio
Summary (unaudited)
Sector
Percent
Technology
27.06%
Consumer,
Non-cyclical
26.63%
Communications
25.17%
Consumer,
Cyclical
7.02%
Financial
6.11%
Industrial
4.72%
Basic
Materials
1.58%
Money
Market
Funds
1.03%
Utilities
0.40%
Investment
Companies
0.34%
Energy
0.03%
Other
Assets
and
Liabilities
(0.09)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2020
See
accompanying
notes.
178
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
5,083
$
215,34
9
$
214,420
$
6,01
2
Principal
Millennials
Index
ETF
199
—
199
—
Principal
Quality
ETF
66
—
64
—
Principal
Sustainable
Momentum
Index
ETF
21
—
20
—
Principal
U.S.
Mega-Cap
ETF
166
—
156
—
$
5,535
$
215,34
9
$
214,859
$
6,01
2
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
27
$
—
$
—
$
—
Principal
Millennials
Index
ETF
—
37
—
(37)
Principal
Quality
ETF
—
10
—
(12)
Principal
Sustainable
Momentum
Index
ETF
—
1
—
(2)
Principal
U.S.
Mega-Cap
ETF
1
12
—
(22)
$
28
$
60
$
—
$
(73)
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Restricted
Securities
Security
Name
Acquisition
Date
Cost
Value
Percent
of
Net
Assets
Airbnb
-
Class
B
07/14/2015
$
264
$
1,484
0.24%
Aurora
Innovation
0.00%
03/01/2019
119
254
0.04%
DoorDash
Inc
-
Class
A
Lockup
Shares
06/17/2020
86
269
0.04%
Magic
Leap
Inc
-
Series
C
0.00%
01/20/2016
130
13
0.00%
Magic
Leap
Inc
-
Series
D
0.00%
10/12/2017
5
1
5
0.00%
Nuro
-
Series
C
0.00%
10/30/2020
228
228
0.04%
Rappi
Inc
-
Series
E
0.00%
09/08/2020
306
306
0.05%
Rivian
Automotive
Series
D
0.00%
12/23/2019
657
971
0.16%
Rivian
Automotive
Series
E
0.00%
07/10/2020
1,403
1,438
0.24%
Snowflake
Inc
-
Class
B
03/17/2020
20
147
0.02%
Stripe
Inc
-
Class
B
12/17/2019
90
90
0.01%
UIPATH
Inc
-
Class
A
12/11/2020
65
65
0.01%
UIPATH
Inc
Series
D-1
0.00%
04/26/2019
179
397
0.07%
UIPATH
Inc
Series
D-2
0.00%
04/26/2019
30
67
0.01%
UIPATH
Inc
Series
E
0.00%
07/09/2020
9
14
0.00%
Waymo
LLC
Series
A-2
0.00%
05/08/2020
214
214
0.03%
Total
$
5,962
0.96%
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini;
March
2021
Long
13
$
2,437
$
12
Total
$
12
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2020
See
accompanying
notes.
179
INVESTMENT
COMPANIES
-
1.89%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0.19%
iShares
Core
S&P
500
ETF
15,016
$
5,637
Money
Market
Funds
-
1.70%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.01%
(a),(b)
394,136
394
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
49,064,513
49,065
$
49,459
TOTAL
INVESTMENT
COMPANIES
$
55,096
COMMON
STOCKS
-
98.26%
Shares
Held
Value
(000's)
Advertising
-
0.07%
Interpublic
Group
of
Cos
Inc
/The
35,356
$
832
Omnicom
Group
Inc
19,487
1,215
$
2,047
Aerospace
&
Defense
-
1.52%
Boeing
Co/The
48,102
10,297
General
Dynamics
Corp
21,071
3,136
Howmet
Aerospace
Inc
35,375
1,009
L3Harris
Technologies
Inc
19,047
3,600
Lockheed
Martin
Corp
22,319
7,923
Northrop
Grumman
Corp
14,055
4,283
Raytheon
Technologies
Corp
137,668
9,845
Teledyne
Technologies
Inc
(d)
3,345
1,311
TransDigm
Group
Inc
(d)
4,935
3,054
$
44,458
Agriculture
-
0.72%
Altria
Group
Inc
168,460
6,907
Archer-Daniels-Midland
Co
50,435
2,543
Philip
Morris
International
Inc
141,167
11,687
$
21,137
Airlines
-
0.25
%
Alaska
Air
Group
Inc
11,209
583
American
Airlines
Group
Inc
(e)
55,364
873
Delta
Air
Lines
Inc
57,810
2,325
Southwest
Airlines
Co
53,507
2,494
United
Airlines
Holdings
Inc
(d)
26,529
1,147
$
7,422
Apparel
-
0.73%
Hanesbrands
Inc
31,575
460
NIKE
Inc
113,746
16,092
PVH
Corp
6,445
605
Ralph
Lauren
Corp
4,371
453
Tapestry
Inc
25,147
782
Under
Armour
Inc
-
Class
A
(d)
17,090
293
Under
Armour
Inc
-
Class
C
(d)
17,641
263
VF
Corp
28,990
2,476
$
21,424
Automobile
Manufacturers
-
2.13%
Cummins
Inc
13,417
3,047
Ford
Motor
Co
354,212
3,113
General
Motors
Co
114,176
4,754
PACCAR
Inc
31,405
2,710
Tesla
Inc
(d)
68,740
48,508
$
62,132
Automobile
Parts
&
Equipment
-
0.14%
Aptiv
PLC
24,477
3,189
BorgWarner
Inc
22,164
857
$
4,046
Banks
-
4.62%
Bank
of
America
Corp
690,070
20,916
Bank
of
New
York
Mellon
Corp/The
73,900
3,136
Citigroup
Inc
188,725
11,637
Citizens
Financial
Group
Inc
38,714
1,384
Comerica
Inc
12,608
704
Fifth
Third
Bancorp
64,580
1,780
First
Republic
Bank/CA
15,768
2,317
Goldman
Sachs
Group
Inc
/The
31,190
8,225
Huntington
Bancshares
Inc
/OH
92,217
1,165
JPMorgan
Chase
&
Co
276,312
35,111
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Banks
(continued)
KeyCorp
88,515
$
1,453
M&T
Bank
Corp
11,630
1,480
Morgan
Stanley
129,560
8,879
Northern
Trust
Corp
18,866
1,757
PNC
Financial
Services
Group
Inc
/The
38,408
5,723
Regions
Financial
Corp
87,062
1,403
State
Street
Corp
31,981
2,328
SVB
Financial
Group
(d)
4,696
1,821
Truist
Financial
Corp
122,204
5,857
US
Bancorp
124,265
5,790
Wells
Fargo
&
Co
374,780
11,311
Zions
Bancorp
NA
14,868
646
$
134,823
Beverages
-
1.59%
Brown-Forman
Corp
-
B
Shares
16,544
1,314
Coca-Cola
Co/The
350,596
19,226
Constellation
Brands
Inc
15,365
3,366
Molson
Coors
Beverage
Co
17,055
771
Monster
Beverage
Corp
(d)
33,498
3,098
PepsiCo
Inc
125,272
18,578
$
46,353
Biotechnology
-
1.56%
Alexion
Pharmaceuticals
Inc
(d)
19,837
3,099
Amgen
Inc
52,772
12,133
Biogen
Inc
(d)
13,949
3,416
Bio-Rad
Laboratories
Inc
(d)
1,951
1,137
Corteva
Inc
67,535
2,615
Gilead
Sciences
Inc
113,630
6,620
Illumina
Inc
(d)
13,235
4,897
Incyte
Corp
(d)
16,874
1,468
Regeneron
Pharmaceuticals
Inc
(d)
9,506
4,593
Vertex
Pharmaceuticals
Inc
(d)
23,572
5,571
$
45,549
Building
Materials
-
0.40%
Carrier
Global
Corp
73,849
2,786
Fortune
Brands
Home
&
Security
Inc
12,594
1,080
Johnson
Controls
International
plc
65,621
3,057
Martin
Marietta
Materials
Inc
5,646
1,603
Masco
Corp
23,721
1,303
Vulcan
Materials
Co
12,012
1,781
$
11,610
Chemicals
-
1.71%
Air
Products
and
Chemicals
Inc
20,035
5,474
Albemarle
Corp
9,649
1,423
Celanese
Corp
10,596
1,377
CF
Industries
Holdings
Inc
19,391
751
Dow
Inc
67,238
3,732
DuPont
de
Nemours
Inc
66,522
4,730
Eastman
Chemical
Co
12,280
1,231
Ecolab
Inc
22,512
4,871
FMC
Corp
11,763
1,352
International
Flavors
&
Fragrances
Inc
9,693
1,055
Linde
PLC
47,579
12,538
LyondellBasell
Industries
NV
23,307
2,136
Mosaic
Co/The
31,271
720
PPG
Industries
Inc
21,411
3,088
Sherwin-Williams
Co/The
7,411
5,446
$
49,924
Commercial
Services
-
2.39%
Automatic
Data
Processing
Inc
38,870
6,849
Cintas
Corp
7,968
2,816
Equifax
Inc
11,026
2,126
FleetCor
Technologies
Inc
(d)
7,561
2,063
Gartner
Inc
(d)
8,094
1,297
Global
Payments
Inc
27,134
5,845
IHS
Markit
Ltd
33,784
3,035
MarketAxess
Holdings
Inc
3,442
1,964
Moody's
Corp
14,642
4,250
Nielsen
Holdings
PLC
32,361
675
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2020
See
accompanying
notes.
180
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
PayPal
Holdings
Inc
(d)
106,212
$
24,875
Quanta
Services
Inc
12,588
907
Robert
Half
International
Inc
10,332
646
Rollins
Inc
20,054
783
S&P
Global
Inc
21,811
7,170
United
Rentals
Inc
(d)
6,539
1,516
Verisk
Analytics
Inc
14,738
3,059
$
69,876
Computers
-
8.00%
Accenture
PLC
-
Class
A
57,431
15,001
Apple
Inc
1,448,697
192,228
Cognizant
Technology
Solutions
Corp
48,464
3,972
DXC
Technology
Co
23,062
594
Fortinet
Inc
(d)
12,213
1,814
Hewlett
Packard
Enterprise
Co
116,663
1,382
HP
Inc
124,504
3,062
International
Business
Machines
Corp
80,772
10,168
Leidos
Holdings
Inc
12,127
1,275
NetApp
Inc
20,249
1,341
Seagate
Technology
PLC
20,263
1,259
Western
Digital
Corp
27,580
1,528
$
233,624
Consumer
Products
-
0.33%
Avery
Dennison
Corp
7,560
1,173
Church
&
Dwight
Co
Inc
22,521
1,965
Clorox
Co/The
11,426
2,307
Kimberly-Clark
Corp
30,833
4,157
$
9,602
Cosmetics
&
Personal
Care
-
1.49%
Colgate-Palmolive
Co
77,700
6,644
Estee
Lauder
Cos
Inc
/The
20,537
5,467
Procter
&
Gamble
Co/The
(f)
224,770
31,274
$
43,385
Distribution
&
Wholesale
-
0.30%
Copart
Inc
(d)
18,837
2,397
Fastenal
Co
52,041
2,541
LKQ
Corp
(d)
25,382
895
Pool
Corp
3,641
1,356
WW
Grainger
Inc
4,088
1,669
$
8,858
Diversified
Financial
Services
-
3.98%
American
Express
Co
59,121
7,148
Ameriprise
Financial
Inc
10,694
2,078
BlackRock
Inc
12,857
9,277
Capital
One
Financial
Corp
41,461
4,098
Cboe
Global
Markets
Inc
9,794
912
Charles
Schwab
Corp/The
135,218
7,172
CME
Group
Inc
32,542
5,924
Discover
Financial
Services
27,784
2,515
Franklin
Resources
Inc
24,698
617
Intercontinental
Exchange
Inc
50,880
5,866
Invesco
Ltd
34,143
595
Mastercard
Inc
79,747
28,465
Nasdaq
Inc
10,409
1,382
Raymond
James
Financial
Inc
11,047
1,057
Synchrony
Financial
49,216
1,708
T
Rowe
Price
Group
Inc
20,526
3,108
Visa
Inc
153,708
33,621
Western
Union
Co/The
37,268
818
$
116,361
Electric
-
2.56%
AES
Corp/The
60,292
1,417
Alliant
Energy
Corp
22,639
1,167
Ameren
Corp
22,408
1,749
American
Electric
Power
Co
Inc
44,996
3,747
CenterPoint
Energy
Inc
49,387
1,069
CMS
Energy
Corp
25,956
1,584
Consolidated
Edison
Inc
31,011
2,241
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Electric
(continued)
Dominion
Energy
Inc
73,952
$
5,561
DTE
Energy
Co
17,546
2,130
Duke
Energy
Corp
66,714
6,108
Edison
International
34,312
2,155
Entergy
Corp
18,150
1,812
Evergy
Inc
20,562
1,141
Eversource
Energy
31,077
2,688
Exelon
Corp
88,433
3,734
FirstEnergy
Corp
49,185
1,506
NextEra
Energy
Inc
177,585
13,701
NRG
Energy
Inc
22,138
831
Pinnacle
West
Capital
Corp
10,207
816
PPL
Corp
69,693
1,965
Public
Service
Enterprise
Group
Inc
45,854
2,673
Sempra
Energy
26,149
3,332
Southern
Co/The
95,746
5,882
WEC
Energy
Group
Inc
28,594
2,631
Xcel
Energy
Inc
47,632
3,176
$
74,816
Electrical
Components
&
Equipment
-
0.24%
AMETEK
Inc
20,854
2,522
Emerson
Electric
Co
54,211
4,357
$
6,879
Electronics
-
1.41%
Agilent
Technologies
Inc
27,738
3,287
Allegion
plc
8,343
971
Amphenol
Corp
27,117
3,546
FLIR
Systems
Inc
11,888
521
Fortive
Corp
30,566
2,165
Garmin
Ltd
13,522
1,618
Honeywell
International
Inc
63,606
13,529
Keysight
Technologies
Inc
(d)
16,797
2,219
Mettler
-Toledo
International
Inc
(d)
2,158
2,459
PerkinElmer
Inc
10,151
1,456
Roper
Technologies
Inc
9,508
4,099
TE
Connectivity
Ltd
29,982
3,630
Vontier
Corp
(d)
12,210
408
Waters
Corp
(d)
5,626
1,392
$
41,300
Engineering
&
Construction
-
0.04%
Jacobs
Engineering
Group
Inc
11,750
1,280
Entertainment
-
0.03%
Live
Nation
Entertainment
Inc
(d)
12,962
952
Environmental
Control
-
0.23%
Pentair
PLC
15,079
801
Republic
Services
Inc
19,069
1,836
Waste
Management
Inc
35,244
4,156
$
6,793
Food
-
1.09%
Campbell
Soup
Co
18,357
888
Conagra
Brands
Inc
44,283
1,606
General
Mills
Inc
55,414
3,258
Hershey
Co/The
13,374
2,037
Hormel
Foods
Corp
25,450
1,186
J
M
Smucker
Co/The
10,343
1,196
Kellogg
Co
23,056
1,435
Kraft
Heinz
Co/The
58,739
2,036
Kroger
Co/The
70,191
2,229
Lamb
Weston
Holdings
Inc
13,265
1,044
McCormick
&
Co
Inc
/MD
22,544
2,155
Mondelez
International
Inc
129,641
7,580
Sysco
Corp
46,172
3,429
Tyson
Foods
Inc
26,662
1,718
$
31,797
Forest
Products
&
Paper
-
0.06%
International
Paper
Co
35,633
1,772
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2020
See
accompanying
notes.
181
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Gas
-
0.06%
Atmos
Energy
Corp
11,410
$
1,089
NiSource
Inc
34,738
797
$
1,886
Hand
&
Machine
Tools
-
0.12%
Snap-on
Inc
4,915
841
Stanley
Black
&
Decker
Inc
14,523
2,593
$
3,434
Healthcare
-
Products
-
3.98%
Abbott
Laboratories
160,660
17,591
ABIOMED
Inc
(d)
4,096
1,328
Align
Technology
Inc
(d)
6,504
3,476
Baxter
International
Inc
46,304
3,715
Boston
Scientific
Corp
(d)
129,801
4,666
Cooper
Cos
Inc
/The
4,447
1,616
Danaher
Corp
57,311
12,731
DENTSPLY
SIRONA
Inc
19,812
1,037
Edwards
Lifesciences
Corp
(d)
56,496
5,154
Hologic
Inc
(d)
23,298
1,697
IDEXX
Laboratories
Inc
(d)
7,733
3,865
Intuitive
Surgical
Inc
(d)
10,657
8,718
Medtronic
PLC
122,014
14,293
ResMed
Inc
13,137
2,792
STERIS
PLC
7,734
1,466
Stryker
Corp
29,638
7,263
Teleflex
Inc
4,222
1,738
Thermo
Fisher
Scientific
Inc
35,928
16,735
Varian
Medical
Systems
Inc
(d)
8,281
1,449
West
Pharmaceutical
Services
Inc
6,702
1,899
Zimmer
Biomet
Holdings
Inc
18,789
2,895
$
116,124
Healthcare
-
Services
-
2.02%
Anthem
Inc
22,545
7,239
Catalent
Inc
(d)
14,928
1,553
Centene
Corp
(d)
52,558
3,155
DaVita
Inc
(d)
6,700
787
HCA
Healthcare
Inc
23,925
3,935
Humana
Inc
11,998
4,922
IQVIA
Holdings
Inc
(d)
17,380
3,114
Laboratory
Corp
of
America
Holdings
(d)
8,829
1,797
Quest
Diagnostics
Inc
12,216
1,456
UnitedHealth
Group
Inc
86,009
30,162
Universal
Health
Services
Inc
7,045
969
$
59,089
Home
Builders
-
0.22%
DR
Horton
Inc
30,059
2,072
Lennar
Corp
-
A
Shares
24,939
1,901
NVR
Inc
(d)
318
1,297
PulteGroup
Inc
24,302
1,048
$
6,318
Home
Furnishings
-
0.05%
Leggett
&
Platt
Inc
12,011
532
Whirlpool
Corp
5,669
1,023
$
1,555
Housewares
-
0.02%
Newell
Brands
Inc
34,232
727
Insurance
-
3.22%
Aflac
Inc
59,217
2,633
Allstate
Corp/The
27,562
3,030
American
International
Group
Inc
78,095
2,957
Aon
PLC
20,723
4,378
Arthur
J
Gallagher
&
Co
17,433
2,157
Assurant
Inc
5,376
732
Berkshire
Hathaway
Inc
-
Class
B
(d)
176,411
40,904
Chubb
Ltd
40,916
6,298
Cincinnati
Financial
Corp
13,564
1,185
Everest
Re
Group
Ltd
3,622
848
Globe
Life
Inc
8,729
829
Hartford
Financial
Services
Group
Inc
/The
32,482
1,591
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
(continued)
Lincoln
National
Corp
16,468
$
829
Loews
Corp
21,179
953
Marsh
&
McLennan
Cos
Inc
45,976
5,379
MetLife
Inc
69,342
3,256
Principal
Financial
Group
Inc
23,160
1,149
Progressive
Corp/The
53,084
5,249
Prudential
Financial
Inc
35,896
2,802
Travelers
Cos
Inc
/The
22,962
3,223
Unum
Group
18,461
423
W
R
Berkley
Corp
12,763
848
Willis
Towers
Watson
PLC
11,685
2,462
$
94,115
Internet
-
11.15%
Alphabet
Inc
-
A
Shares
(d)
27,253
47,765
Alphabet
Inc
-
C
Shares
(d)
26,314
46,099
Amazon.com
Inc
(d)
38,660
125,913
Booking
Holdings
Inc
(d)
3,712
8,268
CDW
Corp/DE
12,961
1,708
eBay
Inc
59,363
2,983
Etsy
Inc
(d)
11,428
2,033
Expedia
Group
Inc
12,322
1,631
F5
Networks
Inc
(d)
5,585
982
Facebook
Inc
(d)
217,915
59,526
Netflix
Inc
(d)
40,049
21,656
NortonLifeLock
Inc
53,652
1,115
Twitter
Inc
(d)
72,097
3,904
VeriSign
Inc
(d)
9,102
1,970
$
325,553
Iron
&
Steel
-
0.05%
Nucor
Corp
27,369
1,456
Leisure
Products
&
Services
-
0.12%
Carnival
Corp
67,414
1,460
Norwegian
Cruise
Line
Holdings
Ltd
(d)
28,610
728
Royal
Caribbean
Cruises
Ltd
16,877
1,260
$
3,448
Lodging
-
0.34%
Hilton
Worldwide
Holdings
Inc
25,150
2,798
Las
Vegas
Sands
Corp
29,773
1,775
Marriott
International
Inc
/MD
24,108
3,180
MGM
Resorts
International
37,163
1,171
Wynn
Resorts
Ltd
8,801
993
$
9,917
Machinery
-
Construction
&
Mining
-
0.31%
Caterpillar
Inc
49,245
8,964
Machinery
-
Diversified
-
0.71%
Deere
&
Co
28,408
7,643
Dover
Corp
13,063
1,649
Flowserve
Corp
11,808
435
IDEX
Corp
6,862
1,367
Ingersoll
Rand
Inc
(d)
33,695
1,535
Otis
Worldwide
Corp
36,913
2,494
Rockwell
Automation
Inc
10,533
2,642
Westinghouse
Air
Brake
Technologies
Corp
16,217
1,187
Xylem
Inc
/NY
16,337
1,663
$
20,615
Media
-
2.26%
Charter
Communications
Inc
(d)
13,227
8,750
Comcast
Corp
-
Class
A
413,885
21,688
Discovery
Inc
-
A
Shares
(d)
14,532
437
Discovery
Inc
-
C
Shares
(d)
26,741
700
DISH
Network
Corp
(d)
22,415
725
Fox
Corp
-
A
Shares
30,598
891
Fox
Corp
-
B
Shares
14,023
405
News
Corp
-
A
Shares
35,439
637
News
Corp
-
B
Shares
11,039
196
ViacomCBS
Inc
-
Class
B
51,214
1,908
Walt
Disney
Co/The
(d)
164,116
29,735
$
66,072
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2020
See
accompanying
notes.
182
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Mining
-
0.27%
Freeport-McMoRan
Inc
131,699
$
3,427
Newmont
Corp
72,822
4,361
$
7,788
Miscellaneous
Manufacturers
-
1.21%
3M
Co
52,287
9,139
A
O
Smith
Corp
12,276
673
Eaton
Corp
PLC
36,132
4,341
General
Electric
Co
794,059
8,576
Illinois
Tool
Works
Inc
26,110
5,323
Parker-Hannifin
Corp
11,677
3,181
Textron
Inc
20,747
1,003
Trane
Technologies
PLC
21,766
3,159
$
35,395
Office
&
Business
Equipment
-
0.08%
Xerox
Holdings
Corp
15,106
350
Zebra
Technologies
Corp
(d)
4,834
1,858
$
2,208
Oil
&
Gas
-
1.81%
Apache
Corp
34,217
486
Cabot
Oil
&
Gas
Corp
36,130
588
Chevron
Corp
174,501
14,737
Concho
Resources
Inc
17,794
1,038
ConocoPhillips
96,808
3,871
Devon
Energy
Corp
34,675
548
Diamondback
Energy
Inc
14,320
693
EOG
Resources
Inc
52,882
2,637
Exxon
Mobil
Corp
383,278
15,799
Hess
Corp
24,774
1,308
HollyFrontier
Corp
13,511
349
Marathon
Oil
Corp
71,557
477
Marathon
Petroleum
Corp
58,981
2,440
Occidental
Petroleum
Corp
75,970
1,315
Phillips
66
39,595
2,769
Pioneer
Natural
Resources
Co
14,904
1,698
Valero
Energy
Corp
36,965
2,091
$
52,844
Oil
&
Gas
Services
-
0.22%
Baker
Hughes
Co
62,166
1,296
Halliburton
Co
80,133
1,514
National
Oilwell
Varco
Inc
35,195
483
Schlumberger
NV
126,185
2,755
TechnipFMC
PLC
38,294
360
$
6,408
Packaging
&
Containers
-
0.25%
Amcor
PLC
142,179
1,673
Ball
Corp
29,651
2,763
Packaging
Corp
of
America
8,596
1,186
Sealed
Air
Corp
14,064
644
Westrock
Co
23,810
1,036
$
7,302
Pharmaceuticals
-
5.39%
AbbVie
Inc
160,035
17,148
AmerisourceBergen
Corp
13,330
1,303
Becton
Dickinson
and
Co
26,291
6,579
Bristol-Myers
Squibb
Co
204,841
12,706
Cardinal
Health
Inc
26,597
1,425
Cigna
Corp
32,748
6,818
CVS
Health
Corp
118,650
8,104
DexCom
Inc
(d)
8,705
3,218
Eli
Lilly
and
Co
71,972
12,152
Henry
Schein
Inc
(d)
12,943
865
Johnson
&
Johnson
238,633
37,556
McKesson
Corp
14,555
2,531
Merck
&
Co
Inc
229,341
18,760
Perrigo
Co
PLC
12,373
553
Pfizer
Inc
503,854
18,547
Viatris
Inc
(d)
109,361
2,049
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pharmaceuticals
(continued)
Zoetis
Inc
43,082
$
7,130
$
157,444
Pipelines
-
0.21%
Kinder
Morgan
Inc
176,478
2,412
ONEOK
Inc
40,284
1,546
Williams
Cos
Inc
/The
110,009
2,206
$
6,164
Real
Estate
-
0.06%
CBRE
Group
Inc
(d)
30,408
1,907
REITs
-
2.31%
Alexandria
Real
Estate
Equities
Inc
11,222
2,000
American
Tower
Corp
40,266
9,038
AvalonBay
Communities
Inc
12,654
2,030
Boston
Properties
Inc
12,839
1,214
Crown
Castle
International
Corp
39,094
6,223
Digital
Realty
Trust
Inc
25,394
3,543
Duke
Realty
Corp
33,717
1,348
Equinix
Inc
8,078
5,769
Equity
Residential
31,045
1,840
Essex
Property
Trust
Inc
5,910
1,403
Extra
Space
Storage
Inc
11,715
1,357
Federal
Realty
Investment
Trust
6,240
531
Healthpeak
Properties
Inc
48,802
1,475
Host
Hotels
&
Resorts
Inc
63,937
935
Iron
Mountain
Inc
26,122
770
Kimco
Realty
Corp
39,205
589
Mid-America
Apartment
Communities
Inc
10,367
1,313
Prologis
Inc
67,009
6,678
Public
Storage
13,787
3,184
Realty
Income
Corp
31,815
1,978
Regency
Centers
Corp
14,304
652
SBA
Communications
Corp
10,074
2,842
Simon
Property
Group
Inc
29,720
2,535
SL
Green
Realty
Corp
6,578
392
UDR
Inc
26,694
1,026
Ventas
Inc
33,954
1,665
Vornado
Realty
Trust
14,216
531
Welltower
Inc
37,828
2,445
Weyerhaeuser
Co
67,662
2,269
$
67,575
Retail
-
5.15%
Advance
Auto
Parts
Inc
6,150
969
AutoZone
Inc
(d)
2,101
2,491
Best
Buy
Co
Inc
20,890
2,085
CarMax
Inc
(d)
14,874
1,405
Chipotle
Mexican
Grill
Inc
(d)
2,537
3,518
Costco
Wholesale
Corp
39,997
15,070
Darden
Restaurants
Inc
11,803
1,406
Dollar
General
Corp
22,209
4,671
Dollar
Tree
Inc
(d)
21,320
2,303
Domino's
Pizza
Inc
3,573
1,370
Gap
Inc
/The
18,648
376
Genuine
Parts
Co
13,077
1,313
Home
Depot
Inc
/The
97,592
25,922
L
Brands
Inc
21,176
788
Lowe's
Cos
Inc
66,420
10,661
McDonald's
Corp
67,543
14,493
O'Reilly
Automotive
Inc
(d)
6,569
2,973
Ross
Stores
Inc
32,272
3,963
Starbucks
Corp
106,393
11,382
Target
Corp
45,394
8,013
Tiffany
&
Co
9,796
1,288
TJX
Cos
Inc
/The
108,834
7,432
Tractor
Supply
Co
10,560
1,485
Ulta
Beauty
Inc
(d)
5,108
1,467
Walgreens
Boots
Alliance
Inc
65,150
2,598
Walmart
Inc
125,670
18,115
Yum!
Brands
Inc
27,346
2,969
$
150,526
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2020
See
accompanying
notes.
183
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Savings
&
Loans
-
0.02%
People's
United
Financial
Inc
38,514
$
498
Semiconductors
-
5.06%
Advanced
Micro
Devices
Inc
(d)
109,021
9,998
Analog
Devices
Inc
33,493
4,948
Applied
Materials
Inc
82,787
7,144
Broadcom
Inc
36,667
16,055
Intel
Corp
371,473
18,507
IPG
Photonics
Corp
(d)
3,237
724
KLA
Corp
14,003
3,625
Lam
Research
Corp
13,055
6,165
Maxim
Integrated
Products
Inc
24,231
2,148
Microchip
Technology
Inc
23,601
3,260
Micron
Technology
Inc
(d)
100,912
7,587
NVIDIA
Corp
56,112
29,302
Qorvo
Inc
(d)
10,339
1,719
QUALCOMM
Inc
102,523
15,618
Skyworks
Solutions
Inc
15,055
2,302
Teradyne
Inc
15,053
1,805
Texas
Instruments
Inc
83,209
13,657
Xilinx
Inc
22,220
3,150
$
147,714
Shipbuilding
-
0.02%
Huntington
Ingalls
Industries
Inc
3,670
626
Software
-
9.67%
Activision
Blizzard
Inc
70,058
6,505
Adobe
Inc
(d)
43,486
21,748
Akamai
Technologies
Inc
(d)
14,756
1,549
ANSYS
Inc
(d)
7,786
2,833
Autodesk
Inc
(d)
19,933
6,086
Broadridge
Financial
Solutions
Inc
10,479
1,605
Cadence
Design
Systems
Inc
(d)
25,284
3,450
Cerner
Corp
27,792
2,181
Citrix
Systems
Inc
11,161
1,452
Electronic
Arts
Inc
26,295
3,776
Fidelity
National
Information
Services
Inc
56,248
7,957
Fiserv
Inc
(d)
52,120
5,934
Intuit
Inc
23,818
9,047
Jack
Henry
&
Associates
Inc
6,918
1,121
Microsoft
Corp
685,338
152,433
MSCI
Inc
7,516
3,356
Oracle
Corp
171,945
11,123
Paychex
Inc
29,004
2,703
Paycom
Software
Inc
(d)
4,442
2,009
salesforce.com
Inc
(d)
82,942
18,457
ServiceNow
Inc
(d)
17,684
9,734
Synopsys
Inc
(d)
13,836
3,587
Take-Two
Interactive
Software
Inc
(d)
10,427
2,167
Tyler
Technologies
Inc
(d)
3,657
1,596
$
282,409
Telecommunications
-
2.50%
Arista
Networks
Inc
(d)
4,938
1,435
AT&T
Inc
645,953
18,578
CenturyLink
Inc
89,506
873
Cisco
Systems
Inc
383,031
17,141
Corning
Inc
69,256
2,493
Juniper
Networks
Inc
29,890
673
Motorola
Solutions
Inc
15,367
2,613
T-Mobile
US
Inc
(d)
52,881
7,131
Verizon
Communications
Inc
375,107
22,037
$
72,974
Textiles
-
0.03%
Mohawk
Industries
Inc
(d)
5,422
764
Toys,
Games
&
Hobbies
-
0.04%
Hasbro
Inc
11,552
1,081
Transportation
-
1.65%
CH
Robinson
Worldwide
Inc
12,323
1,157
CSX
Corp
69,326
6,291
Expeditors
International
of
Washington
Inc
15,344
1,459
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Transportation
(continued)
FedEx
Corp
21,900
$
5,686
JB
Hunt
Transport
Services
Inc
7,568
1,034
Kansas
City
Southern
8,485
1,732
Norfolk
Southern
Corp
23,024
5,471
Old
Dominion
Freight
Line
Inc
8,721
1,702
Union
Pacific
Corp
61,085
12,719
United
Parcel
Service
Inc
64,833
10,918
$
48,169
Water
-
0.09%
American
Water
Works
Co
Inc
16,431
2,522
TOTAL
COMMON
STOCKS
$
2,869,811
Total
Investments
$
2,924,907
Other
Assets
and
Liabilities
- (0.15)%
(4,264)
TOTAL
NET
ASSETS
-
100.00%
$
2,920,643
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$394
or
0.01%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
Security
or
a
portion
of
the
security
was
pledged
to
cover
margin
requirements
for
futures
contracts.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$5,072
or
0.17%
of
net
assets.
Portfolio
Summary (unaudited)
Sector
Percent
Technology
22.81%
Consumer,
Non-cyclical
20.56%
Communications
15.98%
Financial
14.21%
Consumer,
Cyclical
9.55%
Industrial
8.11%
Utilities
2.71%
Energy
2.24%
Basic
Materials
2.09%
Money
Market
Funds
1.70%
Investment
Companies
0.19%
Other
Assets
and
Liabilities
(0.15)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2020
See
accompanying
notes.
184
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
34,952
$
750,981
$
736,868
$
49,065
$
34,952
$
750,981
$
736,868
$
49,065
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
119
$
—
$
—
$
—
$
119
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini
;
March
2021
Long
263
$
49,297
$
1,000
Total
$
1,000
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2020
See
accompanying
notes.
185
INVESTMENT
COMPANIES
-
6
.84
%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0
.08
%
iShares
Core
S&P
500
ETF
538
$
202
Money
Market
Funds
-
6
.76
%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.01%
(a),(b)
69,069
69
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
15,820,074
15,820
$
15,889
TOTAL
INVESTMENT
COMPANIES
$
16,091
COMMON
STOCKS
-
93
.29
%
Shares
Held
Value
(000's)
Advertising
-
0
.07
%
Interpublic
Group
of
Cos
Inc/The
2,702
$
64
Omnicom
Group
Inc
1,490
93
$
157
Aerospace
&
Defense
-
1
.45
%
Boeing
Co/The
3,675
787
General
Dynamics
Corp
1,610
240
Howmet
Aerospace
Inc
2,704
77
L3Harris
Technologies
Inc
1,456
275
Lockheed
Martin
Corp
1,706
606
Northrop
Grumman
Corp
1,075
327
Raytheon
Technologies
Corp
10,520
752
Teledyne
Technologies
Inc
(d)
257
101
TransDigm
Group
Inc
(d)
378
234
$
3,399
Agriculture
-
0
.69
%
Altria
Group
Inc
12,873
528
Archer-Daniels-Midland
Co
3,853
194
Philip
Morris
International
Inc
10,788
893
$
1,615
Airlines
-
0
.24
%
Alaska
Air
Group
Inc
855
44
American
Airlines
Group
Inc
(e)
4,229
67
Delta
Air
Lines
Inc
4,419
178
Southwest
Airlines
Co
4,089
190
United
Airlines
Holdings
Inc
(d)
2,028
88
$
567
Apparel
-
0
.70
%
Hanesbrands
Inc
2,414
35
NIKE
Inc
8,692
1,230
PVH
Corp
493
46
Ralph
Lauren
Corp
334
35
Tapestry
Inc
1,922
60
Under
Armour
Inc
-
Class
A
(d)
1,306
22
Under
Armour
Inc
-
Class
C
(d)
1,348
20
VF
Corp
2,215
189
$
1,637
Automobile
Manufacturers
-
2
.02
%
Cummins
Inc
1,025
233
Ford
Motor
Co
27,068
238
General
Motors
Co
8,725
363
PACCAR
Inc
2,400
207
Tesla
Inc
(d)
5,253
3,707
$
4,748
Automobile
Parts
&
Equipment
-
0
.13
%
Aptiv
PLC
1,870
244
BorgWarner
Inc
1,693
65
$
309
Banks
-
4
.38
%
Bank
of
America
Corp
52,732
1,598
Bank
of
New
York
Mellon
Corp/The
5,647
240
Citigroup
Inc
14,422
889
Citizens
Financial
Group
Inc
2,959
106
Comerica
Inc
963
54
Fifth
Third
Bancorp
4,935
136
First
Republic
Bank/CA
1,205
177
Goldman
Sachs
Group
Inc/The
2,383
629
Huntington
Bancshares
Inc/OH
7,047
89
JPMorgan
Chase
&
Co
21,115
2,683
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Banks
(continued)
KeyCorp
6,764
$
111
M&T
Bank
Corp
888
113
Morgan
Stanley
9,901
679
Northern
Trust
Corp
1,442
134
PNC
Financial
Services
Group
Inc/The
2,935
437
Regions
Financial
Corp
6,653
107
State
Street
Corp
2,445
178
SVB
Financial
Group
(d)
360
140
Truist
Financial
Corp
9,339
448
US
Bancorp
9,496
442
Wells
Fargo
&
Co
28,640
864
Zions
Bancorp
NA
1,136
49
$
10,303
Beverages
-
1
.51
%
Brown-Forman
Corp
-
B
Shares
1,264
100
Coca-Cola
Co/The
26,792
1,469
Constellation
Brands
Inc
1,174
257
Molson
Coors
Beverage
Co
1,303
59
Monster
Beverage
Corp
(d)
2,560
237
PepsiCo
Inc
9,573
1,420
$
3,542
Biotechnology
-
1
.48
%
Alexion
Pharmaceuticals
Inc
(d)
1,515
236
Amgen
Inc
4,032
927
Biogen
Inc
(d)
1,065
261
Bio-Rad
Laboratories
Inc
(d)
149
87
Corteva
Inc
5,162
200
Gilead
Sciences
Inc
8,683
506
Illumina
Inc
(d)
1,013
375
Incyte
Corp
(d)
1,290
112
Regeneron
Pharmaceuticals
Inc
(d)
727
351
Vertex
Pharmaceuticals
Inc
(d)
1,802
426
$
3,481
Building
Materials
-
0
.38
%
Carrier
Global
Corp
5,645
213
Fortune
Brands
Home
&
Security
Inc
962
82
Johnson
Controls
International
plc
5,015
234
Martin
Marietta
Materials
Inc
433
123
Masco
Corp
1,813
100
Vulcan
Materials
Co
918
136
$
888
Chemicals
-
1
.62
%
Air
Products
and
Chemicals
Inc
1,530
418
Albemarle
Corp
737
109
Celanese
Corp
810
105
CF
Industries
Holdings
Inc
1,482
57
Dow
Inc
5,138
285
DuPont
de
Nemours
Inc
5,084
362
Eastman
Chemical
Co
939
94
Ecolab
Inc
1,721
372
FMC
Corp
899
103
International
Flavors
&
Fragrances
Inc
741
81
Linde
PLC
3,637
959
LyondellBasell
Industries
NV
1,781
163
Mosaic
Co/The
2,390
55
PPG
Industries
Inc
1,636
236
Sherwin-Williams
Co/The
567
417
$
3,816
Commercial
Services
-
2
.27
%
Automatic
Data
Processing
Inc
2,970
523
Cintas
Corp
610
215
Equifax
Inc
843
162
FleetCor
Technologies
Inc
(d)
578
158
Gartner
Inc
(d)
618
99
Global
Payments
Inc
2,074
447
IHS
Markit
Ltd
2,582
232
MarketAxess
Holdings
Inc
264
151
Moody's
Corp
1,120
325
Nielsen
Holdings
PLC
2,473
52
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2020
See
accompanying
notes.
186
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
PayPal
Holdings
Inc
(d)
8,117
$
1,901
Quanta
Services
Inc
962
69
Robert
Half
International
Inc
789
49
Rollins
Inc
1,532
60
S&P
Global
Inc
1,667
548
United
Rentals
Inc
(d)
500
116
Verisk
Analytics
Inc
1,126
234
$
5,341
Computers
-
7
.59
%
Accenture
PLC
-
Class
A
4,388
1,146
Apple
Inc
110,714
14,691
Cognizant
Technology
Solutions
Corp
3,704
304
DXC
Technology
Co
1,763
45
Fortinet
Inc
(d)
933
139
Hewlett
Packard
Enterprise
Co
8,915
106
HP
Inc
9,515
234
International
Business
Machines
Corp
6,172
777
Leidos
Holdings
Inc
927
97
NetApp
Inc
1,548
102
Seagate
Technology
PLC
1,549
96
Western
Digital
Corp
2,108
117
$
17,854
Consumer
Products
-
0
.31
%
Avery
Dennison
Corp
577
90
Church
&
Dwight
Co
Inc
1,721
150
Clorox
Co/The
873
176
Kimberly-Clark
Corp
2,356
318
$
734
Cosmetics
&
Personal
Care
-
1
.41
%
Colgate-Palmolive
Co
5,938
508
Estee
Lauder
Cos
Inc/The
1,569
417
Procter
&
Gamble
Co/The
17,177
2,390
$
3,315
Distribution
&
Wholesale
-
0
.29
%
Copart
Inc
(d)
1,439
183
Fastenal
Co
3,978
194
LKQ
Corp
(d)
1,939
68
Pool
Corp
279
104
WW
Grainger
Inc
313
128
$
677
Diversified
Financial
Services
-
3
.78
%
American
Express
Co
4,518
546
Ameriprise
Financial
Inc
816
159
BlackRock
Inc
983
709
Capital
One
Financial
Corp
3,168
313
Cboe
Global
Markets
Inc
748
70
Charles
Schwab
Corp/The
10,334
548
CME
Group
Inc
2,487
453
Discover
Financial
Services
2,123
192
Franklin
Resources
Inc
1,882
47
Intercontinental
Exchange
Inc
3,888
448
Invesco
Ltd
2,610
46
Mastercard
Inc
6,094
2,175
Nasdaq
Inc
795
106
Raymond
James
Financial
Inc
845
81
Synchrony
Financial
3,762
131
T
Rowe
Price
Group
Inc
1,568
237
Visa
Inc
11,745
2,569
Western
Union
Co/The
2,848
62
$
8,892
Electric
-
2
.43
%
AES
Corp/The
4,607
108
Alliant
Energy
Corp
1,730
89
Ameren
Corp
1,711
134
American
Electric
Power
Co
Inc
3,438
286
CenterPoint
Energy
Inc
3,775
82
CMS
Energy
Corp
1,984
121
Consolidated
Edison
Inc
2,368
171
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Electric
(continued)
Dominion
Energy
Inc
5,652
$
425
DTE
Energy
Co
1,341
163
Duke
Energy
Corp
5,099
467
Edison
International
2,622
165
Entergy
Corp
1,387
139
Evergy
Inc
1,571
87
Eversource
Energy
2,375
205
Exelon
Corp
6,758
285
FirstEnergy
Corp
3,759
115
NextEra
Energy
Inc
13,571
1,047
NRG
Energy
Inc
1,692
64
Pinnacle
West
Capital
Corp
781
62
PPL
Corp
5,327
150
Public
Service
Enterprise
Group
Inc
3,504
204
Sempra
Energy
1,999
255
Southern
Co/The
7,316
449
WEC
Energy
Group
Inc
2,185
201
Xcel
Energy
Inc
3,640
243
$
5,717
Electrical
Components
&
Equipment
-
0
.22
%
AMETEK
Inc
1,593
193
Emerson
Electric
Co
4,144
333
$
526
Electronics
-
1
.34
%
Agilent
Technologies
Inc
2,119
251
Allegion
plc
637
74
Amphenol
Corp
2,072
271
FLIR
Systems
Inc
909
40
Fortive
Corp
2,336
166
Garmin
Ltd
1,033
124
Honeywell
International
Inc
4,862
1,034
Keysight
Technologies
Inc
(d)
1,284
170
Mettler-Toledo
International
Inc
(d)
165
188
PerkinElmer
Inc
776
111
Roper
Technologies
Inc
727
314
TE
Connectivity
Ltd
2,291
277
Vontier
Corp
(d)
933
31
Waters
Corp
(d)
430
106
$
3,157
Engineering
&
Construction
-
0
.04
%
Jacobs
Engineering
Group
Inc
898
98
Entertainment
-
0
.03
%
Live
Nation
Entertainment
Inc
(d)
990
73
Environmental
Control
-
0
.22
%
Pentair
PLC
1,153
61
Republic
Services
Inc
1,458
140
Waste
Management
Inc
2,693
318
$
519
Food
-
1
.03
%
Campbell
Soup
Co
1,403
68
Conagra
Brands
Inc
3,384
123
General
Mills
Inc
4,235
249
Hershey
Co/The
1,022
156
Hormel
Foods
Corp
1,945
91
J
M
Smucker
Co/The
790
91
Kellogg
Co
1,762
110
Kraft
Heinz
Co/The
4,489
155
Kroger
Co/The
5,365
170
Lamb
Weston
Holdings
Inc
1,014
80
McCormick
&
Co
Inc/MD
1,723
165
Mondelez
International
Inc
9,907
579
Sysco
Corp
3,529
262
Tyson
Foods
Inc
2,038
131
$
2,430
Forest
Products
&
Paper
-
0
.06
%
International
Paper
Co
2,723
135
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2020
See
accompanying
notes.
187
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Gas
-
0
.06
%
Atmos
Energy
Corp
870
$
83
NiSource
Inc
2,654
61
$
144
Hand
&
Machine
Tools
-
0
.11
%
Snap-on
Inc
375
64
Stanley
Black
&
Decker
Inc
1,110
198
$
262
Healthcare
-
Products
-
3
.78
%
Abbott
Laboratories
12,277
1,344
ABIOMED
Inc
(d)
313
101
Align
Technology
Inc
(d)
497
266
Baxter
International
Inc
3,537
284
Boston
Scientific
Corp
(d)
9,919
357
Cooper
Cos
Inc/The
341
124
Danaher
Corp
4,380
973
DENTSPLY
SIRONA
Inc
1,514
79
Edwards
Lifesciences
Corp
(d)
4,318
394
Hologic
Inc
(d)
1,780
130
IDEXX
Laboratories
Inc
(d)
592
296
Intuitive
Surgical
Inc
(d)
815
667
Medtronic
PLC
9,324
1,092
ResMed
Inc
1,004
213
STERIS
PLC
591
112
Stryker
Corp
2,265
555
Teleflex
Inc
324
133
Thermo
Fisher
Scientific
Inc
2,747
1,280
Varian
Medical
Systems
Inc
(d)
633
111
West
Pharmaceutical
Services
Inc
513
145
Zimmer
Biomet
Holdings
Inc
1,436
221
$
8,877
Healthcare
-
Services
-
1
.92
%
Anthem
Inc
1,723
553
Catalent
Inc
(d)
1,141
119
Centene
Corp
(d)
4,016
241
DaVita
Inc
(d)
512
60
HCA
Healthcare
Inc
1,829
301
Humana
Inc
918
377
IQVIA
Holdings
Inc
(d)
1,328
238
Laboratory
Corp
of
America
Holdings
(d)
675
137
Quest
Diagnostics
Inc
934
111
UnitedHealth
Group
Inc
6,573
2,305
Universal
Health
Services
Inc
539
74
$
4,516
Home
Builders
-
0
.21
%
DR
Horton
Inc
2,297
159
Lennar
Corp
-
A
Shares
1,906
145
NVR
Inc
(d)
24
98
PulteGroup
Inc
1,857
80
$
482
Home
Furnishings
-
0
.05
%
Leggett
&
Platt
Inc
918
41
Whirlpool
Corp
434
78
$
119
Housewares
-
0
.02
%
Newell
Brands
Inc
2,617
56
Insurance
-
3
.06
%
Aflac
Inc
4,524
201
Allstate
Corp/The
2,106
232
American
International
Group
Inc
5,968
226
Aon
PLC
1,583
334
Arthur
J
Gallagher
&
Co
1,331
165
Assurant
Inc
410
56
Berkshire
Hathaway
Inc
-
Class
B
(d)
13,481
3,126
Chubb
Ltd
3,128
482
Cincinnati
Financial
Corp
1,037
91
Everest
Re
Group
Ltd
277
65
Globe
Life
Inc
667
63
Hartford
Financial
Services
Group
Inc/The
2,483
122
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
(continued)
Lincoln
National
Corp
1,258
$
63
Loews
Corp
1,619
73
Marsh
&
McLennan
Cos
Inc
3,514
411
MetLife
Inc
5,300
249
Principal
Financial
Group
Inc
1,770
88
Progressive
Corp/The
4,057
401
Prudential
Financial
Inc
2,744
214
Travelers
Cos
Inc/The
1,755
246
Unum
Group
1,411
32
W
R
Berkley
Corp
976
65
Willis
Towers
Watson
PLC
894
188
$
7,193
Internet
-
10
.58
%
Alphabet
Inc
-
A
Shares
(d)
2,083
3,651
Alphabet
Inc
-
C
Shares
(d)
2,011
3,523
Amazon.com
Inc
(d)
2,955
9,624
Booking
Holdings
Inc
(d)
284
633
CDW
Corp/DE
990
130
eBay
Inc
4,537
228
Etsy
Inc
(d)
872
155
Expedia
Group
Inc
942
125
F5
Networks
Inc
(d)
427
75
Facebook
Inc
(d)
16,653
4,549
Netflix
Inc
(d)
3,062
1,656
NortonLifeLock
Inc
4,101
85
Twitter
Inc
(d)
5,510
298
VeriSign
Inc
(d)
696
151
$
24,883
Iron
&
Steel
-
0
.05
%
Nucor
Corp
2,092
111
Leisure
Products
&
Services
-
0
.11
%
Carnival
Corp
5,150
111
Norwegian
Cruise
Line
Holdings
Ltd
(d)
2,185
56
Royal
Caribbean
Cruises
Ltd
1,288
96
$
263
Lodging
-
0
.32
%
Hilton
Worldwide
Holdings
Inc
1,922
214
Las
Vegas
Sands
Corp
2,276
136
Marriott
International
Inc/MD
1,842
243
MGM
Resorts
International
2,840
89
Wynn
Resorts
Ltd
673
76
$
758
Machinery
-
Construction
&
Mining
-
0
.29
%
Caterpillar
Inc
3,764
685
Machinery
-
Diversified
-
0
.67
%
Deere
&
Co
2,171
584
Dover
Corp
998
126
Flowserve
Corp
902
33
IDEX
Corp
524
104
Ingersoll
Rand
Inc
(d)
2,575
117
Otis
Worldwide
Corp
2,822
191
Rockwell
Automation
Inc
805
202
Westinghouse
Air
Brake
Technologies
Corp
1,239
91
Xylem
Inc/NY
1,249
127
$
1,575
Media
-
2
.15
%
Charter
Communications
Inc
(d)
1,012
670
Comcast
Corp
-
Class
A
31,628
1,657
Discovery
Inc
-
A
Shares
(d)
1,111
33
Discovery
Inc
-
C
Shares
(d)
2,043
54
DISH
Network
Corp
(d)
1,713
55
Fox
Corp
-
A
Shares
2,339
68
Fox
Corp
-
B
Shares
1,072
31
News
Corp
-
A
Shares
2,709
49
News
Corp
-
B
Shares
844
15
ViacomCBS
Inc
-
Class
B
3,914
146
Walt
Disney
Co/The
(d)
12,541
2,272
$
5,050
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2020
See
accompanying
notes.
188
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Mining
-
0
.25
%
Freeport-McMoRan
Inc
10,065
$
262
Newmont
Corp
5,566
333
$
595
Miscellaneous
Manufacturers
-
1
.15
%
3M
Co
3,995
698
A
O
Smith
Corp
937
51
Eaton
Corp
PLC
2,761
332
General
Electric
Co
60,679
655
Illinois
Tool
Works
Inc
1,996
407
Parker-Hannifin
Corp
892
243
Textron
Inc
1,586
77
Trane
Technologies
PLC
1,664
242
$
2,705
Office
&
Business
Equipment
-
0
.07
%
Xerox
Holdings
Corp
1,155
27
Zebra
Technologies
Corp
(d)
371
142
$
169
Oil
&
Gas
-
1
.72
%
Apache
Corp
2,615
37
Cabot
Oil
&
Gas
Corp
2,760
45
Chevron
Corp
13,334
1,126
Concho
Resources
Inc
1,360
79
ConocoPhillips
7,398
296
Devon
Energy
Corp
2,649
42
Diamondback
Energy
Inc
1,094
53
EOG
Resources
Inc
4,042
202
Exxon
Mobil
Corp
(f)
29,288
1,207
Hess
Corp
1,894
100
HollyFrontier
Corp
1,033
27
Marathon
Oil
Corp
5,469
36
Marathon
Petroleum
Corp
4,508
186
Occidental
Petroleum
Corp
5,805
100
Phillips
66
3,027
212
Pioneer
Natural
Resources
Co
1,139
130
Valero
Energy
Corp
2,825
160
$
4,038
Oil
&
Gas
Services
-
0
.21
%
Baker
Hughes
Co
4,750
99
Halliburton
Co
6,123
116
National
Oilwell
Varco
Inc
2,689
37
Schlumberger
NV
9,643
211
TechnipFMC
PLC
2,926
27
$
490
Packaging
&
Containers
-
0
.24
%
Amcor
PLC
10,865
128
Ball
Corp
2,265
211
Packaging
Corp
of
America
657
91
Sealed
Air
Corp
1,075
49
Westrock
Co
1,820
79
$
558
Pharmaceuticals
-
5
.12
%
AbbVie
Inc
12,229
1,310
AmerisourceBergen
Corp
1,018
100
Becton
Dickinson
and
Co
2,008
502
Bristol-Myers
Squibb
Co
15,653
971
Cardinal
Health
Inc
2,033
109
Cigna
Corp
2,503
521
CVS
Health
Corp
9,067
619
DexCom
Inc
(d)
666
246
Eli
Lilly
and
Co
5,501
929
Henry
Schein
Inc
(d)
989
66
Johnson
&
Johnson
18,235
2,870
McKesson
Corp
1,113
194
Merck
&
Co
Inc
17,525
1,434
Perrigo
Co
PLC
946
42
Pfizer
Inc
38,503
1,417
Viatris
Inc
(d)
8,357
157
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pharmaceuticals
(continued)
Zoetis
Inc
3,293
$
545
$
12,032
Pipelines
-
0
.20
%
Kinder
Morgan
Inc
13,486
184
ONEOK
Inc
3,079
118
Williams
Cos
Inc/The
8,406
169
$
471
Real
Estate
-
0
.06
%
CBRE
Group
Inc
(d)
2,324
146
REITs
-
2
.20
%
Alexandria
Real
Estate
Equities
Inc
856
153
American
Tower
Corp
3,076
690
AvalonBay
Communities
Inc
966
155
Boston
Properties
Inc
981
93
Crown
Castle
International
Corp
2,986
475
Digital
Realty
Trust
Inc
1,939
271
Duke
Realty
Corp
2,577
103
Equinix
Inc
618
441
Equity
Residential
2,373
141
Essex
Property
Trust
Inc
452
107
Extra
Space
Storage
Inc
895
104
Federal
Realty
Investment
Trust
476
41
Healthpeak
Properties
Inc
3,730
113
Host
Hotels
&
Resorts
Inc
4,887
71
Iron
Mountain
Inc
1,997
59
Kimco
Realty
Corp
2,996
45
Mid-America
Apartment
Communities
Inc
792
100
Prologis
Inc
5,121
510
Public
Storage
1,054
243
Realty
Income
Corp
2,430
151
Regency
Centers
Corp
1,093
50
SBA
Communications
Corp
770
217
Simon
Property
Group
Inc
2,270
194
SL
Green
Realty
Corp
503
30
UDR
Inc
2,040
78
Ventas
Inc
2,595
127
Vornado
Realty
Trust
1,087
41
Welltower
Inc
2,891
187
Weyerhaeuser
Co
5,171
173
$
5,163
Retail
-
4
.89
%
Advance
Auto
Parts
Inc
469
74
AutoZone
Inc
(d)
161
191
Best
Buy
Co
Inc
1,596
159
CarMax
Inc
(d)
1,137
107
Chipotle
Mexican
Grill
Inc
(d)
194
269
Costco
Wholesale
Corp
3,058
1,152
Darden
Restaurants
Inc
902
107
Dollar
General
Corp
1,698
357
Dollar
Tree
Inc
(d)
1,630
176
Domino's
Pizza
Inc
273
105
Gap
Inc/The
1,426
29
Genuine
Parts
Co
999
100
Home
Depot
Inc/The
7,457
1,981
L
Brands
Inc
1,619
60
Lowe's
Cos
Inc
5,076
815
McDonald's
Corp
5,162
1,108
O'Reilly
Automotive
Inc
(d)
503
228
Ross
Stores
Inc
2,466
303
Starbucks
Corp
8,130
870
Target
Corp
3,469
612
Tiffany
&
Co
748
98
TJX
Cos
Inc/The
8,317
568
Tractor
Supply
Co
807
114
Ulta
Beauty
Inc
(d)
390
112
Walgreens
Boots
Alliance
Inc
4,979
199
Walmart
Inc
9,603
1,384
Yum!
Brands
Inc
2,090
227
$
11,505
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2020
See
accompanying
notes.
189
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Savings
&
Loans
-
0
.02
%
People's
United
Financial
Inc
2,944
$
38
Semiconductors
-
4
.80
%
Advanced
Micro
Devices
Inc
(d)
8,330
764
Analog
Devices
Inc
2,559
378
Applied
Materials
Inc
6,326
546
Broadcom
Inc
2,802
1,227
Intel
Corp
28,387
1,414
IPG
Photonics
Corp
(d)
247
55
KLA
Corp
1,070
277
Lam
Research
Corp
999
472
Maxim
Integrated
Products
Inc
1,852
164
Microchip
Technology
Inc
1,802
249
Micron
Technology
Inc
(d)
7,712
580
NVIDIA
Corp
4,289
2,240
Qorvo
Inc
(d)
790
131
QUALCOMM
Inc
7,834
1,193
Skyworks
Solutions
Inc
1,151
176
Teradyne
Inc
1,151
138
Texas
Instruments
Inc
6,359
1,044
Xilinx
Inc
1,699
241
$
11,289
Shipbuilding
-
0
.02
%
Huntington
Ingalls
Industries
Inc
280
48
Software
-
9
.18
%
Activision
Blizzard
Inc
5,353
497
Adobe
Inc
(d)
3,324
1,662
Akamai
Technologies
Inc
(d)
1,126
118
ANSYS
Inc
(d)
595
216
Autodesk
Inc
(d)
1,524
465
Broadridge
Financial
Solutions
Inc
801
123
Cadence
Design
Systems
Inc
(d)
1,933
264
Cerner
Corp
2,124
167
Citrix
Systems
Inc
853
111
Electronic
Arts
Inc
2,009
289
Fidelity
National
Information
Services
Inc
4,299
608
Fiserv
Inc
(d)
3,983
454
Intuit
Inc
1,821
692
Jack
Henry
&
Associates
Inc
529
86
Microsoft
Corp
(f)
52,377
11,650
MSCI
Inc
576
257
Oracle
Corp
13,139
850
Paychex
Inc
2,216
206
Paycom
Software
Inc
(d)
341
154
salesforce.com
Inc
(d)
6,338
1,410
ServiceNow
Inc
(d)
1,351
744
Synopsys
Inc
(d)
1,057
274
Take-Two
Interactive
Software
Inc
(d)
797
166
Tyler
Technologies
Inc
(d)
280
122
$
21,585
Telecommunications
-
2
.37
%
Arista
Networks
Inc
(d)
377
109
AT&T
Inc
49,361
1,420
CenturyLink
Inc
6,839
67
Cisco
Systems
Inc
29,269
1,310
Corning
Inc
5,293
190
Juniper
Networks
Inc
2,284
51
Motorola
Solutions
Inc
1,174
200
T-Mobile
US
Inc
(d)
4,042
545
Verizon
Communications
Inc
28,665
1,684
$
5,576
Textiles
-
0
.03
%
Mohawk
Industries
Inc
(d)
414
58
Toys,
Games
&
Hobbies
-
0
.04
%
Hasbro
Inc
883
83
Transportation
-
1
.57
%
CH
Robinson
Worldwide
Inc
942
89
CSX
Corp
5,299
481
Expeditors
International
of
Washington
Inc
1,173
112
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Transportation
(continued)
FedEx
Corp
1,673
$
434
JB
Hunt
Transport
Services
Inc
578
79
Kansas
City
Southern
648
132
Norfolk
Southern
Corp
1,760
418
Old
Dominion
Freight
Line
Inc
667
130
Union
Pacific
Corp
4,668
972
United
Parcel
Service
Inc
4,955
834
$
3,681
Water
-
0
.08
%
American
Water
Works
Co
Inc
1,255
193
TOTAL
COMMON
STOCKS
$
219,327
TOTAL
PURCHASED
OPTIONS
-
0.22%
$
506
Total
Investments
$
235,924
Other
Assets
and
Liabilities
- (0.35)%
(
812
)
TOTAL
NET
ASSETS
-
100.00%
$
235,112
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$69
or
0.03%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
Security
or
a
portion
of
the
security
was
pledged
to
cover
margin
requirements
for
futures
contracts.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,592
or
0.68%
of
net
assets.
Portfolio
Summary (unaudited)
Sector
Percent
Technology
21
.64
%
Consumer,
Non-cyclical
19
.52
%
Communications
15
.17
%
Financial
13
.50
%
Consumer,
Cyclical
9
.08
%
Industrial
7
.70
%
Money
Market
Funds
6
.76
%
Utilities
2
.57
%
Energy
2
.13
%
Basic
Materials
1
.98
%
Purchased
Options
0
.22
%
Investment
Companies
0
.08
%
Other
Assets
and
Liabilities
(
0
.35
)
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2020
See
accompanying
notes.
190
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
12,955
$
80,880
$
78,015
$
15,820
$
12,955
$
80,880
$
78,015
$
15,820
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
43
$
—
$
—
$
—
$
43
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Options
Purchased
Options
Outstanding
Counterparty
Contracts/
Shares
Notional
Amount
Exercise
Price
Expiration
Date
Upfront
Payments
Fair
Value
Unrealized
Appreciation/
(Depreciation)
Call
-
S&P
500
Index
N/A
100
$
10
$
3,800
.00
01/19/2021
$
197
$
269
$
72
Put
-
S&P
500
Index
N/A
200
20
$
3,550
.00
01/19/2021
955
237
(
718
)
Total
$
1,152
$
506
$
(
646
)
Written
Options
Outstanding
Counterparty
Contracts/
Shares
Notional
Amount
Exercise
Price
Expiration
Date
Upfront
Receipts
Fair
Value
Unrealized
Appreciation/
(Depreciation)
Call
-
S&P
500
Index
N/A
100
$
10
$
3,840
.00
01/19/2021
$
(
113
)
$
(
136
)
$
(
23
)
Put
-
S&P
500
Index
N/A
200
20
$
3,500
.00
01/19/2021
(
760
)
(
180
)
580
Total
$
(
873
)
$
(
316
)
$
557
Amounts
in
thousands
except
contracts/shares.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini;
March
2021
Long
25
$
4,686
$
95
Total
$
95
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
MidCap
Account
December
31,
2020
See
accompanying
notes.
191
INVESTMENT
COMPANIES
-
0
.26
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0
.26
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
1,606,688
$
1,607
TOTAL
INVESTMENT
COMPANIES
$
1,607
COMMON
STOCKS
-
99
.98
%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
5
.74
%
HEICO
Corp
-
Class
A
65,254
$
7,639
TransDigm
Group
Inc
(b)
46,099
28,529
$
36,168
Banks
-
1
.11
%
First
Republic
Bank/CA
36,110
5,306
M&T
Bank
Corp
13,050
1,661
$
6,967
Beverages
-
0
.54
%
Brown-Forman
Corp
-
B
Shares
42,448
3,372
Building
Materials
-
3
.86
%
Martin
Marietta
Materials
Inc
26,272
7,460
Summit
Materials
Inc
(b)
126,250
2,535
Vulcan
Materials
Co
96,558
14,321
$
24,316
Chemicals
-
0
.59
%
Air
Products
and
Chemicals
Inc
13,560
3,705
Commercial
Services
-
10
.58
%
Bright
Horizons
Family
Solutions
Inc
(b)
18,687
3,233
CoStar
Group
Inc
(b)
15,156
14,008
Everarc
Holdings
Ltd
-
Warrants
(b)
97,671
29
Gartner
Inc
(b)
67,683
10,842
IHS
Markit
Ltd
96,247
8,646
Moody's
Corp
20,016
5,810
S&P
Global
Inc
7,052
2,318
Square
Inc
(b)
18,710
4,072
TransUnion
91,131
9,042
Verisk
Analytics
Inc
41,679
8,652
$
66,652
Distribution
&
Wholesale
-
4
.28
%
Copart
Inc
(b)
149,698
19,049
Fastenal
Co
161,658
7,894
$
26,943
Diversified
Financial
Services
-
1
.29
%
Credit
Acceptance
Corp
(b)
23,513
8,139
Electric
-
2
.52
%
Brookfield
Infrastructure
Partners
LP
222,112
10,972
Brookfield
Renewable
Corp
10,403
606
Brookfield
Renewable
Partners
LP
98,904
4,268
$
15,846
Electronics
-
3
.61
%
Agilent
Technologies
Inc
15,929
1,888
Mettler-Toledo
International
Inc
(b)
8,019
9,139
Roper
Technologies
Inc
27,150
11,704
$
22,731
Entertainment
-
3
.56
%
Live
Nation
Entertainment
Inc
(b)
159,780
11,741
Vail
Resorts
Inc
38,221
10,662
$
22,403
Gas
-
0
.10
%
Brookfield
Infrastructure
Corp
8,953
647
Hand
&
Machine
Tools
-
0
.26
%
Colfax
Corp
(b)
43,129
1,649
Healthcare
-
Products
-
1
.41
%
IDEXX
Laboratories
Inc
(b)
17,702
8,849
Holding
Companies
-
Diversified
-
0
.21
%
Everarc
Holdings
Ltd
(b)
92,882
1,297
Home
Builders
-
2
.22
%
Lennar
Corp
-
A
Shares
83,038
6,330
Lennar
Corp
-
B
Shares
1,086
67
NVR
Inc
(b)
1,855
7,568
$
13,965
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
7
.59
%
Aon
PLC
21,650
$
4,574
Arch
Capital
Group
Ltd
(b)
249,746
9,008
Brown
&
Brown
Inc
173,423
8,222
Fidelity
National
Financial
Inc
198,595
7,763
Markel
Corp
(b)
13,222
13,662
Progressive
Corp/The
46,457
4,594
$
47,823
Internet
-
4
.23
%
VeriSign
Inc
(b)
56,770
12,285
Wix.com
Ltd
(b)
57,530
14,380
$
26,665
Investment
Companies
-
0
.33
%
Brookfield
Business
Partners
LP
12,809
481
Cannae
Holdings
Inc
(b)
36,063
1,596
$
2,077
Lodging
-
3
.22
%
Hilton
Worldwide
Holdings
Inc
143,466
15,962
Hyatt
Hotels
Corp
58,245
4,325
$
20,287
Machinery
-
Diversified
-
0
.15
%
Cognex
Corp
11,746
943
Media
-
4
.78
%
Liberty
Broadband
Corp
-
A
Shares
(b)
19,743
3,111
Liberty
Broadband
Corp
-
C
Shares
(b)
97,458
15,434
Liberty
Media
Corp-Liberty
Formula
One
-
A
Shares
(b)
14,733
560
Liberty
Media
Corp-Liberty
Formula
One
-
C
Shares
(b)
124,868
5,319
Liberty
Media
Corp-Liberty
SiriusXM
-
A
Shares
(b)
29,307
1,266
Liberty
Media
Corp-Liberty
SiriusXM
-
C
Shares
(b)
102,133
4,444
$
30,134
Private
Equity
-
7
.05
%
Brookfield
Asset
Management
Inc
639,890
26,408
KKR
&
Co
Inc
323,896
13,115
Onex
Corp
84,604
4,857
$
44,380
Real
Estate
-
3
.32
%
Brookfield
Property
Partners
LP
77,339
1,119
CBRE
Group
Inc
(b)
194,498
12,199
Howard
Hughes
Corp/The
(b)
62,576
4,939
Kennedy-Wilson
Holdings
Inc
149,521
2,675
$
20,932
REITs
-
2
.89
%
Equinix
Inc
4,464
3,188
SBA
Communications
Corp
49,338
13,920
Vornado
Realty
Trust
29,773
1,111
$
18,219
Retail
-
9
.29
%
CarMax
Inc
(b)
183,624
17,345
Dollar
General
Corp
14,616
3,074
Domino's
Pizza
Inc
20,889
8,010
O'Reilly
Automotive
Inc
(b)
32,072
14,515
Restaurant
Brands
International
Inc
173,477
10,601
Ross
Stores
Inc
40,455
4,968
$
58,513
Semiconductors
-
1
.74
%
Microchip
Technology
Inc
79,270
10,948
Software
-
12
.52
%
ANSYS
Inc
(b)
32,803
11,934
Autodesk
Inc
(b)
61,416
18,753
Black
Knight
Inc
(b)
180,491
15,946
Guidewire
Software
Inc
(b)
81,878
10,540
MSCI
Inc
13,149
5,871
RealPage
Inc
(b)
66,346
5,788
Slack
Technologies
Inc
(b)
99,425
4,200
Schedule
of
Investments
MidCap
Account
December
31,
2020
See
accompanying
notes.
192
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
Tyler
Technologies
Inc
(b)
13,371
$
5,837
$
78,869
Telecommunications
-
0
.99
%
Motorola
Solutions
Inc
36,608
6,225
TOTAL
COMMON
STOCKS
$
629,664
Total
Investments
$
631,271
Other
Assets
and
Liabilities
- (0.24)%
(
1,534
)
TOTAL
NET
ASSETS
-
100.00%
$
629,737
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary (unaudited)
Sector
Percent
Financial
23
.58
%
Consumer,
Cyclical
22
.57
%
Technology
14
.26
%
Industrial
13
.62
%
Consumer,
Non-cyclical
12
.53
%
Communications
10
.00
%
Utilities
2
.62
%
Basic
Materials
0
.59
%
Money
Market
Funds
0
.26
%
Diversified
0
.21
%
Other
Assets
and
Liabilities
(
0
.24
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
252
$
140,506
$
139,151
$
1,607
$
252
$
140,506
$
139,151
$
1,607
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
3
$
—
$
—
$
—
$
3
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Principal
Capital
Appreciation
Account
December
31,
2020
See
accompanying
notes.
193
INVESTMENT
COMPANIES
-
1
.14
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1
.14
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
1,886,750
$
1,887
TOTAL
INVESTMENT
COMPANIES
$
1,887
COMMON
STOCKS
-
99
.14
%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
0
.59
%
Northrop
Grumman
Corp
1,011
$
308
Teledyne
Technologies
Inc
(b)
1,724
676
$
984
Apparel
-
2
.22
%
Deckers
Outdoor
Corp
(b)
8,212
2,355
NIKE
Inc
9,382
1,327
$
3,682
Automobile
Manufacturers
-
0
.91
%
PACCAR
Inc
17,481
1,508
Banks
-
3
.73
%
JPMorgan
Chase
&
Co
32,716
4,157
PNC
Financial
Services
Group
Inc/The
13,553
2,020
$
6,177
Beverages
-
2
.59
%
Keurig
Dr
Pepper
Inc
35,539
1,137
PepsiCo
Inc
21,214
3,146
$
4,283
Chemicals
-
1
.61
%
Air
Products
and
Chemicals
Inc
2,996
819
FMC
Corp
16,125
1,853
$
2,672
Commercial
Services
-
1
.22
%
PayPal
Holdings
Inc
(b)
8,638
2,023
Computers
-
5
.74
%
Apple
Inc
71,738
9,519
Consumer
Products
-
1
.20
%
Church
&
Dwight
Co
Inc
22,785
1,987
Diversified
Financial
Services
-
6
.23
%
Ameriprise
Financial
Inc
4,710
916
BlackRock
Inc
1,987
1,434
Charles
Schwab
Corp/The
34,281
1,818
Discover
Financial
Services
15,983
1,447
Nasdaq
Inc
9,629
1,278
Visa
Inc
15,719
3,438
$
10,331
Electric
-
2
.70
%
NextEra
Energy
Inc
32,176
2,482
Xcel
Energy
Inc
29,938
1,996
$
4,478
Electronics
-
2
.38
%
Honeywell
International
Inc
11,524
2,451
Roper
Technologies
Inc
3,476
1,499
$
3,950
Environmental
Control
-
1
.06
%
Republic
Services
Inc
16,696
1,608
Waste
Connections
Inc
1,478
151
$
1,759
Food
-
0
.86
%
McCormick
&
Co
Inc/MD
14,904
1,425
Healthcare
-
Products
-
4
.04
%
Abbott
Laboratories
15,356
1,681
Edwards
Lifesciences
Corp
(b)
13,306
1,214
Medtronic
PLC
13,870
1,625
Thermo
Fisher
Scientific
Inc
4,665
2,173
$
6,693
Healthcare
-
Services
-
1
.90
%
UnitedHealth
Group
Inc
6,272
2,200
Universal
Health
Services
Inc
6,925
952
$
3,152
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
2
.81
%
Chubb
Ltd
2,598
$
400
Fidelity
National
Financial
Inc
11,171
437
Marsh
&
McLennan
Cos
Inc
18,221
2,132
Progressive
Corp/The
17,045
1,685
$
4,654
Internet
-
8
.75
%
Alphabet
Inc
-
A
Shares
(b)
2,746
4,813
Amazon.com
Inc
(b)
1,825
5,944
Facebook
Inc
(b)
9,935
2,714
Netflix
Inc
(b)
1,891
1,022
$
14,493
Machinery
-
Construction
&
Mining
-
0
.87
%
Epiroc
AB
-
A
Shares
79,579
1,446
Machinery
-
Diversified
-
1
.52
%
Deere
&
Co
9,387
2,526
Media
-
2
.58
%
Comcast
Corp
-
Class
A
37,722
1,977
Nexstar
Media
Group
Inc
14,795
1,615
Walt
Disney
Co/The
(b)
3,728
675
$
4,267
Oil
&
Gas
-
2
.09
%
Chevron
Corp
31,357
2,648
Valero
Energy
Corp
14,387
814
$
3,462
Packaging
&
Containers
-
1
.11
%
Ball
Corp
19,720
1,837
Pharmaceuticals
-
6
.86
%
Becton
Dickinson
and
Co
6,683
1,672
Bristol-Myers
Squibb
Co
29,593
1,836
DexCom
Inc
(b)
1,355
501
Eli
Lilly
and
Co
7,128
1,203
Johnson
&
Johnson
13,098
2,061
Merck
&
Co
Inc
31,125
2,546
Pfizer
Inc
13,108
483
Roche
Holding
AG
ADR
24,305
1,066
$
11,368
REITs
-
3
.16
%
Alexandria
Real
Estate
Equities
Inc
12,075
2,152
American
Tower
Corp
2,565
576
Extra
Space
Storage
Inc
11,828
1,370
Prologis
Inc
11,403
1,137
$
5,235
Retail
-
7
.16
%
Costco
Wholesale
Corp
6,559
2,471
Home
Depot
Inc/The
9,079
2,412
Lululemon
Athletica
Inc
(b)
4,839
1,684
Starbucks
Corp
17,192
1,839
Target
Corp
10,311
1,820
Tractor
Supply
Co
11,605
1,632
$
11,858
Semiconductors
-
6
.52
%
Broadcom
Inc
6,127
2,683
Lam
Research
Corp
4,887
2,308
Microchip
Technology
Inc
11,930
1,647
NVIDIA
Corp
2,929
1,529
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
24,190
2,638
$
10,805
Software
-
11
.56
%
Adobe
Inc
(b)
6,281
3,141
Fair
Isaac
Corp
(b)
4,573
2,337
Fidelity
National
Information
Services
Inc
8,217
1,162
Microsoft
Corp
42,383
9,427
salesforce.com
Inc
(b)
7,418
1,651
ServiceNow
Inc
(b)
2,621
1,443
$
19,161
Schedule
of
Investments
Principal
Capital
Appreciation
Account
December
31,
2020
See
accompanying
notes.
194
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Telecommunications
-
3
.11
%
T-Mobile
US
Inc
(b)
20,905
$
2,819
Verizon
Communications
Inc
39,689
2,332
$
5,151
Transportation
-
2
.06
%
Expeditors
International
of
Washington
Inc
15,325
1,457
Union
Pacific
Corp
9,365
1,950
$
3,407
TOTAL
COMMON
STOCKS
$
164,293
Total
Investments
$
166,180
Other
Assets
and
Liabilities
- (0.28)%
(
466
)
TOTAL
NET
ASSETS
-
100.00%
$
165,714
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary (unaudited)
Sector
Percent
Technology
23
.82
%
Consumer,
Non-cyclical
18
.67
%
Financial
15
.93
%
Communications
14
.44
%
Consumer,
Cyclical
10
.29
%
Industrial
9
.59
%
Utilities
2
.70
%
Energy
2
.09
%
Basic
Materials
1
.61
%
Money
Market
Funds
1
.14
%
Other
Assets
and
Liabilities
(
0
.28
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
2,945
$
29,079
$
30,137
$
1,887
$
2,945
$
29,079
$
30,137
$
1,887
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
11
$
—
$
—
$
—
$
11
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Principal
LifeTime
2010
Account
December
31,
2020
See
accompanying
notes.
195
INVESTMENT
COMPANIES
-
100.02%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
59.01%
Blue
Chip
Fund
(a)
35,027
$
1,224
Core
Fixed
Income
Fund
(a)
1,312,402
13,544
Diversified
International
Fund
(a)
119,044
1,780
Diversified
Real
Asset
Fund
(a)
62,838
756
International
Small
Company
Fund
(a)
31,692
377
LargeCap
Growth
Fund
I
(a)
57,402
1,172
MidCap
Fund
(a),(b)
17,752
641
MidCap
Value
Fund
I
(a)
36,224
544
Origin
Emerging
Markets
Fund
(a)
34,204
464
SmallCap
Growth
Fund
I
(a)
21,554
396
SmallCap
Value
Fund
II
(a)
21,224
240
$
21,138
Principal
Funds,
Inc.
Institutional
Class
-
41.01%
Equity
Income
Fund
(a)
27,482
977
High
Income
Fund
(a)
229,075
2,149
Inflation
Protection
Fund
(a)
155,302
1,469
LargeCap
S&P
500
Index
Fund
(a)
72,893
1,571
LargeCap
Value
Fund
III
(a)
51,998
899
Overseas
Fund
(a)
114,203
1,167
Short-Term
Income
Fund
(a)
517,605
6,460
$
14,692
TOTAL
INVESTMENT
COMPANIES
$
35,830
Total
Investments
$
35,830
Other
Assets
and
Liabilities
- (0.02)%
(6)
TOTAL
NET
ASSETS
-
100.00%
$
35,824
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
70.91%
Domestic
Equity
Funds
21.40%
International
Equity
Funds
5
.60%
Specialty
Funds
2.11%
Other
Assets
and
Liabilities
(0.02)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2010
Account
December
31,
2020
See
accompanying
notes.
196
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
931
$
1,225
$
1,322
$
1,224
Bond
Market
Index
Fund
4,795
1,041
6,129
—
Core
Fixed
Income
Fund
7,452
9,380
3,751
13,544
Diversified
International
Fund
1,198
1,100
819
1,780
Diversified
Real
Asset
Fund
533
395
230
756
Equity
Income
Fund
752
983
874
977
High
Income
Fund
2,075
868
759
2,149
Inflation
Protection
Fund
1,353
570
575
1,469
International
Small
Company
Fund
390
265
319
377
LargeCap
Growth
Fund
I
907
1,630
1,602
1,172
LargeCap
S&P
500
Index
Fund
1,639
1,050
1,415
1,571
LargeCap
Value
Fund
III
759
1,135
944
899
MidCap
Fund
811
396
765
641
MidCap
Value
Fund
I
481
283
268
544
Origin
Emerging
Markets
Fund
—
456
2
464
Overseas
Fund
1,177
831
897
1,167
Short-Term
Income
Fund
5,770
2,843
2,231
6,460
SmallCap
Growth
Fund
I
264
125
116
396
SmallCap
Value
Fund
II
218
104
109
240
$
31,505
$
24,680
$
23,127
$
35,830
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
6
$
149
$
31
$
241
Bond
Market
Index
Fund
—
326
—
(33)
Core
Fixed
Income
Fund
218
11
—
452
Diversified
International
Fund
19
(1)
—
302
Diversified
Real
Asset
Fund
4
7
—
51
Equity
Income
Fund
15
74
—
42
High
Income
Fund
115
(25)
—
(10)
Inflation
Protection
Fund
15
20
—
101
International
Small
Company
Fund
4
10
—
31
LargeCap
Growth
Fund
I
18
515
55
(278)
LargeCap
S&P
500
Index
Fund
38
295
70
2
LargeCap
Value
Fund
III
13
113
—
(164)
MidCap
Fund
—
254
6
(55)
MidCap
Value
Fund
I
7
(10)
—
58
Origin
Emerging
Markets
Fund
3
—
—
10
Overseas
Fund
20
3
—
53
Short-Term
Income
Fund
133
1
9
77
SmallCap
Growth
Fund
I
4
22
14
101
SmallCap
Value
Fund
II
2
15
—
12
$
634
$
1,779
$
185
$
993
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2020
Account
December
31,
2020
See
accompanying
notes.
197
INVESTMENT
COMPANIES
-
100.00%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
62.55%
Blue
Chip
Fund
(a)
287,347
$
10,043
Core
Fixed
Income
Fund
(a)
5,807,038
59,928
Diversified
International
Fund
(a)
1,015,379
15,180
Diversified
Real
Asset
Fund
(a)
308,370
3,710
International
Small
Company
Fund
(a)
273,174
3,253
LargeCap
Growth
Fund
I
(a)
497,790
10,160
MidCap
Fund
(a),(b)
145,584
5,260
MidCap
Value
Fund
I
(a)
292,978
4,403
Origin
Emerging
Markets
Fund
(a)
311,758
4,230
SmallCap
Growth
Fund
I
(a)
179,717
3,298
SmallCap
Value
Fund
II
(a)
176,788
1,996
$
121,461
Principal
Funds,
Inc.
Institutional
Class
-
37.45%
Equity
Income
Fund
(a)
256,703
9,123
High
Income
Fund
(a)
877,614
8,232
Inflation
Protection
Fund
(a)
777,265
7,353
LargeCap
S&P
500
Index
Fund
(a)
482,413
10,401
LargeCap
Value
Fund
III
(a)
524,582
9,070
Overseas
Fund
(a)
969,653
9,910
Short-Term
Income
Fund
(a)
1,492,196
18,623
$
72,712
TOTAL
INVESTMENT
COMPANIES
$
194,173
Total
Investments
$
194,173
Other
Assets
and
Liabilities
- 0.00%
(6
)
TOTAL
NET
ASSETS
-
100.00%
$
194,167
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
56.30%
Domestic
Equity
Funds
32.84%
International
Equity
Funds
8
.95%
Specialty
Funds
1.91%
Other
Assets
and
Liabilities
0.00%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2020
Account
December
31,
2020
See
accompanying
notes.
198
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
8,557
$
4,069
$
4,992
$
10,043
Bond
Market
Index
Fund
22,996
4,880
29,241
—
Core
Fixed
Income
Fund
38,995
36,046
17,194
59,928
Diversified
International
Fund
11,918
6,138
4,985
15,180
Diversified
Real
Asset
Fund
3,372
920
703
3,710
Equity
Income
Fund
7,223
3,230
1,663
9,123
High
Income
Fund
9,252
2,824
3,516
8,232
Inflation
Protection
Fund
7,357
2,589
3,216
7,353
International
Small
Company
Fund
3,757
1,286
1,917
3,253
LargeCap
Growth
Fund
I
8,518
5,543
5,993
10,160
LargeCap
S&P
500
Index
Fund
15,473
4,874
11,611
10,401
LargeCap
Value
Fund
III
7,202
3,446
1,671
9,070
MidCap
Fund
7,471
1,194
4,574
5,260
MidCap
Value
Fund
I
4,757
994
1,580
4,403
Origin
Emerging
Markets
Fund
—
4,153
16
4,230
Overseas
Fund
11,692
4,327
5,924
9,910
Short-Term
Income
Fund
17,212
8,338
7,140
18,623
SmallCap
Growth
Fund
I
2,512
555
674
3,298
SmallCap
Value
Fund
II
2,216
422
683
1,996
$
190,480
$
95,828
$
107,293
$
194,173
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
50
$
1,403
$
258
$
1,006
Bond
Market
Index
Fund
—
1,715
—
(350)
Core
Fixed
Income
Fund
1,014
31
—
2,050
Diversified
International
Fund
168
(165)
—
2,274
Diversified
Real
Asset
Fund
20
1
—
120
Equity
Income
Fund
142
180
—
153
High
Income
Fund
469
(336)
—
8
Inflation
Protection
Fund
78
13
—
610
International
Small
Company
Fund
40
48
—
79
LargeCap
Growth
Fund
I
163
1,469
489
623
LargeCap
S&P
500
Index
Fund
254
3,587
467
(1,922)
LargeCap
Value
Fund
III
135
42
—
51
MidCap
Fund
—
1,455
54
(286)
MidCap
Value
Fund
I
61
(14)
—
246
Origin
Emerging
Markets
Fund
29
—
—
93
Overseas
Fund
173
(35)
—
(150)
Short-Term
Income
Fund
392
4
28
209
SmallCap
Growth
Fund
I
33
145
115
760
SmallCap
Value
Fund
II
15
13
—
28
$
3,236
$
9,556
$
1,411
$
5,602
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2030
Account
December
31,
2020
See
accompanying
notes.
199
INVESTMENT
COMPANIES
-
100
.00
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
67
.66
%
Blue
Chip
Fund
(a)
440,064
$
15,380
Core
Fixed
Income
Fund
(a)
5,650,660
58,315
Diversified
International
Fund
(a)
1,656,751
24,768
Diversified
Real
Asset
Fund
(a)
375,891
4,522
International
Small
Company
Fund
(a)
445,142
5,302
LargeCap
Growth
Fund
I
(a)
777,234
15,863
MidCap
Fund
(a),(b)
225,985
8,165
MidCap
Value
Fund
I
(a)
470,919
7,078
Origin
Emerging
Markets
Fund
(a)
493,704
6,700
SmallCap
Growth
Fund
I
(a)
274,144
5,030
SmallCap
Value
Fund
II
(a)
295,900
3,341
$
154,464
Principal
Funds,
Inc.
Institutional
Class
-
32
.34
%
Equity
Income
Fund
(a)
398,551
14,164
High
Income
Fund
(a)
768,664
7,210
Inflation
Protection
Fund
(a)
491,372
4,648
LargeCap
S&P
500
Index
Fund
(a)
804,524
17,346
LargeCap
Value
Fund
III
(a)
834,245
14,424
Overseas
Fund
(a)
1,569,549
16,041
$
73,833
TOTAL
INVESTMENT
COMPANIES
$
228,297
Total
Investments
$
228,297
Other
Assets
and
Liabilities
- 0.00%
(
6
)
TOTAL
NET
ASSETS
-
100.00%
$
228,291
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
44
.15
%
Fixed
Income
Funds
41
.58
%
International
Equity
Funds
12
.29
%
Specialty
Funds
1
.98
%
Other
Assets
and
Liabilities
0
.00
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2030
Account
December
31,
2020
See
accompanying
notes.
200
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
5,396
$
10,124
$
2,005
$
15,380
Bond
Market
Index
Fund
17,010
5,734
23,787
—
Core
Fixed
Income
Fund
31,533
37,072
12,108
58,315
Diversified
International
Fund
14,625
11,782
5,478
24,768
Diversified
Real
Asset
Fund
3,362
1,453
522
4,522
Equity
Income
Fund
4,868
9,527
851
14,164
High
Income
Fund
7,582
2,421
2,554
7,210
Inflation
Protection
Fund
3,828
2,004
1,530
4,648
International
Small
Company
Fund
4,995
2,389
2,491
5,302
LargeCap
Growth
Fund
I
15,626
6,138
10,326
15,863
LargeCap
S&P
500
Index
Fund
19,747
7,986
12,956
17,346
LargeCap
Value
Fund
III
13,955
4,361
4,362
14,424
MidCap
Fund
9,463
2,669
5,832
8,165
MidCap
Value
Fund
I
6,396
2,190
2,076
7,078
Origin
Emerging
Markets
Fund
3,159
7,631
4,472
6,700
Overseas
Fund
14,418
8,195
7,269
16,041
SmallCap
Growth
Fund
I
3,317
1,167
867
5,030
SmallCap
Value
Fund
II
2,898
939
730
3,341
$
182,178
$
123,782
$
100,216
$
228,297
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
79
$
179
$
405
$
1,686
Bond
Market
Index
Fund
—
1,234
—
(
191
)
Core
Fixed
Income
Fund
921
—
—
1,818
Diversified
International
Fund
286
(
63
)
—
3,902
Diversified
Real
Asset
Fund
25
(
1
)
—
230
Equity
Income
Fund
139
3
—
617
High
Income
Fund
397
(
208
)
—
(
31
)
Inflation
Protection
Fund
48
2
—
344
International
Small
Company
Fund
68
30
—
379
LargeCap
Growth
Fund
I
261
1,617
782
2,808
LargeCap
S&P
500
Index
Fund
434
1,656
796
913
LargeCap
Value
Fund
III
221
(
5
)
—
475
MidCap
Fund
—
1,213
86
652
MidCap
Value
Fund
I
102
4
—
564
Origin
Emerging
Markets
Fund
47
595
—
(
213
)
Overseas
Fund
291
(
3
)
—
700
SmallCap
Growth
Fund
I
51
93
180
1,320
SmallCap
Value
Fund
II
26
24
—
210
$
3,396
$
6,370
$
2,249
$
16,183
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2040
Account
December
31,
2020
See
accompanying
notes.
201
INVESTMENT
COMPANIES
-
100
.01
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
61
.24
%
Blue
Chip
Fund
(a)
259,837
$
9,081
Core
Fixed
Income
Fund
(a)
1,529,810
15,788
Diversified
International
Fund
(a)
934,045
13,964
International
Small
Company
Fund
(a)
258,302
3,076
LargeCap
Growth
Fund
I
(a)
453,438
9,255
MidCap
Value
Fund
I
(a)
241,832
3,635
Origin
Emerging
Markets
Fund
(a)
291,158
3,951
Real
Estate
Securities
Fund
(a)
84,870
2,215
SmallCap
Growth
Fund
I
(a)
149,943
2,751
SmallCap
Value
Fund
II
(a)
167,469
1,891
$
65,607
Principal
Funds,
Inc.
Institutional
Class
-
38
.77
%
Equity
Income
Fund
(a)
213,327
7,582
High
Income
Fund
(a)
300,320
2,817
LargeCap
S&P
500
Index
Fund
(a)
438,823
9,461
LargeCap
Value
Fund
III
(a)
440,984
7,624
MidCap
Growth
Fund
III
(a)
325,393
4,995
Overseas
Fund
(a)
886,186
9,057
$
41,536
TOTAL
INVESTMENT
COMPANIES
$
107,143
Total
Investments
$
107,143
Other
Assets
and
Liabilities
- (0.01)%
(
6
)
TOTAL
NET
ASSETS
-
100.00%
$
107,137
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
54
.60
%
Fixed
Income
Funds
30
.40
%
International
Equity
Funds
15
.01
%
Other
Assets
and
Liabilities
(
0
.01
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
2,986
$
6,068
$
949
$
9,081
Bond
Market
Index
Fund
4,930
1,077
6,298
—
Core
Fixed
Income
Fund
9,037
9,059
2,794
15,788
Diversified
International
Fund
8,306
4,883
1,206
13,964
Equity
Income
Fund
2,706
5,115
493
7,582
High
Income
Fund
2,574
914
626
2,817
International
Small
Company
Fund
2,658
1,083
886
3,076
LargeCap
Growth
Fund
I
8,726
2,629
4,625
9,255
LargeCap
S&P
500
Index
Fund
11,042
3,320
6,384
9,461
LargeCap
Value
Fund
III
7,884
1,809
2,336
7,624
MidCap
Growth
Fund
III
4,465
1,171
2,092
4,995
MidCap
Value
Fund
I
4,057
979
1,702
3,635
Origin
Emerging
Markets
Fund
2,398
1,400
366
3,951
Overseas
Fund
8,152
3,234
2,631
9,057
Real
Estate
Securities
Fund
2,015
531
234
2,215
SmallCap
Growth
Fund
I
1,837
503
305
2,751
SmallCap
Value
Fund
II
1,637
383
236
1,891
$
85,410
$
44,158
$
34,163
$
107,143
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
47
$
104
$
242
$
872
Bond
Market
Index
Fund
—
341
—
(
50
)
Core
Fixed
Income
Fund
258
(
18
)
—
504
Diversified
International
Fund
161
3
—
1,978
Equity
Income
Fund
73
4
—
250
High
Income
Fund
146
(
23
)
—
(
22
)
International
Small
Company
Fund
39
1
—
220
LargeCap
Growth
Fund
I
153
878
461
1,647
LargeCap
S&P
500
Index
Fund
238
950
437
533
LargeCap
Value
Fund
III
118
2
—
265
MidCap
Growth
Fund
III
36
329
213
1,122
MidCap
Value
Fund
I
53
(
1
)
—
302
Origin
Emerging
Markets
Fund
28
—
—
519
Overseas
Fund
164
(
5
)
—
307
Real
Estate
Securities
Fund
51
—
7
(
97
)
SmallCap
Growth
Fund
I
28
10
99
706
SmallCap
Value
Fund
II
15
—
—
107
$
1,608
$
2,575
$
1,459
$
9,163
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2050
Account
December
31,
2020
See
accompanying
notes.
202
INVESTMENT
COMPANIES
-
100
.01
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
58
.71
%
Blue
Chip
Fund
(a)
136,338
$
4,765
Core
Fixed
Income
Fund
(a)
349,119
3,603
Diversified
International
Fund
(a)
480,518
7,184
International
Small
Company
Fund
(a)
131,494
1,566
LargeCap
Growth
Fund
I
(a)
237,836
4,854
MidCap
Value
Fund
I
(a)
125,161
1,881
Origin
Emerging
Markets
Fund
(a)
145,218
1,971
Real
Estate
Securities
Fund
(a)
38,446
1,003
SmallCap
Growth
Fund
I
(a)
78,145
1,434
SmallCap
Value
Fund
II
(a)
85,265
963
$
29,224
Principal
Funds,
Inc.
Institutional
Class
-
41
.30
%
Equity
Income
Fund
(a)
110,093
3,913
High
Income
Fund
(a)
79,853
749
LargeCap
S&P
500
Index
Fund
(a)
219,313
4,728
LargeCap
Value
Fund
III
(a)
227,487
3,933
MidCap
Growth
Fund
III
(a)
167,973
2,579
Overseas
Fund
(a)
455,895
4,659
$
20,561
TOTAL
INVESTMENT
COMPANIES
$
49,785
Total
Investments
$
49,785
Other
Assets
and
Liabilities
- (0.01)%
(
6
)
TOTAL
NET
ASSETS
-
100.00%
$
49,779
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
60
.37
%
Fixed
Income
Funds
23
.17
%
International
Equity
Funds
16
.47
%
Other
Assets
and
Liabilities
(
0
.01
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
1,465
$
3,225
$
399
$
4,765
Bond
Market
Index
Fund
1,214
188
1,464
—
Core
Fixed
Income
Fund
2,437
1,870
823
3,603
Diversified
International
Fund
4,128
2,481
429
7,184
Equity
Income
Fund
1,339
2,631
183
3,913
High
Income
Fund
773
259
266
749
International
Small
Company
Fund
1,294
539
371
1,566
LargeCap
Growth
Fund
I
4,355
1,162
1,925
4,854
LargeCap
S&P
500
Index
Fund
5,567
1,456
3,022
4,728
LargeCap
Value
Fund
III
3,976
830
1,002
3,933
MidCap
Growth
Fund
III
2,269
551
986
2,579
MidCap
Value
Fund
I
2,065
460
796
1,881
Origin
Emerging
Markets
Fund
1,225
600
123
1,971
Overseas
Fund
4,064
1,595
1,143
4,659
Real
Estate
Securities
Fund
909
219
78
1,003
SmallCap
Growth
Fund
I
941
239
117
1,434
SmallCap
Value
Fund
II
866
180
130
963
$
38,887
$
18,485
$
13,257
$
49,785
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
25
$
50
$
127
$
424
Bond
Market
Index
Fund
—
54
—
8
Core
Fixed
Income
Fund
63
(
6
)
—
125
Diversified
International
Fund
83
1
—
1,003
Equity
Income
Fund
37
1
—
125
High
Income
Fund
39
(
5
)
—
(
12
)
International
Small
Company
Fund
20
—
—
104
LargeCap
Growth
Fund
I
80
390
240
872
LargeCap
S&P
500
Index
Fund
119
553
217
174
LargeCap
Value
Fund
III
61
1
—
128
MidCap
Growth
Fund
III
18
185
110
560
MidCap
Value
Fund
I
27
2
—
150
Origin
Emerging
Markets
Fund
14
—
—
269
Overseas
Fund
85
(
3
)
—
146
Real
Estate
Securities
Fund
23
—
3
(
47
)
SmallCap
Growth
Fund
I
15
5
51
366
SmallCap
Value
Fund
II
7
—
—
47
$
716
$
1,228
$
748
$
4,442
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2060
Account
December
31,
2020
See
accompanying
notes.
203
INVESTMENT
COMPANIES
-
100
.05
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
57
.37
%
Blue
Chip
Fund
(a)
32,223
$
1,126
Core
Fixed
Income
Fund
(a)
42,279
436
Diversified
International
Fund
(a)
116,138
1,737
International
Small
Company
Fund
(a)
32,112
382
LargeCap
Growth
Fund
I
(a)
56,672
1,157
MidCap
Value
Fund
I
(a)
30,096
452
Origin
Emerging
Markets
Fund
(a)
35,805
486
Real
Estate
Securities
Fund
(a)
8,770
229
SmallCap
Growth
Fund
I
(a)
18,523
340
SmallCap
Value
Fund
II
(a)
20,684
234
$
6,579
Principal
Funds,
Inc.
Institutional
Class
-
42
.68
%
Equity
Income
Fund
(a)
26,471
941
High
Income
Fund
(a)
12,886
121
LargeCap
S&P
500
Index
Fund
(a)
52,358
1,129
LargeCap
Value
Fund
III
(a)
55,251
955
MidCap
Growth
Fund
III
(a)
40,080
615
Overseas
Fund
(a)
110,957
1,134
$
4,895
TOTAL
INVESTMENT
COMPANIES
$
11,474
Total
Investments
$
11,474
Other
Assets
and
Liabilities
- (0.05)%
(
6
)
TOTAL
NET
ASSETS
-
100.00%
$
11,468
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
62
.59
%
Fixed
Income
Funds
20
.00
%
International
Equity
Funds
17
.46
%
Other
Assets
and
Liabilities
(
0
.05
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
317
$
886
$
182
$
1,126
Bond
Market
Index
Fund
163
51
222
—
Core
Fixed
Income
Fund
267
320
165
436
Diversified
International
Fund
930
1,011
440
1,737
Equity
Income
Fund
294
750
132
941
High
Income
Fund
128
75
80
121
International
Small
Company
Fund
285
245
172
382
LargeCap
Growth
Fund
I
932
614
667
1,157
LargeCap
S&P
500
Index
Fund
1,194
796
1,014
1,129
LargeCap
Value
Fund
III
864
552
489
955
MidCap
Growth
Fund
III
497
336
391
615
MidCap
Value
Fund
I
462
307
351
452
Origin
Emerging
Markets
Fund
296
253
129
486
Overseas
Fund
918
732
553
1,134
Real
Estate
Securities
Fund
190
134
82
229
SmallCap
Growth
Fund
I
207
140
94
340
SmallCap
Value
Fund
II
192
124
94
234
$
8,136
$
7,326
$
5,257
$
11,474
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
6
$
6
$
30
$
99
Bond
Market
Index
Fund
—
8
—
—
Core
Fixed
Income
Fund
7
—
—
14
Diversified
International
Fund
20
(
6
)
—
242
Equity
Income
Fund
9
(
2
)
—
31
High
Income
Fund
6
(
3
)
—
1
International
Small
Company
Fund
5
(
4
)
—
28
LargeCap
Growth
Fund
I
19
51
58
227
LargeCap
S&P
500
Index
Fund
29
79
52
74
LargeCap
Value
Fund
III
15
(
8
)
—
36
MidCap
Growth
Fund
III
4
38
26
135
MidCap
Value
Fund
I
7
(
4
)
—
38
Origin
Emerging
Markets
Fund
3
(
1
)
—
67
Overseas
Fund
21
(
15
)
—
52
Real
Estate
Securities
Fund
5
(
1
)
1
(
12
)
SmallCap
Growth
Fund
I
3
2
12
85
SmallCap
Value
Fund
II
2
(
3
)
—
15
$
161
$
137
$
179
$
1,132
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
Strategic
Income
Account
December
31,
2020
See
accompanying
notes.
204
INVESTMENT
COMPANIES
-
100
.02
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
58
.06
%
Blue
Chip
Fund
(a)
24,589
$
859
Core
Fixed
Income
Fund
(a)
1,220,619
12,597
Diversified
International
Fund
(a)
77,501
1,159
Diversified
Real
Asset
Fund
(a)
63,404
763
International
Small
Company
Fund
(a)
21,436
255
LargeCap
Growth
Fund
I
(a)
41,324
844
MidCap
Fund
(a),(b)
12,116
438
MidCap
Value
Fund
I
(a)
23,507
353
Origin
Emerging
Markets
Fund
(a)
22,796
309
SmallCap
Growth
Fund
I
(a)
14,481
266
SmallCap
Value
Fund
II
(a)
15,090
170
$
18,013
Principal
Funds,
Inc.
Institutional
Class
-
41
.96
%
Equity
Income
Fund
(a)
19,289
686
High
Income
Fund
(a)
228,066
2,139
Inflation
Protection
Fund
(a)
146,673
1,388
LargeCap
S&P
500
Index
Fund
(a)
45,147
973
LargeCap
Value
Fund
III
(a)
37,599
650
Overseas
Fund
(a)
75,667
773
Short-Term
Income
Fund
(a)
513,485
6,408
$
13,017
TOTAL
INVESTMENT
COMPANIES
$
31,030
Total
Investments
$
31,030
Other
Assets
and
Liabilities
- (0.02)%
(
5
)
TOTAL
NET
ASSETS
-
100.00%
$
31,025
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
76
.35
%
Domestic
Equity
Funds
16
.90
%
International
Equity
Funds
4
.31
%
Specialty
Funds
2
.46
%
Other
Assets
and
Liabilities
(
0
.02
)
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
Strategic
Income
Account
December
31,
2020
See
accompanying
notes.
205
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
1,077
$
769
$
1,370
$
859
Bond
Market
Index
Fund
4,378
1,499
6,144
—
Core
Fixed
Income
Fund
6,851
8,729
3,404
12,597
Diversified
International
Fund
737
759
525
1,159
Diversified
Real
Asset
Fund
501
431
226
763
Equity
Income
Fund
920
555
853
686
High
Income
Fund
1,971
979
788
2,139
Inflation
Protection
Fund
1,203
610
534
1,388
International
Small
Company
Fund
242
198
211
255
LargeCap
Growth
Fund
I
—
876
2
844
LargeCap
S&P
500
Index
Fund
980
784
954
973
LargeCap
Value
Fund
III
—
653
3
650
MidCap
Fund
798
449
999
438
MidCap
Value
Fund
I
—
355
2
353
Origin
Emerging
Markets
Fund
—
304
2
309
Overseas
Fund
730
600
592
773
Short-Term
Income
Fund
5,599
3,042
2,309
6,408
SmallCap
Growth
Fund
I
155
98
64
266
SmallCap
Value
Fund
II
143
87
80
170
$
26,285
$
21,777
$
19,062
$
31,030
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
4
$
335
$
22
$
48
Bond
Market
Index
Fund
—
292
—
(
25
)
Core
Fixed
Income
Fund
203
(
3
)
—
424
Diversified
International
Fund
13
(
6
)
—
194
Diversified
Real
Asset
Fund
4
(
1
)
—
58
Equity
Income
Fund
17
110
—
(
46
)
High
Income
Fund
114
(
18
)
—
(
5
)
Inflation
Protection
Fund
15
1
—
108
International
Small
Company
Fund
3
5
—
21
LargeCap
Growth
Fund
I
14
—
42
(
30
)
LargeCap
S&P
500
Index
Fund
25
97
45
66
LargeCap
Value
Fund
III
10
—
—
—
MidCap
Fund
—
307
4
(
117
)
MidCap
Value
Fund
I
5
—
—
—
Origin
Emerging
Markets
Fund
2
—
—
7
Overseas
Fund
14
5
—
30
Short-Term
Income
Fund
136
—
10
76
SmallCap
Growth
Fund
I
3
4
10
73
SmallCap
Value
Fund
II
1
2
—
18
$
583
$
1,130
$
133
$
900
Amounts
in
thousands.
Schedule
of
Investments
Real
Estate
Securities
Account
December
31,
2020
See
accompanying
notes.
206
INVESTMENT
COMPANIES
-
0
.04
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0
.04
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
58,628
$
59
TOTAL
INVESTMENT
COMPANIES
$
59
COMMON
STOCKS
-
99
.71
%
Shares
Held
Value
(000's)
Lodging
-
0
.55
%
Choice
Hotels
International
Inc
7,005
$
747
REITs
-
99
.16
%
Agree
Realty
Corp
29,468
1,962
Alexandria
Real
Estate
Equities
Inc
29,157
5,196
American
Assets
Trust
Inc
36,790
1,062
American
Campus
Communities
Inc
27,443
1,174
American
Homes
4
Rent
194,054
5,822
American
Tower
Corp
20,360
4,570
Apartment
Income
REIT
Corp
(b)
72,640
2,790
Apartment
Investment
and
Management
Co
72,640
384
Apple
Hospitality
REIT
Inc
83,830
1,082
AvalonBay
Communities
Inc
43,695
7,010
Boston
Properties
Inc
11,986
1,133
Brandywine
Realty
Trust
49,750
593
Broadstone
Net
Lease
Inc
18,149
355
Camden
Property
Trust
22,315
2,230
CoreSite
Realty
Corp
14,608
1,830
Cousins
Properties
Inc
85,659
2,870
CubeSmart
64,985
2,184
CyrusOne
Inc
19,224
1,406
DiamondRock
Hospitality
Co
(b)
88,955
734
Digital
Realty
Trust
Inc
11,408
1,592
Equinix
Inc
15,377
10,982
Equity
LifeStyle
Properties
Inc
43,862
2,779
Equity
Residential
19,984
1,185
Essex
Property
Trust
Inc
25,001
5,936
Extra
Space
Storage
Inc
30,345
3,516
First
Industrial
Realty
Trust
Inc
39,183
1,651
Healthcare
Realty
Trust
Inc
53,865
1,594
Healthcare
Trust
of
America
Inc
167,758
4,620
Invitation
Homes
Inc
256,305
7,612
Kilroy
Realty
Corp
28,450
1,633
Park
Hotels
&
Resorts
Inc
61,430
1,054
Prologis
Inc
125,960
12,553
PS
Business
Parks
Inc
19,433
2,582
Public
Storage
6,276
1,449
Regency
Centers
Corp
45,930
2,094
Rexford
Industrial
Realty
Inc
37,628
1,848
Sabra
Health
Care
REIT
Inc
101,487
1,763
Saul
Centers
Inc
15,957
505
Simon
Property
Group
Inc
16,466
1,404
STORE
Capital
Corp
105,263
3,577
Sun
Communities
Inc
33,901
5,151
Terreno
Realty
Corp
47,875
2,801
VICI
Properties
Inc
96,019
2,448
Welltower
Inc
120,290
7,773
Weyerhaeuser
Co
28,329
950
$
135,439
TOTAL
COMMON
STOCKS
$
136,186
Total
Investments
$
136,245
Other
Assets
and
Liabilities
- 0.25%
337
TOTAL
NET
ASSETS
-
100.00%
$
136,582
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary (unaudited)
Sector
Percent
Financial
99
.16
%
Consumer,
Cyclical
0
.55
%
Money
Market
Funds
0
.04
%
Other
Assets
and
Liabilities
0
.25
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Real
Estate
Securities
Account
December
31,
2020
See
accompanying
notes.
207
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
1,130
$
19,536
$
20,607
$
59
$
1,130
$
19,536
$
20,607
$
59
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
3
$
—
$
—
$
—
$
3
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
SAM
Balanced
Portfolio
December
31,
2020
See
accompanying
notes.
208
INVESTMENT
COMPANIES
-
99.94%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.13%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
934,508
$
935
Principal
Exchange-Traded
Funds
-
16.85%
Principal
Active
Global
Dividend
Income
ETF
(a)
290,500
9,190
Principal
U.S.
Mega-Cap
ETF
(a)
2,065,807
73,605
Principal
U.S.
Small-Cap
Multi-Factor
ETF
(a)
980,600
35,683
$
118,478
Principal
Funds,
Inc.
Class
R-6
-
55.07%
Blue
Chip
Fund
(a)
2,009,309
70,225
Core
Fixed
Income
Fund
(a)
8,223,794
84,871
Diversified
International
Fund
(a)
4,333,612
64,787
Diversified
Real
Asset
Fund
(a)
818,399
9,845
Edge
MidCap
Fund
(a)
2,149,343
34,948
Global
Diversified
Income
Fund
(a)
519,987
6,937
Global
Real
Estate
Securities
Fund
(a)
2,640,128
26,032
High
Yield
Fund
(a)
2,150,821
15,572
International
Small
Company
Fund
(a)
704,843
8,395
Origin
Emerging
Markets
Fund
(a)
2,142,515
29,074
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(a)
3,481,037
36,446
$
387,132
Principal
Funds,
Inc.
Institutional
Class
-
7.71%
Inflation
Protection
Fund
(a)
1,145,707
10,838
Short-Term
Income
Fund
(a)
3,471,313
43,322
$
54,160
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
20.18%
Equity
Income
Account
(a)
3,776,046
107,769
Government
&
High
Quality
Bond
Account
(a)
3,466,213
34,073
$
141,842
TOTAL
INVESTMENT
COMPANIES
$
702,547
Total
Investments
$
702,547
Other
Assets
and
Liabilities
- 0.06%
440
TOTAL
NET
ASSETS
-
100.00%
$
702,987
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
45.83%
Fixed
Income
Funds
41.25%
International
Equity
Funds
10.34%
Specialty
Funds
2.39%
Money
Market
Funds
0.13%
Other
Assets
and
Liabilities
0.06%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Balanced
Portfolio
December
31,
2020
See
accompanying
notes.
209
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
64,076
$
5,415
$
16,147
$
70,225
Core
Fixed
Income
Fund
84,277
13,634
16,947
84,871
Diversified
International
Fund
82,310
1,196
27,305
64,787
Diversified
Real
Asset
Fund
22,012
203
11,999
9,845
Edge
MidCap
Fund
29,239
6,586
2,534
34,948
Equity
Income
Account
92,733
17,304
5,138
107,769
Global
Diversified
Income
Fund
—
6,611
183
6,937
Global
Real
Estate
Securities
Fund
20,186
7,548
1,309
26,032
Government
&
High
Quality
Bond
Account
46,640
1,561
14,492
34,073
High
Yield
Fund
10,183
6,517
1,359
15,572
Inflation
Protection
Fund
10,145
1,495
1,687
10,838
International
Small
Company
Fund
10,223
199
2,253
8,395
Origin
Emerging
Markets
Fund
10,362
17,398
1,681
29,074
Principal
Active
Global
Dividend
Income
ETF
36,652
—
27,165
9,190
Principal
Active
Income
ETF
9,639
605
9,363
—
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
2,721
53,937
55,723
935
Principal
Investment
Grade
Corporate
Active
ETF
5,329
—
5,628
—
Principal
U.S.
Mega-Cap
ETF
72,121
2,112
9,393
73,605
Principal
U.S.
Small-Cap
Multi-Factor
ETF
17,732
13,308
—
35,683
Short-Term
Income
Fund
53,153
1,621
12,253
43,322
Spectrum
Preferred
and
Capital
Securities
Income
Fund
18,459
19,121
1,735
36,446
$
698,192
$
176,371
$
224,294
$
702,547
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
366
$
2,966
$
1,866
$
13,915
Core
Fixed
Income
Fund
2,037
67
—
3,840
Diversified
International
Fund
749
1,491
—
7,095
Diversified
Real
Asset
Fund
56
28
—
(399)
Edge
MidCap
Fund
456
(72)
1,263
1,729
Equity
Income
Account
2,040
223
2,565
2,647
Global
Diversified
Income
Fund
130
4
—
505
Global
Real
Estate
Securities
Fund
292
(71)
—
(322)
Government
&
High
Quality
Bond
Account
904
210
—
154
High
Yield
Fund
621
(24)
—
255
Inflation
Protection
Fund
118
37
—
848
International
Small
Company
Fund
108
74
—
152
Origin
Emerging
Markets
Fund
205
(2)
—
2,997
Principal
Active
Global
Dividend
Income
ETF
694
2,810
—
(3,107)
Principal
Active
Income
ETF
244
(415)
—
(466)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
15
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
80
575
—
(276)
Principal
U.S.
Mega-Cap
ETF
1,205
1,473
—
7,292
Principal
U.S.
Small-Cap
Multi-Factor
ETF
355
—
—
4,643
Short-Term
Income
Fund
1,083
198
67
603
Spectrum
Preferred
and
Capital
Securities
Income
Fund
1,180
(47)
—
648
$
12,938
$
9,525
$
5,761
$
42,753
Amounts
in
thousands.
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
December
31,
2020
See
accompanying
notes.
210
INVESTMENT
COMPANIES
-
99.97%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.13%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
251,235
$
251
Principal
Exchange-Traded
Funds
-
11.09%
Principal
Active
Global
Dividend
Income
ETF
(a)
50,000
1,582
Principal
U.S.
Mega-Cap
ETF
(a)
382,230
13,619
Principal
U.S.
Small-Cap
Multi-Factor
ETF
(a)
175,200
6,375
$
21,576
Principal
Funds,
Inc.
Class
R-6
-
58.04%
Blue
Chip
Fund
(a)
379,774
13,273
Core
Fixed
Income
Fund
(a)
3,562,514
36,765
Diversified
International
Fund
(a)
817,722
12,225
Diversified
Real
Asset
Fund
(a)
244,997
2,947
Edge
MidCap
Fund
(a)
389,771
6,338
Global
Diversified
Income
Fund
(a)
250,254
3,339
Global
Real
Estate
Securities
Fund
(a)
909,803
8,971
High
Yield
Fund
(a)
932,362
6,750
International
Small
Company
Fund
(a)
132,886
1,583
Origin
Emerging
Markets
Fund
(a)
373,995
5,075
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(a)
1,498,121
15,685
$
112,951
Principal
Funds,
Inc.
Institutional
Class
-
11.86%
Inflation
Protection
Fund
(a)
339,028
3,207
Short-Term
Income
Fund
(a)
1,591,753
19,865
$
23,072
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
18.85%
Equity
Income
Account
(a)
752,294
21,471
Government
&
High
Quality
Bond
Account
(a)
1,547,141
15,208
$
36,679
TOTAL
INVESTMENT
COMPANIES
$
194,529
Total
Investments
$
194,529
Other
Assets
and
Liabilities
- 0.03%
60
TOTAL
NET
ASSETS
-
100.00%
$
194,589
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
56.38%
Domestic
Equity
Funds
31.39%
International
Equity
Funds
8.84%
Specialty
Funds
3.23%
Money
Market
Funds
0.13%
Other
Assets
and
Liabilities
0.03%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
December
31,
2020
See
accompanying
notes.
211
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
12,479
$
1,219
$
3,692
$
13,273
Core
Fixed
Income
Fund
34,488
7,327
6,686
36,765
Diversified
International
Fund
15,831
977
6,215
12,225
Diversified
Real
Asset
Fund
5,408
235
2,645
2,947
Edge
MidCap
Fund
5,620
833
429
6,338
Equity
Income
Account
17,198
4,804
1,233
21,471
Global
Diversified
Income
Fund
5,124
545
2,058
3,339
Global
Real
Estate
Securities
Fund
4,290
4,835
333
8,971
Government
&
High
Quality
Bond
Account
19,609
1,800
6,341
15,208
High
Yield
Fund
4,201
2,930
491
6,750
Inflation
Protection
Fund
4,712
270
2,168
3,207
International
Small
Company
Fund
2,003
88
529
1,583
Origin
Emerging
Markets
Fund
2,005
2,912
374
5,075
Principal
Active
Global
Dividend
Income
ETF
3,997
—
2,552
1,582
Principal
Active
Income
ETF
5,199
216
4,950
—
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
580
15,888
16,217
251
Principal
Investment
Grade
Corporate
Active
ETF
1,906
—
2,021
—
Principal
U.S.
Mega-Cap
ETF
12,420
352
777
13,619
Principal
U.S.
Small-Cap
Multi-Factor
ETF
2,969
2,558
—
6,375
Short-Term
Income
Fund
21,442
1,762
3,641
19,865
Spectrum
Preferred
and
Capital
Securities
Income
Fund
7,903
8,437
883
15,685
$
189,384
$
57,988
$
64,235
$
194,529
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
69
$
627
$
351
$
2,640
Core
Fixed
Income
Fund
864
(44)
—
1,680
Diversified
International
Fund
141
304
—
1,328
Diversified
Real
Asset
Fund
17
(12)
—
(39)
Edge
MidCap
Fund
82
(13)
228
327
Equity
Income
Account
403
(2)
507
704
Global
Diversified
Income
Fund
189
(172)
—
(100)
Global
Real
Estate
Securities
Fund
97
(43)
—
222
Government
&
High
Quality
Bond
Account
397
(2)
—
142
High
Yield
Fund
273
(21)
—
131
Inflation
Protection
Fund
39
127
—
266
International
Small
Company
Fund
20
—
—
21
Origin
Emerging
Markets
Fund
36
(3)
—
535
Principal
Active
Global
Dividend
Income
ETF
103
464
—
(327)
Principal
Active
Income
ETF
130
(183)
—
(282)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
3
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
31
214
—
(99)
Principal
U.S.
Mega-Cap
ETF
215
116
—
1,508
Principal
U.S.
Small-Cap
Multi-Factor
ETF
62
—
—
848
Short-Term
Income
Fund
460
13
31
289
Spectrum
Preferred
and
Capital
Securities
Income
Fund
508
(59)
—
287
$
4,139
$
1,311
$
1,117
$
10,081
Amounts
in
thousands.
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
December
31,
2020
See
accompanying
notes.
212
INVESTMENT
COMPANIES
-
99
.92
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0
.17
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
649,131
$
649
Principal
Exchange-Traded
Funds
-
21
.89
%
Principal
Active
Global
Dividend
Income
ETF
(a)
190,000
6,010
Principal
U.S.
Mega-Cap
ETF
(a)
1,476,311
52,601
Principal
U.S.
Small-Cap
Multi-Factor
ETF
(a)
703,400
25,597
$
84,208
Principal
Funds,
Inc.
Class
R-6
-
52
.55
%
Blue
Chip
Fund
(a)
1,470,765
51,403
Core
Fixed
Income
Fund
(a)
1,809,643
18,675
Diversified
International
Fund
(a)
3,298,459
49,312
Diversified
Real
Asset
Fund
(a)
495,126
5,956
Edge
MidCap
Fund
(a)
1,649,370
26,819
Global
Real
Estate
Securities
Fund
(a)
1,153,555
11,374
High
Yield
Fund
(a)
521,512
3,777
International
Small
Company
Fund
(a)
528,487
6,294
Origin
Emerging
Markets
Fund
(a)
1,457,834
19,783
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(a)
833,864
8,731
$
202,124
Principal
Funds,
Inc.
Institutional
Class
-
4
.12
%
Inflation
Protection
Fund
(a)
621,325
5,877
Short-Term
Income
Fund
(a)
797,960
9,958
$
15,835
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
21
.19
%
Equity
Income
Account
(a)
2,581,185
73,667
Government
&
High
Quality
Bond
Account
(a)
795,357
7,819
$
81,486
TOTAL
INVESTMENT
COMPANIES
$
384,302
Total
Investments
$
384,302
Other
Assets
and
Liabilities
- 0.08%
313
TOTAL
NET
ASSETS
-
100.00%
$
384,615
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
59
.82
%
Fixed
Income
Funds
27
.08
%
International
Equity
Funds
11
.30
%
Specialty
Funds
1
.55
%
Money
Market
Funds
0
.17
%
Other
Assets
and
Liabilities
0
.08
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
December
31,
2020
See
accompanying
notes.
213
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
44,819
$
4,107
$
9,580
$
51,403
Core
Fixed
Income
Fund
17,340
4,947
4,282
18,675
Diversified
International
Fund
61,484
2,124
20,940
49,312
Diversified
Real
Asset
Fund
12,484
327
6,681
5,956
Edge
MidCap
Fund
21,539
5,180
1,334
26,819
Equity
Income
Account
62,031
12,329
2,820
73,667
Global
Real
Estate
Securities
Fund
11,975
901
903
11,374
Government
&
High
Quality
Bond
Account
11,078
633
3,992
7,819
High
Yield
Fund
—
3,663
—
3,777
Inflation
Protection
Fund
—
5,806
—
5,877
International
Small
Company
Fund
6,926
384
1,277
6,294
Origin
Emerging
Markets
Fund
7,147
11,775
1,169
19,783
Principal
Active
Global
Dividend
Income
ETF
12,052
—
6,656
6,010
Principal
Active
Income
ETF
4,674
363
4,604
—
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
826
32,121
32,298
649
Principal
Investment
Grade
Corporate
Active
ETF
1,685
—
1,779
—
Principal
U.S.
Mega-Cap
ETF
46,991
2,733
2,816
52,601
Principal
U.S.
Small-Cap
Multi-Factor
ETF
12,223
10,012
—
25,597
Short-Term
Income
Fund
15,935
610
6,851
9,958
Spectrum
Preferred
and
Capital
Securities
Income
Fund
5,325
4,038
737
8,731
$
356,534
$
102,053
$
108,719
$
384,302
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
267
$
1,852
$
1,364
$
10,205
Core
Fixed
Income
Fund
425
(
58
)
—
728
Diversified
International
Fund
569
918
—
5,726
Diversified
Real
Asset
Fund
34
(
85
)
—
(
89
)
Edge
MidCap
Fund
349
(
83
)
967
1,517
Equity
Income
Account
1,377
(
52
)
1,732
2,179
Global
Real
Estate
Securities
Fund
133
(
111
)
—
(
488
)
Government
&
High
Quality
Bond
Account
205
95
—
5
High
Yield
Fund
72
—
—
114
Inflation
Protection
Fund
56
—
—
71
International
Small
Company
Fund
81
5
—
256
Origin
Emerging
Markets
Fund
140
42
—
1,988
Principal
Active
Global
Dividend
Income
ETF
354
1,293
—
(
679
)
Principal
Active
Income
ETF
120
(
268
)
—
(
165
)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
5
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
25
181
—
(
87
)
Principal
U.S.
Mega-Cap
ETF
800
15
—
5,678
Principal
U.S.
Small-Cap
Multi-Factor
ETF
252
—
—
3,362
Short-Term
Income
Fund
295
166
15
98
Spectrum
Preferred
and
Capital
Securities
Income
Fund
299
(
31
)
—
136
$
5,858
$
3,879
$
4,078
$
30,555
Amounts
in
thousands.
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
December
31,
2020
See
accompanying
notes.
214
INVESTMENT
COMPANIES
-
99.96%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.30%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
559,469
$
559
Principal
Exchange-Traded
Funds
-
23.20%
Principal
Active
Income
ETF
(a)
308,058
12,230
Principal
Investment
Grade
Corporate
Active
ETF
(a)
708,298
19,414
Principal
U.S.
Mega-Cap
ETF
(a)
205,407
7,319
Principal
U.S.
Small-Cap
Multi-Factor
ETF
(a)
104,000
3,785
$
42,748
Principal
Funds,
Inc.
Class
R-6
-
35.48%
Blue
Chip
Fund
(a)
218,525
7,637
Core
Fixed
Income
Fund
(a)
1,858,093
19,176
Diversified
International
Fund
(a)
648,626
9,697
Edge
MidCap
Fund
(a)
145,616
2,368
Global
Real
Estate
Securities
Fund
(a)
631,431
6,226
High
Yield
Fund
(a)
742,610
5,376
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(a)
1,422,255
14,891
$
65,371
Principal
Funds,
Inc.
Institutional
Class
-
18.51%
Inflation
Protection
Fund
(a)
1,217,719
11,519
Short-Term
Income
Fund
(a)
1,809,587
22,584
$
34,103
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
22.47%
Equity
Income
Account
(a)
546,901
15,609
Government
&
High
Quality
Bond
Account
(a)
2,625,275
25,806
$
41,415
TOTAL
INVESTMENT
COMPANIES
$
184,196
Total
Investments
$
184,196
Other
Assets
and
Liabilities
- 0.04%
66
TOTAL
NET
ASSETS
-
100.00%
$
184,262
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
76.36%
Domestic
Equity
Funds
19.92%
International
Equity
Funds
3.38%
Money
Market
Funds
0.30%
Other
Assets
and
Liabilities
0.04%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
December
31,
2020
See
accompanying
notes.
215
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
3,401
$
4,834
$
1,765
$
7,637
Core
Fixed
Income
Fund
45,508
3,094
31,635
19,176
Diversified
International
Fund
—
8,473
223
9,697
Edge
MidCap
Fund
2,998
329
1,057
2,368
Equity
Income
Account
13,572
3,242
1,673
15,609
Global
Diversified
Income
Fund
9,319
759
9,160
—
Global
Real
Estate
Securities
Fund
6,690
1,191
1,436
6,226
Government
&
High
Quality
Bond
Account
23,476
6,786
4,450
25,806
High
Yield
Fund
8,171
861
3,620
5,376
Inflation
Protection
Fund
11,203
2,227
2,835
11,519
Principal
Active
Global
Dividend
Income
ETF
15,187
—
14,082
—
Principal
Active
Income
ETF
5,100
6,874
—
12,230
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
511
28,524
28,476
559
Principal
Investment
Grade
Corporate
Active
ETF
2,864
16,735
253
19,414
Principal
U.S.
Mega-Cap
ETF
6,874
282
697
7,319
Principal
U.S.
Small-Cap
Multi-Factor
ETF
—
3,119
—
3,785
Short-Term
Income
Fund
23,652
3,255
4,644
22,584
Spectrum
Preferred
and
Capital
Securities
Income
Fund
9,918
6,111
1,321
14,891
$
188,444
$
96,696
$
107,327
$
184,196
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
38
$
127
$
197
$
1,040
Core
Fixed
Income
Fund
869
1,857
—
352
Diversified
International
Fund
112
2
—
1,445
Edge
MidCap
Fund
31
48
86
50
Equity
Income
Account
292
(29)
367
497
Global
Diversified
Income
Fund
227
(561)
—
(357)
Global
Real
Estate
Securities
Fund
71
92
—
(311)
Government
&
High
Quality
Bond
Account
660
(32)
—
26
High
Yield
Fund
371
(9)
—
(27)
Inflation
Protection
Fund
125
64
—
860
Principal
Active
Global
Dividend
Income
ETF
134
425
—
(1,530)
Principal
Active
Income
ETF
367
—
—
256
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
3
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
396
19
221
49
Principal
U.S.
Mega-Cap
ETF
117
117
—
743
Principal
U.S.
Small-Cap
Multi-Factor
ETF
27
—
—
666
Short-Term
Income
Fund
511
6
35
315
Spectrum
Preferred
and
Capital
Securities
Income
Fund
543
(55)
—
238
$
4,894
$
2,071
$
906
$
4,312
Amounts
in
thousands.
Schedule
of
Investments
SAM
Strategic
Growth
Portfolio
December
31,
2020
See
accompanying
notes.
216
INVESTMENT
COMPANIES
-
99
.96
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0
.13
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
480,383
$
480
Principal
Exchange-Traded
Funds
-
18
.81
%
Principal
U.S.
Mega-Cap
ETF
(a)
1,111,000
39,585
Principal
U.S.
Small-Cap
Multi-Factor
ETF
(a)
750,100
27,296
$
66,881
Principal
Funds,
Inc.
Class
R-6
-
57
.83
%
Blue
Chip
Fund
(a)
1,416,317
49,500
Diversified
International
Fund
(a)
4,557,976
68,142
Edge
MidCap
Fund
(a)
1,754,580
28,530
Global
Real
Estate
Securities
Fund
(a)
336,818
3,321
International
Small
Company
Fund
(a)
575,464
6,854
LargeCap
Growth
Fund
I
(a)
1,518,339
30,989
Origin
Emerging
Markets
Fund
(a)
1,347,812
18,290
$
205,626
Principal
Funds,
Inc.
Institutional
Class
-
4
.71
%
LargeCap
Value
Fund
III
(a)
968,893
16,752
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
18
.48
%
Equity
Income
Account
(a)
2,302,891
65,724
TOTAL
INVESTMENT
COMPANIES
$
355,463
Total
Investments
$
355,463
Other
Assets
and
Liabilities
- 0.04%
147
TOTAL
NET
ASSETS
-
100.00%
$
355,610
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
Current
yield
shown
is
as
of
period
end.
Portfolio
Summary (unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
72
.66
%
Fixed
Income
Funds
19
.16
%
International
Equity
Funds
8
.01
%
Money
Market
Funds
0
.13
%
Other
Assets
and
Liabilities
0
.04
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
48,441
$
2,557
$
13,604
$
49,500
Diversified
International
Fund
67,657
3,382
12,179
68,142
Edge
MidCap
Fund
21,089
7,022
1,149
28,530
Equity
Income
Account
59,669
7,401
2,812
65,724
Global
Real
Estate
Securities
Fund
16,031
1,361
12,252
3,321
International
Small
Company
Fund
7,873
627
1,869
6,854
LargeCap
Growth
Fund
I
15,867
13,174
2,472
30,989
LargeCap
Value
Fund
III
7,700
8,456
583
16,752
Origin
Emerging
Markets
Fund
16,906
776
2,116
18,290
Principal
Active
Global
Dividend
Income
ETF
18,213
—
16,885
—
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
696
24,235
24,451
480
Principal
U.S.
Mega-Cap
ETF
22,380
14,000
1,140
39,585
Principal
U.S.
Small-Cap
Multi-Factor
ETF
12,669
10,771
—
27,296
$
315,191
$
93,762
$
91,512
$
355,463
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
255
$
1,790
$
1,310
$
10,316
Diversified
International
Fund
786
182
—
9,100
Edge
MidCap
Fund
371
(
95
)
1,027
1,663
Equity
Income
Account
1,237
(
185
)
1,555
1,651
Global
Real
Estate
Securities
Fund
59
58
—
(
1,877
)
International
Small
Company
Fund
87
(
70
)
—
293
LargeCap
Growth
Fund
I
495
(
3
)
1,486
4,423
LargeCap
Value
Fund
III
258
(
68
)
—
1,247
Origin
Emerging
Markets
Fund
129
72
—
2,652
Principal
Active
Global
Dividend
Income
ETF
161
1,329
—
(
2,657
)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
5
—
—
—
Principal
U.S.
Mega-Cap
ETF
488
(
177
)
—
4,522
Principal
U.S.
Small-Cap
Multi-Factor
ETF
271
—
—
3,856
$
4,602
$
2,833
$
5,378
$
35,189
Amounts
in
thousands.
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2020
See
accompanying
notes.
217
INVESTMENT
COMPANIES
-
1.63%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.63%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.01%
(a),(b)
360,360
$
360
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
2,195,945
2,196
$
2,556
TOTAL
INVESTMENT
COMPANIES
$
2,556
BONDS
-
85.98%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
0.17%
Raytheon
Technologies
Corp
3.20%,
03/15/2024
$
250
$
270
Agriculture
-
0.37%
Bunge
Ltd
Finance
Corp
1.63%,
08/17/2025
100
103
4.35%,
03/15/2024
250
276
Cargill
Inc
1.38%,
07/23/2023
(e)
200
205
$
584
Airlines
-
0.42%
Alaska
Airlines
2020-1
Class
A
Pass
Through
Trust
4.80%,
02/15/2029
(e)
200
220
American
Airlines
2013-2
Class
A
Pass
Through
Trust
4.95%,
07/15/2024
228
217
Delta
Air
Lines
Inc
/
SkyMiles
IP
Ltd
4.50%,
10/20/2025
(e)
210
225
$
662
Automobile
Asset
Backed
Securities
-
6.90%
Americredit
Automobile
Receivables
Trust
2018-1
3.07%,
12/19/2022
56
56
Americredit
Automobile
Receivables
Trust
2018-2
3.15%,
03/20/2023
93
94
Americredit
Automobile
Receivables
Trust
2019-1
2.97%,
11/20/2023
179
181
Americredit
Automobile
Receivables
Trust
2019-2
2.28%,
01/18/2024
400
406
2.43%,
09/19/2022
22
23
AmeriCredit
Automobile
Receivables
Trust
2019-3
2.17%,
01/18/2023
85
85
AmeriCredit
Automobile
Receivables
Trust
2020-1
1.10%,
03/20/2023
66
66
AmeriCredit
Automobile
Receivables
Trust
2020-2
0.60%,
12/18/2023
234
234
AmeriCredit
Automobile
Receivables
Trust
2020-3
0.42%,
03/18/2024
500
501
Capital
Auto
Receivables
Asset
Trust
2018-2
3.27%,
06/20/2023
(e)
39
39
CPS
Auto
Receivables
Trust
2019-C
2.55%,
09/15/2022
(e)
9
9
CPS
Auto
Receivables
Trust
2020-A
2.09%,
05/15/2023
(e)
85
85
CPS
Auto
Receivables
Trust
2020-B
1.15%,
07/17/2023
(e)
123
123
CPS
Auto
Receivables
Trust
2020-C
0.63%,
03/15/2024
(e)
406
407
Ford
Credit
Auto
Owner
Trust
2016-REV2
2.03%,
12/15/2027
(e)
750
756
Ford
Credit
Auto
Owner
Trust
2017-REV1
2.62%,
08/15/2028
(e)
500
513
Ford
Credit
Auto
Owner
Trust
2018-REV2
3.47%,
01/15/2030
(e)
400
429
Ford
Credit
Auto
Owner
Trust
2019-REV1
3.52%,
07/15/2030
(e)
300
327
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Asset
Backed
Securities
(continued)
Ford
Credit
Auto
Owner
Trust
2020-REV1
2.04%,
08/15/2031
(e)
$
250
$
264
Ford
Credit
Auto
Owner
Trust
2020-REV2
1.06%,
04/15/2033
(e)
750
757
OneMain
Direct
Auto
Receivables
Trust
2018-1
3.43%,
12/16/2024
(e)
298
300
OneMain
Direct
Auto
Receivables
Trust
2019-1
3.63%,
09/14/2027
(e)
750
824
Santander
Drive
Auto
Receivables
Trust
2020-2
0.62%,
05/15/2023
186
187
Santander
Drive
Auto
Receivables
Trust
2020-3
0.46%,
09/15/2023
750
750
Santander
Drive
Auto
Receivables
Trust
2020-4
0.42%,
09/15/2023
500
501
Toyota
Auto
Loan
Extended
Note
Trust
2019-1
2.56%,
11/25/2031
(e)
250
267
Toyota
Auto
Loan
Extended
Note
Trust
2020-1
1.35%,
05/25/2033
(e)
200
206
Westlake
Automobile
Receivables
Trust
2018-3
3.32%,
10/16/2023
(e)
19
19
Westlake
Automobile
Receivables
Trust
2019-1
3.06%,
05/16/2022
(e)
2
2
3.26%,
10/17/2022
(e)
350
352
Westlake
Automobile
Receivables
Trust
2019-3
2.15%,
02/15/2023
(e)
133
134
Westlake
Automobile
Receivables
Trust
2020-3
0.56%,
05/15/2024
(e)
1,500
1,503
World
Omni
Select
Auto
Trust
2019-A
2.06%,
08/15/2023
187
187
World
Omni
Select
Auto
Trust
2020-A
0.47%,
06/17/2024
250
250
$
10,837
Automobile
Floor
Plan
Asset
Backed
Securities
-
0.90%
Ally
Master
Owner
Trust
2.70%,
01/17/2023
500
500
3.29%,
05/15/2023
500
506
Volvo
Financial
Equipment
Master
Owner
Trust
0.68%,
07/17/2023
(e)
400
401
1.00
x
1
Month
USD
LIBOR
+
0.52%
$
1,407
Automobile
Manufacturers
-
0.61%
General
Motors
Financial
Co
Inc
1.08%,
04/09/2021
300
300
3
Month
USD
LIBOR
+
0.85%
PACCAR
Financial
Corp
3.10%,
05/10/2021
250
253
Toyota
Motor
Credit
Corp
2.60%,
01/11/2022
400
409
$
962
Banks
-
19.29%
Bank
of
America
Corp
0.98%,
09/25/2025
(f)
500
505
United
States
Secured
Overnight
Financing
Rate
+
0.91%
1.20%,
10/24/2026
(f)
400
405
United
States
Secured
Overnight
Financing
Rate
+
1.01%
1.32%,
06/19/2026
(f)
600
613
United
States
Secured
Overnight
Financing
Rate
+
1.15%
1.38%,
01/20/2023
(g)
350
354
3
Month
USD
LIBOR
+
1.16%
2.50%,
10/21/2022
500
509
3.00%,
12/20/2023
(f)
430
453
3
Month
USD
LIBOR
+
0.79%
4.20%,
08/26/2024
750
840
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2020
See
accompanying
notes.
218
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Bank
of
New
York
Mellon
Corp/The
1.26%,
10/30/2023
$
500
$
508
3
Month
USD
LIBOR
+
1.05%
2.10%,
10/24/2024
250
265
2.50%,
04/15/2021
300
301
BNP
Paribas
SA
3.50%,
03/01/2023
(e)
250
266
Capital
One
NA
1.36%,
01/30/2023
600
604
3
Month
USD
LIBOR
+
1.15%
Citigroup
Inc
0.78%,
10/30/2024
(f)
400
403
United
States
Secured
Overnight
Financing
Rate
+
0.69%
1.17%,
04/25/2022
200
202
3
Month
USD
LIBOR
+
0.96%
1.66%,
09/01/2023
500
509
3
Month
USD
LIBOR
+
1.43%
2.70%,
03/30/2021
900
905
3.50%,
05/15/2023
250
268
4.00%,
08/05/2024
274
305
4.04%,
06/01/2024
(f)
250
272
3
Month
USD
LIBOR
+
1.02%
Credit
Suisse
AG/New
York
NY
2.10%,
11/12/2021
250
254
Credit
Suisse
Group
AG
4.21%,
06/12/2024
(e),(f)
500
542
3
Month
USD
LIBOR
+
1.24%
Fifth
Third
Bancorp
2.60%,
06/15/2022
800
824
3.65%,
01/25/2024
200
218
4.30%,
01/16/2024
400
442
Fifth
Third
Bank
NA
2.25%,
06/14/2021
300
302
First
Republic
Bank/CA
1.91%,
02/12/2024
(f)
250
257
United
States
Secured
Overnight
Financing
Rate
+
0.62%
Goldman
Sachs
Group
Inc/The
0.62%,
11/17/2023
500
500
United
States
Secured
Overnight
Financing
Rate
+
0.54%
0.87%,
12/09/2026
300
302
United
States
Secured
Overnight
Financing
Rate
+
0.79%
3.00%,
04/26/2022
950
958
3.20%,
02/23/2023
300
317
HSBC
Holdings
PLC
2.63%,
11/07/2025
(f)
200
213
3
Month
USD
LIBOR
+
1.14%
3.95%,
05/18/2024
(f)
250
270
3
Month
USD
LIBOR
+
0.99%
Huntington
Bancshares
Inc/OH
2.63%,
08/06/2024
200
214
ING
Groep
NV
3.15%,
03/29/2022
450
465
JPMorgan
Chase
&
Co
1.05%,
11/19/2026
(f)
400
405
United
States
Secured
Overnight
Financing
Rate
+
0.80%
1.11%,
04/25/2023
1,000
1,009
3
Month
USD
LIBOR
+
0.90%
1.44%,
10/24/2023
500
509
3
Month
USD
LIBOR
+
1.23%
1.51%,
06/01/2024
(f)
300
308
United
States
Secured
Overnight
Financing
Rate
+
1.46%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
KeyBank
NA/Cleveland
OH
0.42%,
01/03/2024
$
500
$
500
United
States
Secured
Overnight
Financing
Rate
+
0.34%
1.25%,
03/10/2023
300
306
2.40%,
06/09/2022
400
412
3.30%,
02/01/2022
250
258
KeyCorp
5.10%,
03/24/2021
488
493
Morgan
Stanley
0.78%,
01/20/2023
368
369
United
States
Secured
Overnight
Financing
Rate
+
0.70%
1.61%,
10/24/2023
1,400
1,427
3
Month
USD
LIBOR
+
1.40%
4.10%,
05/22/2023
300
326
MUFG
Union
Bank
NA
2.10%,
12/09/2022
250
258
Natwest
Group
PLC
4.27%,
03/22/2025
(f)
250
277
3
Month
USD
LIBOR
+
1.76%
PNC
Bank
NA
0.72%,
07/27/2022
400
402
3
Month
USD
LIBOR
+
0.50%
2.70%,
11/01/2022
600
625
PNC
Financial
Services
Group
Inc/The
3.90%,
04/29/2024
150
166
Societe
Generale
SA
2.63%,
01/22/2025
(e)
300
318
State
Street
Corp
2.35%,
11/01/2025
(f)
200
213
United
States
Secured
Overnight
Financing
Rate
+
0.94%
3.10%,
05/15/2023
688
732
Truist
Bank
0.80%,
08/02/2022
250
251
3
Month
USD
LIBOR
+
0.59%
2.45%,
08/01/2022
700
723
2.63%,
01/15/2022
600
613
Truist
Financial
Corp
2.05%,
05/10/2021
200
201
2.90%,
03/03/2021
500
501
UBS
AG/London
1.75%,
04/21/2022
(e)
250
254
UBS
Group
AG
1.01%,
07/30/2024
(e),(f)
250
252
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.83%
3.49%,
05/23/2023
(e)
300
312
US
Bancorp
3.60%,
09/11/2024
600
664
US
Bank
NA/Cincinnati
OH
1.95%,
01/09/2023
250
258
2.65%,
05/23/2022
300
309
Wells
Fargo
&
Co
1.65%,
06/02/2024
(f)
400
411
United
States
Secured
Overnight
Financing
Rate
+
1.60%
2.16%,
02/11/2026
(f)
200
210
3
Month
USD
LIBOR
+
0.75%
2.19%,
04/30/2026
(f)
400
421
United
States
Secured
Overnight
Financing
Rate
+
2.00%
3.07%,
01/24/2023
1,000
1,029
$
30,287
Beverages
-
1.03%
Anheuser-Busch
InBev
Finance
Inc
3.65%,
02/01/2026
300
340
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2020
See
accompanying
notes.
219
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Beverages
(continued)
Anheuser-Busch
InBev
Worldwide
Inc
4.15%,
01/23/2025
$
500
$
569
Diageo
Capital
PLC
1.38%,
09/29/2025
200
206
Keurig
Dr
Pepper
Inc
3.55%,
05/25/2021
250
253
PepsiCo
Inc
0.40%,
10/07/2023
250
251
$
1,619
Biotechnology
-
1.46%
Amgen
Inc
2.65%,
05/11/2022
400
412
Biogen
Inc
3.63%,
09/15/2022
359
378
Gilead
Sciences
Inc
0.75%,
09/29/2023
1,500
1,505
$
2,295
Building
Materials
-
0.22%
Martin
Marietta
Materials
Inc
4.25%,
07/02/2024
309
345
Chemicals
-
0.93%
Air
Liquide
Finance
SA
1.75%,
09/27/2021
(e)
250
252
Celanese
US
Holdings
LLC
3.50%,
05/08/2024
200
216
Chevron
Phillips
Chemical
Co
LLC
/
Chevron
Phillips
Chemical
Co
LP
3.30%,
05/01/2023
(e)
200
212
DuPont
de
Nemours
Inc
4.21%,
11/15/2023
250
276
Westlake
Chemical
Corp
3.60%,
07/15/2022
200
207
3.60%,
08/15/2026
268
301
$
1,464
Commercial
Mortgage
Backed
Securities
-
6.47%
Cold
Storage
Trust
2020-ICE5
1.06%,
11/15/2037
(e)
600
602
1.00
x
1
Month
USD
LIBOR
+
0.90%
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
0.52%,
06/25/2025
299
300
0.52%,
11/25/2026
300
300
0.53%,
01/25/2025
198
198
0.57%,
05/25/2026
125
125
0.70%,
01/25/2030
746
743
0.73%,
03/25/2030
499
496
0.74%,
11/25/2029
349
346
0.79%,
03/25/2030
399
398
0.80%,
02/25/2030
498
496
0.81%,
10/25/2029
1,000
993
0.83%,
10/25/2029
396
395
0.83%,
03/25/2030
497
496
0.85%,
04/25/2030
749
750
1.02%,
09/25/2029
1,394
1,391
1.34%,
09/25/2027
300
309
FRESB
2020-SB79
Mortgage
Trust
0.80%,
07/25/2040
(h)
500
503
0.99%,
07/25/2040
(h)
500
504
FRESB
2020-SB81Mortgage
Trust
0.72%,
10/25/2040
(h)
150
151
Ginnie
Mae
0.40%,
09/16/2055
(h),(i)
2,121
46
0.46%,
01/16/2054
(h),(i)
2,079
35
0.47%,
10/16/2054
(h),(i)
2,491
49
0.57%,
02/16/2055
(h),(i)
3,728
42
0.71%,
01/16/2055
(h),(i)
4,155
85
0.90%,
06/16/2045
(h),(i)
541
17
1.27%,
12/16/2036
(h),(i)
444
14
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
GS
Mortgage
Securities
Trust
2017-GS6
1.95%,
05/10/2050
$
245
$
247
JPMDB
Commercial
Mortgage
Securities
Trust
2016-C4
1.54%,
12/15/2049
134
134
$
10,165
Commercial
Services
-
0.26%
PayPal
Holdings
Inc
1.35%,
06/01/2023
400
410
Computers
-
1.04%
Apple
Inc
1.13%,
05/11/2025
900
926
3.25%,
02/23/2026
139
156
Dell
International
LLC
/
EMC
Corp
5.45%,
06/15/2023
(e)
200
221
Hewlett
Packard
Enterprise
Co
4.45%,
10/02/2023
300
330
$
1,633
Cosmetics
&
Personal
Care
-
0.13%
Unilever
Capital
Corp
0.38%,
09/14/2023
200
201
Credit
Card
Asset
Backed
Securities
-
0.84%
BA
Credit
Card
Trust
0.34%,
05/15/2026
500
500
1.74%,
01/15/2025
800
820
$
1,320
Diversified
Financial
Services
-
1.04%
American
Express
Co
2.75%,
05/20/2022
200
206
3.00%,
02/22/2021
550
551
3.70%,
11/05/2021
150
154
Capital
One
Bank
USA
NA
2.01%,
01/27/2023
(f)
250
254
United
States
Secured
Overnight
Financing
Rate
+
0.62%
Capital
One
Financial
Corp
3.90%,
01/29/2024
242
265
USAA
Capital
Corp
2.63%,
06/01/2021
(e)
200
202
$
1,632
Electric
-
6.45%
Alabama
Power
Co
2.45%,
03/30/2022
250
256
Alliant
Energy
Finance
LLC
1.40%,
03/15/2026
(e)
150
151
3.75%,
06/15/2023
(e)
900
964
American
Electric
Power
Co
Inc
0.68%,
11/01/2023
300
300
3
Month
USD
LIBOR
+
0.48%
Black
Hills
Corp
4.25%,
11/30/2023
750
822
CenterPoint
Energy
Inc
3.60%,
11/01/2021
300
308
Dominion
Energy
Inc
0.75%,
09/15/2023
350
351
3
Month
USD
LIBOR
+
0.53%
2.72%,
08/15/2021
(h)
200
202
3.07%,
08/15/2024
(h)
200
216
DTE
Energy
Co
1.05%,
06/01/2025
100
101
2.25%,
11/01/2022
250
258
2.53%,
10/01/2024
300
320
2.60%,
06/15/2022
200
206
Duke
Energy
Corp
0.90%,
09/15/2025
250
251
Duke
Energy
Florida
LLC
3.10%,
08/15/2021
250
253
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2020
See
accompanying
notes.
220
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Emera
US
Finance
LP
2.70%,
06/15/2021
$
300
$
302
Entergy
Louisiana
LLC
0.62%,
11/17/2023
300
301
Evergy
Inc
2.45%,
09/15/2024
200
212
Exelon
Corp
3.50%,
06/01/2022
500
520
Fortis
Inc/Canada
3.06%,
10/04/2026
413
455
NextEra
Energy
Capital
Holdings
Inc
2.40%,
09/01/2021
500
507
2.90%,
04/01/2022
150
155
3.15%,
04/01/2024
150
162
Public
Service
Enterprise
Group
Inc
0.80%,
08/15/2025
400
400
2.88%,
06/15/2024
100
108
San
Diego
Gas
&
Electric
Co
1.91%,
02/01/2022
43
43
Southern
California
Edison
Co
1.85%,
02/01/2022
89
89
Tucson
Electric
Power
Co
3.05%,
03/15/2025
100
109
Vistra
Operations
Co
LLC
3.70%,
01/30/2027
(e)
500
551
WEC
Energy
Group
Inc
0.55%,
09/15/2023
750
754
Xcel
Energy
Inc
0.50%,
10/15/2023
500
501
$
10,128
Electrical
Components
&
Equipment
-
0.19%
Emerson
Electric
Co
0.88%,
10/15/2026
300
302
Electronics
-
0.74%
Honeywell
International
Inc
0.48%,
08/19/2022
250
250
1.85%,
11/01/2021
400
405
2.15%,
08/08/2022
200
205
Roper
Technologies
Inc
1.00%,
09/15/2025
300
304
$
1,164
Environmental
Control
-
0.20%
Republic
Services
Inc
2.50%,
08/15/2024
100
107
Waste
Management
Inc
0.75%,
11/15/2025
200
200
$
307
Finance
-
Mortgage
Loan/Banker
-
0.99%
Fannie
Mae
2.00%,
01/05/2022
600
611
Freddie
Mac
0.25%,
06/26/2023
200
201
2.75%,
06/19/2023
700
744
$
1,556
Food
-
0.86%
Mars
Inc
0.88%,
07/16/2026
(e)
500
502
Nestle
Holdings
Inc
0.38%,
01/15/2024
(e)
850
851
$
1,353
Forest
Products
&
Paper
-
0.27%
Georgia-Pacific
LLC
1.75%,
09/30/2025
(e)
400
418
Gas
-
0.26%
NiSource
Inc
0.95%,
08/15/2025
400
402
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Services
-
0.97%
Centene
Corp
4.25%,
12/15/2027
$
462
$
490
5.38%,
08/15/2026
(e)
236
249
HCA
Inc
5.25%,
06/15/2026
662
783
$
1,522
Home
Builders
-
0.14%
DR
Horton
Inc
2.50%,
10/15/2024
200
213
Home
Furnishings
-
0.30%
Panasonic
Corp
2.54%,
07/19/2022
(e)
200
206
2.68%,
07/19/2024
(e)
250
267
$
473
Insurance
-
4.75%
Allstate
Corp/The
0.88%,
03/29/2023
250
252
3
Month
USD
LIBOR
+
0.63%
3.15%,
06/15/2023
150
160
Five
Corners
Funding
Trust
4.42%,
11/15/2023
(e)
750
832
Guardian
Life
Global
Funding
0.88%,
12/10/2025
(e)
500
503
1.10%,
06/23/2025
(e)
550
558
MassMutual
Global
Funding
II
0.85%,
06/09/2023
(e)
500
506
2.00%,
04/15/2021
(e)
450
452
2.75%,
06/22/2024
(e)
500
537
Metropolitan
Life
Global
Funding
I
0.90%,
06/08/2023
(e)
350
355
1.95%,
09/15/2021
(e)
470
476
3.60%,
01/11/2024
(e)
600
653
New
York
Life
Global
Funding
0.75%,
06/10/2022
(e)
1,000
1,006
3
Month
USD
LIBOR
+
0.52%
2.00%,
04/13/2021
(e)
400
402
2.00%,
01/22/2025
(e)
200
210
2.30%,
06/10/2022
(e)
238
245
Prudential
Financial
Inc
1.50%,
03/10/2026
300
311
$
7,458
Iron
&
Steel
-
0.17
%
Nucor
Corp
2.00%,
06/01/2025
250
265
Machinery
-
Construction
&
Mining
-
0.20%
Caterpillar
Financial
Services
Corp
2.55%,
11/29/2022
300
313
Machinery
-
Diversified
-
0.26%
John
Deere
Capital
Corp
1.20%,
04/06/2023
150
153
Otis
Worldwide
Corp
0.68%,
04/05/2023
250
250
3
Month
USD
LIBOR
+
0.45%
$
403
Media
-
1.28%
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
4.91%,
07/23/2025
292
339
Discovery
Communications
LLC
4.90%,
03/11/2026
502
592
Sky
Ltd
3.13%,
11/26/2022
(e)
130
137
ViacomCBS
Inc
4.75%,
05/15/2025
450
523
Walt
Disney
Co/The
1.75%,
01/13/2026
400
419
$
2,010
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2020
See
accompanying
notes.
221
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mining
-
0.46%
Anglo
American
Capital
PLC
5.38%,
04/01/2025
(e)
$
400
$
468
Glencore
Funding
LLC
1.63%,
09/01/2025
(e)
250
257
$
725
Miscellaneous
Manufacturers
-
0.32%
Trane
Technologies
Global
Holding
Co
Ltd
2.90%,
02/21/2021
500
502
Mortgage
Backed
Securities
-
2.98%
Chase
Home
Lending
Mortgage
Trust
2019-1
3.50%,
03/25/2050
(e),(h)
75
75
CHL
Mortgage
Pass-Through
Trust
2003-46
2.69%,
01/19/2034
(h)
15
15
Credit
Suisse
First
Boston
Mortgage
Securities
Corp
5.00%,
09/25/2019
1
1
CSMC
2017-HL1
Trust
3.50%,
06/25/2047
(e),(h)
80
81
CSMC
2017-HL2
Trust
3.50%,
10/25/2047
(e),(h)
54
54
GS
Mortage-Backed
Securities
Trust
2020-PJ1
3.50%,
05/25/2050
(e),(h)
47
48
GS
Mortgage-Backed
Securities
Corp
Trust
2020-PJ3
3.00%,
10/25/2050
(e),(h)
74
75
JP
Morgan
Mortgage
Trust
2004-A3
2.82%,
07/25/2034
(h)
11
11
JP
Morgan
Mortgage
Trust
2004-S1
5.00%,
09/25/2034
19
19
JP
Morgan
Mortgage
Trust
2016-4
3.50%,
10/25/2046
(e),(h)
154
155
JP
Morgan
Mortgage
Trust
2017-2
3.50%,
05/25/2047
(e),(h)
102
102
JP
Morgan
Mortgage
Trust
2017-4
3.50%,
11/25/2048
(e),(h)
39
39
JP
Morgan
Mortgage
Trust
2017-6
3.50%,
12/25/2048
(e),(h)
37
37
JP
Morgan
Mortgage
Trust
2018-3
3.50%,
09/25/2048
(e),(h)
130
131
JP
Morgan
Mortgage
Trust
2018-4
3.50%,
10/25/2048
(e),(h)
58
59
JP
Morgan
Mortgage
Trust
2018-6
3.50%,
12/25/2048
(e),(h)
19
19
JP
Morgan
Mortgage
Trust
2019-5
4.00%,
11/25/2049
(e),(h)
38
38
JP
Morgan
Mortgage
Trust
2020-5
3.00%,
12/25/2050
(e),(h)
74
76
Morgan
Stanley
Residential
Mortgage
Loan
Trust
2014-1
2.50%,
12/25/2050
(e),(h)
250
258
PHH
Mortgage
Trust
Series
2008-CIM1
2.40%,
06/25/2038
61
60
1.00
x
1
Month
USD
LIBOR
+
2.25%
Prime
Mortgage
Trust
2005-2
5.25%,
07/25/2020
25
25
PSMC
2018-1
Trust
3.50%,
02/25/2048
(e),(h)
121
121
PSMC
2018-2
Trust
3.50%,
06/25/2048
(e),(h)
47
47
PSMC
2020-1
Trust
3.50%,
01/25/2050
(e),(h)
191
194
PSMC
2020-2
Trust
3.00%,
05/25/2050
(e),(h)
171
174
Sequoia
Mortgage
Trust
2013-4
1.55%,
04/25/2043
(h)
13
13
Sequoia
Mortgage
Trust
2017-1
3.50%,
02/25/2047
(e),(h)
159
160
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Sequoia
Mortgage
Trust
2017-2
3.50%,
02/25/2047
(e),(h)
$
75
$
75
Sequoia
Mortgage
Trust
2017-3
3.50%,
04/25/2047
(e),(h)
95
95
Sequoia
Mortgage
Trust
2018-3
3.50%,
03/25/2048
(e),(h)
55
55
Sequoia
Mortgage
Trust
2018-5
3.50%,
05/25/2048
(e),(h)
44
44
Sequoia
Mortgage
Trust
2018-CH3
4.00%,
08/25/2048
(e),(h)
24
24
Sequoia
Mortgage
Trust
2020-1
3.50%,
02/25/2050
(e),(h)
42
42
Sequoia
Mortgage
Trust
2020-4
2.50%,
11/25/2050
(e),(h)
332
341
Wells
Fargo
Mortgage
Backed
Securities
2018-1
3.50%,
07/25/2047
(e),(h)
110
111
Wells
Fargo
Mortgage
Backed
Securities
2019-3
Trust
3.00%,
07/25/2049
(e),(h)
94
94
Wells
Fargo
Mortgage
Backed
Securities
2019-4
Trust
3.50%,
09/25/2049
(e),(h)
109
110
Wells
Fargo
Mortgage
Backed
Securities
2020-1
Trust
3.00%,
12/25/2049
(e),(h)
269
273
Wells
Fargo
Mortgage
Backed
Securities
2020-2
Trust
3.00%,
12/25/2049
(e),(h)
310
315
Wells
Fargo
Mortgage
Backed
Securities
2020-3
Trust
3.00%,
06/25/2050
(e),(h)
102
104
Wells
Fargo
Mortgage
Backed
Securities
2020-4
Trust
3.00%,
07/25/2050
(e),(h)
688
709
Wells
Fargo
Mortgage
Backed
Securities
2020-5
Trust
2.50%,
09/25/2050
(e),(h)
193
198
$
4,677
Oil
&
Gas
-
2.15%
BP
Capital
Markets
PLC
3.81%,
02/10/2024
500
549
Chevron
USA
Inc
0.43%,
08/11/2023
300
302
0.69%,
08/12/2025
400
402
Cimarex
Energy
Co
4.38%,
06/01/2024
250
273
Exxon
Mobil
Corp
1.57%,
04/15/2023
150
154
2.99%,
03/19/2025
200
219
Marathon
Petroleum
Corp
4.50%,
05/01/2023
200
217
Phillips
66
0.83%,
02/26/2021
100
100
3
Month
USD
LIBOR
+
0.60%
0.84%,
02/15/2024
250
250
3
Month
USD
LIBOR
+
0.62%
3.85%,
04/09/2025
150
168
Shell
International
Finance
BV
2.38%,
08/21/2022
300
311
Suncor
Energy
Inc
2.80%,
05/15/2023
300
316
3.10%,
05/15/2025
100
109
$
3,370
Oil
&
Gas
Services
-
0.26%
Baker
Hughes
a
GE
Co
LLC
/
Baker
Hughes
Co-
Obligor
Inc
2.77%,
12/15/2022
190
198
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2020
See
accompanying
notes.
222
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
Services
(continued)
Schlumberger
Holdings
Corp
3.75%,
05/01/2024
(e)
$
200
$
218
$
416
Other
Asset
Backed
Securities
-
6.06%
CCG
Receivables
Trust
2.80%,
09/14/2026
(e)
258
262
CCG
Receivables
Trust
2018-1
2.50%,
06/16/2025
(e)
5
5
CCG
Receivables
Trust
2018-2
3.09%,
12/15/2025
(e)
116
117
CCG
Receivables
Trust
2019-2
2.11%,
03/15/2027
(e)
291
295
CCG
Receivables
Trust
2020-1
0.54%,
12/14/2027
(e)
300
300
Drug
Royalty
III
LP
1
2.74%,
04/15/2027
(e)
48
48
1.00
x
3
Month
USD
LIBOR
+
2.50%
4.27%,
10/15/2031
(e)
159
164
MMAF
Equipment
Finance
LLC
2019-A
2.84%,
01/10/2022
(e)
86
87
MMAF
Equipment
Finance
LLC
2020-A
0.74%,
04/09/2024
(e)
500
502
MMAF
Equipment
Finance
LLC
2020-B
0.38%,
08/14/2023
(e)
400
400
MVW
Owner
Trust
2015-1
2.52%,
12/20/2032
(e)
114
114
MVW
Owner
Trust
2016-1
2.25%,
12/20/2033
(e)
100
101
MVW
Owner
Trust
2018-1
3.45%,
01/21/2036
(e)
215
224
PFS
Financing
Corp
0.93%,
08/15/2024
(e)
500
503
0.97%,
02/15/2026
(e)
350
352
2.23%,
10/15/2024
(e)
750
771
2.86%,
04/15/2024
(e)
250
257
3.19%,
04/17/2023
(e)
250
252
Verizon
Owner
Trust
2018-1
2.82%,
09/20/2022
(e)
117
118
Verizon
Owner
Trust
2018-A
3.23%,
04/20/2023
468
475
Verizon
Owner
Trust
2019-A
2.93%,
09/20/2023
500
510
Verizon
Owner
Trust
2019-B
2.33%,
12/20/2023
500
510
Verizon
Owner
Trust
2019-C
1.94%,
04/22/2024
500
511
Verizon
Owner
Trust
2020-A
1.85%,
07/22/2024
300
307
Verizon
Owner
Trust
2020-B
0.47%,
02/20/2025
500
502
Verizon
Owner
Trust
2020-C
0.41%,
04/21/2025
500
501
Volvo
Financial
Equipment
LLC
0.37%,
04/17/2023
(e)
625
625
Volvo
Financial
Equipment
LLC
Series
2018-1
2.76%,
10/17/2022
(e)
100
101
Volvo
Financial
Equipment
LLC
Series
2019-1
3.00%,
03/15/2023
(e)
300
305
Volvo
Financial
Equipment
LLC
Series
2019-2
2.02%,
08/15/2022
(e)
157
158
VSE
2018-A
VOI
Mortgage
LLC
3.56%,
02/20/2036
(e)
133
139
$
9,516
Pharmaceuticals
-
2.88%
AbbVie
Inc
2.15%,
11/19/2021
600
610
2.30%,
05/14/2021
200
201
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
AstraZeneca
PLC
0.70%,
04/08/2026
$
500
$
497
Bayer
US
Finance
II
LLC
3.88%,
12/15/2023
(e)
200
218
Bristol-Myers
Squibb
Co
0.54%,
11/13/2023
300
301
0.75%,
11/13/2025
300
302
2.90%,
07/26/2024
150
163
3.63%,
05/15/2024
350
384
CVS
Health
Corp
2.63%,
08/15/2024
250
268
3.35%,
03/09/2021
300
302
GlaxoSmithKline
Capital
PLC
0.53%,
10/01/2023
500
501
Merck
&
Co
Inc
0.75%,
02/24/2026
200
202
Novartis
Capital
Corp
1.75%,
02/14/2025
300
315
Pfizer
Inc
2.80%,
03/11/2022
250
257
$
4,521
Pipelines
-
1.81%
Buckeye
Partners
LP
4.15%,
07/01/2023
400
411
Enterprise
Products
Operating
LLC
3.50%,
02/01/2022
400
414
Florida
Gas
Transmission
Co
LLC
3.88%,
07/15/2022
(e)
250
260
Kinder
Morgan
Inc
1.52%,
01/15/2023
500
505
3
Month
USD
LIBOR
+
1.28%
ONEOK
Partners
LP
5.00%,
09/15/2023
325
357
Southeast
Supply
Header
LLC
4.25%,
06/15/2024
(e)
200
199
TransCanada
PipeLines
Ltd
2.43%,
05/15/2067
900
704
3
Month
USD
LIBOR
+
2.21%
$
2,850
REITs
-
2.34%
American
Tower
Corp
2.40%,
03/15/2025
200
213
American
Tower
Trust
#1
3.07%,
03/15/2048
(e)
1,225
1,249
Crown
Castle
International
Corp
1.35%,
07/15/2025
250
255
CubeSmart
LP
4.00%,
11/15/2025
65
73
4.38%,
12/15/2023
292
320
Omega
Healthcare
Investors
Inc
4.50%,
01/15/2025
269
295
4.95%,
04/01/2024
250
272
SBA
Tower
Trust
1.88%,
07/15/2050
(e)
125
129
3.17%,
04/09/2047
(e)
400
403
3.45%,
03/15/2048
(e)
100
106
Ventas
Realty
LP
3.50%,
04/15/2024
198
215
Welltower
Inc
3.75%,
03/15/2023
134
142
$
3,672
Savings
&
Loans
-
0.00%
Washington
Mutual
Bank
/
Henderson
NV
0.00%,
01/15/2013
(d)
200
—
Semiconductors
-
0.86%
Broadcom
Inc
2.25%,
11/15/2023
150
157
4.70%,
04/15/2025
200
229
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2020
See
accompanying
notes.
223
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Semiconductors
(continued)
Microchip
Technology
Inc
4.33%,
06/01/2023
$
200
$
216
Micron
Technology
Inc
2.50%,
04/24/2023
300
313
NXP
BV
/
NXP
Funding
LLC
4.63%,
06/01/2023
(e)
200
219
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA
Inc
2.70%,
05/01/2025
(e)
200
215
$
1,349
Software
-
0.13%
Intuit
Inc
0.65%,
07/15/2023
200
202
Student
Loan
Asset
Backed
Securities
-
3.36%
Commonbond
Student
Loan
Trust
2018-BGS
3.56%,
09/25/2045
(e)
165
172
Commonbond
Student
Loan
Trust
2018-C-GS
3.87%,
02/25/2046
(e)
212
219
Commonbond
Student
Loan
Trust
2019-A-GS
2.54%,
01/25/2047
(e)
334
342
Commonbond
Student
Loan
Trust
2020-A-GS
1.98%,
08/25/2050
(e)
156
160
Keycorp
Student
Loan
Trust
2000-b
0.52%,
07/25/2029
199
198
1.00
x
3
Month
USD
LIBOR
+
0.31%
KeyCorp
Student
Loan
Trust
2003-A
0.74%,
01/25/2037
505
502
1.00
x
3
Month
USD
LIBOR
+
0.53%
Laurel
Road
Prime
Student
Loan
Trust
2019-A
2.34%,
10/25/2048
(e)
38
39
Laurel
Road
Prime
Student
Loan
Trust
2020-A
0.72%,
11/25/2050
(e)
179
180
Navient
Private
Education
Refi
Loan
Trust
2019-A
3.42%,
01/15/2043
(e)
82
86
Navient
Private
Education
Refi
Loan
Trust
2019-C
2.82%,
02/15/2068
(e)
42
42
Navient
Private
Education
Refi
Loan
Trust
2019-D
0.56%,
12/15/2059
(e)
14
14
1.00
x
1
Month
USD
LIBOR
+
0.40%
Navient
Private
Education
Refi
Loan
Trust
2019-E
2.39%,
05/15/2068
(e)
38
39
Navient
Private
Education
Refi
Loan
Trust
2019-F
2.18%,
08/15/2068
(e)
17
17
Navient
Private
Education
Refi
Loan
Trust
2019-G
2.40%,
10/15/2068
(e)
255
261
Navient
Private
Education
Refi
Loan
Trust
2020-A
0.51%,
11/15/2068
(e)
81
81
1.00
x
1
Month
USD
LIBOR
+
0.35%
Navient
Private
Education
Refi
Loan
Trust
2020-B
1.80%,
01/15/2069
(e)
107
108
Navient
Private
Education
Refi
Loan
Trust
2020-D
1.69%,
05/15/2069
(e)
358
365
Navient
Private
Education
Refi
Loan
Trust
2020-F
1.22%,
07/15/2069
(e)
376
379
Navient
Private
Education
Refi
Loan
Trust
2020-G
1.17%,
09/16/2069
(e)
433
436
Navient
Private
Education
Refi
Loan
Trust
2020-H
1.31%,
01/15/2069
(e)
300
303
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Student
Loan
Asset
Backed
Securities
(continued)
Navient
Student
Loan
Trust
2019-B
0.56%,
12/15/2059
(e)
$
23
$
23
1.00
x
1
Month
USD
LIBOR
+
0.40%
SLM
Private
Credit
Student
Loan
Trust
2004-A
0.62%,
06/15/2033
87
86
1.00
x
3
Month
USD
LIBOR
+
0.40%
SLM
Private
Credit
Student
Loan
Trust
2004-B
0.55%,
03/15/2024
212
210
1.00
x
3
Month
USD
LIBOR
+
0.33%
SLM
Private
Credit
Student
Loan
Trust
2006-A
0.51%,
06/15/2039
584
561
1.00
x
3
Month
USD
LIBOR
+
0.29%
SLM
Private
Credit
Student
Loan
Trust
2006-B
0.42%,
12/15/2039
232
223
1.00
x
3
Month
USD
LIBOR
+
0.20%
SMB
Private
Education
Loan
Trust
2019-B
0.51%,
07/15/2026
(e)
29
29
1.00
x
1
Month
USD
LIBOR
+
0.35%
SMB
Private
Education
Loan
Trust
2020-A
0.46%,
03/15/2027
(e)
201
201
1.00
x
1
Month
USD
LIBOR
+
0.30%
$
5,276
Telecommunications
-
1.98%
AT&T
Inc
1.11%,
02/15/2023
250
253
3
Month
USD
LIBOR
+
0.89%
Crown
Castle
Towers
LLC
3.22%,
05/15/2022
(e)
502
507
4.24%,
07/15/2048
(e)
290
334
Sprint
Spectrum
Co
LLC
/
Sprint
Spectrum
Co
II
LLC
/
Sprint
Spectrum
Co
III
LLC
3.36%,
03/20/2023
(e)
141
142
4.74%,
03/20/2025
(e)
950
1,029
5.15%,
03/20/2028
(e)
500
579
Vodafone
Group
PLC
3.75%,
01/16/2024
250
273
$
3,117
Transportation
-
0.14%
Ryder
System
Inc
3.75%,
06/09/2023
200
215
Trucking
&
Leasing
-
0.14%
Penske
Truck
Leasing
Co
Lp
/
PTL
Finance
Corp
3.45%,
07/01/2024
(e)
200
218
TOTAL
BONDS
$
135,006
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
11.00%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
0.00%
3.43%,
09/01/2035
$
9
$
9
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.25%
Federal
National
Mortgage
Association
(FNMA)
-
0.04%
1.82%,
04/01/2033
12
12
1.00
x
6
Month
USD
LIBOR
+
1.51%
2.41%,
11/01/2032
1
1
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.29%
2.41%,
07/01/2034
8
8
1.00
x
12
Month
USD
LIBOR
+
1.63%
2.43%,
08/01/2034
5
5
1.00
x
12
Month
USD
LIBOR
+
1.63%
2.86%,
02/01/2037
14
14
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.11%
2.94%,
02/01/2035
3
3
1.00
x
6
Month
USD
LIBOR
+
2.07%
3.13%,
12/01/2033
9
9
1.00
x
6
Month
USD
LIBOR
+
2.25%
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2020
See
accompanying
notes.
224
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)
(continued)
3.64%,
12/01/2032
$
4
$
4
1.00
x
12
Month
USD
LIBOR
+
1.64%
3.75%,
01/01/2035
4
4
1.00
x
12
Month
USD
LIBOR
+
1.75%
8.00%,
05/01/2027
3
3
$
63
U.S.
Treasury
-
1.82%
1.38%,
01/31/2022
400
405
1.50%,
11/30/2021
400
405
1.63%,
08/31/2022
2,000
2,051
$
2,861
U.S.
Treasury
Bill
-
9.14%
0.08%,
03/11/2021
(j)
1,000
1,000
0.08%,
05/13/2021
(j)
600
600
0.08%,
05/20/2021
(j)
500
500
0.09%,
02/11/2021
(j)
750
750
0.09%,
02/18/2021
(j)
1,000
1,000
0.09%,
04/08/2021
(j)
600
600
0.09%,
05/27/2021
(j)
1,000
999
0.09%,
06/03/2021
(j)
600
599
0.09%,
06/17/2021
(j)
500
500
0.10%,
03/04/2021
(j)
1,000
1,000
0.10%,
04/01/2021
(j)
600
600
0.10%,
04/29/2021
(j)
600
600
0.10%,
05/06/2021
(j)
600
600
0.11%,
01/14/2021
(j)
750
750
0.11%,
01/21/2021
(j)
750
750
0.11%,
02/04/2021
(j)
1,000
1,000
0.11%,
03/25/2021
(j)
500
500
0.11%,
04/15/2021
(j)
500
500
0.11%,
04/22/2021
(j)
500
500
0.14%,
01/07/2021
(j)
500
500
0.15%,
01/28/2021
(j)
500
500
$
14,348
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
17,281
Total
Investments
$
154,843
Other
Assets
and
Liabilities
- 1.39%
2,176
TOTAL
NET
ASSETS
-
100.00%
$
157,019
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$360
or
0.23%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$43,810
or
27.90%
of
net
assets.
(f)
Rate
shown
is
as
of
period
end.
The
rate
may
be
a
variable
or
floating
rate
or
a
fixed
rate
which
may
convert
to
a
variable
or
floating
rate
in
the
future.
(g)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(h)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions. These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(i)
Security
is
an
Interest
Only
Strip.
(j)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Portfolio
Summary (unaudited)
Sector
Percent
Financial
27.42%
Asset
Backed
Securities
18.06%
Government
11.95%
Mortgage
Securities
9.49%
Consumer,
Non-cyclical
7.96%
Utilities
6.71%
Energy
4.22%
Communications
3.26%
Industrial
2.58%
Technology
2.03%
Basic
Materials
1.83%
Money
Market
Funds
1.63%
Consumer,
Cyclical
1.47%
Other
Assets
and
Liabilities
1.39%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
4,444
$
89,931
$
92,179
$
2,196
$
4,444
$
89,931
$
92,179
$
2,196
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
10
$
—
$
—
$
—
$
10
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
5
Year
Note;
March
2021
Short
4
$
505
$
—
Total
$
—
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
SmallCap
Account
December
31,
2020
See
accompanying
notes.
225
INVESTMENT
COMPANIES
-
2
.78
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
2
.78
%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.01%
(a),(b)
4,495,425
$
4,495
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
1,177,034
1,177
$
5,672
TOTAL
INVESTMENT
COMPANIES
$
5,672
COMMON
STOCKS
-
99
.92
%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
0
.75
%
Aerojet
Rocketdyne
Holdings
Inc
(d)
28,900
$
1,527
Agriculture
-
2
.33
%
Darling
Ingredients
Inc
(d)
63,100
3,641
Vital
Farms
Inc
(d),(e)
43,900
1,111
$
4,752
Airlines
-
0
.65
%
SkyWest
Inc
33,100
1,334
Automobile
Parts
&
Equipment
-
1
.10
%
Modine
Manufacturing
Co
(d)
51,700
649
Visteon
Corp
(d)
12,700
1,594
$
2,243
Banks
-
5
.50
%
BancFirst
Corp
11,700
687
First
Foundation
Inc
34,900
698
First
Horizon
Corp
100,156
1,278
First
Interstate
BancSystem
Inc
43,000
1,753
First
Merchants
Corp
36,700
1,373
First
Midwest
Bancorp
Inc/IL
84,700
1,348
Independent
Bank
Corp/MI
22,400
414
Lakeland
Bancorp
Inc
26,500
337
United
Community
Banks
Inc/GA
78,120
2,222
WesBanco
Inc
37,500
1,123
$
11,233
Biotechnology
-
5
.63
%
Acceleron
Pharma
Inc
(d)
10,800
1,382
ADC
Therapeutics
SA
(d),(e)
15,600
499
Allogene
Therapeutics
Inc
(d)
14,500
366
Bluebird
Bio
Inc
(d)
7,800
337
Denali
Therapeutics
Inc
(d)
30,700
2,571
FibroGen
Inc
(d)
22,800
846
Insmed
Inc
(d)
40,300
1,342
Iovance
Biotherapeutics
Inc
(d)
30,400
1,411
MacroGenics
Inc
(d)
30,700
702
Magenta
Therapeutics
Inc
(d)
43,900
344
Precision
BioSciences
Inc
(d)
63,800
532
Seagen
Inc
(d)
6,700
1,173
$
11,505
Building
Materials
-
2
.30
%
Builders
FirstSource
Inc
(d)
64,600
2,637
Masonite
International
Corp
(d)
20,900
2,055
$
4,692
Chemicals
-
1
.09
%
Cabot
Corp
34,300
1,539
Koppers
Holdings
Inc
(d)
22,200
692
$
2,231
Commercial
Services
-
5
.20
%
AMN
Healthcare
Services
Inc
(d)
21,300
1,454
BrightView
Holdings
Inc
(d)
68,200
1,031
Heidrick
&
Struggles
International
Inc
9,000
264
HMS
Holdings
Corp
(d)
64,500
2,370
Huron
Consulting
Group
Inc
(d)
28,000
1,651
Medifast
Inc
6,700
1,316
Nesco
Holdings
Inc
(d),(e)
74,400
548
Triton
International
Ltd/Bermuda
40,900
1,984
$
10,618
Computers
-
3
.00
%
CACI
International
Inc
(d)
7,100
1,770
ExlService
Holdings
Inc
(d)
19,200
1,634
Perspecta
Inc
83,600
2,013
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Computers
(continued)
Ping
Identity
Holding
Corp
(d)
24,600
$
705
$
6,122
Consumer
Products
-
0
.88
%
Central
Garden
&
Pet
Co
-
A
Shares
(d)
34,320
1,247
Quanex
Building
Products
Corp
24,567
545
$
1,792
Diversified
Financial
Services
-
3
.80
%
Federated
Hermes
Inc
28,400
820
Lazard
Ltd
19,800
838
LPL
Financial
Holdings
Inc
11,100
1,157
Piper
Sandler
Cos
18,750
1,892
Stifel
Financial
Corp
60,700
3,063
$
7,770
Electric
-
0
.88
%
Portland
General
Electric
Co
42,000
1,796
Electrical
Components
&
Equipment
-
1
.56
%
EnerSys
31,400
2,608
nLight
Inc
(d)
17,590
574
$
3,182
Electronics
-
3
.49
%
Advanced
Energy
Industries
Inc
(d)
23,500
2,279
Atkore
International
Group
Inc
(d)
45,600
1,875
SYNNEX
Corp
15,500
1,262
Vishay
Intertechnology
Inc
83,200
1,723
$
7,139
Energy
-
Alternate
Sources
-
0
.48
%
Array
Technologies
Inc
(d)
22,604
975
Engineering
&
Construction
-
2
.72
%
Dycom
Industries
Inc
(d)
31,600
2,386
Great
Lakes
Dredge
&
Dock
Corp
(d)
102,100
1,345
MYR
Group
Inc
(d)
16,300
980
Tutor
Perini
Corp
(d)
65,486
848
$
5,559
Entertainment
-
3
.10
%
Caesars
Entertainment
Inc
(d)
48,900
3,632
Golden
Entertainment
Inc
(d)
45,900
913
Vail
Resorts
Inc
6,400
1,785
$
6,330
Food
-
0
.99
%
Performance
Food
Group
Co
(d)
42,418
2,020
Forest
Products
&
Paper
-
0
.20
%
Glatfelter
Corp
25,000
410
Gas
-
0
.77
%
Southwest
Gas
Holdings
Inc
26,000
1,580
Healthcare
-
Products
-
4
.11
%
Adaptive
Biotechnologies
Corp
(d)
23,200
1,372
Castle
Biosciences
Inc
(d)
9,500
638
Natera
Inc
(d)
34,400
3,423
Nevro
Corp
(d)
11,900
2,060
STAAR
Surgical
Co
(d)
11,500
911
$
8,404
Healthcare
-
Services
-
4
.51
%
Accolade
Inc
(d)
16,842
732
Addus
HomeCare
Corp
(d)
21,500
2,517
American
Well
Corp
(d),(e)
2,600
66
Encompass
Health
Corp
26,000
2,150
Syneos
Health
Inc
(d)
33,800
2,303
Teladoc
Health
Inc
(d)
7,200
1,440
$
9,208
Holding
Companies
-
Diversified
-
2
.07
%
Ajax
I
(d)
86,200
1,070
GS
Acquisition
Holdings
Corp
II
(d)
180,600
2,059
Vesper
Healthcare
Acquisition
Corp
(d)
90,100
1,092
$
4,221
Home
Builders
-
1
.25
%
Taylor
Morrison
Home
Corp
(d)
99,400
2,550
Schedule
of
Investments
SmallCap
Account
December
31,
2020
See
accompanying
notes.
226
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Home
Furnishings
-
0
.76
%
Purple
Innovation
Inc
(d)
47,034
$
1,549
Insurance
-
2
.90
%
CNO
Financial
Group
Inc
58,500
1,300
Essent
Group
Ltd
33,100
1,430
Hanover
Insurance
Group
Inc/The
17,500
2,046
Reinsurance
Group
of
America
Inc
3,500
406
Stewart
Information
Services
Corp
7,005
339
Trean
Insurance
Group
Inc
(d)
30,400
398
$
5,919
Internet
-
1
.69
%
Eventbrite
Inc
(d)
73,400
1,328
Leslie's
Inc
(d),(e)
29,800
827
Revolve
Group
Inc
(d)
41,700
1,300
$
3,455
Iron
&
Steel
-
1
.43
%
Cleveland-Cliffs
Inc
201,300
2,931
Leisure
Products
&
Services
-
1
.00
%
Lindblad
Expeditions
Holdings
Inc
(d)
32,000
548
Planet
Fitness
Inc
(d)
19,200
1,490
$
2,038
Lodging
-
0
.92
%
Extended
Stay
America
Inc
126,500
1,874
Machinery
-
Diversified
-
0
.51
%
Columbus
McKinnon
Corp/NY
27,000
1,038
Media
-
0
.51
%
World
Wrestling
Entertainment
Inc
21,900
1,052
Metal
Fabrication
&
Hardware
-
1
.22
%
Rexnord
Corp
63,100
2,492
Mining
-
0
.51
%
Alcoa
Corp
(d)
34,320
791
Piedmont
Lithium
Ltd
ADR
(d)
9,400
250
$
1,041
Miscellaneous
Manufacturers
-
1
.23
%
Hillenbrand
Inc
50,200
1,998
Trinseo
SA
10,000
512
$
2,510
Oil
&
Gas
-
0
.72
%
Parsley
Energy
Inc
80,400
1,142
PDC
Energy
Inc
(d)
16,200
332
$
1,474
Oil
&
Gas
Services
-
0
.45
%
ChampionX
Corp
(d)
60,243
922
Packaging
&
Containers
-
0
.78
%
Graphic
Packaging
Holding
Co
94,700
1,604
Pharmaceuticals
-
3
.58
%
AdaptHealth
Corp
(d)
50,529
1,898
Collegium
Pharmaceutical
Inc
(d)
30,500
611
DexCom
Inc
(d)
2,300
850
Horizon
Therapeutics
Plc
(d)
29,600
2,165
PMV
Pharmaceuticals
Inc
(d),(e)
12,166
748
Revance
Therapeutics
Inc
(d)
36,900
1,046
$
7,318
REITs
-
5
.41
%
Agree
Realty
Corp
31,000
2,064
Cousins
Properties
Inc
59,201
1,983
First
Industrial
Realty
Trust
Inc
50,700
2,136
Ladder
Capital
Corp
94,600
925
Pebblebrook
Hotel
Trust
104,820
1,971
Rexford
Industrial
Realty
Inc
40,000
1,964
$
11,043
Retail
-
5
.13
%
Bed
Bath
&
Beyond
Inc
(e)
65,800
1,168
BJ's
Wholesale
Club
Holdings
Inc
(d)
51,700
1,927
Bloomin'
Brands
Inc
28,000
544
Brinker
International
Inc
18,300
1,035
Caleres
Inc
106,600
1,668
Ruth's
Hospitality
Group
Inc
41,060
728
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Retail
(continued)
Sally
Beauty
Holdings
Inc
(d)
79,200
$
1,033
Vroom
Inc
(d)
40,900
1,676
World
Fuel
Services
Corp
22,200
692
$
10,471
Savings
&
Loans
-
1
.56
%
Meridian
Bancorp
Inc
17,200
257
Provident
Financial
Services
Inc
54,200
973
Sterling
Bancorp/DE
109,400
1,967
$
3,197
Semiconductors
-
3
.06
%
Allegro
MicroSystems
Inc
(d)
59,100
1,576
Entegris
Inc
21,700
2,085
SiTime
Corp
(d)
23,100
2,586
$
6,247
Software
-
6
.55
%
Aspen
Technology
Inc
(d)
14,400
1,876
Bentley
Systems
Inc
(e)
16,220
657
BigCommerce
Holdings
Inc
(d),(e)
6,000
385
Cloudflare
Inc
(d)
25,300
1,923
Concentrix
Corp
(d)
15,500
1,530
Duck
Creek
Technologies
Inc
(d),(e)
6,100
264
Jamf
Holding
Corp
(d)
24,500
733
Manhattan
Associates
Inc
(d)
19,700
2,072
SolarWinds
Corp
(d)
93,200
1,393
Sprout
Social
Inc
(d)
47,300
2,148
Sumo
Logic
Inc
(d),(e)
5,300
151
Vertex
Inc
(d)
7,400
258
$
13,390
Telecommunications
-
0
.17
%
Switch
Inc
20,900
342
Transportation
-
1
.47
%
Atlas
Air
Worldwide
Holdings
Inc
(d)
19,337
1,055
Bristow
Group
Inc
(d)
23,100
608
Hub
Group
Inc
(d)
23,600
1,345
$
3,008
TOTAL
COMMON
STOCKS
$
204,108
Total
Investments
$
209,780
Other
Assets
and
Liabilities
- (2.70)%
(
5,518
)
TOTAL
NET
ASSETS
-
100.00%
$
204,262
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$4,495
or
2.20%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940)
or
an
affiliate
as
defined
by
the
Investment
Company
Act
of
1940
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Portfolio
Summary (unaudited)
Sector
Percent
Consumer,
Non-cyclical
27
.23
%
Financial
19
.17
%
Industrial
16
.03
%
Consumer,
Cyclical
13
.91
%
Technology
12
.61
%
Basic
Materials
3
.23
%
Money
Market
Funds
2
.78
%
Communications
2
.37
%
Diversified
2
.07
%
Energy
1
.65
%
Utilities
1
.65
%
Other
Assets
and
Liabilities
(
2
.70
)
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SmallCap
Account
December
31,
2020
See
accompanying
notes.
227
Affiliated
Securities
December
31,
2019
Purchases
Sales
December
31,
2020
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
10,018
$
134,651
$
143,492
$
1,177
$
10,018
$
134,651
$
143,492
$
1,177
Income
(a)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
9
$
—
$
—
$
—
$
9
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Glossary
to
the
Schedule
of
Investments
December
31,
2020
See
accompanying
notes.
228
Currency
Abbreviations
USD/$
United
States
Dollar
See
accompanying
notes.
230
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
BLUE
CHIP
ACCOUNT
Class
3
shares
2020(c)
$
10.00
$
–
$
0.34
$
0.34
$
–
$
–
$
–
$
10.34
BOND
MARKET
INDEX
ACCOUNT
Class
1
shares
2020
10.72
0.23
0.55
0.78
(
0.29)
–
(
0.29)
11.21
2019
10.15
0.28
0.58
0.86
(
0.29)
–
(
0.29)
10.72
2018
10.39
0.26
(
0.28)
(
0.02)
(
0.22)
–
(
0.22)
10.15
2017
10.25
0.22
0.11
0.33
(
0.19)
–
(
0.19)
10.39
2016
10.20
0.19
0.05
0.24
(
0.19)
–
(
0.19)
10.25
CORE
PLUS
BOND
ACCOUNT
Class
1
shares
2020
11.50
0.23
0.86
1.09
(
0.44)
–
(
0.44)
12.15
2019
10.81
0.34
0.72
1.06
(
0.37)
–
(
0.37)
11.50
2018
11.35
0.36
(
0.52)
(
0.16)
(
0.38)
–
(
0.38)
10.81
2017
11.15
0.35
0.18
0.53
(
0.33)
–
(
0.33)
11.35
2016
11.05
0.32
0.14
0.46
(
0.36)
–
(
0.36)
11.15
DIVERSIFIED
BALANCED
ACCOUNT
Class
1
shares
2020
16.52
0.36
1.70
2.06
(
0.40)
(
0.60)
(
1.00)
17.58
2019
14.87
0.36
2.34
2.70
(
0.35)
(
0.70)
(
1.05)
16.52
2018
15.98
0.31
(
0.78)
(
0.47)
(
0.43)
(
0.21)
(
0.64)
14.87
2017(g)
15.36
0.45
0.65
1.10
(
0.26)
(
0.22)
(
0.48)
15.98
Class
2
shares
2020
16.55
0.32
1.70
2.02
(
0.36)
(
0.60)
(
0.96)
17.61
2019
14.88
0.32
2.36
2.68
(
0.31)
(
0.70)
(
1.01)
16.55
2018
15.99
0.27
(
0.78)
(
0.51)
(
0.39)
(
0.21)
(
0.60)
14.88
2017
14.76
0.35
1.32
1.67
(
0.22)
(
0.22)
(
0.44)
15.99
2016
14.11
0.22
0.75
0.97
(
0.18)
(
0.14)
(
0.32)
14.76
Class
3
shares
2020(c)
17.32
0.05
0.21
0.26
–
–
–
17.58
See
accompanying
notes.
231
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Gross
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
3.40
%
(d)
$
5,170
1.05
%
(e),(f)
–
%
(0.6
6
)
%
(e)
54.6
%
(e)
7.29
2,735,259
0.14
–
2.04
104.0
8.47
2,539,460
0.15
(f)
–
2.60
93.6
(0.19)
2,213,355
0.15
(f)
–
2.52
123.1
3.27
2,448,068
0.23
(f)
–
2.10
108.9
2.29
2,184,608
0.25
–
1.86
118.5
9.55
255,956
0.47
–
1.92
210.3
9.81
252,874
0.47
–
2.99
152.4
(1.41)
280,760
0.47
–
3.27
127.5
4.81
293,662
0.46
–
3.08
123.5
4.09
292,436
0.46
–
2.79
155.1
12.96
40,515
0.05
–
2.18
23.6
18.43
40,694
0.05
–
2.25
16.9
(3.14)
36,763
0.05
–
1.95
15.7
7.27
(d)
42,702
0.05
(e)
–
4.27
(e)
13.9
(e)
12.63
979,751
0.30
–
1.95
23.6
18.23
988,264
0.30
(h)
0.30
(
i
)
1.96
16.9
(3.40)
968,449
0.30
(h)
0.30
(
i
)
1.69
15.7
11.43
1,131,373
0.30
(h)
0.30
(
i
)
2.27
13.9
6.90
1,099,647
0.30
(h)
0.30
(
i
)
1.51
14.1
1.50
(d)
10
0.4
5
(e)
–
4.
3
1
(e)
23.6
(e)
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
(c)
Period
from
December
9,
2020
date
operations
commenced,
through
December
31,
2020.
(d)
Total
return
amounts
have
not
been
annualized.
(e)
Computed
on
an
annualized
basis.
(f)
Reflects
Manager's
contractual
expense
limit.
(g)
Period
from
May
1,
2017
date
operations
commenced,
through
December
31,
2017.
(h)
Reflects
Manager's
voluntary
expense
limit.
(
i
)
Excludes
expense
reimbursement
from
Manager.
See
accompanying
notes.
232
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
DIVERSIFIED
BALANCED
MANAGED
VOLATILITY
ACCOUNT
Class
2
shares
2020
$
12.91
$
0.24
$
1.26
$
1.50
(
$
0.25)
(
$
0.51)
(
$
0.76)
$
13.65
2019
11.34
0.23
1.74
1.97
(
0.21)
(
0.19)
(
0.40)
12.91
2018
12.25
0.19
(
0.55)
(
0.36)
(
0.46)
(
0.09)
(
0.55)
11.34
2017
11.27
0.43
0.78
1.21
(
0.15)
(
0.08)
(
0.23)
12.25
2016
10.72
0.16
0.53
0.69
(
0.08)
(
0.06)
(
0.14)
11.27
Class
3
shares
2020(d)
13.46
0.04
0.15
0.19
–
–
–
13.65
DIVERSIFIED
BALANCED
VOLATILITY
CONTROL
ACCOUNT
Class
2
shares
2020
11.71
0.20
0.81
1.01
(
0.18)
(
0.14)
(
0.32)
12.40
2019
10.31
0.28
1.30
1.58
(
0.09)
(
0.09)
(
0.18)
11.71
2018
10.80
0.20
(
0.58)
(
0.38)
(
0.08)
(
0.03)
(
0.11)
10.31
2017(h)
10.00
0.27
0.53
0.80
–
–
–
10.80
Class
3
shares
2020(d)
12.22
0.04
0.14
0.18
–
–
–
12.40
DIVERSIFIED
GROWTH
ACCOUNT
Class
2
shares
2020
18.69
0.35
2.12
2.47
(
0.37)
(
0.64)
(
1.01)
20.15
2019
16.29
0.34
3.06
3.40
(
0.33)
(
0.67)
(
1.00)
18.69
2018
17.66
0.30
(
1.03)
(
0.73)
(
0.45)
(
0.19)
(
0.64)
16.29
2017
15.93
0.43
1.79
2.22
(
0.23)
(
0.26)
(
0.49)
17.66
2016
15.08
0.24
0.98
1.22
(
0.19)
(
0.18)
(
0.37)
15.93
Class
3
shares
2020(d)
19.80
0.07
0.28
0.35
–
–
–
20.15
See
accompanying
notes.
233
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Gross
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
12.03
%
$
185,139
0.31
%
(c)
–
%
1.84
%
25.0
%
17.48
176,235
0.31
(c)
–
1.90
21.3
(3.20)
162,166
0.31
(c)
–
1.59
16.2
10.90
181,005
0.31
(c)
–
3.65
13.6
6.42
168,756
0.31
(c)
–
1.48
13.6
1.41
(e)
10
0.4
6
(f)
–
4.
31
(f)
25.0
(f)
8.82
184,469
0.38
(c)
–
1.73
83.5
15.47
145,371
0.38
(c)
–
2.47
33.1
(3.71)
(g)
66,983
0
.38
(c)
–
1.90
99.6
8.10
(e),(g)
36,522
0.39
(c),(f)
–
3.36
(f)
8.0
(f)
1.47
(e)
10
0.
53
(f)
–
5.
62
(f)
83.5
(f)
13.76
3,853,082
0.30
–
1.89
23.0
21.20
3,772,145
0.30
(i)
0.30
(j)
1.89
16.0
(4.51)
(g)
3,488,312
0.30
(i)
0.30
(j)
1.69
15.5
14.21
(g)
3,945,713
0.30
(i)
0.30
(j)
2.52
10.9
8.14
3,588,901
0.30
(i)
0.30
(j)
1.53
11.1
1.77
(e)
10
0.4
5
(f)
–
5.
91
(f)
23.0
(f)
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
(c)
Reflects
Manager's
contractual
expense
limit.
(d)
Period
from
December
9,
2020
date
operations
commenced,
through
December
31,
2020.
(e)
Total
return
amounts
have
not
been
annualized.
(f)
Computed
on
an
annualized
basis.
(g)
Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which
a
shareholder
would
have
paid
or
received
from
a
subscription
or
redemption.
(h)
Period
from
March
30,
2017
date
operations
commenced,
through
December
31,
2017.
(i)
Reflects
Manager's
voluntary
expense
limit.
(j)
Excludes
expense
reimbursement
from
Manager.
See
accompanying
notes.
234
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
DIVERSIFIED
GROWTH
MANAGED
VOLATILITY
ACCOUNT
Class
2
shares
2020
$
13.53
$
0.23
$
1
.46
$
1.69
(
$
0.25)
(
$
0.64)
(
$
0.89)
$
14.33
2019
11.61
0.23
2.09
2.32
(
0.20)
(
0.20)
(
0.40)
13.53
2018
12.72
0.19
(
0.66)
(
0.47)
(
0.54)
(
0.10)
(
0.64)
11.61
2017
11.46
0.52
0.99
1.51
(
0.15)
(
0.10)
(
0.25)
12.72
2016
10.79
0.16
0.66
0.82
(
0.07)
(
0.08)
(
0.15)
11.46
Class
3
shares
2020(d)
14.09
0.05
0.19
0.24
–
–
–
14.33
DIVERSIFIED
GROWTH
VOLATILITY
CONTROL
ACCOUNT
Class
2
shares
2020
12.00
0.19
0.86
1.05
(
0.18)
(
0.19)
(
0.37)
12.68
2019
10.37
0.26
1.55
1.81
(
0.10)
(
0.08)
(
0.18)
12.00
2018
10.97
0.21
(
0.71)
(
0.50)
(
0.07)
(
0.03)
(
0.10)
10.37
2017(g)
10.00
0.30
0.67
0.97
–
–
–
10.97
Class
3
shares
2020(d)
12.47
0.05
0.16
0.21
–
–
–
12.68
DIVERSIFIED
INCOME
ACCOUNT
Class
2
shares
2020
13.82
0.30
1.23
1.53
(
0.28)
(
0.25)
(
0.53)
14.82
2019
12.46
0.29
1.58
1.87
(
0.22)
(
0.29)
(
0.51)
13.82
2018
13.12
0.22
(
0.51)
(
0.29)
(
0.28)
(
0.09)
(
0.37)
12.46
2017
12.34
0.26
0.82
1.08
(
0.18)
(
0.12)
(
0.30)
13.12
2016
11.87
0.19
0.47
0.66
(
0.12)
(
0.07)
(
0.19)
12.34
Class
3
shares
2020(d)
14.65
0.02
0.15
0.17
–
–
–
14.82
See
accompanying
notes.
235
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Gross
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
13.06
%
$
378,238
0.30
%
(c)
–
%
1.74
%
22.3
%
20.18
353,687
0.31
(c)
–
1.80
18.8
(4.07)
325,228
0.30
(c)
–
1.53
16.3
13.34
355,062
0.30
(c)
–
4.30
12.5
7.56
313,672
0.30
(c)
–
1.49
11.7
1.70
(e)
10
0.4
5
(f)
–
5.
91
(f)
22.3
(f)
8.98
995,575
0.37
–
1.63
85.9
17.57
765,417
0.37
(c)
–
2.32
36.2
(4.60)
384,706
0.37
(c)
–
1.96
103.6
9.70
(e)
171,769
0.38
(c),(f)
–
3.80
(f)
0.9
(f)
1
.68
(e)
10
0.
52
(f)
–
7.20
(f)
85.9
(f)
11.27
323,525
0.30
(h)
0.30
(i)
2.10
31.2
15.16
279,888
0.31
(h)
0.31
(i)
2.16
25.6
(2.38)
241,331
0.30
(h)
0.30
(i)
1.72
22.8
8.81
268,135
0.30
(h)
0.30
(i)
2.06
21.2
5.56
254,001
0.30
(h)
0.30
(i)
1.56
19.3
1.16
(e)
10
0.
45
(f)
–
2.
69
(f)
31.2
(f)
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
(c)
Reflects
Manager's
contractual
expense
limit.
(d)
Period
from
December
9,
2020
date
operations
commenced,
through
December
31,
2020.
(e)
Total
return
amounts
have
not
been
annualized.
(f)
Computed
on
an
annualized
basis.
(g)
Period
from
March
30,
2017
date
operations
commenced,
through
December
31,
2017.
(h)
Reflects
Manager's
voluntary
expense
limit.
(i)
Excludes
expense
reimbursement
from
Manager.
See
accompanying
notes.
236
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
DIVERSIFIED
INTERNATIONAL
ACCOUNT
Class
1
shares
2020
$
15.71
$
0.18
$
2.29
$
2.47
(
$
0.41)
$
–
(
$
0.41)
$
17.77
2019
13.72
0.28
2.75
3.03
(
0.26)
(
0.78)
(
1.04)
15.71
2018
17.01
0.31
(
3.25)
(
2.94)
(
0.35)
–
(
0.35)
13.72
2017
13.42
0.21
3.67
3.88
(
0.29)
–
(
0.29)
17.01
2016
13.68
0.24
(
0.18)
0.06
(
0.32)
–
(
0.32)
13.42
EQUITY
INCOME
ACCOUNT
Class
1
shares
2020
28.19
0.55
1.08
1.63
(
0.52)
(
0.76)
(
1.28)
28.54
2019
22.86
0.56
6.00
6.56
(
0.51)
(
0.72)
(
1.23)
28.19
2018
26.08
0.64
(
1.72)
(
1.08)
(
0.52)
(
1.62)
(
2.14)
22.86
2017
23.20
0.56
4.14
4.70
(
0.58)
(
1.24)
(
1.82)
26.08
2016
21.67
0.57
2.77
3.34
(
0.64)
(
1.17)
(
1.81)
23.20
Class
2
shares
2020
27.93
0.48
1.06
1.54
(
0.45)
(
0.76)
(
1.21)
28.26
2019
22.66
0.49
5.95
6.44
(
0.45)
(
0.72)
(
1.17)
27.93
2018
25.87
0.57
(
1.70)
(
1.13)
(
0.46)
(
1.62)
(
2.08)
22.66
2017
23.03
0.49
4.11
4.60
(
0.52)
(
1.24)
(
1.76)
25.87
2016
21.52
0.51
2.75
3.26
(
0.58)
(
1.17)
(
1.75)
23.03
Class
3
shares
2020(c)
27.94
0.03
0.56
0.59
–
–
–
28.53
GOVERNMENT
&
HIGH
QUALITY
BOND
ACCOUNT
Class
1
shares
2020
9.81
0.12
0.16
0.28
(
0.26)
–
(
0.26)
9.83
2019
9.47
0.22
0.39
0.61
(
0.27)
–
(
0.27)
9.81
2018
9.76
0.23
(
0.15)
0.08
(
0.37)
–
(
0.37)
9.47
2017
9.98
0.31
(
0.12)
0.19
(
0.41)
–
(
0.41)
9.76
2016
10.16
0.33
(
0.14)
0.19
(
0.37)
–
(
0.37)
9.98
INTERNATIONAL
EMERGING
MARKETS
ACCOUNT
Class
1
shares
2020
17.13
0.12
3.10
3.22
(
0.41)
–
(
0.41)
19.94
2019
15.12
0.40
2.20
2.60
(
0.15)
(
0.44)
(
0.59)
17.13
2018
19.40
0.19
(
4.25)
(
4.06)
(
0.22)
–
(
0.22)
15.12
2017
13.94
0.15
5.53
5.68
(
0.22)
–
(
0.22)
19.40
2016
12.88
0.14
1.08
1.22
(
0.16)
–
(
0.16)
13.94
See
accompanying
notes.
237
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
16.16
%
$
291,726
0.92
%
1.19
%
47.1
%
22.69
266,768
0.93
1.86
43.7
(17.54)
233,612
0.91
1.91
59.3
29.06
292,975
0.91
1.37
42.8
0.36
243,997
0.91
1.77
56.8
6.43
755,882
0.48
2.18
21.0
29.09
741,311
0.47
2.16
17.9
(5.01)
636,177
0.49
2.47
13.2
21.08
572,629
0.50
2.26
15.9
15.72
525,829
0.50
2.54
17.1
6.15
33,951
0.73
1.93
21.0
28.78
31,874
0.72
1.91
17.9
(5.24)
25,207
0.74
2.23
13.2
20.77
27,469
0.75
2.00
15.9
15.43
24,197
0.75
2.29
17.1
2.11
(d)
10
0.88
(e)
1.88
(e)
21.0
(e)
2.87
227,996
0.51
1.22
124.6
6.45
241,332
0.51
2.26
22.5
0.91
219,612
0.51
2.43
17.4
1.88
241,839
0.51
3.09
24.3
1.80
247,620
0.51
3.25
25.8
19.23
93,839
1.21
(f)
,(g)
0.71
57.6
17.60
89,729
1.20
(f)
2.46
112.5
(21.02)
83,366
1.35
(f)
1.05
121.8
40.84
114,735
1.35
(f)
0.91
98.6
9.40
(
h
)
85,677
1.40
(f)
1.07
115.0
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
(c)
Period
from
December
9,
2020
date
operations
commenced,
through
December
31,
2020.
(d)
Total
return
amounts
have
not
been
annualized.
(e)
Computed
on
an
annualized
basis.
(f)
Reflects
Manager's
contractual
expense
limit.
(g)
Includes
.01%
of
expenses
associated
with
the
reclaim
of
foreign
taxes
paid.
The
expense
is
not
subject
to
the
Manager's
contractual
expense
limit.
(h)
During
2016,
the
Account
experienced
a
significant
one-time
gain
of
approximately
$0.07/share
as
the
result
of
a
settlement
in
a
litigation
proceeding.
If
such
gain
had
not
been
recognized,
the
total
return
amounts
expressed
herein
would
have
been
lower.
See
accompanying
notes.
238
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
LARGECAP
GROWTH
ACCOUNT
I
Class
1
shares
2020
$
37
.64
(
$
0
.06
)
$
13
.36
$
13
.30
(
$
0
.01
)
(
$
2
.47
)
(
$
2
.48
)
$
48
.46
2019
30
.10
0
.01
10
.27
10
.28
(
0
.02
)
(
2
.72
)
(
2
.74
)
37
.64
2018
31
.18
0
.03
1
.41
1
.44
(
0
.01
)
(
2
.51
)
(
2
.52
)
30
.10
2017
24
.55
0
.01
8
.13
8
.14
(
0
.01
)
(
1
.50
)
(
1
.51
)
31
.18
2016
26
.33
0
.01
0
.34
0
.35
–
(
2
.13
)
(
2
.13
)
24
.55
LARGECAP
S&P
500
INDEX
ACCOUNT
Class
1
shares
2020
20
.19
0
.31
3
.12
3
.43
(
0
.37
)
(
1
.31
)
(
1
.68
)
21
.94
2019
16
.39
0
.34
4
.66
5
.00
(
0
.37
)
(
0
.83
)
(
1
.20
)
20
.19
2018
18
.06
0
.36
(
1
.06
)
(
0
.70
)
(
0
.32
)
(
0
.65
)
(
0
.97
)
16
.39
2017
15
.44
0
.29
2
.97
3
.26
(
0
.29
)
(
0
.35
)
(
0
.64
)
18
.06
2016
14
.41
0
.29
1
.36
1
.65
(
0
.25
)
(
0
.37
)
(
0
.62
)
15
.44
Class
2
shares
2020
19
.97
0
.26
3
.07
3
.33
(
0
.34
)
(
1
.31
)
(
1
.65
)
21
.65
2019
16
.24
0
.29
4
.62
4
.91
(
0
.35
)
(
0
.83
)
(
1
.18
)
19
.97
2018
17
.95
0
.32
(
1
.07
)
(
0
.75
)
(
0
.31
)
(
0
.65
)
(
0
.96
)
16
.24
2017
15
.38
0
.25
2
.95
3
.20
(
0
.28
)
(
0
.35
)
(
0
.63
)
17
.95
2016
14
.39
0
.26
1
.35
1
.61
(
0
.25
)
(
0
.37
)
(
0
.62
)
15
.38
LARGECAP
S&P
500
MANAGED
VOLATILITY
INDEX
ACCOUNT
Class
1
shares
2020
15
.06
0
.20
2
.24
2
.44
(
0
.25
)
(
0
.35
)
(
0
.60
)
16
.90
2019
12
.74
0
.23
3
.36
3
.59
(
0
.24
)
(
1
.03
)
(
1
.27
)
15
.06
2018
13
.42
0
.23
(
0
.71
)
(
0
.48
)
(
0
.20
)
–
(
0
.20
)
12
.74
2017
12
.15
0
.18
2
.11
2
.29
(
0
.18
)
(
0
.84
)
(
1
.02
)
13
.42
2016
11
.27
0
.19
0
.96
1
.15
(
0
.12
)
(
0
.15
)
(
0
.27
)
12
.15
See
accompanying
notes.
239
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
36
.20
%
$
612,357
0
.69
%
(c)
(
0
.14
)
%
42
.2
%
34
.92
502,653
0
.71
(c)
0
.03
30
.4
3
.60
296,139
0
.74
(c)
0
.08
36
.9
33
.71
302,147
0
.75
(c)
0
.03
36
.2
1
.26
244,058
0
.76
(c)
0
.04
36
.8
18
.08
2,892,842
0
.25
1
.60
11
.1
31
.10
2,693,344
0
.25
1
.80
3
.5
(
4
.58
)
2,378,088
0
.25
1
.94
8
.7
21
.49
2,563,986
0
.25
1
.71
3
.0
11
.59
2,262,283
0
.25
1
.96
6
.4
17
.77
27,801
0
.50
1
.35
11
.1
30
.82
15,834
0
.50
1
.56
3
.5
(
4
.90
)
7,081
0
.50
1
.77
8
.7
21
.20
3,234
0
.50
1
.46
3
.0
11
.30
766
0
.50
1
.74
6
.4
16
.67
235,112
0
.46
1
.31
8
.9
28
.92
217,779
0
.47
1
.59
3
.8
(
3
.73
)
205,655
0
.46
1
.64
11
.2
19
.55
222,026
0
.46
(c)
1
.40
3
.0
10
.33
198,548
0
.46
(c)
1
.63
4
.8
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
(c)
Reflects
Manager's
contractual
expense
limit.
See
accompanying
notes.
240
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
MIDCAP
ACCOUNT
Class
1
shares
2020
$
59
.93
$
0
.08
$
9
.93
$
10
.01
(
$
0
.44
)
(
$
5
.81
)
(
$
6
.25
)
$
63
.69
2019
48
.53
0
.43
19
.93
20
.36
(
0
.17
)
(
8
.79
)
(
8
.96
)
59
.93
2018
59
.42
0
.17
(
2
.93
)
(
2
.76
)
(
0
.17
)
(
7
.96
)
(
8
.13
)
48
.53
2017
50
.96
0
.19
12
.48
12
.67
(
0
.32
)
(
3
.89
)
(
4
.21
)
59
.42
2016
55
.24
0
.33
5
.30
5
.63
(
0
.24
)
(
9
.67
)
(
9
.91
)
50
.96
Class
2
shares
2020
59
.42
(
0
.07
)
9
.84
9
.77
(
0
.30
)
(
5
.81
)
(
6
.11
)
63
.08
2019
48
.19
0
.28
19
.77
20
.05
(
0
.03
)
(
8
.79
)
(
8
.82
)
59
.42
2018
59
.05
0
.02
(
2
.89
)
(
2
.87
)
(
0
.03
)
(
7
.96
)
(
7
.99
)
48
.19
2017
50
.69
0
.05
12
.39
12
.44
(
0
.19
)
(
3
.89
)
(
4
.08
)
59
.05
2016
54
.97
0
.20
5
.27
5
.47
(
0
.08
)
(
9
.67
)
(
9
.75
)
50
.69
PRINCIPAL
CAPITAL
APPRECIATION
ACCOUNT
Class
1
shares
2020
30
.72
0
.31
5
.21
5
.52
(
0
.41
)
(
1
.53
)
(
1
.94
)
34
.30
2019
25
.86
0
.38
7
.77
8
.15
(
0
.50
)
(
2
.79
)
(
3
.29
)
30
.72
2018
28
.54
0
.44
(
1
.19
)
(
0
.75
)
(
0
.34
)
(
1
.59
)
(
1
.93
)
25
.86
2017
23
.94
0
.28
4
.66
4
.94
(
0
.34
)
–
(
0
.34
)
28
.54
2016
22
.35
0
.30
1
.73
2
.03
(
0
.26
)
(
0
.18
)
(
0
.44
)
23
.94
Class
2
shares
2020
30
.32
0
.24
5
.13
5
.37
(
0
.35
)
(
1
.53
)
(
1
.88
)
33
.81
2019
25
.58
0
.30
7
.67
7
.97
(
0
.44
)
(
2
.79
)
(
3
.23
)
30
.32
2018
28
.25
0
.37
(
1
.17
)
(
0
.80
)
(
0
.28
)
(
1
.59
)
(
1
.87
)
25
.58
2017
23
.71
0
.22
4
.60
4
.82
(
0
.28
)
–
(
0
.28
)
28
.25
2016
22
.14
0
.24
1
.72
1
.96
(
0
.21
)
(
0
.18
)
(
0
.39
)
23
.71
PRINCIPAL
LIFETIME
2010
ACCOUNT
Class
1
shares
2020
12
.75
0
.25
1
.17
1
.42
(
0
.33
)
(
0
.25
)
(
0
.58
)
13
.59
2019
12
.18
0
.32
1
.37
1
.69
(
0
.39
)
(
0
.73
)
(
1
.12
)
12
.75
2018
13
.41
0
.32
(
0
.80
)
(
0
.48
)
(
0
.41
)
(
0
.34
)
(
0
.75
)
12
.18
2017
12
.48
0
.34
1
.07
1
.41
(
0
.29
)
(
0
.19
)
(
0
.48
)
13
.41
2016
12
.18
0
.27
0
.37
0
.64
(
0
.27
)
(
0
.07
)
(
0
.34
)
12
.48
See
accompanying
notes.
241
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
18
.33
%
(c)
$
604,094
0
.54
%
0
.14
%
12
.2
%
43
.10
(c)
587,854
0
.55
0
.72
10
.5
(
6
.55
)
474,365
0
.54
0
.29
24
.6
25
.51
575,104
0
.54
0
.34
13
.4
10
.37
576,634
0
.54
0
.62
13
.6
18
.07
25,643
0
.79
(
0
.12
)
12
.2
42
.72
(c)
20,808
0
.80
0
.48
10
.5
(
6
.79
)
(c)
15,710
0
.79
0
.04
24
.6
25
.19
(c)
17,792
0
.79
0
.09
13
.4
10
.11
14,985
0
.79
0
.38
13
.6
18
.72
147,026
0
.63
1
.03
36
.5
32
.49
143,227
0
.64
1
.27
29
.5
(
3
.41
)
128,547
0
.63
1
.52
44
.9
20
.75
154,472
0
.63
1
.07
28
.5
9
.11
147,193
0
.63
1
.31
33
.7
18
.44
18,688
0
.88
0
.79
36
.5
32
.10
13,536
0
.89
1
.03
29
.5
(
3
.64
)
(c)
8,757
0
.88
1
.28
44
.9
20
.46
(c)
8,526
0
.88
0
.83
28
.5
8
.85
7,420
0
.88
1
.06
33
.7
11
.40
35,824
0
.02
1
.94
71
.6
14
.10
31,499
0
.04
2
.51
60
.8
(
3
.87
)
31,890
0
.02
2
.43
29
.0
11
.42
41,836
0
.01
2
.57
21
.7
5
.25
42,641
0
.02
2
.16
28
.9
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
(c)
Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which
a
shareholder
would
have
paid
or
received
from
a
subscription
or
redemption.
See
accompanying
notes.
242
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
PRINCIPAL
LIFETIME
2020
ACCOUNT
Class
1
shares
2020
$
13
.90
$
0
.25
$
1
.49
$
1
.74
(
$
0
.38
)
(
$
0
.27
)
(
$
0
.65
)
$
14
.99
2019
12
.60
0
.34
1
.90
2
.24
(
0
.34
)
(
0
.60
)
(
0
.94
)
13
.90
2018
14
.11
0
.33
(
1
.04
)
(
0
.71
)
(
0
.38
)
(
0
.42
)
(
0
.80
)
12
.60
2017
12
.66
0
.36
1
.52
1
.88
(
0
.27
)
(
0
.16
)
(
0
.43
)
14
.11
2016
12
.64
0
.26
0
.47
0
.73
(
0
.25
)
(
0
.46
)
(
0
.71
)
12
.66
PRINCIPAL
LIFETIME
2030
ACCOUNT
Class
1
shares
2020
13
.12
0
.23
1
.67
1
.90
(
0
.28
)
(
0
.23
)
(
0
.51
)
14
.51
2019
11
.58
0
.32
2
.18
2
.50
(
0
.27
)
(
0
.69
)
(
0
.96
)
13
.12
2018
13
.17
0
.29
(
1
.15
)
(
0
.86
)
(
0
.32
)
(
0
.41
)
(
0
.73
)
11
.58
2017
11
.45
0
.34
1
.73
2
.07
(
0
.20
)
(
0
.15
)
(
0
.35
)
13
.17
2016
11
.45
0
.22
0
.45
0
.67
(
0
.19
)
(
0
.48
)
(
0
.67
)
11
.45
PRINCIPAL
LIFETIME
2040
ACCOUNT
Class
1
shares
2020
16
.22
0
.29
2
.23
2
.52
(
0
.32
)
(
0
.33
)
(
0
.65
)
18
.09
2019
13
.94
0
.37
3
.01
3
.38
(
0
.30
)
(
0
.80
)
(
1
.10
)
16
.22
2018
15
.97
0
.34
(
1
.50
)
(
1
.16
)
(
0
.33
)
(
0
.54
)
(
0
.87
)
13
.94
2017
13
.52
0
.36
2
.41
2
.77
(
0
.20
)
(
0
.12
)
(
0
.32
)
15
.97
2016
13
.53
0
.22
0
.51
0
.73
(
0
.20
)
(
0
.54
)
(
0
.74
)
13
.52
PRINCIPAL
LIFETIME
2050
ACCOUNT
Class
1
shares
2020
15
.59
0
.27
2
.24
2
.51
(
0
.28
)
(
0
.35
)
(
0
.63
)
17
.47
2019
13
.37
0
.32
3
.12
3
.44
(
0
.29
)
(
0
.93
)
(
1
.22
)
15
.59
2018
15
.62
0
.31
(
1
.53
)
(
1
.22
)
(
0
.33
)
(
0
.70
)
(
1
.03
)
13
.37
2017
13
.06
0
.32
2
.55
2
.87
(
0
.19
)
(
0
.12
)
(
0
.31
)
15
.62
2016
13
.07
0
.21
0
.52
0
.73
(
0
.18
)
(
0
.56
)
(
0
.74
)
13
.06
See
accompanying
notes.
243
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
12
.89
%
$
194,167
0
.01
%
1
.81
%
53
.4
%
18
.12
190,475
0
.01
2
.47
52
.7
(
5
.40
)
172,173
0
.01
2
.37
28
.7
15
.00
197,935
0
.00
2
.64
23
.6
5
.76
186,646
0
.01
2
.03
17
.7
14
.89
228,291
0
.01
1
.77
52
.3
22
.01
182,172
0
.01
2
.47
35
.8
(
7
.06
)
140,617
0
.01
2
.21
28
.6
18
.26
152,469
0
.01
2
.77
31
.0
5
.87
123,825
0
.01
1
.89
22
.4
16
.11
107,137
0
.01
1
.82
38
.9
24
.74
85,405
0
.02
2
.36
28
.8
(
7
.85
)
62,741
0
.01
2
.17
14
.5
20
.68
63,759
0
.01
2
.43
28
.3
5
.45
49,980
0
.02
1
.68
30
.4
16
.68
49,779
0
.02
1
.75
32
.8
26
.39
38,881
0
.04
2
.11
24
.9
(
8
.64
)
30,354
0
.02
2
.03
22
.6
22
.14
31,610
0
.02
2
.23
36
.5
5
.58
26,674
0
.03
1
.64
33
.1
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
See
accompanying
notes.
244
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
PRINCIPAL
LIFETIME
2060
ACCOUNT
Class
1
shares
2020
$
14
.68
$
0
.25
$
2
.10
$
2
.35
(
$
0
.22
)
(
$
0
.32
)
(
$
0
.54
)
$
16
.49
2019
12
.32
0
.30
2
.99
3
.29
(
0
.20
)
(
0
.73
)
(
0
.93
)
14
.68
2018
14
.38
0
.25
(
1
.47
)
(
1
.22
)
(
0
.31
)
(
0
.53
)
(
0
.84
)
12
.32
2017
11
.88
0
.40
2
.29
2
.69
(
0
.12
)
(
0
.07
)
(
0
.19
)
14
.38
2016
11
.75
0
.18
0
.46
0
.64
(
0
.13
)
(
0
.38
)
(
0
.51
)
11
.88
PRINCIPAL
LIFETIME
STRATEGIC
INCOME
ACCOUNT
Class
1
shares
2020
11
.92
0
.25
0
.96
1
.21
(
0
.28
)
(
0
.01
)
(
0
.29
)
12
.84
2019
11
.30
0
.33
1
.06
1
.39
(
0
.29
)
(
0
.48
)
(
0
.77
)
11
.92
2018
12
.11
0
.31
(
0
.66
)
(
0
.35
)
(
0
.33
)
(
0
.13
)
(
0
.46
)
11
.30
2017
11
.40
0
.30
0
.69
0
.99
(
0
.28
)
–
(
0
.28
)
12
.11
2016
11
.15
0
.26
0
.27
0
.53
(
0
.28
)
–
(
0
.28
)
11
.40
REAL
ESTATE
SECURITIES
ACCOUNT
Class
1
shares
2020
21
.50
0
.36
(
1
.21
)
(
0
.85
)
(
0
.39
)
(
1
.15
)
(
1
.54
)
19
.11
2019
17
.86
0
.34
5
.18
5
.52
(
0
.40
)
(
1
.48
)
(
1
.88
)
21
.50
2018
20
.62
0
.37
(
1
.09
)
(
0
.72
)
(
0
.37
)
(
1
.67
)
(
2
.04
)
17
.86
2017
21
.30
0
.25
1
.62
1
.87
(
0
.39
)
(
2
.16
)
(
2
.55
)
20
.62
2016
22
.20
0
.31
1
.09
1
.40
(
0
.32
)
(
1
.98
)
(
2
.30
)
21
.30
Class
2
shares
2020
21
.56
0
.34
(
1
.24
)
(
0
.90
)
(
0
.35
)
(
1
.15
)
(
1
.50
)
19
.16
2019
17
.92
0
.30
5
.18
5
.48
(
0
.36
)
(
1
.48
)
(
1
.84
)
21
.56
2018
20
.70
0
.34
(
1
.12
)
(
0
.78
)
(
0
.33
)
(
1
.67
)
(
2
.00
)
17
.92
2017
21
.36
0
.19
1
.64
1
.83
(
0
.33
)
(
2
.16
)
(
2
.49
)
20
.70
2016
22
.29
0
.28
1
.06
1
.34
(
0
.29
)
(
1
.98
)
(
2
.27
)
21
.36
See
accompanying
notes.
245
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
16
.58
%
$
11,468
0
.07
%
(c)
1
.73
%
58
.8
%
27
.24
8,131
0
.10
(c)
2
.15
38
.6
(
9
.25
)
4,649
0
.10
(c)
1
.71
84
.9
22
.74
5,712
0
.10
(c)
2
.98
33
.1
5
.52
2,644
0
.10
(c)
1
.55
43
.1
10
.30
31,025
0
.03
2
.07
68
.6
12
.46
26,279
0
.06
2
.79
69
.0
(
3
.00
)
20,664
0
.03
2
.61
31
.2
8
.76
24,630
0
.02
2
.56
20
.0
4
.77
24,741
0
.03
2
.29
28
.5
(
3
.42
)
129,617
0
.83
1
.89
35
.4
31
.26
155,569
0
.88
(c)
1
.62
19
.3
(
4
.21
)
133,429
0
.89
1
.89
17
.3
9
.19
154,615
0
.89
1
.19
19
.6
5
.85
158,760
0
.89
1
.38
31
.3
(
3
.65
)
6,965
1
.08
1
.80
35
.4
30
.94
6,361
1
.13
(c)
1
.43
19
.3
(
4
.47
)
3,493
1
.14
1
.73
17
.3
8
.94
2,830
1
.14
0
.89
19
.6
5
.53
4,215
1
.14
1
.26
31
.3
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
(c)
Reflects
Manager's
contractual
expense
limit.
See
accompanying
notes.
246
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
BALANCED
PORTFOLIO
Class
1
shares
2020
$
15
.67
$
0
.26
$
1
.43
$
1
.69
(
$
0
.35
)
(
$
0
.50
)
(
$
0
.85
)
$
16
.51
2019
13
.90
0
.31
2
.43
2
.74
(
0
.40
)
(
0
.57
)
(
0
.97
)
15
.67
2018
15
.89
0
.36
(
1
.07
)
(
0
.71
)
(
0
.50
)
(
0
.78
)
(
1
.28
)
13
.90
2017
14
.44
0
.45
1
.71
2
.16
(
0
.34
)
(
0
.37
)
(
0
.71
)
15
.89
2016
14
.69
0
.30
0
.70
1
.00
(
0
.32
)
(
0
.93
)
(
1
.25
)
14
.44
Class
2
shares
2020
15
.48
0
.23
1
.39
1
.62
(
0
.31
)
(
0
.50
)
(
0
.81
)
16
.29
2019
13
.74
0
.28
2
.39
2
.67
(
0
.36
)
(
0
.57
)
(
0
.93
)
15
.48
2018
15
.72
0
.32
(
1
.06
)
(
0
.74
)
(
0
.46
)
(
0
.78
)
(
1
.24
)
13
.74
2017
14
.30
0
.42
1
.67
2
.09
(
0
.30
)
(
0
.37
)
(
0
.67
)
15
.72
2016
14
.55
0
.27
0
.69
0
.96
(
0
.28
)
(
0
.93
)
(
1
.21
)
14
.30
SAM
CONSERVATIVE
BALANCED
PORTFOLIO
Class
1
shares
2020
12
.19
0
.24
0
.89
1
.13
(
0
.29
)
(
0
.23
)
(
0
.52
)
12
.80
2019
11
.05
0
.28
1
.45
1
.73
(
0
.35
)
(
0
.24
)
(
0
.59
)
12
.19
2018
12
.33
0
.34
(
0
.73
)
(
0
.39
)
(
0
.42
)
(
0
.47
)
(
0
.89
)
11
.05
2017
11
.50
0
.38
0
.92
1
.30
(
0
.34
)
(
0
.13
)
(
0
.47
)
12
.33
2016
11
.52
0
.31
0
.42
0
.73
(
0
.30
)
(
0
.45
)
(
0
.75
)
11
.50
Class
2
shares
2020
12
.03
0
.22
0
.86
1
.08
(
0
.27
)
(
0
.23
)
(
0
.50
)
12
.61
2019
10
.91
0
.25
1
.43
1
.68
(
0
.32
)
(
0
.24
)
(
0
.56
)
12
.03
2018
12
.19
0
.31
(
0
.73
)
(
0
.42
)
(
0
.39
)
(
0
.47
)
(
0
.86
)
10
.91
2017
11
.38
0
.36
0
.89
1
.25
(
0
.31
)
(
0
.13
)
(
0
.44
)
12
.19
2016
11
.41
0
.27
0
.42
0
.69
(
0
.27
)
(
0
.45
)
(
0
.72
)
11
.38
SAM
CONSERVATIVE
GROWTH
PORTFOLIO
Class
1
shares
2020
19
.94
0
.28
2
.22
2
.50
(
0
.37
)
(
0
.32
)
(
0
.69
)
21
.75
2019
17
.16
0
.36
3
.68
4
.04
(
0
.36
)
(
0
.90
)
(
1
.26
)
19
.94
2018
19
.86
0
.35
(
1
.51
)
(
1
.16
)
(
0
.56
)
(
0
.98
)
(
1
.54
)
17
.16
2017
17
.22
0
.54
2
.82
3
.36
(
0
.30
)
(
0
.42
)
(
0
.72
)
19
.86
2016
17
.22
0
.30
0
.90
1
.20
(
0
.26
)
(
0
.94
)
(
1
.20
)
17
.22
Class
2
shares
2020
19
.63
0
.24
2
.17
2
.41
(
0
.32
)
(
0
.32
)
(
0
.64
)
21
.40
2019
16
.92
0
.32
3
.61
3
.93
(
0
.32
)
(
0
.90
)
(
1
.22
)
19
.63
2018
19
.60
0
.31
(
1
.50
)
(
1
.19
)
(
0
.51
)
(
0
.98
)
(
1
.49
)
16
.92
2017
17
.01
0
.49
2
.78
3
.27
(
0
.26
)
(
0
.42
)
(
0
.68
)
19
.60
2016
17
.02
0
.25
0
.89
1
.14
(
0
.21
)
(
0
.94
)
(
1
.15
)
17
.01
See
accompanying
notes.
247
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
11
.28
%
$
568,806
0
.23
%
1
.74
%
18
.9
%
20
.01
574,960
0
.24
(c)
2
.06
23
.0
(
5
.04
)
561,162
0
.23
(c)
2
.29
18
.2
15
.21
678,409
0
.23
2
.92
27
.4
6
.82
672,562
0
.23
2
.07
16
.5
10
.96
134,181
0
.48
1
.56
18
.9
19
.74
123,870
0
.49
(c)
1
.89
23
.0
(
5
.25
)
104,051
0
.48
(c)
2
.10
18
.2
14
.88
110,129
0
.48
2
.77
27
.4
6
.62
97,047
0
.48
1
.88
16
.5
9
.60
164,411
0
.24
2
.03
23
.4
15
.88
164,095
0
.24
(c)
2
.32
30
.8
(
3
.49
)
154,297
0
.22
(c)
2
.79
19
.5
11
.46
178,523
0
.23
3
.16
26
.3
6
.37
183,830
0
.23
2
.64
19
.8
9
.25
30,178
0
.49
1
.85
23
.4
15
.66
25,380
0
.49
(c)
2
.15
30
.8
(
3
.75
)
20,449
0
.47
(c)
2
.59
19
.5
11
.14
20,541
0
.48
3
.06
26
.3
6
.08
17,477
0
.48
2
.39
19
.8
12
.95
226,009
0
.23
1
.46
20
.7
24
.06
213,346
0
.24
(c)
1
.89
16
.2
(
6
.62
)
189,654
0
.23
(c)
1
.81
27
.0
19
.78
220,054
0
.23
2
.88
35
.1
7
.00
194,284
0
.23
1
.73
25
.5
12
.68
158,606
0
.48
1
.28
20
.7
23
.68
143,501
0
.49
(c)
1
.68
16
.2
(
6
.82
)
118,307
0
.48
(c)
1
.60
27
.0
19
.46
127,079
0
.48
2
.68
35
.1
6
.76
108,247
0
.48
1
.49
25
.5
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
(c)
Reflects
Manager's
contractual
expense
limit.
See
accompanying
notes.
248
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
FLEXIBLE
INCOME
PORTFOLIO
Class
1
shares
2020
$
12
.58
$
0
.31
$
0
.57
$
0
.88
(
$
0
.36
)
(
$
0
.29
)
(
$
0
.65
)
$
12
.81
2019
11
.86
0
.33
1
.22
1
.55
(
0
.46
)
(
0
.37
)
(
0
.83
)
12
.58
2018
12
.95
0
.40
(
0
.63
)
(
0
.23
)
(
0
.53
)
(
0
.33
)
(
0
.86
)
11
.86
2017
12
.45
0
.47
0
.56
1
.03
(
0
.44
)
(
0
.09
)
(
0
.53
)
12
.95
2016
12
.27
0
.42
0
.44
0
.86
(
0
.43
)
(
0
.25
)
(
0
.68
)
12
.45
Class
2
shares
2020
12
.44
0
.28
0
.56
0
.84
(
0
.33
)
(
0
.29
)
(
0
.62
)
12
.66
2019
11
.74
0
.31
1
.19
1
.50
(
0
.43
)
(
0
.37
)
(
0
.80
)
12
.44
2018
12
.83
0
.38
(
0
.63
)
(
0
.25
)
(
0
.51
)
(
0
.33
)
(
0
.84
)
11
.74
2017
12
.34
0
.45
0
.54
0
.99
(
0
.41
)
(
0
.09
)
(
0
.50
)
12
.83
2016
12
.17
0
.38
0
.44
0
.82
(
0
.40
)
(
0
.25
)
(
0
.65
)
12
.34
SAM
STRATEGIC
GROWTH
PORTFOLIO
Class
1
shares
2020
21
.85
0
.26
2
.96
3
.22
(
0
.38
)
(
0
.52
)
(
0
.90
)
24
.17
2019
18
.36
0
.39
4
.54
4
.93
(
0
.33
)
(
1
.11
)
(
1
.44
)
21
.85
2018
21
.72
0
.33
(
2
.01
)
(
1
.68
)
(
0
.52
)
(
1
.16
)
(
1
.68
)
18
.36
2017
18
.54
0
.51
3
.54
4
.05
(
0
.30
)
(
0
.57
)
(
0
.87
)
21
.72
2016
18
.70
0
.30
0
.85
1
.15
(
0
.28
)
(
1
.03
)
(
1
.31
)
18
.54
Class
2
shares
2020
21
.53
0
.22
2
.91
3
.13
(
0
.34
)
(
0
.52
)
(
0
.86
)
23
.80
2019
18
.11
0
.34
4
.47
4
.81
(
0
.28
)
(
1
.11
)
(
1
.39
)
21
.53
2018
21
.46
0
.28
(
2
.00
)
(
1
.72
)
(
0
.47
)
(
1
.16
)
(
1
.63
)
18
.11
2017
18
.33
0
.47
3
.48
3
.95
(
0
.25
)
(
0
.57
)
(
0
.82
)
21
.46
2016
18
.50
0
.26
0
.83
1
.09
(
0
.23
)
(
1
.03
)
(
1
.26
)
18
.33
SHORT-TERM
INCOME
ACCOUNT
Class
1
shares
2020
2
.57
0
.04
0
.05
0
.09
(
0
.06
)
–
(
0
.06
)
2
.60
2019
2
.52
0
.06
0
.06
0
.12
(
0
.07
)
–
(
0
.07
)
2
.57
2018
2
.55
0
.06
(
0
.03
)
0
.03
(
0
.06
)
–
(
0
.06
)
2
.52
2017
2
.54
0
.05
0
.01
0
.06
(
0
.05
)
–
(
0
.05
)
2
.55
2016
2
.54
0
.05
–
0
.05
(
0
.05
)
–
(
0
.05
)
2
.54
SMALLCAP
ACCOUNT
Class
1
shares
2020
15
.33
0
.03
3
.03
3
.06
(
0
.07
)
(
1
.06
)
(
1
.13
)
17
.26
2019
14
.30
0
.08
3
.67
3
.75
(
0
.06
)
(
2
.66
)
(
2
.72
)
15
.33
2018
17
.10
0
.03
(
1
.62
)
(
1
.59
)
(
0
.06
)
(
1
.15
)
(
1
.21
)
14
.30
2017
15
.21
0
.06
1
.89
1
.95
(
0
.06
)
–
(
0
.06
)
17
.10
2016
13
.55
0
.15
2
.15
2
.30
(
0
.04
)
(
0
.60
)
(
0
.64
)
15
.21
Class
2
shares
2020
15
.26
–
3
.01
3
.01
(
0
.04
)
(
1
.06
)
(
1
.10
)
17
.17
2019
14
.24
0
.04
3
.66
3
.70
(
0
.02
)
(
2
.66
)
(
2
.68
)
15
.26
2018
17
.04
(
0
.01
)
(
1
.62
)
(
1
.63
)
(
0
.02
)
(
1
.15
)
(
1
.17
)
14
.24
2017
15
.17
0
.02
1
.87
1
.89
(
0
.02
)
–
(
0
.02
)
17
.04
2016
13
.52
0
.11
2
.15
2
.26
(
0
.01
)
(
0
.60
)
(
0
.61
)
15
.17
See
accompanying
notes.
249
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
7
.27
%
$
149,396
0
.24
%
2
.51
%
38
.6
%
13
.25
157,922
0
.24
2
.65
37
.4
(
1
.97
)
157,019
0
.23
3
.19
19
.9
8
.41
194,742
0
.23
3
.69
29
.3
7
.04
196,393
0
.23
3
.32
17
.1
7
.03
34,866
0
.49
2
.31
38
.6
12
.97
30,663
0
.49
2
.46
37
.4
(
2
.20
)
25,656
0
.48
3
.07
19
.9
8
.13
23,003
0
.48
3
.57
29
.3
6
.73
20,085
0
.48
3
.06
17
.1
15
.40
187,904
0
.23
1
.24
22
.3
27
.44
169,489
0
.24
(c)
1
.89
20
.3
(
8
.60
)
140,247
0
.23
(c)
1
.56
37
.8
22
.22
163,861
0
.23
2
.50
37
.7
6
.15
145,083
0
.23
1
.61
23
.4
15
.13
167,706
0
.48
1
.09
22
.3
27
.13
145,924
0
.49
(c)
1
.67
20
.3
(
8
.87
)
114,902
0
.48
(c)
1
.34
37
.8
21
.95
126,632
0
.48
2
.33
37
.7
5
.90
103,870
0
.48
1
.41
23
.4
3
.36
157,019
0
.51
(c)
1
.61
73
.7
4
.70
130,852
0
.51
(c)
2
.31
54
.2
1
.02
149,075
0
.50
(c)
2
.19
49
.9
2
.39
158,446
0
.50
(c)
2
.01
67
.3
2
.14
170,538
0
.50
(c)
1
.91
48
.6
22
.20
195,848
0
.84
0
.24
38
.8
27
.40
184,434
0
.84
0
.53
34
.7
(
10
.89
)
163,243
0
.83
0
.20
45
.0
12
.87
208,669
0
.83
0
.37
64
.1
17
.39
209,911
0
.83
1
.08
57
.1
21
.87
8,414
1
.09
(
0
.01
)
38
.8
27
.12
6,829
1
.09
0
.28
34
.7
(
11
.17
)
(d)
4,874
1
.08
(
0
.05
)
45
.0
12
.57
(d)
5,371
1
.08
0
.12
64
.1
17
.15
4,938
1
.08
0
.80
57
.1
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
(c)
Reflects
Manager's
contractual
expense
limit.
(d)
Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which
a
shareholder
would
have
paid
or
received
from
a
subscription
or
redemption.
Report
of
Independent
Registered
Public
Accounting
Firm
250
To
the
Shareholders
and
the
Board
of
Directors
of
Principal
Variable
Contracts
Funds,
Inc.
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities
of
Principal
Variable
Contracts
Funds,
Inc.
(the
“Fund”)
(comprising
Blue
Chip
Account,
Bond
Market
Index
Account,
Core
Plus
Bond
Account,
Diversified
Balanced
Account,
Diversified
Balanced
Managed
Volatility
Account,
Diversified
Balanced
Volatility
Control
Account,
Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Growth
Volatility
Control
Account,
Diversified
Income
Account,
Diversified
International
Account,
Equity
Income
Account,
Government
&
High
Quality
Bond
Account,
International
Emerging
Markets
Account,
LargeCap
Growth
Account
I,
LargeCap
S&P
500
Index
Account,
LargeCap
S&P
500
Managed
Volatility
Index
Account,
MidCap
Account,
Principal
Capital
Appreciation
Account,
Principal
LifeTime
2010
Account,
Principal
LifeTime
2020
Account,
Principal
LifeTime
2030
Account,
Principal
LifeTime
2040
Account,
Principal
LifeTime
2050
Account,
Principal
LifeTime
2060
Account,
Principal
LifeTime
Strategic
Income
Account,
Real
Estate
Securities
Account,
SAM
Balanced
Portfolio,
SAM
Conservative
Balanced
Portfolio,
SAM
Conservative
Growth
Portfolio,
SAM
Flexible
Income
Portfolio,
SAM
Strategic
Growth
Portfolio,
Short-Term
Income
Account,
and
SmallCap
Account
(collectively
referred
to
as
the
“Accounts”),
including
the
schedules
of
investments,
as
of
December
31,
2020,
and
the
related
statements
of
operations
and
changes
in
net
assets,
and
the
financial
highlights
for
each
of
the
periods
indicated
in
the
table
below
and
the
related
notes
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Accounts
comprising
the
Fund
at
December
31,
2020,
the
results
of
their
operations,
changes
in
net
assets
and
financial
highlights
for
each
of
the
periods
indicated
in
the
table
below,
in
conformity
with
U.S.
generally
accepted
accounting
principles.
Accounts
comprising
the
Fund
Statement
of
operations
Statements
of
changes
in
net
assets
Financial
highlights
Bond
Market
Index
Account
Core
Plus
Bond
Account
Diversified
Balanced
Account
Diversified
Balanced
Managed
Volatility
Account
Diversified
Growth
Account
Diversified
Growth
Managed
Volatility
Account
Diversified
Income
Account
Diversified
International
Account
Equity
Income
Account
Government
&
High
Quality
Bond
Account
International
Emerging
Markets
Account
LargeCap
Growth
Account
I
LargeCap
S&P
500
Index
Account
LargeCap
S&P
500
Managed
Volatility
Index
Account
MidCap
Account
Principal
Capital
Appreciation
Account
Principal
LifeTime
2010
Account
Principal
LifeTime
2020
Account
Principal
LifeTime
2030
Account
Principal
LifeTime
2040
Account
Principal
LifeTime
2050
Account
Principal
LifeTime
2060
Account
Principal
LifeTime
Strategic
Income
Account
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
SmallCap
Account
For
the
year
ended
December
31,
2020
For
each
of
the
two
years
in
the
period
ended
December
31,
2020
For
each
of
the
five
years
in
the
period
ended
December
31,
2020
Blue
Chip
Account
For
the
period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020
Diversified
Balanced
Volatility
Control
Account
Diversified
Growth
Volatility
Control
Account
For
the
year
ended
December
31,
2020
For
each
of
the
two
years
in
the
period
ended
December
31,
2020
For
each
of
the
three
years
ended
December
31,
2020
and
the
period
from
March
30,
2017,
date
operations
commenced,
through
December
31,
2017
Report
of
Independent
Registered
Public
Accounting
Firm
251
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
each
of
the
Accounts’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(“PCAOB”)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
The
Fund
is
not
required
to
have,
nor
were
we
engaged
to
perform,
an
audit
of
the
Fund’s
internal
control
over
financial
reporting.
As
part
of
our
audits
we
are
required
to
obtain
an
understanding
of
internal
control
over
financial
reporting
but
not
for
the
purpose
of
expressing
an
opinion
on
the
effectiveness
of
the
Fund’s
internal
control
over
financial
reporting.
Accordingly,
we
express
no
such
opinion.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
December
31,
2020,
by
correspondence
with
the
custodian,
transfer
agent,
agent
banks,
and
brokers
or
by
other
appropriate
auditing
procedures
where
replies
from
agent
banks
and
brokers
were
not
received.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
We
have
served
as
the
auditor
of
one
or
more
Principal
investment
companies
since
1969.
Minneapolis,
Minnesota
February
19,
2021
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
(unaudited)
252
As
a
shareholder
of
Principal
Variable
Contracts
Funds,
Inc.
you
incur
ongoing
costs,
including
management
fees;
distribution
fees;
and
other
fund
expenses.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
Principal
Variable
Contracts
Funds,
Inc.
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
In
addition
to
the
expenses
the
Accounts
bear
directly,
each
of
the
Accounts
may
indirectly
bear
its
pro
rata
share
of
the
expenses
incurred
by
the
investment
companies
in
which
the
Accounts
invest.
These
expenses
are
not
included
in
the
Account’s
annualized
expense
ratio
used
to
calculate
the
expenses
paid
in
this
example.
If
they
were,
the
expenses
paid
would
be
higher.
Expenses
shown
below
and
on
the
following
pages
do
not
account
for
fees,
expenses
and
charges
of
any
variable
insurance
contract
or
retirement
plan.
If
these
fees
had
been
reflected,
expenses
would
have
been
higher.
The
Example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
(
July
1,
2020
to
December
31,
2020
),
unless
otherwise
noted.
Actual
Expenses
The
first
line
of
the
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
line,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
line
under
the
heading
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
this
period.
Hypothetical
Example
for
Comparison
Purposes
The
second
line
of
the
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
each
account’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
account’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
Principal
Variable
Contracts
Funds,
Inc.
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
the
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only.
Therefore,
the
second
line
of
the
table
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
determine
the
relative
total
cost
of
owning
different
funds.
Beginning
Account
Value
July
1,
2020
Ending
Account
Value
December
31,
2020
Expenses
Paid
During
Period
July
1,
2020
to
December
31,
2020
(a)
Annualized
Expense
Ratio
Blue
Chip
Account
Class
3
Actual
$
1,000.00
$
1,034.00
$
0.64
(b)
1.05
%
Hypothetical
1,000.00
1,019.86
5.33
1.05
Bond
Market
Index
Account
Class
1
Actual
1,000.00
1,011.53
0.71
0.14
Hypothetical
1,000.00
1,024.43
0.71
0.14
Core
Plus
Bond
Account
Class
1
Actual
1,000.00
1,033.50
2.40
0.47
Hypothetical
1,000.00
1,022.77
2.39
0.47
Diversified
Balanced
Account
Class
1
Actual
1,000.00
1,120.08
0.27
0.05
Hypothetical
1,000.00
1,024.89
0.25
0.05
Diversified
Balanced
Account
Class
2
Actual
1,000.00
1,118.21
1.60
0.30
Hypothetical
1,000.00
1,023.63
1.53
0.30
Diversified
Balanced
Account
Class
3
Actual
1,000.00
1,015.01
0.27
(b)
0.45
Hypothetical
1,000.00
1,022.87
2.29
0.45
Diversified
Balanced
Managed
Volatility
Account
Class
2
Actual
1,000.00
1,112.58
1.65
0.31
Hypothetical
1,000.00
1,023.58
1.58
0.31
Diversified
Balanced
Managed
Volatility
Account
Class
3
Actual
1,000.00
1,014.12
0.28
(b)
0.46
Hypothetical
1,000.00
1,022.82
2.34
0.46
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
(unaudited)
253
Beginning
Account
Value
July
1,
2020
Ending
Account
Value
December
31,
2020
Expenses
Paid
During
Period
July
1,
2020
to
December
31,
2020
(a)
Annualized
Expense
Ratio
Diversified
Balanced
Volatility
Control
Account
Class
2
Actual
$
1,000.00
$
1,093.80
$
2.00
0.38
%
Hypothetical
1,000.00
1,023.23
1.93
0.38
Diversified
Balanced
Volatility
Control
Account
Class
3
Actual
1,000.00
1,014.73
0.32
(b)
0.53
Hypothetical
1,000.00
1,022.47
2.69
0.53
Diversified
Growth
Account
Class
2
Actual
1,000.00
1,151.81
1.62
0.30
Hypothetical
1,000.00
1,023.63
1.53
0.30
Diversified
Growth
Account
Class
3
Actual
1,000.00
1,017.68
0.27
(b)
0.45
Hypothetical
1,000.00
1,022.87
2.29
0.45
Diversified
Growth
Managed
Volatility
Account
Class
2
Actual
1,000.00
1,144.10
1.62
0.30
Hypothetical
1,000.00
1,023.63
1.53
0.30
Diversified
Growth
Managed
Volatility
Account
Class
3
Actual
1,000.00
1,017.03
0.27
(b)
0.45
Hypothetical
1,000.00
1,022.87
2.29
0.45
Diversified
Growth
Volatility
Control
Account
Class
2
Actual
1,000.00
1,118.67
1.97
0.37
Hypothetical
1,000.00
1,023.28
1.88
0.37
Diversified
Growth
Volatility
Control
Account
Class
3
Actual
1,000.00
1,016.84
0.32
(b)
0.52
Hypothetical
1,000.00
1,022.52
2.64
0.52
Diversified
Income
Account
Class
2
Actual
1,000.00
1,085.22
1.57
0.30
Hypothetical
1,000.00
1,023.63
1.53
0.30
Diversified
Income
Account
Class
3
Actual
1,000.00
1,011.60
0.27
(b)
0.45
Hypothetical
1,000.00
1,022.87
2.29
0.45
Diversified
International
Account
Class
1
Actual
1,000.00
1,277.96
5.21
0.91
Hypothetical
1,000.00
1,020.56
4.62
0.91
Equity
Income
Account
Class
1
Actual
1,000.00
1,247.54
2.71
0.48
Hypothetical
1,000.00
1,022.72
2.44
0.48
Equity
Income
Account
Class
2
Actual
1,000.00
1,245.67
4.12
0.73
Hypothetical
1,000.00
1,021.47
3.71
0.73
Equity
Income
Account
Class
3
Actual
1,000.00
1,021.12
0.53
(b)
0.88
Hypothetical
1,000.00
1,020.71
4.47
0.88
Government
&
High
Quality
Bond
Account
Class
1
Actual
1,000.00
1,004.10
2.57
0.51
Hypothetical
1,000.00
1,022.57
2.59
0.51
International
Emerging
Markets
Account
Class
1
Actual
1,000.00
1,319.43
7.05
1.21
Hypothetical
1,000.00
1,019.05
6.14
1.21
LargeCap
Growth
Account
I
Class
1
Actual
1,000.00
1,232.04
3.87
0.69
Hypothetical
1,000.00
1,021.67
3.51
0.69
LargeCap
S&P
500
Index
Account
Class
1
Actual
1,000.00
1,220.07
1.40
0.25
Hypothetical
1,000.00
1,023.88
1.27
0.25
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
(unaudited)
254
Beginning
Account
Value
July
1,
2020
Ending
Account
Value
December
31,
2020
Expenses
Paid
During
Period
July
1,
2020
to
December
31,
2020
(a)
Annualized
Expense
Ratio
LargeCap
S&P
500
Index
Account
Class
2
Actual
$
1,000.00
$
1,218.58
$
2.79
0.50
%
Hypothetical
1,000.00
1,022.62
2.54
0.50
LargeCap
S&P
500
Managed
Volatility
Index
Account
Class
1
Actual
1,000.00
1,201.77
2.55
0.46
Hypothetical
1,000.00
1,022.82
2.34
0.46
MidCap
Account
Class
1
Actual
1,000.00
1,244.16
3.05
0.54
Hypothetical
1,000.00
1,022.42
2.75
0.54
MidCap
Account
Class
2
Actual
1,000.00
1,242.79
4.45
0.79
Hypothetical
1,000.00
1,021.17
4.01
0.79
Principal
Capital
Appreciation
Account
Class
1
Actual
1,000.00
1,229.60
3.53
0.63
Hypothetical
1,000.00
1,021.97
3.20
0.63
Principal
Capital
Appreciation
Account
Class
2
Actual
1,000.00
1,228.11
4.93
0.88
Hypothetical
1,000.00
1,020.71
4.47
0.88
Principal
LifeTime
2010
Account
Class
1
Actual
1,000.00
1,095.92
0.11
0.02
Hypothetical
1,000.00
1,025.04
0.10
0.02
Principal
LifeTime
2020
Account
Class
1
Actual
1,000.00
1,134.
60
0.00
0.00
Hypothetical
1,000.00
1,025.14
0.00
0.00
Principal
LifeTime
2030
Account
Class
1
Actual
1,000.00
1,177.
60
0.00
0.00
Hypothetical
1,000.00
1,025.14
0.00
0.00
Principal
LifeTime
2040
Account
Class
1
Actual
1,000.00
1,210.34
0.06
0.01
Hypothetical
1,000.00
1,025.09
0.05
0.01
Principal
LifeTime
2050
Account
Class
1
Actual
1,000.00
1,230.77
0.06
0.01
Hypothetical
1,000.00
1,025.09
0.05
0.01
Principal
LifeTime
2060
Account
Class
1
Actual
1,000.00
1,241.01
0.34
0.06
Hypothetical
1,000.00
1,024.83
0.31
0.06
Principal
LifeTime
Strategic
Income
Account
Class
1
Actual
1,000.00
1,080.33
0.10
0.02
Hypothetical
1,000.00
1,025.04
0.10
0.02
Real
Estate
Securities
Account
Class
1
Actual
1,000.00
1,120.59
4.37
0.82
Hypothetical
1,000.00
1,021.01
4.17
0.82
Real
Estate
Securities
Account
Class
2
Actual
1,000.00
1,119.29
5.70
1.07
Hypothetical
1,000.00
1,019.76
5.43
1.07
SAM
Balanced
Portfolio
Class
1
Actual
1,000.00
1,160.93
1.25
0.23
Hypothetical
1,000.00
1,023.98
1.17
0.23
SAM
Balanced
Portfolio
Class
2
Actual
1,000.00
1,159.75
2.61
0.48
Hypothetical
1,000.00
1,022.72
2.44
0.48
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
(unaudited)
255
Beginning
Account
Value
July
1,
2020
Ending
Account
Value
December
31,
2020
Expenses
Paid
During
Period
July
1,
2020
to
December
31,
2020
(a)
Annualized
Expense
Ratio
SAM
Conservative
Balanced
Portfolio
Class
1
Actual
$
1,000.00
$
1,121.78
$
1.23
0.23
%
Hypothetical
1,000.00
1,023.98
1.17
0.23
SAM
Conservative
Balanced
Portfolio
Class
2
Actual
1,000.00
1,120.41
2.56
0.48
Hypothetical
1,000.00
1,022.72
2.44
0.48
SAM
Conservative
Growth
Portfolio
Class
1
Actual
1,000.00
1,201.82
1.27
0.23
Hypothetical
1,000.00
1,023.98
1.17
0.23
SAM
Conservative
Growth
Portfolio
Class
2
Actual
1,000.00
1,200.20
2.65
0.48
Hypothetical
1,000.00
1,022.72
2.44
0.48
SAM
Flexible
Income
Portfolio
Class
1
Actual
1,000.00
1,089.16
1.21
0.23
Hypothetical
1,000.00
1,023.98
1.17
0.23
SAM
Flexible
Income
Portfolio
Class
2
Actual
1,000.00
1,087.77
2.52
0.48
Hypothetical
1,000.00
1,022.72
2.44
0.48
SAM
Strategic
Growth
Portfolio
Class
1
Actual
1,000.00
1,242.13
1.30
0.23
Hypothetical
1,000.00
1,023.98
1.17
0.23
SAM
Strategic
Growth
Portfolio
Class
2
Actual
1,000.00
1,240.65
2.70
0.48
Hypothetical
1,000.00
1,022.72
2.44
0.48
Short-Term
Income
Account
Class
1
Actual
1,000.00
1,010.04
2.58
0.51
Hypothetical
1,000.00
1,022.57
2.59
0.51
SmallCap
Account
Class
1
Actual
1,000.00
1,367.38
4.94
0.83
Hypothetical
1,000.00
1,020.96
4.22
0.83
SmallCap
Account
Class
2
Actual
1,000.00
1,365.47
6.42
1.08
Hypothetical
1,000.00
1,019.71
5.48
1.08
(a)
Expenses
are
equal
to
an
Account's
annualized
expense
ratio
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/366
(to
reflect
the
one-half
year
period).
(b)
Expenses
are
equal
to
an
Account’s
annualized
expense
ratio
multiplied
by
the
average
account
value
over
the
period
(December
9,
2020
to
December
31,
2020),
multiplied
by
22/366
(to
reflect
the
period
since
inception).
Principal
Variable
Contracts
Funds,
Inc.
(unaudited)
256
Notification
of
Source
of
Distributions
Pursuant
to
Rule
19a-1
of
the
Investment
Company
Act
of
1940
As
noted
in
the
table
provided
below,
certain
of
the
Accounts
made
distributions
for
the
month
of
September
2020
for
which
a
portion
is
estimated
to
be
in
excess
of
the
Account’s
current
and
accumulated
net
income.
As
of
September
2020,
the
estimated
sources
of
these
distributions
were
as
follows:
The
ultimate
composition
of
these
distributions
may
vary
from
the
estimates
provided
above
due
to
a
variety
of
factors
including
future
income
and
expenses,
and
realized
gains
and
losses
from
the
purchase
and
sale
of
securities.
Please
note
that
this
information
is
being
provided
to
satisfy
certain
notice
requirements
under
the
Investment
Company
Act
of
1940.
Tax
reporting
information
for
shareholders
of
the
Accounts
will
not
be
available
until
the
end
of
the
Accounts’
fiscal
year.
As
a
result,
shareholders
should
not
use
the
information
provided
in
this
notice
for
tax
reporting
purposes.
September
2020
Fund
Net
Income
Realized
Gain
Capital
Sources
Diversified
International
Account
97.22%
0.00%
2.78%
LargeCap
Growth
Account
I
0.00
100.00
0.00
257
FUND
DIRECTORS
AND
OFFICERS
Under
Maryland
law,
a
Board
of
Directors
oversees
the
Fund.
The
Directors
have
financial
or
other
relevant
experience
and
meet
several
times
during
the
year
to
review
contracts,
Fund
activities
and
the
quality
of
services
provided
to
the
Fund.
Each
director
also
has
the
same
position
with
Principal
Funds,
Inc.,
Principal
Exchange-Traded
Funds,
and
Principal
Diversified
Select
Real
Asset
Fund
which
are
also
sponsored
by
Principal
Life
Insurance
Company.
Each
director
generally
holds
office
for
an
indefinite
term
until
the
director
reaches
age
72
(unless
such
mandatory
retirement
age
is
waived
by
the
Board).
Directors
considered
to
be
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940,
as
shown
below
are
considered
to
be
interested
because
of
an
affiliation
with
the
Manager
and
Principal
Life
Insurance
Company.
The
following
directors
are
considered
not
to
be
“interested
persons”
as
defined
in
the
1940
Act
Name,
Position
Held
with
the
Fund,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Director
During
Past
5
Years
Elizabeth
Ballantine
Director
since
2004
Chair,
Nominating
and
Governance
Committee
1948
Principal,
EBA
Associates
123
Durango
Herald,
Inc.;
McClatchy
Newspapers,
Inc.
Leroy
T.
Barnes,
Jr.
Director
since
2012
Member,
Audit
Committee
Member,
Nominating
and
Governance
Committee
1951
Retired.
123
McClatchy
Newspapers,
Inc.;
Frontier
Communications,
Inc.;
formerly,
Herbalife
Ltd.
Craig
Damos
Lead
Independent
Director
since
2020
Director
since
2008
Member,
Nominating
and
Governance
Committee
Member,
Executive
Committee
1954
President,
C.P.
Damos
Consulting
LLC
123
None
Fritz
S.
Hirsch
Director
since
2005
Member,
Operations
Committee
Chair,
15(c)
Committee
1951
Formerly,
CEO,
MAM
USA
123
MAM
USA
Victor
Hymes
Director
since
2020
Member,
Audit
Committee
1957
Founder
and
Managing
Member
of
Legato
Capital
Management,
LLC
123
Formerly,
Montgomery
Street
Income
Securities
Inc.
John
D.
Kenney
Director
since
2020
Member,
Operations
Committee
Member,
15(c)
Committee
1965
Formerly,
Legg
Mason
Global
Asset
Management
123
Formerly:
Legg
Mason
Investment
Management
Affiliates:
Brandywine
Global;
Clarion
Partners;
ClearBridge
Investments;
Entrust
Global;
Legg
Mason
Poland;
Martin
Currie
Investment
Management;
Permal
Group
(merged
into
Entrust);
QS
Investors;
RARE
Infrastructure;
Royce
and
Associates;
and
Western
Asset
Management
Padelford
L.
Lattimer
Director
since
2020
Member,
Operations
Committee
Member,
15(c)
Committee
1961
TBA
Management
Consulting
LLC
123
None
Karen
(“Karrie”)
McMillan
Director
since
2014
Chair,
Operations
Committee
1961
Managing
Director,
Patomak
Global
Partners,
LLC
123
None
258
The
following
directors
are
considered
to
be
“interested
persons”
as
defined
in
the
1940
Act,
because
of
an
affiliation
with
the
Manager
and
Principal
Life.
Correspondence
intended
for
each
Director
who
is
other
than
an
Interested
Director
may
be
sent
to
655
9th
Street,
Des
Moines,
IA
50392.
Name,
Position
Held
with
the
Fund,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Director
During
Past
5
Years
Elizabeth
A.
Nickels
Director
since
2015
Chair,
Audit
Committee
Member,
Nominating
and
Governance
Committee
1962
Retired.
123
SpartanNash;
formerly:
Charlotte
Russe;
Follet
Corporation;
PetSmart;
Spectrum
Health
Systems
Mary
M.
(“Meg”)
VanDeWeghe
Director
since
2018
Member,
Audit
Committee
Member,
15(c)
Committee
1959
CEO
and
President,
Forte
Consulting,
Inc.
123
Helmerich
&
Payne;
Formerly:
B/E
Aerospace;
Brown
Advisory;
Denbury
Resources
Inc.;
Nalco
(and
its
successor
Ecolab);
and
WP
Carey
Name,
Position
Held
with
the
Fund,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Director
During
Past
5
Years
Timothy
M.
Dunbar
Chair
and
Director
since
2019
Chair,
Executive
Committee
1957
Director,
PGI
since
2018
President,
Principal
Global
Asset
Management
(“PGAM”),
PGI,
Principal
Life
Insurance
Company
(“PLIC”),
and
Principal
Financial
Services,
Inc.
(“PFSI)
(2018-2021)
Executive
Vice
President,
RobustWealth,
Inc.
since
2018
Executive
Vice
President/Chief
Investment
Officer,
PLIC
and
PFSI
(2014-2018)
123
None
Patrick
Halter
Member,
Executive
Committee
Director
since
2017
1959
Chief
Executive
Officer
and
President,
PGI
since
2018
Chief
Operating
Officer,
PGI
(2017-2018)
Chair,
PGI
since
2018
Director,
PGI
(2003-2018)
President,
PGAM,
PFSI,
and
PLIC
since
2020
Director,
Origin
Asset
Management
LLP
since
2018
Chair,
Post
Advisory
Group,
LLC
(2017-2020)
Director,
Post
since
2020
Chief
Executive
Officer,
Principal
Real
Estate
Investors,
LLC
(“PREI”)
since
2005
Chair,
PREI
since
2004
Chair,
Spectrum
Asset
Management,
Inc.
since
2017
Chair,
CCIP,
LLC
since
2017
123
None
259
The
following
table
presents
officers
of
the
Funds.
Name,
Position
Held
with
the
Fund,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Kamal
Bhatia
President,
Chief
Executive
Officer
Des
Moines,
IA
50392
1972
Director,
PGI
since
2019
Director,
PFA
since
2020
Senior
Executive
Director
and
Chief
Operating
Officer,
PFSI
and
PLIC
since
2020
President,
PFSI
and
PLIC
(2019-2020)
Director,
PFD
since
2019
Director,
PREI
since
2020
Chair
and
Executive
Vice
President,
PSS
since
2019
Principal
Executive
Officer,
OC
Private
Capital
(2017-2019)
Senior
Vice
President,
OppenheimerFunds
(2011-
2019)
Randy
D.
Bolin
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1961
Vice
President/Associate
General
Counsel,
PFSI
since
2013
Vice
President/Associate
General
Counsel,
PGI
since
2016
Assistant
General
Counsel,
PGI
(2007–2016)
Vice
President/Associate
General
Counsel,
PLIC
since
2013
Tracy
W.
Bollin
Chief
Financial
Officer
Des
Moines,
IA
50392
1970
Managing
Director,
PGI
since
2016
Chief
Operating
Officer,
PMC
(2015-2017)
Chief
Financial
Officer,
PFA
(2010-2015)
Senior
Vice
President,
PFD
since
2015
Chief
Financial
Officer,
PFD
(2010-2016)
Senior
Vice
President,
PMC
(2015–2017)
Chief
Financial
Officer,
PMC
(2010-2015)
Director,
PMC
(2014–2017)
Chief
Financial
Officer,
PSI
(2010-2015)
President,
PSS
since
2015
Chief
Financial
Officer,
PSS
(2010-2015)
Gina
L.
Graham
Treasurer
Des
Moines,
IA
50392
1965
Vice
President/Treasurer,
PFA
since
2016
Vice
President/Treasurer,
PFD
since
2016
Vice
President/Treasurer,
PGI
since
2016
Vice
President/Treasurer,
PLIC
since
2016
Vice
President/Treasurer,
PMC
(2016-2017)
Vice
President/Treasurer,
PREI
since
2016
Vice
President/Treasurer,
PSI
since
2016
Vice
President/Treasurer,
PSS
since
2016
Laura
B.
Latham
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1986
Counsel,
PGI
since
2018
Prior
thereto,
Attorney
in
Private
Practice
Diane
K.
Nelson
AML
Officer
Des
Moines,
IA
50392
1965
Chief
Compliance
Officer/AML
Officer,
PSS
since
2015
Compliance
Advisor,
PMC
(2013-2015)
Sara
L.
Reece
Vice
President
and
Controller
Des
Moines,
IA
50392
1975
Director
-
Accounting,
PLIC
since
2015
Assistant
Financial
Controller,
PLIC
prior
to
2015
Teri
R.
Root
Chief
Compliance
Officer
Des
Moines,
IA
50392
1979
Chief
Compliance
Officer
–
Funds,
PGI
since
2018
Interim
Chief
Compliance
Officer
(2018)
Deputy
Chief
Compliance
Officer
(2015-2018)
Deputy
Chief
Compliance
Officer,
PGI
since
2017
Vice
President
and
Chief
Compliance
Officer,
PMC
(2015–2017)
Vice
President,
PSS
since
2015
Britney
L.
Schnathorst
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1981
Counsel,
PLIC
since
2013
260
The
15(c)
Committee’s
primary
purpose
is
to
assist
the
Board
in
performing
the
annual
review
of
the
Fund’s
advisory
and
sub-advisory
agreements
pursuant
to
Section
15(c)
of
the
1940
Act.
The
Committee
responsibilities
include
requesting
and
reviewing
materials.
The
Audit
Committee’s
primary
purpose
is
to
assist
the
Board
in
fulfilling
certain
of
its
responsibilities.
The
Audit
Committee
serves
as
an
independent
and
objective
party
to
monitor
the
Fund
Complex’s
accounting
policies,
financial
reporting
and
internal
control
system,
as
well
as
the
work
of
the
independent
registered
public
accountants.
The
Audit
Committee
assists
Board
oversight
of
1)
the
integrity
of
the
Fund
Complex’s
financial
statements;
2)
the
Fund
Complex’s
compliance
with
certain
legal
and
regulatory
requirements;
3)
the
independent
registered
public
accountants’
qualifications
and
independence;
and
4)
the
performance
of
the
Fund
Complex’s
independent
registered
public
accountants.
The
Audit
Committee
also
provides
an
open
avenue
of
communication
among
the
independent
registered
public
accountants,
the
Manager’s
internal
auditors,
Fund
Complex
management,
and
the
Board.
The
Executive
Committee’s
primary
purpose
is
to
exercise
certain
powers
of
the
Board
when
the
Board
is
not
in
session.
When
the
Board
is
not
in
session,
the
Committee
may
exercise
all
powers
of
the
Board
in
the
management
of
the
business
of
the
Fund
Complex
except
the
power
to
1)
authorize
dividends
or
distributions
on
stock;
2)
issue
stock,
except
as
permitted
by
law;
3)
recommend
to
the
stockholders
any
action
which
requires
stockholder
approval;
4)
amend
the
bylaws;
or
5)
approve
any
merger
or
share
exchange
which
does
not
require
stockholder
approval.
The
Nominating
and
Governance
Committee’s
primary
purpose
is
to
oversee
the
structure
and
efficiency
of
the
Board
and
the
committees
established
by
the
Board.
The
Committee
responsibilities
include
evaluating
Board
membership
and
functions,
committee
membership
and
functions,
insurance
coverage,
and
legal
matters.
The
nominating
functions
of
the
Committee
include
selecting
and
nominating
all
candidates
who
are
not
“interested
persons”
of
the
Fund
Complex
for
election
to
the
Board.
Generally,
the
Committee
requests
director
nominee
suggestions
from
the
committee
members
and
management.
In
addition,
the
Committee
will
consider
Director
candidates
recommended
by
shareholders
of
the
Fund
Complex.
Recommendations
should
be
submitted
in
writing
to
Principal
Funds,
Inc.
at
711
High
Street,
Des
Moines,
IA
50392.
When
evaluating
a
person
as
a
potential
nominee
to
serve
as
an
Independent
Director,
the
Committee
will
generally
consider,
among
other
factors:
age;
education;
relevant
business
experience;
geographical
factors;
whether
the
person
is
“independent”
and
Name,
Position
Held
with
the
Fund,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Adam
U.
Shaikh
Assistant
Counsel
Des
Moines,
IA
50392
1972
Assistant
General
Counsel,
PGI
since
2018
Counsel,
PGI
(2017-2018)
Counsel,
PLIC
since
2006
Counsel,
PMC
(2014-2017)
John
L.
Sullivan
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1970
Counsel,
PGI
since
2019
Prior
thereto,
Attorney
in
Private
Practice
Dan
L.
Westholm
Assistant
Treasurer
Des
Moines,
IA
50392
1966
Assistant
Vice
President/Treasurer,
PGI
since
2017
Assistant
Vice
President/Treasury,
PFA
since
2013
Assistant
Vice
President/Treasury,
PFD
since
2013
Assistant
Vice
President/Treasury,
PLIC
since
2014
Assistant
Vice
President/Treasury,
PMC
(2013-
2017)
Assistant
Vice
President/Treasury,
PSI
since
2013
Assistant
Vice
President/Treasury,
PSS
since
2013
Beth
C.
Wilson
Vice
President
and
Secretary
Des
Moines,
IA
50392
1956
Director
and
Secretary
–
Funds,
PLIC
Clint
L.
Woods
Counsel,
Vice
President,
and
Assistant
Secretary
Des
Moines,
IA
50392
1961
Of
Counsel
(2017-2018)
Vice
President
(2016-2017)
Counsel
(2015-2017)
Vice
President,
PLIC
since
2015
Associate
General
Counsel,
Governance
Officer,
and
Assistant
Corporate
Secretary,
PLIC
since
2013
Jared
Yepsen
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1981
Counsel,
PGI
since
2017
Counsel,
PLIC
since
2015
Senior
Attorney,
Transamerica
Life
Insurance
Company
(2013-2015)
261
otherwise
qualified
under
applicable
laws
and
regulations
to
serve
as
a
director;
and
whether
the
person
is
willing
to
serve,
and
willing
and
able
to
commit
the
time
necessary
for
attendance
at
meetings
and
the
performance
of
the
duties
of
an
independent
director.
The
Committee
also
meets
personally
with
the
nominees
and
conducts
a
reference
check.
The
final
decision
is
based
on
a
combination
of
factors,
including
the
strengths
and
the
experience
an
individual
may
bring
to
the
Board.
The
Committee
believes
the
Board
generally
benefits
from
diversity
of
background,
experience
and
views
among
its
members,
and
considers
these
factors
in
evaluating
the
composition
of
the
Board.
The
Board
does
not
use
regularly
the
services
of
any
professional
search
firms
to
identify
or
evaluate
or
assist
in
identifying
or
evaluating
potential
candidates
or
nominees.
The
Operations
Committee’s
primary
purpose
is
to
oversee
the
provision
of
administrative
and
distribution
services
to
the
Funds
Complex,
communications
with
the
Fund
Complex’s
shareholders,
and
review
and
oversight
of
the
Fund
Complex’s
operations.
Additional
information
about
the
Fund
is
available
in
the
Prospectus
dated
May
1,
2020
and
as
supplemented,
and
the
Statement
of
Additional
Information
dated
May
1,
2020
and
as
supplemented.
These
documents
may
be
obtained
free
of
charge
by
writing
Principal
Funds,
Inc.,
P.O.
Box
8024,
Boston,
MA
02266-8024
or
telephoning
1-800-222-5852.
The
prospectus
may
be
viewed
at
www.PrincipalFunds.
com/prospectuses-pvc.
262
PROXY
VOTING
POLICIES
A
description
of
the
policies
and
procedures
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
the
results
of
the
proxy
votes
for
the
most
recent
twelve
months
ended
June
30
may
be
obtained
free
of
charge
by
telephoning
1-800-222-5852,
or
on
the
SEC
website
at
www.sec.gov.
SCHEDULES
OF
INVESTMENTS
The
Fund
files
complete
schedules
of
investments
with
the
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to
its
reports
on
Form
N-PORT.
The
Fund’s
Form
N-PORT
reports
are available
on the
Commission’s
website
at
www.
sec.gov.
263
BOARD
CONSIDERATION
OF
INVESTMENT
ADVISORY
CONTRACTS
During
the
period
covered
by
this
report,
the
Board
of
Directors
of
Principal
Variable
Contracts
Funds,
Inc.
(“PVC”)
approved
(1)
the
renewal
of
the
Management
Agreement
and
various
subadvisory
agreements
for
all
Funds;
and
(2)
a
Management
Agreement
between
PVC
and
Principal
Global
Investors,
LLC
(“PGI”
or
the
“Manager”)
related
to
the
addition
of
the
Blue
Chip
Account.
Annual
Review
and
Renewal
of
Management
Agreement
and
Subadvisory
Agreements
At
its
September
15,
2020
meeting,
the
Board
performed
its
annual
review
and
renewal
process
relating
to
the
Management
Agreement
and
the
Subadvisory
Agreements
for
all
Funds.
Section
15(c)
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”)
requires
the
Board,
including
a
majority
of
the
Directors
who
have
no
direct
or
indirect
interest
in
the
investment
advisory
agreements
and
who
are
not
“interested
persons”
of
PVC,
as
defined
in
the
1940
Act
(the
“Independent
Directors”),
annually
to
review
and
to
consider
the
continuation
of:
(1)
the
Management
Agreement
between
the
Principal
Global
Investors,
LLC
(the
“Manager”)
and
PVC,
on
behalf
of
each
of
the
thirty-three
(33)
series
of
PVC
(each
series
is
referred
to
as
a
“Fund”);
and
(2)
the
Subadvisory
Agreements
between
the
Manager
and
each
of
Brown
Advisory,
LLC;
Principal
Real
Estate
Investors,
LLC
(“Principal-REI”);
Spectrum
Asset
Management
Inc.
(“Spectrum”)
and
T.
Rowe
Price
Associates,
Inc.
(collectively,
the
“Subadvisors”).
The
Management
Agreement
and
the
Subadvisory
Agreements
are
collectively
referred
to
as
the
“Advisory
Agreements.”
The
Board
considered
the
factors
and
reached
the
conclusions
described
below
relating
to
the
continuation
of
the
Advisory
Agreements.
In
evaluating
the
Advisory
Agreements,
the
Board,
reviewed
a
broad
range
of
information
including,
among
other
information,
information
regarding
performance,
advisory
fees,
total
expenses,
profitability
from
the
Advisory
Agreements
to
the
Manager
and
information
about
economies
of
scale.
The
Board
reviewed
the
materials
provided
and
concluded
that
it
was
provided
all
information
reasonably
necessary
to
evaluate
the
Advisory
Agreements.
Management
Agreement
With
respect
to
the
Management
Agreement
for
each
Fund,
the
Board
considered,
among
other
factors,
that
the
Manager
and
its
affiliates
have
demonstrated
a
long-term
commitment
to
support
the
Funds,
including
undertakings
to
cap
Fund
expenses
and/or
waive
management
fees
for
certain
Funds.
In
addition,
the
Board
considered
various
factors,
including
the
following,
and
made
certain
findings
and
conclusions
with
respect
thereto,
for
each
of
the
Funds.
The
Board
concluded
that
a
relationship
with
a
capable
and
conscientious
adviser
is
in
the
best
interests
of
each
Fund.
Nature,
Extent
and
Quality
of
Services
The
Board
considered
the
nature,
quality
and
extent
of
the
services
provided
under
the
Management
Agreements,
including
accounting
and
administrative
services.
The
Board
considered
the
experience
and
skills
of
senior
management
leading
Fund
operations,
the
experience
and
skills
of
the
personnel
performing
the
functions
under
the
Management
Agreements
and
the
resources
made
available
to
such
personnel,
the
ability
of
the
Manager
to
attract
and
retain
high-quality
personnel
and
the
organizational
depth
and
stability
of
the
Manager.
The
Board
concluded
that
appropriate
resources
were
provided
under
the
Management
Agreement.
The
Board
also
considered
that,
during
the
periods
reviewed,
the
Manager
had
delegated
day-to-day
portfolio
management
responsibility
for
certain
Funds
to
the
Subadvisors.
The
Board
noted
that
the
Manager’s
process
for
the
selection
of
subadvisors
emphasizes
the
selection
of
Principal-affiliated
subadvisors
that
are
determined
to
be
qualified
under
the
Manager’s
due
diligence
process,
but
that
the
Manager
will
select
an
unaffiliated
subadvisor
to
manage
all
or
a
portion
of
a
Fund’s
investment
portfolio
when
deemed
necessary
or
appropriate
based
upon
a
consideration
of
the
Fund’s
investment
mandate
and
available
expertise
and
resources
within
the
Principal
organization.
With
respect
to
Funds
with
unaffiliated
Subadvisors,
the
Board
considered
the
due
diligence
process
developed
by
the
Manager
for
purposes
of
selecting
a
qualified
unaffiliated
subadvisor
for
a
Fund.
The
Board
considered
the
Manager’s
due
diligence
process
for
monitoring
and
replacing
Subadvisors
and
for
monitoring
the
investment
performance
of
the
Manager.
The
Board
also
considered
the
compliance
program
established
by
the
Manager
for
the
Funds,
the
quality
of
that
program
and
the
level
of
compliance
attained
by
the
Funds.
The
Board
noted
that
they
had
previously
reviewed
the
annual
best
execution
and
soft
dollar
reports
and
information
regarding
the
research
payment
accounts
for
applicable
Funds
and
included
those
findings
in
their
consideration
of
the
renewal
of
the
Advisory
Agreements.
Based
upon
all
relevant
factors,
the
Board
concluded
that
the
nature,
quality
and
extent
of
the
services
provided
by
the
Manager
to
the
Funds
under
each
Management
Agreement
were
satisfactory.
Investment
Performance
The
Board
reviewed
each
Fund’s
investment
performance
over
longer-term
periods,
reviewing
both
the
investment
return
during
the
three-
year
period
ended
March
31,
2020
and
the
blended
investment
return
(50%/50%)
of
the
three-
and
five-year
periods
ended
March
31,
2020,
and
compared
those
returns
to
various
agreed-upon
performance
measures,
including
peer-group
data
based
upon
a
broad-based,
industry
category
determined
by
Morningstar
Direct
data.
For
Funds
or
Subadvisors
that
did
not
have
a
three-year
or
five-year
performance
history,
the
Board
reviewed
performance
for
a
one-year
or
three-year
period
ended
March
31,
2020,
respectively,
if
available.
The
Board
also
compared
each
Fund’s
investment
performance
over
the
one-,
three-
and
five-year
periods
ended
March
31,
2020,
as
available,
to
one
or
more
relevant
benchmark
indices.
The
Board
noted
that
certain
Funds
had
commenced
operations
recently
and,
accordingly,
no
or
limited
performance
information
was
considered.
The
Board
also
considered
whether
investment
results
were
consistent
with
a
Fund’s
investment
objective(s)
and
policies.
For
most
Funds,
the
Board
264
concluded
that
the
Fund’s
investment
returns
met
acceptable
levels
of
investment
performance.
There
were
certain
Funds,
and
certain
Subadvisors
for
multi-manager
Funds,
that
had
not
attained
during
the
relevant
period(s)
a
level
of
investment
performance
considered
satisfactory
by
the
Board.
For
such
Funds,
the
Board
also
considered
other
factors,
such
as
the
longer-term
performance
of
each
such
Fund
or
Subadvisor,
remedial
efforts
being
taken
to
improve
performance
and/or
the
Manager’s
explanation
for
the
performance
of
such
Fund
or
Subadvisor.
The
Board
considered
the
Manager’s
due
diligence
process
for
evaluating
the
performance
of
all
Funds
and
all
Subadvisors,
for
which
they
received
regular
reporting,
and
concluded
that
the
Manager
has
in
place
an
effective
due
diligence
process
to
monitor
investment
performance,
to
encourage
remedial
action
and
to
make
changes
in
the
Subadvisors
at
the
appropriate
time,
if
necessary.
Investment
Management
Fees
The
Board
considered
each
Fund’s
effective
management
fee
rate.
For
each
Fund,
the
Board
received
certain
information
from
Broadridge.
For
Funds
the
Board
received
information
comparing
each
Fund’s
(1)
effective
contractual
management
fee
rate
at
current
asset
levels
and
at
theoretical
asset
levels,
(2)
effective
net
management
fee
rate
(after
any
fee
waivers)
at
average
fiscal-year
asset
levels,
(3)
actual
non-management
expense
rate
at
average
fiscal-year
asset
levels,
and
(4)
total
net
expense
ratio
(including,
as
applicable,
acquired
fund
fees
and
expenses
and
after
any
expense
caps
or
fee
waivers)
at
average
fiscal-year
asset
levels
for
Class
1
shares
of
the
Funds,
in
each
case
as
available,
to
investment
advisory
fee
rates,
non-management
expense
rates
and
expense
ratios
of
funds
in
a
peer
group
selected
by
Broadridge
(“Expense
Group”),
and,
if
available,
a
broad-based,
industry
category
defined
by
Broadridge
(“Expense
Universe”).
For
Funds
that
did
not
offer
Class
1
shares,
the
information
provided
was
based
upon
Class
2
shares.
In
evaluating
the
effective
management
fee
rates,
the
Board
considered
a
variety
of
factors,
including
the
effective
fee
rates,
breakpoints,
comparison
to
fee
rates
of
peer
group
funds
and
other
funds
and
non-fund
accounts
managed
by
the
Manager,
subadvisory
fee
rates
paid,
services
provided,
investment
performance,
total
net
expense
ratios,
profitability,
the
existence
and
sharing
of
economies
of
scale,
fall-out
benefits
and
expense
caps
and
fee
waivers.
The
Board
considered
that
certain
PVC
funds
with
similar
investment
strategies
and
policies
have
different
management
fee
schedules
and
noted
the
reasons
cited
by
the
Manager
for
the
differing
fee
rates.
In
reviewing
the
fees
of
other
accounts
managed
by
the
Manager,
the
Board
considered
information
provided
by
the
Manager
regarding
differences
between
the
services
provided
to
the
Funds
and
the
services
provided
to
such
other
accounts.
For
most
Funds,
effective
net
management
fee
rates
were
within
the
third
quartile
or
better
when
compared
to
their
Expense
Group.
For
some
Funds,
although
effective
net
management
fee
rates
were
higher
than
the
third
quartile,
total
net
expense
ratios
were
within
the
third
quartile
or
better.
With
respect
to
the
PVC
Principal
LifeTime
Accounts,
the
Board
noted
that
the
Funds
pay
no
Fund-level
management
fees.
The
Board
also
reviewed
the
actual
non-management
expenses
of
the
Funds,
which
the
Board
concluded
were
reasonable.
The
Board
reviewed
the
total
net
expense
ratios
of
the
Funds,
including
acquired
fund
fees
and
expenses.
With
respect
to
the
Largecap
Growth
Account
I
that
uses
the
“Core
Satellite”
structure,
the
Board
also
considered
that
the
Manager
contractually
agreed
to
continue
to
waive
a
portion
of
its
management
fee.
The
Board
considered
the
services
provided
by
the
Manager
in
managing
the
enhanced
index
“Core”
sleeve
as
a
part
of
the
overall
services
covered
by
the
net
management
fee
received
by
the
Manager.
The
Board
also
considered
the
expense
caps
and
fee
waivers
that
would
be
in
place
with
respect
to
certain
Funds
and
share
classes.
The
list
of
agreed
upon
expense
caps
and
fee
waivers
is
the
result
of
the
Manager’s
proposals
to
extend
the
expense
caps
and
fee
waivers
for
certain
Funds
and
share
classes
and
to
terminate
the
expense
caps
and
fee
waivers
for
certain
Funds
and
share
classes
that
are
both
currently
operating
and
projected
to
operate
below
current
applicable
expense
caps.
With
regard
to
the
Short
Term
Income
Account
and
the
Government
&
High
Quality
Bond
Account,
the
Board
accepted
management’s
proposal
to
amend
the
Management
Agreement
for
the
Fund
to
reduce
the
effective
management
fee
rate
payable
at
all
asset
levels
and
considered
this
fee
reduction
in
concluding
that
the
Management
Agreement,
as
amended,
should
be
renewed.
With
regard
to
the
LargeCap
S&P
500
Managed
Volatility
Index
Account,
the
Board
noted
that
the
contractual
management
fee
rate,
the
effective
net
management
fee
rate
and
the
total
net
expense
ratio
on
the
basis
of
Class
1
shares
were
higher
than
third
quartile
(each
was
at
the
99th
percentile)
in
the
Expense
Group.
Considering
all
relevant
factors,
including
that
the
other
funds
in
the
Expense
Group
did
not
include
the
additional
feature
of
a
volatility
management
strategy
and
that
the
Fund’s
performance
was
in
the
second
quartile
of
its
Performance
Universe
for
the
three-year
and
blended
three-
and
five-year
periods
ended
March
31,
2020
(29th
and
31st
percentiles,
respectively),
the
Board
concluded
that
the
Management
Agreement
should
be
renewed.
Considering
all
factors
they
deemed
relevant,
the
Board
concluded
that
the
management
fee
payable
by
each
Fund
was
reasonable
in
light
of
the
nature,
quality
and
extent
of
the
services
provided
by
the
Manager
and
other
relevant
factors.
In
addition,
with
regard
to
the
Diversified
Growth
Volatility
Control
Account
and
the
Diversified
Balanced
Volatility
Control
Account,
both
of
which
is
permitted
to
invest
in
unaffiliated
exchange-traded
funds
in
excess
of
the
limits
set
forth
in
Section
12(d)(1)
of
the
Investment
Company
Act
of
1940,
as
amended,
in
accordance
with
exemptive
orders
issued
to
such
exchange-traded
funds
and
procedures
previously
adopted
by
the
Board,
the
Board
considered
information
provided
by
the
Manager
relating
to
the
non-duplicative
nature
of
the
Fund’s
management
fees
and
found
that
the
management
fees
charged
by
the
Manager
under
the
Management
Agreement
for
the
Fund
are
for
265
services
provided
in
addition
to,
and
are
not
duplicative
of,
services
provided
under
the
investment
advisory
contract(s)
of
the
exchange-
traded
funds
in
which
the
Fund
may
invest.
Profitability
The
Board
reviewed
detailed
information
regarding
revenues
the
Manager,
received
under
the
Management
Agreements
and
the
estimated
direct
and
indirect
costs
incurred
in
providing
to
each
Fund
the
services
described
in
the
applicable
Management
Agreements
for
the
year
ended
December
31,
2019.
The
Board
also
considered
the
returns
on
revenue
generated
in
connection
with
the
payment
of
subadvisory
fees
to
affiliated
Subadvisors
(Principal-REI
and
Spectrum)
and
the
aggregated
return
on
revenue
to
the
Manager
and
its
affiliates
for
the
year
ended
December
31,
2019.
The
Board
concluded
that
the
management
fee
for
each
Fund
was
reasonable,
taking
into
account
the
profitability
information
presented
by
the
Manager.
Economies
of
Scale
The
Board
considered
whether
there
are
economies
of
scale
with
respect
to
the
management
of
each
Fund
and
whether
the
Funds
benefit
from
any
such
economies
of
scale.
The
Board
considered
the
Manager’s
biennial
breakpoint
study
that
was
received
by
the
Board
in
March
2020
and
the
Manager’s
representation
that
Funds
are
initially
priced
as
though
the
Fund
had
reached
scale,
reflecting
a
sharing
of
economies
of
scale.
The
Board
then
reviewed
the
levels
at
which
breakpoints
occur,
the
incremental
declines
in
management
fee
rates
at
each
breakpoint
and
the
amount
of
fee
reductions
that
had
been
provided
to
shareholders
as
a
result
of
these
breakpoints.
The
Board
considered
cost
saving
passed
along
to
the
Funds
as
a
result
of
certain
expense
caps
and
fee
waivers.
The
Board
considered
whether
the
effective
management
fee
rate
for
each
Fund
under
the
applicable
Management
Agreement
is
reasonable
in
relation
to
the
asset
size
of
such
Fund.
The
Board
also
noted
management’s
explanation
of
efficiencies
in
the
Manager’s
cost
structure.
The
Board
concluded
that
the
fee
schedule
for
each
Fund
reflects
an
appropriate
level
of
sharing
of
any
economies
of
scale.
The
Board
noted
that
the
Principal
LifeTime
Accounts
do
not
directly
pay
management
fees,
although
shareholders
bear
a
portion
of
the
cost
of
the
management
fees
at
the
underlying
fund
level
as
reflected
in
the
acquired
fund
fees
and
expenses.
The
Board
also
noted
that
the
management
fees
for
the
Bond
Market
Index
Account,
Diversified
Balanced
Account,
the
Diversified
Balanced
Managed
Volatility
Account,
the
Diversified
Balanced
Volatility
Control
Account,
the
Diversified
Growth
Account,
the
Diversified
Growth
Managed
Volatility
Account,
the
Diversified
Growth
Volatility
Control
Account,
the
Diversified
Income
Account
and
the
LargeCap
S&P
500
Index
Account
do
not
include
breakpoints,
but
each
such
Fund
has
a
relatively
low
management
fee
rate
(25
basis
points
or
less)
on
all
Fund
assets.
Considering
all
relevant
factors,
including
the
level
of
the
fee,
the
Board
determined
that
no
breakpoints
were
necessary
at
this
time.
The
Board
further
determined
that
no
breakpoints
are
necessary
at
this
time
for
the
LargeCap
S&P
500
Managed
Volatility
Index
Account
due,
among
other
factors,
to
their
current
asset
levels
and
taking
into
account
levels
of
profitability
to
the
Manager.
Subadvisory
Fees,
Economies
of
Scale
and
Profitability
For
each
subadvised
Fund,
the
Board
considered
the
subadvisory
fees,
noting
that
the
Manager
compensates
each
Subadvisor
from
its
own
management
fee,
so
that
shareholders
pay
only
the
management
fee.
Nature,
Quality
and
Extent
of
Services
The
Board
considered
the
nature,
quality
and
extent
of
the
services
provided
under
each
Subadvisory
Agreement.
The
Board
considered
the
reputation,
qualifications
and
background
of
the
Subadvisor,
the
investment
approach
of
the
Subadvisor,
the
experience
and
skills
of
investment
personnel
responsible
for
the
day-to-day
management
of
each
Fund
and
the
resources
made
available
to
such
personnel.
The
Board
also
considered
the
Subadvisors’
compliance
with
investment
policies
and
general
legal
compliance.
Based
upon
all
relevant
factors,
the
Board
concluded
that
the
nature,
quality
and
extent
of
the
services
provided
by
the
Subadvisors
to
the
subadvised
Funds
under
the
Subadvisory
Agreements
are
satisfactory.
Investment
Performance
As
to
each
subadvised
Fund,
the
Manager
had
advised
the
Board
that
the
investment
services
delivered
by
each
Subadvisor
to
the
Fund
were
reasonable.
Based
upon
all
relevant
factors,
the
Board
concluded
that
each
Subadvisor
is
qualified
and
that
either:
(1)
the
investment
performance
of
the
Subadvisor
met
acceptable
levels
of
investment
performance;
or
(2)
although
the
Fund
experienced
underperformance
from
the
applicable
Subadvisor,
based
upon
that
Fund’s
particular
circumstances
or
in
light
of
remedial
efforts
being
taken
to
improve
performance,
as
applicable,
it
was
in
the
best
interests
of
the
Fund
to
continue
to
closely
monitor
performance
and
to
renew
the
Subadvisory
Agreement.
In
each
case
involving
underperformance,
the
Board
concluded
that
the
Manager
was
providing
effective
monitoring.
Fees,
Economies
of
Scale
and
Profitability
For
each
subadvised
Fund,
the
Board
considered
the
subadvisory
fee
rates,
noting
that
the
Manager
compensates
each
Subadvisor
from
its
own
management
fee,
so
that
shareholders
pay
only
the
management
fee.
For
each
subadvised
Fund,
the
Board
received
certain
information
from
Broadridge
comparing
each
such
Fund’s
subadvisory
fee
rate
at
current
asset
levels
and
at
theoretical
asset
levels
to
subadvisory
fee
rates
of
subadvised
funds
in
the
Expense
Group
and,
if
available,
the
Expense
Universe.
The
Board
considered
whether
there
are
economies
of
scale
with
respect
to
the
subadvisory
services
provided
to
each
subadvised
Fund
and,
if
so,
whether
the
subadvisory
fees
reflect
such
economies
of
scale
through
breakpoints
in
fees
or
whether
the
subadvisory
fee
schedule
is
266
otherwise
appropriate
at
current
asset
levels.
In
addition,
in
evaluating
the
subadvisory
fees
and
the
factor
of
profitability,
with
respect
to
unaffiliated
Subadvisors,
the
Board
considered
that
the
subadvisory
fee
rate
was
negotiated
at
arm’s
length
between
the
Manager
and
the
Subadvisor.
The
Board
considered
the
profitability
of
the
affiliated
Subadvisors
in
conjunction
with
their
review
of
the
profitability
of
the
Manager.
On
the
basis
of
the
information
provided,
the
Board
concluded
that
the
subadvisory
fees
were
reasonable.
Other
Benefits
to
Subadvisors
The
Board
also
considered
the
character
and
amount
of
other
incidental
benefits
received
by
each
Subadvisor
when
evaluating
the
subadvisory
fees.
The
Board
considered
as
a
part
of
this
analysis
each
Subadvisor’s
brokerage
practices,
soft
dollar
practices
and
use
of
research
payment
accounts.
The
Board
concluded
that,
on
the
basis
of
the
information
provided,
the
subadvisory
fees
were
reasonable.
Overall
Conclusions
Based
upon
all
of
the
information
considered
and
the
conclusions
reached,
the
Board
determined
that
the
terms
of
each
Advisory
Agreement
continue
to
be
fair
and
reasonable
and
that
the
continuation
of
each
Advisory
Agreement,
with
the
actions
proposed
by
the
Manager,
is
in
the
best
interests
of
each
Fund.
Management
Agreement
for
Blue
Chip
Account
On
September
14,
2020,
the
Board
met
to
consider
for
the
newly
established
PVC
Blue
Chip
Account
(the
“Account”)
the
approval
of
a
management
agreement
(the
“Management
Agreement”)
between
PVC
and
Principal
Global
Investors,
LLC
(the
“Manager”).
Based
upon
their
review,
the
Board
concluded
that
it
was
in
the
best
interests
of
the
Account
to
approve
the
Management
Agreement
and,
accordingly,
recommended
to
the
Board
of
Directors
the
approval
of
the
Management
Agreement.
In
reaching
this
conclusion,
no
single
factor
was
determinative
in
the
Board’s
analysis,
but
rather
the
Board
considered
a
variety
of
factors.
The
Board
considered,
among
other
factors,
that
the
Manager
serves
as
the
investment
adviser
to
the
existing
series
of
PVC,
that
the
Manager
has
had
a
long-term
relationship
with
PVC,
and
that
the
Manager
has
demonstrated
a
long-term
commitment
to
support
the
Principal
Funds.
The
Board
concluded
that
a
relationship
with
a
capable
and
conscientious
investment
adviser
is
in
the
best
interests
of
the
Account.
In
addition,
the
Board
considered
various
factors,
including
the
following,
and
made
certain
findings
and
conclusions
with
regard
thereto,
in
approving
the
Management
Agreement.
Nature,
Quality
and
Extent
of
Services
The
Board
considered
the
nature,
quality
and
extent
of
the
services
expected
to
be
provided
under
the
Management
Agreement,
including
administrative
services.
The
Board
noted
that,
in
connection
with
the
2020
annual
renewal
of
the
management
agreements
for
the
other
Principal
Funds,
the
Board
had:
(1)
reviewed
the
services
provided
by
the
Manager
to
the
other
accounts
of
PVC
under
the
management
agreement;
(2)
considered
the
experience
and
skills
of
senior
management
leading
fund
operations,
the
experience
and
skills
of
the
personnel
performing
the
functions
under
the
management
agreement
and
the
resources
made
available
to
such
personnel,
the
ability
of
the
Manager
to
attract
and
retain
high-quality
personnel,
and
the
organizational
depth
and
stability
of
the
Manager
and
concluded
that
appropriate
resources
were
provided
under
the
management
agreement
for
PVC;
and
(3)
considered
the
compliance
program
established
by
the
Manager
for
PVC,
as
applicable,
the
quality
of
that
program
and
the
level
of
compliance
attained
by
PVC.
Based
upon
all
relevant
factors,
the
Board
concluded
that
the
nature,
quality
and
extent
of
the
services
to
be
provided
by
the
Manager
to
the
Account
under
the
Management
Agreement
are
expected
to
be
satisfactory.
Investment
Performance
Because
the
Account
is
a
newly
created
series,
the
Board
did
not
review
performance
of
the
Account
as
no
track
record
was
available.
The
Board
reviewed
the
historical
one-
,
three-
and
five-year
and
since
inception
(June
14,
2012)
performance,
net
of
fees,
as
of
June
30,
2020
of
the
Institutional
Class
shares
of
a
series
of
Principal
Funds,
Inc.
(“PFI”)
that
is
managed
by
the
Manager
in
accordance
with
the
proposed
investment
strategy
for
the
Account,
as
compared
to
a
relevant
benchmark
index
and
a
relevant
Morningstar
category.
The
Board
also
reviewed
the
historical
annual
performance
of
the
Institutional
Class
shares
of
the
same
series
of
PFI
for
each
of
the
last
five
calendar
years,
net
of
fees,
as
compared
to
the
relevant
benchmark
index
and
the
relevant
Morningstar
category.
The
Board
concluded,
based
upon
the
information
provided,
that
the
Manager
is
qualified.
Fees,
Economies
of
Scale
and
Profitability
The
Board
considered
the
Account’s
proposed
management
fee.
The
Board
received
information
from
the
Manager,
based
upon
data
supplied
by
Broadridge,
comparing
the
proposed
management
fee
to
advisory
fees
of
funds
in
the
same
asset
category.
The
Board
also
considered
whether
there
are
economies
of
scale
with
respect
to
the
services
to
be
provided
to
the
Account
under
the
Management
Agreement.
The
Board
noted
that
the
proposed
management
fee
schedule
includes
breakpoints,
and
concluded
that
the
proposed
management
fee
schedule
reflects
an
appropriate
recognition
of
economies
of
scale
at
currently
anticipated
asset
levels.
In
evaluating
the
management
fee,
the
Board
considered
the
estimated
profitability
of
the
Account
to
the
Manager.
The
Board
also
reviewed
the
anticipated
expense
ratio
of
the
Class
3
shares
of
the
Account
and
considered
that
the
Manager
proposed
to
cap
the
total
expense
ratio
for
that
class
at
a
specified
level
through
April
30,
2020.
On
the
basis
of
the
information
provided,
the
Board
concluded
that
the
proposed
management
fee
for
the
Account
was
reasonable.
267
Other
Benefits
The
Board
also
considered
the
character
and
amount
of
other
incidental
benefits
to
be
received
by
the
Manager.
The
Board
noted
that
the
Manager
intends
to
use
Account
commissions
to
buy
Section
28(e)
eligible
products
and
services.
The
Board
concluded
that,
on
the
basis
of
the
information
provided,
the
incidental
benefits
to
be
received
by
the
Manager
and
its
affiliates
were
appropriate.
Overall
Conclusions
Based
upon
all
of
the
information
considered
and
the
conclusions
reached,
the
Board
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
approval
of
the
Management
Agreement
is
in
the
best
interests
of
the
Account.
268
Special
Meeting
of
Shareholders
Principal
Variable
Contracts
Funds,
Inc.
Held
October
28,
2020
1.
The
approval
of
a
change
to
the
Account’s
sub-classification
under
the
Investment
Company
Act
of
1940
from
‘diversified’
to
‘non-
diversified’
and
a
change
to
the
related
fundamental
investment
restriction.
For
Against
Abstain
LargeCap
Growth
Account
I
11,143,341.183
846,221.384
670,898.969
Federal
Income
Tax
Information
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2020
(unaudited)
269
Long-Term
Capital
Gain
Dividends.
Certain
Accounts
distributed
long-term
capital
gain
dividends
during
the
fiscal
year
ended
December
31,
2020
.
Details
of
designated
long-term
capital
gain
dividends
for
federal
income
tax
purposes
are
shown
in
the
notes
to
financial
statements.
To
the
extent
necessary
to
distribute
such
capital
gains,
certain
Accounts
may
also
utilize,
and
hereby
designate,
earnings
and
profits
distributed
to
shareholders
on
redemptions
of
shares
as
part
of
the
Dividends
Paid
Deduction.
Dividends
Received
Deduction
(“DRD”).
For
corporate
shareholders,
the
percentage
of
ordinary
income
distributions
(dividend
income
and
short-term
gains,
if
any)
for
the
year
ended
December
31,
2020
,
that
qualifies
for
the
DRD
are
as
follows:
Foreign
Taxes
Paid.
The
following
Accounts
elect
under
the
Internal
Revenue
Code
Section
(“IRC”)
853
to
pass
through
foreign
taxes
paid
to
their
shareholders.
The
total
amounts
of
foreign
taxes
reported
on
a
per
share
basis
in
the
year
ended
December
31,
2020
,
are
as
follows:
The
Accounts
may
receive
a
refund
of
taxes
that
can
result
in
a
redetermination
of
historical
foreign
taxes
paid
in
accordance
with
IRC
Section
905(c).
The
Accounts
will
provide
by
February
28th
annually,
when
applicable,
any
foreign
tax
redetermination
on
Principal’s
Tax
Center
website
under
the
Principal
Variable
Contracts
Funds,
Inc.’s
Foreign
Tax
Redetermination
Notices.
The
latest
Federal
Income
Tax
Information
is
available
on
Principal's
Tax
Center
website.
Website:
https://www.principalfunds.com/individual-investor/customer-support/tax-center
Please
consult
your
tax
advisor
if
you
have
any
questions.
DRD
DRD
Blue
Chip
Account
N/A
MidCap
Account
100.00%
Bond
Market
Index
Account
0.00%
Principal
Capital
Appreciation
Account
100.00
Core
Plus
Bond
Account
0.56
Principal
LifeTime
2010
Account
11.02
Diversified
Balanced
Account
31.32
Principal
LifeTime
2020
Account
16.33
Diversified
Balanced
Managed
Volatility
Account
30.79
Principal
LifeTime
2030
Account
26.36
Diversified
Balanced
Volatility
Control
Account
28.84
Principal
LifeTime
2040
Account
31.63
Diversified
Growth
Account
43.39
Principal
LifeTime
2050
Account
36.93
Diversified
Growth
Managed
Volatility
Account
40.11
Principal
LifeTime
2060
Account
39.24
Diversified
Growth
Volatility
Control
Account
35.97
Principal
LifeTime
Strategic
Income
Account
7.90
Diversified
Income
Account
22.20
Real
Estate
Securities
Account
0.69
Diversified
International
Account
0.00
SAM
Balanced
Portfolio
33.12
Equity
Income
Account
81.49
SAM
Conservative
Balanced
Portfolio
22.15
Government
&
High
Quality
Bond
Account
0.00
SAM
Conservative
Growth
Portfolio
45.85
International
Emerging
Markets
Account
0.19
SAM
Flexible
Income
Portfolio
16.19
LargeCap
Growth
Account
I
87.21
SAM
Strategic
Growth
Portfolio
49.37
LargeCap
S&P
500
Index
Account
92.86
Short-Term
Income
Account
0.00
LargeCap
S&P
500
Managed
Volatility
Index
Account
99.99
SmallCap
Account
99.96
Foreign
Taxes
Per
Share
Foreign
Source
Income
Foreign
Taxes
Per
Share
Foreign
Source
Income
Diversified
Balanced
Account
$
0.0033
8.43%
Principal
LifeTime
2030
Account
$
0.0068
24.10%
Diversified
Balanced
Managed
Volatility
Account
0.0025
9.35
Principal
LifeTime
2040
Account
0.0104
31.08
Diversified
Balanced
Volatility
Control
Account
0.0018
8.99
Principal
LifeTime
2050
Account
0.0108
35.33
Diversified
Growth
Account
0.0051
13.13
Principal
LifeTime
2060
Account
0.0100
40.21
Diversified
Growth
Managed
Volatility
Account
0.0037
13.55
Principal
LifeTime
Strategic
Income
Account
0.0019
6.95
Diversified
Growth
Volatility
Control
Account
0.0026
12.33
SAM
Balanced
Portfolio
0.0077
20.32
Diversified
Income
Account
0.0014
4.87
SAM
Conservative
Balanced
Portfolio
0.0038
11.58
Diversified
International
Account
0.0441
99.41
SAM
Conservative
Growth
Portfolio
0.0119
27.74
International
Emerging
Markets
Account
0.0554
99.12
SAM
Flexible
Income
Portfolio
0.0019
6.47
Principal
LifeTime
2010
Account
0.0031
8.75
SAM
Strategic
Growth
Portfolio
0.0185
38.64
Principal
LifeTime
2020
Account
0.0060
14.01
principalfunds.com
This
report
must
be
preceded
or
accompanied
by
a
current
prospectus
for
the
Principal
Variable
Contracts
Funds,
Inc.
Principal,
Principal
and
symbol
design,
and
Principal
Financial
Group
are
registered
trademarks
and
services
marks
of
Principal
Financial
Services,
Inc.,
a
Principal
Financial
Group
company.
©
2020
Principal
Financial
Services,
Inc.
|
MM1290-26
|
12/2020
|
103321
ITEM 2 – CODE OF ETHICS
(a) The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
(b) Not applicable.
(c) The Registrant has not amended, as described in Item 2(c) of Form N-CSR, its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.
(d) The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.
(e) Not applicable.
(f) The Registrant's Code of Ethics is attached as an Exhibit hereto in response to Item 13(a)(1).
ITEM 3 – AUDIT COMMITTEE FINANCIAL EXPERT
The Registrant's Board has determined that Elizabeth Nickels, a member of the Registrant's Audit Committee, is an "audit committee financial expert" and "independent," as such terms are defined in this Item.
ITEM 4 – PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) Audit Fees.
Ernst & Young is the principal accountant for the registrant. As such, Ernst & Young has audited the financial statements of the registrant and reviewed regulatory filings that include those financial statements. During the last two fiscal years, Ernst & Young has billed the following amounts for their professional services.
December 31, 2019 - $586,320
December 31, 2020 - $533,501
(b) Audit-Related Fees.
Ernst & Young provided audit-related services to the registrant that are not included in response to item 4(a). Those services related to the review of Form N-1A and Form N-14. Ernst & Young has billed the following amounts for those services.
December 31, 2019 - $5,500
December 31, 2020 - $5,500
Ernst and Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(c) Tax Fees.
Ernst & Young prepares and reviews the federal income tax returns and federal excise tax returns of the registrant. In connection with this service, Ernst & Young prepares and reviews the calculation of the registrant’s dividend distributions that are included as deductions on the tax returns. Ernst & Young also provides services to identify passive foreign investment companies. Ernst & Young also provides services to understand and comply with tax laws in certain foreign countries and services to determine the taxability of corporate actions. During the last two fiscal years, Ernst & Young has billed the following amounts for their professional tax services.
December 31, 2019 - $184,133
December 31, 2020 - $171,654
Ernst and Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(d) All Other Fees.
Ernst & Young has not billed the registrant for other products or services during the last two fiscal years.
Ernst and Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(e) (1) Audit Committee Pre-Approval Policy.
The audit committee of the registrant has adopted the following pre-approval policy:
Policy on Auditor Independence
The purpose of this policy is to ensure the independence of the Principal Funds' primary independent auditor. This policy is established by the Audit Committee (the "Committee") of the Boards of Directors of Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. and the Board of Trustees of Principal Exchange-Traded Funds and Principal Diversified Select Real Asset Fund (the “Funds”) (the “Boards of the Funds”) effective for all engagements of the primary independent auditor.
1. The primary independent auditor, its subsidiaries and affiliates shall not provide Prohibited Services to the Funds. For the purposes of this policy, Prohibited Services are:
·
Services that are subject to audit procedure during a financial statement audit;
·
Services where the auditor would act on behalf of management;
·
Services where the auditor is an advocate to the client's position in an adversarial proceeding;
·
Bookkeeping or other services related to the accounting records or financial statements of the Funds, its subsidiaries and affiliates;
·
Financial information systems design and implementation;
·
Appraisal or valuation services, fairness opinions, or contribution-in-kind reports;
·
Actuarial services;
·
Internal audit functions or human resources;
·
Broker or dealer, investment advisor, or investment banking services;
·
Legal services and expert services unrelated to the audit;
·
Tax planning services related to listed, confidential and aggressive transactions;
·
Personal tax planning services to individuals in a financial reporting oversight role with regard to the Funds (other than members of the Boards of the Funds who are not also officers of the Funds), including the immediate family members of such individuals;
·
Any other service that the Public Company Accounting Oversight Board (PCAOB) determines, by regulation, is impermissible.
2. (A) All services the primary independent auditor, its subsidiaries and affiliates provide to the Funds, and (B) Audit services, including audits of annual financial statements, audits of acquired or divested businesses or review of regulatory filings, any independent auditor provides, shall be approved by the Committee in advance in accordance with the following procedure:
Each quarter, Management will present to the Committee for pre-approval, a detailed description of each particular service, excluding tax services, for which pre-approval is sought and a range of fees for such service. The Committee may delegate pre-approval authority to one or more of its members provided such delegated member(s) shall present a report of any services approved to the full Committee at its next regularly scheduled meeting. The Committee Chairperson shall have pre-approval authority for changes to any range of fees applicable to services the Committee previously approved and for new services and the range of fees for such services that arise between regularly scheduled Committee meetings.
Similarly, the primary independent auditor will present to the Committee for pre-approval a written description of the nature and scope of all tax services not expressly prohibited, including the fee arrangements for such services, and the potential effects of such services on the audit firm’s independence.
In considering whether to pre-approve the primary independent auditor’s provision of non-audit services, the Committee will consider whether the services are compatible with the maintenance of such auditor's independence. The Committee will also consider whether the primary independent auditor is best positioned to provide the most effective and efficient service, for reasons such as its familiarity with the Funds' business, people, culture, accounting systems, risk profile and other factors, and whether the service might enhance the Funds' ability to manage or control risk or improve audit quality.
3. The provisions of this policy shall apply to all audit and non-audit services provided directly to the Funds. Additionally, the provisions of this policy shall apply to non-audit services provided to Principal Global Investors, LLC (“PGI”) or an affiliate of PGI that provides ongoing services to the Funds if the engagement relates directly to the operations and financial reporting of the Funds.
4. Not less than annually, the primary independent auditor shall report to the Committee in writing all relationships that may reasonably be thought to bear on independence between the auditor and the Funds or persons in financial reporting oversight roles with respect to any services provided by the auditor, its subsidiaries or affiliates as of the date of the communication, pursuant to Rule 3526 of the PCAOB. The primary independent auditor shall discuss with the Committee the potential effects of such relationships on the independence of the auditor. In addition, the primary independent auditor shall affirm, in writing, that, as of the date of the communication, it is independent within the meaning of the federal securities laws and Rule 3520 of the PCAOB.
5. The Committee shall ensure that the lead (or coordinating) audit partners, as well as the reviewing audit partner, of the Funds' primary independent auditor are rotated at least every five years and subject upon rotation to a five year "time out" period. All other audit partners of the primary independent auditor, excluding partners who simply consult with others on the audit engagement regarding technical issues, shall rotate after seven years and be subject upon rotation to a two year "time out" period.
6.
Neither the Funds nor PGI may hire or promote any former partner, principal, shareholder or professional employee (Former Employee) of the primary independent auditor into a financial reporting oversight role unless the Former Employee (1) has severed his/her economic interest in the independent audit firm, and (2) was not a member of the audit engagement team for the Funds during the one year period preceding the date that the audit procedures began for the fiscal period in which the Funds or PGI proposes to hire or promote the Former Employee. Neither the Funds nor PGI shall, without prior written consent of the primary independent auditor, hire or promote any Former Employee into a role not prohibited above if the Former Employee had provided any services to the Funds or PGI during the 12 months preceding the date of filing of the Funds' most recent annual report with the SEC. Upon termination of the primary independent auditor, the Funds or PGI shall not, without prior written consent of the former primary independent auditor, hire or promote any Former Employee for a period of up to 12 months from termination.
7.
For persons recently promoted or hired into a financial reporting oversight role (other than members of the Boards of the Funds who are not also officers of the Funds), any personal tax planning services pursuant to an engagement that was in progress before the hiring or promotion and provided by the primary independent auditor must be completed on or before 180 days after the hiring or promotion.
8.
The phrase "financial reporting oversight role" means a role in which a person is in a position to exercise influence over the contents of the financial statements or anyone who prepares them, such as a member of the board of directors or similar management or governing body, chief executive officer, president, chief operating officer, chief financial officer, counsel, controller, chief internal auditor, or any equivalent positions.
(Adopted by the Audit Committee of the Boards of the Funds on March 10, 2020).
(End of policy)
(e) (2) Pre-Approval Waivers.
There were no services provided to the registrant by Ernst & Young that were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f)
Substantially all work in connection with the audit of the registrant’s financial statements was performed by full-time employees of Ernst & Young.
(g)
The aggregate non-audit fees Ernst and Young billed to the registrant, the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant for each of registrant's last two fiscal years were as follows.
December 31, 2019 - $189,633
December 31, 2020 - $177,154
(h)
The registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
ITEM 5 – AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) Not applicable.
(b) Not applicable.
ITEM 6 – SCHEDULE OF INVESTMENTS
Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.
ITEM 7 – DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8 – PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 9 – PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10 – SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to registrant’s board of directors.
ITEM 11 – CONTROLS AND PROCEDURES
a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing).
(b) There have been no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
ITEM 12 – DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13 – EXHIBITS
(a)(1) Code of Ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as
Exhibit 99.CODE ETH
.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940 are attached hereto as
Exhibit 99.CERT
.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment Company Act of 1940 is attached hereto as
Exhibit 99.906CERT
.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Principal Variable Contracts Funds, Inc. |
By | /s/ Kamal Bhatia |
Kamal Bhatia, President and CEO
Date | 2/9/21 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By | /s/ Kamal Bhatia |
Kamal Bhatia, President and CEO
Date | 2/9/21 |
By | /s/ Tracy W. Bollin |
Tracy W. Bollin, Chief Financial Officer
Date | 2/9/21 |