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: | 515-235-1719 |
Date of fiscal year end: | December 31, 2021 |
Date of reporting period: | December 31, 2021 |
ITEM 1 – REPORT TO STOCKHOLDERS
Principal
Variable
Contracts
Funds,
Inc.
Annual
Report
December
31,
2021
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
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insurance
company
electronically
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following
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instructions
provided
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You
may
elect
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future
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in
paper
free
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charge
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company.
You
can
inform
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company
that
you
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to
continue
receiving
paper
copies
of
your
shareholder
reports
by
calling
1-800-247-
9988
if
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have
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life
insurance
policy
or
1-800-852-4450
if
you
have
an
annuity.
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Two
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select
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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
Fund
Information
2
Blue
Chip
Account
(unaudited)
3
Bond
Market
Index
Account
(unaudited)
4
Core
Plus
Bond
Account
(unaudited)
5
Diversified
Balanced
Account
(unaudited)
6
Diversified
Balanced
Managed
Volatility
Account
(unaudited)
7
Diversified
Balanced
Volatility
Control
Account
(unaudited)
8
Diversified
Growth
Account
(unaudited)
9
Diversified
Growth
Managed
Volatility
Account
(unaudited)
10
Diversified
Growth
Volatility
Control
Account
(unaudited)
11
Diversified
Income
Account
(unaudited)
12
Diversified
International
Account
(unaudited)
13
Equity
Income
Account
(unaudited)
14
Government
&
High
Quality
Bond
Account
(unaudited)
15
International
Emerging
Markets
Account
(unaudited)
16
LargeCap
Growth
Account
I
(unaudited)
17
LargeCap
S&P
500
Index
Account
(unaudited)
18
LargeCap
S&P
500
Managed
Volatility
Index
Account
(unaudited)
19
MidCap
Account
(unaudited)
20
Principal
Capital
Appreciation
Account
(unaudited)
21
Principal
LifeTime
2010
Account
(unaudited)
22
Principal
LifeTime
2020
Account
(unaudited)
23
Principal
LifeTime
2030
Account
(unaudited)
24
Principal
LifeTime
2040
Account
(unaudited)
25
Principal
LifeTime
2050
Account
(unaudited)
26
Principal
LifeTime
2060
Account
(unaudited)
27
Principal
LifeTime
Strategic
Income
Account
(unaudited)
28
Real
Estate
Securities
Account
(unaudited)
29
SAM
Balanced
Portfolio
(unaudited)
30
SAM
Conservative
Balanced
Portfolio
(unaudited)
31
SAM
Conservative
Growth
Portfolio
(unaudited)
32
SAM
Flexible
Income
Portfolio
(unaudited)
33
SAM
Strategic
Growth
Portfolio
(unaudited)
34
Short-Term
Income
Account
(unaudited)
35
SmallCap
Account
(unaudited)
36
Financial
Statements
37
Notes
to
Financial
Statements
78
Schedules
of
Investments
101
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
Despite
lingering
COVID
concerns,
the
global
economy
grew
faster
than
trend
levels
in
2021
following
the
rapid
recovery
in
2H
2020.
U.S.
real
GDP
grew
at
an
average
quarter-over-quarter
annualized
rate
of
5.0%
in
the
four
quarters
ending
3Q
2021
following
a
33.8%
rebound
in
3Q
2020.
Europe
and
Japan
followed
a
similar
trend
but
less
prominent
than
the
U.S.
China
GDP
growth
slowed
down
as
policymakers
adopted
deleveraging
policies
and
tightened
regulations
towards
various
business
sectors.
Global
manufacturing
Purchasing
Managers’
Index
(PMI)
remained
above
50
in
the
last
twelve
months
(a
number
above
50
means
manufacturing
activity
is
expanding
and
number
below
50
indicates
contraction),
and
the
latest
reading
as
of
December
2021
is
55.5,
with
96%
of
the
countries
tracked
showed
PMIs
higher
than
50.
While
the
overall
level
was
encouraging,
global
economic
growth
was
uneven.
GDP-weighted
developed
market
PMI
is
57.8,
much
higher
than
51.5
in
emerging
market.
Slower
vaccination
progress
and
stricter
lockdowns
made
emerging
market
economies
suffer
more
from
delta
strain
outbreak.
While
COVID-related
fiscal
support
gradually
faded,
easy
monetary
policies
buoyed
the
global
economy
and
market
in
2021.
However,
high
inflation
pressures
have
made
global
central
banks
incrementally
move
towards
tightening
as
the
Federal
Reserve
shifted
to
a
plan
for
faster
asset
purchase
tapering
and
rate
hikes
in
2022.
Several
EM
central
banks
already
started
hiking
rates
in
2021.
Strong
but
desynchronized
growth
has
created
a
demand-supply
gap
in
global
goods
which
pushed
inflation
higher
in
2021.
Global
inflation
increased
from
1.0%
in
December
2020
to
4.4%
in
November
2021.
While
transitory
forces
and
base
effects
explained
some
of
the
increase,
higher-for-longer
inflation
could
de-anchor
expectations
and
drive
up
the
prices
of
more
sticky
components.
Market
implied
inflation
expectations
represented
by
US
5-year
breakeven
inflation
rates
increased
from
1.97,
as
of
December
31,
2020,
to
2.91,
as
of
December
31,
2021.
As
of
December
2021,
global
earnings
have
surpassed
pre-crisis
levels
as
two-year
compounded
growth
rate
(2yr
CAGR)
improved
to
11%.
Compared
to
the
same
time
last
year,
MSCI
All
Country
World
Index
(ACWI)
trailing
12
months
earnings
per
share
(TTM
EPS)
grew
by
67%.
MSCI
World
ex
USA
Index
experienced
bigger
losses
in
earnings
(TTM
EPS
down
-47%
as
of
December
2020)
but
exhibited
faster
recovery
with
a
136%
increase
during
the
last
twelve
months.
MSCI
USA
Index
TTM
EPS
grew
by
43%
year-over-year,
helped
by
a
strong
recovery
in
small-cap
and
mid-cap
companies.
Technology
stocks
(NASDAQ
100)
earnings
were
the
most
resilient,
with
5%
gains
in
2020
and
20%
gains
in
2021.
MSCI
Emerging
Markets
(EM)
trailing
12
months
EPS
increased
by
50%
compared
to
2020.
MSCI
China
trailing
12
months
EPS
lagged
with
only
6%
growth
in
2021
(2yr
CAGR
-2%).
Global
equities
markedly
outperformed
global
fixed
income
in
2021.
In
USD
terms,
MSCI
ACWI
recorded
19%
gains
year-over-year
while
Bloomberg
Global
Aggregate
Corporate
index
ended
-3%
lower.
Within
equities,
developed
market
outperformed
emerging
markets
by
24%
and
US
outperformed
developed
market
ex
US
by
14%.
Among
major
markets,
China
was
the
worst
performer
with
-22%
loss,
bringing
MSCI
EM
down
to
-3%.
Within
U.S.,
large
cap
and
growth
slightly
outperformed.
Bloomberg
US
treasury
delivered
-2%
loss
as
U.S.
10-
year
treasury
yield
rose
from
91bps
to
151bps.
Global
high
yield
bonds
beat
global
investment
corporate
bonds
and
global
treasury
bonds
by
4%
and
8%
respectively.
Commodity
prices
represented
by
S&P
GSCI
total
return
index
increased
by
40%
and
Nymex
crude
oil
rose
from
48.5
to
75.2
USD/Barrel.
*
Unless
otherwise
stated,
data
sources
are
Bloomberg,
FactSet,
and
Principal
Global
Asset
Allocation.
Data
as
of
December
31,
2021.
2
Important
Fund
Information
The
following
information
applies
to
all
funds
shown
in
the
annual
report:
The
line
graphs
on
the
following
pages
illustrate
the
growth
of
a
hypothetical
$10,000
investment.
For
each
fund,
the
illustration
is
based
on
performance
of
Class
3
shares
for
Blue
Chip
Account,
Class
2
shares
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,
and
Class
1
shares
for
all
other
funds.
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
fund’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
Blue
Chip
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
Under
normal
circumstances,
the
fund
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
that,
in
the
opinion
of
Principal
Global
Investors,
LLC
("PGI,"
the
fund's
investment
advisor),
display
characteristics
of
a
"blue
chip"
company.
For
this
fund,
companies
with
large
market
capitalizations
are
those
with
market
capitalizations
similar
to
companies
in
the
Russell
1000®
Growth
Index.
Over
its
fiscal
year,
Blue
Chip’s
relative
performance
benefitted
from
positive
sector
allocation
from
its
underweight
position
in
both
Consumer
Staples
and
Consumer
Discretionary.
The
largest
contributor
to
the
fund’s
performance
was
Microsoft.
CEO
Satya
Nadella
has
positioned
Microsoft
for
the
future,
with
key
investments
in
its
fast-growing
commercial
cloud
business
and
the
transition
of
its
Office
suite
to
a
subscription
service
delivered
over
the
Internet.
The
next
largest
contributor
was
Alphabet,
the
parent
company
of
services
like
Google
&
YouTube.
Alphabet's
core
businesses
have
tremendous
advantages
and
will
continue
to
benefit
as
advertising
budgets
move
from
traditional
media
to
where
people
increasingly
spend
their
time.
Another
contributor
was
Intuit,
the
software
company
that
makes
QuickBooks
and
TurboTax.
The
largest
detractor
for
the
year
was
Twilio.
Twilio
provides
businesses
a
software
platform
that
enables
voice,
messaging
and
videos
to
be
embedded
into
any
application.
Examples
include
automated
text
messages
for
gate
changes
at
the
airport
and
two-factor
authentication
for
mobile
banking.
The
next
largest
detractor
for
the
year
was
PayPal.
PayPal’s
technology
investments,
such
as
its
one-touch
innovation,
have
improved
the
user
experience
and
led
to
better
conversion
rates
for
merchants.
As
people
around
the
world
gravitate
to
e-commerce
and
easier
payment
solutions,
PayPal
stands
to
benefit.
The
third
detractor
for
the
year
was
CoStar
Group.
CoStar
Group
has
for
more
than
30
years
been
building
the
best
data
set
in
the
world
on
commercial
real
estate.
Sometimes
called
the
“Bloomberg
for
commercial
real
estate,”
their
CoStar
Suite
has
become
an
essential
subscription
for
many
of
the
property
owners,
management
companies,
investors,
banks,
and
brokers
that
make
up
this
industry.
Value
of
a
$10,000
Investment*
December
9,
2020
-
December
31,
2021
1-Year
Since
Inception
Inception
Date
Class
3
Shares
24.72%
27.11%
12/9/20
4
Bond
Market
Index
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
current
income.
Under
normal
circumstances,
the fund
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
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).
During
the
past
year
the
top
contributing
factors
included
shorter
duration
position
relative
to
the
benchmark
as
interest
rates
increased,
slightly
higher
allocation
compared
to
benchmark
weight
to
investment
grade
corporate
bonds
and
an
allocation
to
cash
used
to
manage
portfolio
cash
flows.
During
the
past
year
the
top
detracting
factors
included
security
selection
within
mortgage-backed
securities,
U.S.
Treasury
securities
and
investment
grade
corporate
bonds.
Value
of
a
$10,000
Investment*
May
15,
2012
-
December
31,
2021
1-Year
5-Year
Since
Inception
Inception
Date
Class
1
Shares
-1.83%
3.32%
2.50%
5/15/12
5
Core
Plus
Bond
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
current
income
and,
as
a
secondary
objective,
capital
appreciation.
Under
normal
circumstances,
the fund
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.
During
the
past
year
the
top
contributing
factors
included
out-of-index
allocation
to
below
investment
grade
corporate
bonds,
curve
positioning,
and
security
selection
within
below
investment
grade
corporate
bonds.
During
the
past
year
the
top
detracting
factors
included
security
selection
within
investment
grade
corporate
bonds,
underweight
allocation
to
government
related
debt,
and
security
selection
within
U.S.
Treasury
securities.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
-0.45%
4.35%
3.70%
12/18/87
6
Diversified
Balanced
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
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 fund
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
driven
by
strong
earnings
growth.
U.S.
small-caps
lagged
large-caps
but
still
outperformed
U.S.
mid-cap
equities.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
but
still
outperformed
fixed
income
by
a
broad
margin
for
the
year.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date***
Class
1
Shares
11.06%
9.94%
8.63%
5/1/17
12/30/09
Class
2
Shares
10.83%
9.70%
8.51%
12/30/09
–
Class
3
Shares
10.65%
9.54%
8.35%
12/9/20
12/30/09
**The
Fund
uses
a
blended
benchmark,
Diversified
Balanced
Custom
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
Diversified
Balanced
Custom
Index
is
composed
of
50%
Bloomberg
U.S.
Aggregate
Bond
Index,
35%
S&P
500
Index,
7%
MSCI
EAFE
Index
NTR,
4%
S&P
MidCap
400
Index,
and
4%
S&P
SmallCap
600
Index.
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
7
Diversified
Balanced
Managed
Volatility
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
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 fund
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
driven
by
strong
earnings
growth.
U.S.
small-caps
lagged
large-caps
but
still
outperformed
U.S.
mid-cap
equities.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
but
still
outperformed
fixed
income
by
a
broad
margin
for
the
year.
Value
of
a
$10,000
Investment*
October
31,
2013
-
December
31,
2021
1-Year
5-Year
Since
Inception
Inception
Date
Extended
Performance
Inception
Date***
Class
2
Shares
9.94%
9.21%
7.46%
10/31/13
–
Class
3
Shares
9.81%
9.05%
7.29%
12/9/20
10/31/13
**The
Fund
uses
a
blended
benchmark,
Diversified
Balanced
Managed
Volatility
Custom
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
Diversified
Balanced
Managed
Volatility
Custom
Index
is
composed
of
50%
Bloomberg
U.S.
Aggregate
Bond
Index,
35%
S&P
500
Index,
7%
MSCI
EAFE
Index
NTR,
4%
S&P
MidCap
400
Index,
and
4%
S&P
SmallCap
600
Index.
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
8
Diversified
Balanced
Volatility
Control
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
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 fund
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 fund
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
driven
by
strong
earnings
growth.
U.S.
small-caps
lagged
large-caps
but
still
outperformed
U.S.
mid-cap
equities.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
but
still
outperformed
fixed
income
by
a
broad
margin
for
the
year.
Value
of
a
$10,000
Investment*
March
30,
2017
-
December
31,
2021
1-Year
Since
Inception
Inception
Date
Extended
Performance
Inception
Date***
Class
2
Shares
10.08%
7.96%
3/30/17
–
Class
3
Shares
9.94%
7.82%
12/9/20
3/30/17
**The
Fund
uses
a
blended
benchmark,
Diversified
Balanced
Volatility
Control
Custom
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
Diversified
Balanced
Volatility
Control
Custom
Index
is
composed
of
50%
Bloomberg
U.S.
Aggregate
Bond
Index,
35%
S&P
500
Index,
7%
MSCI
EAFE
Index
NTR,
4%
S&P
MidCap
400
Index,
and
4%
S&P
SmallCap
600
Index.
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
9
Diversified
Growth
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
capital
appreciation.
The fund
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
driven
by
strong
earnings
growth.
U.S.
small-caps
lagged
large-caps
but
still
outperformed
U.S.
mid-cap
equities.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
but
still
outperformed
fixed
income
by
a
broad
margin
for
the
year.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date***
Class
2
Shares
14.79%
11.53%
10.26%
12/30/09
–
Class
3
Shares
14.63%
11.37%
10.09%
12/9/20
12/30/09
**The
Fund
uses
a
blended
benchmark,
Diversified
Growth
Custom
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
Diversified
Growth
Custom
Index
is
composed
of
45%
S&P
500
Index,
35%
Bloomberg
U.S.
Aggregate
Bond
Index,
10%
MSCI
EAFE
Index
NTR,
5%
S&P
MidCap
400
Index,
and
5%
S&P
SmallCap
600
Index.
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
10
Diversified
Growth
Managed
Volatility
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
capital
appreciation,
with
an
emphasis
on
managing
volatility.
The fund
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
driven
by
strong
earnings
growth.
U.S.
small-caps
lagged
large-caps
but
still
outperformed
U.S.
mid-cap
equities.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
but
still
outperformed
fixed
income
by
a
broad
margin
for
the
year.
Value
of
a
$10,000
Investment*
October
31,
2013
-
December
31,
2021
1-Year
5-Year
Since
Inception
Inception
Date
Extended
Performance
Inception
Date***
Class
2
Shares
13.70%
10.93%
8.78%
10/31/13
–
Class
3
Shares
13.44%
10.74%
8.59%
12/9/20
10/31/13
**The
Fund
uses
a
blended
benchmark,
Diversified
Growth
Managed
Volatility
Custom
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
Diversified
Growth
Managed
Volatility
Custom
Index
is
composed
of
45%
S&P
500
Index,
35%
Bloomberg
U.S.
Aggregate
Bond
Index,
10%
MSCI
EAFE
Index
NTR,
5%
S&P
MidCap
400
Index,
and
5%
S&P
SmallCap
600
Index.
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
11
Diversified
Growth
Volatility
Control
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
capital
appreciation,
while
seeking
to
control
volatility.
The fund
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
driven
by
strong
earnings
growth.
U.S.
small-caps
lagged
large-caps
but
still
outperformed
U.S.
mid-cap
equities.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
but
still
outperformed
fixed
income
by
a
broad
margin
for
the
year.
Value
of
a
$10,000
Investment*
March
30,
2017
-
December
31,
2021
1-Year
Since
Inception
Inception
Date
Extended
Performance
Inception
Date***
Class
2
Shares
13.89%
9.31%
3/30/17
–
Class
3
Shares
13.74%
9.17%
12/9/20
3/30/17
**The
Fund
uses
a
blended
benchmark,
Diversified
Growth
Volatility
Control
Custom
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
Diversified
Growth
Volatility
Control
Custom
Index
is
composed
of
45%
S&P
500
Index,
35%
Bloomberg
U.S.
Aggregate
Bond
Index,
10%
MSCI
EAFE
Index
NTR,
5%
S&P
MidCap
400
Index,
and
5%
S&P
SmallCap
600
Index.
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
12
Diversified
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
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 fund
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
driven
by
strong
earnings
growth.
U.S.
small-caps
lagged
large-caps
but
still
outperformed
U.S.
mid-cap
equities.
Abroad,
non-U.S.
developed
equities
lagged
U.S.
equities
but
still
outperformed
fixed
income
by
a
broad
margin
for
the
year.
Value
of
a
$10,000
Investment*
May
15,
2012
-
December
31,
2021
1-Year
5-Year
Since
Inception
Inception
Date
Extended
Performance
Inception
Date***
Class
2
Shares
6.96%
7.80%
6.75%
5/15/12
–
Class
3
Shares
6.78%
7.63%
6.58%
12/9/20
5/15/12
**The
Fund
uses
a
blended
benchmark,
Diversified
Income
Custom
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
Diversified
Income
Custom
Index
is
composed
of
65%
Bloomberg
U.S.
Aggregate
Bond
Index,
25%
S&P
500
Index,
4%
MSCI
EAFE
Index
NTR,
3%
S&P
MidCap
400
Index,
and
3%
S&P
SmallCap
600
Index.
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
2
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
13
Diversified
International
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
The
fund
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
fund
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
fund
also
invests
in
emerging
market
securities.
The
fund
invests
in
equity
securities
regardless
of
market
capitalization
size
and
style
(growth
or
value).
Strong
stock
selection
was
witnessed
in
health
care
and
consumer
discretionary
from
a
sector
perspective,
as
well
as
in
emerging
markets.
Top
performers
included
ASM
International,
Bank
Leumi
Le-Israel,
and
TCS
Group.
ASM
International,
which
develops,
manufactures,
markets,
and
services
machines
used
to
produce
semiconductors,
continues
to
benefit
from
adoption
of
its
ALD
equipment
technology
across
end
markets,
driven
by
lower
node
migration
in
Foundry
/
Logic
and
increasing
served
available
market
opportunity
in
memory.
Bank
Leumi
Le-Israel,
a
leading
bank
in
Israel
offering
retail,
commercial,
and
corporate
banking
services,
saw
benefit
from
improving
loan
growth
led
by
digitalization
of
its
banking
services.
TCS
Group,
one
of
the
largest
online
banks
globally,
is
diversifying
into
secured
lending,
via
Home
Equity
product,
which
is
opening
a
new
growth
angle
in
a
structurally
attractive
segment,
driving
its
return
on
equity
higher.
On
the
other
hand,
negative
attribution
was
seen
in
the
communication
services
and
energy
sectors,
as
well
as
in
Finland.
Shimao
Services,
A-Living
Smart
City
Services,
and
Magazine
Luiza
led
underperformance
during
the
year.
Shimao
Services,
a
leading
property
management
company
under
Shimao
Group
in
China,
and
A-Living
Smart
City
Services,
a
top
ten
property
management
company
in
China,
both
experienced
weakness
stemming
from
default
concerns
from
their
peers
that
possess
elevated
debt
levels.
Magazine
Luiza,
one
of
the
largest
retail
chains
in
Brazil,
experienced
questions
surrounding
its
equity
offering,
as
well
as
its
margins
and
cash
flow
uncertainty.
The
portfolio
has
since
exited
its
position
in
all
three
companies.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
9.75%
10.73%
8.49%
5/2/94
14
Equity
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
current
income
and
long-term
growth
of
income
and
capital.
Under
normal
circumstances,
the fund
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 fund
invests
in
value
equity
securities,
an
investment
strategy
that
emphasizes
buying
equity
securities
that
appear
to
be
undervalued.
KKR
&
Co.
Inc.
(KKR),
a
leading
alternatives
manager,
reported
record
AUM
of
$459
billion
as
of
September
30th,
2021,
up
96%
year-
over-year.
Not
owning
Walt
Disney
Company
(DIS)
contributed
to
relative
performance.
EOG
Resources
Incorporated
(EOG),
a
premier
exploration
and
production
company,
moved
higher
with
the
energy
sector
and
continues
to
generate
healthy
free
cash
flows.
EOG
raised
its
quarterly
dividend
82%
in
November
and
announced
a
$2.00
per
share
special
dividend.
Cable
One,
Inc.
(CABO)
lagged
as
investors
feared
that
new
customer
additions
would
decline
year
over
year
after
accelerating
during
COVID. Novartis
AG
(NVS)
detracted
from
relative
results
as
revenues
and
operating
incomes
failed
to
meet
investor
expectations,
particularly
in
its
generic
drug
segment,
as
the
pandemic
led
patients
to
delay
doctor
visits
and
procedures.
Activision
Blizzard,
Inc.
(ATVI)
unperformed
as
the
company
has
faced
legal
issues
related
to
their
workplace
culture
and
pay.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date***
Class
1
Shares
22.47%
14.11%
13.32%
4/28/98
–
Class
2
Shares
22.15%
13.83%
13.03%
5/1/01
–
Class
3
Shares
21.97%
13.67%
12.88%
12/9/20
4/28/98
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
1
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
15
Government
&
High
Quality
Bond
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
a
high
level
of
current
income
consistent
with
safety
and
liquidity.
The fund
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 MBS
Fixed
Rate
Index
.
During
2021
the
Federal
Reserve
(Fed)
continued
its
quantitative
easing
purchase
programs,
yet
announced
a
taper
of
these
purchase
programs
at
the
November
2021
meeting.
From
December
2020
to
December
2021
the
rate
on
the
US
10
year
note
moved
from
0.92%
to
1.51%.
During
this
period
the
fund
was
positioned
with
a
shorter
duration
than
the
index
which
was
the
largest
contributor
to
performance.
Out-of-index
allocation
to
the
US
Treasury
sector
contributed
to
performance
as
securities
held
in
this
sector
outperformed
the
index.
Further,
out-of-index
allocation
to
auto
asset
backed
securities
(Auto
ABS)
also
outperformed
the
benchmark
contributing
to
fund
performance.
Out-of-index
allocation
agency
collateralized
mortgage
obligations
(CMO)
was
the
largest
detractor
to
performance.
Security
selection
was
also
a
detractor
to
performance
for
the
period
as
specified
pool
pay-ups
were
under
pressure
and
these
pay-ups
are
not
reflected
in
index
cohorts.
Underweight
allocations
to
the
conventional
20
year
sector
also
detracted.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
-1.32%
2.13%
2.11%
5/6/93
16
International
Emerging
Markets
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
0.58%
9.42%
5.03%
10/24/00
The
investment
seeks
long-term
growth
of
capital.
The fund
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.
Our
global
emerging
markets
strategy
outperformed
the
index
over
the
last
twelve
months.
China
and
the
Asia
ex-China
were
the
best
performing
regions
over
the
last
twelve
months.
Gains
in
China
were
driven
by
positive
stock
selection
in
the
consumer
discretionary,
communication
services,
and
information
technology
sectors
while
South
Korea
and
Taiwan
highlighted
outperformance
in
Asia
ex-China
region.
Positive
stock
selection
in
the
health
care
sector
drove
gains
in
South
Korea
and
the
technology
sector
accounted
for
the
outperformance
in
Taiwan
where
we
benefitted
from
our
overweight
position
and
positive
stock
selection.
From
a
sector
standpoint,
information
technology,
consumer
staples,
and
health
care
were
the
top
performers
where
stock
selection
drove
gains.
The
top
contributors
during
the
period
were
overweight
positions
to
TCS
Group,
up
157.9%,
Osstem
Implant,
up
155.7%,
MediaTek,
up
67.5%,
eMemory
Technology,
up
104.0%
and
no
exposure
to
Pinduoduo,
down
67.2%.
The
EMEA
region
was
the
worst
performer
over
the
last
twelve
months
where
we
were
hurt
by
our
underweight
to
the
energy
producing
nations,
namely
Saudi
Arabia.
We
were
also
hurt
by
negative
stock
selection
in
Brazil
where
the
consumer
discretionary
sector
accounted
for
most
of
the
underperformance.
Energy
and
communication
services
were
the
worst
performing
sectors
during
the
period.
In
energy,
we
were
hurt
by
our
underweight
position
to
the
sector
and
communication
services
was
driven
by
negative
stock
selection.
Notable
detractors
during
the
period
were
overweight
positions
to
Magazine
Luiza,
down
73.0%,
A-Living,
down
61.0%,
SK
Hynix,
down
19.6%,
and
no
exposure
to
Al
Rajhi
Bank,
up
96.8%,
and
Gazprom,
up
65.1%.
17
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,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
Under
normal
circumstances,
the fund
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
fund,
companies
with
large
market
capitalizations
are
those
with
market
capitalizations
within
the
range
of
companies
comprising
the
Russell
1000®
Growth
Index.
The fund
is
non-diversified.
The
health
care
sector
was
the
top
contributor
driven
by
strong
stock
selection.
An
overweight
to
the
communication
services
sector
and
an
underweight
to
the
consumer
discretionary
sector
was
beneficial.
Stock
selection
was
also
a
positive
contributor
in
the
materials
and
consumer
staples
sectors.
Poor
stock
selection
was
the
major
driver
of
underperformance,
most
notably
in
the
information
technology
sector.
The
communication
services
and
consumer
discretionary
sectors
also
had
poor
stock
selection.
An
underweight
to
information
technology
names
was
a
headwind.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
21.89%
25.41%
19.27%
6/1/94
18
LargeCap
S&P
500
Index
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
Under
normal
circumstances,
the fund
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
2021,
the
fund
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.
All
eleven
economic
sectors
in
the
index
posted
positive
returns
during
the
period
with
the
energy
and
real
estate
sectors
providing
the
best
return.
The
utility
and
consumer
staples
sectors
recorded
the
worst
returns
during
the
period.
Fortinet,
Ford
Motor,
and
NVIDIA
contributed
to
fund
performance
for
the
12
month
period
ending
December.
Penn
National
Gaming,
Global
Payments,
and
Activision
Blizzard
detracted
from
fund
performance
for
the
12
month
period
ending
in
December.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date***
Class
1
Shares
28.33%
18.16%
16.21%
5/3/99
–
Class
2
Shares
28.05%
17.85%
15.92%
5/1/15
5/3/99
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
1
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
19
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,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital,
with
an
emphasis
on
managing
volatility.
Under
normal
circumstances,
the fund
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
2021,
the
fund
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.
All
eleven
economic
sectors
in
the
index
posted
positive
returns
during
the
period
with
the
energy
and
real
estate
sectors
providing
the
best
return.
The
utility
and
consumer
staples
sectors
recorded
the
worst
returns
during
the
period.
Fortinet,
Ford
Motor,
and
NVIDIA
contributed
to
fund
performance
for
the
12
month
period
ending
December.
Penn
National
Gaming,
Global
Payments,
and
Activision
Blizzard
detracted
from
fund
performance
for
the
12
month
period
ending
in
December.
Value
of
a
$10,000
Investment*
October
31,
2013
-
December
31,
2021
1-Year
5-Year
Since
Inception
Inception
Date
Class
1
Shares
25.55%
16.80%
13.60%
10/31/13
20
MidCap
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
Under
normal
circumstances,
the fund
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
fund,
companies
with
medium
market
capitalizations
are
those
with
market
capitalizations
within
the
range
of
companies
comprising
the
Russell
Midcap®
Index.
Over
its
fiscal
year,
MidCap’s
relative
performance
benefitted
from
sector
allocation,
mainly
from
its
overweight
position
in
Financials
and
underweight
position
in
Health
Care.
In
addition
to
the
positive
impact
from
sector
allocation,
company
selection
also
benefited
relative
performance
and
was
the
larger
of
the
two.
The
largest
contributor
to
the
MidCap's
performance
was
Brookfield
Asset
Management,
which
is
an
owner
and
operator
of
real
asset-based
businesses
globally
and
has
grown
as
an
asset
manager
for
outside
investors
that
pay
a
fee
for
Brookfield’s
services.
The
company's
management
team,
led
by
CEO
Bruce
Flatt,
owns
more
than
18%
of
the
company.
The
next
largest
contributor
was
KKR
&
Co.
KKR
is
a
global
asset
management
firm
with
leading
capabilities
in
private
equity,
credit,
and
real
assets.
Their
terrific
investment
track
record
has
enabled
them
to
continually
raise
larger
funds,
which
are
frequently
oversubscribed.
Another
contributor
for
the
year
was
O’Reilly
Automotive;
a
leading
auto
parts
aftermarket
retailer,
serving
both
consumers
who
repair
their
own
vehicles
and
professional
mechanics
through
their
more
than
5,000
stores
in
the
United
States.
Information
Technology
underperformed
relative
to
the
benchmark.
The
top
detractor
for
the
year
was
Wix.com.
Wix.com
is
the
largest
provider
of
DIY
website-building
software,
to
create
a
professional-looking
digital
presence
at
an
attractive
price.
The
next
largest
detractor
was
CoStar
Group,
commercial
real
estate’s
leading
provider
of
information,
analytics,
and
online
marketplaces.
Sometimes
called
the
“Bloomberg
for
commercial
real
estate,”
their
CoStar
Suite
has
become
an
essential
subscription
for
many
of
the
property
owners,
management
companies,
investors,
banks,
and
brokers
that
make
up
this
industry.
Another
detractor
during
the
year
was
Guidewire
Software,
a
leading
software
provider
to
property
&
casualty
insurance
companies.
Their
software
solutions
help
with
all
aspects
of
their
operations
(claims,
policy
management,
billing,
etc).
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
25.53%
20.05%
17.59%
12/18/87
Class
2
Shares
25.20%
19.74%
17.30%
9/9/09
21
Principal
Capital
Appreciation
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
growth
of
capital.
The fund
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
fund'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.
Costco
Wholesale
Corporation
(COST)
outperformed
as
the
company
saw
strong
membership
trends
over
the
past
year.
Extra
Space
Storage
Inc.
(EXR)
saw
strong
customer
demand
on
the
year
with
same
store
occupancy
hitting
all-time
highs
along
with
rent
per
square
foot
hitting
new
highs
as
well.
Tractor
Supply
Company
(TSCO)
contributed
to
relative
results
as
TSCO
continues
to
navigate
supply
chain
issues
well
and
has
seen
strong
demand
as
sales
growth
increased
13.1%
on
top
of
26.8%
a
year
ago.
T-Mobile
US,
Inc.
(TMUS)
detracted
from
results
as
investors
worried
about
increased
competition
between
U.S.
carriers.
Not
owning
Tesla
Inc
(TSLA)
detracted
from
relative
results.
Fair
Isaac
Corporation
(FICO)
underperformed
as
investors
became
increasingly
concerned
about
the
impact
of
slowing
home
mortgage
refinancing
in
light
of
higher
interest
rates.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
27.82%
18.58%
16.07%
4/28/98
Class
2
Shares
27.50%
18.28%
15.78%
11/6/01
22
Principal
LifeTime
2010
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The fund
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
fund's
name.
The
fund'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 fund
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Asset
class
positioning
was
the
largest
contributor
to
performance
for
the
year
driven
by
an
overweight
to
U.S.
equity
and
underweights
to
fixed
income
and
non-U.S.
equity.
An
overweight
to
the
real
asset
space
contributed
positively
as
the
asset
class
was
the
best
performer
for
the
year.
A
slight
overweight
to
U.S.
smallcap
equity
and
dedicated
high
yield
also
contributed
to
performance
for
the
year.
Active
management
within
the
non-U.S.
equity
asset
class
contributed
for
the
year
as
the
Diversified
International,
Overseas,
and
Origin
Emerging
Markets
investment
options
outperformed
their
respective
indices.
Active
management
within
the
U.S.
mid
and
small
cap
equity
space
contributed
for
the
year
as
all
strategies
posted
strong
performance
relative
to
their
indices.
Active
management
within
the
U.S.
largecap
equity
space
detracted
for
the
year
as
the
LargeCap
Growth
I,
Blue
Chip,
Equity
Income,
and
LargeCap
Value
III
investment
options
lagged
their
indices.
Style
selection
detracted
within
the
U.S.
equity
asset
class
as
the
Russell
indices
underperformed
the
S&P
indices
for
the
year.
Style
selection
detracted
within
non-U.S.
equity
as
the
MSCI
ACWI
ex
U.S.
index
underperformed
the
S&P
developed
index
due
to
its
exposure
to
emerging
markets.
In
the
near
dated
vintages,
an
underweight
to
treasury
inflation-protected
securities
detracted
as
the
asset
class
was
the
best
performer
within
fixed
income.
The
Inflation
Protection
investment
option
also
lagged
its
index
for
the
year.
Manager
performance
of
the
Core
Fixed
Income
investment
option
detracted
for
the
year
as
it
underperformed
its
index.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
5.94%
7.60%
6.89%
8/30/04
23
Principal
LifeTime
2020
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The
fund
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
fund's
name.
The
fund'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
fund
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Asset
class
positioning
was
the
largest
contributor
to
performance
for
the
year
driven
by
an
overweight
to
U.S.
equity
and
underweights
to
fixed
income
and
non-U.S.
equity.
An
overweight
to
the
real
asset
space
contributed
positively
as
the
asset
class
was
the
best
performer
for
the
year.
A
slight
overweight
to
U.S.
smallcap
equity
and
dedicated
high
yield
also
contributed
to
performance
for
the
year.
Active
management
within
the
non-U.S.
equity
asset
class
contributed
for
the
year
as
the
Diversified
International,
Overseas,
and
Origin
Emerging
Markets
investment
options
outperformed
their
respective
indices.
Active
management
within
the
U.S.
mid
and
small
cap
equity
space
contributed
for
the
year
as
all
strategies
posted
strong
performance
relative
to
their
indices.
Active
management
within
the
U.S.
largecap
equity
space
detracted
for
the
year
as
the
LargeCap
Growth
I,
Blue
Chip,
Equity
Income,
and
LargeCap
Value
III
investment
options
lagged
their
indices.
Style
selection
detracted
within
the
U.S.
equity
asset
class
as
the
Russell
indices
underperformed
the
S&P
indices
for
the
year.
Style
selection
detracted
within
non-U.S.
equity
as
the
MSCI
ACWI
ex
U.S.
index
underperformed
the
S&P
developed
index
due
to
its
exposure
to
emerging
markets.
In
the
near
dated
vintages,
an
underweight
to
treasury
inflation-protected
securities
detracted
as
the
asset
class
was
the
best
performer
within
fixed
income.
The
Inflation
Protection
investment
option
also
lagged
its
index
for
the
year.
Manager
performance
of
the
Core
Fixed
Income
investment
option
detracted
for
the
year
as
it
underperformed
its
index.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
9.17%
9.63%
8.83%
8/30/04
24
Principal
LifeTime
2030
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The
fund
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
fund's
name.
The
fund'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
fund
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Asset
class
positioning
was
the
largest
contributor
to
performance
for
the
year
driven
by
an
overweight
to
U.S.
equity
and
underweights
to
fixed
income
and
non-U.S.
equity.
An
overweight
to
the
real
asset
space
contributed
positively
as
the
asset
class
was
the
best
performer
for
the
year.
A
slight
overweight
to
U.S.
smallcap
equity
and
dedicated
high
yield
also
contributed
to
performance
for
the
year.
Active
management
within
the
non-U.S.
equity
asset
class
contributed
for
the
year
as
the
Diversified
International,
Overseas,
and
Origin
Emerging
Markets
investment
options
outperformed
their
respective
indices.
Active
management
within
the
U.S.
mid
and
small
cap
equity
space
contributed
for
the
year
as
all
strategies
posted
strong
performance
relative
to
their
indices.
Active
management
within
the
U.S.
largecap
equity
space
detracted
for
the
year
as
the
LargeCap
Growth
I,
Blue
Chip,
Equity
Income,
and
LargeCap
Value
III
investment
options
lagged
their
indices.
Style
selection
detracted
within
the
U.S.
equity
asset
class
as
the
Russell
indices
underperformed
the
S&P
indices
for
the
year.
Style
selection
detracted
within
non-U.S.
equity
as
the
MSCI
ACWI
ex
U.S.
index
underperformed
the
S&P
developed
index
due
to
its
exposure
to
emerging
markets.
In
the
near
dated
vintages,
an
underweight
to
treasury
inflation-protected
securities
detracted
as
the
asset
class
was
the
best
performer
within
fixed
income.
The
Inflation
Protection
investment
option
also
lagged
its
index
for
the
year.
Manager
performance
of
the
Core
Fixed
Income
investment
option
detracted
for
the
year
as
it
underperformed
its
index.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
12.79%
11.68%
10.25%
8/30/04
25
Principal
LifeTime
2040
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The
fund
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
fund's
name.
The
fund'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
fund
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Asset
class
positioning
was
the
largest
contributor
to
performance
for
the
year
driven
by
an
overweight
to
U.S.
equity
and
underweights
to
fixed
income
and
non-U.S.
equity.
An
overweight
to
the
real
asset
space
contributed
positively
as
the
asset
class
was
the
best
performer
for
the
year.
A
slight
overweight
to
U.S.
smallcap
equity
and
dedicated
high
yield
also
contributed
to
performance
for
the
year.
Active
management
within
the
non-U.S.
equity
asset
class
contributed
for
the
year
as
the
Diversified
International,
Overseas,
and
Origin
Emerging
Markets
investment
options
outperformed
their
respective
indices.
Active
management
within
the
U.S.
mid
and
small
cap
equity
space
contributed
for
the
year
as
all
strategies
posted
strong
performance
relative
to
their
indices.
Active
management
within
the
U.S.
largecap
equity
space
detracted
for
the
year
as
the
LargeCap
Growth
I,
Blue
Chip,
Equity
Income,
and
LargeCap
Value
III
investment
options
lagged
their
indices.
Style
selection
detracted
within
the
U.S.
equity
asset
class
as
the
Russell
indices
underperformed
the
S&P
indices
for
the
year.
Style
selection
detracted
within
non-U.S.
equity
as
the
MSCI
ACWI
ex
U.S.
index
underperformed
the
S&P
developed
index
due
to
its
exposure
to
emerging
markets.
In
the
near
dated
vintages,
an
underweight
to
treasury
inflation-protected
securities
detracted
as
the
asset
class
was
the
best
performer
within
fixed
income.
The
Inflation
Protection
investment
option
also
lagged
its
index
for
the
year.
Manager
performance
of
the
Core
Fixed
Income
investment
option
detracted
for
the
year
as
it
underperformed
its
index.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
15.29%
13.18%
11.41%
8/30/04
26
Principal
LifeTime
2050
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The
fund
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
fund's
name.
The
fund'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
fund
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Asset
class
positioning
was
the
largest
contributor
to
performance
for
the
year
driven
by
an
overweight
to
U.S.
equity
and
underweights
to
fixed
income
and
non-U.S.
equity.
An
overweight
to
the
real
asset
space
contributed
positively
as
the
asset
class
was
the
best
performer
for
the
year.
A
slight
overweight
to
U.S.
smallcap
equity
and
dedicated
high
yield
also
contributed
to
performance
for
the
year.
Active
management
within
the
non-U.S.
equity
asset
class
contributed
for
the
year
as
the
Diversified
International,
Overseas,
and
Origin
Emerging
Markets
investment
options
outperformed
their
respective
indices.
Active
management
within
the
U.S.
mid
and
small
cap
equity
space
contributed
for
the
year
as
all
strategies
posted
strong
performance
relative
to
their
indices.
Active
management
within
the
U.S.
largecap
equity
space
detracted
for
the
year
as
the
LargeCap
Growth
I,
Blue
Chip,
Equity
Income,
and
LargeCap
Value
III
investment
options
lagged
their
indices.
Style
selection
detracted
within
the
U.S.
equity
asset
class
as
the
Russell
indices
underperformed
the
S&P
indices
for
the
year.
Style
selection
detracted
within
non-U.S.
equity
as
the
MSCI
ACWI
ex
U.S.
index
underperformed
the
S&P
developed
index
due
to
its
exposure
to
emerging
markets.
In
the
near
dated
vintages,
an
underweight
to
treasury
inflation-protected
securities
detracted
as
the
asset
class
was
the
best
performer
within
fixed
income.
The
Inflation
Protection
investment
option
also
lagged
its
index
for
the
year.
Manager
performance
of
the
Core
Fixed
Income
investment
option
detracted
for
the
year
as
it
underperformed
its
index.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
17.02%
14.00%
12.00%
8/30/04
27
Principal
LifeTime
2060
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
a
total
return
consisting
of
long-term
growth
of
capital
and
current
income.
The
fund
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
fund's
name.
The
fund'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
fund
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Asset
class
positioning
was
the
largest
contributor
to
performance
for
the
year
driven
by
an
overweight
to
U.S.
equity
and
underweights
to
fixed
income
and
non-U.S.
equity.
An
overweight
to
the
real
asset
space
contributed
positively
as
the
asset
class
was
the
best
performer
for
the
year.
A
slight
overweight
to
U.S.
smallcap
equity
and
dedicated
high
yield
also
contributed
to
performance
for
the
year.
Active
management
within
the
non-U.S.
equity
asset
class
contributed
for
the
year
as
the
Diversified
International,
Overseas,
and
Origin
Emerging
Markets
investment
options
outperformed
their
respective
indices.
Active
management
within
the
U.S.
mid
and
small
cap
equity
space
contributed
for
the
year
as
all
strategies
posted
strong
performance
relative
to
their
indices.
Active
management
within
the
U.S.
largecap
equity
space
detracted
for
the
year
as
the
LargeCap
Growth
I,
Blue
Chip,
Equity
Income,
and
LargeCap
Value
III
investment
options
lagged
their
indices.
Style
selection
detracted
within
the
U.S.
equity
asset
class
as
the
Russell
indices
underperformed
the
S&P
indices
for
the
year.
Style
selection
detracted
within
non-U.S.
equity
as
the
MSCI
ACWI
ex
U.S.
index
underperformed
the
S&P
developed
index
due
to
its
exposure
to
emerging
markets.
In
the
near
dated
vintages,
an
underweight
to
treasury
inflation-protected
securities
detracted
as
the
asset
class
was
the
best
performer
within
fixed
income.
The
Inflation
Protection
investment
option
also
lagged
its
index
for
the
year.
Manager
performance
of
the
Core
Fixed
Income
investment
option
detracted
for
the
year
as
it
underperformed
its
index.
Value
of
a
$10,000
Investment*
May
1,
2013
-
December
31,
2021
1-Year
5-Year
Since
Inception
Inception
Date
Class
1
Shares
17.96%
14.28%
11.13%
5/1/13
28
Principal
LifeTime
Strategic
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
current
income,
and
as
a
secondary
objective,
capital
appreciation.
The fund
invests
according
to
an
asset
allocation
strategy
designed
for
investors
primarily
seeking
current
income
and
secondarily
capital
appreciation.
The
fund's
asset
allocation
is
designed
for
investors
who
are
approximately
15
years
beyond
the
normal
retirement
age
of
65.
The fund
is
a
fund
of
funds
and
invests
in
underlying
funds
of
Principal
Funds,
Inc.
("PFI")
and
of
Principal
Variable
Contracts
Funds,
Inc.
("PVC").
Asset
class
positioning
was
the
largest
contributor
to
performance
for
the
year
driven
by
an
overweight
to
U.S.
equity
and
underweights
to
fixed
income
and
non-U.S.
equity.
An
overweight
to
the
real
asset
space
contributed
positively
as
the
asset
class
was
the
best
performer
for
the
year.
A
slight
overweight
to
U.S.
smallcap
equity
and
dedicated
high
yield
also
contributed
to
performance
for
the
year.
Active
management
within
the
non-U.S.
equity
asset
class
contributed
for
the
year
as
the
Diversified
International,
Overseas,
and
Origin
Emerging
Markets
investment
options
outperformed
their
respective
indices.
Active
management
within
the
U.S.
mid
and
small
cap
equity
space
contributed
for
the
year
as
all
strategies
posted
strong
performance
relative
to
their
indices.
Active
management
within
the
U.S.
largecap
equity
space
detracted
for
the
year
as
the
LargeCap
Growth
I,
Blue
Chip,
Equity
Income,
and
LargeCap
Value
III
investment
options
lagged
their
indices.
Style
selection
detracted
within
the
U.S.
equity
asset
class
as
the
Russell
indices
underperformed
the
S&P
indices
for
the
year.
Style
selection
detracted
within
non-U.S.
equity
as
the
MSCI
ACWI
ex
U.S.
index
underperformed
the
S&P
developed
index
due
to
its
exposure
to
emerging
markets.
In
the
near
dated
vintages,
an
underweight
to
treasury
inflation-protected
securities
detracted
as
the
asset
class
was
the
best
performer
within
fixed
income.
The
Inflation
Protection
investment
option
also
lagged
its
index
for
the
year.
Manager
performance
of
the
Core
Fixed
Income
investment
option
detracted
for
the
year
as
it
underperformed
its
index.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
4.53%
6.47%
5.52%
8/30/04
29
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,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
to
generate
a
total
return.
Under
normal
circumstances,
the fund
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
single
family
rental
stocks
was
a
top
contributor
as
the
structural
growth
sector
has
outperformed
due
to
solid
industry
fundamentals,
such
as
robust
operating
performance,
record
high
occupancy,
and
strong
pricing
power.
An
underweight
to
net
lease
was
a
contributor
as
these
stocks
were
pressured
by
the
risks
of
rising
interest
rates
and
higher
inflation
during
the
reporting
period.
An
underweight
to
data
centers
also
contributed
as
these
stocks
underperformed
due
to
investors
rotating
away
from
defensive
stocks
towards
cyclical
stocks
(particularly
earlier
in
the
reporting
period),
as
well
as
supply
chain
concerns
weighing
on
the
sector’s
performance.
An
underweight
to
both
malls
and
shopping
centers
was
a
top
detractor,
particularly
an
underweight
to
mall
REIT,
Simon
Property
Group.
Retailer
investments
performed
better
than
expected
during
the
year.
The
company’s
guidance
was
raised
above
original
expectations,
which
was
supportive
of
its
outperformance.
Within
apartments,
performance
was
strong
as
fundamentals
continued
improving
through
the
year
with
occupancy
and
pricing
power
back
to
pre-COVID
levels.
However,
our
portfolio’s
overweight
to
coastal
operators
over
Sunbelt
markets
was
detractive
as
the
surge
in
COVID
cases
in
the
second
half
of
the
year
put
pressure
on
coastal
markets.
An
underweight
to
document
storage
company,
Iron
Mountain,
was
also
detractive
as
the
stock
performed
well
from
better
than
expected
earnings
results
driven
by
outsized
growth
in
the
company’s
emerging
data
center
business
and
stable
volumes
in
its
legacy
document
storage
business.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
40.44%
13.24%
12.77%
5/1/98
Class
2
Shares
40.04%
12.95%
12.49%
1/8/07
30
SAM
Balanced
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
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 fund
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.
Relative
to
the
benchmark,
the
fund's
tactical
allocation
of
overweight
to
equity,
underweight
to
fixed
income,
and
overweight
to
alternative
&
specialty
securities
was
the
largest
positive
contributor
to
performance
for
the
period.
The
fund's
allocation
in
U.S.
large
cap
growth
equities,
which
outperformed
their
value
counterparts,
aided
performance
for
the
period.
The
fund's
allocation
to
global
real
estate
securities
positively
contributed
to
performance
for
the
period.
The
fund's
allocation
to
emerging
market
equities,
which
underperformed
their
U.S.
counterparts,
was
the
largest
detractor
to
performance
for
the
period.
Security
selection
in
U.S.
large
cap
growth
equities
hindered
performance
for
the
period.
Security
selection
in
U.S.
large
cap
value
equities
negatively
contributed
to
performance
for
the
period.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
13.74%
10.69%
9.58%
6/3/97
Class
2
Shares
13.39%
10.40%
9.29%
11/6/01
**The
Fund
uses
a
blended
benchmark,
SAM
Balanced
Blended
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
SAM
Balanced
Blended
Index
is
composed
of
45%
Russell
3000®
Index,
40%
Bloomberg
U.S.
Aggregate
Bond
Index,
and
15%
MSCI
EAFE
Index
NTR.
31
SAM
Conservative
Balanced
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
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 fund
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 fund
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.
Relative
to
the
benchmark,
the
fund's
tactical
allocation
of
a
slight
overweight
to
equity,
underweight
to
fixed
income,
and
overweight
to
alternative
&
specialty
securities
was
the
largest
positive
contributor
to
performance
for
the
period.
The
fund's
allocation
to
global
real
estate
securities
aided
performance
for
the
period.
The
fund's
allocation
in
U.S.
large
cap
growth
equities,
which
outperformed
their
value
counterparts,
positively
contributed
to
performance
for
the
period.
The
fund's
allocation
to
emerging
market
equities,
which
underperformed
their
U.S.
counterparts,
was
the
largest
detractor
to
performance
for
the
period.
Security
selection
in
U.S.
large
cap
growth
equities
hindered
performance
for
the
period.
Security
selection
in
U.S.
large
cap
value
equities
negatively
contributed
to
performance
for
the
period.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
9.71%
8.43%
7.62%
4/23/98
Class
2
Shares
9.48%
8.15%
7.35%
11/6/01
**The
Fund
uses
a
blended
benchmark,
SAM
Conservative
Balanced
Blended
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
SAM
Conservative
Balanced
Blended
Index
is
composed
of
60%
Bloomberg
U.S.
Aggregate
Bond
Index,
30%
Russell
3000®
Index,
and
10%
MSCI
EAFE
Index
NTR.
32
SAM
Conservative
Growth
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
capital
appreciation.
The fund
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
fund
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.
Relative
to
the
benchmark,
the
fund's
tactical
allocation
of
overweight
to
equity,
underweight
to
fixed
income,
and
overweight
to
alternative
&
specialty
securities
was
the
largest
positive
contributor
to
performance
for
the
period.
The
fund's
allocation
in
U.S.
large
cap
growth
equities,
which
outperformed
their
value
counterparts,
aided
performance
for
the
period.
The
fund's
allocation
to
global
real
estate
securities
positively
contributed
to
performance
for
the
period.
The
fund's
allocation
to
emerging
market
equities,
which
underperformed
their
U.S.
counterparts,
was
the
largest
detractor
to
performance
for
the
period.
Security
selection
in
U.S.
large
cap
growth
equities
hindered
performance
for
the
period.
Security
selection
in
U.S.
large
cap
value
equities
negatively
contributed
to
performance
for
the
period.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
17.75%
13.04%
11.42%
6/3/97
Class
2
Shares
17.44%
12.75%
11.13%
11/6/01
**The
Fund
uses
a
blended
benchmark,
SAM
Conservative
Growth
Blended
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
SAM
Conservative
Growth
Blended
Index
is
composed
of
60%
Russell
3000®
Index,
20%
Bloomberg
U.S.
Aggregate
Bond
Index,
and
20%
MSCI
EAFE
Index
NTR.
33
SAM
Flexible
Income
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
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 fund
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 fund
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.
The
fund's
allocation
to
global
real
estate
securities
was
the
largest
positive
contributor
to
performance
for
the
period.
The
fund's
allocation
to
U.S.
high
yield
securities,
which
outperformed
core
fixed
income,
aided
performance
for
the
period.
The
fund's
allocation
to
preferred
securities,
which
outperformed
core
fixed
income,
positively
contributed
to
performance
for
the
period.
Security
selection
in
U.S.
large
cap
value
equities
was
the
largest
detractor
to
performance
for
the
period.
The
fund's
allocation
to
emerging
market
equities,
which
underperformed
their
U.S.
counterparts,
hindered
performance
for
the
period.
Security
selection
in
U.S.
large
cap
growth
equities
negatively
contributed
to
performance
for
the
period.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
6.89%
6.65%
6.30%
9/9/97
Class
2
Shares
6.61%
6.39%
6.04%
11/6/01
**The
Fund
uses
a
blended
benchmark,
SAM
Flexible
Income
Blended
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
SAM
Flexible
Income
Blended
Index
is
composed
of
75%
Bloomberg
U.S.
Aggregate
Bond
Index,
20%
Russell
3000®,
and
5%
MSCI
EAFE
Index
NTR.
34
SAM
Strategic
Growth
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
to
provide
long-term
capital
appreciation.
The fund
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 fund
invests
less
than
20%
of
its
assets
in
specialty
funds,
and
less
than
20%
in
any
one
specialty
fund.
Relative
to
the
benchmark,
the
fund's
tactical
allocation
of
neutral
to
equity,
underweight
to
fixed
income,
and
overweight
to
alternative
&
specialty
securities
was
the
largest
positive
contributor
to
performance
for
the
period.
The
fund's
allocation
in
U.S.
large
cap
growth
equities,
which
outperformed
their
value
counterparts,
aided
performance
for
the
period.
The
fund's
allocation
in
U.S.
small
cap
equities,
which
posted
double-digit
returns,
positively
contributed
to
performance
for
the
period.
Security
selection
in
U.S.
large
cap
growth
equities
was
the
largest
detractor
to
performance
for
the
period.
The
fund's
allocation
to
emerging
market
equities,
which
underperformed
their
U.S.
counterparts,
hindered
performance
for
the
period.
Security
selection
in
U.S.
large
cap
value
equities
negatively
contributed
to
performance
for
the
period.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
19.86%
14.51%
12.64%
6/3/97
Class
2
Shares
19.54%
14.23%
12.36%
11/6/01
**The
Fund
uses
a
blended
benchmark,
SAM
Strategic
Growth
Blended
Index,
which
shows
how
the
Fund’s
performance
compares
to
a
blend
of
indices
with
similar
investment
objectives.
SAM
Strategic
Growth
Blended
Index
is
composed
of
70%
Russell
3000®
Index,
25%
MSCI
EAFE
Index
NTR,
and
5%
Bloomberg
U.S.
Aggregate
Bond
Index.
35
Short-Term
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
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 fund
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.
During
the
past
year
issue
selection
in
communications,
energy,
and
consumer
non-cyclical
were
the
top
contributors
to
performance.
This
was
followed
by
an
out
of
benchmark
allocation
to
student
loan
asset-backed
securities,
and
issue
selection
in
technology
which
also
contributed
to
performance.
The
bottom
contributors
to
performance
were
out
of
benchmark
allocations
to
agency
commercial
mortgage-backed
securities,
treasurys,
auto
backed
asset-backed
securities,
and
non-agency
commercial
mortgage-backed
securities.
An
underweight
to
finance
companies
also
detracted
from
performance.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
-0.72%
2.13%
2.13%
1/12/94
36
SmallCap
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2021
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
Under
normal
circumstances,
the fund
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
fund,
companies
with
small
market
capitalizations
are
those
with
market
capitalizations
within
the
range
of
companies
comprising
the
Russell
2000®
Index.
Top
contributors
during
the
year
included
SiTime,
a
provider
of
silicone-based
timing
devices,
which
benefitted
from
market
share
gains
and
improved
pricing
related
to
their
ability
to
provide
an
uninterrupted
supply
of
its
silicon-based
timing
devices
compared
to
competitors’
quartz-based
timing
devices
that
have
encountered
supply
constraints.
Atkore,
a
manufacturer
of
electrical
products,
reported
better-than-
expected
quarterly
earnings
and
raised
guidance
amid
strong
pricing
and
volume
growth
across
most
product
categories.
Sprout
Social,
a
software
platform
that
enables
companies
to
efficiently
manage
their
social
media
presence,
performed
well
amid
the
broadening
of
customer
use
cases
beyond
social
media
management
and
into
marketing,
sales,
customer
service,
product
development
and
e-commerce.
Beauty
Health,
an
aesthetics-focused
organization
led
by
its
flagship
offering
HydraFacial,
outperformed
following
better-than-expected
global
demand
for
its
service,
despite
ongoing
regional
pressures
from
COVID.
Bed
Bath
&
Beyond,
a
home
goods
retailer,
outperformed
amid
investor
interest
in
companies
with
high
short
interest
and
depressed
valuations.
Top
detractors
during
the
year
included
Vroom,
an
e-commerce
platform
for
buying
and
selling
used
cars,
reported
disappointing
quarterly
results
and
near-term
outlook
amid
volatile
used
car
market
dynamics,
operational
bottlenecks,
and
heightened
investment
spending.
Denali
Therapeutics,
a
biotechnology
company
focused
on
developing
therapies
for
neurodegenerative
diseases,
underperformed
after
significant
strength
in
2020
amid
a
lack
of
value
creating
catalysts
in
the
near
term.
Nevro,
a
medical
diagnostics
focused
company
specializing
in
spinal
cord
stimulation
treatments
for
various
types
of
pain,
underperformed
amid
disappointing
results
as
COVID
related
headwinds
continued
to
weigh
on
timing
of
patient
and
physician
decision
making
and
trialing
utilization.
Array
Technologies,
a
leading
manufacturer
of
ground
mounting
equipment
for
large
scale
solar
energy
projects,
sharply
underperformed
following
management’s
suspension
of
guidance
given
the
steep
rise
in
steel
prices.
The
company
is
unable
to
fully
pass
through
these
rising
prices
under
existing
contracts.
Iovance,
a
biotechnology
company
developing
innovative
Tumor
Infiltrating
Lymphocyte
treatments
for
various
cancer
indications,
underperformed
after
significant
strength
in
2020
and
sustained
uncertainty
regarding
alignment
with
FDA
on
the
potency
assay,
a
gating
factor
to
filing
for
commercial
approval.
Value
of
a
$10,000
Investment*
December
31,
2011
-
December
31,
2021
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date***
Class
1
Shares
20.12%
13.47%
14.65%
5/1/98
–
Class
2
Shares
19.86%
13.18%
14.37%
2/17/15
5/1/98
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’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,
2021
37
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
..........................................................
$
12,008
$
2,795,558
$
236,927
Investment
in
affiliated
securities--at
cost
................................................
$
30
$
285,079
$
11,178
Assets
Investment
in
securities--at
value
..........................................................
$
13,490
$
2,862,916
(a)
$
240,910
(a)
Investment
in
affiliated
securities--at
value
.................................................
30
285,079
11,178
Cash
.........................................................................................
–
–
22
Deposits
with
counterparty
..................................................................
–
–
9
Receivables:
Dividends
and
interest
.................................................................
3
12,931
1,509
Expense
reimbursement
from
Manager
...............................................
2
–
–
Fund
shares
sold
.......................................................................
19
838
1,386
Investment
securities
sold
.............................................................
–
24,588
1,330
Variation
margin
on
futures
...........................................................
–
–
5
Prepaid
expenses
............................................................................
–
–
3
Total
Assets
13,544
3,186,352
256,352
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
8
348
93
Accrued
distribution
fees
....................................................................
3
–
–
Accrued
service
fees
........................................................................
2
–
–
Accrued
chief
compliance
officer
fees
......................................................
–
1
–
Accrued
directors'
expenses
.................................................................
–
12
–
Accrued
professional
fees
...................................................................
5
–
–
Accrued
other
expenses
.....................................................................
1
13
–
Payables:
Fund
shares
redeemed
.................................................................
8
7,891
55
Investment
securities
purchased
......................................................
2
265,210
19,677
Variation
margin
on
futures
...........................................................
–
–
2
Variation
margin
on
swaps
............................................................
–
–
1
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
12,269
142
Total
Liabilities
29
285,744
19,970
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
13,515
$
2,900,608
$
236,382
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
12,020
$
2,780,575
$
224,852
Total
distributable
earnings
(accumulated
loss)
.............................................
1,495
120,033
11,530
Total
Net
Assets
$
13,515
$
2,900,608
$
236,382
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
$
2,900,608
$
236,382
Shares
issued
and
outstanding
........................................................
269,547
20,595
Net
Asset
Value
per
share
.............................................................
$
10.76
$
11.48
Class
3
:
Net
Assets
..........................................................................
$
13,515
N/A
N/A
Shares
issued
and
outstanding
........................................................
1,055
Net
Asset
Value
per
share
.............................................................
$
12.81
(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,
2021
38
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
..........................................................
$
–
$
–
$
30,788
Investment
in
affiliated
securities--at
cost
................................................
$
696,618
$
147,727
$
180,569
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
–
$
32,548
Investment
in
affiliated
securities--at
value
.................................................
1,005,498
184,122
197,363
Receivables:
Fund
shares
sold
.......................................................................
23
254
–
Investment
securities
sold
.............................................................
2,142
–
147
Total
Assets
1,007,663
184,376
230,058
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
42
8
23
Accrued
distribution
fees
....................................................................
204
39
48
Accrued
directors'
expenses
.................................................................
4
1
1
Accrued
other
expenses
.....................................................................
4
3
4
Payables:
Fund
shares
redeemed
.................................................................
2,165
76
184
Investment
securities
purchased
......................................................
–
178
–
Total
Liabilities
2,419
305
260
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
1,005,244
$
184,071
$
229,798
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
604,956
$
131,884
$
195,238
Total
distributable
earnings
(accumulated
loss)
.............................................
400,288
52,187
34,560
Total
Net
Assets
$
1,005,244
$
184,071
$
229,798
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
650,000
400,000
400,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
41,982
N/A
N/A
Shares
issued
and
outstanding
........................................................
2,318
Net
Asset
Value
per
share
.............................................................
$
18.11
Class
2
:
Net
Assets
..........................................................................
$
962,935
$
184,060
$
229,787
Shares
issued
and
outstanding
........................................................
53,065
12,754
17,320
Net
Asset
Value
per
share
.............................................................
$
18.15
$
14.43
$
13.27
Class
3
:
Net
Assets
..........................................................................
$
327
$
11
$
11
Shares
issued
and
outstanding
........................................................
18
1
1
Net
Asset
Value
per
share
.............................................................
$
18.04
$
14.38
$
13.23
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
39
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
..........................................................
$
–
$
–
$
154,306
Investment
in
affiliated
securities--at
cost
................................................
$
2,596,865
$
295,993
$
986,978
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
–
$
157,774
Investment
in
affiliated
securities--at
value
.................................................
3,975,483
389,028
1,120,697
Receivables:
Dividends
and
interest
.................................................................
1
–
–
Investment
securities
sold
.............................................................
12,879
1,622
3,713
Total
Assets
3,988,363
390,650
1,282,184
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
168
16
128
Accrued
distribution
fees
....................................................................
839
83
267
Accrued
directors'
expenses
.................................................................
16
1
4
Accrued
other
expenses
.....................................................................
5
4
4
Payables:
Fund
shares
redeemed
.................................................................
12,879
1,622
4,641
Total
Liabilities
13,907
1,726
5,044
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
3,974,456
$
388,924
$
1,277,140
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
2,238,662
$
260,299
$
1,040,149
Total
distributable
earnings
(accumulated
loss)
.............................................
1,735,794
128,625
236,991
Total
Net
Assets
$
3,974,456
$
388,924
$
1,277,140
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
500,000
400,000
400,000
Net
Asset
Value
Per
Share:
Class
2
:
Net
Assets
..........................................................................
$
3,974,179
$
388,912
$
1,277,128
Shares
issued
and
outstanding
........................................................
183,288
24,840
90,777
Net
Asset
Value
per
share
.............................................................
$
21.68
$
15.66
$
14.07
Class
3
:
Net
Assets
..........................................................................
$
277
$
12
$
12
Shares
issued
and
outstanding
........................................................
13
1
1
Net
Asset
Value
per
share
.............................................................
$
21.60
$
15.59
$
14.03
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
40
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Diversified
Income
Account
Diversified
International
Account
Equity
Income
Account
Investment
in
securities--at
cost
..........................................................
$
–
$
217,803
$
340,220
Investment
in
affiliated
securities--at
cost
................................................
$
267,185
$
115
$
11,037
Foreign
currency--at
cost
..................................................................
$
–
$
8
$
–
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
300,482
(a)
$
745,531
(a)
Investment
in
affiliated
securities--at
value
.................................................
326,851
115
11,037
Foreign
currency--at
value
..................................................................
–
8
–
Cash
.........................................................................................
–
–
38
Receivables:
Dividends
and
interest
.................................................................
–
767
1,478
Fund
shares
sold
.......................................................................
1,165
281
329
Total
Assets
328,016
301,653
758,413
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
14
211
296
Accrued
distribution
fees
....................................................................
69
–
11
Accrued
directors'
expenses
.................................................................
1
1
3
Accrued
foreign
tax
.........................................................................
–
259
–
Accrued
other
expenses
.....................................................................
3
24
22
Payables:
Fund
shares
redeemed
.................................................................
13
94
2,562
Investment
securities
purchased
......................................................
1,152
–
–
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
1,638
23
Total
Liabilities
1,252
2,227
2,917
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
326,764
$
299,426
$
755,496
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
247,445
$
191,424
$
256,072
Total
distributable
earnings
(accumulated
loss)
.............................................
79,319
108,002
499,424
Total
Net
Assets
$
326,764
$
299,426
$
755,496
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
$
299,426
$
701,625
Shares
issued
and
outstanding
........................................................
15,622
20,487
Net
Asset
Value
per
share
.............................................................
$
19.17
$
34.25
Class
2
:
Net
Assets
..........................................................................
$
325,983
N/A
$
53,723
Shares
issued
and
outstanding
........................................................
21,435
1,586
Net
Asset
Value
per
share
.............................................................
$
15.21
$
33.87
Class
3
:
Net
Assets
..........................................................................
$
781
N/A
$
148
Shares
issued
and
outstanding
........................................................
52
4
Net
Asset
Value
per
share
.............................................................
$
15.15
$
34.10
(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,
2021
41
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
..........................................................
$
236,911
$
70,576
$
385,750
Investment
in
affiliated
securities--at
cost
................................................
$
17,990
$
1,835
$
14,583
Foreign
currency--at
cost
..................................................................
$
–
$
372
$
–
Assets
Investment
in
securities--at
value
..........................................................
$
236,264
$
89,406
(a)
$
697,976
(a)
Investment
in
affiliated
securities--at
value
.................................................
17,990
1,835
14,583
Foreign
currency--at
value
..................................................................
–
374
–
Cash
.........................................................................................
2
–
–
Deposits
with
counterparty
..................................................................
164
–
265
Receivables:
Dividends
and
interest
.................................................................
467
159
76
Expense
reimbursement
from
Manager
...............................................
–
–
10
Fund
shares
sold
.......................................................................
467
51
481
Investment
securities
sold
.............................................................
4,089
1
404
Variation
margin
on
futures
...........................................................
18
–
–
Total
Assets
259,461
91,826
713,795
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
80
84
399
Accrued
directors'
expenses
.................................................................
1
–
2
Accrued
foreign
tax
.........................................................................
–
463
–
Accrued
other
expenses
.....................................................................
6
7
3
Payables:
Fund
shares
redeemed
.................................................................
53
82
197
Investment
securities
purchased
......................................................
61,538
–
328
Variation
margin
on
futures
...........................................................
6
–
16
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
375
6,194
Total
Liabilities
61,684
1,011
7,139
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
197,777
$
90,815
$
706,656
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
205,771
$
64,108
$
335,996
Total
distributable
earnings
(accumulated
loss)
.............................................
(
7,994
)
26,707
370,660
Total
Net
Assets
$
197,777
$
90,815
$
706,656
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
197,777
$
90,815
$
706,656
Shares
issued
and
outstanding
........................................................
20,862
4,617
13,464
Net
Asset
Value
per
share
.............................................................
$
9.48
$
19.67
$
52.48
(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,
2021
42
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
..........................................................
$
1,440,422
$
109,663
$
391,756
Investment
in
affiliated
securities--at
cost
................................................
$
91,329
$
16,905
$
1,988
Assets
Investment
in
securities--at
value
..........................................................
$
3,124,035
$
224,059
$
750,355
Investment
in
affiliated
securities--at
value
.................................................
91,329
16,905
1,988
Cash
.........................................................................................
19
1
121
Receivables:
Dividends
and
interest
.................................................................
1,889
136
78
Fund
shares
sold
.......................................................................
993
62
42
Total
Assets
3,218,265
241,163
752,584
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
671
90
317
Accrued
distribution
fees
....................................................................
9
–
8
Accrued
directors'
expenses
.................................................................
12
1
3
Accrued
other
expenses
.....................................................................
15
8
4
Payables:
Fund
shares
redeemed
.................................................................
8,046
730
1,108
Investment
securities
purchased
......................................................
–
–
1,245
Options
and
swaptions
contracts
written
(premiums
received
$0,
$1,
782
and
$0
)
...
–
421
–
Variation
margin
on
futures
...........................................................
263
18
–
Total
Liabilities
9,016
1,268
2,685
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
3,209,249
$
239,895
$
749,899
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
1,212,893
$
117,403
$
327,288
Total
distributable
earnings
(accumulated
loss)
.............................................
1,996,356
122,492
422,611
Total
Net
Assets
$
3,209,249
$
239,895
$
749,899
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
300,000
100,000
105,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
3,162,615
$
239,895
$
711,126
Shares
issued
and
outstanding
........................................................
123,878
12,719
9,512
Net
Asset
Value
per
share
.............................................................
$
25.53
$
18.86
$
74.76
Class
2
:
Net
Assets
..........................................................................
$
46,634
N/A
$
38,773
Shares
issued
and
outstanding
........................................................
1,856
525
Net
Asset
Value
per
share
.............................................................
$
25.13
$
73.89
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
43
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
..........................................................
$
83,869
$
–
$
–
Investment
in
affiliated
securities--at
cost
................................................
$
1,996
$
34,231
$
170,058
Assets
Investment
in
securities--at
value
..........................................................
$
193,372
$
–
$
–
Investment
in
affiliated
securities--at
value
.................................................
1,996
37,301
196,338
Receivables:
Dividends
and
interest
.................................................................
131
31
144
Fund
shares
sold
.......................................................................
48
27
54
Investment
securities
sold
.............................................................
–
148
247
Total
Assets
195,547
37,507
196,783
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
102
–
–
Accrued
distribution
fees
....................................................................
7
–
–
Accrued
directors'
expenses
.................................................................
1
–
1
Accrued
other
expenses
.....................................................................
5
3
4
Payables:
Fund
shares
redeemed
.................................................................
1,185
175
300
Investment
securities
purchased
......................................................
–
32
144
Total
Liabilities
1,300
210
449
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
194,247
$
37,297
$
196,334
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
64,802
$
31,813
$
153,584
Total
distributable
earnings
(accumulated
loss)
.............................................
129,445
5,484
42,750
Total
Net
Assets
$
194,247
$
37,297
$
196,334
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
100,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
163,159
$
37,297
$
196,334
Shares
issued
and
outstanding
........................................................
3,896
2,782
12,926
Net
Asset
Value
per
share
.............................................................
$
41.87
$
13.41
$
15.19
Class
2
:
Net
Assets
..........................................................................
$
31,088
N/A
N/A
Shares
issued
and
outstanding
........................................................
754
Net
Asset
Value
per
share
.............................................................
$
41.19
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
44
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
................................................
$
220,871
$
110,727
$
56,505
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
262,869
$
134,176
$
68,531
Receivables:
Dividends
and
interest
.................................................................
159
33
2
Fund
shares
sold
.......................................................................
360
49
124
Investment
securities
sold
.............................................................
–
418
–
Total
Assets
263,388
134,676
68,657
Liabilities
Accrued
directors'
expenses
.................................................................
1
–
–
Accrued
other
expenses
.....................................................................
4
4
4
Payables:
Fund
shares
redeemed
.................................................................
217
468
2
Investment
securities
purchased
......................................................
302
32
124
Total
Liabilities
524
504
130
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
262,864
$
134,172
$
68,527
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
198,371
$
98,521
$
49,753
Total
distributable
earnings
(accumulated
loss)
.............................................
64,493
35,651
18,774
Total
Net
Assets
$
262,864
$
134,172
$
68,527
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
262,864
$
134,172
$
68,527
Shares
issued
and
outstanding
........................................................
16,848
6,729
3,496
Net
Asset
Value
per
share
.............................................................
$
15.60
$
19.94
$
19.60
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
45
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
..........................................................
$
–
$
–
$
119,513
Investment
in
affiliated
securities--at
cost
................................................
$
14,723
$
28,163
$
2,129
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
–
$
184,152
Investment
in
affiliated
securities--at
value
.................................................
17,284
30,133
2,129
Receivables:
Dividends
and
interest
.................................................................
–
26
620
Fund
shares
sold
.......................................................................
10
15
29
Investment
securities
sold
.............................................................
85
6
–
Total
Assets
17,379
30,180
186,930
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
–
–
123
Accrued
distribution
fees
....................................................................
–
–
2
Accrued
professional
fees
...................................................................
–
4
–
Accrued
other
expenses
.....................................................................
3
–
4
Payables:
Fund
shares
redeemed
.................................................................
95
21
136
Investment
securities
purchased
......................................................
1
26
93
Total
Liabilities
99
51
358
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
17,280
$
30,129
$
186,572
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
13,143
$
26,172
$
109,594
Total
distributable
earnings
(accumulated
loss)
.............................................
4,137
3,957
76,978
Total
Net
Assets
$
17,280
$
30,129
$
186,572
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
100,000
100,000
300,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
17,280
$
30,129
$
174,922
Shares
issued
and
outstanding
........................................................
919
2,387
7,048
Net
Asset
Value
per
share
.............................................................
$
18.81
$
12.62
$
24.82
Class
2
:
Net
Assets
..........................................................................
N/A
N/A
$
11,650
Shares
issued
and
outstanding
........................................................
469
Net
Asset
Value
per
share
.............................................................
$
24.86
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
46
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
................................................
$
575,740
$
171,766
$
317,495
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
744,468
$
203,593
$
434,457
Receivables:
Dividends
and
interest
.................................................................
921
238
542
Fund
shares
sold
.......................................................................
116
167
129
Investment
securities
sold
.............................................................
400
–
198
Total
Assets
745,905
203,998
435,326
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
141
39
82
Accrued
distribution
fees
....................................................................
33
7
40
Accrued
directors'
expenses
.................................................................
3
1
1
Accrued
other
expenses
.....................................................................
4
4
4
Payables:
Fund
shares
redeemed
.................................................................
516
127
327
Investment
securities
purchased
......................................................
264
164
45
Total
Liabilities
961
342
499
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
744,944
$
203,656
$
434,827
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
481,626
$
152,269
$
271,292
Total
distributable
earnings
(accumulated
loss)
.............................................
263,318
51,387
163,535
Total
Net
Assets
$
744,944
$
203,656
$
434,827
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
300,000
200,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
588,703
$
169,338
$
242,713
Shares
issued
and
outstanding
........................................................
32,514
12,442
9,780
Net
Asset
Value
per
share
.............................................................
$
18.11
$
13.61
$
24.82
Class
2
:
Net
Assets
..........................................................................
$
156,241
$
34,318
$
192,114
Shares
issued
and
outstanding
........................................................
8,756
2,561
7,877
Net
Asset
Value
per
share
.............................................................
$
17.84
$
13.40
$
24.39
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
47
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
..........................................................
$
–
$
–
$
136,768
Investment
in
affiliated
securities--at
cost
................................................
$
177,905
$
320,211
$
1,991
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
–
$
136,808
(a)
Investment
in
affiliated
securities--at
value
.................................................
193,752
428,639
1,991
Deposits
with
counterparty
..................................................................
–
–
14
Receivables:
Dividends
and
interest
.................................................................
247
436
438
Fund
shares
sold
.......................................................................
432
112
1,898
Investment
securities
sold
.............................................................
–
66
–
Total
Assets
194,431
429,253
141,149
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
37
80
53
Accrued
distribution
fees
....................................................................
9
43
–
Accrued
directors'
expenses
.................................................................
1
1
1
Accrued
other
expenses
.....................................................................
4
4
7
Payables:
Fund
shares
redeemed
.................................................................
13
178
8
Investment
securities
purchased
......................................................
515
–
250
Variation
margin
on
futures
...........................................................
–
–
1
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
–
297
Total
Liabilities
579
306
617
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
193,852
$
428,947
$
140,532
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
162,054
$
276,654
$
138,688
Total
distributable
earnings
(accumulated
loss)
.............................................
31,798
152,293
1,844
Total
Net
Assets
$
193,852
$
428,947
$
140,532
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
400,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
148,266
$
223,578
$
140,532
Shares
issued
and
outstanding
........................................................
11,261
7,960
55,481
Net
Asset
Value
per
share
.............................................................
$
13.17
$
28.09
$
2.53
Class
2
:
Net
Assets
..........................................................................
$
45,586
$
205,369
N/A
Shares
issued
and
outstanding
........................................................
3,507
7,435
Net
Asset
Value
per
share
.............................................................
$
13.00
$
27.62
(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,
2021
48
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SmallCap
Account
Investment
in
securities--at
cost
......................................................................................................................
$
164,697
Investment
in
affiliated
securities--at
cost
............................................................................................................
$
7,998
Assets
Investment
in
securities--at
value
......................................................................................................................
$
223,655
(a)
Investment
in
affiliated
securities--at
value
.............................................................................................................
7,998
Cash
.....................................................................................................................................................
16
Receivables:
Dividends
and
interest
.............................................................................................................................
142
Fund
shares
sold
...................................................................................................................................
367
Unrealized
gain
on
unfunded
commitments
......................................................................................................
75
Total
Assets
232,253
Liabilities
Accrued
management
and
investment
advisory
fees
....................................................................................................
153
Accrued
distribution
fees
................................................................................................................................
2
Accrued
directors'
expenses
.............................................................................................................................
1
Accrued
other
expenses
.................................................................................................................................
4
Payables:
Fund
shares
redeemed
.............................................................................................................................
66
Collateral
obligation
on
securities
loaned,
at
value
.....................................................................................................
7,640
Total
Liabilities
7,866
Net
Assets
Applicable
to
Outstanding
Shares
........................................................................................................
$
224,387
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...........................................................................................................
$
133,694
Total
distributable
earnings
(accumulated
loss)
.........................................................................................................
90,693
Total
Net
Assets
$
224,387
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
........................................................................................................................................
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
......................................................................................................................................
$
213,890
Shares
issued
and
outstanding
....................................................................................................................
10,667
Net
Asset
Value
per
share
.........................................................................................................................
$
20.05
Class
2
:
Net
Assets
......................................................................................................................................
$
10,497
Shares
issued
and
outstanding
....................................................................................................................
527
Net
Asset
Value
per
share
.........................................................................................................................
$
19.93
(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,
2021
49
See
accompanying
notes.
Amounts
in
thousands
Blue
Chip
Account
Bond
Market
Index
Account
Core
Plus
Bond
Account
Net
Investment
Income
(Loss)
Income:
Dividends
......................................................................................
$
34
$
473
$
374
Withholding
tax
...............................................................................
(1
)
–
–
Interest
.........................................................................................
–
48,667
5,787
Securities
lending
-
net
........................................................................
–
100
98
Total
Income
33
49,240
6,259
Expenses:
Management
and
investment
advisory
fees
...................................................
47
3,993
1,117
Distribution
fees
-
Class
3
.....................................................................
20
N/A
N/A
Administration
service
fees
-
Class
3
.........................................................
12
N/A
N/A
Chief
compliance
officer
expenses
............................................................
–
3
–
Custodian
fees
.................................................................................
3
36
18
Directors'
expenses
............................................................................
2
57
7
Professional fees
..............................................................................
8
4
4
Other
expenses
................................................................................
–
12
2
Total
Gross
Expenses
92
4,105
1,148
Less:
Reimbursement
from
Manager
-
Class
3
...............................................
10
N/A
N/A
Total
Net
Expenses
82
4,105
1,148
Net
Investment
Income
(Loss)
(49
)
45,135
5,111
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
swap
agreements
Net
realized
gain
(loss)
from:
Investment
transactions
.......................................................................
152
10,041
3,292
Futures
contracts
..............................................................................
–
–
64
Swap
agreements
..............................................................................
–
–
3
Change
in
unrealized
appreciation/depreciation
of:
Investments
....................................................................................
1,312
(104,415
)
(9,785
)
Futures
contracts
..............................................................................
–
–
19
Swap
agreements
..............................................................................
–
–
(6
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
swap
agreements
1,464
(94,374
)
(6,413
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
1,415
$
(49,239
)
$
(1,302
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2021
50
See
accompanying
notes.
Amounts
in
thousands
Diversified
Balanced
Account
Diversified
Balanced
Managed
Volatility
Account
Diversified
Balanced
Volatility
Control
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
20,672
$
4,731
$
3,782
Dividends
..................................................................................
–
–
482
Total
Income
20,672
4,731
4,264
Expenses:
Management
and
investment
advisory
fees
...............................................
509
93
250
Distribution
fees
-
Class
2
.................................................................
2,443
465
521
Distribution
fees
-
Class
3
.................................................................
–
–
–
Administration
service
fees
-
Class
3
.....................................................
–
–
–
Chief
compliance
officer
expenses
........................................................
1
–
–
Custodian
fees
.............................................................................
–
–
1
Directors'
expenses
........................................................................
22
6
6
Professional fees
..........................................................................
3
3
3
Other
expenses
............................................................................
4
1
1
Total
Expenses
2,982
568
782
Net
Investment
Income
(Loss)
17,690
4,163
3,482
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
6
–
8,451
Investment
transactions
in
affiliated
securities
............................................
48,810
5,209
345
Capital
gain
distribution
received
from
affiliated
securities
..............................
34,302
6,482
4,016
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
–
408
Investments
in
affiliated
securities
........................................................
3,843
1,776
3,201
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
86,961
13,467
16,421
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
104,651
$
17,630
$
19,903
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2021
51
See
accompanying
notes.
Amounts
in
thousands
Diversified
Growth
Account
Diversified
Growth
Managed
Volatility
Account
Diversified
Growth
Volatility
Control
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
80,724
$
10,497
$
21,011
Dividends
..................................................................................
–
–
2,513
Interest
.....................................................................................
–
–
2
Total
Income
80,724
10,497
23,526
Expenses:
Management
and
investment
advisory
fees
...............................................
1,974
195
1,369
Distribution
fees
-
Class
2
.................................................................
9,868
973
2,852
Distribution
fees
-
Class
3
.................................................................
–
–
–
Administration
service
fees
-
Class
3
.....................................................
–
–
–
Chief
compliance
officer
expenses
........................................................
4
–
1
Custodian
fees
.............................................................................
–
–
1
Directors'
expenses
........................................................................
75
10
21
Professional fees
..........................................................................
2
3
3
Other
expenses
............................................................................
16
2
6
Total
Expenses
11,939
1,183
4,253
Net
Investment
Income
(Loss)
68,785
9,314
19,273
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
–
47,825
Investment
transactions
in
affiliated
securities
............................................
145,745
11,496
1,286
Capital
gain
distribution
received
from
affiliated
securities
..............................
170,784
17,342
33,457
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
–
(
1,384
)
Investments
in
affiliated
securities
........................................................
157,988
11,557
45,676
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
474,517
40,395
126,860
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
543,302
$
49,709
$
146,133
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2021
52
See
accompanying
notes.
Amounts
in
thousands
Diversified
Income
Account
Diversified
International
Account
Equity
Income
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
6,770
$
–
$
–
Dividends
..................................................................................
–
7,960
17,140
Withholding
tax
...........................................................................
–
(
773
)
(
480
)
Interest
.....................................................................................
–
–
1
Securities
lending
-
net
....................................................................
–
33
52
Total
Income
6,770
7,220
16,713
Expenses:
Management
and
investment
advisory
fees
...............................................
165
2,546
3,535
Distribution
fees
-
Class
2
.................................................................
824
N/A
108
Distribution
fees
-
Class
3
.................................................................
1
N/A
–
Administration
service
fees
-
Class
3
.....................................................
1
N/A
–
Chief
compliance
officer
expenses
........................................................
–
–
1
Custodian
fees
.............................................................................
–
120
15
Directors'
expenses
........................................................................
9
7
15
Professional fees
..........................................................................
2
20
2
Other
expenses
............................................................................
1
23
3
Total
Expenses
1,003
2,716
3,679
Net
Investment
Income
(Loss)
5,767
4,504
13,034
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
foreign
currencies
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
26,320
89,817
Investment
transactions
in
affiliated
securities
............................................
5,931
–
–
Foreign
currency
transactions
.............................................................
–
(
172
)
–
Capital
gain
distribution
received
from
affiliated
securities
..............................
8,141
–
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
(net
of
foreign
taxes
of
$
0
,
$
259
and
$
0
,
respectively)
......................
–
(
2,843
)
53,748
Investments
in
affiliated
securities
........................................................
2,165
–
–
Translation
of
assets
and
liabilities
in
foreign
currencies
.................................
–
(
21
)
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
foreign
currencies
16,237
23,284
143,565
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
22,004
$
27,788
$
156,599
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2021
53
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
..................................................................................
$
–
$
2,362
$
2,683
Withholding
tax
...........................................................................
–
(
239
)
(
22
)
Interest
.....................................................................................
1,794
–
–
Securities
lending
-
net
....................................................................
–
3
22
Total
Income
1,794
2,126
2,683
Expenses:
Management
and
investment
advisory
fees
...............................................
977
1,069
4,507
Chief
compliance
officer
expenses
........................................................
–
–
1
Custodian
fees
.............................................................................
5
57
16
Directors'
expenses
........................................................................
6
4
14
Professional fees
..........................................................................
4
12
2
Other
expenses
............................................................................
1
–
3
Total
Gross
Expenses
993
1,142
4,543
Less:
Reimbursement
from
Manager
.....................................................
–
–
107
Total
Net
Expenses
993
1,142
4,436
Net
Investment
Income
(Loss)
801
984
(
1,753
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
173
7,114
69,844
Foreign
currency
transactions
.............................................................
–
(
106
)
–
Futures
contracts
..........................................................................
660
–
853
Change
in
unrealized
appreciation/depreciation
of:
Investments
(net
of
foreign
taxes
of
$
0
,
$
463
and
$
0
,
respectively)
......................
(
4,227
)
(
7,255
)
61,829
Futures
contracts
..........................................................................
27
–
52
Translation
of
assets
and
liabilities
in
foreign
currencies
.................................
–
10
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
(
3,367
)
(
237
)
132,578
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
(
2,566
)
$
747
$
130,825
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2021
54
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
..................................................................................
$
42,218
$
3,138
$
3,650
Withholding
tax
...........................................................................
(
6
)
–
(
139
)
Interest
.....................................................................................
2
–
–
Securities
lending
-
net
....................................................................
20
1
1
Total
Income
42,234
3,139
3,512
Expenses:
Management
and
investment
advisory
fees
...............................................
7,719
1,085
3,532
Distribution
fees
-
Class
2
.................................................................
94
N/A
78
Chief
compliance
officer
expenses
........................................................
3
–
1
Custodian
fees
.............................................................................
14
14
4
Directors'
expenses
........................................................................
58
7
14
Professional fees
..........................................................................
2
2
1
Other
expenses
............................................................................
45
3
3
Total
Expenses
7,935
1,111
3,633
Net
Investment
Income
(Loss)
34,299
2,028
(
121
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
options
and
swaptions
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
336,996
20,105
70,194
Futures
contracts
..........................................................................
9,852
835
–
Options
and
swaptions
....................................................................
–
5,971
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
388,017
25,180
83,393
Futures
contracts
..........................................................................
1,798
122
–
Options
and
swaptions
....................................................................
–
804
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
options
and
swaptions
736,663
53,017
153,587
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
770,962
$
55,045
$
153,466
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2021
55
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
.......................................................
$
–
$
1,027
$
5,380
Dividends
..................................................................................
2,465
–
–
Withholding
tax
...........................................................................
(
19
)
–
–
Total
Income
2,446
1,027
5,380
Expenses:
Management
and
investment
advisory
fees
...............................................
1,124
–
–
Distribution
fees
-
Class
2
.................................................................
62
N/A
N/A
Custodian
fees
.............................................................................
4
–
–
Directors'
expenses
........................................................................
6
3
6
Professional fees
..........................................................................
1
2
3
Other
expenses
............................................................................
1
–
–
Total
Expenses
1,198
5
9
Net
Investment
Income
(Loss)
1,248
1,022
5,371
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
foreign
currencies
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
21,704
–
–
Investment
transactions
in
affiliated
securities
............................................
–
510
5,253
Foreign
currency
transactions
.............................................................
(
4
)
–
–
Capital
gain
distribution
received
from
affiliated
securities
..............................
–
931
6,200
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
21,069
–
–
Investments
in
affiliated
securities
........................................................
–
(
386
)
442
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
foreign
currencies
42,769
1,055
11,895
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
44,017
$
2,077
$
17,266
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2021
56
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
.......................................................
$
6,909
$
3,946
$
2,080
Total
Income
6,909
3,946
2,080
Expenses:
Directors'
expenses
........................................................................
7
5
3
Professional fees
..........................................................................
4
2
2
Total
Expenses
11
7
5
Net
Investment
Income
(Loss)
6,898
3,939
2,075
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
in
affiliated
securities
............................................
5,309
769
287
Capital
gain
distribution
received
from
affiliated
securities
..............................
10,676
7,582
4,435
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
6,546
4,896
2,429
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
22,531
13,247
7,151
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
29,429
$
17,186
$
9,226
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2021
57
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
.......................................................
$
504
$
883
$
–
Dividends
..................................................................................
–
–
3,300
Total
Income
504
883
3,300
Expenses:
Management
and
investment
advisory
fees
...............................................
–
–
1,296
Distribution
fees
-
Class
2
.................................................................
N/A
N/A
22
Custodian
fees
.............................................................................
–
–
3
Directors'
expenses
........................................................................
3
3
5
Professional fees
..........................................................................
2
2
1
Other
expenses
............................................................................
–
–
1
Total
Expenses
5
5
1,328
Net
Investment
Income
(Loss)
499
878
1,972
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
–
12,636
Investment
transactions
in
affiliated
securities
............................................
40
379
–
Capital
gain
distribution
received
from
affiliated
securities
..............................
1,102
762
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
–
39,587
Investments
in
affiliated
securities
........................................................
718
(
641
)
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
1,860
500
52,223
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
2,359
$
1,378
$
54,195
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2021
58
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
.......................................................
$
16,470
$
4,803
$
8,820
Total
Income
16,470
4,803
8,820
Expenses:
Management
and
investment
advisory
fees
...............................................
1,660
457
944
Distribution
fees
-
Class
2
.................................................................
364
80
447
Chief
compliance
officer
expenses
........................................................
1
–
–
Directors'
expenses
........................................................................
16
6
10
Professional fees
..........................................................................
2
2
2
Other
expenses
............................................................................
3
1
2
Total
Expenses
2,046
546
1,405
Net
Investment
Income
(Loss)
14,424
4,257
7,415
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
2
–
–
Investment
transactions
in
affiliated
securities
............................................
69,687
13,569
28,967
Capital
gain
distribution
received
from
affiliated
securities
..............................
18,099
3,299
13,938
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
(
8,821
)
(
2,486
)
16,534
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
78,967
14,382
59,439
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
93,391
$
18,639
$
66,854
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2021
59
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
.......................................................
$
5,062
$
8,801
$
–
Interest
.....................................................................................
–
–
2,308
Securities
lending
-
net
....................................................................
–
–
2
Total
Income
5,062
8,801
2,310
Expenses:
Management
and
investment
advisory
fees
...............................................
427
895
670
Distribution
fees
-
Class
2
.................................................................
99
471
N/A
Custodian
fees
.............................................................................
–
–
12
Directors'
expenses
........................................................................
6
10
5
Professional fees
..........................................................................
3
2
4
Other
expenses
............................................................................
1
2
1
Total
Expenses
536
1,380
692
Net
Investment
Income
(Loss)
4,526
7,421
1,618
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
–
110
Investment
transactions
in
affiliated
securities
............................................
11,330
21,965
–
Futures
contracts
..........................................................................
–
–
88
Capital
gain
distribution
received
from
affiliated
securities
..............................
1,718
17,919
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
–
(
2,813
)
Investments
in
affiliated
securities
........................................................
(
5,173
)
22,379
–
Futures
contracts
..........................................................................
–
–
4
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
7,875
62,263
(
2,611
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
12,401
$
69,684
$
(
993
)
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2021
60
See
accompanying
notes.
Amounts
in
thousands
SmallCap
Account
Net
Investment
Income
(Loss)
Income:
Dividends
...........................................................................................................................................
$
1,697
Withholding
tax
....................................................................................................................................
(
12
)
Securities
lending
-
net
.............................................................................................................................
77
Total
Income
1,762
Expenses:
Management
and
investment
advisory
fees
........................................................................................................
1,850
Distribution
fees
-
Class
2
..........................................................................................................................
24
Custodian
fees
......................................................................................................................................
6
Directors'
expenses
.................................................................................................................................
7
Professional fees
...................................................................................................................................
1
Other
expenses
.....................................................................................................................................
1
Total
Expenses
1,889
Net
Investment
Income
(Loss)
(
127
)
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
............................................................................................................................
35,323
Change
in
unrealized
appreciation/depreciation
of:
Investments
.........................................................................................................................................
5,193
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
40,516
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
40,389
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
61
See
accompanying
notes.
Amounts
in
thousands
Blue
Chip
Account
Bond
Market
Index
Account
Year
Ended
December
31,
2021
Period Ended
December
31,
2020
(a)
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
(
49
)
$
(
2
)
$
45,135
$
51,808
Net
realized
gain
(loss)
on
investments
..................................................................
152
2
10,041
34,032
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
1,312
170
(
104,415
)
87,025
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
1,415
170
(
49,239
)
172,865
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
N/A
N/A
(
65,097
)
(
66,635
)
Class
3
..............................................................................................
(
90
)
–
N/A
N/A
Total
Dividends
and
Distributions
(
90
)
–
(
65,097
)
(
66,635
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
N/A
N/A
547,705
731,232
Class
3
..............................................................................................
7,278
5,000
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
N/A
N/A
65,097
66,635
Class
3
..............................................................................................
90
–
N/A
N/A
Dollars
redeemed:
Class
1
..............................................................................................
N/A
N/A
(
333,117
)
(
708,298
)
Class
3
..............................................................................................
(
348
)
–
N/A
N/A
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
7,020
5,000
279,685
89,569
Total
Increase
(Decrease)
8,345
5,170
165,349
195,799
Net
Assets
Beginning
of
period
......................................................................................
5,170
–
2,735,259
2,539,460
End
of
period
............................................................................................
$
13,515
$
5,170
$
2,900,608
$
2,735,259
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
N/A
N/A
50,001
65,182
Class
3
..............................................................................................
575
500
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
N/A
N/A
5,983
5,971
Class
3
..............................................................................................
7
–
N/A
N/A
Shares
redeemed:
Class
1
..............................................................................................
N/A
N/A
(
30,507
)
(
63,937
)
Class
3
..............................................................................................
(
27
)
–
N/A
N/A
Net
Increase
(Decrease)
..................................................................................
555
500
25,477
7,216
(a)
Period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
62
See
accompanying
notes.
Amounts
in
thousands
Core
Plus
Bond
Account
Diversified
Balanced
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
5,111
$
4,918
$
17,690
$
19,207
Net
realized
gain
(loss)
on
investments
,
futures
contracts
and
swap
agreements
.......................
3,359
10,718
83,118
59,571
Change
in
unrealized
appreciation/depreciation
of
investments
,
futures
contracts
and
swap
agreements
...............................................................................................
(
9,772
)
7,744
3,843
37,371
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
1,302
)
23,380
104,651
116,149
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
12,230
)
(
9,503
)
(
3,051
)
(
2,241
)
Class
2
..............................................................................................
N/A
N/A
(
68,811
)
(
52,088
)
Class
3
..............................................................................................
N/A
N/A
(
7
)
–
Total
Dividends
and
Distributions
(
12,230
)
(
9,503
)
(
71,869
)
(
54,329
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
29,658
59,751
1,245
1,819
Class
2
..............................................................................................
N/A
N/A
11,560
6,443
Class
3
..............................................................................................
N/A
N/A
314
10
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
12,230
9,503
3,051
2,241
Class
2
..............................................................................................
N/A
N/A
68,811
52,088
Class
3
..............................................................................................
N/A
N/A
7
–
Dollars
redeemed:
Class
1
..............................................................................................
(
47,930
)
(
80,049
)
(
4,144
)
(
6,732
)
Class
2
..............................................................................................
N/A
N/A
(
128,657
)
(
126,371
)
Class
3
..............................................................................................
N/A
N/A
(
1
)
–
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
6,042
)
(
10,795
)
(
47,814
)
(
70,502
)
Total
Increase
(Decrease)
(
19,574
)
3,082
(
15,032
)
(
8,682
)
Net
Assets
Beginning
of
period
......................................................................................
255,956
252,874
1,020,276
1,028,958
End
of
period
............................................................................................
$
236,382
$
255,956
$
1,005,244
$
1,020,276
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
2,504
4,979
68
113
Class
2
..............................................................................................
N/A
N/A
634
387
Class
3
..............................................................................................
N/A
N/A
17
1
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
1,057
795
172
137
Class
2
..............................................................................................
N/A
N/A
3,872
3,184
Class
3
..............................................................................................
N/A
N/A
–
–
Shares
redeemed:
Class
1
..............................................................................................
(
4,025
)
(
6,709
)
(
227
)
(
408
)
Class
2
..............................................................................................
N/A
N/A
(
7,075
)
(
7,660
)
Class
3
..............................................................................................
N/A
N/A
–
–
Net
Increase
(Decrease)
..................................................................................
(
464
)
(
935
)
(
2,539
)
(
4,246
)
(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
Balanced
Managed
Volatility
Account
Diversified
Balanced
Volatility
Control
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
(a)
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
4,163
$
3,179
$
3,482
$
2,771
Net
realized
gain
(loss)
on
investments
..................................................................
11,691
3,997
12,812
3,221
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
1,776
12,698
3,609
8,635
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
17,630
19,874
19,903
14,627
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
2
..............................................................................................
(
7,203
)
(
9,814
)
(
6,085
)
(
4,487
)
Class
3
..............................................................................................
(
1
)
–
–
–
Total
Dividends
and
Distributions
(
7,204
)
(
9,814
)
(
6,085
)
(
4,487
)
Capital
Share
Transactions
Dollars
sold:
Class
2
..............................................................................................
11,475
9,530
32,617
30,906
Class
3
..............................................................................................
–
10
–
10
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
7,203
9,814
6,085
4,487
Class
3
..............................................................................................
1
–
–
–
Dollars
redeemed:
Class
2
..............................................................................................
(
30,183
)
(
20,500
)
(
7,201
)
(
6,435
)
Class
3
..............................................................................................
–
–
–
–
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
11,504
)
(
1,146
)
31,501
28,968
Total
Increase
(Decrease)
(
1,078
)
8,914
45,319
39,108
Net
Assets
Beginning
of
period
......................................................................................
185,149
176,235
184,479
145,371
End
of
period
............................................................................................
$
184,071
$
185,149
$
229,798
$
184,479
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
2
..............................................................................................
805
739
2,530
2,639
Class
3
..............................................................................................
–
1
–
1
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
509
771
468
384
Class
3
..............................................................................................
–
–
–
–
Shares
redeemed:
Class
2
..............................................................................................
(
2,121
)
(
1,602
)
(
559
)
(
553
)
Class
3
..............................................................................................
–
–
–
–
Net
Increase
(Decrease)
..................................................................................
(
807
)
(
91
)
2,439
2,471
(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
Account
Diversified
Growth
Managed
Volatility
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
(a)
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
68,785
$
68,287
$
9,314
$
6,062
Net
realized
gain
(loss)
on
investments
..................................................................
316,529
201,785
28,838
9,139
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
157,988
201,145
11,557
29,119
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
543,302
471,217
49,709
44,320
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
2
..............................................................................................
(
250,728
)
(
190,828
)
(
15,269
)
(
22,413
)
Class
3
..............................................................................................
(
1
)
–
–
–
Total
Dividends
and
Distributions
(
250,729
)
(
190,828
)
(
15,269
)
(
22,413
)
Capital
Share
Transactions
Dollars
sold:
Class
2
..............................................................................................
29,205
17,827
14,028
13,484
Class
3
..............................................................................................
257
10
1
10
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
250,728
190,828
15,269
22,413
Class
3
..............................................................................................
1
–
–
–
Dollars
redeemed:
Class
2
..............................................................................................
(
451,399
)
(
408,107
)
(
53,062
)
(
33,253
)
Class
3
..............................................................................................
(
1
)
–
–
–
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
171,209
)
(
199,442
)
(
23,764
)
2,654
Total
Increase
(Decrease)
121,364
80,947
10,676
24,561
Net
Assets
Beginning
of
period
......................................................................................
3,853,092
3,772,145
378,248
353,687
End
of
period
............................................................................................
$
3,974,456
$
3,853,092
$
388,924
$
378,248
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
2
..............................................................................................
1,372
966
929
1,020
Class
3
..............................................................................................
12
1
–
1
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
11,911
10,405
1,002
1,709
Class
3
..............................................................................................
–
–
–
–
Shares
redeemed:
Class
2
..............................................................................................
(
21,202
)
(
22,032
)
(
3,481
)
(
2,480
)
Class
3
..............................................................................................
–
–
–
–
Net
Increase
(Decrease)
..................................................................................
(
7,907
)
(
10,660
)
(
1,550
)
250
(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
Growth
Volatility
Control
Account
Diversified
Income
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
(a)
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
19,273
$
13,788
$
5,767
$
6,093
Net
realized
gain
(loss)
on
investments
..................................................................
82,568
15,480
14,072
7,377
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
44,292
53,997
2,165
18,607
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
146,133
83,265
22,004
32,077
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
2
..............................................................................................
(
31,026
)
(
26,804
)
(
13,513
)
(
10,799
)
Class
3
..............................................................................................
–
–
(
31
)
–
Total
Dividends
and
Distributions
(
31,026
)
(
26,804
)
(
13,544
)
10,799
Capital
Share
Transactions
Dollars
sold:
Class
2
..............................................................................................
158,445
158,414
50,123
60,558
Class
3
..............................................................................................
–
10
769
10
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
31,026
26,804
13,513
10,799
Class
3
..............................................................................................
–
–
31
–
Dollars
redeemed:
Class
2
..............................................................................................
(
23,023
)
(
11,521
)
(
69,652
)
(
48,998
)
Class
3
..............................................................................................
–
–
(
15
)
–
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
166,448
173,707
(
5,231
)
(
22,369
)
Total
Increase
(Decrease)
281,555
230,168
3,229
43,647
Net
Assets
Beginning
of
period
......................................................................................
995,585
765,417
323,535
279,888
End
of
period
............................................................................................
$
1,277,140
$
995,585
$
326,764
$
323,535
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
2
..............................................................................................
11,705
13,413
3,308
4,296
Class
3
..............................................................................................
–
1
50
1
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
2,268
2,277
899
768
Class
3
..............................................................................................
–
–
2
–
Shares
redeemed:
Class
2
..............................................................................................
(
1,701
)
(
960
)
(
4,598
)
(
3,488
)
Class
3
..............................................................................................
–
–
(
1
)
–
Net
Increase
(Decrease)
..................................................................................
12,272
14,731
(
340
)
1,577
(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.
66
See
accompanying
notes.
Amounts
in
thousands
Diversified
International
Account
Equity
Income
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
(a)
Operations
Net
investment
income
(loss)
............................................................................
$
4,504
$
2,924
$
13,034
$
15,088
Net
realized
gain
(loss)
on
investments
and
foreign
currencies
.........................................
26,148
2,355
89,817
3,936
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
2,864
)
35,065
53,748
28,636
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
27,788
40,344
156,599
47,660
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
5,303
)
(
6,493
)
(
13,771
)
(
33,840
)
Class
2
..............................................................................................
N/A
N/A
(
875
)
(
1,309
)
Class
3
..............................................................................................
N/A
N/A
(
1
)
–
Total
Dividends
and
Distributions
(
5,303
)
(
6,493
)
(
14,647
)
(
35,149
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
17,997
23,408
42,546
69,175
Class
2
..............................................................................................
N/A
N/A
15,172
5,224
Class
3
..............................................................................................
N/A
N/A
174
10
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
5,303
6,493
13,771
33,840
Class
2
..............................................................................................
N/A
N/A
875
1,309
Class
3
..............................................................................................
N/A
N/A
1
–
Dollars
redeemed:
Class
1
..............................................................................................
(
38,085
)
(
38,794
)
(
245,030
)
(
100,507
)
Class
2
..............................................................................................
N/A
N/A
(
3,764
)
(
4,904
)
Class
3
..............................................................................................
N/A
N/A
(
44
)
–
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
14,785
)
(
8,893
)
(
176,299
)
4,147
Total
Increase
(Decrease)
7,700
24,958
(
34,347
)
16,658
Net
Assets
Beginning
of
period
......................................................................................
291,726
266,768
789,843
773,185
End
of
period
............................................................................................
$
299,426
$
291,726
$
755,496
$
789,843
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
955
1,592
1,340
2,814
Class
2
..............................................................................................
N/A
N/A
477
205
Class
3
..............................................................................................
N/A
N/A
5
–
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
274
429
426
1,364
Class
2
..............................................................................................
N/A
N/A
27
53
Class
3
..............................................................................................
N/A
N/A
–
–
Shares
redeemed:
Class
1
..............................................................................................
(
2,021
)
(
2,591
)
(
7,761
)
(
3,991
)
Class
2
..............................................................................................
N/A
N/A
(
119
)
(
197
)
Class
3
..............................................................................................
N/A
N/A
(
1
)
–
Net
Increase
(Decrease)
..................................................................................
(
792
)
(
570
)
(
5,606
)
248
(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.
67
See
accompanying
notes.
Amounts
in
thousands
Government
&
High
Quality
Bond
Account
International
Emerging
Markets
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
801
$
2,928
$
984
$
575
Net
realized
gain
(loss)
on
investments
,
foreign
currencies
and
futures
contracts
......................
833
1,550
7,008
1,801
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
(
4,200
)
2,307
(
7,245
)
12,316
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
2,566
)
6,785
747
14,692
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
4,266
)
(
5,987
)
(
1,851
)
(
1,960
)
Total
Dividends
and
Distributions
(
4,266
)
(
5,987
)
(
1,851
)
(
1,960
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
35,129
48,406
10,524
6,687
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
4,266
5,987
1,851
1,960
Dollars
redeemed:
Class
1
..............................................................................................
(
62,782
)
(
68,527
)
(
14,295
)
(
17,269
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
23,387
)
(
14,134
)
(
1,920
)
(
8,622
)
Total
Increase
(Decrease)
(
30,219
)
(
13,336
)
(
3,024
)
4,110
Net
Assets
Beginning
of
period
......................................................................................
227,996
241,332
93,839
89,729
End
of
period
............................................................................................
$
197,777
$
227,996
$
90,815
$
93,839
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
3,648
4,870
504
403
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
445
610
90
117
Shares
redeemed:
Class
1
..............................................................................................
(
6,431
)
(
6,882
)
(
684
)
(
1,050
)
Net
Increase
(Decrease)
..................................................................................
(
2,338
)
(
1,402
)
(
90
)
(
530
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
68
See
accompanying
notes.
Amounts
in
thousands
LargeCap
Growth
Account
I
LargeCap
S&P
500
Index
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
(
1,753
)
$
(
766
)
$
34,299
$
42,203
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
70,697
89,670
346,848
305,143
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
61,881
81,761
389,815
151,298
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
130,825
170,665
770,962
498,644
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
78,910
)
(
32,044
)
(
289,214
)
(
209,074
)
Class
2
..............................................................................................
N/A
N/A
(
3,863
)
(
1,726
)
Total
Dividends
and
Distributions
(
78,910
)
(
32,044
)
(
293,077
)
(
210,800
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
49,902
76,419
138,939
412,611
Class
2
..............................................................................................
N/A
N/A
13,085
10,151
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
78,910
32,044
289,214
209,074
Class
2
..............................................................................................
N/A
N/A
3,863
1,726
Dollars
redeemed:
Class
1
..............................................................................................
(
86,428
)
(
137,380
)
(
630,975
)
(
707,658
)
Class
2
..............................................................................................
N/A
N/A
(
3,405
)
(
2,283
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
42,384
(
28,917
)
(
189,279
)
(
76,379
)
Total
Increase
(Decrease)
94,299
109,704
288,606
211,465
Net
Assets
Beginning
of
period
......................................................................................
612,357
502,653
2,920,643
2,709,178
End
of
period
............................................................................................
$
706,656
$
612,357
$
3,209,249
$
2,920,643
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
962
1,875
5,730
23,526
Class
2
..............................................................................................
N/A
N/A
556
525
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
1,526
747
12,121
10,760
Class
2
..............................................................................................
N/A
N/A
165
90
Shares
redeemed:
Class
1
..............................................................................................
(
1,661
)
(
3,339
)
(
25,846
)
(
35,841
)
Class
2
..............................................................................................
N/A
N/A
(
149
)
(
124
)
Net
Increase
(Decrease)
..................................................................................
827
(
717
)
(
7,423
)
(
1,064
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
69
See
accompanying
notes.
Amounts
in
thousands
LargeCap
S&P
500
Managed
Volatility
Index
Account
MidCap
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
2,028
$
2,849
$
(
121
)
$
712
Net
realized
gain
(loss)
on
investments
,
futures
contracts
and
options
and
swaptions
..................
26,911
14,091
70,194
52,550
Change
in
unrealized
appreciation/depreciation
of
investments
,
futures
contracts
and
options
and
swaptions
.................................................................................................
26,106
20,710
83,393
44,805
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
55,045
37,650
153,466
98,067
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
26,835
)
(
8,348
)
(
42,787
)
(
55,618
)
Class
2
..............................................................................................
N/A
N/A
(
2,139
)
(
2,129
)
Total
Dividends
and
Distributions
(
26,835
)
(
8,348
)
(
44,926
)
(
57,747
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
9,025
28,455
42,968
16,217
Class
2
..............................................................................................
N/A
N/A
8,836
3,754
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
26,835
8,348
42,787
55,618
Class
2
..............................................................................................
N/A
N/A
2,139
2,129
Dollars
redeemed:
Class
1
..............................................................................................
(
59,287
)
(
48,772
)
(
82,470
)
(
94,297
)
Class
2
..............................................................................................
N/A
N/A
(
2,638
)
(
2,666
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
23,427
)
(
11,969
)
11,622
(
19,245
)
Total
Increase
(Decrease)
4,783
17,333
120,162
21,075
Net
Assets
Beginning
of
period
......................................................................................
235,112
217,779
629,737
608,662
End
of
period
............................................................................................
$
239,895
$
235,112
$
749,899
$
629,737
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
492
2,164
601
298
Class
2
..............................................................................................
N/A
N/A
126
66
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
1,513
552
610
1,013
Class
2
..............................................................................................
N/A
N/A
31
39
Shares
redeemed:
Class
1
..............................................................................................
(
3,199
)
(
3,262
)
(
1,183
)
(
1,635
)
Class
2
..............................................................................................
N/A
N/A
(
39
)
(
48
)
Net
Increase
(Decrease)
..................................................................................
(
1,194
)
(
546
)
146
(
267
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
70
See
accompanying
notes.
Amounts
in
thousands
Principal
Capital
Appreciation
Account
Principal
LifeTime
2010
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
1,248
$
1,495
$
1,022
$
627
Net
realized
gain
(loss)
on
investments
and
foreign
currencies
.........................................
21,700
7,923
1,441
1,964
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
21,069
16,879
(
386
)
993
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
44,017
26,297
2,077
3,584
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
7,194
)
(
8,219
)
(
2,606
)
(
1,397
)
Class
2
..............................................................................................
(
1,221
)
(
845
)
N/A
N/A
Total
Dividends
and
Distributions
(
8,415
)
(
9,064
)
(
2,606
)
(
1,397
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
4,872
5,155
7,457
13,158
Class
2
..............................................................................................
8,993
4,919
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
7,194
8,219
2,606
1,397
Class
2
..............................................................................................
1,221
845
N/A
N/A
Dollars
redeemed:
Class
1
..............................................................................................
(
26,775
)
(
25,015
)
(
8,061
)
(
12,417
)
Class
2
..............................................................................................
(
2,574
)
(
2,405
)
N/A
N/A
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
7,069
)
(
8,282
)
2,002
2,138
Total
Increase
(Decrease)
28,533
8,951
1,473
4,325
Net
Assets
Beginning
of
period
......................................................................................
165,714
156,763
35,824
31,499
End
of
period
............................................................................................
$
194,247
$
165,714
$
37,297
$
35,824
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
125
179
538
1,023
Class
2
..............................................................................................
241
159
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
184
269
195
108
Class
2
..............................................................................................
32
28
N/A
N/A
Shares
redeemed:
Class
1
..............................................................................................
(
699
)
(
824
)
(
587
)
(
965
)
Class
2
..............................................................................................
(
71
)
(
81
)
N/A
N/A
Net
Increase
(Decrease)
..................................................................................
(
188
)
(
270
)
146
166
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
71
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2020
Account
Principal
LifeTime
2030
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
5,371
$
3,226
$
6,898
$
3,386
Net
realized
gain
(loss)
on
investments
..................................................................
11,453
10,967
15,985
8,619
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
442
5,602
6,546
16,183
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
17,266
19,795
29,429
28,188
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
14,360
)
(
7,874
)
(
12,163
)
(
7,444
)
Total
Dividends
and
Distributions
(
14,360
)
(
7,874
)
(
12,163
)
(
7,444
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
26,050
41,931
49,164
60,753
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
14,360
7,874
12,163
7,444
Dollars
redeemed:
Class
1
..............................................................................................
(
41,149
)
(
58,034
)
(
44,020
)
(
42,822
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
739
)
(
8,229
)
17,307
25,375
Total
Increase
(Decrease)
2,167
3,692
34,573
46,119
Net
Assets
Beginning
of
period
......................................................................................
194,167
190,475
228,291
182,172
End
of
period
............................................................................................
$
196,334
$
194,167
$
262,864
$
228,291
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,689
2,969
3,203
4,701
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
954
569
792
570
Shares
redeemed:
Class
1
..............................................................................................
(
2,674
)
(
4,285
)
(
2,883
)
(
3,418
)
Net
Increase
(Decrease)
..................................................................................
(
31
)
(
747
)
1,112
1,853
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
72
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2040
Account
Principal
LifeTime
2050
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
3,939
$
1,600
$
2,075
$
709
Net
realized
gain
(loss)
on
investments
..................................................................
8,351
4,034
4,722
1,976
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
4,896
9,163
2,429
4,442
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
17,186
14,797
9,226
7,127
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
5,654
)
(
3,620
)
(
2,689
)
(
1,684
)
Total
Dividends
and
Distributions
(
5,654
)
(
3,620
)
(
2,689
)
(
1,684
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
28,876
23,228
21,207
9,945
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
5,654
3,620
2,689
1,684
Dollars
redeemed:
Class
1
..............................................................................................
(
19,027
)
(
16,293
)
(
11,685
)
(
6,174
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
15,503
10,555
12,211
5,455
Total
Increase
(Decrease)
27,035
21,732
18,748
10,898
Net
Assets
Beginning
of
period
......................................................................................
107,137
85,405
49,779
38,881
End
of
period
............................................................................................
$
134,172
$
107,137
$
68,527
$
49,779
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,495
1,475
1,120
656
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
289
227
140
111
Shares
redeemed:
Class
1
..............................................................................................
(
979
)
(
1,044
)
(
614
)
(
412
)
Net
Increase
(Decrease)
..................................................................................
805
658
646
355
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
73
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2060
Account
Principal
LifeTime
Strategic
Income
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
499
$
154
$
878
$
576
Net
realized
gain
(loss)
on
investments
..................................................................
1,142
316
1,141
1,263
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
718
1,132
(
641
)
900
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
2,359
1,602
1,378
2,739
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
526
)
(
346
)
(
1,855
)
(
686
)
Total
Dividends
and
Distributions
(
526
)
(
346
)
(
1,855
)
(
686
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
6,857
5,470
5,995
13,699
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
526
346
1,855
686
Dollars
redeemed:
Class
1
..............................................................................................
(
3,404
)
(
3,735
)
(
8,269
)
(
11,692
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
3,979
2,081
(
419
)
2,693
Total
Increase
(Decrease)
5,812
3,337
(
896
)
4,746
Net
Assets
Beginning
of
period
......................................................................................
11,468
8,131
31,025
26,279
End
of
period
............................................................................................
$
17,280
$
11,468
$
30,129
$
31,025
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
383
395
467
1,125
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
29
24
147
56
Shares
redeemed:
Class
1
..............................................................................................
(
189
)
(
277
)
(
644
)
(
968
)
Net
Increase
(Decrease)
..................................................................................
223
142
(
30
)
213
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
74
See
accompanying
notes.
Amounts
in
thousands
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
1,972
$
2,591
$
14,424
$
11,114
Net
realized
gain
(loss)
on
investments
..................................................................
12,636
9,588
87,788
15,288
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
39,587
(
19,045
)
(
8,821
)
42,753
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
54,195
(
6,866
)
93,391
69,155
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
12,078
)
(
10,113
)
(
21,306
)
(
28,428
)
Class
2
..............................................................................................
(
701
)
(
471
)
(
5,166
)
(
6,281
)
Total
Dividends
and
Distributions
(
12,779
)
(
10,584
)
(
26,472
)
(
34,709
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
21,019
14,394
20,819
15,889
Class
2
..............................................................................................
2,630
2,633
14,289
12,156
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
12,078
10,113
21,306
28,428
Class
2
..............................................................................................
701
471
5,166
6,281
Dollars
redeemed:
Class
1
..............................................................................................
(
26,908
)
(
33,684
)
(
76,310
)
(
77,946
)
Class
2
..............................................................................................
(
946
)
(
1,825
)
(
10,232
)
(
15,097
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
8,574
(
7,898
)
(
24,962
)
(
30,289
)
Total
Increase
(Decrease)
49,990
(
25,348
)
41,957
4,157
Net
Assets
Beginning
of
period
......................................................................................
136,582
161,930
702,987
698,830
End
of
period
............................................................................................
$
186,572
$
136,582
$
744,944
$
702,987
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
955
757
1,185
1,033
Class
2
..............................................................................................
117
136
817
811
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
535
571
1,200
1,893
Class
2
..............................................................................................
31
27
295
424
Shares
redeemed:
Class
1
..............................................................................................
(
1,224
)
(
1,781
)
(
4,324
)
(
5,156
)
Class
2
..............................................................................................
(
43
)
(
94
)
(
594
)
(
1,001
)
Net
Increase
(Decrease)
..................................................................................
371
(
384
)
(
1,421
)
(
1,996
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
75
See
accompanying
notes.
Amounts
in
thousands
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
4,257
$
3,643
$
7,415
$
4,716
Net
realized
gain
(loss)
on
investments
..................................................................
16,868
2,428
42,905
7,957
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
2,486
)
10,081
16,534
30,555
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
18,639
16,152
66,854
43,228
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
5,275
)
(
6,527
)
(
7,539
)
(
7,057
)
Class
2
..............................................................................................
(
980
)
(
1,120
)
(
5,513
)
(
4,603
)
Total
Dividends
and
Distributions
(
6,255
)
(
7,647
)
(
13,052
)
(
11,660
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
14,199
10,993
17,827
15,388
Class
2
..............................................................................................
6,406
6,465
13,856
10,170
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
5,275
6,527
7,539
7,057
Class
2
..............................................................................................
980
1,120
5,513
4,603
Dollars
redeemed:
Class
1
..............................................................................................
(
25,083
)
(
24,358
)
(
39,869
)
(
28,311
)
Class
2
..............................................................................................
(
5,094
)
(
4,138
)
(
8,456
)
(
12,707
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
3,317
)
(
3,391
)
(
3,590
)
(
3,800
)
Total
Increase
(Decrease)
9,067
5,114
50,212
27,768
Net
Assets
Beginning
of
period
......................................................................................
194,589
189,475
384,615
356,847
End
of
period
............................................................................................
$
203,656
$
194,589
$
434,827
$
384,615
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,072
905
756
809
Class
2
..............................................................................................
487
542
597
541
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
392
548
312
365
Class
2
..............................................................................................
74
95
232
242
Shares
redeemed:
Class
1
..............................................................................................
(
1,870
)
(
2,063
)
(
1,678
)
(
1,484
)
Class
2
..............................................................................................
(
393
)
(
354
)
(
362
)
(
682
)
Net
Increase
(Decrease)
..................................................................................
(
238
)
(
327
)
(
143
)
(
209
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
76
See
accompanying
notes.
Amounts
in
thousands
SAM
Flexible
Income
Portfolio
SAM
Strategic
Growth
Portfolio
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
4,526
$
4,396
$
7,421
$
3,541
Net
realized
gain
(loss)
on
investments
..................................................................
13,048
2,977
39,884
8,211
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
(
5,173
)
4,312
22,379
35,189
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
12,401
11,685
69,684
46,941
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
5,721
)
(
7,314
)
(
6,518
)
(
6,858
)
Class
2
..............................................................................................
(
1,591
)
(
1,558
)
(
5,802
)
(
5,802
)
Total
Dividends
and
Distributions
(
7,312
)
(
8,872
)
(
12,320
)
(
12,660
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
14,388
12,405
20,247
17,678
Class
2
..............................................................................................
14,144
7,059
15,072
10,818
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
5,721
7,314
6,518
6,858
Class
2
..............................................................................................
1,591
1,558
5,802
5,802
Dollars
redeemed:
Class
1
..............................................................................................
(
25,468
)
(
30,419
)
(
21,478
)
(
23,845
)
Class
2
..............................................................................................
(
5,875
)
(
5,053
)
(
10,188
)
(
11,395
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
4,501
(
7,136
)
15,973
5,916
Total
Increase
(Decrease)
9,590
(
4,323
)
73,337
40,197
Net
Assets
Beginning
of
period
......................................................................................
184,262
188,585
355,610
315,413
End
of
period
............................................................................................
$
193,852
$
184,262
$
428,947
$
355,610
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,101
1,003
758
858
Class
2
..............................................................................................
1,082
577
566
543
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
437
601
239
327
Class
2
..............................................................................................
123
129
216
281
Shares
redeemed:
Class
1
..............................................................................................
(
1,944
)
(
2,490
)
(
811
)
(
1,170
)
Class
2
..............................................................................................
(
453
)
(
415
)
(
391
)
(
555
)
Net
Increase
(Decrease)
..................................................................................
346
(
595
)
577
284
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
77
See
accompanying
notes.
Amounts
in
thousands
Short-Term
Income
Account
SmallCap
Account
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Year
Ended
December
31,
2021
Year
Ended
December
31,
2020
Operations
Net
investment
income
(loss)
............................................................................
$
1,618
$
2,255
$
(
127
)
$
397
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
198
1,329
35,323
8,395
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
(
2,809
)
1,248
5,193
28,277
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
(
993
)
4,832
40,389
37,069
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
2,932
)
(
3,166
)
(
7,164
)
(
12,854
)
Class
2
..............................................................................................
N/A
N/A
(
318
)
(
488
)
Total
Dividends
and
Distributions
(
2,932
)
(
3,166
)
(
7,482
)
(
13,342
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
34,540
76,173
17,504
11,103
Class
2
..............................................................................................
N/A
N/A
1,948
1,429
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
2,932
3,166
7,164
12,854
Class
2
..............................................................................................
N/A
N/A
318
488
Dollars
redeemed:
Class
1
..............................................................................................
(
50,034
)
(
54,838
)
(
38,216
)
(
35,244
)
Class
2
..............................................................................................
N/A
N/A
(
1,500
)
(
1,358
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
12,562
)
24,501
(
12,782
)
(
10,728
)
Total
Increase
(Decrease)
(
16,487
)
26,167
20,125
12,999
Net
Assets
Beginning
of
period
......................................................................................
157,019
130,852
204,262
191,263
End
of
period
............................................................................................
$
140,532
$
157,019
$
224,387
$
204,262
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
13,394
29,351
883
841
Class
2
..............................................................................................
N/A
N/A
98
102
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
1,150
1,223
360
965
Class
2
..............................................................................................
N/A
N/A
16
37
Shares
redeemed:
Class
1
..............................................................................................
(
19,407
)
(
21,193
)
(
1,926
)
(
2,487
)
Class
2
..............................................................................................
N/A
N/A
(
77
)
(
96
)
Net
Increase
(Decrease)
..................................................................................
(
4,863
)
9,381
(
646
)
(
638
)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
78
1.
Organization
Principal
Variable
Contracts
Funds,
Inc.
(the
"Fund")
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
“1940
Act”)
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,
series
of
the
Fund,
(known
as
the
“Funds”),
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
Funds”.
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”.
The
Funds
may
offer
up
to
three
classes
of
shares:
Class
1,
Class
2,
and
Class
3.
Each
of
the
Funds
is
an
investment
company
and
applies
specialized
accounting
and
reporting
under
Accounting
Standards
Codification
(“ASC”)
Topic
946,
Financial
Services
-
Investment
Companies
.
The
Funds
have
not
provided
financial
support
and
are
not
contractually
required
to
provide
financial
support
to
any
investee.
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
Funds
were
made
by
the
Principal
Global
Investors,
LLC
(“Manager”).
All
classes
of
shares
for
each
of
the
Funds
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.
generally
accepted
accounting
principles
(“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
Funds:
Security
Valuation.
The
Funds
may
invest
in
other
series
of
the
Fund,
Principal
Funds,
Inc.,
and
other
investment
funds,
which
may
include
exchange-traded
funds,
money
market
funds
and
other
registered
open-end
investment
companies.
Investments
in
registered
open-
end
investment
companies,
other
than
exchange-traded
funds,
are
valued
at
the
respective
fund’s
closing
net
asset
value
per
share
on
the
day
of
valuation.
The
Funds
(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
Funds,
and
SAM
Portfolios)
value
securities,
including
exchange-traded
funds,
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
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
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
79
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
Funds’
net
asset
values
are
reflected
in
the
Funds’
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
Funds
invest
in
foreign
securities
listed
on
foreign
exchanges
which
trade
on
days
on
which
the
Funds
do
not
determine
net
asset
values,
for
example,
weekends
and
other
customary
national
U.S.
holidays,
the
Funds’
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
Funds’
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 Funds
held
securities
denominated
in
foreign
currencies
that
exceeded
5%
of
net
assets
of
the
respective
fund as
of
December
31,
2021:
Income
and
Investment
Transactions.
The Funds
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
Funds
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 Funds
are
informed
of
the
ex-dividend
date.
Interest
income
is
recognized
on
an
accrual
basis.
Payment
in
kind
income
is
computed
on
the
value
of the
securities
received
at
the
contractual
rate
specified
in
each
loan
agreement. 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
Diversified
International
Account
Euro
23.7%
Japanese
Yen
16.1
British
Pound
Sterling
11.4
Swiss
Franc
7.2
Canadian
Dollar
5.5
International
Emerging
Markets
Account
Hong
Kong
Dollar
25.7%
New
Taiwan
Dollar
15.6
Indian
Rupee
14.8
South
Korean
Won
11.4
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
80
other
than
par.
The Funds
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.
Distributions
from
Real
Estate
Investment
Trusts
("REITs")
may
be
characterized
as
ordinary
income,
capital
gain,
or
a
return
of
capital
to
the
fund.
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 fund
are
charged
to
that
fund.
Other
expenses
not
directly
attributed
to
a
particular fund
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 Funds
bear
directly,
each
of
the Funds
may
indirectly
bear
a
pro
rata
share
of
the
fees
and
expenses
of
the
other
series
of
the
Fund,
Principal
Funds,
Inc.
and
other
investment
companies
(collectively,
"Underlying
Funds")
in
which
they
invest.
Because
the
Underlying
Funds
have
varied
expense
levels
and
each
of
the Funds
may
own
different
proportions
of
the Underlying
Funds
at
different
times,
the
amount
of
expense
incurred
indirectly
by
each
of
the Funds
will
vary.
Expenses
included
in
the
statements
of
operations
and
financial
highlights
of
the Funds 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,
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 Funds
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
Funds’
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,
2021,
the Funds
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.
Foreign
Taxes.
Certain
of
the Funds
are
subject
to
foreign
income
taxes
imposed
by
certain
countries
in
which
they
invest.
Foreign
income
taxes
are
accrued
by
the Funds
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 Funds
have
filed
additional
tax
reclaims
for
taxes
withheld
in
prior
years.
Due
to
the
uncertainty
regarding
collectability 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.
Any
tax
reclaims
received
are
included
in
dividend
income
on
the
statements
of
operations.
Gains
realized
upon
the
disposition
of
certain
foreign
securities
held
by
certain
Funds
may
be
subject
to
capital
gains
tax,
payable
prior
to
the
repatriation
of
sale
proceeds.
The
tax
is
computed
on
certain
net
realized
gains
and,
if
any,
is
shown
on
the
statements
of
operations. Realized
losses
in
excess
of
gains
may
be
carried
forward
to
offset
future
gains.
In
addition,
the
Funds
accrue
an
estimated
tax
liability
for
future
gains
on
certain
foreign
securities.
Any accrued
foreign
tax
liability
is
shown
on
the
statements
of
assets
and
liabilities. As
of December
31,
2021,
Diversified
International
Account
and
International
Emerging
Markets
Account
had
an
accrued
foreign
tax
liability
of
$259,000
and
$463,000,
respectively.
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
81
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 impact
of
the
ASU 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
Fund
s and
other
registered
investment
companies
managed
by
the
Manager
may
participate
in
an
interfund
lending
facility
(“Facility”).
The
Facility
allows
the Funds
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
bank
loan
rate
equals
the
higher
of
(
i
)
the
Federal
Funds
Rate
or
(ii)
the
LIBOR
rate
(or
such
successor
if
no
longer
available)
plus
1.25%.
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,
2021.
During
the year
ended
December
31,
2021, Funds
lending
to
the
Facility
were
as
follows
(amounts
in
thousands):
During
the year
ended
December
31,
2021, Funds
borrowing
from
the
Facility
were
as
follows
(amounts
in
thousands):
In
addition,
the
Funds
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
$250
million,
collectively,
effective
April
19,
2021.
Prior
to
April
19,
2021,
participants
could
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
LIBOR
rate
(or
such
successor
if
no
longer
available)
plus
1.25%.
Additionally,
a
commitment
fee
is
charged
at
an
annual
rate
of
.15%
(effective
April
19,
2021
and
thereafter)
on
the
amount
of
the
line
of
credit
which
is
allocated
to
each
participant
based
on
average
net
assets.
Average
Daily
Amount
Loaned
Weighted
Average
Annual
Interest
Rate
Blue
Chip
Account
$
1
0.70
%
Bond
Market
Index
Account
2,026
0.70
Core
Plus
Bond
Account
100
0.70
Diversified
Balanced
Volatility
Control
Account
6
0.71
Diversified
Growth
Volatility
Control
Account
232
0.71
Diversified
International
Account
9
0.70
Equity
Income
Account
158
0.68
Government
&
High
Quality
Bond
Account
56
0.69
International
Emerging
Markets
Account
15
0.69
LargeCap
Growth
Account
I
36
0.70
LargeCap
S&P
500
Index
Account
528
0.68
LargeCap
S&P
500
Managed
Volatility
Index
Account
66
0.70
MidCap
Account
2
0.70
Principal
Capital
Appreciation
Account
9
0.71
Real
Estate
Securities
Account
2
0.71
Short-Term
Income
Account
28
0.70
SmallCap
Account
18
0.70
Average
Daily
Outstanding
Balance
Weighted
Average
Annual
Interest
Rate
Blue
Chip
Account
$
—
0.70
%
Diversified
Balanced
Volatility
Control
Account
66
0.70
Diversified
Growth
Volatility
Control
Account
289
0.69
Diversified
International
Account
20
0.71
International
Emerging
Markets
Account
—
0.62
LargeCap
S&P
500
Index
Account
158
0.70
MidCap
Account
93
0.71
Real
Estate
Securities
Account
14
0.67
Short-Term
Income
Account
2
0.70
SmallCap
Account
2
0.61
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
82
Prior
to
April
19,
2021,
the
commitment
fee
was
charged
at
an
annual
rate
of
.20%.
The
interest
expense
associated
with
these
borrowings
is
included
in
other
expenses
on
the
statements
of
operations.
During
the
year
ended
December
31,
2021,
there
were
no
borrowings
against
the
line
of
credit.
Contingent
Convertible
Securities.
As
footnoted
in
the
schedules
of
investments,
certain
of
the
Funds
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
a
fund 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
fund's
complete
loss
on
an
investment
in
CoCos
with
no
chance
of
recovery
even
if
the
issuer
remains
in
existence.
Counterparties.
The
Funds
may
be
exposed
to
counterparty
risk,
or
the
risk
that
another
party
with
which
the
Funds
have
unsettled
or
open
transactions
will
fail
to
perform
on
their
commitment.
To
the
extent
that
unpaid
amounts
owed
to
the
Funds
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
Funds
in
the
form
of
cash
or
cash
equivalents
equal
in
value
to
the
unpaid
amount
owed
to
the
Funds.
If
the
unpaid
amount
owed
to
the
Funds
subsequently
decreases,
the
Funds
would
be
required
to
return
all
or
a
portion
of
the
collateral.
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,
2021
,
none
of
the
Funds
had
financial
assets
and
liabilities
subject
to
Master
Netting
Agreements
or
similar
agreements.
Cross
Trades.
The
Funds
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
a
fund may
be
considered
affiliated
with
any
portfolio
for
which
the
fund's
sub-advisor
acts
as
an
investment
advisor.
Such
transactions
are
permissible
provided
that
the
conditions
of
Rule
17a-7
under
the
1940
Act
are
satisfied.
For
the
year ended December
31,
2021,
none
of
the
Funds
had
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 Funds may
pledge
cash
to
a
broker
for
securities
sold
short.
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
83
As
of
December
31,
2021,
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 Funds
by
the
broker
is
received
in
the
fund’s
custodian
account.
As
of
December
31,
2021,
none
of
the
Funds
had
deposits
from
counterparty.
Foreign
Currency
Contracts.
Certain
of
the
Funds
may
be
subject
to
foreign
currency
exchange
rate
risk
in
the
normal
course
of
pursuing
such
Funds’
investment
objectives.
The
Funds
may
use
foreign
currency
contracts
to
gain
exposure
to,
or
hedge
against
changes
in
the
value
of
foreign
currencies.
Certain
of
the
Funds
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
Funds
as
an
unrealized
gain
or
loss.
When
the
contract
is
closed,
the
Funds
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
Funds’
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
increase.
In
addition,
the
Funds
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 Funds
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 Funds
(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
Funds,
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 a
fund 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 fund
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 fund
recognizes
a
realized
gain
or
loss
equal
to
the
difference
between
the
proceeds
from,
or
cost
of,
the
closing
transaction
and
the
fund’s
cost
basis
in
the
contract.
There
is
minimal
counterparty
credit
risk
to
the Funds
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
Funds
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,
Government
&
High
Quality
Bond
Account
and
Short-Term
Income
Account.
The
notional
values
of
the
futures
contracts
will
vary
in
accordance
with the
changing
duration
of
these
funds.
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 Funds
has
valued
the
investments.
This
may
have
an
adverse
effect
on
each
of
the
Funds'
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
164
—
—
164
LargeCap
Growth
Account
I
265
—
—
265
Short-Term
Income
Account
14
—
—
14
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
84
ability
to
dispose
of
particular
illiquid
securities
at
fair
value
and
may
limit
each
of
the
Funds’
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
Funds
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
Funds
would
not
receive
the
principal
until
maturity.
Mortgage
Dollar
Rolls.
Certain
of
the
Funds
have
entered
into
mortgage-dollar-roll
transactions
on TBA
securities,
in
which
the
Funds
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
Funds
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
Funds
treat
mortgage-dollar-roll
transactions
as
purchases
and
sales;
as
such,
these
transactions
may
increase
the
Funds’
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,
LargeCap
S&P
500
Managed
Volatility
Index
Account
wrote
call
and
put
options
on indices
based
on
securities
in
which it
may
invest
for
both
hedging
and
non-hedging
purposes.
Writing
put
options
tends
to
increase
a
fund’s
exposure
to
the
underlying
instrument.
Writing
call
options
tends
to
decrease
a
fund’s
exposure
to
the
underlying
instrument.
When
a
fund
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
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.
A
fund,
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 a
fund may
not
be
able
to
enter
into
a
closing
transaction
because
of
an
illiquid
market.
The
maximum
potential
amount
of
future
payments
(undiscounted)
that
a
fund 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
schedules
of
investments. A
fund may
also
purchase
put
and
call
options.
Purchasing
call
options
tends
to
increase a
fund's
exposure
to
the
underlying
instrument.
Purchasing
put
options
tends
to
decrease a
fund's
exposure
to
the
underlying
instrument.
A
fund pays
a
premium
which
is
included
on
the fund'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
Funds'
schedules
of
investments.
Private
Investments
in
Public
Equity.
The
Funds
may
invest
in
private
investments
in
public
equity
(“PIPEs”)
which
are
issued
by
a
company
in
the
secondary
market
as
a
means
of
raising
capital.
In
connection
with
PIPEs,
the
Funds
may
enter
into
unfunded
commitments.
Commitments
may
be
subject
to
various
contingencies
and
are
recognized
when
the
commitment
is
legally
binding.
These
contingencies
are
considered
in
the
valuation
of
the
commitments.
The
Funds
are
obligated
to
fund
these
commitments
when
the
contingencies
are
met
and
therefore,
the
Funds
must
have
funds
sufficient
to
cover
their
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,
2021,
the
Funds
had
unfunded
commitments
in
connection
with
PIPEs
as
follows
(amounts
in
thousands).
Rebates.
Subject
to
best
execution,
the Funds
may
direct
certain
portfolio
transactions
to
brokerage
firms
that,
in
turn,
have
agreed
to
rebate
a
portion
of
the
related
brokerage
commission
to
the
Funds
in
cash.
Commission
rebates
are
included
as
a
component
of
realized
gain
from
investment
transactions
in
the
statements
of
operations.
Unfunded
Commitment
Net
Unrealized
Gain/(Loss)
SmallCap
Account
$
2,064
$
75
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
85
Repurchase
Agreements.
The
Funds
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
Funds
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
Funds
could
experience
delays
in
the
realization
of
the
collateral.
Restricted
Securities.
Certain
of
the
Funds
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.
As
footnoted
on
the
schedules
of
investments,
certain
of
the
Funds
may
lend
portfolio
securities
to
approved
brokerage
firms
to
earn
additional
income.
The
Funds
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
Funds
and
any
additional
required
collateral
is
delivered
to
the
Funds
on
the
next
business
day.
The
cash
collateral
received
is
usually
invested
in
a
SEC-registered
money
market
mutual
fund
and
the
Funds
could
realize
a
loss
on
such
investments.
Further,
the
Funds
could
experience
a
delay
in
recovering their
securities
and
possible
loss
of
income
or
value
if
the
borrower
fails
to
return
them.
Securities
lending
income,
net
of
related
fees, is
shown
on
the
statements
of
operations.
Senior
Floating
Rate
Interests.
The
Funds
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”),
and
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
fund
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
Funds
may
also
enter
into
unfunded
loan
commitments.
All
or
a
portion
of
the
loan
commitments
may
be
unfunded.
The
Funds
are
obligated
to
fund
these
loan
commitments
at
the
Borrower’s
discretion.
Therefore,
the
Funds
must
have
funds
sufficient
to
cover
their
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.
Unfunded
loan
commitments
are
categorized
as
Level
2
within
the
disclosure
hierarchy.
As
of
December
31,
2021
,
the
Funds
had
no
unfunded
loan
commitments.
Short
Sales.
Certain
of
the
Funds
may
enter
into
short
sales
transactions.
A
short
sale
is
a
transaction
in
which
a
fund
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
fund
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
fund
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.
A
fund
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
fund
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.
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
86
The
fund
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
would
be
included
as
short
sale
fees
on
the
statements
of
operations.
None
of
the
Funds
entered
into
short
sales
transactions
during
the
year
ended
December
31,
2021.
Swap
Agreements.
Certain
of
the
Funds
may enter
into
swap
agreements.
Swap
agreements
are
negotiated
agreements
between
a
fund 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.
A
fund
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
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 Funds
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 Funds
and
any
counterparty
are
required
to
maintain
an
agreement
that
requires
the Funds
and
that
counterparty
to
monitor
the
net
fair
value
of
all
derivative
transactions
entered
into
pursuant
to
the
contract
between
the Funds
and
such
counterparty.
If
the
net
fair
value
of
such
derivatives
transactions
between
the Funds
and
that
counterparty
exceeds
a
certain
threshold
(as
defined
in
the
agreement),
the Funds
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 Funds
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, a
fund would
add
leverage
to
its
portfolio
because,
in
addition
to
its
total
net
assets,
a
fund would
be
subject
to
investment
exposure
on
the
notional
amount
of
the
swap.
If a
fund
is
a
seller
of
protection
and
a
credit
event
occurs,
as
defined
under
the
terms
of
that
particular
swap
agreement,
the fund
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 a
fund
is
a
buyer
of
protection
and
a
credit
event
occurs,
as
defined
under
the
terms
of
that
particular
swap
agreement,
a
fund 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
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
87
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.
A
fund
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
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
a
fund
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,
2021
for
which a
fund
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 a
fund
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 Funds
may
trade
portfolio
securities
on
a
TBA
or
when-issued
basis.
In
a
TBA
or
when-issued
transaction,
the Funds
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
Funds,
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
Funds,
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
invests.
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.,
Principal
Exchange-Traded
Funds,
and
other
asset
allocation
programs.
The
Manager
is
committed
to
minimizing
the
potential
impact
of
underlying
fund
risk
to
the
extent
consistent
with
pursuing
the
investment
objectives
of
the
funds
of
funds
which
it
manages.
Each
may
face
conflicts
of
interest
in
fulfilling
its
responsibilities
to
all
such
funds.
Shareholder
reports
for
Principal
Funds,
Inc.
and
Principal
Exchange-Traded
Funds
can
be
found
at
www.principalfunds.com.
As
of
December
31,
2021,
series
of
the
Fund
owned
the
following
percentages,
in
aggregate,
of
the
outstanding
shares
of
the
Funds
listed
below:
Total
Percentage
of
Outstanding
Shares
Owned
Bond
Market
Index
Account
98.96
%
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
88
U.S.
Government
Agencies
or
Government-Sponsored
Enterprises.
Certain
of
the Funds
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 Funds'
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.
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):
Total
Percentage
of
Outstanding
Shares
Owned
Equity
Income
Account
23.35
%
Government
&
High
Quality
Bond
Account
32.99
LargeCap
S&P
500
Index
Account
80.46
LargeCap
S&P
500
Managed
Volatility
Index
Account
100.00
MidCap
Account
4.06
Asset
Derivatives
December
31,
2021
Liability
Derivatives
December
31,
2021
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
Credit
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
—
Payables,
Total
distributable
earnings
(accumulated
loss)
$
6
*
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
26
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
6
*
Total
$
26
*
$
12
*
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
61
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
16
*
LargeCap
Growth
Account
I
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
64
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
LargeCap
S&P
500
Index
Account
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
2,798
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
LargeCap
S&P
500
Managed
Volatility
Index
Account
Equity
contracts
Investment
in
securities—at
value,
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
822
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
421
Short-Term
Income
Account
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
4
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
*
Includes
cumulative
unrealized
appreciation/(depreciation)
of
exchange
traded
swaps
and
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.
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
89
The
following
table
includes
a
summary
of
the
average
quarterly
outstanding
notional
by
derivative
instrument
type
for
the year
ended
December
31,
2021 (amounts
in
thousands):
4.
Fair
Valuation
Fair
value
is
defined
as
the
price
that
the Funds
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 Funds
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.
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/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Swap
agreements
$
3
$
(6)
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
64
$
19
Total
$
67
$
13
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
660
$
27
LargeCap
Growth
Account
I
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
853
$
52
LargeCap
S&P
500
Index
Account
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
9,852
$
1.798
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
$
(991)
$
22
Short-Term
Income
Account
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
88
$
4
Contract
Type
Derivative
Type
Average
Notional
Core
Plus
Bond
Account
Credit
Contracts
Exchange
Cleared
Credit
Default
Swaps
-
Buy
Protection
$
8,240
Interest
Rate
Contracts
Futures
-
Long
4,671
Futures
-
Short
17,443
Government
&
High
Quality
Bond
Account
Interest
Rate
Contracts
Futures
-
Long
13,468
Futures
-
Short
7,405
LargeCap
Growth
Account
I
Equity
Contracts
Futures
-
Long
3,310
LargeCap
S&P
500
Index
Account
Equity
Contracts
Futures
-
Long
49,838
LargeCap
S&P
500
Managed
Volatility
Index
Account
Equity
Contracts
Futures
-
Long
3,735
Purchased
Options
28
Written
Options
28
Short-Term
Income
Account
Interest
Rate
Contracts
Futures
-
Short
4,678
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
90
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
Funds.
Unobservable
inputs
are
inputs
that
reflect
the
fund'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
Funds’
assumptions
in
determining
the
fair
value
of
investments).
Investments
which are
generally included
in
this
category
include
certain
common
stocks,
convertible
preferred
stocks,
corporate
bonds,
preferred
stocks
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
of
fair
value
requires
more
judgment.
Accordingly,
the
degree
of
judgment
exercised
by
the
Funds
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
Funds'
own
assumptions
are
set
to
reflect
those
that
market
participants
would
use
in
pricing
the
asset
or
liability
at
the
measurement
date.
The
Funds
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
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.
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,
2021
in
valuing
the
Funds'
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*
$
13,490
$
—
$
—
$
13,490
Investment
Companies
30
—
—
30
Total
investments
in
securities
$
13,520
$
—
$
—
$
13,520
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
91
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Bond
Market
Index
Account
Bonds*
$
—
$
917,285
$
—
$
917,285
Investment
Companies
304,867
—
—
304,867
Municipal
Bonds*
—
17,102
—
17,102
U.S.
Government
&
Government
Agency
Obligations*
—
1,908,741
—
1,908,741
Total
investments
in
securities
$
304,867
$
2,843,128
$
—
$
3,147,995
Core
Plus
Bond
Account
Bonds*
—
136,473
7
136,480
Common
Stocks
Energy
—
234
—
234
Investment
Companies
11,320
—
—
11,320
Senior
Floating
Rate
Interests*
—
3,862
—
3,862
U.S.
Government
&
Government
Agency
Obligations*
—
100,192
—
100,192
Total
investments
in
securities
$
11,320
$
240,761
$
7
$
252,088
Derivative
Assets
Interest
Rate
Contracts
Futures**
26
—
—
26
Derivative
Liabilities
Credit
Contracts
Exchange
Cleared
Credit
Default
Swaps**
—
(6)
—
(6)
Interest
Rate
Contracts
Futures**
(6)
—
—
(6)
Diversified
Balanced
Account
Investment
Companies
1,005,498
—
—
1,005,498
Total
investments
in
securities
$
1,005,498
$
—
$
—
$
1,005,498
Diversified
Balanced
Managed
Volatility
Account
Investment
Companies
184,122
—
—
184,122
Total
investments
in
securities
$
184,122
$
—
$
—
$
184,122
Diversified
Balanced
Volatility
Control
Account
Investment
Companies
229,911
—
—
229,911
Total
investments
in
securities
$
229,911
$
—
$
—
$
229,911
Diversified
Growth
Account
Investment
Companies
3,975,483
—
—
3,975,483
Total
investments
in
securities
$
3,975,483
$
—
$
—
$
3,975,483
Diversified
Growth
Managed
Volatility
Account
Investment
Companies
389,028
—
—
389,028
Total
investments
in
securities
$
389,028
$
—
$
—
$
389,028
Diversified
Growth
Volatility
Control
Account
Investment
Companies
1,278,471
—
—
1,278,471
Total
investments
in
securities
$
1,278,471
$
—
$
—
$
1,278,471
Diversified
Income
Account
Investment
Companies
326,851
—
—
326,851
Total
investments
in
securities
$
326,851
$
—
$
—
$
326,851
Diversified
International
Account
Common
Stocks
Basic
Materials
3,176
9,936
—
13,112
Communications
3,293
7,976
—
11,269
Consumer,
Cyclical
7,197
52,170
—
59,367
Consumer,
Non-cyclical
3,114
50,065
—
53,179
Energy
—
11,719
—
11,719
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
92
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Diversified
International
Account
Financial
$
14,206
$
47,226
$
—
$
61,432
Industrial
1,981
39,233
—
41,214
Technology
931
40,851
—
41,782
Utilities
1,236
4,534
—
5,770
Investment
Companies
1,753
—
—
1,753
Total
investments
in
securities
$
36,887
$
263,710
$
—
$
300,597
Equity
Income
Account
Common
Stocks*
745,508
—
—
745,508
Investment
Companies
11,060
—
—
11,060
Total
investments
in
securities
$
756,568
$
—
$
—
$
756,568
Government
&
High
Quality
Bond
Account
Bonds*
—
31,560
—
31,560
Investment
Companies
17,990
—
—
17,990
U.S.
Government
&
Government
Agency
Obligations*
—
204,704
—
204,704
Total
investments
in
securities
$
17,990
$
236,264
$
—
$
254,254
Derivative
Assets
Interest
Rate
Contracts
Futures**
61
—
—
61
Derivative
Liabilities
Interest
Rate
Contracts
Futures**
(16)
—
—
(16)
International
Emerging
Markets
Account
Common
Stocks
Basic
Materials
—
3,417
—
3,417
Communications
2,255
10,203
—
12,458
Consumer,
Cyclical
2,001
8,459
—
10,460
Consumer,
Non-cyclical
1,695
7,261
—
8,956
Energy
1,090
4,448
—
5,538
Financial
1,948
15,546
—
17,494
Industrial
1,410
6,920
—
8,330
Technology
806
19,465
—
20,271
Utilities
—
1,857
—
1,857
Investment
Companies
2,210
—
—
2,210
Preferred
Stocks
Financial
—
15
—
15
Technology
—
235
—
235
Total
investments
in
securities
$
13,415
$
77,826
$
—
$
91,241
LargeCap
Growth
Account
I
Common
Stocks
Basic
Materials
11,319
—
—
11,319
Communications
165,730
—
—
165,730
Consumer,
Cyclical
65,167
—
—
65,167
Consumer,
Non-cyclical
156,304
—
—
156,304
Energy
344
—
—
344
Financial
36,373
—
—
36,373
Industrial
24,728
—
—
24,728
Technology
232,341
—
379
232,720
Utilities
19
—
—
19
Convertible
Preferred
Stocks
Basic
Materials
—
—
203
203
Consumer,
Cyclical
—
—
229
229
Technology
—
—
694
694
Investment
Companies
18,729
—
—
18,729
Total
investments
in
securities
$
711,054
$
—
$
1,505
$
712,559
Derivative
Assets
Equity
Contracts
Futures**
64
—
—
64
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
93
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
LargeCap
S&P
500
Index
Account
Common
Stocks*
$
3,116,873
$
—
$
—
$
3,116,873
Investment
Companies
98,491
—
—
98,491
Total
investments
in
securities
$
3,215,364
$
—
$
—
$
3,215,364
Derivative
Assets
Equity
Contracts
Futures**
2,798
—
—
2,798
LargeCap
S&P
500
Managed
Volatility
Index
Account
Common
Stocks*
223,208
—
—
223,208
Investment
Companies
17,151
—
—
17,151
Purchased
Options
605
—
—
605
Total
investments
in
securities
$
240,964
$
—
$
—
$
240,964
Derivative
Assets
Equity
Contracts
Futures**
217
—
—
217
Derivative
Liabilities
Equity
Contracts
Written
Options
(421)
—
—
(421)
MidCap
Account
Common
Stocks
Basic
Materials
7,191
46
—
7,237
Communications
62,796
—
—
62,796
Consumer,
Cyclical
190,259
—
—
190,259
Consumer,
Non-cyclical
77,875
—
—
77,875
Financial
171,211
—
—
171,211
Industrial
97,112
—
—
97,112
Technology
125,033
—
—
125,033
Utilities
18,832
—
—
18,832
Investment
Companies
1,988
—
—
1,988
Total
investments
in
securities
$
752,297
$
46
$
—
$
752,343
Principal
Capital
Appreciation
Account
Common
Stocks
Basic
Materials
3,207
—
—
3,207
Communications
24,660
—
—
24,660
Consumer,
Cyclical
24,202
—
—
24,202
Consumer,
Non-cyclical
33,226
—
—
33,226
Energy
7,236
—
—
7,236
Financial
31,349
—
—
31,349
Industrial
11,936
2,074
—
14,010
Technology
50,946
—
—
50,946
Utilities
4,536
—
—
4,536
Investment
Companies
1,996
—
—
1,996
Total
investments
in
securities
$
193,294
$
2,074
$
—
$
195,368
Principal
LifeTime
2010
Account
Investment
Companies
37,301
—
—
37,301
Total
investments
in
securities
$
37,301
$
—
$
—
$
37,301
Principal
LifeTime
2020
Account
Investment
Companies
196,338
—
—
196,338
Total
investments
in
securities
$
196,338
$
—
$
—
$
196,338
Principal
LifeTime
2030
Account
Investment
Companies
262,869
—
—
262,869
Total
investments
in
securities
$
262,869
$
—
$
—
$
262,869
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
94
*For
additional
detail
regarding
sector
classifications,
please
see
the
schedules
of
investments.
**Exchange
cleared
swaps
and
futures
are
presented
at
the
unrealized
appreciation/(depreciation)
of
the
instrument.
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Principal
LifeTime
2040
Account
Investment
Companies
$
134,176
$
—
$
—
$
134,176
Total
investments
in
securities
$
134,176
$
—
$
—
$
134,176
Principal
LifeTime
2050
Account
Investment
Companies
68,531
—
—
68,531
Total
investments
in
securities
$
68,531
$
—
$
—
$
68,531
Principal
LifeTime
2060
Account
Investment
Companies
17,284
—
—
17,284
Total
investments
in
securities
$
17,284
$
—
$
—
$
17,284
Principal
LifeTime
Strategic
Income
Account
Investment
Companies
30,133
—
—
30,133
Total
investments
in
securities
$
30,133
$
—
$
—
$
30,133
Real
Estate
Securities
Account
Common
Stocks*
184,152
—
—
184,152
Investment
Companies
2,129
—
—
2,129
Total
investments
in
securities
$
186,281
$
—
$
—
$
186,281
SAM
Balanced
Portfolio
Investment
Companies
744,468
—
—
744,468
Total
investments
in
securities
$
744,468
$
—
$
—
$
744,468
SAM
Conservative
Balanced
Portfolio
Investment
Companies
203,593
—
—
203,593
Total
investments
in
securities
$
203,593
$
—
$
—
$
203,593
SAM
Conservative
Growth
Portfolio
Investment
Companies
434,457
—
—
434,457
Total
investments
in
securities
$
434,457
$
—
$
—
$
434,457
SAM
Flexible
Income
Portfolio
Investment
Companies
193,752
—
—
193,752
Total
investments
in
securities
$
193,752
$
—
$
—
$
193,752
SAM
Strategic
Growth
Portfolio
Investment
Companies
428,639
—
—
428,639
Total
investments
in
securities
$
428,639
$
—
$
—
$
428,639
Short-Term
Income
Account
Bonds*
—
129,463
—
129,463
Investment
Companies
2,288
—
—
2,288
U.S.
Government
&
Government
Agency
Obligations*
—
7,048
—
7,048
Total
investments
in
securities
$
2,288
$
136,511
$
—
$
138,799
Derivative
Assets
Interest
Rate
Contracts
Futures**
4
—
—
4
SmallCap
Account
Common
Stocks*
220,036
—
—
220,036
Investment
Companies
11,617
—
—
11,617
Total
investments
in
securities
$
231,653
$
—
$
—
$
231,653
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
95
At
the
end
of
the
year,
there
were
no
Funds
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
Funds
have
agreed
to
pay
management
and
investment
advisory
fees
to
the
Manager
computed
at
an
annual
percentage
rate
of
each
fund’s
average
daily
net
assets.
A
portion
of
the
management
fee
is
paid
by
the
Manager
to
the
sub-advisor
of
each
of
the
Funds,
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
management
and
investment
advisory
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
Funds
do
not
pay
management
and
investment
advisory
fees.
The
annual
rates
used
in
this
calculation
for
each
of
the
other
Funds
are
as
follows:
The
Manager
has
contractually
agreed
to
waive
certain
of
the
Funds'
management
and
investment
advisory
fees.
The
expense
waiver
will
reduce
the fund's
management
and
investment
advisory
fees.
The
waivers
are
expressed
as
a
percentage
of
average
daily
net
assets
on
an
annualized
basis
during
the
reporting
period.
The
waivers
are
as
follows:
The
Manager
has
contractually
agreed
to
limit
the
expenses
(excluding
interest
expense,
expenses
related
to fund
investments,
acquired
fund
fees
and
expenses,
and
tax
reclaim
recovery
expenses
and
other
extraordinary
expenses)
for
certain
classes
of
shares
of
certain
of
the
Funds.
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
Funds
through
the
fiscal
year
end,
provided
no
reimbursement
will
be
made
if
it
would
result
in
the
Funds
exceeding
the
total
operating
expense
limits.
Any
amounts
outstanding
at
the
end
of
the
year
are
shown
Net
Assets
of
Fund
(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
Government
&
High
Quality
Bond
Account
.50
.48
.46
.45
.44
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
Fund
(in
millions)
First
$250
Next
$250
Next
$250
Next
$250
Thereafter
Diversified
International
Account
.85%
.80%
.75%
.70%
.65%
International
Emerging
Markets
Account
1.10
1.05
1.00
.95
.90
Net
Assets
of
Fund
(in
millions)
First
$500
Over
$500
Blue
Chip
Account
.60%
.55%
Principal
Capital
Appreciation
Account
.625
.50
Short-Term
Income
Account
.45
.39
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,
2021
through
December
31,
2021
Expiration
LargeCap
Growth
Account
I
.016%
April
30,
2022
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
96
as
an
expense
reimbursement
from
Manager
or
expense
reimbursement
to
Manager
on
the
statements
of
assets
and
liabilities.
The
operating
expense
limits are
as
follows:
In
addition,
the
Manager
has
voluntarily
agreed
to
limit
the
expenses
(excluding
interest
expense,
expenses
related
to
fund
investments,
acquired
fund
fees
and
expenses,
and
tax
reclaim
recovery
expenses
and other
extraordinary
expenses)
attributable
to
Class
2
shares
of
certain
of
the
Funds.
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
Funds
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
Funds.
Distribution
fees
are
paid
to
Principal
Funds
Distributor,
Inc.
(an
affiliate
of
the
Manager),
the
principal
distributor
of
the
Funds.
A
portion
of
the
distribution
fees
may
be
paid
to
other
selling
dealers
for
providing
certain
services.
The
annual
distribution
fee
rate
is
.25%.
Administration
Service
Fees.
Class
3
shares
of
the
Funds
bear
administration
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
Funds.
Administration
fees
are
paid
to
Principal
Shareholder
Services,
Inc.
(an
affiliate
of
the
Manager),
the
principal
administrator
of
the
Funds.
The
annual
administration
service
fee
rate
is
.15%.
Chief
Compliance
Officer
Expenses.
The Funds
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 fund
and
is
shown
on
the
statements
of
operations.
Affiliated
Ownership.
At
December
31,
2021,
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
Funds as
follows
(amounts
in
thousands):
Period
from
January
1,
2021
through
December
31,
2021
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,
2022
International
Emerging
Markets
Account
1.20%
N/A
N/A
April
30,
2022
LargeCap
Growth
Account
I
.69
N/A
N/A
April
30,
2022
Principal
LifeTime
2060
Account
.10
N/A
N/A
April
30,
2022
Period
from
January
1,
2021
through
December
31,
2021
Class
2
Diversified
Income
Account
.31%
Class
1
Class
2
Class
3
Blue
Chip
Account
N/A
N/A
1,049
Bond
Market
Index
Account
2,801
N/A
N/A
Core
Plus
Bond
Account
20,066
N/A
N/A
Diversified
Balanced
Account
2,318
53,065
1
Diversified
Balanced
Managed
Volatility
Account
N/A
12,754
1
Diversified
Balanced
Volatility
Control
Account
N/A
17,320
1
Diversified
Growth
Account
N/A
183,287
1
Diversified
Growth
Managed
Volatility
Account
N/A
24,840
1
Diversified
Growth
Volatility
Control
Account
N/A
90,776
1
Diversified
Income
Account
N/A
21,436
—
Diversified
International
Account
15,425
N/A
N/A
Equity
Income
Account
11,271
386
—
Government
&
High
Quality
Bond
Account
13,599
N/A
N/A
International
Emerging
Markets
Account
4,617
N/A
N/A
LargeCap
Growth
Account
I
13,183
N/A
N/A
LargeCap
S&P
500
Index
Account
22,714
1,856
N/A
MidCap
Account
8,926
180
N/A
Principal
Capital
Appreciation
Account
3,303
311
N/A
Principal
LifeTime
2010
Account
2,782
N/A
N/A
Principal
LifeTime
2020
Account
12,926
N/A
N/A
Principal
LifeTime
2030
Account
16,848
N/A
N/A
Principal
LifeTime
2040
Account
6,729
N/A
N/A
Principal
LifeTime
2050
Account
3,496
N/A
N/A
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
97
6.
Investment
Transactions
For
the year ended
December
31,
2021,
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 Funds
were
as
follows
(amounts
in
thousands):
For
the year
ended December
31,
2021,
the
cost
of
U.S.
government
securities
purchased
and
proceeds
from
U.S.
government
securities
sold
(not
including
short-term
investments)
by
the Funds
were
as
follows
(amounts
in
thousands):
Class
1
Class
2
Class
3
Principal
LifeTime
2060
Account
919
N/A
N/A
Principal
LifeTime
Strategic
Income
Account
2,387
N/A
N/A
Real
Estate
Securities
Account
7,027
458
N/A
SAM
Balanced
Portfolio
30,238
2,176
N/A
SAM
Conservative
Balanced
Portfolio
12,218
1,238
N/A
SAM
Conservative
Growth
Portfolio
8,524
1,216
N/A
SAM
Flexible
Income
Portfolio
10,843
2,550
N/A
SAM
Strategic
Growth
Portfolio
7,588
846
N/A
Short-Term
Income
Account
54,633
N/A
N/A
SmallCap
Account
10,425
265
N/A
Purchases
Sales
Blue
Chip
Account
$
7,845
$
988
Bond
Market
Index
Account
2,570,561
2,460,016
Core
Plus
Bond
Account
270,340
302,331
Diversified
Balanced
Account
145,195
212,885
Diversified
Balanced
Managed
Volatility
Account
34,702
42,767
Diversified
Balanced
Volatility
Control
Account
117,761
98,462
Diversified
Growth
Account
575,920
758,258
Diversified
Growth
Managed
Volatility
Account
67,414
79,789
Diversified
Growth
Volatility
Control
Account
737,454
647,868
Diversified
Income
Account
81,530
86,398
Diversified
International
Account
108,732
123,912
Equity
Income
Account
70,900
245,668
Government
&
High
Quality
Bond
Account
484,644
493,989
International
Emerging
Markets
Account
33,772
38,218
LargeCap
Growth
Account
I
144,875
188,065
LargeCap
S&P
500
Index
Account
78,752
553,992
LargeCap
S&P
500
Managed
Volatility
Index
Account
5,889
55,858
MidCap
Account
114,512
147,523
Principal
Capital
Appreciation
Account
53,995
67,643
Principal
LifeTime
2010
Account
10,946
9,599
Principal
LifeTime
2020
Account
45,843
49,373
Principal
LifeTime
2030
Account
88,834
66,117
Principal
LifeTime
2040
Account
45,701
24,333
Principal
LifeTime
2050
Account
33,169
17,139
Principal
LifeTime
2060
Account
8,742
3,690
Principal
LifeTime
Strategic
Income
Account
10,930
11,565
Real
Estate
Securities
Account
36,457
39,543
SAM
Balanced
Portfolio
281,693
322,606
SAM
Conservative
Balanced
Portfolio
82,223
88,868
SAM
Conservative
Growth
Portfolio
179,532
188,326
SAM
Flexible
Income
Portfolio
82,797
82,619
SAM
Strategic
Growth
Portfolio
159,937
140,587
Short-Term
Income
Account
70,003
71,666
SmallCap
Account
81,020
106,142
Purchases
Sales
Bond
Market
Index
Account
$
1,363,939
$
1,207,210
Core
Plus
Bond
Account
90,680
100,761
Government
&
High
Quality
Bond
Account
277,148
285,686
Short-Term
Income
Account
8,791
9,350
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
98
7.
Federal
Tax
Information
Distributions
to
Shareholders.
The
federal
income
tax
character
of
distributions
paid
for
the years
ended December
31,
2021 and
December
31,
2020 were
as
follows
(amounts
in
thousands):
*The
Funds
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).
Certain
Funds
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,
2021,
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*
2021
2020
2021
2020
Blue
Chip
Account
$
88
$
—
$
2
$
—
Bond
Market
Index
Account
60,596
66,635
4,501
—
Core
Plus
Bond
Account
12,218
9,503
12
—
Diversified
Balanced
Account
28,150
24,559
43,719
29,770
Diversified
Balanced
Managed
Volatility
Account
4,631
3,789
2,573
6,025
Diversified
Balanced
Volatility
Control
Account
5,290
3,190
795
1,297
Diversified
Growth
Account
96,364
80,741
154,365
110,087
Diversified
Growth
Managed
Volatility
Account
8,754
7,464
6,515
14,949
Diversified
Growth
Volatility
Control
Account
24,199
17,491
6,827
9,313
Diversified
Income
Account
8,098
6,762
5,446
4,037
Diversified
International
Account
3,880
6,493
1,423
—
Equity
Income
Account
14,234
15,534
413
19,615
Government
&
High
Quality
Bond
Account
4,266
5,987
—
—
International
Emerging
Markets
Account
421
1,960
1,430
—
LargeCap
Growth
Account
I
8,155
3,033
70,755
29,011
LargeCap
S&P
500
Index
Account
49,598
51,542
243,479
159,258
LargeCap
S&P
500
Managed
Volatility
Index
Account
7,341
3,444
19,494
4,904
MidCap
Account
832
3,984
44,094
53,763
Principal
Capital
Appreciation
Account
1,798
2,350
6,617
6,714
Principal
LifeTime
2010
Account
1,193
887
1,413
510
Principal
LifeTime
2020
Account
4,268
5,542
10,092
2,332
Principal
LifeTime
2030
Account
5,514
4,185
6,649
3,259
Principal
LifeTime
2040
Account
2,447
1,831
3,207
1,789
Principal
LifeTime
2050
Account
1,109
794
1,580
890
Principal
LifeTime
2060
Account
288
151
238
195
Principal
LifeTime
Strategic
Income
Account
887
686
968
—
Real
Estate
Securities
Account
2,299
2,794
10,480
7,790
SAM
Balanced
Portfolio
11,456
14,711
15,016
19,998
SAM
Conservative
Balanced
Portfolio
3,678
4,519
2,577
3,128
SAM
Conservative
Growth
Portfolio
4,710
6,417
8,342
5,243
SAM
Flexible
Income
Portfolio
4,511
5,111
2,801
3,761
SAM
Strategic
Growth
Portfolio
3,534
5,611
8,786
7,049
Short-Term
Income
Account
2,921
3,166
11
—
SmallCap
Account
4,950
838
2,532
12,504
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Accumulated
Losses
Net
Unrealized
Appreciation
(Depreciation)
Other
Temporary
Differences*
Total
Accumulated
Earnings
(Deficit)
Blue
Chip
Account
$
—
$
13
$
—
$
1,482
$
—
$
1,495
Bond
Market
Index
Account
53,034
2,289
—
64,710
—
120,033
Core
Plus
Bond
Account
6,361
2,263
—
2,923
(17
)
11,530
Diversified
Balanced
Account
20,652
71,156
—
308,480
—
400,288
Diversified
Balanced
Managed
Volatility
Account
4,379
11,499
—
36,309
—
52,187
Diversified
Balanced
Volatility
Control
Account
11,935
4,212
—
18,479
(66
)
34,560
Diversified
Growth
Account
82,168
276,352
—
1,377,274
—
1,735,794
Diversified
Growth
Managed
Volatility
Account
9,754
25,974
—
92,897
—
128,625
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
99
*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
Funds.
As
of December
31,
2021,
the Funds had
approximate
net
capital
loss
carryforwards
as
follows
(amounts
in
thousands):
All
of
these
capital
losses
were
generated
in
the
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,
2021,
the
Funds
did
not
utilize
capital
loss
carryforwards.
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 fund's
taxable
year
subsequent
to
October 31.
For
the
taxable
year
ended
December
31,
2021
,
the
Funds
do
not
plan
to
defer
any
late-year
losses.
Reclassification
of
Capital
Accounts.
The
Funds
may
record
reclassifications
in
their
capital
accounts.
These
reclassifications
have
no
impact
on
the
total
net
assets
of
the
Funds.
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 Funds'
distributions
may
be
shown
in
the
accompanying
statements
of
changes
in
net
assets
as
from
net
investment
income
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,
2021,
the
Funds
recorded
reclassifications
as
follows
(amounts
in
thousands):
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Accumulated
Losses
Net
Unrealized
Appreciation
(Depreciation)
Other
Temporary
Differences*
Total
Accumulated
Earnings
(Deficit)
Diversified
Growth
Volatility
Control
Account
67,129
33,791
—
136,691
(620
)
236,991
Diversified
Income
Account
7,315
12,539
—
59,465
—
79,319
Diversified
International
Account
6,556
23,295
—
78,151
—
108,002
Equity
Income
Account
30,295
60,326
—
408,803
—
499,424
Government
&
High
Quality
Bond
Account
2,203
—
(9,519
)
(650
)
(28
)
(7,994
)
International
Emerging
Markets
Account
2,586
5,557
—
18,564
—
26,707
LargeCap
Growth
Account
I
6,216
53,721
—
310,723
—
370,660
LargeCap
S&P
500
Index
Account
41,627
282,767
—
1,671,962
—
1,996,356
LargeCap
S&P
500
Managed
Volatility
Index
Account
2,090
19,413
—
115,120
(14,131
)
122,492
MidCap
Account
1,712
62,845
—
358,054
—
422,611
Principal
Capital
Appreciation
Account
5,175
15,516
—
108,754
—
129,445
Principal
LifeTime
2010
Account
1,060
1,397
—
3,027
—
5,484
Principal
LifeTime
2020
Account
6,677
10,079
—
25,994
—
42,750
Principal
LifeTime
2030
Account
8,528
14,279
—
41,686
—
64,493
Principal
LifeTime
2040
Account
4,193
8,107
—
23,351
—
35,651
Principal
LifeTime
2050
Account
2,200
4,610
—
11,964
—
18,774
Principal
LifeTime
2060
Account
522
1,122
—
2,493
—
4,137
Principal
LifeTime
Strategic
Income
Account
926
1,091
—
1,940
—
3,957
Real
Estate
Securities
Account
3,318
9,215
—
64,445
—
76,978
SAM
Balanced
Portfolio
21,416
74,884
—
167,018
—
263,318
SAM
Conservative
Balanced
Portfolio
5,815
14,870
—
30,702
—
51,387
SAM
Conservative
Growth
Portfolio
12,087
35,690
—
115,758
—
163,535
SAM
Flexible
Income
Portfolio
6,577
10,410
—
14,811
—
31,798
SAM
Strategic
Growth
Portfolio
9,750
36,153
—
106,390
—
152,293
Short-Term
Income
Account
1,611
199
—
40
(6
)
1,844
SmallCap
Account
6,011
26,211
—
58,471
—
90,693
Short-Term
Long-Term
Total
Government
&
High
Quality
Bond
Account
$
1,577
$
7,942
$
9,519
Total
Distributable
Earnings
(Accumulated
Loss)
Capital
Shares
and
Additional
Paid-in-Capital
Diversified
Balanced
Account
$
(9,050)
$
9,050
Diversified
Growth
Account
(26,814)
26,814
Diversified
Growth
Managed
Volatility
Account
(2,440)
2,440
7.
Federal
Tax
Information
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
100
Federal
Income
Tax
Basis.
As
of December
31,
2021, the
net
federal
income
tax
unrealized
appreciation
(depreciation)
and
federal
tax
cost
of
investments
held
by
the
Funds
were
as
follows
(amounts
in
thousands):
8.
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.
Total
Distributable
Earnings
(Accumulated
Loss)
Capital
Shares
and
Additional
Paid-in-Capital
Diversified
International
Account
$
(2,080)
$
2,080
Equity
Income
Account
(14,243)
14,243
LargeCap
Growth
Account
I
(8,456)
8,456
LargeCap
S&P
500
Index
Account
(55,728)
55,728
LargeCap
S&P
500
Managed
Volatility
Index
Account
(2,169)
2,169
MidCap
Account
(6,171)
6,171
Principal
Capital
Appreciation
Account
(1,946)
1,946
Real
Estate
Securities
Account
(1,763)
1,763
SAM
Balanced
Portfolio
(5,413)
5,413
SAM
Conservative
Growth
Portfolio
(2,230)
2,230
SAM
Strategic
Growth
Portfolio
(1,343)
1,343
SmallCap
Account
(2,932)
2,932
Unrealized
Appreciation
Unrealized
(Depreciation)
Net
Unrealized
Appreciation/
(Depreciation)
Cost
for
Federal
Income
Tax
Purposes
Blue
Chip
Account
$
1,811
$
(329)
$
1,482
$
12,038
Bond
Market
Index
Account
92,453
(27,743)
64,710
3,083,285
Core
Plus
Bond
Account
5,473
(2,550)
2,923
249,179
Diversified
Balanced
Account
311,702
(3,222)
308,480
697,018
Diversified
Balanced
Managed
Volatility
Account
37,020
(711)
36,309
147,813
Diversified
Balanced
Volatility
Control
Account
20,025
(1,546)
18,479
211,432
Diversified
Growth
Account
1,390,631
(13,357)
1,377,274
2,598,209
Diversified
Growth
Managed
Volatility
Account
94,337
(1,440)
92,897
296,131
Diversified
Growth
Volatility
Control
Account
144,112
(7,421)
136,691
1,141,780
Diversified
Income
Account
61,704
(2,239)
59,465
267,386
Diversified
International
Account
84,190
(6,031)
78,159
222,438
Equity
Income
Account
413,509
(4,706)
408,803
347,765
Government
&
High
Quality
Bond
Account
3,090
(3,740)
(650)
254,949
International
Emerging
Markets
Account
25,363
(6,807)
18,556
72,685
LargeCap
Growth
Account
I
328,950
(18,227)
310,723
401,900
LargeCap
S&P
500
Index
Account
1,744,711
(72,749)
1,671,962
1,546,200
LargeCap
S&P
500
Managed
Volatility
Index
Account
121,803
(6,683)
115,120
125,640
MidCap
Account
362,769
(4,714)
358,055
394,288
Principal
Capital
Appreciation
Account
110,537
(1,783)
108,754
86,614
Principal
LifeTime
2010
Account
3,677
(650)
3,027
34,274
Principal
LifeTime
2020
Account
29,243
(3,249)
25,994
170,344
Principal
LifeTime
2030
Account
44,126
(2,440)
41,686
221,183
Principal
LifeTime
2040
Account
25,210
(1,859)
23,351
110,825
Principal
LifeTime
2050
Account
13,256
(1,292)
11,964
56,567
Principal
LifeTime
2060
Account
2,794
(301)
2,493
14,791
Principal
LifeTime
Strategic
Income
Account
2,560
(620)
1,940
28,193
Real
Estate
Securities
Account
66,847
(2,402)
64,445
121,836
SAM
Balanced
Portfolio
173,230
(6,212)
167,018
577,450
SAM
Conservative
Balanced
Portfolio
33,076
(2,374)
30,702
172,891
SAM
Conservative
Growth
Portfolio
119,880
(4,122)
115,758
318,699
SAM
Flexible
Income
Portfolio
17,732
(2,921)
14,811
178,941
SAM
Strategic
Growth
Portfolio
111,350
(4,960)
106,390
322,249
Short-Term
Income
Account
976
(936)
40
138,763
SmallCap
Account
75,660
(17,189)
58,471
173,257
7.
Federal
Tax
Information
(continued)
Schedule
of
Investments
Blue
Chip
Account
December
31,
2021
See
accompanying
notes.
101
INVESTMENT
COMPANIES
-
0
.22
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0
.22
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
29,704
$
30
TOTAL
INVESTMENT
COMPANIES
$
30
COMMON
STOCKS
-
99
.82
%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
4
.00
%
TransDigm
Group
Inc
(b)
850
$
541
Chemicals
-
1
.46
%
Linde
PLC
406
140
Sherwin-Williams
Co/The
161
57
$
197
Commercial
Services
-
5
.19
%
CoStar
Group
Inc
(b)
2,208
174
PayPal
Holdings
Inc
(b)
1,966
371
S&P
Global
Inc
331
156
$
701
Diversified
Financial
Services
-
8
.92
%
Brookfield
Asset
Management
Reinsurance
Partners
Ltd
(b)
75
5
Charles
Schwab
Corp/The
1,556
131
Mastercard
Inc
1,823
655
Visa
Inc
1,916
415
$
1,206
Healthcare
-
Products
-
6
.47
%
Danaher
Corp
1,494
492
IDEXX
Laboratories
Inc
(b)
152
100
Intuitive
Surgical
Inc
(b)
786
282
$
874
Insurance
-
0
.71
%
Progressive
Corp/The
932
96
Internet
-
22
.89
%
Alphabet
Inc
-
A
Shares
(b)
56
162
Alphabet
Inc
-
C
Shares
(b)
251
726
Amazon.com
Inc
(b)
333
1,111
Etsy
Inc
(b)
406
89
Meta
Platforms
Inc
(b)
1,627
547
Netflix
Inc
(b)
688
415
Spotify
Technology
SA
(b)
184
43
$
3,093
Lodging
-
1
.38
%
Hilton
Worldwide
Holdings
Inc
(b)
1,202
187
Media
-
3
.02
%
Charter
Communications
Inc
(b)
480
313
Liberty
Broadband
Corp
-
C
Shares
(b)
587
95
$
408
Pharmaceuticals
-
1
.07
%
Zoetis
Inc
596
145
Private
Equity
-
6
.16
%
Brookfield
Asset
Management
Inc
11,334
684
KKR
&
Co
Inc
1,981
148
$
832
REITs
-
3
.84
%
American
Tower
Corp
1,774
519
Retail
-
3
.01
%
CarMax
Inc
(b)
660
86
Costco
Wholesale
Corp
221
125
O'Reilly
Automotive
Inc
(b)
102
72
Starbucks
Corp
1,057
124
$
407
Semiconductors
-
4
.36
%
NVIDIA
Corp
2,004
589
Software
-
27
.34
%
Adobe
Inc
(b)
1,061
601
Autodesk
Inc
(b)
623
175
Intuit
Inc
925
595
Microsoft
Corp
3,948
1,328
Roper
Technologies
Inc
421
207
salesforce.com
Inc
(b)
2,258
574
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
Snowflake
Inc
-
Class
A
(b)
70
$
24
Twilio
Inc
(b)
724
191
$
3,695
TOTAL
COMMON
STOCKS
$
13,490
Total
Investments
$
13,520
Other
Assets
and
Liabilities
- (0.04)%
(
5
)
TOTAL
NET
ASSETS
-
100.00%
$
13,515
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
31
.70
%
Communications
25
.91
%
Financial
19
.63
%
Consumer,
Non-cyclical
12
.73
%
Consumer,
Cyclical
4
.39
%
Industrial
4
.00
%
Basic
Materials
1
.46
%
Money
Market
Funds
0
.22
%
Other
Assets
and
Liabilities
(
0
.04
)
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Blue
Chip
Account
December
31,
2021
See
accompanying
notes.
102
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
6
$
4,819
$
4,795
$
30
$
6
$
4,819
$
4,795
$
30
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,
2021
See
accompanying
notes.
103
INVESTMENT
COMPANIES
-
10.51%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0.49%
iShares
iBoxx
$
Investment
Grade
Corporate
Bond
ETF
(a)
85,000
$
11,264
Vanguard
Short-Term
Corporate
Bond
ETF
(a)
35,000
2,844
$
14,108
Money
Market
Funds
-
10.02%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.03%
(b),(c)
5,679,140
5,680
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(b),(c),(d),(e)
285,079,206
285,079
$
290,759
TOTAL
INVESTMENT
COMPANIES
$
304,867
BONDS
-
31.62%
Principal
Amount
(000's)
Value
(000's)
Advertising
-
0.04%
Interpublic
Group
of
Cos
Inc/The
2.40%,
03/01/2031
$
190
$
189
5.40%,
10/01/2048
300
407
Omnicom
Group
Inc
2.45%,
04/30/2030
160
160
2.60%,
08/01/2031
295
299
$
1,055
Aerospace
&
Defense
-
0.60%
Boeing
Co/The
1.43%,
02/04/2024
810
809
2.75%,
02/01/2026
175
180
2.95%,
02/01/2030
170
173
3.25%,
02/01/2028
1,200
1,250
3.25%,
02/01/2035
170
171
3.63%,
02/01/2031
175
187
3.75%,
02/01/2050
235
244
3.95%,
08/01/2059
315
327
4.51%,
05/01/2023
970
1,013
4.88%,
05/01/2025
620
678
5.04%,
05/01/2027
310
349
5.15%,
05/01/2030
310
361
5.71%,
05/01/2040
310
398
5.81%,
05/01/2050
505
684
5.88%,
02/15/2040
154
197
General
Dynamics
Corp
1.15%,
06/01/2026
195
193
2.25%,
06/01/2031
195
198
3.25%,
04/01/2025
80
85
3.38%,
05/15/2023
300
310
3.50%,
04/01/2027
160
174
3.75%,
05/15/2028
300
331
4.25%,
04/01/2040
160
195
L3Harris
Technologies
Inc
1.80%,
01/15/2031
90
86
2.90%,
12/15/2029
60
62
3.83%,
04/27/2025
500
533
Lockheed
Martin
Corp
1.85%,
06/15/2030
55
54
3.55%,
01/15/2026
240
260
3.60%,
03/01/2035
350
391
3.80%,
03/01/2045
625
714
4.07%,
12/15/2042
47
55
4.09%,
09/15/2052
389
481
4.70%,
05/15/2046
25
33
Northrop
Grumman
Corp
3.20%,
02/01/2027
500
531
3.85%,
04/15/2045
500
567
4.03%,
10/15/2047
600
708
Raytheon
Technologies
Corp
1.90%,
09/01/2031
170
164
2.25%,
07/01/2030
160
160
2.38%,
03/15/2032
195
195
2.82%,
09/01/2051
175
169
3.03%,
03/15/2052
195
196
3.50%,
03/15/2027
800
857
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Aerospace
&
Defense
(continued)
Raytheon
Technologies
Corp
(continued)
3.75%,
11/01/2046
$
30
$
33
4.05%,
05/04/2047
300
347
4.13%,
11/16/2028
435
487
4.15%,
05/15/2045
40
47
4.35%,
04/15/2047
40
49
4.50%,
06/01/2042
600
742
4.63%,
11/16/2048
210
269
4.88%,
10/15/2040
154
194
Teledyne
Technologies
Inc
0.95%,
04/01/2024
190
188
2.25%,
04/01/2028
190
190
$
17,269
Agriculture
-
0.29%
Altria
Group
Inc
2.35%,
05/06/2025
160
164
2.45%,
02/04/2032
190
180
3.40%,
05/06/2030
325
336
3.70%,
02/04/2051
190
177
3.88%,
09/16/2046
60
58
4.00%,
02/04/2061
190
181
4.80%,
02/14/2029
63
71
5.80%,
02/14/2039
380
457
Archer-Daniels-Midland
Co
2.50%,
08/11/2026
850
884
2.70%,
09/15/2051
195
196
BAT
Capital
Corp
2.26%,
03/25/2028
170
166
2.73%,
03/25/2031
170
165
2.79%,
09/06/2024
245
252
3.46%,
09/06/2029
245
254
3.56%,
08/15/2027
800
839
3.98%,
09/25/2050
170
163
4.54%,
08/15/2047
325
340
BAT
International
Finance
PLC
1.67%,
03/25/2026
170
167
Bunge
Ltd
Finance
Corp
2.75%,
05/14/2031
195
198
Philip
Morris
International
Inc
0.88%,
05/01/2026
175
169
1.75%,
11/01/2030
175
166
2.75%,
02/25/2026
310
322
3.25%,
11/10/2024
30
32
3.38%,
08/11/2025
375
398
4.13%,
03/04/2043
300
332
4.25%,
11/10/2044
30
34
4.38%,
11/15/2041
61
69
4.50%,
03/20/2042
400
463
4.88%,
11/15/2043
35
43
Reynolds
American
Inc
4.45%,
06/12/2025
250
270
4.85%,
09/15/2023
350
371
5.70%,
08/15/2035
25
30
5.85%,
08/15/2045
415
504
$
8,451
Airlines
-
0.04%
American
Airlines
2019-1
Class
AA
Pass
Through
Trust
3.15%,
08/15/2033
156
158
Delta
Air
Lines
2020-1
Class
AA
Pass
Through
Trust
2.00%,
06/10/2028
291
285
Southwest
Airlines
Co
5.25%,
05/04/2025
480
533
United
Airlines
2014-2
Class
A
Pass
Through
Trust
3.75%,
03/03/2028
133
138
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
104
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Airlines
(continued)
United
Airlines
2019-2
Class
AA
Pass
Through
Trust
2.70%,
11/01/2033
$
75
$
74
$
1,188
Apparel
-
0.05%
NIKE
Inc
2.25%,
05/01/2023
200
204
2.40%,
03/27/2025
160
166
2.75%,
03/27/2027
160
169
3.25%,
03/27/2040
160
174
3.38%,
11/01/2046
350
389
3.63%,
05/01/2043
200
228
$
1,330
Automobile
Asset
Backed
Securities
-
0.00%
World
Omni
Auto
Receivables
Trust
2018-A
2.50%,
04/17/2023
9
9
Automobile
Manufacturers
-
0.41%
American
Honda
Finance
Corp
0.55%,
07/12/2024
190
188
0.65%,
09/08/2023
170
170
1.20%,
07/08/2025
165
164
1.30%,
09/09/2026
195
193
1.95%,
05/10/2023
160
163
2.05%,
01/10/2023
490
497
2.15%,
09/10/2024
445
456
Daimler
Finance
North
America
LLC
8.50%,
01/18/2031
127
189
General
Motors
Co
4.88%,
10/02/2023
675
717
5.00%,
10/01/2028
400
459
5.00%,
04/01/2035
200
236
5.40%,
04/01/2048
360
459
6.75%,
04/01/2046
25
36
General
Motors
Financial
Co
Inc
1.05%,
03/08/2024
190
189
1.20%,
10/15/2024
175
174
1.25%,
01/08/2026
190
186
1.50%,
06/10/2026
190
187
1.70%,
08/18/2023
330
333
2.35%,
01/08/2031
190
185
2.40%,
04/10/2028
190
191
2.40%,
10/15/2028
175
175
2.70%,
06/10/2031
190
189
3.25%,
01/05/2023
400
409
3.70%,
05/09/2023
325
335
4.30%,
07/13/2025
325
350
4.35%,
01/17/2027
305
336
5.10%,
01/17/2024
500
536
PACCAR
Financial
Corp
0.35%,
08/11/2023
165
164
0.35%,
02/02/2024
190
187
1.80%,
02/06/2025
170
172
Toyota
Motor
Corp
1.34%,
03/25/2026
385
383
3.67%,
07/20/2028
200
221
Toyota
Motor
Credit
Corp
0.45%,
01/11/2024
190
188
0.50%,
08/14/2023
165
164
0.50%,
06/18/2024
190
187
0.80%,
10/16/2025
210
205
1.15%,
08/13/2027
165
160
1.35%,
08/25/2023
155
156
1.65%,
01/10/2031
190
183
1.80%,
02/13/2025
160
162
1.90%,
09/12/2031
195
191
2.00%,
10/07/2024
165
169
2.25%,
10/18/2023
350
359
3.35%,
01/08/2024
400
419
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Manufacturers
(continued)
Toyota
Motor
Credit
Corp
(continued)
3.45%,
09/20/2023
$
400
$
418
$
11,790
Automobile
Parts
&
Equipment
-
0.02%
BorgWarner
Inc
3.38%,
03/15/2025
(a)
500
527
Banks
-
5.98%
Banco
Santander
SA
1.85%,
03/25/2026
400
398
2.75%,
05/28/2025
200
207
2.75%,
12/03/2030
400
391
3.13%,
02/23/2023
600
614
3.22%,
11/22/2032
(f)
200
200
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.60%
3.49%,
05/28/2030
200
211
Bank
of
America
Corp
0.52%,
06/14/2024
(f)
365
363
Secured
Overnight
Financing
Rate
+
0.41%
0.81%,
10/24/2024
(f)
340
338
Secured
Overnight
Financing
Rate
+
0.74%
0.98%,
04/22/2025
(f)
380
377
Secured
Overnight
Financing
Rate
+
0.69%
0.98%,
09/25/2025
(f)
170
168
Secured
Overnight
Financing
Rate
+
0.91%
1.32%,
06/19/2026
(f)
320
317
Secured
Overnight
Financing
Rate
+
1.15%
1.66%,
03/11/2027
(f)
365
362
Secured
Overnight
Financing
Rate
+
0.91%
1.73%,
07/22/2027
(f)
380
377
Secured
Overnight
Financing
Rate
+
0.96%
1.90%,
07/23/2031
(f)
750
718
Secured
Overnight
Financing
Rate
+
1.53%
1.92%,
10/24/2031
(f)
340
326
Secured
Overnight
Financing
Rate
+
1.37%
2.09%,
06/14/2029
(f)
190
189
Secured
Overnight
Financing
Rate
+
1.06%
2.30%,
07/21/2032
(f)
380
374
Secured
Overnight
Financing
Rate
+
1.22%
2.46%,
10/22/2025
(f)
310
318
3
Month
USD
LIBOR
+
0.87%
2.48%,
09/21/2036
(f)
385
373
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.20%
2.50%,
02/13/2031
(f)
320
321
3
Month
USD
LIBOR
+
0.99%
2.57%,
10/20/2032
(f)
355
357
Secured
Overnight
Financing
Rate
+
1.21%
2.59%,
04/29/2031
(f)
250
253
Secured
Overnight
Financing
Rate
+
2.15%
2.65%,
03/11/2032
(f)
570
577
Secured
Overnight
Financing
Rate
+
1.22%
2.68%,
06/19/2041
(f)
1,070
1,030
Secured
Overnight
Financing
Rate
+
1.93%
2.83%,
10/24/2051
(f)
880
864
Secured
Overnight
Financing
Rate
+
1.88%
2.97%,
07/21/2052
(f)
380
381
Secured
Overnight
Financing
Rate
+
1.56%
3.19%,
07/23/2030
(f)
335
353
3
Month
USD
LIBOR
+
1.18%
3.25%,
10/21/2027
40
43
3.30%,
01/11/2023
330
339
3.31%,
04/22/2042
(f)
380
399
Secured
Overnight
Financing
Rate
+
1.58%
3.42%,
12/20/2028
(f)
1,041
1,111
3
Month
USD
LIBOR
+
1.04%
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
105
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Bank
of
America
Corp
(continued)
3.48%,
03/13/2052
(f)
$
190
$
210
Secured
Overnight
Financing
Rate
+
1.65%
3.50%,
04/19/2026
795
856
3.55%,
03/05/2024
(f)
550
566
3
Month
USD
LIBOR
+
0.78%
3.59%,
07/21/2028
(f)
500
538
3
Month
USD
LIBOR
+
1.37%
3.82%,
01/20/2028
(f)
400
433
3
Month
USD
LIBOR
+
1.58%
3.86%,
07/23/2024
(f)
300
313
3
Month
USD
LIBOR
+
0.94%
3.88%,
08/01/2025
30
33
3.95%,
04/21/2025
830
887
3.97%,
02/07/2030
(f)
1,000
1,102
3
Month
USD
LIBOR
+
1.21%
4.13%,
01/22/2024
500
531
4.18%,
11/25/2027
560
613
4.20%,
08/26/2024
625
670
4.27%,
07/23/2029
(f)
360
401
3
Month
USD
LIBOR
+
1.31%
4.33%,
03/15/2050
(f)
310
383
3
Month
USD
LIBOR
+
1.52%
4.44%,
01/20/2048
(f)
30
37
3
Month
USD
LIBOR
+
1.99%
5.00%,
01/21/2044
25
33
5.88%,
02/07/2042
228
324
7.75%,
05/14/2038
250
392
Bank
of
America
NA
6.00%,
10/15/2036
250
343
Bank
of
Montreal
0.45%,
12/08/2023
995
985
0.95%,
01/22/2027
(f)
190
184
Secured
Overnight
Financing
Rate
+
0.60%
1.85%,
05/01/2025
150
152
3.30%,
02/05/2024
400
419
Bank
of
New
York
Mellon
Corp/The
0.35%,
12/07/2023
150
149
0.50%,
04/26/2024
170
168
0.75%,
01/28/2026
185
180
1.60%,
04/24/2025
140
141
1.65%,
07/14/2028
150
149
1.85%,
01/27/2023
790
801
2.10%,
10/24/2024
775
795
Bank
of
Nova
Scotia/The
0.55%,
09/15/2023
170
169
1.05%,
03/02/2026
190
185
1.30%,
06/11/2025
160
159
1.30%,
09/15/2026
195
191
2.15%,
08/01/2031
190
189
2.70%,
08/03/2026
170
177
3.40%,
02/11/2024
400
420
4.50%,
12/16/2025
500
549
Barclays
PLC
1.01%,
12/10/2024
(f)
200
199
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.80%
2.28%,
11/24/2027
(f)
420
421
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.05%
2.65%,
06/24/2031
(f)
320
319
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.90%
2.67%,
03/10/2032
(f)
200
198
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.20%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Barclays
PLC
(continued)
3.56%,
09/23/2035
(f)
$
200
$
205
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.90%
3.68%,
01/10/2023
1,700
1,701
3.81%,
03/10/2042
(f)
200
213
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.70%
4.34%,
01/10/2028
1,030
1,125
4.38%,
01/12/2026
200
219
4.97%,
05/16/2029
(f)
210
240
3
Month
USD
LIBOR
+
1.90%
BNP
Paribas
SA
4.25%,
10/15/2024
750
809
BPCE
SA
4.00%,
04/15/2024
250
266
Canadian
Imperial
Bank
of
Commerce
0.50%,
12/14/2023
185
183
0.95%,
06/23/2023
70
70
1.25%,
06/22/2026
190
185
3.50%,
09/13/2023
500
523
Citibank
NA
3.65%,
01/23/2024
500
526
Citigroup
Inc
0.78%,
10/30/2024
(f)
655
651
Secured
Overnight
Financing
Rate
+
0.69%
0.98%,
05/01/2025
(f)
485
481
Secured
Overnight
Financing
Rate
+
0.67%
1.12%,
01/28/2027
(f)
185
180
Secured
Overnight
Financing
Rate
+
0.77%
1.28%,
11/03/2025
(f)
145
145
Secured
Overnight
Financing
Rate
+
0.53%
1.46%,
06/09/2027
(f)
370
364
Secured
Overnight
Financing
Rate
+
0.77%
1.68%,
05/15/2024
(f)
160
162
Secured
Overnight
Financing
Rate
+
1.67%
2.52%,
11/03/2032
(f)
175
175
Secured
Overnight
Financing
Rate
+
1.18%
2.56%,
05/01/2032
(f)
520
523
Secured
Overnight
Financing
Rate
+
1.17%
2.57%,
06/03/2031
(f)
320
323
Secured
Overnight
Financing
Rate
+
2.11%
2.67%,
01/29/2031
(f)
315
320
Secured
Overnight
Financing
Rate
+
1.15%
2.90%,
11/03/2042
(f)
195
193
Secured
Overnight
Financing
Rate
+
1.38%
2.98%,
11/05/2030
(f)
155
161
Secured
Overnight
Financing
Rate
+
1.42%
3.20%,
10/21/2026
770
816
3.50%,
05/15/2023
600
620
3.67%,
07/24/2028
(f)
1,200
1,294
3
Month
USD
LIBOR
+
1.39%
3.75%,
06/16/2024
500
530
3.89%,
01/10/2028
(f)
400
434
3
Month
USD
LIBOR
+
1.56%
4.07%,
04/23/2029
(f)
240
265
3
Month
USD
LIBOR
+
1.19%
4.28%,
04/24/2048
(f)
330
405
3
Month
USD
LIBOR
+
1.84%
4.30%,
11/20/2026
525
581
4.40%,
06/10/2025
780
849
4.45%,
09/29/2027
20
22
4.60%,
03/09/2026
60
66
4.65%,
07/30/2045
222
280
5.30%,
05/06/2044
25
33
5.50%,
09/13/2025
325
368
5.88%,
01/30/2042
328
464
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
106
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Citigroup
Inc
(continued)
6.63%,
06/15/2032
$
112
$
149
6.68%,
09/13/2043
30
45
8.13%,
07/15/2039
132
223
Cooperatieve
Rabobank
UA
5.25%,
05/24/2041
500
701
5.25%,
08/04/2045
250
329
5.75%,
12/01/2043
250
349
Cooperatieve
Rabobank
UA/NY
0.38%,
01/12/2024
250
247
Credit
Suisse
AG/New
York
NY
0.50%,
02/02/2024
305
301
0.52%,
08/09/2023
250
248
1.25%,
08/07/2026
250
244
3.63%,
09/09/2024
400
424
Credit
Suisse
Group
AG
3.75%,
03/26/2025
750
796
4.88%,
05/15/2045
500
633
Deutsche
Bank
AG/New
York
NY
0.90%,
05/28/2024
150
149
1.69%,
03/19/2026
500
498
2.13%,
11/24/2026
(f)
200
200
Secured
Overnight
Financing
Rate
+
1.87%
2.22%,
09/18/2024
(f)
170
172
Secured
Overnight
Financing
Rate
+
2.16%
3.04%,
05/28/2032
(f)
175
176
Secured
Overnight
Financing
Rate
+
1.72%
4.10%,
01/13/2026
500
533
Discover
Bank
2.45%,
09/12/2024
320
328
2.70%,
02/06/2030
250
253
Fifth
Third
Bancorp
2.38%,
01/28/2025
85
87
4.30%,
01/16/2024
30
32
Fifth
Third
Bank
NA
1.80%,
01/30/2023
250
253
3.85%,
03/15/2026
700
755
Goldman
Sachs
Group
Inc/The
0.66%,
09/10/2024
(f)
385
382
Secured
Overnight
Financing
Rate
+
0.51%
0.67%,
03/08/2024
(f)
385
383
Secured
Overnight
Financing
Rate
+
0.57%
0.86%,
02/12/2026
(f)
155
152
Secured
Overnight
Financing
Rate
+
0.61%
0.93%,
10/21/2024
(f)
385
383
Secured
Overnight
Financing
Rate
+
0.49%
1.09%,
12/09/2026
(f)
315
307
Secured
Overnight
Financing
Rate
+
0.79%
1.43%,
03/09/2027
(f)
385
377
Secured
Overnight
Financing
Rate
+
0.80%
1.54%,
09/10/2027
(f)
190
186
Secured
Overnight
Financing
Rate
+
0.82%
1.95%,
10/21/2027
(f)
765
762
Secured
Overnight
Financing
Rate
+
0.91%
1.99%,
01/27/2032
(f)
475
455
Secured
Overnight
Financing
Rate
+
1.09%
2.38%,
07/21/2032
(f)
285
281
Secured
Overnight
Financing
Rate
+
1.25%
2.60%,
02/07/2030
1,240
1,261
2.62%,
04/22/2032
(f)
380
383
Secured
Overnight
Financing
Rate
+
1.28%
2.65%,
10/21/2032
(f)
195
196
Secured
Overnight
Financing
Rate
+
1.26%
2.91%,
07/21/2042
(f)
385
383
Secured
Overnight
Financing
Rate
+
1.47%
3.21%,
04/22/2042
(f)
190
197
Secured
Overnight
Financing
Rate
+
1.51%
3.63%,
02/20/2024
1,000
1,049
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Goldman
Sachs
Group
Inc/The
(continued)
3.75%,
05/22/2025
$
30
$
32
3.81%,
04/23/2029
(f)
2,000
2,175
3
Month
USD
LIBOR
+
1.16%
3.85%,
01/26/2027
60
64
4.02%,
10/31/2038
(f)
750
858
3
Month
USD
LIBOR
+
1.37%
4.22%,
05/01/2029
(f)
415
461
3
Month
USD
LIBOR
+
1.30%
4.25%,
10/21/2025
1,280
1,396
4.41%,
04/23/2039
(f)
180
215
3
Month
USD
LIBOR
+
1.43%
4.80%,
07/08/2044
25
32
5.15%,
05/22/2045
310
403
6.75%,
10/01/2037
530
751
HSBC
Holdings
PLC
0.98%,
05/24/2025
(f)
400
395
Secured
Overnight
Financing
Rate
+
0.71%
1.16%,
11/22/2024
(f)
400
399
Secured
Overnight
Financing
Rate
+
0.58%
1.59%,
05/24/2027
(f)
400
391
Secured
Overnight
Financing
Rate
+
1.29%
1.65%,
04/18/2026
(f)
250
248
Secured
Overnight
Financing
Rate
+
1.54%
2.01%,
09/22/2028
(f)
335
328
Secured
Overnight
Financing
Rate
+
1.73%
2.10%,
06/04/2026
(f)
320
322
Secured
Overnight
Financing
Rate
+
1.93%
2.36%,
08/18/2031
(f)
200
195
Secured
Overnight
Financing
Rate
+
1.95%
2.63%,
11/07/2025
(f)
230
236
Secured
Overnight
Financing
Rate
+
1.40%
2.80%,
05/24/2032
(f)
200
201
Secured
Overnight
Financing
Rate
+
1.19%
2.85%,
06/04/2031
(f)
200
202
Secured
Overnight
Financing
Rate
+
2.39%
2.87%,
11/22/2032
(f)
400
403
Secured
Overnight
Financing
Rate
+
1.41%
3.60%,
05/25/2023
500
518
3.90%,
05/25/2026
395
426
3.95%,
05/18/2024
(f)
400
415
3
Month
USD
LIBOR
+
0.99%
3.97%,
05/22/2030
(f)
400
434
3
Month
USD
LIBOR
+
1.61%
4.04%,
03/13/2028
(f)
500
540
3
Month
USD
LIBOR
+
1.55%
4.25%,
03/14/2024
500
528
4.29%,
09/12/2026
(f)
500
540
3
Month
USD
LIBOR
+
1.35%
4.58%,
06/19/2029
(f)
365
409
3
Month
USD
LIBOR
+
1.53%
4.95%,
03/31/2030
200
235
5.25%,
03/14/2044
300
391
6.10%,
01/14/2042
174
249
6.50%,
05/02/2036
420
571
Huntington
Bancshares
Inc/OH
2.55%,
02/04/2030
110
112
Huntington
National
Bank/The
1.80%,
02/03/2023
250
253
3.55%,
10/06/2023
400
417
ING
Groep
NV
1.73%,
04/01/2027
(f)
200
199
Secured
Overnight
Financing
Rate
+
1.01%
2.73%,
04/01/2032
(f)
200
204
Secured
Overnight
Financing
Rate
+
1.32%
3.55%,
04/09/2024
400
419
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
107
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
JPMorgan
Chase
&
Co
0.56%,
02/16/2025
(f)
$
190
$
187
Secured
Overnight
Financing
Rate
+
0.42%
0.65%,
09/16/2024
(f)
920
916
Secured
Overnight
Financing
Rate
+
0.60%
0.77%,
08/09/2025
(f)
385
379
Secured
Overnight
Financing
Rate
+
0.49%
0.82%,
06/01/2025
(f)
730
721
Secured
Overnight
Financing
Rate
+
0.54%
0.97%,
06/23/2025
(f)
385
381
Secured
Overnight
Financing
Rate
+
0.58%
1.04%,
02/04/2027
(f)
380
368
Secured
Overnight
Financing
Rate
+
0.70%
1.05%,
11/19/2026
(f)
360
351
Secured
Overnight
Financing
Rate
+
0.80%
1.47%,
09/22/2027
(f)
155
152
Secured
Overnight
Financing
Rate
+
0.77%
1.51%,
06/01/2024
(f)
815
821
Secured
Overnight
Financing
Rate
+
1.46%
1.58%,
04/22/2027
(f)
380
376
Secured
Overnight
Financing
Rate
+
0.89%
1.76%,
11/19/2031
(f)
360
341
Secured
Overnight
Financing
Rate
+
1.11%
1.95%,
02/04/2032
(f)
380
366
Secured
Overnight
Financing
Rate
+
1.07%
2.01%,
03/13/2026
(f)
160
162
Secured
Overnight
Financing
Rate
+
1.59%
2.07%,
06/01/2029
(f)
1,395
1,383
Secured
Overnight
Financing
Rate
+
1.02%
2.08%,
04/22/2026
(f)
460
467
Secured
Overnight
Financing
Rate
+
1.85%
2.18%,
06/01/2028
(f)
815
822
Secured
Overnight
Financing
Rate
+
1.89%
2.30%,
10/15/2025
(f)
280
286
Secured
Overnight
Financing
Rate
+
1.16%
2.52%,
04/22/2031
(f)
730
738
Secured
Overnight
Financing
Rate
+
2.04%
2.53%,
11/19/2041
(f)
180
171
Secured
Overnight
Financing
Rate
+
1.51%
2.55%,
11/08/2032
(f)
390
392
Secured
Overnight
Financing
Rate
+
1.18%
2.58%,
04/22/2032
(f)
380
385
Secured
Overnight
Financing
Rate
+
1.25%
2.74%,
10/15/2030
(f)
260
267
Secured
Overnight
Financing
Rate
+
1.51%
2.96%,
05/13/2031
(f)
725
751
Secured
Overnight
Financing
Rate
+
2.52%
3.11%,
04/22/2041
(f)
730
756
Secured
Overnight
Financing
Rate
+
2.46%
3.11%,
04/22/2051
(f)
730
754
Secured
Overnight
Financing
Rate
+
2.44%
3.20%,
01/25/2023
600
616
3.30%,
04/01/2026
500
533
3.33%,
04/22/2052
(f)
380
407
Secured
Overnight
Financing
Rate
+
1.58%
3.38%,
05/01/2023
400
412
3.51%,
01/23/2029
(f)
400
428
3
Month
USD
LIBOR
+
0.95%
3.63%,
12/01/2027
25
27
3.80%,
07/23/2024
(f)
270
281
3
Month
USD
LIBOR
+
0.89%
3.88%,
02/01/2024
520
550
3.88%,
09/10/2024
500
530
3.88%,
07/24/2038
(f)
500
567
3
Month
USD
LIBOR
+
1.36%
3.96%,
11/15/2048
(f)
400
469
3
Month
USD
LIBOR
+
1.38%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
JPMorgan
Chase
&
Co
(continued)
4.01%,
04/23/2029
(f)
$
270
$
298
3
Month
USD
LIBOR
+
1.12%
4.03%,
07/24/2048
(f)
30
35
3
Month
USD
LIBOR
+
1.46%
4.20%,
07/23/2029
(f)
300
336
3
Month
USD
LIBOR
+
1.26%
4.25%,
10/01/2027
10
11
4.85%,
02/01/2044
20
26
4.95%,
06/01/2045
55
72
5.40%,
01/06/2042
102
139
5.60%,
07/15/2041
154
213
5.63%,
08/16/2043
375
524
6.40%,
05/15/2038
200
291
KeyBank
NA/Cleveland
OH
0.42%,
01/03/2024
(f)
250
249
Secured
Overnight
Financing
Rate
+
0.34%
1.25%,
03/10/2023
250
251
KeyCorp
2.25%,
04/06/2027
410
417
2.55%,
10/01/2029
310
317
Korea
Development
Bank/The
0.40%,
06/19/2024
400
394
0.80%,
04/27/2026
350
340
1.75%,
02/18/2025
500
507
Kreditanstalt
fuer
Wiederaufbau
0.00%,
04/18/2036
(e)
380
293
0.00%,
06/29/2037
(e)
200
151
0.25%,
10/19/2023
340
337
0.25%,
03/08/2024
575
568
0.38%,
07/18/2025
1,630
1,586
0.50%,
09/20/2024
575
568
0.63%,
01/22/2026
1,515
1,478
1.00%,
10/01/2026
290
286
2.00%,
05/02/2025
380
391
2.13%,
01/17/2023
1,800
1,830
2.50%,
11/20/2024
300
313
2.88%,
04/03/2028
275
298
Landwirtschaftliche
Rentenbank
0.88%,
03/30/2026
(a)
170
167
0.88%,
09/03/2030
330
311
2.00%,
01/13/2025
300
308
2.38%,
06/10/2025
1,200
1,250
Lloyds
Banking
Group
PLC
0.70%,
05/11/2024
(f)
1,000
996
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.55%
3.57%,
11/07/2028
(f)
630
673
3
Month
USD
LIBOR
+
1.21%
3.75%,
01/11/2027
515
557
4.05%,
08/16/2023
400
419
4.45%,
05/08/2025
400
434
4.65%,
03/24/2026
500
550
5.30%,
12/01/2045
200
264
Mitsubishi
UFJ
Financial
Group
Inc
0.95%,
07/19/2025
(f)
400
395
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.55%
1.41%,
07/17/2025
200
199
1.54%,
07/20/2027
(f)
400
393
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.75%
1.64%,
10/13/2027
(f)
200
197
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.67%
2.05%,
07/17/2030
250
243
2.19%,
02/25/2025
200
204
2.56%,
02/25/2030
200
202
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
108
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Mitsubishi
UFJ
Financial
Group
Inc
(continued)
2.76%,
09/13/2026
$
400
$
416
2.80%,
07/18/2024
650
674
3.20%,
07/18/2029
700
739
3.75%,
07/18/2039
550
623
3.76%,
07/26/2023
300
313
3.85%,
03/01/2026
350
379
Mizuho
Financial
Group
Inc
1.24%,
07/10/2024
(f)
200
200
Secured
Overnight
Financing
Rate
+
1.25%
2.20%,
07/10/2031
(f)
200
196
Secured
Overnight
Financing
Rate
+
1.77%
2.23%,
05/25/2026
(f)
200
203
3
Month
USD
LIBOR
+
0.83%
2.26%,
07/09/2032
(a),(f)
200
195
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.90%
2.84%,
07/16/2025
(f)
1,000
1,035
Secured
Overnight
Financing
Rate
+
1.24%
3.15%,
07/16/2030
(f)
400
419
3
Month
USD
LIBOR
+
1.13%
Morgan
Stanley
0.53%,
01/25/2024
(f)
330
329
Secured
Overnight
Financing
Rate
+
0.46%
0.73%,
04/05/2024
(f)
360
359
Secured
Overnight
Financing
Rate
+
0.62%
0.79%,
01/22/2025
(f)
380
376
Secured
Overnight
Financing
Rate
+
0.51%
0.79%,
05/30/2025
(f)
385
380
Secured
Overnight
Financing
Rate
+
0.53%
0.86%,
10/21/2025
(f)
95
94
Secured
Overnight
Financing
Rate
+
0.75%
0.99%,
12/10/2026
(f)
280
272
Secured
Overnight
Financing
Rate
+
0.72%
1.16%,
10/21/2025
(f)
165
164
Secured
Overnight
Financing
Rate
+
0.56%
1.51%,
07/20/2027
(f)
380
374
Secured
Overnight
Financing
Rate
+
0.86%
1.59%,
05/04/2027
(f)
270
267
Secured
Overnight
Financing
Rate
+
0.88%
1.79%,
02/13/2032
(f)
1,360
1,287
Secured
Overnight
Financing
Rate
+
1.03%
1.93%,
04/28/2032
(f)
105
100
Secured
Overnight
Financing
Rate
+
1.02%
2.19%,
04/28/2026
(f)
475
484
Secured
Overnight
Financing
Rate
+
1.99%
2.24%,
07/21/2032
(f)
380
372
Secured
Overnight
Financing
Rate
+
1.18%
2.48%,
09/16/2036
(f)
265
255
Secured
Overnight
Financing
Rate
+
1.36%
2.51%,
10/20/2032
(f)
180
180
Secured
Overnight
Financing
Rate
+
1.20%
2.72%,
07/22/2025
(f)
250
258
Secured
Overnight
Financing
Rate
+
1.15%
2.80%,
01/25/2052
(f)
240
235
Secured
Overnight
Financing
Rate
+
1.43%
3.13%,
01/23/2023
300
308
3.13%,
07/27/2026
1,330
1,409
3.22%,
04/22/2042
(f)
190
199
Secured
Overnight
Financing
Rate
+
1.49%
3.59%,
07/22/2028
(f)
30
32
3
Month
USD
LIBOR
+
1.34%
3.63%,
01/20/2027
530
575
3.70%,
10/23/2024
25
27
3.75%,
02/25/2023
1,230
1,272
3.77%,
01/24/2029
(f)
360
392
3
Month
USD
LIBOR
+
1.14%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Morgan
Stanley
(continued)
3.88%,
04/29/2024
$
30
$
32
3.95%,
04/23/2027
50
55
3.97%,
07/22/2038
(f)
15
17
3
Month
USD
LIBOR
+
1.46%
4.00%,
07/23/2025
30
33
4.10%,
05/22/2023
380
396
4.30%,
01/27/2045
50
61
4.35%,
09/08/2026
30
33
4.38%,
01/22/2047
30
38
5.00%,
11/24/2025
525
588
5.60%,
03/24/2051
(f)
500
747
Secured
Overnight
Financing
Rate
+
4.84%
6.38%,
07/24/2042
620
939
NatWest
Group
PLC
1.64%,
06/14/2027
(f)
265
261
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.90%
3.88%,
09/12/2023
200
209
4.80%,
04/05/2026
500
556
4.89%,
05/18/2029
(f)
400
457
3
Month
USD
LIBOR
+
1.75%
5.08%,
01/27/2030
(f)
1,000
1,160
3
Month
USD
LIBOR
+
1.91%
Northern
Trust
Corp
3.95%,
10/30/2025
500
546
Oesterreichische
Kontrollbank
AG
0.38%,
09/17/2025
340
329
2.88%,
03/13/2023
1,000
1,027
PNC
Bank
NA
2.70%,
10/22/2029
250
258
3.80%,
07/25/2023
650
677
PNC
Financial
Services
Group
Inc/The
2.20%,
11/01/2024
130
133
2.31%,
04/23/2032
(f)
150
151
Secured
Overnight
Financing
Rate
+
0.98%
2.55%,
01/22/2030
160
164
2.60%,
07/23/2026
490
514
3.45%,
04/23/2029
300
327
Royal
Bank
of
Canada
0.43%,
01/19/2024
380
375
0.50%,
10/26/2023
170
169
1.15%,
07/14/2026
190
186
1.20%,
04/27/2026
175
172
1.95%,
01/17/2023
720
730
2.25%,
11/01/2024
310
318
2.55%,
07/16/2024
125
129
Santander
Holdings
USA
Inc
4.50%,
07/17/2025
780
844
Santander
UK
Group
Holdings
PLC
1.09%,
03/15/2025
(f)
200
198
Secured
Overnight
Financing
Rate
+
0.79%
1.53%,
08/21/2026
(f)
200
197
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.25%
1.67%,
06/14/2027
(f)
200
196
Secured
Overnight
Financing
Rate
+
0.99%
3.57%,
01/10/2023
520
520
State
Street
Corp
2.20%,
03/03/2031
190
188
2.35%,
11/01/2025
(f)
365
376
Secured
Overnight
Financing
Rate
+
0.94%
2.40%,
01/24/2030
160
165
2.65%,
05/19/2026
60
63
3.10%,
05/15/2023
325
335
3.55%,
08/18/2025
225
242
3.70%,
11/20/2023
10
11
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
109
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Sumitomo
Mitsui
Financial
Group
Inc
0.51%,
01/12/2024
$
200
$
198
1.47%,
07/08/2025
300
298
1.90%,
09/17/2028
400
392
2.13%,
07/08/2030
930
904
2.14%,
09/23/2030
170
163
2.30%,
01/12/2041
200
186
2.35%,
01/15/2025
200
205
2.70%,
07/16/2024
420
434
2.75%,
01/15/2030
200
205
2.93%,
09/17/2041
195
193
3.04%,
07/16/2029
200
208
3.36%,
07/12/2027
750
803
3.45%,
01/11/2027
140
150
3.78%,
03/09/2026
500
539
Toronto-Dominion
Bank/The
0.25%,
01/06/2023
380
379
0.45%,
09/11/2023
670
666
0.70%,
09/10/2024
195
192
0.75%,
06/12/2023
330
330
1.15%,
06/12/2025
330
327
1.20%,
06/03/2026
190
187
2.00%,
09/10/2031
195
192
Truist
Bank
1.25%,
03/09/2023
250
252
1.50%,
03/10/2025
250
251
3.63%,
09/16/2025
250
268
3.80%,
10/30/2026
250
272
Truist
Financial
Corp
1.13%,
08/03/2027
465
450
1.20%,
08/05/2025
665
660
1.27%,
03/02/2027
(f)
60
59
Secured
Overnight
Financing
Rate
+
0.61%
1.89%,
06/07/2029
(f)
175
172
Secured
Overnight
Financing
Rate
+
0.86%
1.95%,
06/05/2030
665
657
2.50%,
08/01/2024
350
361
US
Bancorp
1.38%,
07/22/2030
415
390
2.40%,
07/30/2024
190
196
2.49%,
11/03/2036
(f)
175
174
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
0.95%
3.00%,
07/30/2029
950
1,003
3.15%,
04/27/2027
25
27
US
Bank
NA/Cincinnati
OH
2.05%,
01/21/2025
300
307
Wells
Fargo
&
Co
0.81%,
05/19/2025
(f)
110
109
Secured
Overnight
Financing
Rate
+
0.51%
1.65%,
06/02/2024
(f)
820
827
Secured
Overnight
Financing
Rate
+
1.60%
2.16%,
02/11/2026
(f)
645
655
3
Month
USD
LIBOR
+
0.75%
2.19%,
04/30/2026
(f)
830
845
Secured
Overnight
Financing
Rate
+
2.00%
2.39%,
06/02/2028
(f)
820
833
Secured
Overnight
Financing
Rate
+
2.10%
2.41%,
10/30/2025
(f)
1,310
1,343
Secured
Overnight
Financing
Rate
+
1.09%
3.00%,
04/22/2026
500
525
3.00%,
10/23/2026
530
557
3.07%,
04/30/2041
(f)
480
492
Secured
Overnight
Financing
Rate
+
2.53%
3.45%,
02/13/2023
515
530
3.58%,
05/22/2028
(f)
500
538
3
Month
USD
LIBOR
+
1.31%
4.10%,
06/03/2026
600
654
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Wells
Fargo
&
Co
(continued)
4.40%,
06/14/2046
$
385
$
456
4.48%,
04/04/2031
(f)
245
285
Secured
Overnight
Financing
Rate
+
4.03%
4.65%,
11/04/2044
630
763
4.90%,
11/17/2045
520
654
5.01%,
04/04/2051
(f)
325
444
Secured
Overnight
Financing
Rate
+
4.50%
5.38%,
11/02/2043
20
26
5.61%,
01/15/2044
45
61
Wells
Fargo
Bank
NA
5.95%,
08/26/2036
750
997
6.60%,
01/15/2038
250
363
Westpac
Banking
Corp
1.15%,
06/03/2026
190
187
1.95%,
11/20/2028
200
199
2.00%,
01/13/2023
1,155
1,172
2.15%,
06/03/2031
190
191
2.35%,
02/19/2025
155
160
2.65%,
01/16/2030
155
161
2.89%,
02/04/2030
(f)
160
163
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.35%
2.96%,
11/16/2040
80
78
3.02%,
11/18/2036
(f)
150
148
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.53%
3.13%,
11/18/2041
200
198
4.11%,
07/24/2034
(f)
165
178
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.00%
4.42%,
07/24/2039
165
193
$
173,355
Beverages
-
0.67%
Anheuser-Busch
Cos
LLC
/
Anheuser-Busch
InBev
Worldwide
Inc
3.65%,
02/01/2026
825
886
4.70%,
02/01/2036
1,030
1,243
4.90%,
02/01/2046
890
1,125
Anheuser-Busch
InBev
Finance
Inc
4.63%,
02/01/2044
25
30
Anheuser-Busch
InBev
Worldwide
Inc
3.50%,
06/01/2030
295
323
3.75%,
07/15/2042
100
109
4.35%,
06/01/2040
295
347
4.50%,
06/01/2050
720
888
4.75%,
01/23/2029
560
652
4.90%,
01/23/2031
750
901
5.45%,
01/23/2039
500
654
5.80%,
01/23/2059
595
860
8.20%,
01/15/2039
51
83
Coca-Cola
Co/The
1.00%,
03/15/2028
340
327
1.38%,
03/15/2031
340
321
1.45%,
06/01/2027
(a)
1,060
1,054
1.50%,
03/05/2028
190
187
1.65%,
06/01/2030
260
251
1.75%,
09/06/2024
190
194
2.13%,
09/06/2029
165
168
2.25%,
01/05/2032
195
198
2.50%,
06/01/2040
260
261
2.50%,
03/15/2051
170
163
2.60%,
06/01/2050
260
254
2.88%,
05/05/2041
195
203
3.00%,
03/05/2051
285
302
3.38%,
03/25/2027
160
173
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
110
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Beverages
(continued)
Constellation
Brands
Inc
2.25%,
08/01/2031
$
170
$
166
3.15%,
08/01/2029
630
664
3.20%,
02/15/2023
450
460
Diageo
Capital
PLC
2.13%,
10/24/2024
200
204
2.13%,
04/29/2032
200
198
2.38%,
10/24/2029
200
204
2.63%,
04/29/2023
10
10
5.88%,
09/30/2036
139
194
Fomento
Economico
Mexicano
SAB
de
CV
3.50%,
01/16/2050
160
167
Keurig
Dr
Pepper
Inc
2.25%,
03/15/2031
190
187
3.13%,
12/15/2023
500
518
3.35%,
03/15/2051
190
198
4.06%,
05/25/2023
213
222
4.99%,
05/25/2038
600
742
Molson
Coors
Beverage
Co
3.00%,
07/15/2026
530
555
5.00%,
05/01/2042
50
60
PepsiCo
Inc
0.40%,
10/07/2023
125
124
0.75%,
05/01/2023
95
95
1.40%,
02/25/2031
165
157
1.63%,
05/01/2030
95
92
1.95%,
10/21/2031
165
165
2.38%,
10/06/2026
670
700
2.63%,
07/29/2029
170
179
2.63%,
10/21/2041
160
162
2.75%,
10/21/2051
160
164
2.85%,
02/24/2026
500
527
2.88%,
10/15/2049
160
168
$
19,439
Biotechnology
-
0.30%
Amgen
Inc
1.65%,
08/15/2028
180
176
1.90%,
02/21/2025
160
163
2.00%,
01/15/2032
180
174
2.20%,
02/21/2027
1,090
1,116
2.45%,
02/21/2030
160
163
2.60%,
08/19/2026
500
521
3.00%,
01/15/2052
180
175
3.15%,
02/21/2040
860
882
3.38%,
02/21/2050
160
166
4.40%,
05/01/2045
40
48
4.66%,
06/15/2051
300
384
Baxalta
Inc
4.00%,
06/23/2025
50
54
5.25%,
06/23/2045
130
173
Biogen
Inc
2.25%,
05/01/2030
115
113
5.20%,
09/15/2045
540
698
Gilead
Sciences
Inc
1.65%,
10/01/2030
165
158
2.60%,
10/01/2040
85
82
2.80%,
10/01/2050
165
160
2.95%,
03/01/2027
530
558
4.00%,
09/01/2036
300
345
4.15%,
03/01/2047
70
82
4.60%,
09/01/2035
500
605
4.75%,
03/01/2046
195
247
4.80%,
04/01/2044
500
631
Regeneron
Pharmaceuticals
Inc
1.75%,
09/15/2030
165
156
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Biotechnology
(continued)
Royalty
Pharma
PLC
0.75%,
09/02/2023
$
160
$
159
1.75%,
09/02/2027
310
305
2.20%,
09/02/2030
160
155
3.30%,
09/02/2040
160
160
$
8,809
Building
Materials
-
0.19%
Carrier
Global
Corp
2.24%,
02/15/2025
160
164
2.49%,
02/15/2027
160
164
2.72%,
02/15/2030
320
327
3.38%,
04/05/2040
685
716
3.58%,
04/05/2050
160
170
Johnson
Controls
International
plc
3.63%,
07/02/2024
(g)
500
526
4.50%,
02/15/2047
500
606
Johnson
Controls
International
plc
/
Tyco
Fire
&
Security
Finance
SCA
2.00%,
09/16/2031
385
373
Martin
Marietta
Materials
Inc
0.65%,
07/15/2023
190
189
2.50%,
03/15/2030
735
742
3.20%,
07/15/2051
190
192
Masco
Corp
1.50%,
02/15/2028
190
184
4.50%,
05/15/2047
525
630
Owens
Corning
4.40%,
01/30/2048
300
351
Vulcan
Materials
Co
3.50%,
06/01/2030
295
319
$
5,653
Chemicals
-
0.37%
Air
Products
and
Chemicals
Inc
1.85%,
05/15/2027
655
664
2.80%,
05/15/2050
155
159
Albemarle
Corp
5.45%,
12/01/2044
150
195
Dow
Chemical
Co/The
2.10%,
11/15/2030
165
162
3.60%,
11/15/2050
165
179
3.63%,
05/15/2026
300
323
4.38%,
11/15/2042
230
272
4.80%,
05/15/2049
300
382
5.25%,
11/15/2041
280
358
9.40%,
05/15/2039
30
54
DuPont
de
Nemours
Inc
4.73%,
11/15/2028
1,075
1,245
5.32%,
11/15/2038
500
644
5.42%,
11/15/2048
245
343
Eastman
Chemical
Co
4.80%,
09/01/2042
100
120
Ecolab
Inc
1.30%,
01/30/2031
85
80
1.65%,
02/01/2027
350
352
2.13%,
08/15/2050
85
75
2.75%,
08/18/2055
307
301
4.80%,
03/24/2030
160
192
EI
du
Pont
de
Nemours
and
Co
1.70%,
07/15/2025
185
186
Linde
Inc/CT
1.10%,
08/10/2030
165
154
LYB
International
Finance
III
LLC
1.25%,
10/01/2025
84
83
2.25%,
10/01/2030
165
164
3.63%,
04/01/2051
165
175
4.20%,
10/15/2049
125
144
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
111
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Chemicals
(continued)
LyondellBasell
Industries
NV
4.63%,
02/26/2055
$
20
$
24
5.75%,
04/15/2024
130
141
Mosaic
Co/The
4.25%,
11/15/2023
496
522
Nutrien
Ltd
1.90%,
05/13/2023
95
96
4.20%,
04/01/2029
600
677
4.90%,
06/01/2043
200
255
PPG
Industries
Inc
1.20%,
03/15/2026
190
186
Sherwin-Williams
Co/The
2.20%,
03/15/2032
160
158
2.30%,
05/15/2030
160
160
2.95%,
08/15/2029
450
473
3.30%,
05/15/2050
160
169
3.80%,
08/15/2049
175
197
Westlake
Chemical
Corp
3.13%,
08/15/2051
190
183
3.60%,
08/15/2026
350
375
$
10,622
Commercial
Mortgage
Backed
Securities
-
1.36%
BANK
2018-BNK10
3.69%,
02/15/2061
1,850
2,023
CFCRE
Commercial
Mortgage
Trust
2016-C4
3.28%,
05/10/2058
1,300
1,366
Citigroup
Commercial
Mortgage
Trust
2016-GC36
3.62%,
02/10/2049
1,000
1,066
COMM
2013-CCRE8
Mortgage
Trust
3.61%,
06/10/2046
(g)
500
515
COMM
2015-DC1
Mortgage
Trust
3.35%,
02/10/2048
1,000
1,048
COMM
2015-LC19
Mortgage
Trust
3.18%,
02/10/2048
1,000
1,044
COMM
2016-CR28
Mortgage
Trust
3.76%,
02/10/2049
1,000
1,071
CSAIL
2016-C7
Commercial
Mortgage
Trust
3.31%,
11/15/2049
836
868
Fannie
Mae-Aces
2.42%,
10/25/2026
(g)
854
887
2.53%,
09/25/2024
839
863
2.71%,
06/25/2025
(g)
1,708
1,777
2.78%,
02/25/2027
(g)
1,037
1,096
2.96%,
02/25/2027
(g)
1,000
1,059
2.99%,
12/25/2027
(g)
917
981
3.37%,
07/25/2028
(g)
2,025
2,219
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
2.67%,
03/25/2026
1,050
1,101
3.06%,
07/25/2023
(g)
750
772
3.06%,
12/25/2024
500
525
3.31%,
05/25/2023
(g)
810
836
3.32%,
02/25/2023
(g)
972
996
3.41%,
12/25/2026
1,500
1,633
3.53%,
10/25/2023
(g)
1,050
1,093
GS
Mortgage
Securities
Trust
2012-GCJ9
2.77%,
11/10/2045
485
492
GS
Mortgage
Securities
Trust
2014-GC18
3.80%,
01/10/2047
413
423
GS
Mortgage
Securities
Trust
2015-GC34
3.51%,
10/10/2048
1,000
1,060
GS
Mortgage
Securities
Trust
2017-GS5
3.47%,
03/10/2050
2,220
2,324
GS
Mortgage
Securities
Trust
2018-GS9
3.99%,
03/10/2051
(g)
1,500
1,664
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C22
3.80%,
09/15/2047
$
1,000
$
1,054
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2015-C24
3.48%,
05/15/2048
984
1,030
Morgan
Stanley
Capital
I
Trust
2017-H1
3.26%,
06/15/2050
2,500
2,634
SG
Commercial
Mortgage
Securities
Trust
2016-C5
3.06%,
10/10/2048
1,000
1,037
UBS-Barclays
Commercial
Mortgage
Trust
2013-C6
3.24%,
04/10/2046
500
509
Wells
Fargo
Commercial
Mortgage
Trust
2012-LC5
2.92%,
10/15/2045
441
444
Wells
Fargo
Commercial
Mortgage
Trust
2015-C28
3.29%,
05/15/2048
1,521
1,575
WFRBS
Commercial
Mortgage
Trust
2013-C14
2.98%,
06/15/2046
249
252
$
39,337
Commercial
Services
-
0.26%
American
University/The
3.67%,
04/01/2049
125
144
Automatic
Data
Processing
Inc
1.70%,
05/15/2028
195
194
3.38%,
09/15/2025
500
536
California
Institute
of
Technology
4.32%,
08/01/2045
80
104
Global
Payments
Inc
1.20%,
03/01/2026
370
359
1.50%,
11/15/2024
195
195
2.65%,
02/15/2025
170
175
3.20%,
08/15/2029
170
177
4.15%,
08/15/2049
85
97
Leland
Stanford
Junior
University/The
3.65%,
05/01/2048
287
348
Massachusetts
Institute
of
Technology
3.89%,
07/01/2116
250
311
4.68%,
07/01/2114
250
372
Moody's
Corp
2.55%,
08/18/2060
515
452
5.25%,
07/15/2044
500
679
PayPal
Holdings
Inc
1.35%,
06/01/2023
160
161
1.65%,
06/01/2025
160
162
2.30%,
06/01/2030
160
163
2.40%,
10/01/2024
160
166
2.85%,
10/01/2029
160
168
President
and
Fellows
of
Harvard
College
3.15%,
07/15/2046
350
399
S&P
Global
Inc
1.25%,
08/15/2030
165
154
2.50%,
12/01/2029
120
124
3.25%,
12/01/2049
120
130
University
of
Southern
California
2.81%,
10/01/2050
645
654
5.25%,
10/01/2111
30
48
Verisk
Analytics
Inc
4.00%,
06/15/2025
500
537
William
Marsh
Rice
University
3.57%,
05/15/2045
500
580
$
7,589
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
112
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Computers
-
0.66%
Apple
Inc
0.55%,
08/20/2025
$
525
$
511
0.70%,
02/08/2026
350
343
0.75%,
05/11/2023
435
436
1.13%,
05/11/2025
550
548
1.20%,
02/08/2028
345
335
1.25%,
08/20/2030
525
495
1.40%,
08/05/2028
190
186
1.65%,
05/11/2030
160
156
1.65%,
02/08/2031
175
171
1.70%,
08/05/2031
385
376
2.20%,
09/11/2029
165
169
2.38%,
02/08/2041
175
170
2.40%,
01/13/2023
300
306
2.40%,
05/03/2023
330
338
2.40%,
08/20/2050
525
493
2.55%,
08/20/2060
260
244
2.65%,
05/11/2050
160
157
2.65%,
02/08/2051
175
172
2.70%,
08/05/2051
285
282
2.80%,
02/08/2061
175
174
2.85%,
02/23/2023
30
31
2.90%,
09/12/2027
655
698
2.95%,
09/11/2049
165
170
3.20%,
05/13/2025
445
473
3.20%,
05/11/2027
320
345
3.35%,
02/09/2027
535
581
3.45%,
02/09/2045
30
33
3.75%,
09/12/2047
115
134
3.75%,
11/13/2047
150
176
3.85%,
05/04/2043
300
353
4.65%,
02/23/2046
1,235
1,620
Dell
International
LLC
/
EMC
Corp
3.38%,
12/15/2041
(h)
200
198
3.45%,
12/15/2051
(h)
400
384
5.45%,
06/15/2023
66
70
6.02%,
06/15/2026
1,000
1,156
8.10%,
07/15/2036
138
210
8.35%,
07/15/2046
83
138
Hewlett
Packard
Enterprise
Co
1.45%,
04/01/2024
465
468
2.25%,
04/01/2023
165
167
4.45%,
10/02/2023
150
158
4.90%,
10/15/2025
300
333
6.20%,
10/15/2035
80
105
6.35%,
10/15/2045
195
261
HP
Inc
1.45%,
06/17/2026
(h)
190
186
2.20%,
06/17/2025
240
245
3.00%,
06/17/2027
240
252
6.00%,
09/15/2041
154
205
International
Business
Machines
Corp
3.30%,
05/15/2026
1,050
1,122
3.38%,
08/01/2023
335
348
3.50%,
05/15/2029
470
510
4.00%,
06/20/2042
35
40
4.15%,
05/15/2039
230
266
4.25%,
05/15/2049
340
412
4.70%,
02/19/2046
185
237
5.60%,
11/30/2039
92
126
5.88%,
11/29/2032
200
263
6.22%,
08/01/2027
351
431
NetApp
Inc
2.38%,
06/22/2027
160
164
$
19,131
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Consumer
Products
-
0.05%
Church
&
Dwight
Co
Inc
3.15%,
08/01/2027
$
300
$
318
3.95%,
08/01/2047
300
349
Clorox
Co/The
1.80%,
05/15/2030
160
155
Kimberly-Clark
Corp
2.75%,
02/15/2026
400
423
2.88%,
02/07/2050
160
164
$
1,409
Cosmetics
&
Personal
Care
-
0.11%
Estee
Lauder
Cos
Inc/The
1.95%,
03/15/2031
170
167
2.00%,
12/01/2024
240
247
2.38%,
12/01/2029
240
245
Procter
&
Gamble
Co/The
0.55%,
10/29/2025
240
234
1.20%,
10/29/2030
340
322
2.80%,
03/25/2027
660
698
3.10%,
08/15/2023
30
31
3.55%,
03/25/2040
160
185
Unilever
Capital
Corp
1.38%,
09/14/2030
170
161
2.13%,
09/06/2029
115
116
2.60%,
05/05/2024
510
527
5.90%,
11/15/2032
230
309
$
3,242
Credit
Card
Asset
Backed
Securities
-
0.05%
Capital
One
Multi-Asset
Execution
Trust
2.43%,
01/15/2025
1,500
1,507
Distribution
&
Wholesale
-
0.01%
WW
Grainger
Inc
4.60%,
06/15/2045
250
320
Diversified
Financial
Services
-
0.92%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
1.15%,
10/29/2023
380
378
1.65%,
10/29/2024
1,440
1,437
1.75%,
10/29/2024
380
379
1.75%,
01/30/2026
170
167
2.45%,
10/29/2026
225
227
2.88%,
08/14/2024
1,035
1,065
3.00%,
10/29/2028
245
248
3.30%,
01/30/2032
380
387
3.40%,
10/29/2033
275
280
3.88%,
01/23/2028
300
318
Air
Lease
Corp
1.88%,
08/15/2026
200
197
2.10%,
09/01/2028
385
371
2.25%,
01/15/2023
130
132
2.30%,
02/01/2025
265
269
2.88%,
01/15/2026
385
397
3.25%,
03/01/2025
500
519
3.25%,
10/01/2029
95
97
Ally
Financial
Inc
1.45%,
10/02/2023
185
186
2.20%,
11/02/2028
190
189
8.00%,
11/01/2031
540
764
American
Express
Co
1.65%,
11/04/2026
1,350
1,354
3.30%,
05/03/2027
(h)
30
32
4.05%,
12/03/2042
25
30
Ameriprise
Financial
Inc
4.00%,
10/15/2023
225
237
BlackRock
Inc
2.10%,
02/25/2032
150
149
2.40%,
04/30/2030
125
129
3.50%,
03/18/2024
500
528
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
113
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
(continued)
Brookfield
Finance
Inc
2.72%,
04/15/2031
$
190
$
192
3.50%,
03/30/2051
165
173
3.90%,
01/25/2028
400
439
Brookfield
Finance
LLC
3.45%,
04/15/2050
160
167
Capital
One
Bank
USA
NA
3.38%,
02/15/2023
340
349
Capital
One
Financial
Corp
1.88%,
11/02/2027
(f)
125
124
Secured
Overnight
Financing
Rate
+
0.86%
2.36%,
07/29/2032
(f)
190
180
Secured
Overnight
Financing
Rate
+
1.34%
3.20%,
02/05/2025
415
435
3.50%,
06/15/2023
114
118
3.75%,
04/24/2024
5
5
3.75%,
07/28/2026
1,000
1,072
4.20%,
10/29/2025
30
33
Charles
Schwab
Corp/The
0.90%,
03/11/2026
315
307
1.15%,
05/13/2026
195
192
1.65%,
03/11/2031
315
303
1.95%,
12/01/2031
195
192
2.00%,
03/20/2028
385
390
3.45%,
02/13/2026
250
268
CME
Group
Inc
3.00%,
03/15/2025
530
556
5.30%,
09/15/2043
200
278
Credit
Suisse
USA
Inc
7.13%,
07/15/2032
300
426
Discover
Financial
Services
4.10%,
02/09/2027
500
542
Intercontinental
Exchange
Inc
0.70%,
06/15/2023
165
165
1.85%,
09/15/2032
125
120
2.10%,
06/15/2030
160
159
2.65%,
09/15/2040
165
159
3.00%,
09/15/2060
165
163
3.75%,
12/01/2025
50
54
4.00%,
10/15/2023
550
578
4.25%,
09/21/2048
150
187
Jefferies
Group
LLC
6.50%,
01/20/2043
200
276
Jefferies
Group
LLC
/
Jefferies
Group
Capital
Finance
Inc
2.63%,
10/15/2031
165
162
4.15%,
01/23/2030
400
443
Mastercard
Inc
2.00%,
03/03/2025
210
215
2.00%,
11/18/2031
170
169
2.95%,
11/21/2026
500
532
2.95%,
03/15/2051
190
197
3.35%,
03/26/2030
80
88
3.85%,
03/26/2050
560
673
Nasdaq
Inc
2.50%,
12/21/2040
185
171
4.25%,
06/01/2024
350
372
Nomura
Holdings
Inc
1.85%,
07/16/2025
330
330
2.68%,
07/16/2030
330
328
ORIX
Corp
3.70%,
07/18/2027
300
326
Synchrony
Financial
4.25%,
08/15/2024
800
847
4.50%,
07/23/2025
20
22
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
(continued)
Visa
Inc
1.10%,
02/15/2031
$
165
$
154
1.90%,
04/15/2027
475
482
2.00%,
08/15/2050
165
145
2.05%,
04/15/2030
155
157
2.70%,
04/15/2040
155
158
3.15%,
12/14/2025
600
640
3.65%,
09/15/2047
85
99
4.15%,
12/14/2035
215
257
4.30%,
12/14/2045
375
472
Western
Union
Co/The
6.20%,
11/17/2036
200
247
$
26,754
Electric
-
1.95%
AEP
Texas
Inc
2.10%,
07/01/2030
165
159
3.45%,
01/15/2050
55
56
3.45%,
05/15/2051
195
196
AEP
Transmission
Co
LLC
2.75%,
08/15/2051
190
181
4.00%,
12/01/2046
600
692
AES
Corp/The
2.45%,
01/15/2031
180
175
Alabama
Power
Co
1.45%,
09/15/2030
160
150
3.13%,
07/15/2051
190
194
4.30%,
01/02/2046
400
479
Ameren
Corp
1.75%,
03/15/2028
190
184
Ameren
Illinois
Co
1.55%,
11/15/2030
180
169
3.25%,
03/15/2050
80
85
American
Electric
Power
Co
Inc
1.00%,
11/01/2025
45
44
2.30%,
03/01/2030
160
156
Appalachian
Power
Co
3.30%,
06/01/2027
400
427
7.00%,
04/01/2038
120
172
Arizona
Public
Service
Co
2.60%,
08/15/2029
270
274
2.65%,
09/15/2050
170
153
4.50%,
04/01/2042
77
90
Baltimore
Gas
and
Electric
Co
2.25%,
06/15/2031
190
190
Berkshire
Hathaway
Energy
Co
1.65%,
05/15/2031
135
128
2.85%,
05/15/2051
180
173
3.80%,
07/15/2048
300
336
4.50%,
02/01/2045
550
666
5.15%,
11/15/2043
15
19
6.13%,
04/01/2036
156
212
CenterPoint
Energy
Houston
Electric
LLC
3.35%,
04/01/2051
190
209
4.25%,
02/01/2049
300
373
CenterPoint
Energy
Inc
1.45%,
06/01/2026
195
191
2.50%,
09/01/2024
90
92
2.95%,
03/01/2030
125
129
3.70%,
09/01/2049
90
97
CMS
Energy
Corp
3.45%,
08/15/2027
350
375
3.75%,
12/01/2050
(f)
180
177
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.90%
Commonwealth
Edison
Co
3.00%,
03/01/2050
160
162
3.13%,
03/15/2051
190
197
4.00%,
03/01/2049
300
356
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
114
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Connecticut
Light
and
Power
Co/The
0.75%,
12/01/2025
$
180
$
175
2.05%,
07/01/2031
190
187
3.20%,
03/15/2027
165
175
4.00%,
04/01/2048
500
598
Consolidated
Edison
Co
of
New
York
Inc
2.40%,
06/15/2031
195
196
3.00%,
12/01/2060
180
168
3.13%,
11/15/2027
300
316
3.70%,
11/15/2059
80
85
3.88%,
06/15/2047
650
710
4.13%,
05/15/2049
300
343
4.20%,
03/15/2042
128
144
4.30%,
12/01/2056
230
273
5.85%,
03/15/2036
51
67
6.75%,
04/01/2038
125
181
Consumers
Energy
Co
2.50%,
05/01/2060
160
141
3.10%,
08/15/2050
245
255
Delmarva
Power
&
Light
Co
4.15%,
05/15/2045
350
412
Dominion
Energy
Inc
1.45%,
04/15/2026
190
188
3.30%,
04/15/2041
190
197
3.38%,
04/01/2030
155
164
4.70%,
12/01/2044
300
370
4.90%,
08/01/2041
77
95
5.95%,
06/15/2035
400
522
Dominion
Energy
South
Carolina
Inc
5.45%,
02/01/2041
77
104
DTE
Electric
Co
1.90%,
04/01/2028
435
431
2.25%,
03/01/2030
160
160
2.63%,
03/01/2031
155
159
3.95%,
03/01/2049
500
591
DTE
Energy
Co
1.05%,
06/01/2025
85
83
Duke
Energy
Carolinas
LLC
2.45%,
08/15/2029
225
229
2.50%,
03/15/2023
279
284
3.20%,
08/15/2049
450
466
4.00%,
09/30/2042
100
115
5.30%,
02/15/2040
512
674
Duke
Energy
Corp
0.90%,
09/15/2025
170
165
3.15%,
08/15/2027
15
16
3.30%,
06/15/2041
190
193
3.50%,
06/15/2051
190
196
3.75%,
09/01/2046
600
640
Duke
Energy
Florida
LLC
1.75%,
06/15/2030
160
154
2.50%,
12/01/2029
330
339
3.40%,
10/01/2046
300
316
5.65%,
04/01/2040
25
34
6.40%,
06/15/2038
66
95
Duke
Energy
Indiana
LLC
2.75%,
04/01/2050
160
156
6.12%,
10/15/2035
77
103
6.45%,
04/01/2039
300
430
Duke
Energy
Ohio
Inc
2.13%,
06/01/2030
160
157
Duke
Energy
Progress
LLC
2.50%,
08/15/2050
165
152
4.15%,
12/01/2044
300
352
Emera
US
Finance
LP
3.55%,
06/15/2026
25
27
4.75%,
06/15/2046
25
29
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Entergy
Arkansas
LLC
2.65%,
06/15/2051
$
170
$
158
Entergy
Corp
0.90%,
09/15/2025
580
562
1.90%,
06/15/2028
115
113
2.40%,
06/15/2031
190
187
Entergy
Louisiana
LLC
2.90%,
03/15/2051
90
88
3.10%,
06/15/2041
190
195
Entergy
Texas
Inc
1.75%,
03/15/2031
165
155
4.00%,
03/30/2029
300
329
4.50%,
03/30/2039
300
353
Evergy
Inc
2.45%,
09/15/2024
165
169
Evergy
Kansas
Central
Inc
4.25%,
12/01/2045
500
602
Evergy
Metro
Inc
2.25%,
06/01/2030
160
159
Eversource
Energy
0.80%,
08/15/2025
165
161
1.65%,
08/15/2030
165
154
Exelon
Corp
3.95%,
06/15/2025
25
27
4.45%,
04/15/2046
20
24
5.63%,
06/15/2035
300
381
Exelon
Generation
Co
LLC
5.60%,
06/15/2042
500
591
6.25%,
10/01/2039
349
436
Florida
Power
&
Light
Co
2.88%,
12/04/2051
195
198
3.15%,
10/01/2049
90
96
3.70%,
12/01/2047
200
229
4.05%,
10/01/2044
500
592
5.69%,
03/01/2040
48
67
Georgia
Power
Co
2.20%,
09/15/2024
165
169
4.30%,
03/15/2042
228
260
Gulf
Power
Co
3.30%,
05/30/2027
400
427
Hydro-Quebec
8.05%,
07/07/2024
102
119
Iberdrola
International
BV
6.75%,
07/15/2036
128
188
Interstate
Power
and
Light
Co
2.30%,
06/01/2030
40
40
4.10%,
09/26/2028
300
333
Kentucky
Utilities
Co
3.30%,
06/01/2050
155
162
5.13%,
11/01/2040
250
318
MidAmerican
Energy
Co
3.15%,
04/15/2050
165
173
3.65%,
04/15/2029
300
331
4.25%,
07/15/2049
300
370
Mississippi
Power
Co
4.25%,
03/15/2042
100
115
National
Rural
Utilities
Cooperative
Finance
Corp
0.35%,
02/08/2024
155
153
1.00%,
06/15/2026
190
185
2.40%,
03/15/2030
105
106
3.05%,
04/25/2027
300
319
3.25%,
11/01/2025
500
532
Nevada
Power
Co
2.40%,
05/01/2030
200
201
NextEra
Energy
Capital
Holdings
Inc
0.65%,
03/01/2023
190
190
1.90%,
06/15/2028
195
193
2.25%,
06/01/2030
650
646
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
115
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
NextEra
Energy
Capital
Holdings
Inc
(continued)
2.75%,
11/01/2029
$
115
$
118
5.65%,
05/01/2079
(f)
500
566
3
Month
USD
LIBOR
+
3.16%
Northern
States
Power
Co/MN
2.25%,
04/01/2031
190
192
2.60%,
06/01/2051
160
153
2.90%,
03/01/2050
80
81
3.40%,
08/15/2042
100
108
5.35%,
11/01/2039
82
112
NorthWestern
Corp
4.18%,
11/15/2044
300
352
Ohio
Power
Co
1.63%,
01/15/2031
150
141
Oncor
Electric
Delivery
Co
LLC
0.55%,
10/01/2025
165
159
2.75%,
06/01/2024
300
311
3.10%,
09/15/2049
430
449
5.25%,
09/30/2040
51
68
Pacific
Gas
and
Electric
Co
1.37%,
03/10/2023
190
189
2.10%,
08/01/2027
1,160
1,120
2.50%,
02/01/2031
320
305
3.30%,
08/01/2040
160
148
3.50%,
08/01/2050
1,160
1,075
4.20%,
06/01/2041
190
191
PacifiCorp
2.70%,
09/15/2030
1,000
1,029
2.90%,
06/15/2052
190
186
6.25%,
10/15/2037
92
128
PECO
Energy
Co
2.80%,
06/15/2050
425
416
2.85%,
09/15/2051
175
173
3.90%,
03/01/2048
200
233
PPL
Electric
Utilities
Corp
3.00%,
10/01/2049
80
82
3.95%,
06/01/2047
300
350
Progress
Energy
Inc
7.75%,
03/01/2031
136
189
Public
Service
Co
of
Colorado
1.88%,
06/15/2031
155
151
2.70%,
01/15/2051
495
475
3.70%,
06/15/2028
300
329
Public
Service
Electric
and
Gas
Co
2.05%,
08/01/2050
165
139
2.45%,
01/15/2030
160
163
3.00%,
05/15/2027
400
423
3.15%,
01/01/2050
160
167
3.25%,
09/01/2023
400
414
3.65%,
09/01/2042
200
221
Public
Service
Enterprise
Group
Inc
0.80%,
08/15/2025
330
321
Puget
Sound
Energy
Inc
2.89%,
09/15/2051
170
167
3.25%,
09/15/2049
60
63
5.80%,
03/15/2040
351
481
San
Diego
Gas
&
Electric
Co
1.70%,
10/01/2030
170
163
3.32%,
04/15/2050
155
163
Sempra
Energy
3.40%,
02/01/2028
300
319
3.80%,
02/01/2038
300
329
4.00%,
02/01/2048
400
445
6.00%,
10/15/2039
112
155
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Southern
California
Edison
Co
0.70%,
04/03/2023
$
385
$
383
2.25%,
06/01/2030
160
158
2.85%,
08/01/2029
125
129
3.65%,
02/01/2050
315
333
4.00%,
04/01/2047
585
645
5.50%,
03/15/2040
102
128
5.95%,
02/01/2038
617
797
Southern
Co/The
1.75%,
03/15/2028
190
185
3.25%,
07/01/2026
570
603
3.75%,
09/15/2051
(f)
435
435
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.92%
4.00%,
01/15/2051
(f)
170
174
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.73%
Southern
Power
Co
0.90%,
01/15/2026
40
39
5.25%,
07/15/2043
200
250
Southwestern
Electric
Power
Co
3.85%,
02/01/2048
300
323
4.10%,
09/15/2028
400
443
6.20%,
03/15/2040
51
71
Tampa
Electric
Co
3.45%,
03/15/2051
185
202
4.35%,
05/15/2044
200
239
Tucson
Electric
Power
Co
1.50%,
08/01/2030
455
425
3.25%,
05/01/2051
195
200
Union
Electric
Co
2.15%,
03/15/2032
190
186
2.63%,
03/15/2051
165
158
3.50%,
04/15/2024
500
522
Virginia
Electric
and
Power
Co
2.30%,
11/15/2031
195
196
2.45%,
12/15/2050
90
83
2.75%,
03/15/2023
500
509
2.88%,
07/15/2029
90
94
3.15%,
01/15/2026
30
32
4.20%,
05/15/2045
600
710
4.65%,
08/15/2043
250
313
6.00%,
05/15/2037
77
105
8.88%,
11/15/2038
10
18
WEC
Energy
Group
Inc
0.55%,
09/15/2023
170
169
1.38%,
10/15/2027
165
159
2.20%,
12/15/2028
200
200
Wisconsin
Electric
Power
Co
2.05%,
12/15/2024
65
66
Wisconsin
Public
Service
Corp
2.85%,
12/01/2051
195
191
Xcel
Energy
Inc
0.50%,
10/15/2023
85
84
1.75%,
03/15/2027
280
277
2.60%,
12/01/2029
115
118
$
56,550
Electrical
Components
&
Equipment
-
0.04%
Emerson
Electric
Co
0.88%,
10/15/2026
750
730
2.20%,
12/21/2031
400
398
$
1,128
Electronics
-
0.13%
Agilent
Technologies
Inc
2.10%,
06/04/2030
160
157
2.30%,
03/12/2031
195
193
Allegion
US
Holding
Co
Inc
3.55%,
10/01/2027
500
530
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
116
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electronics
(continued)
Arrow
Electronics
Inc
4.50%,
03/01/2023
$
200
$
206
Fortive
Corp
3.15%,
06/15/2026
535
567
Honeywell
International
Inc
1.10%,
03/01/2027
190
185
1.35%,
06/01/2025
75
75
1.75%,
09/01/2031
190
185
1.95%,
06/01/2030
310
308
2.30%,
08/15/2024
365
377
2.50%,
11/01/2026
50
52
2.70%,
08/15/2029
85
89
2.80%,
06/01/2050
(a)
160
166
3.81%,
11/21/2047
477
570
Jabil
Inc
1.70%,
04/15/2026
190
190
Tyco
Electronics
Group
SA
7.13%,
10/01/2037
14
21
$
3,871
Environmental
Control
-
0.07%
Republic
Services
Inc
1.75%,
02/15/2032
90
85
2.30%,
03/01/2030
340
341
2.50%,
08/15/2024
215
221
2.90%,
07/01/2026
500
523
Waste
Connections
Inc
2.20%,
01/15/2032
385
377
Waste
Management
Inc
0.75%,
11/15/2025
90
87
2.00%,
06/01/2029
195
195
2.50%,
11/15/2050
180
171
$
2,000
Federal
&
Federally
Sponsored
Credit
-
0.01%
Federal
Farm
Credit
Banks
Funding
Corp
0.25%,
02/26/2024
385
381
Finance
-
Mortgage
Loan/Banker
-
1.16%
Fannie
Mae
0.25%,
11/27/2023
(a)
1,480
1,467
0.50%,
06/17/2025
370
363
0.50%,
11/07/2025
360
351
0.75%,
10/08/2027
500
482
0.88%,
08/05/2030
2,250
2,120
2.13%,
04/24/2026
3,000
3,111
2.38%,
01/19/2023
500
510
2.50%,
02/05/2024
500
518
2.63%,
09/06/2024
750
784
5.63%,
07/15/2037
200
301
6.63%,
11/15/2030
602
850
7.13%,
01/15/2030
199
282
7.25%,
05/15/2030
280
403
Federal
Home
Loan
Banks
0.13%,
03/17/2023
270
269
0.13%,
06/02/2023
385
382
0.13%,
08/28/2023
230
228
0.38%,
09/04/2025
170
165
2.13%,
06/09/2023
3,125
3,193
2.50%,
02/13/2024
1,000
1,036
3.25%,
11/16/2028
2,000
2,234
5.50%,
07/15/2036
700
1,015
Freddie
Mac
0.13%,
10/16/2023
345
342
0.25%,
06/26/2023
3,125
3,110
0.25%,
08/24/2023
335
333
0.25%,
09/08/2023
505
502
0.25%,
11/06/2023
550
545
0.25%,
12/04/2023
1,970
1,951
0.38%,
09/23/2025
(a)
4,060
3,950
2.75%,
06/19/2023
(a)
1,625
1,676
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Finance
-
Mortgage
Loan/Banker
(continued)
Freddie
Mac
(continued)
6.25%,
07/15/2032
$
231
$
332
6.75%,
03/15/2031
577
829
$
33,634
Food
-
0.30%
Campbell
Soup
Co
3.95%,
03/15/2025
350
374
4.15%,
03/15/2028
160
178
Conagra
Brands
Inc
1.38%,
11/01/2027
125
119
3.20%,
01/25/2023
295
301
4.85%,
11/01/2028
205
237
5.30%,
11/01/2038
120
152
5.40%,
11/01/2048
120
162
General
Mills
Inc
2.25%,
10/14/2031
170
168
3.70%,
10/17/2023
300
314
4.00%,
04/17/2025
300
322
Hershey
Co/The
1.70%,
06/01/2030
160
157
3.38%,
08/15/2046
350
389
J
M
Smucker
Co/The
2.13%,
03/15/2032
195
189
Kellogg
Co
2.10%,
06/01/2030
160
157
2.65%,
12/01/2023
417
430
3.25%,
04/01/2026
500
529
Koninklijke
Ahold
Delhaize
NV
5.70%,
10/01/2040
30
41
Kroger
Co/The
1.70%,
01/15/2031
190
180
3.70%,
08/01/2027
300
327
3.95%,
01/15/2050
175
201
4.45%,
02/01/2047
55
67
5.15%,
08/01/2043
300
392
5.40%,
07/15/2040
25
33
McCormick
&
Co
Inc/MD
0.90%,
02/15/2026
190
184
1.85%,
02/15/2031
190
181
Mondelez
International
Inc
1.50%,
02/04/2031
105
98
2.63%,
09/04/2050
625
584
Sysco
Corp
2.40%,
02/15/2030
135
135
2.45%,
12/14/2031
(a)
115
115
4.50%,
04/01/2046
300
349
4.85%,
10/01/2045
250
306
5.38%,
09/21/2035
500
629
Tyson
Foods
Inc
4.55%,
06/02/2047
520
644
$
8,644
Forest
Products
&
Paper
-
0.05%
Celulosa
Arauco
y
Constitucion
SA
4.50%,
08/01/2024
500
531
Georgia-Pacific
LLC
7.75%,
11/15/2029
51
71
8.00%,
01/15/2024
228
259
International
Paper
Co
4.80%,
06/15/2044
223
282
7.30%,
11/15/2039
25
38
Suzano
Austria
GmbH
2.50%,
09/15/2028
90
87
5.00%,
01/15/2030
300
329
$
1,597
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
117
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Gas
-
0.10%
Atmos
Energy
Corp
1.50%,
01/15/2031
$
165
$
155
3.38%,
09/15/2049
165
175
4.13%,
10/15/2044
400
466
CenterPoint
Energy
Resources
Corp
1.75%,
10/01/2030
165
156
Eastern
Energy
Gas
Holdings
LLC
2.50%,
11/15/2024
155
160
NiSource
Inc
0.95%,
08/15/2025
330
321
3.49%,
05/15/2027
20
21
3.60%,
05/01/2030
150
162
5.95%,
06/15/2041
402
550
ONE
Gas
Inc
0.85%,
03/11/2023
190
190
Southern
California
Gas
Co
2.55%,
02/01/2030
160
164
Southern
Co
Gas
Capital
Corp
1.75%,
01/15/2031
165
154
3.15%,
09/30/2051
195
193
Washington
Gas
Light
Co
3.65%,
09/15/2049
95
106
$
2,973
Hand
&
Machine
Tools
-
0.03%
Stanley
Black
&
Decker
Inc
2.30%,
03/15/2030
735
745
2.75%,
11/15/2050
175
168
$
913
Healthcare
-
Products
-
0.28%
Abbott
Laboratories
1.15%,
01/30/2028
250
243
1.40%,
06/30/2030
330
318
3.75%,
11/30/2026
266
294
4.75%,
11/30/2036
40
51
4.90%,
11/30/2046
500
684
5.30%,
05/27/2040
200
276
Baxter
International
Inc
0.87%,
12/01/2023
(h)
395
393
1.73%,
04/01/2031
175
166
1.92%,
02/01/2027
(h)
395
397
2.27%,
12/01/2028
(h)
195
196
Boston
Scientific
Corp
1.90%,
06/01/2025
160
162
2.65%,
06/01/2030
160
163
3.45%,
03/01/2024
600
627
3.85%,
05/15/2025
270
290
4.70%,
03/01/2049
50
63
7.38%,
01/15/2040
51
79
Danaher
Corp
2.60%,
10/01/2050
165
157
DH
Europe
Finance
II
Sarl
2.60%,
11/15/2029
155
160
3.25%,
11/15/2039
155
166
Koninklijke
Philips
NV
5.00%,
03/15/2042
128
163
Medtronic
Inc
4.38%,
03/15/2035
665
818
PerkinElmer
Inc
0.85%,
09/15/2024
120
118
1.90%,
09/15/2028
155
151
Stryker
Corp
3.50%,
03/15/2026
500
536
4.10%,
04/01/2043
200
235
4.63%,
03/15/2046
20
26
Thermo
Fisher
Scientific
Inc
1.22%,
10/18/2024
385
385
2.00%,
10/15/2031
190
187
2.60%,
10/01/2029
160
166
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Products
(continued)
Thermo
Fisher
Scientific
Inc
(continued)
2.80%,
10/15/2041
$
250
$
253
Zimmer
Biomet
Holdings
Inc
2.60%,
11/24/2031
165
166
$
8,089
Healthcare
-
Services
-
0.58%
Aetna
Inc
2.80%,
06/15/2023
35
36
3.50%,
11/15/2024
300
316
4.13%,
11/15/2042
100
113
6.63%,
06/15/2036
105
149
6.75%,
12/15/2037
112
162
Anthem
Inc
0.45%,
03/15/2023
190
189
1.50%,
03/15/2026
190
190
2.88%,
09/15/2029
120
126
3.13%,
05/15/2050
600
615
3.30%,
01/15/2023
325
333
3.60%,
03/15/2051
190
211
3.65%,
12/01/2027
300
329
4.38%,
12/01/2047
300
365
4.63%,
05/15/2042
30
37
4.65%,
01/15/2043
115
144
Ascension
Health
3.95%,
11/15/2046
500
611
Baylor
Scott
&
White
Holdings
3.97%,
11/15/2046
232
275
Children's
Hospital
Medical
Center/Cincinnati
OH
4.27%,
05/15/2044
215
272
CommonSpirit
Health
4.35%,
11/01/2042
200
230
HCA
Inc
2.38%,
07/15/2031
190
187
3.50%,
07/15/2051
190
194
4.50%,
02/15/2027
800
881
5.25%,
06/15/2026
750
843
Humana
Inc
1.35%,
02/03/2027
190
185
2.15%,
02/03/2032
190
184
3.13%,
08/15/2029
85
89
4.50%,
04/01/2025
160
174
4.95%,
10/01/2044
325
418
Kaiser
Foundation
Hospitals
3.27%,
11/01/2049
230
246
4.15%,
05/01/2047
470
579
Laboratory
Corp
of
America
Holdings
2.30%,
12/01/2024
310
318
2.95%,
12/01/2029
310
323
4.70%,
02/01/2045
115
140
Mass
General
Brigham
Inc
3.19%,
07/01/2049
315
334
4.12%,
07/01/2055
300
373
Memorial
Sloan-Kettering
Cancer
Center
4.13%,
07/01/2052
200
252
4.20%,
07/01/2055
250
316
Mount
Sinai
Hospitals
Group
Inc
3.98%,
07/01/2048
400
462
Quest
Diagnostics
Inc
2.95%,
06/30/2030
155
161
UnitedHealth
Group
Inc
0.55%,
05/15/2024
195
193
1.25%,
01/15/2026
160
159
2.00%,
05/15/2030
160
159
2.30%,
05/15/2031
195
198
2.38%,
08/15/2024
250
259
2.75%,
05/15/2040
160
162
2.88%,
08/15/2029
175
185
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
118
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Services
(continued)
UnitedHealth
Group
Inc
(continued)
2.90%,
05/15/2050
$
160
$
163
3.05%,
05/15/2041
195
204
3.25%,
05/15/2051
120
130
3.45%,
01/15/2027
540
588
3.50%,
08/15/2039
200
222
3.70%,
08/15/2049
350
403
4.25%,
06/15/2048
165
204
4.38%,
03/15/2042
750
914
4.45%,
12/15/2048
120
153
4.63%,
07/15/2035
30
37
4.75%,
07/15/2045
700
916
6.50%,
06/15/2037
77
114
$
16,725
Home
Builders
-
0.01%
DR
Horton
Inc
1.30%,
10/15/2026
190
185
1.40%,
10/15/2027
165
160
$
345
Insurance
-
0.77%
Aflac
Inc
1.13%,
03/15/2026
195
191
3.63%,
11/15/2024
230
246
Allied
World
Assurance
Co
Holdings
Ltd
4.35%,
10/29/2025
500
536
Allstate
Corp/The
0.75%,
12/15/2025
160
156
1.45%,
12/15/2030
160
151
3.28%,
12/15/2026
500
537
5.55%,
05/09/2035
200
262
American
International
Group
Inc
3.75%,
07/10/2025
20
21
3.88%,
01/15/2035
750
829
4.20%,
04/01/2028
190
212
4.38%,
01/15/2055
30
37
4.70%,
07/10/2035
750
894
4.80%,
07/10/2045
50
64
Aon
Corp
2.80%,
05/15/2030
160
165
Aon
Corp
/
Aon
Global
Holdings
PLC
2.60%,
12/02/2031
245
249
2.90%,
08/23/2051
195
188
Arch
Capital
Finance
LLC
5.03%,
12/15/2046
250
323
Arch
Capital
Group
US
Inc
5.14%,
11/01/2043
375
489
Athene
Holding
Ltd
4.13%,
01/12/2028
500
547
AXA
SA
8.60%,
12/15/2030
38
55
Berkshire
Hathaway
Finance
Corp
1.45%,
10/15/2030
165
158
1.85%,
03/12/2030
80
79
2.50%,
01/15/2051
190
176
2.85%,
10/15/2050
125
123
4.20%,
08/15/2048
285
346
4.25%,
01/15/2049
400
491
4.30%,
05/15/2043
300
359
5.75%,
01/15/2040
115
162
Berkshire
Hathaway
Inc
2.75%,
03/15/2023
30
31
3.13%,
03/15/2026
350
374
4.50%,
02/11/2043
25
31
Chubb
Corp/The
6.50%,
05/15/2038
10
15
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Insurance
(continued)
Chubb
INA
Holdings
Inc
1.38%,
09/15/2030
$
335
$
316
2.85%,
12/15/2051
100
100
3.35%,
05/03/2026
30
32
4.35%,
11/03/2045
25
31
6.70%,
05/15/2036
250
366
CNA
Financial
Corp
2.05%,
08/15/2030
165
160
Equitable
Holdings
Inc
4.35%,
04/20/2028
605
678
Hartford
Financial
Services
Group
Inc/The
2.90%,
09/15/2051
165
163
3.60%,
08/19/2049
170
186
4.30%,
04/15/2043
250
294
Lincoln
National
Corp
4.00%,
09/01/2023
1,000
1,048
4.35%,
03/01/2048
55
66
7.00%,
06/15/2040
47
72
Loews
Corp
2.63%,
05/15/2023
200
204
4.13%,
05/15/2043
200
231
Manulife
Financial
Corp
5.38%,
03/04/2046
250
350
Markel
Corp
3.45%,
05/07/2052
250
258
Marsh
&
McLennan
Cos
Inc
2.38%,
12/15/2031
150
151
3.88%,
03/15/2024
500
529
4.38%,
03/15/2029
50
57
4.90%,
03/15/2049
400
538
MetLife
Inc
3.00%,
03/01/2025
300
315
3.60%,
04/10/2024
250
264
4.05%,
03/01/2045
750
891
4.37%,
09/15/2023
235
249
4.60%,
05/13/2046
225
288
4.88%,
11/13/2043
20
26
5.70%,
06/15/2035
164
220
6.40%,
12/15/2066
288
354
3
Month
USD
LIBOR
+
2.21%
Progressive
Corp/The
3.20%,
03/26/2030
160
173
4.35%,
04/25/2044
200
245
Prudential
Financial
Inc
2.10%,
03/10/2030
160
160
3.70%,
10/01/2050
(f)
165
167
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.04%
3.70%,
03/13/2051
630
717
3.91%,
12/07/2047
177
206
5.20%,
03/15/2044
(f)
350
364
3
Month
USD
LIBOR
+
3.04%
5.70%,
12/14/2036
25
34
5.70%,
09/15/2048
(f)
400
448
3
Month
USD
LIBOR
+
2.67%
Reinsurance
Group
of
America
Inc
4.70%,
09/15/2023
200
212
Travelers
Cos
Inc/The
3.05%,
06/08/2051
270
282
4.00%,
05/30/2047
400
478
6.25%,
06/15/2037
12
17
6.75%,
06/20/2036
51
75
Trinity
Acquisition
PLC
4.40%,
03/15/2026
500
547
W
R
Berkley
Corp
4.00%,
05/12/2050
85
97
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
119
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Insurance
(continued)
Willis
North
America
Inc
2.95%,
09/15/2029
$
55
$
56
3.60%,
05/15/2024
300
314
3.88%,
09/15/2049
165
179
XLIT
Ltd
5.25%,
12/15/2043
400
552
$
22,257
Internet
-
0.44%
Alibaba
Group
Holding
Ltd
2.13%,
02/09/2031
200
193
3.15%,
02/09/2051
300
281
3.40%,
12/06/2027
325
344
3.60%,
11/28/2024
300
316
4.20%,
12/06/2047
575
632
4.40%,
12/06/2057
305
346
Alphabet
Inc
0.80%,
08/15/2027
330
320
1.10%,
08/15/2030
165
156
1.90%,
08/15/2040
165
150
2.00%,
08/15/2026
30
31
2.05%,
08/15/2050
165
147
2.25%,
08/15/2060
165
147
3.38%,
02/25/2024
530
558
Amazon.com
Inc
0.45%,
05/12/2024
365
361
1.20%,
06/03/2027
465
459
1.50%,
06/03/2030
465
451
1.65%,
05/12/2028
560
561
2.10%,
05/12/2031
365
370
2.40%,
02/22/2023
370
377
2.50%,
06/03/2050
765
728
2.88%,
05/12/2041
365
379
3.10%,
05/12/2051
365
390
3.15%,
08/22/2027
490
529
3.25%,
05/12/2061
385
414
3.80%,
12/05/2024
20
22
3.88%,
08/22/2037
340
400
4.05%,
08/22/2047
30
36
4.80%,
12/05/2034
30
38
4.95%,
12/05/2044
515
703
Baidu
Inc
1.72%,
04/09/2026
200
198
2.38%,
10/09/2030
200
194
3.08%,
04/07/2025
200
207
4.13%,
06/30/2025
(a)
500
538
eBay
Inc
1.90%,
03/11/2025
160
162
2.60%,
05/10/2031
195
197
3.45%,
08/01/2024
605
635
4.00%,
07/15/2042
100
112
Expedia
Group
Inc
2.95%,
03/15/2031
720
719
$
12,801
Iron
&
Steel
-
0.08%
Nucor
Corp
2.00%,
06/01/2025
155
158
4.00%,
08/01/2023
500
521
Steel
Dynamics
Inc
1.65%,
10/15/2027
85
83
2.40%,
06/15/2025
40
41
2.80%,
12/15/2024
500
520
Vale
Overseas
Ltd
6.25%,
08/10/2026
400
463
6.88%,
11/21/2036
317
421
8.25%,
01/17/2034
38
53
$
2,260
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Lodging
-
0.04%
Las
Vegas
Sands
Corp
3.20%,
08/08/2024
$
170
$
173
3.50%,
08/18/2026
85
86
3.90%,
08/08/2029
170
171
Marriott
International
Inc/MD
2.85%,
04/15/2031
195
194
Sands
China
Ltd
2.30%,
03/08/2027
(h)
400
377
5.40%,
08/08/2028
200
215
$
1,216
Machinery
-
Construction
&
Mining
-
0.09%
Caterpillar
Financial
Services
Corp
0.25%,
03/01/2023
190
190
0.45%,
09/14/2023
735
732
0.45%,
05/17/2024
195
193
0.65%,
07/07/2023
165
165
0.80%,
11/13/2025
180
177
1.10%,
09/14/2027
(a)
335
325
1.15%,
09/14/2026
195
192
Caterpillar
Inc
2.60%,
04/09/2030
150
156
3.25%,
09/19/2049
160
175
3.40%,
05/15/2024
30
31
3.80%,
08/15/2042
105
122
6.05%,
08/15/2036
132
186
$
2,644
Machinery
-
Diversified
-
0.16%
CNH
Industrial
Capital
LLC
1.45%,
07/15/2026
200
196
1.88%,
01/15/2026
165
165
Deere
&
Co
2.88%,
09/07/2049
165
170
3.10%,
04/15/2030
160
172
3.90%,
06/09/2042
30
36
5.38%,
10/16/2029
500
619
Dover
Corp
5.38%,
03/01/2041
77
100
John
Deere
Capital
Corp
0.25%,
01/17/2023
190
190
0.40%,
10/10/2023
165
164
0.70%,
07/05/2023
510
510
0.70%,
01/15/2026
155
150
1.05%,
06/17/2026
190
187
1.20%,
04/06/2023
120
121
1.50%,
03/06/2028
190
187
2.00%,
06/17/2031
195
195
2.05%,
01/09/2025
160
164
2.80%,
03/06/2023
20
21
2.80%,
07/18/2029
385
406
Otis
Worldwide
Corp
2.06%,
04/05/2025
160
163
2.57%,
02/15/2030
160
162
3.36%,
02/15/2050
160
169
Rockwell
Automation
Inc
1.75%,
08/15/2031
135
131
2.80%,
08/15/2061
190
186
$
4,564
Media
-
0.94%
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
2.25%,
01/15/2029
385
376
2.30%,
02/01/2032
145
138
2.80%,
04/01/2031
405
401
3.50%,
06/01/2041
380
370
3.70%,
04/01/2051
405
392
3.85%,
04/01/2061
145
137
3.90%,
06/01/2052
195
196
4.40%,
12/01/2061
95
98
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
120
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
(continued)
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
(continued)
4.80%,
03/01/2050
$
545
$
610
4.91%,
07/23/2025
900
991
5.75%,
04/01/2048
605
754
6.48%,
10/23/2045
435
594
Comcast
Corp
1.50%,
02/15/2031
165
156
2.35%,
01/15/2027
60
62
2.45%,
08/15/2052
165
148
2.65%,
02/01/2030
125
130
2.65%,
08/15/2062
165
146
2.89%,
11/01/2051
(h)
1,447
1,401
2.94%,
11/01/2056
(h)
2,183
2,079
2.99%,
11/01/2063
(h)
660
626
3.15%,
03/01/2026
30
32
3.25%,
11/01/2039
245
258
3.38%,
08/15/2025
525
561
3.40%,
07/15/2046
20
21
3.45%,
02/01/2050
485
518
3.55%,
05/01/2028
125
137
3.70%,
04/15/2024
1,250
1,328
3.75%,
04/01/2040
860
963
3.90%,
03/01/2038
150
170
4.00%,
08/15/2047
30
35
4.00%,
03/01/2048
400
461
4.00%,
11/01/2049
20
23
4.15%,
10/15/2028
500
568
4.25%,
01/15/2033
120
140
5.65%,
06/15/2035
20
26
7.05%,
03/15/2033
15
22
Discovery
Communications
LLC
3.63%,
05/15/2030
180
192
3.95%,
06/15/2025
400
426
3.95%,
03/20/2028
500
543
4.00%,
09/15/2055
601
635
Fox
Corp
3.05%,
04/07/2025
40
42
5.48%,
01/25/2039
200
258
5.58%,
01/25/2049
500
682
Grupo
Televisa
SAB
4.63%,
01/30/2026
500
540
NBCUniversal
Media
LLC
4.45%,
01/15/2043
10
12
Thomson
Reuters
Corp
5.85%,
04/15/2040
25
35
Time
Warner
Cable
LLC
5.50%,
09/01/2041
340
412
5.88%,
11/15/2040
20
25
6.55%,
05/01/2037
176
230
6.75%,
06/15/2039
77
105
7.30%,
07/01/2038
300
425
Time
Warner
Entertainment
Co
LP
8.38%,
07/15/2033
95
138
TWDC
Enterprises
18
Corp
3.70%,
12/01/2042
100
113
7.00%,
03/01/2032
51
72
ViacomCBS
Inc
3.50%,
01/15/2025
400
422
4.00%,
01/15/2026
515
556
4.20%,
05/19/2032
200
226
4.38%,
03/15/2043
435
495
4.85%,
07/01/2042
200
238
6.88%,
04/30/2036
181
259
7.88%,
07/30/2030
178
246
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
(continued)
Walt
Disney
Co/The
1.75%,
08/30/2024
$
325
$
330
1.75%,
01/13/2026
635
642
2.00%,
09/01/2029
245
244
2.20%,
01/13/2028
860
876
2.65%,
01/13/2031
395
411
2.75%,
09/01/2049
325
314
3.35%,
03/24/2025
120
128
3.50%,
05/13/2040
160
175
3.60%,
01/13/2051
160
181
3.70%,
03/23/2027
120
132
4.63%,
03/23/2040
240
298
4.75%,
11/15/2046
230
301
4.95%,
10/15/2045
350
461
6.20%,
12/15/2034
154
215
6.40%,
12/15/2035
98
140
$
27,243
Metal
Fabrication
&
Hardware
-
0.01%
Precision
Castparts
Corp
2.50%,
01/15/2023
100
101
3.25%,
06/15/2025
25
27
4.38%,
06/15/2045
250
309
$
437
Mining
-
0.16%
Barrick
Gold
Corp
5.25%,
04/01/2042
20
26
Barrick
North
America
Finance
LLC
5.75%,
05/01/2043
355
482
Barrick
PD
Australia
Finance
Pty
Ltd
5.95%,
10/15/2039
90
122
BHP
Billiton
Finance
USA
Ltd
4.13%,
02/24/2042
500
592
5.00%,
09/30/2043
270
357
Newmont
Corp
2.25%,
10/01/2030
610
601
2.60%,
07/15/2032
140
140
4.88%,
03/15/2042
20
25
Rio
Tinto
Alcan
Inc
6.13%,
12/15/2033
77
106
Rio
Tinto
Finance
USA
Ltd
2.75%,
11/02/2051
175
174
Rio
Tinto
Finance
USA
PLC
4.75%,
03/22/2042
328
420
Southern
Copper
Corp
5.88%,
04/23/2045
350
481
6.75%,
04/16/2040
258
361
Teck
Resources
Ltd
3.90%,
07/15/2030
695
747
$
4,634
Miscellaneous
Manufacturers
-
0.22%
3M
Co
1.75%,
02/14/2023
65
66
2.00%,
02/14/2025
130
133
2.38%,
08/26/2029
500
513
3.25%,
08/26/2049
(a)
850
926
Eaton
Corp
3.10%,
09/15/2027
575
612
4.00%,
11/02/2032
100
115
4.15%,
11/02/2042
50
58
GE
Capital
International
Funding
Co
Unlimited
Co
4.42%,
11/15/2035
1,081
1,290
General
Electric
Co
6.75%,
03/15/2032
483
659
Illinois
Tool
Works
Inc
2.65%,
11/15/2026
500
524
3.50%,
03/01/2024
350
367
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
121
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Miscellaneous
Manufacturers
(continued)
Trane
Technologies
Luxembourg
Finance
SA
3.80%,
03/21/2029
$
600
$
655
4.65%,
11/01/2044
300
370
$
6,288
Oil
&
Gas
-
0.96%
BP
Capital
Markets
America
Inc
1.75%,
08/10/2030
460
442
2.77%,
11/10/2050
625
589
2.94%,
06/04/2051
190
182
3.00%,
02/24/2050
160
157
3.00%,
03/17/2052
195
191
3.06%,
06/17/2041
385
390
3.19%,
04/06/2025
275
290
3.54%,
04/06/2027
275
297
3.59%,
04/14/2027
30
32
BP
Capital
Markets
PLC
3.28%,
09/19/2027
175
188
3.72%,
11/28/2028
40
44
3.81%,
02/10/2024
400
422
Canadian
Natural
Resources
Ltd
2.95%,
01/15/2023
30
31
3.85%,
06/01/2027
655
702
4.95%,
06/01/2047
20
25
6.25%,
03/15/2038
250
329
Chevron
Corp
1.14%,
05/11/2023
85
85
1.55%,
05/11/2025
85
86
2.00%,
05/11/2027
160
162
2.24%,
05/11/2030
160
162
2.95%,
05/16/2026
355
376
3.08%,
05/11/2050
160
170
Chevron
USA
Inc
0.43%,
08/11/2023
250
249
0.69%,
08/12/2025
330
323
1.02%,
08/12/2027
165
159
2.34%,
08/12/2050
165
152
3.25%,
10/15/2029
325
351
Conoco
Funding
Co
7.25%,
10/15/2031
200
282
ConocoPhillips
4.30%,
08/15/2028
(h)
300
338
4.88%,
10/01/2047
(h)
120
158
6.50%,
02/01/2039
169
245
ConocoPhillips
Co
4.30%,
11/15/2044
420
503
6.95%,
04/15/2029
202
266
Devon
Energy
Corp
5.00%,
06/15/2045
10
12
5.60%,
07/15/2041
425
533
Diamondback
Energy
Inc
2.88%,
12/01/2024
155
161
3.25%,
12/01/2026
155
163
EOG
Resources
Inc
2.63%,
03/15/2023
200
203
4.15%,
01/15/2026
350
382
Equinor
ASA
1.75%,
01/22/2026
160
161
2.45%,
01/17/2023
30
31
2.65%,
01/15/2024
400
412
2.88%,
04/06/2025
145
151
3.00%,
04/06/2027
645
680
3.25%,
11/18/2049
450
477
3.63%,
04/06/2040
145
161
5.10%,
08/17/2040
263
345
Exxon
Mobil
Corp
1.57%,
04/15/2023
230
233
2.02%,
08/16/2024
400
410
2.28%,
08/16/2026
500
516
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Exxon
Mobil
Corp
(continued)
2.44%,
08/16/2029
$
150
$
154
2.61%,
10/15/2030
305
316
2.99%,
03/19/2025
305
321
3.00%,
08/16/2039
150
152
3.10%,
08/16/2049
450
456
3.45%,
04/15/2051
805
872
4.23%,
03/19/2040
305
360
Hess
Corp
5.60%,
02/15/2041
51
63
7.13%,
03/15/2033
221
296
7.30%,
08/15/2031
25
33
HollyFrontier
Corp
5.88%,
04/01/2026
475
533
Marathon
Oil
Corp
6.60%,
10/01/2037
223
291
Marathon
Petroleum
Corp
3.63%,
09/15/2024
400
421
5.00%,
09/15/2054
200
237
5.13%,
12/15/2026
300
341
Phillips
66
1.30%,
02/15/2026
90
88
2.15%,
12/15/2030
410
395
3.85%,
04/09/2025
490
522
5.88%,
05/01/2042
128
176
Pioneer
Natural
Resources
Co
1.13%,
01/15/2026
190
184
1.90%,
08/15/2030
165
157
2.15%,
01/15/2031
190
183
Shell
International
Finance
BV
0.38%,
09/15/2023
170
169
2.00%,
11/07/2024
155
159
2.38%,
11/07/2029
155
158
2.50%,
09/12/2026
330
345
2.75%,
04/06/2030
600
627
2.88%,
11/26/2041
380
380
3.13%,
11/07/2049
155
159
3.25%,
04/06/2050
600
638
3.63%,
08/21/2042
100
110
4.00%,
05/10/2046
245
285
4.38%,
05/11/2045
490
595
4.55%,
08/12/2043
35
44
5.50%,
03/25/2040
25
34
6.38%,
12/15/2038
43
63
Suncor
Energy
Inc
2.80%,
05/15/2023
160
164
3.75%,
03/04/2051
190
204
4.00%,
11/15/2047
90
100
5.95%,
05/15/2035
400
514
6.50%,
06/15/2038
428
585
6.80%,
05/15/2038
12
17
6.85%,
06/01/2039
5
7
TotalEnergies
Capital
International
SA
2.43%,
01/10/2025
85
88
2.83%,
01/10/2030
85
89
2.99%,
06/29/2041
370
375
3.13%,
05/29/2050
510
523
3.39%,
06/29/2060
370
392
3.46%,
07/12/2049
85
92
Valero
Energy
Corp
2.80%,
12/01/2031
395
394
2.85%,
04/15/2025
170
176
6.63%,
06/15/2037
234
315
7.50%,
04/15/2032
15
21
$
27,782
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
122
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
Services
-
0.06%
Baker
Hughes
Holdings
LLC
/
Baker
Hughes
Co-Obligor
Inc
2.06%,
12/15/2026
$
200
$
202
2.77%,
12/15/2022
155
158
3.14%,
11/07/2029
155
163
3.34%,
12/15/2027
165
176
4.08%,
12/15/2047
170
193
Halliburton
Co
3.80%,
11/15/2025
62
67
4.50%,
11/15/2041
51
56
4.85%,
11/15/2035
275
323
7.45%,
09/15/2039
10
15
NOV
Inc
3.60%,
12/01/2029
155
160
3.95%,
12/01/2042
200
196
Schlumberger
Investment
SA
2.65%,
06/26/2030
165
169
$
1,878
Packaging
&
Containers
-
0.04%
Packaging
Corp
of
America
3.00%,
12/15/2029
310
324
3.05%,
10/01/2051
165
164
4.05%,
12/15/2049
155
181
WestRock
RKT
LLC
4.00%,
03/01/2023
500
514
WRKCo
Inc
3.00%,
06/15/2033
80
82
$
1,265
Pharmaceuticals
-
1.56%
AbbVie
Inc
2.60%,
11/21/2024
465
483
2.95%,
11/21/2026
310
327
3.20%,
05/14/2026
335
355
3.20%,
11/21/2029
775
829
3.75%,
11/14/2023
350
366
3.80%,
03/15/2025
330
351
3.85%,
06/15/2024
445
471
4.05%,
11/21/2039
385
442
4.25%,
11/14/2028
220
249
4.25%,
11/21/2049
620
745
4.30%,
05/14/2036
170
200
4.40%,
11/06/2042
200
239
4.45%,
05/14/2046
280
339
4.50%,
05/14/2035
300
359
4.63%,
10/01/2042
100
122
4.70%,
05/14/2045
330
409
4.75%,
03/15/2045
235
293
4.88%,
11/14/2048
210
271
AmerisourceBergen
Corp
3.40%,
05/15/2024
250
261
Astrazeneca
Finance
LLC
0.70%,
05/28/2024
295
293
1.75%,
05/28/2028
195
194
2.25%,
05/28/2031
190
191
AstraZeneca
PLC
0.30%,
05/26/2023
180
179
0.70%,
04/08/2026
125
121
1.38%,
08/06/2030
165
156
2.13%,
08/06/2050
85
75
3.00%,
05/28/2051
155
162
3.38%,
11/16/2025
905
971
4.00%,
09/18/2042
125
149
4.38%,
11/16/2045
185
237
4.38%,
08/17/2048
90
116
6.45%,
09/15/2037
164
241
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Becton
Dickinson
and
Co
1.96%,
02/11/2031
$
190
$
183
2.82%,
05/20/2030
160
166
3.36%,
06/06/2024
10
11
3.70%,
06/06/2027
900
981
3.73%,
12/15/2024
54
57
4.67%,
06/06/2047
35
44
4.69%,
12/15/2044
196
247
Bristol-Myers
Squibb
Co
0.75%,
11/13/2025
180
175
1.13%,
11/13/2027
315
308
1.45%,
11/13/2030
180
172
2.55%,
11/13/2050
180
170
2.90%,
07/26/2024
389
407
3.25%,
02/20/2023
384
394
3.25%,
08/01/2042
300
319
3.40%,
07/26/2029
540
591
3.90%,
02/20/2028
185
206
4.13%,
06/15/2039
230
272
4.25%,
10/26/2049
430
531
4.35%,
11/15/2047
150
185
4.55%,
02/20/2048
185
236
5.00%,
08/15/2045
23
31
Cardinal
Health
Inc
3.08%,
06/15/2024
50
52
3.20%,
03/15/2023
200
205
3.41%,
06/15/2027
200
215
4.60%,
03/15/2043
100
115
Cigna
Corp
0.61%,
03/15/2024
90
89
1.25%,
03/15/2026
370
365
2.40%,
03/15/2030
860
868
3.20%,
03/15/2040
160
166
3.40%,
03/15/2051
185
193
3.75%,
07/15/2023
272
283
4.13%,
11/15/2025
270
295
4.38%,
10/15/2028
750
852
4.80%,
08/15/2038
400
492
4.80%,
07/15/2046
25
32
4.90%,
12/15/2048
360
465
6.13%,
11/15/2041
16
23
CVS
Health
Corp
1.30%,
08/21/2027
165
160
1.75%,
08/21/2030
165
157
1.88%,
02/28/2031
185
178
2.63%,
08/15/2024
420
435
2.70%,
08/21/2040
750
722
3.00%,
08/15/2026
375
396
3.25%,
08/15/2029
170
181
4.30%,
03/25/2028
219
246
4.78%,
03/25/2038
485
590
5.05%,
03/25/2048
980
1,281
5.13%,
07/20/2045
370
481
5.30%,
12/05/2043
25
33
Eli
Lilly
&
Co
2.25%,
05/15/2050
390
357
2.50%,
09/15/2060
160
150
3.95%,
03/15/2049
400
484
GlaxoSmithKline
Capital
Inc
3.63%,
05/15/2025
600
646
3.88%,
05/15/2028
545
610
5.38%,
04/15/2034
500
661
GlaxoSmithKline
Capital
PLC
0.53%,
10/01/2023
165
164
Johnson
&
Johnson
0.55%,
09/01/2025
370
362
0.95%,
09/01/2027
370
362
1.30%,
09/01/2030
740
713
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
123
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Johnson
&
Johnson
(continued)
2.10%,
09/01/2040
$
370
$
350
2.25%,
09/01/2050
370
341
2.45%,
03/01/2026
30
31
2.45%,
09/01/2060
370
349
3.50%,
01/15/2048
90
103
3.63%,
03/03/2037
20
23
3.70%,
03/01/2046
225
264
3.75%,
03/03/2047
30
35
4.95%,
05/15/2033
201
257
McKesson
Corp
0.90%,
12/03/2025
185
179
Mead
Johnson
Nutrition
Co
4.60%,
06/01/2044
250
322
Merck
&
Co
Inc
0.75%,
02/24/2026
80
78
1.45%,
06/24/2030
365
350
1.70%,
06/10/2027
340
342
1.90%,
12/10/2028
190
191
2.15%,
12/10/2031
380
381
2.35%,
06/24/2040
285
272
2.75%,
02/10/2025
385
403
2.75%,
12/10/2051
235
233
2.80%,
05/18/2023
230
237
3.60%,
09/15/2042
100
112
3.70%,
02/10/2045
10
12
3.90%,
03/07/2039
115
135
4.00%,
03/07/2049
170
206
4.15%,
05/18/2043
200
243
Novartis
Capital
Corp
1.75%,
02/14/2025
325
330
2.00%,
02/14/2027
325
330
2.20%,
08/14/2030
160
162
2.75%,
08/14/2050
160
162
3.00%,
11/20/2025
500
530
4.40%,
05/06/2044
350
447
Pfizer
Inc
0.80%,
05/28/2025
445
440
1.70%,
05/28/2030
195
191
1.75%,
08/18/2031
155
151
2.55%,
05/28/2040
450
449
2.63%,
04/01/2030
160
169
2.70%,
05/28/2050
190
191
3.00%,
06/15/2023
530
549
3.45%,
03/15/2029
210
231
4.00%,
03/15/2049
140
171
4.40%,
05/15/2044
30
37
5.60%,
09/15/2040
380
534
7.20%,
03/15/2039
176
284
Sanofi
3.38%,
06/19/2023
400
415
3.63%,
06/19/2028
400
449
Shire
Acquisitions
Investments
Ireland
DAC
3.20%,
09/23/2026
525
557
Takeda
Pharmaceutical
Co
Ltd
2.05%,
03/31/2030
405
397
3.18%,
07/09/2050
405
408
Utah
Acquisition
Sub
Inc
3.95%,
06/15/2026
595
642
5.25%,
06/15/2046
170
208
Viatris
Inc
2.30%,
06/22/2027
120
121
2.70%,
06/22/2030
160
161
3.85%,
06/22/2040
120
127
4.00%,
06/22/2050
160
170
Wyeth
LLC
5.95%,
04/01/2037
91
128
6.50%,
02/01/2034
144
206
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Zoetis
Inc
2.00%,
05/15/2030
$
350
$
345
3.00%,
05/15/2050
175
182
3.25%,
02/01/2023
100
102
3.95%,
09/12/2047
5
6
$
45,392
Pipelines
-
0.89%
Boardwalk
Pipelines
LP
3.38%,
02/01/2023
200
204
Cheniere
Corpus
Christi
Holdings
LLC
3.70%,
11/15/2029
310
332
Columbia
Pipeline
Group
Inc
5.80%,
06/01/2045
250
331
Eastern
Gas
Transmission
&
Storage
Inc
4.80%,
11/01/2043
(h)
300
364
Enbridge
Energy
Partners
LP
7.38%,
10/15/2045
100
156
Enbridge
Inc
1.60%,
10/04/2026
60
59
2.50%,
01/15/2025
155
159
2.50%,
08/01/2033
390
383
3.13%,
11/15/2029
155
162
3.40%,
08/01/2051
390
395
5.50%,
12/01/2046
30
41
Energy
Transfer
LP
2.90%,
05/15/2025
315
325
3.45%,
01/15/2023
200
204
3.60%,
02/01/2023
15
15
3.75%,
05/15/2030
160
170
4.75%,
01/15/2026
50
55
4.95%,
01/15/2043
200
214
5.00%,
05/15/2044
500
537
5.15%,
03/15/2045
400
452
5.25%,
04/15/2029
400
458
5.30%,
04/15/2047
15
17
5.35%,
05/15/2045
15
17
5.95%,
10/01/2043
350
421
6.13%,
12/15/2045
525
653
6.25%,
04/15/2049
500
653
6.50%,
02/01/2042
402
518
Enterprise
Products
Operating
LLC
2.80%,
01/31/2030
120
125
3.30%,
02/15/2053
65
65
3.35%,
03/15/2023
300
307
3.70%,
02/15/2026
525
563
3.70%,
01/31/2051
250
262
3.75%,
02/15/2025
500
531
3.90%,
02/15/2024
250
263
4.25%,
02/15/2048
155
175
4.85%,
08/15/2042
300
358
4.85%,
03/15/2044
430
518
4.90%,
05/15/2046
400
484
6.13%,
10/15/2039
123
166
6.45%,
09/01/2040
177
245
6.88%,
03/01/2033
15
20
Kinder
Morgan
Energy
Partners
LP
3.50%,
09/01/2023
200
207
4.70%,
11/01/2042
200
226
5.00%,
03/01/2043
100
117
5.40%,
09/01/2044
400
486
6.38%,
03/01/2041
128
170
6.50%,
09/01/2039
112
149
6.95%,
01/15/2038
112
155
7.40%,
03/15/2031
177
236
Kinder
Morgan
Inc
1.75%,
11/15/2026
190
189
2.00%,
02/15/2031
310
295
3.15%,
01/15/2023
500
511
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
124
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pipelines
(continued)
Kinder
Morgan
Inc
(continued)
3.25%,
08/01/2050
$
310
$
297
3.60%,
02/15/2051
155
156
4.30%,
06/01/2025
55
59
5.05%,
02/15/2046
15
18
5.55%,
06/01/2045
50
63
MPLX
LP
1.75%,
03/01/2026
165
163
4.13%,
03/01/2027
425
465
4.25%,
12/01/2027
400
443
4.50%,
07/15/2023
30
31
4.50%,
04/15/2038
220
246
4.70%,
04/15/2048
185
213
4.88%,
12/01/2024
30
33
4.90%,
04/15/2058
60
69
5.20%,
03/01/2047
330
404
5.20%,
12/01/2047
200
243
5.50%,
02/15/2049
170
217
ONEOK
Inc
2.20%,
09/15/2025
160
162
2.75%,
09/01/2024
175
180
3.40%,
09/01/2029
100
104
4.45%,
09/01/2049
500
552
ONEOK
Partners
LP
5.00%,
09/15/2023
250
263
Plains
All
American
Pipeline
LP
/
PAA
Finance
Corp
2.85%,
01/31/2023
200
203
4.30%,
01/31/2043
200
201
4.50%,
12/15/2026
300
329
4.65%,
10/15/2025
15
16
Sabine
Pass
Liquefaction
LLC
5.00%,
03/15/2027
360
404
5.63%,
03/01/2025
390
433
5.75%,
05/15/2024
300
326
5.88%,
06/30/2026
345
396
Spectra
Energy
Partners
LP
5.95%,
09/25/2043
200
277
Texas
Eastern
Transmission
LP
7.00%,
07/15/2032
100
135
TransCanada
PipeLines
Ltd
2.50%,
10/12/2031
195
194
4.25%,
05/15/2028
300
335
4.75%,
05/15/2038
300
357
4.88%,
05/15/2048
420
534
5.60%,
03/31/2034
300
375
6.10%,
06/01/2040
25
35
7.25%,
08/15/2038
51
76
Williams
Cos
Inc/The
2.60%,
03/15/2031
1,090
1,083
3.50%,
10/15/2051
195
197
3.75%,
06/15/2027
400
432
3.90%,
01/15/2025
350
372
5.10%,
09/15/2045
180
221
6.30%,
04/15/2040
343
464
$
25,894
Private
Equity
-
0.01%
Brookfield
Asset
Management
Inc
4.00%,
01/15/2025
300
321
Regional
Authority
-
0.34%
Province
of
Alberta
Canada
1.00%,
05/20/2025
555
550
3.30%,
03/15/2028
850
931
Province
of
British
Columbia
Canada
0.90%,
07/20/2026
385
377
1.30%,
01/29/2031
185
178
6.50%,
01/15/2026
18
22
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Regional
Authority
(continued)
Province
of
Manitoba
Canada
1.50%,
10/25/2028
$
190
$
188
3.05%,
05/14/2024
500
524
Province
of
Ontario
Canada
0.63%,
01/21/2026
95
92
1.05%,
04/14/2026
380
375
1.13%,
10/07/2030
325
307
1.75%,
01/24/2023
2,015
2,039
2.00%,
10/02/2029
400
406
3.20%,
05/16/2024
250
263
3.40%,
10/17/2023
305
319
Province
of
Quebec
Canada
0.60%,
07/23/2025
1,145
1,119
1.35%,
05/28/2030
760
735
1.50%,
02/11/2025
295
299
2.63%,
02/13/2023
1,000
1,023
7.50%,
09/15/2029
64
89
$
9,836
REITs
-
0.92%
Alexandria
Real
Estate
Equities
Inc
1.88%,
02/01/2033
250
235
2.75%,
12/15/2029
80
82
3.00%,
05/18/2051
190
188
3.38%,
08/15/2031
115
124
4.00%,
02/01/2050
85
99
4.90%,
12/15/2030
80
96
American
Campus
Communities
Operating
Partnership
LP
2.25%,
01/15/2029
115
114
2.85%,
02/01/2030
155
158
3.63%,
11/15/2027
300
320
American
Tower
Corp
0.60%,
01/15/2024
360
356
1.30%,
09/15/2025
80
79
1.60%,
04/15/2026
190
188
1.88%,
10/15/2030
165
156
2.90%,
01/15/2030
160
164
2.95%,
01/15/2051
180
171
3.38%,
10/15/2026
500
531
3.50%,
01/31/2023
530
544
3.70%,
10/15/2049
165
176
AvalonBay
Communities
Inc
1.90%,
12/01/2028
200
197
2.05%,
01/15/2032
195
193
2.30%,
03/01/2030
160
162
4.20%,
12/15/2023
400
422
Boston
Properties
LP
2.55%,
04/01/2032
155
154
2.75%,
10/01/2026
550
572
2.90%,
03/15/2030
415
423
Brixmor
Operating
Partnership
LP
3.85%,
02/01/2025
300
317
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp
3.85%,
04/15/2023
20
21
Corporate
Office
Properties
LP
2.75%,
04/15/2031
195
194
Crown
Castle
International
Corp
1.05%,
07/15/2026
380
367
1.35%,
07/15/2025
370
365
2.50%,
07/15/2031
190
189
2.90%,
04/01/2041
190
185
3.10%,
11/15/2029
150
157
3.20%,
09/01/2024
400
417
3.25%,
01/15/2051
370
364
3.30%,
07/01/2030
155
164
4.00%,
11/15/2049
110
121
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
125
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
REITs
(continued)
CubeSmart
LP
2.00%,
02/15/2031
$
125
$
120
2.25%,
12/15/2028
200
200
Digital
Realty
Trust
LP
4.45%,
07/15/2028
250
282
Duke
Realty
LP
1.75%,
07/01/2030
160
152
2.25%,
01/15/2032
195
191
2.88%,
11/15/2029
75
78
4.00%,
09/15/2028
400
447
Equinix
Inc
1.00%,
09/15/2025
165
160
1.25%,
07/15/2025
160
157
1.80%,
07/15/2027
160
157
2.50%,
05/15/2031
195
195
2.63%,
11/18/2024
155
160
3.20%,
11/18/2029
260
273
3.40%,
02/15/2052
195
199
ERP
Operating
LP
1.85%,
08/01/2031
385
374
2.50%,
02/15/2030
125
128
Essex
Portfolio
LP
1.70%,
03/01/2028
190
185
3.00%,
01/15/2030
170
178
4.00%,
03/01/2029
300
332
4.50%,
03/15/2048
300
365
Federal
Realty
Investment
Trust
1.25%,
02/15/2026
170
167
4.50%,
12/01/2044
250
296
GLP
Capital
LP
/
GLP
Financing
II
Inc
4.00%,
01/15/2030
170
180
5.38%,
04/15/2026
300
334
Healthcare
Trust
of
America
Holdings
LP
2.00%,
03/15/2031
170
161
Healthpeak
Properties
Inc
2.13%,
12/01/2028
165
165
3.00%,
01/15/2030
150
157
3.40%,
02/01/2025
19
20
6.75%,
02/01/2041
300
448
Kilroy
Realty
LP
2.50%,
11/15/2032
165
160
Kimco
Realty
Corp
2.25%,
12/01/2031
195
190
2.70%,
10/01/2030
165
167
3.70%,
10/01/2049
330
351
Life
Storage
LP
2.20%,
10/15/2030
85
83
2.40%,
10/15/2031
195
192
Mid-America
Apartments
LP
1.70%,
02/15/2031
125
119
4.00%,
11/15/2025
500
540
National
Retail
Properties
Inc
4.80%,
10/15/2048
200
250
Omega
Healthcare
Investors
Inc
4.50%,
01/15/2025
300
321
4.95%,
04/01/2024
750
801
Prologis
LP
1.25%,
10/15/2030
165
153
2.13%,
04/15/2027
145
147
2.25%,
04/15/2030
140
141
3.00%,
04/15/2050
110
113
3.88%,
09/15/2028
250
280
Public
Storage
0.88%,
02/15/2026
145
141
1.85%,
05/01/2028
380
379
2.25%,
11/09/2031
200
201
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
REITs
(continued)
Realty
Income
Corp
0.75%,
03/15/2026
$
430
$
413
2.20%,
06/15/2028
180
182
3.10%,
12/15/2029
375
398
3.25%,
01/15/2031
165
177
Simon
Property
Group
LP
1.75%,
02/01/2028
190
186
2.00%,
09/13/2024
915
931
2.45%,
09/13/2029
140
141
3.25%,
11/30/2026
500
535
3.25%,
09/13/2049
140
143
3.50%,
09/01/2025
165
176
4.25%,
11/30/2046
130
154
6.75%,
02/01/2040
25
37
Spirit
Realty
LP
2.10%,
03/15/2028
190
185
UDR
Inc
2.10%,
08/01/2032
565
537
3.20%,
01/15/2030
165
173
Ventas
Realty
LP
3.00%,
01/15/2030
200
206
3.50%,
04/15/2024
300
314
5.70%,
09/30/2043
300
404
Welltower
Inc
2.75%,
01/15/2032
195
197
3.63%,
03/15/2024
600
631
4.13%,
03/15/2029
300
335
Weyerhaeuser
Co
7.38%,
03/15/2032
300
422
WP
Carey
Inc
2.40%,
02/01/2031
85
84
$
26,716
Retail
-
0.65%
AutoZone
Inc
1.65%,
01/15/2031
165
155
3.75%,
06/01/2027
250
273
Costco
Wholesale
Corp
1.38%,
06/20/2027
155
154
1.60%,
04/20/2030
155
150
1.75%,
04/20/2032
155
151
2.75%,
05/18/2024
50
52
3.00%,
05/18/2027
150
161
Dollar
General
Corp
4.15%,
11/01/2025
500
543
Dollar
Tree
Inc
4.20%,
05/15/2028
185
206
Home
Depot
Inc/The
0.90%,
03/15/2028
190
181
1.88%,
09/15/2031
195
192
2.13%,
09/15/2026
250
258
2.38%,
03/15/2051
190
175
2.70%,
04/01/2023
30
31
2.75%,
09/15/2051
195
194
2.95%,
06/15/2029
435
463
3.50%,
09/15/2056
305
344
3.75%,
02/15/2024
380
401
3.90%,
06/15/2047
30
35
4.20%,
04/01/2043
520
628
4.25%,
04/01/2046
590
734
4.40%,
03/15/2045
1,020
1,273
5.95%,
04/01/2041
351
504
Kohl's
Corp
5.55%,
07/17/2045
250
292
Lowe's
Cos
Inc
1.30%,
04/15/2028
165
158
1.70%,
10/15/2030
165
157
3.00%,
10/15/2050
50
49
3.10%,
05/03/2027
530
566
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
126
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Retail
(continued)
Lowe’s
Cos
Inc
(continued)
3.65%,
04/05/2029
$
465
$
510
3.70%,
04/15/2046
40
44
4.00%,
04/15/2025
160
173
4.05%,
05/03/2047
30
35
4.38%,
09/15/2045
500
598
5.00%,
04/15/2040
160
201
McDonald's
Corp
1.45%,
09/01/2025
160
161
2.13%,
03/01/2030
160
159
2.63%,
09/01/2029
415
428
3.38%,
05/26/2025
500
531
3.50%,
07/01/2027
325
352
3.63%,
09/01/2049
115
127
3.70%,
02/15/2042
128
141
4.70%,
12/09/2035
25
30
4.88%,
07/15/2040
9
11
4.88%,
12/09/2045
250
321
6.30%,
10/15/2037
262
368
O'Reilly
Automotive
Inc
1.75%,
03/15/2031
85
80
3.85%,
06/15/2023
300
310
4.35%,
06/01/2028
300
338
Starbucks
Corp
2.00%,
03/12/2027
160
162
3.55%,
08/15/2029
500
546
3.85%,
10/01/2023
530
553
4.45%,
08/15/2049
300
369
Target
Corp
2.35%,
02/15/2030
320
329
2.50%,
04/15/2026
500
523
TJX
Cos
Inc/The
1.15%,
05/15/2028
130
125
1.60%,
05/15/2031
130
125
2.50%,
05/15/2023
500
509
Walgreens
Boots
Alliance
Inc
3.45%,
06/01/2026
148
158
Walmart
Inc
1.05%,
09/17/2026
185
183
1.50%,
09/22/2028
185
184
1.80%,
09/22/2031
195
193
2.50%,
09/22/2041
195
197
2.65%,
09/22/2051
185
189
2.85%,
07/08/2024
575
601
2.95%,
09/24/2049
245
262
3.95%,
06/28/2038
185
221
$
18,827
Semiconductors
-
0.59%
Analog
Devices
Inc
2.10%,
10/01/2031
135
135
2.80%,
10/01/2041
195
197
Applied
Materials
Inc
1.75%,
06/01/2030
160
157
3.30%,
04/01/2027
35
38
3.90%,
10/01/2025
500
545
4.35%,
04/01/2047
40
51
5.10%,
10/01/2035
250
324
Broadcom
Corp
/
Broadcom
Cayman
Finance
Ltd
3.88%,
01/15/2027
910
987
Broadcom
Inc
1.95%,
02/15/2028
(h)
150
148
2.60%,
02/15/2033
(h)
405
395
3.14%,
11/15/2035
(h)
640
644
3.19%,
11/15/2036
(h)
14
14
3.42%,
04/15/2033
(h)
460
482
3.47%,
04/15/2034
(h)
350
366
3.50%,
02/15/2041
(h)
200
205
3.75%,
02/15/2051
(h)
50
52
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Semiconductors
(continued)
Broadcom
Inc
(continued)
4.15%,
11/15/2030
$
271
$
301
4.30%,
11/15/2032
185
208
4.75%,
04/15/2029
730
831
Intel
Corp
2.00%,
08/12/2031
190
189
2.45%,
11/15/2029
310
321
2.60%,
05/19/2026
530
557
3.05%,
08/12/2051
190
194
3.15%,
05/11/2027
540
579
3.20%,
08/12/2061
190
195
3.25%,
11/15/2049
315
333
3.40%,
03/25/2025
160
170
3.73%,
12/08/2047
240
273
3.75%,
03/25/2027
160
176
4.00%,
12/15/2032
200
235
4.25%,
12/15/2042
200
244
4.60%,
03/25/2040
160
199
4.80%,
10/01/2041
77
99
4.90%,
07/29/2045
25
33
KLA
Corp
4.65%,
11/01/2024
500
542
Lam
Research
Corp
1.90%,
06/15/2030
155
152
2.88%,
06/15/2050
235
234
Marvell
Technology
Inc
2.45%,
04/15/2028
380
385
4.88%,
06/22/2028
300
344
Micron
Technology
Inc
2.70%,
04/15/2032
290
290
4.19%,
02/15/2027
115
126
4.66%,
02/15/2030
115
133
NVIDIA
Corp
0.31%,
06/15/2023
385
382
0.58%,
06/14/2024
385
381
1.55%,
06/15/2028
190
189
2.00%,
06/15/2031
385
383
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA
Inc
2.50%,
05/11/2031
(h)
385
386
3.13%,
02/15/2042
(h)
195
196
3.15%,
05/01/2027
(h)
80
84
3.25%,
05/11/2041
(h)
195
202
QUALCOMM
Inc
1.30%,
05/20/2028
411
395
1.65%,
05/20/2032
340
322
3.25%,
05/20/2027
320
345
4.65%,
05/20/2035
115
143
4.80%,
05/20/2045
425
563
Texas
Instruments
Inc
1.13%,
09/15/2026
195
193
1.38%,
03/12/2025
160
161
1.75%,
05/04/2030
245
240
1.90%,
09/15/2031
195
192
4.15%,
05/15/2048
205
256
$
17,096
Software
-
0.67%
Activision
Blizzard
Inc
1.35%,
09/15/2030
85
78
2.50%,
09/15/2050
790
692
Adobe
Inc
1.90%,
02/01/2025
315
323
2.30%,
02/01/2030
160
164
Electronic
Arts
Inc
1.85%,
02/15/2031
190
182
Fidelity
National
Information
Services
Inc
0.38%,
03/01/2023
275
274
0.60%,
03/01/2024
90
89
1.65%,
03/01/2028
180
174
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
127
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Software
(continued)
Fidelity
National
Information
Services
Inc
(continued)
3.10%,
03/01/2041
$
90
$
91
Fiserv
Inc
3.50%,
07/01/2029
310
333
3.80%,
10/01/2023
400
418
3.85%,
06/01/2025
300
320
Intuit
Inc
1.35%,
07/15/2027
165
161
Microsoft
Corp
2.40%,
08/08/2026
55
58
2.53%,
06/01/2050
792
772
2.68%,
06/01/2060
1,209
1,205
2.92%,
03/17/2052
1,885
2,001
3.13%,
11/03/2025
700
747
3.30%,
02/06/2027
200
218
3.45%,
08/08/2036
358
412
3.63%,
12/15/2023
30
32
Oracle
Corp
2.30%,
03/25/2028
385
384
2.40%,
09/15/2023
30
31
2.50%,
04/01/2025
150
154
2.63%,
02/15/2023
390
397
2.65%,
07/15/2026
700
719
2.80%,
04/01/2027
850
876
2.88%,
03/25/2031
385
387
2.95%,
04/01/2030
150
152
3.60%,
04/01/2040
150
150
3.60%,
04/01/2050
150
147
3.65%,
03/25/2041
385
389
3.80%,
11/15/2037
250
261
3.90%,
05/15/2035
600
643
3.95%,
03/25/2051
385
400
4.00%,
07/15/2046
780
810
4.10%,
03/25/2061
190
198
4.30%,
07/08/2034
1,015
1,124
4.38%,
05/15/2055
610
668
Roper
Technologies
Inc
1.00%,
09/15/2025
85
83
1.40%,
09/15/2027
165
160
2.35%,
09/15/2024
110
113
2.95%,
09/15/2029
95
98
salesforce.com
Inc
1.95%,
07/15/2031
190
188
2.70%,
07/15/2041
385
384
2.90%,
07/15/2051
385
392
ServiceNow
Inc
1.40%,
09/01/2030
165
154
VMware
Inc
1.40%,
08/15/2026
570
560
1.80%,
08/15/2028
285
277
2.20%,
08/15/2031
385
378
$
19,421
Sovereign
-
1.52%
Canada
Government
International
Bond
0.75%,
05/19/2026
390
381
1.63%,
01/22/2025
865
879
Chile
Government
International
Bond
2.45%,
01/31/2031
535
532
2.55%,
01/27/2032
475
474
3.10%,
05/07/2041
500
489
3.13%,
03/27/2025
250
262
3.50%,
04/15/2053
200
206
3.86%,
06/21/2047
300
333
Export
Development
Canada
1.38%,
02/24/2023
250
252
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Sovereign
(continued)
Export-Import
Bank
of
Korea
0.38%,
02/09/2024
$
200
$
198
1.38%,
02/09/2031
200
191
3.25%,
11/10/2025
500
534
3.25%,
08/12/2026
500
538
Hungary
Government
International
Bond
5.38%,
03/25/2024
500
543
7.63%,
03/29/2041
250
408
Indonesia
Government
International
Bond
2.15%,
07/28/2031
400
397
2.85%,
02/14/2030
800
833
3.05%,
03/12/2051
(a)
400
394
3.50%,
01/11/2028
200
216
3.70%,
10/30/2049
200
211
4.20%,
10/15/2050
500
569
4.75%,
02/11/2029
200
233
Israel
Government
AID
Bond
5.50%,
09/18/2023
25
27
5.50%,
04/26/2024
125
138
5.50%,
09/18/2033
12
17
Israel
Government
International
Bond
3.88%,
07/03/2050
200
233
4.50%,
01/30/2043
400
511
Japan
Bank
for
International
Cooperation
0.38%,
09/15/2023
510
506
0.50%,
04/15/2024
200
198
0.63%,
05/22/2023
200
200
1.25%,
01/21/2031
400
383
1.88%,
04/15/2031
200
202
2.00%,
10/17/2029
200
204
2.38%,
04/20/2026
300
312
3.00%,
05/29/2024
(a)
1,000
1,047
3.38%,
07/31/2023
1,000
1,041
Korea
International
Bond
1.00%,
09/16/2030
200
189
3.88%,
09/11/2023
250
263
3.88%,
09/20/2048
500
645
Mexico
Government
International
Bond
2.66%,
05/24/2031
400
390
3.25%,
04/16/2030
200
205
3.60%,
01/30/2025
210
223
3.75%,
01/11/2028
750
805
3.75%,
04/19/2071
400
360
3.77%,
05/24/2061
200
184
3.90%,
04/27/2025
600
643
4.50%,
04/22/2029
1,000
1,113
4.50%,
01/31/2050
800
848
4.60%,
02/10/2048
700
745
4.75%,
03/08/2044
506
551
5.55%,
01/21/2045
300
359
6.05%,
01/11/2040
464
577
Panama
Government
International
Bond
2.25%,
09/29/2032
200
190
3.75%,
03/16/2025
800
847
3.87%,
07/23/2060
340
340
3.88%,
03/17/2028
500
539
4.30%,
04/29/2053
400
429
4.50%,
05/15/2047
200
220
4.50%,
04/16/2050
400
441
6.70%,
01/26/2036
224
300
Peruvian
Government
International
Bond
1.86%,
12/01/2032
1,180
1,077
2.78%,
01/23/2031
145
144
2.78%,
12/01/2060
180
158
3.30%,
03/11/2041
340
340
3.55%,
03/10/2051
200
208
5.63%,
11/18/2050
528
742
6.55%,
03/14/2037
126
172
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
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
$
214
8.75%,
11/21/2033
192
299
Philippine
Government
International
Bond
2.46%,
05/05/2030
500
516
2.65%,
12/10/2045
400
378
2.95%,
05/05/2045
200
197
3.00%,
02/01/2028
300
322
3.20%,
07/06/2046
200
203
3.70%,
03/01/2041
200
218
3.70%,
02/02/2042
230
251
5.00%,
01/13/2037
(a)
300
372
6.38%,
10/23/2034
210
292
9.50%,
02/02/2030
400
621
10.63%,
03/16/2025
400
521
Republic
of
Italy
Government
International
Bond
0.88%,
05/06/2024
200
198
1.25%,
02/17/2026
400
389
2.38%,
10/17/2024
200
205
2.88%,
10/17/2029
500
511
3.88%,
05/06/2051
600
641
5.38%,
06/15/2033
420
517
6.88%,
09/27/2023
512
562
Republic
of
Poland
Government
International
Bond
4.00%,
01/22/2024
575
608
State
of
Israel
2.50%,
01/15/2030
200
208
3.38%,
01/15/2050
800
864
Svensk
Exportkredit
AB
0.38%,
03/11/2024
200
198
0.50%,
08/26/2025
1,235
1,204
2.88%,
03/14/2023
200
205
Tennessee
Valley
Authority
2.88%,
02/01/2027
250
267
3.50%,
12/15/2042
400
474
4.25%,
09/15/2065
200
292
4.63%,
09/15/2060
300
459
5.25%,
09/15/2039
251
362
5.38%,
04/01/2056
154
257
5.88%,
04/01/2036
600
875
6.75%,
11/01/2025
102
123
Uruguay
Government
International
Bond
4.13%,
11/20/2045
100
118
4.38%,
10/27/2027
390
438
4.98%,
04/20/2055
210
275
5.10%,
06/18/2050
725
957
$
43,950
Supranational
Bank
-
1.41%
African
Development
Bank
0.88%,
03/23/2026
345
339
0.88%,
07/22/2026
385
378
Asian
Development
Bank
0.25%,
07/14/2023
330
328
0.25%,
10/06/2023
490
486
0.38%,
06/11/2024
385
380
0.38%,
09/03/2025
325
316
0.50%,
02/04/2026
400
389
1.00%,
04/14/2026
380
376
1.25%,
06/09/2028
100
99
1.50%,
03/04/2031
385
383
1.75%,
09/19/2029
650
659
2.13%,
03/19/2025
300
310
2.63%,
01/30/2024
1,800
1,868
2.75%,
03/17/2023
400
410
2.75%,
01/19/2028
500
537
5.82%,
06/16/2028
15
19
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Supranational
Bank
(continued)
Asian
Development
Bank
(continued)
6.38%,
10/01/2028
$
51
$
66
Asian
Infrastructure
Investment
Bank/The
0.25%,
09/29/2023
340
337
2.25%,
05/16/2024
900
928
Council
Of
Europe
Development
Bank
0.38%,
06/10/2024
385
380
1.38%,
02/27/2025
320
323
European
Bank
for
Reconstruction
&
Development
0.25%,
07/10/2023
330
328
0.50%,
11/25/2025
385
374
0.50%,
01/28/2026
380
369
1.63%,
09/27/2024
(a)
650
661
European
Investment
Bank
0.38%,
07/24/2024
475
469
0.38%,
12/15/2025
340
329
0.38%,
03/26/2026
480
463
0.63%,
10/21/2027
585
557
0.75%,
10/26/2026
190
185
1.25%,
02/14/2031
355
345
1.63%,
03/14/2025
315
320
1.63%,
05/13/2031
395
397
1.88%,
02/10/2025
600
615
2.25%,
06/24/2024
500
517
2.38%,
05/24/2027
300
315
2.50%,
03/15/2023
600
614
2.63%,
03/15/2024
1,000
1,039
3.25%,
01/29/2024
1,650
1,732
FMS
Wertmanagement
2.75%,
01/30/2024
500
519
Inter-American
Development
Bank
0.25%,
11/15/2023
325
322
0.50%,
09/23/2024
610
602
0.63%,
09/16/2027
340
324
0.88%,
04/20/2026
850
836
1.13%,
07/20/2028
385
376
1.13%,
01/13/2031
985
946
1.75%,
03/14/2025
585
597
2.38%,
07/07/2027
500
525
2.50%,
01/18/2023
1,900
1,939
3.00%,
10/04/2023
700
728
3.00%,
02/21/2024
250
262
3.13%,
09/18/2028
500
552
4.38%,
01/24/2044
50
69
International
Bank
for
Reconstruction
&
Development
0.13%,
04/20/2023
190
189
0.25%,
11/24/2023
180
178
0.50%,
10/28/2025
1,630
1,588
0.75%,
11/24/2027
365
350
0.75%,
08/26/2030
735
687
0.88%,
07/15/2026
(a)
580
570
1.25%,
02/10/2031
385
374
1.38%,
04/20/2028
380
379
1.63%,
01/15/2025
475
483
1.63%,
11/03/2031
385
385
1.75%,
10/23/2029
680
690
2.50%,
03/19/2024
800
829
2.50%,
11/25/2024
500
521
2.50%,
07/29/2025
1,700
1,780
2.50%,
11/22/2027
500
528
7.63%,
01/19/2023
1,512
1,624
International
Finance
Corp
0.38%,
07/16/2025
1,080
1,051
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
129
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Supranational
Bank
(continued)
Nordic
Investment
Bank
0.38%,
09/11/2025
$
255
$
247
0.50%,
01/21/2026
400
388
2.25%,
05/21/2024
500
516
$
40,894
Telecommunications
-
1.34%
America
Movil
SAB
de
CV
4.38%,
04/22/2049
250
302
6.13%,
03/30/2040
102
143
6.38%,
03/01/2035
200
277
AT&T
Inc
0.90%,
03/25/2024
385
383
1.65%,
02/01/2028
330
323
1.70%,
03/25/2026
135
134
2.25%,
02/01/2032
240
232
2.30%,
06/01/2027
465
473
2.75%,
06/01/2031
310
316
2.95%,
07/15/2026
20
21
3.10%,
02/01/2043
240
233
3.30%,
02/01/2052
480
470
3.50%,
06/01/2041
310
319
3.50%,
09/15/2053
904
912
3.50%,
02/01/2061
480
472
3.55%,
09/15/2055
1,898
1,905
3.65%,
06/01/2051
755
782
3.65%,
09/15/2059
1,057
1,067
3.80%,
02/15/2027
40
43
4.05%,
12/15/2023
500
529
4.10%,
02/15/2028
81
90
4.13%,
02/17/2026
30
33
4.25%,
03/01/2027
530
588
4.30%,
12/15/2042
221
249
4.35%,
03/01/2029
500
562
4.35%,
06/15/2045
260
293
4.50%,
03/09/2048
490
571
4.65%,
06/01/2044
500
586
Bell
Telephone
Co
of
Canada
or
Bell
Canada/The
3.65%,
03/17/2051
190
209
British
Telecommunications
PLC
9.62%,
12/15/2030
577
845
Cisco
Systems
Inc/Delaware
2.20%,
09/20/2023
30
31
2.50%,
09/20/2026
580
608
5.50%,
01/15/2040
600
835
Corning
Inc
4.38%,
11/15/2057
300
357
4.75%,
03/15/2042
102
128
Deutsche
Telekom
International
Finance
BV
8.75%,
06/15/2030
641
932
Juniper
Networks
Inc
2.00%,
12/10/2030
185
175
Motorola
Solutions
Inc
4.00%,
09/01/2024
454
484
Orange
SA
5.38%,
01/13/2042
102
134
Rogers
Communications
Inc
3.00%,
03/15/2023
400
408
3.70%,
11/15/2049
225
236
5.00%,
03/15/2044
500
617
Telefonica
Emisiones
SA
5.21%,
03/08/2047
530
658
7.05%,
06/20/2036
795
1,134
TELUS
Corp
4.60%,
11/16/2048
300
382
T-Mobile
USA
Inc
1.50%,
02/15/2026
320
316
2.05%,
02/15/2028
320
318
2.25%,
11/15/2031
350
340
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
T-Mobile
USA
Inc
(continued)
2.40%,
03/15/2029
(h)
$
310
$
313
2.55%,
02/15/2031
490
488
3.00%,
02/15/2041
170
166
3.30%,
02/15/2051
310
303
3.40%,
10/15/2052
(h)
520
518
3.50%,
04/15/2025
150
159
3.75%,
04/15/2027
295
319
3.88%,
04/15/2030
295
323
4.38%,
04/15/2040
150
171
4.50%,
04/15/2050
295
345
Verizon
Communications
Inc
0.75%,
03/22/2024
485
483
1.45%,
03/20/2026
385
383
1.50%,
09/18/2030
1,000
938
1.68%,
10/30/2030
1,473
1,400
1.75%,
01/20/2031
360
341
2.10%,
03/22/2028
580
581
2.36%,
03/15/2032
(h)
180
177
2.55%,
03/21/2031
385
388
2.63%,
08/15/2026
25
26
2.65%,
11/20/2040
135
128
2.88%,
11/20/2050
360
342
2.99%,
10/30/2056
562
532
3.00%,
11/20/2060
180
170
3.38%,
02/15/2025
40
43
3.40%,
03/22/2041
385
403
3.55%,
03/22/2051
385
415
3.70%,
03/22/2061
190
206
3.85%,
11/01/2042
275
307
3.88%,
02/08/2029
400
443
4.13%,
03/16/2027
500
556
4.33%,
09/21/2028
500
568
4.40%,
11/01/2034
750
874
4.50%,
08/10/2033
360
423
4.81%,
03/15/2039
1,225
1,536
Vodafone
Group
PLC
4.25%,
09/17/2050
165
190
4.38%,
05/30/2028
560
630
5.00%,
05/30/2038
250
311
5.25%,
05/30/2048
400
521
6.15%,
02/27/2037
201
272
6.25%,
11/30/2032
500
662
$
38,809
Toys,
Games
&
Hobbies
-
0.00%
Hasbro
Inc
6.35%,
03/15/2040
25
34
Transportation
-
0.60%
Burlington
Northern
Santa
Fe
LLC
3.05%,
02/15/2051
1,000
1,035
3.30%,
09/15/2051
200
217
3.40%,
09/01/2024
230
242
3.55%,
02/15/2050
115
129
4.38%,
09/01/2042
545
662
4.45%,
03/15/2043
20
25
4.55%,
09/01/2044
15
19
5.15%,
09/01/2043
350
469
Canadian
National
Railway
Co
2.45%,
05/01/2050
65
60
3.20%,
08/02/2046
400
418
3.65%,
02/03/2048
75
85
Canadian
Pacific
Railway
Co
1.75%,
12/02/2026
390
391
2.45%,
12/02/2031
190
194
3.00%,
12/02/2041
190
194
3.10%,
12/02/2051
190
195
4.00%,
06/01/2028
300
334
4.80%,
09/15/2035
500
618
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
130
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Transportation
(continued)
CSX
Corp
2.40%,
02/15/2030
$
65
$
66
2.60%,
11/01/2026
300
313
3.25%,
06/01/2027
40
43
3.35%,
11/01/2025
500
533
3.35%,
09/15/2049
70
74
3.80%,
03/01/2028
100
110
3.80%,
11/01/2046
30
34
4.25%,
11/01/2066
400
489
4.30%,
03/01/2048
105
128
4.75%,
05/30/2042
277
347
FedEx
Corp
3.10%,
08/05/2029
550
581
3.88%,
08/01/2042
100
110
4.40%,
01/15/2047
405
477
4.55%,
04/01/2046
400
479
4.75%,
11/15/2045
525
640
Kansas
City
Southern/Old
4.70%,
05/01/2048
300
373
Norfolk
Southern
Corp
2.30%,
05/15/2031
195
196
2.55%,
11/01/2029
155
159
2.90%,
08/25/2051
190
187
3.85%,
01/15/2024
200
209
3.94%,
11/01/2047
398
461
4.15%,
02/28/2048
450
536
4.84%,
10/01/2041
100
126
Ryder
System
Inc
2.50%,
09/01/2024
80
82
2.90%,
12/01/2026
150
156
Union
Pacific
Corp
2.15%,
02/05/2027
230
236
2.38%,
05/20/2031
195
199
2.89%,
04/06/2036
210
220
3.15%,
03/01/2024
400
417
3.20%,
05/20/2041
195
208
3.55%,
08/15/2039
80
89
3.80%,
10/01/2051
577
671
3.80%,
04/06/2071
350
405
3.84%,
03/20/2060
575
677
United
Parcel
Service
Inc
2.50%,
09/01/2029
125
129
3.40%,
09/01/2049
770
868
3.90%,
04/01/2025
665
718
4.88%,
11/15/2040
25
33
5.20%,
04/01/2040
125
168
6.20%,
01/15/2038
23
33
$
17,267
Trucking
&
Leasing
-
0.01%
GATX
Corp
1.90%,
06/01/2031
380
361
Water
-
0.05%
American
Water
Capital
Corp
2.30%,
06/01/2031
195
195
3.25%,
06/01/2051
(a)
195
203
3.75%,
09/01/2047
180
201
4.15%,
06/01/2049
650
767
6.59%,
10/15/2037
5
7
Essential
Utilities
Inc
2.40%,
05/01/2031
190
189
$
1,562
TOTAL
BONDS
$
917,285
MUNICIPAL
BONDS
-
0.59%
Principal
Amount
(000's)
Value
(000's)
California
-
0.19%
Bay
Area
Toll
Authority
6.26%,
04/01/2049
$
300
$
480
6.92%,
04/01/2040
120
179
MUNICIPAL
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
California
(continued)
California
State
University
2.98%,
11/01/2051
$
160
$
163
East
Bay
Municipal
Utility
District
Water
System
Revenue
5.87%,
06/01/2040
60
86
Los
Angeles
Department
of
Water
&
Power
Power
System
Revenue
6.57%,
07/01/2045
150
243
Los
Angeles
Unified
School
District/CA
5.75%,
07/01/2034
80
104
5.76%,
07/01/2029
50
60
6.76%,
07/01/2034
530
738
Regents
of
the
University
of
California
Medical
Center
Pooled
Revenue
6.55%,
05/15/2048
250
387
San
Diego
County
Water
Authority
6.14%,
05/01/2049
260
391
Santa
Clara
Valley
Transportation
Authority
5.88%,
04/01/2032
25
30
State
of
California
3.50%,
04/01/2028
165
183
7.30%,
10/01/2039
375
588
7.35%,
11/01/2039
500
789
7.60%,
11/01/2040
180
310
7.63%,
03/01/2040
280
464
University
of
California
5.77%,
05/15/2043
200
279
$
5,474
District
of
Columbia
-
0.02%
District
of
Columbia
Water
&
Sewer
Authority
4.81%,
10/01/2114
450
676
Georgia
-
0.02%
Municipal
Electric
Authority
of
Georgia
6.64%,
04/01/2057
147
224
7.06%,
04/01/2057
195
289
$
513
Illinois
-
0.06%
Chicago
Transit
Authority
Sales
&
Transfer
Tax
Receipts
Revenue
6.90%,
12/01/2040
200
282
Chicago
Transit
Authority
Sales
Tax
Receipts
Fund
6.20%,
12/01/2040
70
96
County
of
Cook
IL
6.23%,
11/15/2034
102
138
State
of
Illinois
4.95%,
06/01/2023
15
16
5.10%,
06/01/2033
1,000
1,156
7.35%,
07/01/2035
70
88
$
1,776
Kansas
-
0.01%
State
of
Kansas
Department
of
Transportation
4.60%,
09/01/2035
115
140
Nevada
-
0.00%
County
of
Clark
Department
of
Aviation
6.82%,
07/01/2045
25
39
New
Jersey
-
0.07%
New
Jersey
Economic
Development
Authority
(credit
support
from
Assured
Guaranty
Municipal
Corp
)
0.00%,
02/15/2023
(e),(i)
51
50
New
Jersey
Economic
Development
Authority
(credit
support
from
National
Public
Finance
Guarantee
Corp
)
7.43%,
02/15/2029
(i)
700
880
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
131
MUNICIPAL
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
New
Jersey
(continued)
New
Jersey
Transportation
Trust
Fund
Authority
5.75%,
12/15/2028
$
190
$
222
6.56%,
12/15/2040
210
309
New
Jersey
Turnpike
Authority
7.10%,
01/01/2041
147
231
Rutgers
The
State
University
of
New
Jersey
5.67%,
05/01/2040
130
175
$
1,867
New
York
-
0.09%
City
of
New
York
NY
5.52%,
10/01/2037
25
33
Metropolitan
Transportation
Authority
6.81%,
11/15/2040
135
192
New
York
City
Transitional
Finance
Authority
Future
Tax
Secured
Revenue
5.51%,
08/01/2037
250
328
New
York
City
Water
&
Sewer
System
5.72%,
06/15/2042
270
398
5.95%,
06/15/2042
125
188
New
York
State
Dormitory
Authority
5.60%,
03/15/2040
435
585
Port
Authority
of
New
York
&
New
Jersey
4.46%,
10/01/2062
400
530
4.96%,
08/01/2046
300
408
6.04%,
12/01/2029
50
65
$
2,727
Ohio
-
0.01%
American
Municipal
Power
Inc
6.27%,
02/15/2050
69
99
Ohio
State
University/The
4.91%,
06/01/2040
125
170
$
269
Pennsylvania
-
0.02%
State
Public
School
Building
Authority
5.00%,
09/15/2027
500
575
Texas
-
0.08%
City
of
San
Antonio
TX
Electric
&
Gas
Systems
Revenue
5.81%,
02/01/2041
135
193
Dallas
Area
Rapid
Transit
5.02%,
12/01/2048
50
70
Dallas
Convention
Center
Hotel
Development
Corp
7.09%,
01/01/2042
70
99
Dallas
County
Hospital
District
5.62%,
08/15/2044
83
117
Dallas
Independent
School
District
(credit
support
from
Permanent
School
Fund
Guarantee
Program
)
6.45%,
02/15/2035
(i)
50
54
Grand
Parkway
Transportation
Corp
5.18%,
10/01/2042
300
401
State
of
Texas
4.68%,
04/01/2040
100
129
5.52%,
04/01/2039
405
570
Texas
Transportation
Commission
State
Highway
Fund
5.18%,
04/01/2030
625
750
$
2,383
Utah
-
0.01%
State
of
Utah
3.54%,
07/01/2025
300
314
Wisconsin
-
0.01%
State
of
Wisconsin
(credit
support
from
Assured
Guaranty
Municipal
Corp
)
5.70%,
05/01/2026
(i)
310
349
TOTAL
MUNICIPAL
BONDS
$
17,102
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
65.81%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
1.67%
2.00%,
08/01/2029
$
210
$
216
2.00%,
10/01/2031
54
55
2.00%,
03/01/2032
109
112
2.50%,
10/01/2027
58
60
2.50%,
03/01/2028
159
166
2.50%,
06/01/2028
104
108
2.50%,
06/01/2028
225
234
2.50%,
07/01/2028
159
165
2.50%,
10/01/2028
115
119
2.50%,
10/01/2028
76
79
2.50%,
10/01/2029
196
204
2.50%,
12/01/2029
231
240
2.50%,
09/01/2030
401
416
2.50%,
01/01/2031
431
446
2.50%,
01/01/2031
58
60
2.50%,
02/01/2031
47
49
2.50%,
03/01/2031
132
137
2.50%,
12/01/2031
141
146
2.50%,
12/01/2031
155
161
2.50%,
02/01/2032
183
190
2.50%,
03/01/2032
242
251
2.50%,
11/01/2032
471
489
2.50%,
02/01/2033
128
133
2.50%,
03/01/2033
95
98
2.50%,
03/01/2033
332
345
2.50%,
04/01/2033
145
150
2.50%,
05/01/2033
61
63
2.50%,
06/01/2033
100
104
2.50%,
11/01/2036
82
85
2.50%,
02/01/2043
101
105
2.50%,
03/01/2043
80
82
3.00%,
01/01/2027
61
64
3.00%,
03/01/2027
48
50
3.00%,
05/01/2027
50
52
3.00%,
10/01/2028
164
172
3.00%,
07/01/2029
207
218
3.00%,
08/01/2029
90
94
3.00%,
10/01/2029
53
55
3.00%,
11/01/2029
91
95
3.00%,
07/01/2030
204
215
3.00%,
09/01/2030
269
283
3.00%,
11/01/2030
49
51
3.00%,
11/01/2030
94
99
3.00%,
01/01/2031
95
100
3.00%,
04/01/2031
197
207
3.00%,
02/01/2032
41
42
3.00%,
05/01/2032
69
73
3.00%,
12/01/2032
307
322
3.00%,
12/01/2032
286
301
3.00%,
01/01/2033
423
445
3.00%,
02/01/2033
247
259
3.00%,
03/01/2033
208
220
3.00%,
04/01/2033
127
134
3.00%,
04/01/2033
107
113
3.00%,
06/01/2033
79
84
3.00%,
09/01/2033
110
117
3.00%,
09/01/2033
117
123
3.00%,
12/01/2034
29
31
3.00%,
01/01/2035
20
21
3.00%,
02/01/2035
29
31
3.00%,
05/01/2035
237
250
3.00%,
02/01/2036
55
58
3.00%,
09/01/2036
58
61
3.00%,
02/01/2037
64
67
3.00%,
05/01/2037
80
84
3.00%,
06/01/2037
84
89
3.00%,
07/01/2037
124
130
3.00%,
09/01/2037
27
28
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
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%,
01/01/2043
$
164
$
173
3.00%,
01/01/2043
167
176
3.00%,
02/01/2043
728
769
3.00%,
03/01/2043
425
449
3.00%,
04/01/2043
148
156
3.00%,
05/01/2043
147
155
3.00%,
06/01/2043
272
287
3.00%,
07/01/2043
469
495
3.00%,
07/01/2043
264
278
3.00%,
07/01/2043
263
278
3.00%,
07/01/2043
449
474
3.00%,
08/01/2043
58
61
3.00%,
08/01/2043
81
85
3.00%,
08/01/2043
795
839
3.00%,
08/01/2043
188
197
3.00%,
09/01/2043
290
306
3.00%,
09/01/2043
146
154
3.00%,
09/01/2043
302
319
3.00%,
10/01/2043
123
130
3.00%,
10/01/2043
288
304
3.00%,
03/01/2045
250
263
3.00%,
04/01/2045
91
96
3.00%,
06/01/2045
332
348
3.00%,
07/01/2045
257
270
3.00%,
07/01/2045
195
205
3.00%,
08/01/2045
377
396
3.00%,
08/01/2045
118
124
3.00%,
08/01/2045
122
129
3.00%,
12/01/2045
524
551
3.00%,
03/01/2046
228
240
3.00%,
03/01/2046
57
59
3.00%,
04/01/2046
314
330
3.00%,
04/01/2046
39
41
3.00%,
05/01/2046
84
88
3.00%,
09/01/2046
377
396
3.00%,
10/01/2046
408
429
3.00%,
11/01/2046
640
671
3.00%,
11/01/2046
63
66
3.00%,
11/01/2046
362
380
3.00%,
11/01/2046
424
446
3.00%,
12/01/2046
470
494
3.00%,
12/01/2046
525
550
3.00%,
01/01/2047
721
755
3.00%,
03/01/2047
715
749
3.00%,
03/01/2048
267
278
3.50%,
10/01/2025
50
53
3.50%,
11/01/2025
66
70
3.50%,
12/01/2026
65
68
3.50%,
01/01/2029
83
87
3.50%,
01/01/2032
57
61
3.50%,
02/01/2032
35
37
3.50%,
03/01/2032
42
45
3.50%,
04/01/2032
43
46
3.50%,
08/01/2032
34
36
3.50%,
09/01/2033
125
132
3.50%,
01/01/2034
37
39
3.50%,
01/01/2035
74
79
3.50%,
02/01/2035
65
70
3.50%,
07/01/2035
100
107
3.50%,
09/01/2035
157
168
3.50%,
04/01/2037
42
45
3.50%,
06/01/2037
86
91
3.50%,
05/01/2041
116
122
3.50%,
02/01/2042
154
165
3.50%,
04/01/2042
53
56
3.50%,
06/01/2042
111
120
3.50%,
07/01/2042
180
194
3.50%,
07/01/2042
138
148
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
3.50%,
08/01/2042
$
79
$
84
3.50%,
08/01/2042
180
194
3.50%,
02/01/2044
347
373
3.50%,
06/01/2044
242
259
3.50%,
09/01/2044
131
140
3.50%,
02/01/2045
150
160
3.50%,
03/01/2045
213
228
3.50%,
06/01/2045
247
264
3.50%,
07/01/2045
405
433
3.50%,
09/01/2045
212
226
3.50%,
10/01/2045
240
257
3.50%,
11/01/2045
396
423
3.50%,
12/01/2045
322
344
3.50%,
12/01/2045
36
39
3.50%,
12/01/2045
288
308
3.50%,
01/01/2046
27
29
3.50%,
01/01/2046
112
120
3.50%,
03/01/2046
1,029
1,098
3.50%,
03/01/2046
200
215
3.50%,
04/01/2046
251
268
3.50%,
05/01/2046
268
288
3.50%,
06/01/2046
315
334
3.50%,
08/01/2046
223
239
3.50%,
04/01/2047
323
344
3.50%,
11/01/2047
356
377
3.50%,
11/01/2047
229
242
3.50%,
05/01/2048
42
45
3.50%,
06/01/2048
394
420
3.50%,
06/01/2048
153
162
3.50%,
09/01/2048
114
120
4.00%,
06/01/2025
33
35
4.00%,
07/01/2025
56
59
4.00%,
12/01/2030
19
20
4.00%,
08/01/2031
17
19
4.00%,
10/01/2031
28
30
4.00%,
11/01/2031
8
9
4.00%,
12/01/2031
14
15
4.00%,
11/01/2033
38
41
4.00%,
01/01/2034
66
72
4.00%,
07/01/2035
25
27
4.00%,
03/01/2037
106
116
4.00%,
05/01/2038
39
42
4.00%,
02/01/2041
92
101
4.00%,
06/01/2042
65
71
4.00%,
06/01/2042
54
60
4.00%,
08/01/2043
466
512
4.00%,
01/01/2044
63
69
4.00%,
02/01/2044
182
200
4.00%,
03/01/2044
66
73
4.00%,
04/01/2044
180
197
4.00%,
05/01/2044
47
51
4.00%,
07/01/2044
102
111
4.00%,
07/01/2044
98
106
4.00%,
10/01/2044
126
138
4.00%,
11/01/2044
262
287
4.00%,
12/01/2044
275
301
4.00%,
01/01/2045
77
85
4.00%,
02/01/2045
86
94
4.00%,
04/01/2045
95
104
4.00%,
05/01/2045
55
60
4.00%,
06/01/2045
110
121
4.00%,
07/01/2045
121
130
4.00%,
08/01/2045
41
44
4.00%,
08/01/2045
391
426
4.00%,
08/01/2045
35
38
4.00%,
09/01/2045
87
93
4.00%,
09/01/2045
427
463
4.00%,
10/01/2045
431
468
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
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)
4.00%,
11/01/2045
$
271
$
294
4.00%,
12/01/2045
122
133
4.00%,
03/01/2047
330
356
4.00%,
08/01/2047
381
408
4.00%,
10/01/2047
252
268
4.00%,
12/01/2047
406
434
4.00%,
07/01/2048
236
252
4.00%,
08/01/2048
141
150
4.00%,
09/01/2048
306
327
4.50%,
08/01/2023
16
17
4.50%,
05/01/2024
19
20
4.50%,
02/01/2030
6
6
4.50%,
08/01/2030
4
5
4.50%,
05/01/2031
6
7
4.50%,
06/01/2031
42
46
4.50%,
06/01/2039
66
73
4.50%,
10/01/2039
47
52
4.50%,
10/01/2040
65
71
4.50%,
03/01/2041
171
185
4.50%,
03/01/2041
147
161
4.50%,
09/01/2041
102
109
4.50%,
11/01/2041
144
160
4.50%,
09/01/2043
75
82
4.50%,
11/01/2043
38
41
4.50%,
11/01/2043
78
85
4.50%,
01/01/2044
73
80
4.50%,
01/01/2044
61
67
4.50%,
03/01/2044
83
91
4.50%,
05/01/2044
102
112
4.50%,
07/01/2044
48
53
4.50%,
09/01/2044
47
52
4.50%,
10/01/2045
92
100
4.50%,
02/01/2046
337
366
4.50%,
03/01/2047
55
59
4.50%,
03/01/2047
215
232
4.50%,
04/01/2047
46
50
4.50%,
06/01/2047
103
112
4.50%,
09/01/2047
114
123
4.50%,
11/01/2047
29
32
4.50%,
05/01/2048
94
101
4.50%,
07/01/2048
179
192
4.50%,
11/01/2048
102
109
4.50%,
01/01/2049
365
392
4.50%,
05/01/2049
858
920
5.00%,
09/01/2023
13
14
5.00%,
04/01/2024
8
8
5.00%,
01/01/2025
31
33
5.00%,
12/01/2027
17
19
5.00%,
02/01/2030
3
3
5.00%,
03/01/2030
2
2
5.00%,
04/01/2034
65
72
5.00%,
06/01/2035
70
79
5.00%,
01/01/2038
124
141
5.00%,
11/01/2038
94
107
5.00%,
12/01/2038
106
120
5.00%,
09/01/2039
165
187
5.00%,
01/01/2040
95
106
5.00%,
05/01/2040
45
50
5.00%,
04/01/2041
59
67
5.00%,
06/01/2041
62
67
5.00%,
11/01/2041
67
73
5.00%,
11/01/2041
58
66
5.50%,
01/01/2028
36
39
5.50%,
04/01/2036
49
54
5.50%,
12/01/2036
65
74
5.50%,
12/01/2036
61
70
5.50%,
03/01/2039
98
112
5.50%,
04/01/2039
61
70
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
5.50%,
02/01/2040
$
92
$
105
5.50%,
06/01/2041
136
156
6.00%,
02/01/2027
4
5
$
48,389
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
19.55%
1.50%,
03/01/2036
5,248
5,267
1.50%,
11/01/2036
4,074
4,090
1.50%,
01/01/2037
(j)
12,500
12,533
2.00%,
09/01/2028
74
76
2.00%,
05/01/2030
130
133
2.00%,
04/01/2032
79
82
2.00%,
05/01/2036
4,214
4,329
2.00%,
06/01/2036
3,728
3,824
2.00%,
01/01/2037
(j)
27,300
27,953
2.00%,
04/01/2051
9,273
9,267
2.00%,
04/01/2051
15,402
15,413
2.00%,
04/01/2051
9,416
9,454
2.00%,
04/01/2051
33,159
33,175
2.00%,
04/01/2051
5,716
5,713
2.00%,
05/01/2051
19,175
19,164
2.00%,
06/01/2051
7,643
7,626
2.00%,
07/01/2051
8,493
8,475
2.00%,
09/01/2051
10,755
10,732
2.00%,
10/01/2051
7,442
7,426
2.00%,
11/01/2051
7,970
7,982
2.00%,
12/01/2051
9,929
9,929
2.00%,
01/01/2052
(j)
44,500
44,363
2.50%,
01/01/2028
77
80
2.50%,
07/01/2028
92
96
2.50%,
08/01/2028
51
53
2.50%,
08/01/2028
98
101
2.50%,
09/01/2028
110
114
2.50%,
07/01/2029
34
36
2.50%,
07/01/2029
58
60
2.50%,
07/01/2029
190
197
2.50%,
09/01/2029
116
121
2.50%,
12/01/2029
70
73
2.50%,
01/01/2030
97
100
2.50%,
04/01/2030
115
120
2.50%,
05/01/2030
258
268
2.50%,
06/01/2030
138
144
2.50%,
08/01/2030
325
338
2.50%,
08/01/2030
64
67
2.50%,
01/01/2031
139
144
2.50%,
01/01/2031
116
121
2.50%,
02/01/2031
122
127
2.50%,
02/01/2031
184
191
2.50%,
05/01/2031
71
73
2.50%,
06/01/2031
125
130
2.50%,
11/01/2031
1,288
1,338
2.50%,
12/01/2031
209
218
2.50%,
01/01/2032
248
257
2.50%,
01/01/2032
456
474
2.50%,
02/01/2032
387
402
2.50%,
03/01/2032
131
136
2.50%,
03/01/2032
69
72
2.50%,
11/01/2032
23
23
2.50%,
12/01/2032
68
71
2.50%,
01/01/2033
81
84
2.50%,
02/01/2033
313
325
2.50%,
04/01/2033
626
648
2.50%,
07/01/2033
53
54
2.50%,
10/01/2034
673
697
2.50%,
02/01/2035
1,792
1,857
2.50%,
06/01/2035
2,371
2,452
2.50%,
10/01/2036
22
23
2.50%,
10/01/2036
48
49
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
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)
2.50%,
12/01/2036
$
101
$
104
2.50%,
01/01/2037
(j)
4,500
4,651
2.50%,
07/01/2040
1,963
2,010
2.50%,
01/01/2043
306
316
2.50%,
08/01/2043
93
96
2.50%,
10/01/2043
185
191
2.50%,
12/01/2046
73
75
2.50%,
07/01/2050
4,859
4,986
2.50%,
08/01/2050
2,610
2,678
2.50%,
09/01/2050
5,719
5,851
2.50%,
10/01/2050
3,970
4,066
2.50%,
02/01/2051
8,482
8,716
2.50%,
07/01/2051
2,346
2,397
2.50%,
07/01/2051
3,699
3,779
2.50%,
08/01/2051
4,123
4,214
2.50%,
09/01/2051
3,440
3,517
2.50%,
09/01/2051
3,952
4,063
2.50%,
09/01/2051
9,725
9,962
2.50%,
10/01/2051
7,462
7,629
2.50%,
01/01/2052
(j)
57,900
59,072
3.00%,
11/01/2026
56
58
3.00%,
02/01/2027
99
104
3.00%,
04/01/2027
501
525
3.00%,
08/01/2027
74
77
3.00%,
10/01/2028
226
237
3.00%,
11/01/2028
84
88
3.00%,
02/01/2029
67
70
3.00%,
03/01/2029
86
90
3.00%,
03/01/2029
121
127
3.00%,
04/01/2029
95
100
3.00%,
05/01/2029
99
103
3.00%,
06/01/2029
61
64
3.00%,
08/01/2029
48
50
3.00%,
10/01/2029
50
53
3.00%,
10/01/2029
60
63
3.00%,
10/01/2029
52
54
3.00%,
11/01/2029
61
63
3.00%,
01/01/2030
265
278
3.00%,
01/01/2030
250
262
3.00%,
01/01/2030
102
107
3.00%,
03/01/2030
158
166
3.00%,
06/01/2030
135
142
3.00%,
06/01/2030
126
133
3.00%,
09/01/2030
230
242
3.00%,
09/01/2030
54
57
3.00%,
10/01/2030
152
160
3.00%,
02/01/2031
64
67
3.00%,
04/01/2032
689
726
3.00%,
05/01/2032
88
93
3.00%,
08/01/2032
135
143
3.00%,
01/01/2033
23
24
3.00%,
02/01/2033
1,324
1,393
3.00%,
02/01/2033
388
408
3.00%,
08/01/2033
401
422
3.00%,
05/01/2034
64
67
3.00%,
05/01/2034
103
108
3.00%,
08/01/2034
292
309
3.00%,
10/01/2034
28
30
3.00%,
11/01/2034
83
88
3.00%,
12/01/2034
1,077
1,128
3.00%,
02/01/2035
80
84
3.00%,
02/01/2035
88
92
3.00%,
03/01/2035
38
40
3.00%,
04/01/2035
38
40
3.00%,
06/01/2035
100
106
3.00%,
07/01/2035
37
39
3.00%,
11/01/2035
54
58
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%,
07/01/2036
$
78
$
82
3.00%,
12/01/2036
260
273
3.00%,
12/01/2036
171
179
3.00%,
12/01/2036
123
130
3.00%,
02/01/2037
16
17
3.00%,
02/01/2037
108
113
3.00%,
04/01/2037
53
55
3.00%,
04/01/2037
84
88
3.00%,
07/01/2037
32
34
3.00%,
08/01/2037
50
52
3.00%,
09/01/2037
136
142
3.00%,
06/01/2040
1,638
1,703
3.00%,
04/01/2042
90
95
3.00%,
09/01/2042
42
45
3.00%,
12/01/2042
102
109
3.00%,
02/01/2043
314
333
3.00%,
02/01/2043
475
502
3.00%,
02/01/2043
238
251
3.00%,
04/01/2043
184
195
3.00%,
04/01/2043
128
136
3.00%,
04/01/2043
254
268
3.00%,
04/01/2043
284
300
3.00%,
04/01/2043
250
263
3.00%,
04/01/2043
184
194
3.00%,
04/01/2043
180
190
3.00%,
04/01/2043
501
531
3.00%,
04/01/2043
124
131
3.00%,
05/01/2043
23
24
3.00%,
05/01/2043
117
123
3.00%,
05/01/2043
187
198
3.00%,
05/01/2043
231
244
3.00%,
06/01/2043
180
188
3.00%,
06/01/2043
241
254
3.00%,
06/01/2043
163
172
3.00%,
06/01/2043
394
416
3.00%,
06/01/2043
426
451
3.00%,
07/01/2043
301
318
3.00%,
07/01/2043
131
139
3.00%,
07/01/2043
65
68
3.00%,
08/01/2043
291
304
3.00%,
08/01/2043
164
173
3.00%,
08/01/2043
422
445
3.00%,
08/01/2043
78
82
3.00%,
08/01/2043
85
89
3.00%,
08/01/2043
55
58
3.00%,
09/01/2043
179
189
3.00%,
09/01/2043
354
374
3.00%,
10/01/2043
433
457
3.00%,
10/01/2043
36
38
3.00%,
11/01/2043
81
86
3.00%,
11/01/2043
148
156
3.00%,
11/01/2043
56
59
3.00%,
01/01/2044
76
81
3.00%,
01/01/2045
204
214
3.00%,
05/01/2045
307
322
3.00%,
09/01/2045
45
48
3.00%,
10/01/2045
185
194
3.00%,
11/01/2045
97
102
3.00%,
11/01/2045
46
48
3.00%,
12/01/2045
262
276
3.00%,
01/01/2046
168
177
3.00%,
02/01/2046
59
61
3.00%,
02/01/2046
298
313
3.00%,
02/01/2046
294
309
3.00%,
04/01/2046
54
57
3.00%,
05/01/2046
107
112
3.00%,
05/01/2046
159
167
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
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)
3.00%,
05/01/2046
$
47
$
49
3.00%,
06/01/2046
90
95
3.00%,
08/01/2046
153
161
3.00%,
08/01/2046
200
210
3.00%,
09/01/2046
138
145
3.00%,
09/01/2046
74
78
3.00%,
10/01/2046
645
677
3.00%,
10/01/2046
77
80
3.00%,
11/01/2046
281
295
3.00%,
11/01/2046
59
61
3.00%,
11/01/2046
462
488
3.00%,
11/01/2046
320
336
3.00%,
11/01/2046
407
429
3.00%,
11/01/2046
47
49
3.00%,
12/01/2046
490
514
3.00%,
12/01/2046
880
929
3.00%,
01/01/2047
278
291
3.00%,
01/01/2047
492
516
3.00%,
02/01/2047
93
98
3.00%,
02/01/2047
364
382
3.00%,
05/01/2047
199
209
3.00%,
10/01/2048
29
30
3.00%,
09/01/2049
2,688
2,792
3.00%,
10/01/2049
732
761
3.00%,
10/01/2049
6,262
6,527
3.00%,
11/01/2049
405
420
3.00%,
11/01/2049
1,953
2,052
3.00%,
11/01/2049
1,347
1,398
3.00%,
11/01/2049
902
939
3.00%,
12/01/2049
4,819
5,055
3.00%,
03/01/2050
3,898
4,089
3.00%,
03/01/2050
4,520
4,724
3.00%,
06/01/2050
3,293
3,435
3.00%,
07/01/2050
7,892
8,254
3.00%,
07/01/2050
1,704
1,772
3.00%,
10/01/2050
2,624
2,734
3.00%,
01/01/2052
(j)
7,000
7,252
3.50%,
10/01/2025
82
86
3.50%,
11/01/2025
121
128
3.50%,
11/01/2025
46
49
3.50%,
01/01/2026
70
74
3.50%,
03/01/2026
98
103
3.50%,
12/01/2026
89
94
3.50%,
02/01/2027
53
56
3.50%,
11/01/2028
92
97
3.50%,
12/01/2028
53
56
3.50%,
03/01/2029
83
88
3.50%,
01/01/2031
4
4
3.50%,
04/01/2031
9
9
3.50%,
02/01/2032
37
39
3.50%,
04/01/2032
35
38
3.50%,
05/01/2032
78
83
3.50%,
06/01/2032
161
172
3.50%,
07/01/2032
51
55
3.50%,
09/01/2032
75
80
3.50%,
12/01/2032
1,759
1,869
3.50%,
09/01/2033
59
62
3.50%,
09/01/2033
40
43
3.50%,
10/01/2033
230
243
3.50%,
10/01/2033
86
92
3.50%,
11/01/2033
89
95
3.50%,
01/01/2034
55
59
3.50%,
06/01/2034
97
104
3.50%,
08/01/2034
24
26
3.50%,
11/01/2034
57
61
3.50%,
02/01/2035
986
1,039
3.50%,
12/01/2035
117
125
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%,
07/01/2036
$
123
$
131
3.50%,
02/01/2037
90
97
3.50%,
03/01/2037
106
112
3.50%,
05/01/2037
20
21
3.50%,
07/01/2037
41
44
3.50%,
10/01/2037
47
50
3.50%,
01/01/2038
124
133
3.50%,
01/01/2041
438
471
3.50%,
03/01/2041
604
650
3.50%,
10/01/2041
53
57
3.50%,
12/01/2041
190
205
3.50%,
12/01/2041
185
200
3.50%,
01/01/2042
65
70
3.50%,
03/01/2042
59
64
3.50%,
03/01/2042
42
45
3.50%,
03/01/2042
161
174
3.50%,
05/01/2042
50
54
3.50%,
05/01/2042
309
333
3.50%,
07/01/2042
77
83
3.50%,
07/01/2042
43
47
3.50%,
10/01/2042
351
377
3.50%,
04/01/2043
118
128
3.50%,
05/01/2043
112
121
3.50%,
05/01/2043
341
368
3.50%,
05/01/2043
285
307
3.50%,
06/01/2043
297
320
3.50%,
07/01/2043
153
165
3.50%,
07/01/2043
333
359
3.50%,
08/01/2043
76
82
3.50%,
08/01/2043
243
262
3.50%,
09/01/2043
86
93
3.50%,
12/01/2043
67
72
3.50%,
01/01/2044
980
1,055
3.50%,
02/01/2044
71
77
3.50%,
07/01/2044
475
510
3.50%,
10/01/2044
200
214
3.50%,
10/01/2044
77
83
3.50%,
11/01/2044
201
215
3.50%,
12/01/2044
41
43
3.50%,
12/01/2044
212
228
3.50%,
12/01/2044
153
164
3.50%,
01/01/2045
237
255
3.50%,
04/01/2045
209
224
3.50%,
05/01/2045
79
85
3.50%,
07/01/2045
220
236
3.50%,
07/01/2045
39
42
3.50%,
08/01/2045
220
235
3.50%,
08/01/2045
198
211
3.50%,
09/01/2045
300
321
3.50%,
09/01/2045
106
114
3.50%,
09/01/2045
248
266
3.50%,
11/01/2045
97
104
3.50%,
11/01/2045
177
189
3.50%,
12/01/2045
337
358
3.50%,
12/01/2045
183
196
3.50%,
12/01/2045
226
241
3.50%,
01/01/2046
377
403
3.50%,
01/01/2046
278
295
3.50%,
02/01/2046
152
163
3.50%,
02/01/2046
67
72
3.50%,
03/01/2046
239
254
3.50%,
03/01/2046
212
226
3.50%,
05/01/2046
249
266
3.50%,
06/01/2046
53
57
3.50%,
07/01/2046
225
239
3.50%,
09/01/2046
202
215
3.50%,
11/01/2046
416
446
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
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)
3.50%,
12/01/2046
$
243
$
259
3.50%,
01/01/2047
531
567
3.50%,
02/01/2047
381
406
3.50%,
03/01/2047
47
50
3.50%,
09/01/2047
113
120
3.50%,
11/01/2047
454
481
3.50%,
01/01/2048
442
467
3.50%,
02/01/2048
389
411
3.50%,
02/01/2048
32
34
3.50%,
03/01/2048
290
307
3.50%,
04/01/2048
178
188
3.50%,
10/01/2048
47
50
3.50%,
10/01/2048
38
40
3.50%,
04/01/2049
376
398
3.50%,
06/01/2049
573
604
3.50%,
06/01/2049
758
799
3.50%,
06/01/2049
593
627
3.50%,
07/01/2049
1,416
1,493
3.50%,
07/01/2049
1,584
1,675
3.50%,
07/01/2049
868
918
3.50%,
08/01/2049
925
975
3.50%,
09/01/2049
925
976
3.50%,
11/01/2049
1,740
1,838
3.50%,
11/01/2049
1,482
1,563
3.50%,
11/01/2049
4,400
4,680
3.50%,
05/01/2050
1,908
2,011
3.50%,
09/01/2050
1,995
2,138
4.00%,
07/01/2025
65
68
4.00%,
04/01/2029
2
2
4.00%,
10/01/2030
6
7
4.00%,
12/01/2030
56
60
4.00%,
02/01/2031
19
20
4.00%,
03/01/2031
387
407
4.00%,
07/01/2031
12
13
4.00%,
10/01/2031
51
55
4.00%,
11/01/2031
12
13
4.00%,
12/01/2031
10
11
4.00%,
01/01/2032
15
16
4.00%,
09/01/2033
106
115
4.00%,
01/01/2036
98
105
4.00%,
02/01/2036
68
74
4.00%,
06/01/2036
57
62
4.00%,
01/01/2037
81
88
4.00%,
02/01/2037
187
202
4.00%,
07/01/2038
126
135
4.00%,
02/01/2039
35
37
4.00%,
10/01/2039
58
63
4.00%,
01/01/2041
190
208
4.00%,
02/01/2041
129
141
4.00%,
02/01/2041
47
52
4.00%,
09/01/2041
73
80
4.00%,
02/01/2043
69
75
4.00%,
12/01/2043
64
71
4.00%,
01/01/2044
200
220
4.00%,
06/01/2044
76
82
4.00%,
06/01/2044
157
172
4.00%,
07/01/2044
115
125
4.00%,
07/01/2044
133
145
4.00%,
09/01/2044
70
77
4.00%,
10/01/2044
112
122
4.00%,
10/01/2044
196
214
4.00%,
11/01/2044
129
142
4.00%,
12/01/2044
34
37
4.00%,
12/01/2044
195
214
4.00%,
01/01/2045
35
38
4.00%,
02/01/2045
128
140
4.00%,
02/01/2045
72
78
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%,
02/01/2045
$
164
$
179
4.00%,
07/01/2045
90
98
4.00%,
07/01/2045
121
131
4.00%,
09/01/2045
150
163
4.00%,
10/01/2045
42
45
4.00%,
10/01/2045
141
154
4.00%,
11/01/2045
54
58
4.00%,
11/01/2045
234
256
4.00%,
12/01/2045
58
64
4.00%,
12/01/2045
105
115
4.00%,
01/01/2046
204
222
4.00%,
02/01/2046
49
54
4.00%,
02/01/2046
197
212
4.00%,
03/01/2046
61
66
4.00%,
03/01/2046
77
84
4.00%,
04/01/2046
101
109
4.00%,
07/01/2046
191
207
4.00%,
04/01/2047
313
336
4.00%,
06/01/2047
228
245
4.00%,
08/01/2047
283
303
4.00%,
08/01/2047
49
53
4.00%,
08/01/2047
363
388
4.00%,
08/01/2047
165
176
4.00%,
09/01/2047
331
354
4.00%,
11/01/2047
631
676
4.00%,
01/01/2048
519
558
4.00%,
02/01/2048
236
252
4.00%,
03/01/2048
4,415
4,743
4.00%,
03/01/2048
116
124
4.00%,
05/01/2048
906
971
4.00%,
06/01/2048
183
195
4.00%,
06/01/2048
479
511
4.00%,
07/01/2048
144
153
4.00%,
08/01/2048
75
80
4.00%,
08/01/2048
58
62
4.00%,
09/01/2048
276
294
4.00%,
09/01/2048
195
208
4.00%,
01/01/2049
2,577
2,789
4.00%,
01/01/2049
1,382
1,482
4.00%,
03/01/2049
201
215
4.00%,
04/01/2049
402
428
4.00%,
04/01/2049
281
299
4.00%,
07/01/2049
1,375
1,463
4.00%,
08/01/2049
945
1,004
4.00%,
10/01/2049
713
761
4.00%,
10/01/2049
434
467
4.00%,
11/01/2049
668
712
4.00%,
04/01/2050
2,538
2,721
4.50%,
07/01/2029
1
1
4.50%,
02/01/2030
5
6
4.50%,
04/01/2030
2
2
4.50%,
08/01/2030
38
41
4.50%,
09/01/2030
31
33
4.50%,
01/01/2031
7
7
4.50%,
04/01/2031
3
4
4.50%,
05/01/2031
6
7
4.50%,
07/01/2031
26
28
4.50%,
08/01/2031
14
15
4.50%,
02/01/2035
62
68
4.50%,
08/01/2040
43
47
4.50%,
08/01/2040
127
141
4.50%,
06/01/2041
62
68
4.50%,
09/01/2041
111
123
4.50%,
09/01/2043
54
60
4.50%,
10/01/2043
99
109
4.50%,
01/01/2044
378
417
4.50%,
01/01/2044
209
231
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
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)
4.50%,
02/01/2044
$
131
$
144
4.50%,
03/01/2044
54
58
4.50%,
03/01/2044
77
85
4.50%,
05/01/2044
252
277
4.50%,
05/01/2044
46
51
4.50%,
05/01/2044
69
77
4.50%,
06/01/2044
120
132
4.50%,
08/01/2044
103
113
4.50%,
08/01/2044
98
107
4.50%,
12/01/2044
232
256
4.50%,
04/01/2046
91
98
4.50%,
08/01/2046
85
92
4.50%,
01/01/2047
77
83
4.50%,
02/01/2047
48
52
4.50%,
02/01/2047
125
136
4.50%,
03/01/2047
113
123
4.50%,
10/01/2047
92
100
4.50%,
11/01/2047
171
185
4.50%,
02/01/2048
137
147
4.50%,
04/01/2048
382
409
4.50%,
05/01/2048
231
247
4.50%,
07/01/2048
2,622
2,812
4.50%,
08/01/2048
67
72
4.50%,
08/01/2048
54
58
4.50%,
10/01/2048
610
654
4.50%,
10/01/2048
336
361
4.50%,
12/01/2048
1,450
1,567
4.50%,
03/01/2049
2,854
3,061
4.50%,
04/01/2049
293
313
4.50%,
05/01/2049
2,228
2,406
4.50%,
07/01/2049
827
887
4.50%,
07/01/2049
410
440
4.50%,
09/01/2049
516
554
4.50%,
09/01/2049
3,333
3,574
5.00%,
07/01/2024
1
1
5.00%,
04/01/2029
4
5
5.00%,
09/01/2029
60
65
5.00%,
03/01/2030
7
8
5.00%,
08/01/2030
10
11
5.00%,
07/01/2035
81
91
5.00%,
04/01/2037
134
149
5.00%,
01/01/2039
165
184
5.00%,
07/01/2039
74
83
5.00%,
07/01/2039
68
77
5.00%,
02/01/2041
133
150
5.00%,
02/01/2041
74
84
5.00%,
05/01/2042
177
200
5.00%,
03/01/2044
88
96
5.00%,
03/01/2044
91
100
5.00%,
05/01/2044
60
67
5.00%,
11/01/2044
125
139
5.00%,
04/01/2048
68
74
5.00%,
09/01/2048
864
945
5.00%,
05/01/2049
76
83
5.00%,
06/01/2049
561
614
5.00%,
07/01/2049
307
339
5.00%,
08/01/2049
328
361
5.50%,
01/01/2023
1
1
5.50%,
07/01/2023
1
1
5.50%,
08/01/2023
7
8
5.50%,
10/01/2023
12
13
5.50%,
11/01/2023
15
16
5.50%,
02/01/2026
23
25
5.50%,
03/01/2027
25
27
5.50%,
06/01/2028
2
3
5.50%,
09/01/2028
1
1
5.50%,
01/01/2029
10
11
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%,
01/01/2029
$
1
$
2
5.50%,
12/01/2029
6
6
5.50%,
11/01/2035
134
153
5.50%,
12/01/2036
63
72
5.50%,
03/01/2037
92
105
5.50%,
08/01/2037
66
75
5.50%,
08/01/2037
80
91
5.50%,
08/01/2037
63
71
5.50%,
05/01/2038
115
132
5.50%,
06/01/2038
56
64
6.00%,
05/01/2041
109
126
6.50%,
01/01/2038
59
67
$
567,136
Government
National
Mortgage
Association
(GNMA)
-
5.62%
2.00%,
01/01/2052
35,500
35,821
2.50%,
03/20/2028
48
49
2.50%,
07/20/2028
50
52
2.50%,
03/20/2031
58
60
2.50%,
05/20/2032
73
75
2.50%,
07/20/2043
109
113
2.50%,
06/20/2045
61
63
2.50%,
12/20/2046
130
134
2.50%,
01/20/2047
192
198
2.50%,
01/01/2052
39,500
40,450
3.00%,
07/20/2030
98
103
3.00%,
01/20/2031
62
65
3.00%,
07/20/2032
73
76
3.00%,
01/20/2033
33
35
3.00%,
09/20/2042
655
687
3.00%,
10/15/2042
107
110
3.00%,
12/20/2042
186
195
3.00%,
01/20/2043
259
272
3.00%,
03/20/2043
133
141
3.00%,
03/20/2043
347
364
3.00%,
04/20/2043
447
468
3.00%,
06/15/2043
158
167
3.00%,
06/20/2043
98
102
3.00%,
07/15/2043
50
52
3.00%,
08/15/2043
78
81
3.00%,
08/15/2043
110
114
3.00%,
08/20/2043
46
49
3.00%,
09/20/2043
178
187
3.00%,
10/20/2043
94
99
3.00%,
11/20/2043
68
72
3.00%,
03/20/2044
144
151
3.00%,
08/20/2044
539
565
3.00%,
11/15/2044
234
248
3.00%,
11/20/2044
176
184
3.00%,
12/20/2044
178
186
3.00%,
02/15/2045
188
200
3.00%,
05/20/2045
157
165
3.00%,
07/15/2045
73
76
3.00%,
07/20/2045
1,227
1,281
3.00%,
08/15/2045
170
180
3.00%,
08/20/2045
380
396
3.00%,
10/20/2045
338
353
3.00%,
11/20/2045
197
206
3.00%,
12/20/2045
276
288
3.00%,
01/20/2046
70
73
3.00%,
02/20/2046
93
97
3.00%,
03/20/2046
444
463
3.00%,
04/20/2046
288
301
3.00%,
05/20/2046
263
275
3.00%,
06/20/2046
399
417
3.00%,
07/20/2046
1,201
1,253
3.00%,
08/20/2046
818
854
3.00%,
09/20/2046
481
502
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
138
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
3.00%,
10/20/2046
$
317
$
331
3.00%,
11/20/2046
214
226
3.00%,
11/20/2046
485
507
3.00%,
12/20/2046
591
617
3.00%,
01/20/2047
391
409
3.00%,
07/20/2047
18
19
3.00%,
10/20/2047
406
424
3.00%,
11/20/2047
193
201
3.00%,
12/20/2047
636
660
3.00%,
01/20/2048
275
286
3.00%,
02/20/2048
291
303
3.00%,
03/20/2048
273
284
3.00%,
11/20/2049
10,326
10,691
3.00%,
01/01/2052
12,000
12,416
3.50%,
09/20/2028
65
68
3.50%,
04/20/2042
435
466
3.50%,
05/20/2042
460
493
3.50%,
06/20/2042
128
137
3.50%,
07/20/2042
511
547
3.50%,
10/20/2042
310
332
3.50%,
01/15/2043
111
118
3.50%,
01/20/2043
168
180
3.50%,
02/20/2043
510
547
3.50%,
03/20/2043
229
244
3.50%,
03/20/2043
474
508
3.50%,
04/15/2043
63
67
3.50%,
04/20/2043
462
495
3.50%,
04/20/2043
326
349
3.50%,
07/20/2043
555
595
3.50%,
08/15/2043
44
48
3.50%,
08/20/2043
427
457
3.50%,
09/20/2043
282
302
3.50%,
07/20/2044
313
332
3.50%,
08/20/2044
330
351
3.50%,
09/20/2044
124
132
3.50%,
10/20/2044
131
139
3.50%,
11/20/2044
141
150
3.50%,
12/20/2044
157
167
3.50%,
02/20/2045
155
164
3.50%,
05/20/2045
203
215
3.50%,
06/20/2045
43
45
3.50%,
07/20/2045
306
325
3.50%,
08/20/2045
141
149
3.50%,
09/20/2045
75
79
3.50%,
10/20/2045
555
587
3.50%,
11/20/2045
459
486
3.50%,
12/20/2045
291
308
3.50%,
01/20/2046
727
770
3.50%,
02/20/2046
40
42
3.50%,
03/20/2046
3,737
3,954
3.50%,
04/20/2046
291
308
3.50%,
05/20/2046
394
415
3.50%,
06/20/2046
1,730
1,822
3.50%,
07/15/2046
39
41
3.50%,
07/20/2046
206
217
3.50%,
08/20/2046
916
965
3.50%,
09/20/2046
383
403
3.50%,
10/20/2046
456
481
3.50%,
11/20/2046
348
366
3.50%,
12/20/2046
380
400
3.50%,
01/20/2047
382
402
3.50%,
02/20/2047
226
237
3.50%,
03/20/2047
304
319
3.50%,
04/20/2047
725
761
3.50%,
05/20/2047
217
228
3.50%,
06/20/2047
337
354
3.50%,
07/20/2047
612
643
3.50%,
08/20/2047
969
1,018
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
3.50%,
09/20/2047
$
71
$
75
3.50%,
10/20/2047
240
253
3.50%,
11/20/2047
312
328
3.50%,
12/20/2047
357
374
3.50%,
01/20/2048
507
533
3.50%,
02/20/2048
79
83
3.50%,
07/20/2048
155
162
4.00%,
08/15/2040
41
45
4.00%,
12/20/2040
20
22
4.00%,
08/15/2041
37
40
4.00%,
11/15/2041
56
62
4.00%,
03/15/2042
42
45
4.00%,
03/20/2042
90
98
4.00%,
04/20/2042
80
87
4.00%,
05/15/2042
93
99
4.00%,
10/20/2043
44
47
4.00%,
11/20/2043
102
110
4.00%,
02/20/2044
247
267
4.00%,
03/15/2044
83
92
4.00%,
05/20/2044
159
172
4.00%,
06/20/2044
119
128
4.00%,
07/20/2044
481
520
4.00%,
08/20/2044
343
372
4.00%,
09/20/2044
311
337
4.00%,
10/20/2044
412
446
4.00%,
11/20/2044
183
198
4.00%,
12/20/2044
333
361
4.00%,
01/20/2045
279
302
4.00%,
04/20/2045
177
191
4.00%,
05/15/2045
91
100
4.00%,
07/20/2045
67
73
4.00%,
08/20/2045
172
186
4.00%,
09/20/2045
241
261
4.00%,
10/20/2045
130
138
4.00%,
11/20/2045
47
51
4.00%,
12/15/2045
46
50
4.00%,
12/20/2045
121
131
4.00%,
01/20/2046
75
81
4.00%,
02/20/2046
110
119
4.00%,
04/20/2046
183
195
4.00%,
05/20/2046
89
96
4.00%,
07/20/2046
192
204
4.00%,
01/20/2047
371
395
4.00%,
02/20/2047
290
308
4.00%,
03/20/2047
269
286
4.00%,
05/20/2047
362
386
4.00%,
06/20/2047
359
382
4.00%,
07/20/2047
890
948
4.00%,
08/20/2047
43
45
4.00%,
09/20/2047
2,789
2,965
4.00%,
10/20/2047
206
219
4.50%,
02/15/2039
86
97
4.50%,
05/15/2039
57
63
4.50%,
11/15/2039
201
235
4.50%,
04/15/2040
166
186
4.50%,
01/20/2041
25
28
4.50%,
02/20/2041
24
26
4.50%,
03/20/2041
19
20
4.50%,
07/15/2041
72
80
4.50%,
05/20/2043
76
83
4.50%,
06/20/2043
85
93
4.50%,
10/20/2043
70
77
4.50%,
11/20/2043
228
253
4.50%,
03/20/2044
326
360
4.50%,
04/20/2044
14
16
4.50%,
05/20/2044
235
260
4.50%,
07/20/2044
123
135
4.50%,
12/20/2044
52
57
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
139
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
4.50%,
02/20/2045
$
135
$
148
4.50%,
03/20/2045
58
64
4.50%,
04/20/2045
71
79
4.50%,
06/20/2046
70
77
4.50%,
12/20/2046
211
233
4.50%,
02/20/2047
125
135
4.50%,
04/20/2047
88
95
4.50%,
06/15/2047
80
89
4.50%,
08/20/2047
182
195
4.50%,
10/20/2047
89
95
4.50%,
02/20/2048
1,465
1,567
4.50%,
05/20/2048
1,036
1,101
4.50%,
08/20/2048
259
274
4.50%,
10/20/2048
157
166
4.50%,
11/20/2048
241
255
4.50%,
12/20/2048
69
73
5.00%,
07/15/2035
54
61
5.00%,
04/15/2041
169
193
5.00%,
08/20/2041
52
59
5.00%,
04/20/2042
41
46
5.00%,
12/20/2042
127
144
5.00%,
07/20/2043
69
78
5.00%,
02/20/2044
75
84
5.00%,
03/20/2044
47
53
5.00%,
12/20/2045
67
76
5.00%,
03/20/2048
62
68
5.00%,
06/20/2048
1,194
1,277
5.00%,
10/20/2048
82
88
5.50%,
01/15/2040
58
67
5.50%,
06/20/2040
27
30
5.50%,
01/20/2041
121
140
5.50%,
10/20/2042
56
65
5.50%,
09/20/2043
57
66
6.00%,
04/15/2035
8
9
$
163,057
U.S.
Treasury
-
38.97%
0.13%,
01/31/2023
4,370
4,355
0.13%,
04/30/2023
5,465
5,436
0.13%,
05/15/2023
11,175
11,111
0.13%,
07/31/2023
19,515
19,362
0.13%,
08/15/2023
4,985
4,944
0.13%,
09/15/2023
4,650
4,607
0.13%,
10/15/2023
16,710
16,543
0.25%,
04/15/2023
8,470
8,442
0.25%,
06/15/2023
4,000
3,981
0.25%,
11/15/2023
5,595
5,549
0.25%,
05/31/2025
2,360
2,296
0.25%,
06/30/2025
7,025
6,825
0.25%,
07/31/2025
16,325
15,835
0.25%,
08/31/2025
9,680
9,377
0.25%,
09/30/2025
12,000
11,620
0.25%,
10/31/2025
2,345
2,266
0.38%,
10/31/2023
4,000
3,976
0.38%,
04/30/2025
8,100
7,920
0.38%,
11/30/2025
4,675
4,534
0.38%,
01/31/2026
10,575
10,230
0.38%,
07/31/2027
8,175
7,765
0.38%,
09/30/2027
3,705
3,507
0.50%,
03/15/2023
1,725
1,726
0.50%,
03/31/2025
4,250
4,179
0.50%,
02/28/2026
3,990
3,877
0.50%,
04/30/2027
4,440
4,259
0.50%,
05/31/2027
3,290
3,150
0.50%,
06/30/2027
2,265
2,167
0.50%,
08/31/2027
5,260
5,019
0.50%,
10/31/2027
3,810
3,626
0.63%,
07/31/2026
4,210
4,094
0.63%,
03/31/2027
5,975
5,775
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
0.63%,
11/30/2027
$
4,645
$
4,449
0.63%,
12/31/2027
9,865
9,439
0.63%,
05/15/2030
6,235
5,830
0.63%,
08/15/2030
15,650
14,595
0.75%,
12/31/2023
4,295
4,296
0.75%,
03/31/2026
8,220
8,064
0.75%,
01/31/2028
11,495
11,069
0.88%,
09/30/2026
6,750
6,629
0.88%,
11/15/2030
8,185
7,782
1.00%,
07/31/2028
1,705
1,660
1.13%,
02/28/2025
8,950
8,981
1.13%,
10/31/2026
3,635
3,611
1.13%,
02/28/2027
2,670
2,649
1.13%,
02/29/2028
6,795
6,696
1.13%,
08/31/2028
2,640
2,589
1.13%,
02/15/2031
15,070
14,626
1.13%,
05/15/2040
3,760
3,296
1.13%,
08/15/2040
1,470
1,283
1.25%,
07/31/2023
5,650
5,706
1.25%,
08/31/2024
7,600
7,670
1.25%,
03/31/2028
7,125
7,062
1.25%,
04/30/2028
2,000
1,982
1.25%,
05/31/2028
7,415
7,342
1.25%,
09/30/2028
9,295
9,186
1.25%,
08/15/2031
8,160
7,978
1.25%,
05/15/2050
7,960
6,759
1.38%,
06/30/2023
4,050
4,098
1.38%,
08/31/2023
8,860
8,965
1.38%,
09/30/2023
4,430
4,484
1.38%,
08/31/2026
3,400
3,420
1.38%,
10/31/2028
4,050
4,034
1.38%,
11/15/2031
2,705
2,671
1.38%,
11/15/2040
6,455
5,883
1.38%,
08/15/2050
7,480
6,552
1.50%,
02/28/2023
2,995
3,030
1.50%,
03/31/2023
3,340
3,381
1.50%,
09/30/2024
5,950
6,044
1.50%,
10/31/2024
1,000
1,016
1.50%,
11/30/2024
7,880
8,004
1.50%,
08/15/2026
15,150
15,322
1.50%,
02/15/2030
5,660
5,689
1.63%,
04/30/2023
3,000
3,043
1.63%,
10/31/2023
3,160
3,213
1.63%,
02/15/2026
3,315
3,372
1.63%,
05/15/2026
3,345
3,401
1.63%,
09/30/2026
1,265
1,286
1.63%,
11/30/2026
1,500
1,526
1.63%,
08/15/2029
3,750
3,804
1.63%,
05/15/2031
9,520
9,640
1.63%,
11/15/2050
7,525
7,011
1.75%,
01/31/2023
2,560
2,596
1.75%,
05/15/2023
15,112
15,361
1.75%,
06/30/2024
3,970
4,057
1.75%,
12/31/2024
5,620
5,748
1.75%,
11/15/2029
9,045
9,271
1.75%,
08/15/2041
1,975
1,915
1.88%,
08/31/2024
4,000
4,102
1.88%,
07/31/2026
7,400
7,610
1.88%,
02/15/2041
7,880
7,800
1.88%,
02/15/2051
7,680
7,598
1.88%,
11/15/2051
3,595
3,566
2.00%,
02/15/2023
4,597
4,676
2.00%,
04/30/2024
4,035
4,144
2.00%,
05/31/2024
6,765
6,951
2.00%,
06/30/2024
5,195
5,340
2.00%,
02/15/2025
8,570
8,827
2.00%,
08/15/2025
4,850
5,002
2.00%,
11/15/2026
13,300
13,758
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
140
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
$
4,977
2.00%,
08/15/2051
6,110
6,228
2.13%,
11/30/2023
13,390
13,749
2.13%,
03/31/2024
3,525
3,628
2.13%,
07/31/2024
5,580
5,757
2.13%,
09/30/2024
4,770
4,926
2.13%,
11/30/2024
4,460
4,609
2.13%,
05/15/2025
8,950
9,264
2.13%,
05/31/2026
2,000
2,077
2.25%,
12/31/2023
3,655
3,764
2.25%,
01/31/2024
1,475
1,520
2.25%,
04/30/2024
4,850
5,009
2.25%,
10/31/2024
3,336
3,458
2.25%,
11/15/2024
8,963
9,292
2.25%,
12/31/2024
3,000
3,113
2.25%,
11/15/2025
2,500
2,604
2.25%,
03/31/2026
5,000
5,214
2.25%,
02/15/2027
8,160
8,548
2.25%,
08/15/2027
5,535
5,806
2.25%,
11/15/2027
9,840
10,331
2.25%,
05/15/2041
2,475
2,600
2.25%,
08/15/2046
4,700
4,970
2.25%,
08/15/2049
3,790
4,056
2.38%,
01/31/2023
4,235
4,322
2.38%,
02/29/2024
4,635
4,792
2.38%,
08/15/2024
4,595
4,771
2.38%,
04/30/2026
5,000
5,244
2.38%,
05/15/2027
8,780
9,266
2.38%,
05/15/2029
8,350
8,900
2.38%,
11/15/2049
5,505
6,047
2.38%,
05/15/2051
5,095
5,628
2.50%,
03/31/2023
4,560
4,672
2.50%,
08/15/2023
13,632
14,040
2.50%,
01/31/2024
4,530
4,692
2.50%,
05/15/2024
3,066
3,185
2.50%,
01/31/2025
3,300
3,450
2.50%,
02/15/2045
5,035
5,537
2.50%,
02/15/2046
2,925
3,231
2.50%,
05/15/2046
4,425
4,890
2.63%,
06/30/2023
4,360
4,492
2.63%,
03/31/2025
1,805
1,897
2.63%,
12/31/2025
5,000
5,287
2.63%,
02/15/2029
11,995
12,967
2.75%,
04/30/2023
4,205
4,328
2.75%,
07/31/2023
1,705
1,762
2.75%,
08/31/2023
3,000
3,103
2.75%,
11/15/2023
5,656
5,870
2.75%,
02/15/2024
5,336
5,558
2.75%,
02/28/2025
9,505
10,017
2.75%,
06/30/2025
1,280
1,353
2.75%,
08/31/2025
5,225
5,528
2.75%,
02/15/2028
9,145
9,884
2.75%,
08/15/2042
1,591
1,813
2.75%,
11/15/2042
2,610
2,975
2.75%,
08/15/2047
4,550
5,295
2.75%,
11/15/2047
3,405
3,964
2.88%,
09/30/2023
1,095
1,137
2.88%,
10/31/2023
3,000
3,118
2.88%,
11/30/2023
6,845
7,125
2.88%,
04/30/2025
2,475
2,622
2.88%,
05/31/2025
4,120
4,368
2.88%,
07/31/2025
2,000
2,125
2.88%,
11/30/2025
3,435
3,661
2.88%,
05/15/2028
4,400
4,794
2.88%,
08/15/2028
9,660
10,550
2.88%,
05/15/2043
5,703
6,627
2.88%,
08/15/2045
4,255
4,996
2.88%,
11/15/2046
850
1,005
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
2.88%,
05/15/2049
$
5,720
$
6,890
3.00%,
09/30/2025
2,775
2,964
3.00%,
10/31/2025
4,500
4,813
3.00%,
05/15/2042
1,200
1,421
3.00%,
11/15/2044
4,995
5,957
3.00%,
05/15/2045
4,260
5,095
3.00%,
11/15/2045
3,500
4,205
3.00%,
02/15/2047
5,075
6,142
3.00%,
05/15/2047
3,400
4,127
3.00%,
02/15/2048
6,075
7,415
3.00%,
08/15/2048
2,745
3,359
3.00%,
02/15/2049
4,115
5,059
3.13%,
11/15/2028
6,620
7,358
3.13%,
11/15/2041
1,700
2,043
3.13%,
02/15/2042
805
970
3.13%,
02/15/2043
4,020
4,845
3.13%,
08/15/2044
4,060
4,930
3.13%,
05/15/2048
4,020
5,024
3.38%,
05/15/2044
3,425
4,312
3.38%,
11/15/2048
4,815
6,300
3.50%,
02/15/2039
1,170
1,468
3.63%,
08/15/2043
3,570
4,631
3.63%,
02/15/2044
1,755
2,284
3.75%,
08/15/2041
755
986
3.75%,
11/15/2043
1,165
1,541
3.88%,
08/15/2040
1,669
2,200
4.25%,
05/15/2039
1,190
1,631
4.25%,
11/15/2040
1,135
1,570
4.38%,
11/15/2039
2,970
4,139
4.38%,
05/15/2040
1,489
2,084
4.38%,
05/15/2041
1,660
2,338
4.50%,
02/15/2036
3,565
4,900
4.50%,
05/15/2038
710
993
4.50%,
08/15/2039
1,235
1,744
4.63%,
02/15/2040
1,100
1,580
4.75%,
02/15/2037
2,290
3,248
4.75%,
02/15/2041
2,628
3,866
5.25%,
11/15/2028
2,415
3,022
5.25%,
02/15/2029
2,000
2,519
5.38%,
02/15/2031
3,616
4,839
6.00%,
02/15/2026
2,000
2,389
6.13%,
11/15/2027
2,225
2,827
6.13%,
08/15/2029
1,000
1,342
6.25%,
05/15/2030
1,500
2,071
6.38%,
08/15/2027
1,830
2,332
6.88%,
08/15/2025
1,000
1,205
$
1,130,159
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
1,908,741
Total
Investments
$
3,147,995
Other
Assets
and
Liabilities
- (8.53)%
(247,387)
TOTAL
NET
ASSETS
-
100.00%
$
2,900,608
(a)
Security
or
a
portion
of
the
security
was
on
loan. At
the
end
of
the
period,
the
value
of
these
securities
totaled
$11,973
or
0.41%
of
net
assets.
(b)
Current
yield
shown
is
as
of
period
end.
(c)
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
$12,269
or
0.42%
of
net
assets.
(d)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(controls
5.00%
or
more
of
the
outstanding
voting
shares
of
the
security).
Please
see
Affiliated
Securities
sub-schedule
for
transactional
information.
(e)
Non-income
producing
security
(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.
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2021
See
accompanying
notes.
141
(g)
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.
(h)
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
$11,311
or
0.39%
of
net
assets.
(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.
Portfolio
Summary (unaudited)
Sector
Percent
Government
43.41%
Mortgage
Securities
28.20%
Money
Market
Funds
10.02%
Financial
8.60%
Consumer,
Non-cyclical
4.40%
Communications
2.76%
Industrial
2.19%
Utilities
2.10%
Technology
1.92%
Energy
1.91%
Consumer,
Cyclical
1.23%
Basic
Materials
0.66%
Investment
Companies
0.49%
Revenue
Bonds
0.35%
General
Obligation
Unlimited
0.20%
Asset
Backed
Securities
0.05%
Insured
0.04%
General
Obligation
Limited
0.00%
Other
Assets
and
Liabilities
(8.53)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
233,150
$
1,603,321
$
1,551,392
$
285,079
$
233,150
$
1,603,321
$
1,551,392
$
285,079
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
142
INVESTMENT
COMPANIES
-
4.79%
Shares
Held
Value
(000's)
Money
Market
Funds
-
4.79%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.03%
(a),(b)
142,048
$
142
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
11,178,081
11,178
$
11,320
TOTAL
INVESTMENT
COMPANIES
$
11,320
COMMON
STOCKS
-
0.10%
Shares
Held
Value
(000's)
Oil
&
Gas
-
0.10%
EP
Energy
Corp
(d)
2,695
$
234
TOTAL
COMMON
STOCKS
$
234
BONDS
-
57.74%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
1.70%
Boeing
Co/The
1.95%,
02/01/2024
$
1,370
$
1,385
2.20%,
02/04/2026
635
635
2.80%,
03/01/2024
300
308
3.10%,
05/01/2026
190
198
3.75%,
02/01/2050
400
416
4.88%,
05/01/2025
380
416
Bombardier
Inc
7.50%,
03/15/2025
(e)
45
46
TransDigm
Inc
4.88%,
05/01/2029
60
60
6.25%,
03/15/2026
(e)
45
47
7.50%,
03/15/2027
156
163
8.00%,
12/15/2025
(e)
80
84
Triumph
Group
Inc
7.75%,
08/15/2025
60
60
8.88%,
06/01/2024
(e)
178
194
$
4,012
Agriculture
-
0.16%
BAT
Capital
Corp
4.54%,
08/15/2047
120
125
Reynolds
American
Inc
5.70%,
08/15/2035
165
196
5.85%,
08/15/2045
45
55
$
376
Airlines
-
0.72%
American
Airlines
2021-1
Class
B
Pass
Through
Trust
3.95%,
01/11/2032
10
10
American
Airlines
Inc/AAdvantage
Loyalty
IP
Ltd
5.75%,
04/20/2029
(e)
25
27
Delta
Air
Lines
Inc
/
SkyMiles
IP
Ltd
4.50%,
10/20/2025
(e)
992
1,043
Hawaiian
Brand
Intellectual
Property
Ltd
/
HawaiianMiles
Loyalty
Ltd
5.75%,
01/20/2026
(e)
240
251
Southwest
Airlines
Co
4.75%,
05/04/2023
85
89
5.25%,
05/04/2025
255
283
$
1,703
Automobile
Asset
Backed
Securities
-
2.12%
AmeriCredit
Automobile
Receivables
Trust
2020-3
0.42%,
03/18/2024
78
78
AmeriCredit
Automobile
Receivables
Trust
2021-1
0.28%,
06/18/2024
157
157
Capital
One
Prime
Auto
Receivables
Trust
2021-1
0.50%,
02/18/2025
600
598
CarMax
Auto
Owner
Trust
2020-3
0.36%,
06/15/2023
25
25
1.00
x
1
Month
USD
LIBOR
+
0.25%
CarMax
Auto
Owner
Trust
2021-4
0.24%,
11/15/2024
330
329
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Asset
Backed
Securities
(continued)
Carvana
Auto
Receivables
Trust
0.82%,
04/10/2025
$
425
$
425
Carvana
Auto
Receivables
Trust
2021-P3
0.38%,
01/10/2025
305
304
GM
Financial
Consumer
Automobile
Receivables
Trust
2020-3
0.35%,
07/17/2023
87
87
GM
Financial
Consumer
Automobile
Receivables
Trust
2021-4
0.28%,
11/18/2024
475
474
Hyundai
Auto
Receivables
Trust
2020-B
0.38%,
03/15/2023
40
40
Mercedes-Benz
Auto
Lease
Trust
2020-B
0.31%,
02/15/2023
175
175
Nissan
Auto
Lease
Trust
2021-A
0.30%,
12/15/2023
490
489
Santander
Drive
Auto
Receivables
Trust
2021-1
0.29%,
11/15/2023
54
55
Santander
Drive
Auto
Receivables
Trust
2021-2
0.28%,
04/15/2024
275
275
Santander
Drive
Auto
Receivables
Trust
2021-4
0.62%,
08/15/2024
850
849
World
Omni
Auto
Receivables
Trust
2020-C
0.35%,
12/15/2023
280
280
World
Omni
Select
Auto
Trust
2021-A
0.29%,
02/18/2025
380
379
$
5,019
Automobile
Manufacturers
-
2.03%
BMW
US
Capital
LLC
3.80%,
04/06/2023
(e)
305
316
3.90%,
04/09/2025
(e)
550
592
Ford
Motor
Co
3.25%,
02/12/2032
640
655
9.63%,
04/22/2030
25
37
Ford
Motor
Credit
Co
LLC
3.35%,
11/01/2022
290
294
3.38%,
11/13/2025
520
540
4.25%,
09/20/2022
450
458
General
Motors
Co
4.88%,
10/02/2023
665
706
6.25%,
10/02/2043
120
164
6.60%,
04/01/2036
275
372
General
Motors
Financial
Co
Inc
1.20%,
10/15/2024
170
169
1.25%,
01/08/2026
375
367
1.70%,
08/18/2023
135
136
$
4,806
Automobile
Parts
&
Equipment
-
0.17%
Dana
Inc
5.38%,
11/15/2027
60
63
Tenneco
Inc
5.00%,
07/15/2026
60
58
5.13%,
04/15/2029
(e)
25
24
7.88%,
01/15/2029
(e)
225
243
$
388
Banks
-
8.49%
Banco
Mercantil
del
Norte
SA/Grand
Cayman
8.38%,
10/14/2030
(e),(f),(g),(h)
200
230
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
10
Year
+
7.76%
Banco
Santander
SA
3.22%,
11/22/2032
(g)
600
601
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.60%
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
143
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Bank
of
America
Corp
2.48%,
09/21/2036
(g)
$
900
$
872
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.20%
2.68%,
06/19/2041
(g)
680
655
Secured
Overnight
Financing
Rate
+
1.93%
2.69%,
04/22/2032
(g)
735
746
Secured
Overnight
Financing
Rate
+
1.32%
4.20%,
08/26/2024
220
236
Barclays
PLC
2.28%,
11/24/2027
(g)
200
200
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.05%
2.85%,
05/07/2026
(g)
600
619
Secured
Overnight
Financing
Rate
+
2.71%
3.33%,
11/24/2042
(g)
550
560
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.30%
7.75%,
09/15/2023
(f),(g),(h)
400
429
USD
Swap
Semi-Annual
5
Year
+
4.84%
BNP
Paribas
SA
2.16%,
09/15/2029
(e),(g)
490
480
Secured
Overnight
Financing
Rate
+
1.22%
2.22%,
06/09/2026
(e),(g)
400
404
Secured
Overnight
Financing
Rate
+
2.07%
CIT
Group
Inc
5.00%,
08/15/2022
120
123
Citigroup
Inc
3.11%,
04/08/2026
(g)
495
519
Secured
Overnight
Financing
Rate
+
2.84%
Credit
Suisse
AG/New
York
NY
2.95%,
04/09/2025
665
696
Credit
Suisse
Group
AG
2.19%,
06/05/2026
(e),(g)
500
503
Secured
Overnight
Financing
Rate
+
2.04%
5.25%,
02/11/2027
(e),(f),(g),(h)
205
212
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.89%
DBS
Group
Holdings
Ltd
4.52%,
12/11/2028
(e),(g)
315
333
USD
Swap
Rate
NY
5
Year
+
1.59%
Deutsche
Bank
AG
6.00%,
10/30/2025
(f),(g),(h)
240
249
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.52%
Deutsche
Bank
AG/New
York
NY
2.22%,
09/18/2024
(g)
725
734
Secured
Overnight
Financing
Rate
+
2.16%
Goldman
Sachs
Group
Inc/The
3.63%,
02/20/2024
250
262
3.85%,
01/26/2027
160
172
HSBC
Holdings
PLC
2.80%,
05/24/2032
(g)
365
366
Secured
Overnight
Financing
Rate
+
1.19%
4.25%,
03/14/2024
435
459
JPMorgan
Chase
&
Co
2.08%,
04/22/2026
(g)
335
340
Secured
Overnight
Financing
Rate
+
1.85%
Lloyds
Banking
Group
PLC
3.87%,
07/09/2025
(g)
850
898
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
3.50%
Morgan
Stanley
0.99%,
12/10/2026
(g)
1,861
1,805
Secured
Overnight
Financing
Rate
+
0.72%
2.48%,
09/16/2036
(g)
475
457
Secured
Overnight
Financing
Rate
+
1.36%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Morgan
Stanley
(continued)
4.35%,
09/08/2026
$
800
$
884
5.00%,
11/24/2025
330
369
Popular
Inc
6.13%,
09/14/2023
65
69
Santander
UK
Group
Holdings
PLC
1.09%,
03/15/2025
(g)
345
342
Secured
Overnight
Financing
Rate
+
0.79%
2.90%,
03/15/2032
(g)
450
454
Secured
Overnight
Financing
Rate
+
1.48%
Standard
Chartered
PLC
2.68%,
06/29/2032
(e),(g)
700
687
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.20%
2.82%,
01/30/2026
(e),(g)
535
548
3
Month
USD
LIBOR
+
1.21%
6.00%,
07/26/2025
(e),(f),(g),(h)
215
229
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.66%
UniCredit
SpA
1.98%,
06/03/2027
(e),(g)
750
731
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.20%
Wells
Fargo
&
Co
3.75%,
01/24/2024
330
347
4.40%,
06/14/2046
170
201
Westpac
Banking
Corp
4.11%,
07/24/2034
(g)
85
92
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.00%
4.42%,
07/24/2039
815
953
$
20,066
Beverages
-
0.56%
Anheuser-Busch
Cos
LLC
/
Anheuser-Busch
InBev
Worldwide
Inc
3.65%,
02/01/2026
115
123
4.90%,
02/01/2046
455
575
Anheuser-Busch
InBev
Worldwide
Inc
4.38%,
04/15/2038
190
223
5.45%,
01/23/2039
225
294
Central
American
Bottling
Corp
5.75%,
01/31/2027
(e)
95
98
$
1,313
Building
Materials
-
0.56%
Carrier
Global
Corp
2.24%,
02/15/2025
45
46
Cemex
SAB
de
CV
3.88%,
07/11/2031
(e)
325
324
5.20%,
09/17/2030
(e)
200
215
Patrick
Industries
Inc
4.75%,
05/01/2029
(e)
105
104
7.50%,
10/15/2027
(e)
150
160
SRM
Escrow
Issuer
LLC
6.00%,
11/01/2028
(e)
385
411
Summit
Materials
LLC
/
Summit
Materials
Finance
Corp
5.25%,
01/15/2029
(e)
70
73
$
1,333
Chemicals
-
1.06%
Braskem
Netherlands
Finance
BV
4.50%,
01/31/2030
(e)
200
213
Consolidated
Energy
Finance
SA
5.63%,
10/15/2028
(e)
260
254
Ecolab
Inc
2.70%,
12/15/2051
375
368
EI
du
Pont
de
Nemours
and
Co
1.70%,
07/15/2025
120
121
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
144
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Chemicals
(continued)
Element
Solutions
Inc
3.88%,
09/01/2028
(e)
$
326
$
327
Olympus
Water
US
Holding
Corp
4.25%,
10/01/2028
(e)
275
273
Orbia
Advance
Corp
SAB
de
CV
2.88%,
05/11/2031
(e)
350
344
SABIC
Capital
II
BV
4.00%,
10/10/2023
(e)
200
210
Tronox
Inc
6.50%,
05/01/2025
(e)
50
53
Westlake
Chemical
Corp
3.13%,
08/15/2051
360
347
$
2,510
Commercial
Mortgage
Backed
Securities
-
1.94%
Benchmark
2019-B15
Mortgage
Trust
3.56%,
12/15/2072
250
265
Benchmark
2021-B25
Mortgage
Trust
2.58%,
04/15/2054
150
154
Citigroup
Commercial
Mortgage
Trust
2015-GC27
3.57%,
02/10/2048
900
934
Citigroup
Commercial
Mortgage
Trust
2016-GC37
3.58%,
04/10/2049
350
362
GS
Mortgage
Securities
Trust
2011-GC5
0.00%,
08/10/2044
(d),(e),(i),(j)
1,641
—
GS
Mortgage
Securities
Trust
2013-GC16
1.01%,
11/10/2046
(i),(j)
1,806
27
GS
Mortgage
Securities
Trust
2014-GC26
0.95%,
11/10/2047
(i),(j)
3,787
89
GS
Mortgage
Securities
Trust
2015-GC34
3.51%,
10/10/2048
375
397
GS
Mortgage
Securities
Trust
2020-GSA2
2.01%,
12/12/2053
350
343
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2012-LC9
1.39%,
12/15/2047
(i),(j)
1,424
12
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2016-JP3
3.14%,
08/15/2049
500
520
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C24
4.38%,
11/15/2047
(j)
500
483
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2012-C5
1.34%,
08/15/2045
(e),(i),(j)
2,701
7
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C14
0.96%,
02/15/2047
(i),(j)
3,798
58
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C16
0.98%,
06/15/2047
(i),(j)
3,198
55
MSBAM
Commercial
Mortgage
Securities
Trust
2012-CKSV
1.02%,
10/15/2030
(e),(i),(j)
3,412
11
SREIT
Trust
2021-MFP
0.83%,
11/15/2038
(e)
350
348
1.00
x
1
Month
USD
LIBOR
+
0.73%
UBS-Barclays
Commercial
Mortgage
Trust
2012-C4
1.57%,
12/10/2045
(e),(i),(j)
1,103
8
3.32%,
12/10/2045
(e)
500
507
WFRBS
Commercial
Mortgage
Trust
2013-C12
1.09%,
03/15/2048
(e),(i),(j)
1,422
14
$
4,594
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Services
-
0.65%
Ahern
Rentals
Inc
7.38%,
05/15/2023
(e)
$
20
$
19
DP
World
Ltd/United
Arab
Emirates
6.85%,
07/02/2037
100
132
Moody's
Corp
3.10%,
11/29/2061
540
535
Prime
Security
Services
Borrower
LLC
/
Prime
Finance
Inc
3.38%,
08/31/2027
(e)
134
129
6.25%,
01/15/2028
(e)
142
148
United
Rentals
North
America
Inc
3.88%,
02/15/2031
85
86
4.88%,
01/15/2028
169
178
WASH
Multifamily
Acquisition
Inc
5.75%,
04/15/2026
(e)
285
300
$
1,527
Computers
-
0.29
%
Dell
International
LLC
/
EMC
Corp
3.38%,
12/15/2041
(e)
350
346
5.45%,
06/15/2023
68
72
NCR
Corp
5.13%,
04/15/2029
(e)
250
259
$
677
Consumer
Products
-
0.02%
Kronos
Acquisition
Holdings
Inc
/
KIK
Custom
Products
Inc
5.00%,
12/31/2026
(e)
45
44
Diversified
Financial
Services
-
2.58%
AerCap
Holdings
NV
5.88%,
10/10/2079
(g)
150
155
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
1,031
4.50%,
09/15/2023
705
740
Air
Lease
Corp
1.88%,
08/15/2026
465
457
2.88%,
01/15/2026
625
645
3.38%,
07/01/2025
370
386
Ally
Financial
Inc
5.80%,
05/01/2025
210
237
Aviation
Capital
Group
LLC
1.95%,
09/20/2026
(e)
1,000
971
Coinbase
Global
Inc
3.63%,
10/01/2031
(e)
70
65
Credit
Acceptance
Corp
5.13%,
12/31/2024
(e)
30
31
6.63%,
03/15/2026
336
350
Global
Aircraft
Leasing
Co
Ltd
6.50%,
PIK
7.25%;
09/15/2024
(e),(j),(k)
242
234
ILFC
E-Capital
Trust
II
3.67%,
12/21/2065
(e),(j)
100
85
LPL
Holdings
Inc
4.00%,
03/15/2029
(e)
215
220
OneMain
Finance
Corp
4.00%,
09/15/2030
55
54
5.63%,
03/15/2023
75
78
6.63%,
01/15/2028
122
137
6.88%,
03/15/2025
199
221
8.88%,
06/01/2025
5
5
$
6,102
Electric
-
2.65%
Abu
Dhabi
National
Energy
Co
PJSC
4.38%,
06/22/2026
(e)
200
221
Avangrid
Inc
3.20%,
04/15/2025
490
515
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
145
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Clearway
Energy
Operating
LLC
4.75%,
03/15/2028
(e)
$
140
$
147
CMS
Energy
Corp
3.00%,
05/15/2026
75
78
4.70%,
03/31/2043
120
144
Colbun
SA
3.15%,
01/19/2032
(e)
300
297
Commonwealth
Edison
Co
4.00%,
03/01/2049
225
267
DTE
Electric
Co
3.95%,
03/01/2049
60
71
DTE
Energy
Co
1.05%,
06/01/2025
65
64
3.40%,
06/15/2029
262
277
Enel
Chile
SA
4.88%,
06/12/2028
280
309
Entergy
Corp
1.90%,
06/15/2028
424
416
Exelon
Corp
3.50%,
06/01/2022
215
217
NextEra
Energy
Capital
Holdings
Inc
2.75%,
11/01/2029
145
149
3.50%,
04/01/2029
300
322
NextEra
Energy
Operating
Partners
LP
4.25%,
07/15/2024
(e)
30
31
NRG
Energy
Inc
3.88%,
02/15/2032
(e)
560
549
Oryx
Funding
Ltd
5.80%,
02/03/2031
200
211
Pacific
Gas
and
Electric
Co
1.75%,
06/16/2022
735
735
4.20%,
06/01/2041
185
186
Perusahaan
Perseroan
Persero
PT
Perusahaan
Listrik
Negara
3.88%,
07/17/2029
(e)
200
212
PPL
Electric
Utilities
Corp
3.95%,
06/01/2047
85
99
4.75%,
07/15/2043
90
114
Southern
California
Edison
Co
4.20%,
03/01/2029
125
139
4.88%,
03/01/2049
150
183
Tucson
Electric
Power
Co
4.85%,
12/01/2048
25
32
Vistra
Corp
7.00%,
12/15/2026
(e),(f),(g)
90
91
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.74%
Vistra
Operations
Co
LLC
4.38%,
05/01/2029
(e)
195
195
$
6,271
Electrical
Components
&
Equipment
-
0.14%
WESCO
Distribution
Inc
7.13%,
06/15/2025
(e)
90
95
7.25%,
06/15/2028
(e)
213
234
$
329
Electronics
-
0.13%
Imola
Merger
Corp
4.75%,
05/15/2029
(e)
90
92
Sensata
Technologies
BV
5.00%,
10/01/2025
(e)
145
157
Sensata
Technologies
Inc
4.38%,
02/15/2030
(e)
51
54
$
303
Energy
-
Alternate
Sources
-
0.08%
Inversiones
Latin
America
Power
Ltda
5.13%,
06/15/2033
(e)
200
192
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Engineering
&
Construction
-
0.46%
Aeropuerto
Internacional
de
Tocumen
SA
5.13%,
08/11/2061
(e)
$
200
$
209
Global
Infrastructure
Solutions
Inc
5.63%,
06/01/2029
(e)
220
225
IHS
Holding
Ltd
6.25%,
11/29/2028
(e)
200
203
MasTec
Inc
4.50%,
08/15/2028
(e)
238
247
Mexico
City
Airport
Trust
4.25%,
10/31/2026
(e)
200
212
$
1,096
Entertainment
-
0.29%
Boyne
USA
Inc
4.75%,
05/15/2029
(e)
165
170
Caesars
Entertainment
Inc
6.25%,
07/01/2025
(e)
174
183
Peninsula
Pacific
Entertainment
LLC
/
Peninsula
Pacific
Entertainment
Finance
Inc
8.50%,
11/15/2027
(e)
245
264
Scientific
Games
International
Inc
8.63%,
07/01/2025
(e)
70
75
$
692
Environmental
Control
-
0.09%
Madison
IAQ
LLC
4.13%,
06/30/2028
(e)
220
221
Food
-
2.26%
Albertsons
Cos
Inc
/
Safeway
Inc
/
New
Albertsons
LP
/
Albertsons
LLC
4.63%,
01/15/2027
(e)
217
228
Cencosud
SA
4.38%,
07/17/2027
(e)
200
214
Fresh
Market
Inc/The
9.75%,
05/01/2023
(e)
125
129
Gruma
SAB
de
CV
4.88%,
12/01/2024
(e)
350
380
JBS
Finance
Luxembourg
Sarl
3.63%,
01/15/2032
(e)
450
452
Kraft
Heinz
Foods
Co
3.75%,
04/01/2030
57
61
4.38%,
06/01/2046
376
440
MARB
BondCo
PLC
3.95%,
01/29/2031
200
191
Minerva
Luxembourg
SA
4.38%,
03/18/2031
(e)
200
190
Pilgrim's
Pride
Corp
3.50%,
03/01/2032
(e)
60
61
4.25%,
04/15/2031
(e)
1,030
1,081
Post
Holdings
Inc
4.50%,
09/15/2031
(e)
225
223
4.63%,
04/15/2030
(e)
32
33
Sigma
Alimentos
SA
de
CV
4.13%,
05/02/2026
(e)
250
265
Sysco
Corp
3.15%,
12/14/2051
1,020
1,004
3.30%,
07/15/2026
167
178
Want
Want
China
Finance
Ltd
2.88%,
04/27/2022
200
201
$
5,331
Forest
Products
&
Paper
-
0.10%
Mercer
International
Inc
5.13%,
02/01/2029
155
158
Suzano
Austria
GmbH
3.75%,
01/15/2031
75
76
$
234
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
146
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Products
-
0.26%
Boston
Scientific
Corp
3.45%,
03/01/2024
$
290
$
303
4.55%,
03/01/2039
260
311
$
614
Healthcare
-
Services
-
1.40%
Acadia
Healthcare
Co
Inc
5.00%,
04/15/2029
(e)
95
98
Centene
Corp
2.50%,
03/01/2031
155
151
2.63%,
08/01/2031
805
789
3.00%,
10/15/2030
121
123
3.38%,
02/15/2030
167
170
4.25%,
12/15/2027
175
182
CHS/Community
Health
Systems
Inc
6.00%,
01/15/2029
(e)
275
293
8.00%,
03/15/2026
(e)
50
52
HCA
Inc
3.50%,
09/01/2030
294
311
3.50%,
07/15/2051
550
561
5.88%,
05/01/2023
150
159
Legacy
LifePoint
Health
LLC
6.75%,
04/15/2025
(e)
305
318
Tenet
Healthcare
Corp
4.63%,
09/01/2024
(e)
80
82
7.50%,
04/01/2025
(e)
25
26
$
3,315
Home
Builders
-
0.58%
Beazer
Homes
USA
Inc
6.75%,
03/15/2025
105
108
Empire
Communities
Corp
7.00%,
12/15/2025
(e)
185
191
Forestar
Group
Inc
3.85%,
05/15/2026
(e)
65
65
5.00%,
03/01/2028
(e)
190
195
KB
Home
7.63%,
05/15/2023
55
58
Lennar
Corp
4.75%,
05/30/2025
100
109
4.88%,
12/15/2023
80
85
M/I
Homes
Inc
3.95%,
02/15/2030
155
153
Picasso
Finance
Sub
Inc
6.13%,
06/15/2025
(e)
122
127
Toll
Brothers
Finance
Corp
4.35%,
02/15/2028
260
285
$
1,376
Home
Equity
Asset
Backed
Securities
-
0.08%
Saxon
Asset
Securities
Trust
2004-1
1.79%,
03/25/2035
105
71
1.00
x
1
Month
USD
LIBOR
+
1.70%
Specialty
Underwriting
&
Residential
Finance
Trust
Series
2004-BC1
0.87%,
02/25/2035
107
107
1.00
x
1
Month
USD
LIBOR
+
0.77%
$
178
Insurance
-
1.47%
Acrisure
LLC
/
Acrisure
Finance
Inc
4.25%,
02/15/2029
(e)
130
126
7.00%,
11/15/2025
(e)
85
85
AIA
Group
Ltd
3.20%,
09/16/2040
(e)
720
740
American
International
Group
Inc
3.90%,
04/01/2026
70
76
4.50%,
07/16/2044
280
345
Arch
Capital
Finance
LLC
4.01%,
12/15/2026
125
137
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Insurance
(continued)
Arch
Capital
Group
Ltd
3.64%,
06/30/2050
$
375
$
401
Arthur
J
Gallagher
&
Co
3.50%,
05/20/2051
275
290
Athene
Holding
Ltd
3.95%,
05/25/2051
325
351
Markel
Corp
3.35%,
09/17/2029
265
286
4.30%,
11/01/2047
95
110
XLIT
Ltd
4.45%,
03/31/2025
495
537
$
3,484
Internet
-
1.05%
Alibaba
Group
Holding
Ltd
2.13%,
02/09/2031
200
193
Baidu
Inc
4.38%,
05/14/2024
200
213
eBay
Inc
3.65%,
05/10/2051
700
761
Expedia
Group
Inc
3.60%,
12/15/2023
210
218
Netflix
Inc
4.38%,
11/15/2026
462
512
4.88%,
06/15/2030
(e)
85
99
NortonLifeLock
Inc
3.95%,
06/15/2022
65
65
Tencent
Holdings
Ltd
3.98%,
04/11/2029
(e)
275
299
Uber
Technologies
Inc
7.50%,
09/15/2027
(e)
110
120
$
2,480
Investment
Companies
-
0.23%
Compass
Group
Diversified
Holdings
LLC
5.25%,
04/15/2029
(e)
260
272
Icahn
Enterprises
LP
/
Icahn
Enterprises
Finance
Corp
4.75%,
09/15/2024
60
62
MDGH
GMTN
RSC
Ltd
2.50%,
06/03/2031
200
202
$
536
Iron
&
Steel
-
0.83%
Cleveland-Cliffs
Inc
6.75%,
03/15/2026
(e)
265
281
CSN
Inova
Ventures
6.75%,
01/28/2028
(e)
400
421
Metalloinvest
Finance
DAC
3.38%,
10/22/2028
(e)
225
223
Steel
Dynamics
Inc
2.40%,
06/15/2025
145
148
2.80%,
12/15/2024
700
727
Vale
Overseas
Ltd
3.75%,
07/08/2030
155
160
$
1,960
Leisure
Products
&
Services
-
0.26%
Life
Time
Inc
5.75%,
01/15/2026
(e)
305
316
NCL
Corp
Ltd
3.63%,
12/15/2024
(e)
40
38
10.25%,
02/01/2026
(e)
75
87
12.25%,
05/15/2024
(e)
49
58
NCL
Finance
Ltd
6.13%,
03/15/2028
(e)
125
123
$
622
Lodging
-
0.65%
Hilton
Domestic
Operating
Co
Inc
5.75%,
05/01/2028
(e)
227
243
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
147
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Lodging
(continued)
Hyatt
Hotels
Corp
1.80%,
10/01/2024
$
500
$
500
Marriott
International
Inc/MD
2.75%,
10/15/2033
425
412
3.60%,
04/15/2024
300
314
MGM
Resorts
International
6.00%,
03/15/2023
60
63
$
1,532
Machinery
-
Diversified
-
0.11%
Maxim
Crane
Works
Holdings
Capital
LLC
10.13%,
08/01/2024
(e)
109
112
Westinghouse
Air
Brake
Technologies
Corp
3.20%,
06/15/2025
150
156
$
268
Media
-
2.13%
AMC
Networks
Inc
4.75%,
08/01/2025
223
228
Cable
Onda
SA
4.50%,
01/30/2030
200
205
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp
4.50%,
08/15/2030
(e)
255
261
4.75%,
03/01/2030
(e)
234
243
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
3.50%,
06/01/2041
375
366
3.90%,
06/01/2052
370
371
4.46%,
07/23/2022
320
325
4.80%,
03/01/2050
135
151
4.91%,
07/23/2025
620
683
6.48%,
10/23/2045
120
164
CSC
Holdings
LLC
6.50%,
02/01/2029
(e)
208
223
Directv
Financing
LLC
/
Directv
Financing
Co-
Obligor
Inc
5.88%,
08/15/2027
(e)
45
46
DISH
DBS
Corp
5.25%,
12/01/2026
(e)
50
51
5.88%,
11/15/2024
133
137
7.38%,
07/01/2028
182
184
LCPR
Senior
Secured
Financing
DAC
5.13%,
07/15/2029
(e)
225
226
Sirius
XM
Radio
Inc
4.00%,
07/15/2028
(e)
260
261
Time
Warner
Cable
LLC
5.88%,
11/15/2040
135
168
UPC
Holding
BV
5.50%,
01/15/2028
(e)
300
311
ViacomCBS
Inc
4.75%,
05/15/2025
100
110
Ziggo
BV
5.50%,
01/15/2027
(e)
300
308
$
5,022
Mining
-
0.39
%
First
Quantum
Minerals
Ltd
7.25%,
04/01/2023
(e)
200
202
Hudbay
Minerals
Inc
4.50%,
04/01/2026
(e)
160
160
6.13%,
04/01/2029
(e)
30
32
IAMGOLD
Corp
5.75%,
10/15/2028
(e)
142
139
Novelis
Corp
3.25%,
11/15/2026
(e)
100
101
4.75%,
01/30/2030
(e)
234
246
Taseko
Mines
Ltd
7.00%,
02/15/2026
(e)
45
47
$
927
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Miscellaneous
Manufacturers
-
0.19%
GE
Capital
International
Funding
Co
Unlimited
Co
4.42%,
11/15/2035
$
381
$
455
Mortgage
Backed
Securities
-
1.48%
Fannie
Mae
REMIC
Trust
2005-W2
0.30%,
05/25/2035
12
12
1.00
x
1
Month
USD
LIBOR
+
0.20%
Fannie
Mae
REMICS
2.25%,
07/25/2040
31
32
3.00%,
04/25/2022
(i)
5
—
3.00%,
04/25/2027
(i)
97
5
3.00%,
09/25/2050
(i)
1,155
167
3.50%,
11/25/2027
(i)
70
4
3.50%,
07/25/2028
(i)
137
7
3.50%,
03/25/2031
(i)
70
1
6.00%,
02/25/2043
(i)
176
32
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
6.00%,
09/25/2046
(i)
182
31
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
Freddie
Mac
REMICS
0.56%,
05/15/2049
1,257
1,263
1.00
x
1
Month
USD
LIBOR
+
0.45%
3.00%,
03/15/2026
(i)
4
—
3.00%,
05/15/2027
(i)
69
3
3.00%,
10/15/2027
(i)
45
3
Ginnie
Mae
2.00%,
12/20/2050
(i)
1,024
114
2.50%,
10/20/2050
(i)
614
75
2.50%,
12/20/2050
(i)
1,165
156
3.00%,
07/20/2050
(i)
357
42
3.00%,
10/20/2050
(i)
1,060
140
3.00%,
11/20/2050
(i)
668
60
3.00%,
11/20/2050
(i)
1,153
141
3.00%,
11/20/2050
(i)
1,409
183
3.50%,
10/20/2049
(i)
518
69
5.40%,
05/20/2042
(i)
642
106
(1.00)
x
1
Month
USD
LIBOR
+
5.50%
6.00%,
11/20/2041
(i)
188
41
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
6.00%,
06/20/2046
(i)
402
78
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
6.04%,
12/20/2043
(i)
207
40
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
6.10%,
08/20/2047
(i)
1,113
216
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
6.55%,
02/20/2042
(i)
116
28
(1.00)
x
1
Month
USD
LIBOR
+
6.65%
6.98%,
04/20/2041
(i)
714
138
(1.10)
x
1
Month
USD
LIBOR
+
7.10%
HomeBanc
Mortgage
Trust
2005-5
0.78%,
01/25/2036
113
113
1.00
x
1
Month
USD
LIBOR
+
0.68%
JP
Morgan
Mortgage
Trust
2016-2
2.65%,
06/25/2046
(e),(j)
124
122
Sequoia
Mortgage
Trust
2016-3
3.50%,
11/25/2046
(e),(j)
23
23
Washington
Mutual
Mortgage
Pass-Through
Certificates
WMALT
Series
2006-AR1
Trust
0.60%,
02/25/2036
52
45
1.00
x
1
Month
USD
LIBOR
+
0.50%
$
3,490
Office
&
Business
Equipment
-
0.03%
Xerox
Corp
4.38%,
03/15/2023
60
62
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
148
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
-
2.82%
Aethon
United
BR
LP
/
Aethon
United
Finance
Corp
8.25%,
02/15/2026
(e)
$
425
$
457
Antero
Resources
Corp
5.00%,
03/01/2025
60
61
7.63%,
02/01/2029
(e)
205
228
Ascent
Resources
Utica
Holdings
LLC
/
ARU
Finance
Corp
7.00%,
11/01/2026
(e)
315
319
Continental
Resources
Inc/OK
3.80%,
06/01/2024
605
631
CrownRock
LP
/
CrownRock
Finance
Inc
5.63%,
10/15/2025
(e)
90
92
Devon
Energy
Corp
5.25%,
09/15/2024
55
59
Ecopetrol
SA
4.63%,
11/02/2031
180
175
6.88%,
04/29/2030
175
195
Leviathan
Bond
Ltd
5.75%,
06/30/2023
(e)
175
179
MEG
Energy
Corp
7.13%,
02/01/2027
(e)
255
272
Nabors
Industries
Inc
9.00%,
02/01/2025
(e)
60
62
Oasis
Petroleum
Inc
6.38%,
06/01/2026
(e)
315
330
Occidental
Petroleum
Corp
3.40%,
04/15/2026
242
248
4.40%,
04/15/2046
118
121
5.55%,
03/15/2026
85
95
5.88%,
09/01/2025
425
469
6.13%,
01/01/2031
60
73
6.63%,
09/01/2030
41
51
Petrobras
Global
Finance
BV
5.09%,
01/15/2030
200
208
5.50%,
06/10/2051
275
255
Petroleos
Mexicanos
6.70%,
02/16/2032
(e)
767
775
Qatar
Energy
2.25%,
07/12/2031
(e)
200
198
Saudi
Arabian
Oil
Co
1.63%,
11/24/2025
(e)
250
248
Sinopec
Group
Overseas
Development
2017
Ltd
2.50%,
09/13/2022
(e)
325
328
Valero
Energy
Corp
2.85%,
04/15/2025
525
544
$
6,673
Other
Asset
Backed
Securities
-
0.83%
Dell
Equipment
Finance
Trust
2020-2
0.47%,
10/24/2022
(e)
393
393
Dell
Equipment
Finance
Trust
2021-1
0.33%,
05/22/2026
(e)
838
838
John
Deere
Owner
Trust
2020-B
0.41%,
03/15/2023
38
38
Verizon
Owner
Trust
2018-A
3.23%,
04/20/2023
3
3
Verizon
Owner
Trust
2020-B
0.47%,
02/20/2025
430
429
Volvo
Financial
Equipment
LLC
Series
2020-1
0.37%,
04/17/2023
(e)
268
268
$
1,969
Packaging
&
Containers
-
0.41%
Ardagh
Packaging
Finance
PLC
/
Ardagh
Holdings
USA
Inc
5.25%,
08/15/2027
(e)
240
241
Canpack
SA
/
Canpack
US
LLC
3.13%,
11/01/2025
(e)
200
200
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Packaging
&
Containers
(continued)
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
254
306
Flex
Acquisition
Co
Inc
6.88%,
01/15/2025
(e)
90
90
LABL
Inc
5.88%,
11/01/2028
(e)
55
57
$
961
Pharmaceuticals
-
1.15%
Bausch
Health
Americas
Inc
8.50%,
01/31/2027
(e)
85
89
Bristol-Myers
Squibb
Co
4.13%,
06/15/2039
240
284
Cigna
Corp
4.90%,
12/15/2048
35
45
CVS
Health
Corp
4.30%,
03/25/2028
31
35
4.88%,
07/20/2035
190
232
5.05%,
03/25/2048
785
1,026
Jazz
Securities
DAC
4.38%,
01/15/2029
(e)
95
98
Viatris
Inc
1.65%,
06/22/2025
75
75
Zoetis
Inc
3.25%,
02/01/2023
240
245
4.45%,
08/20/2048
345
441
4.70%,
02/01/2043
120
153
$
2,723
Pipelines
-
3.04%
Abu
Dhabi
Crude
Oil
Pipeline
LLC
3.65%,
11/02/2029
(e)
200
220
Antero
Midstream
Partners
LP
/
Antero
Midstream
Finance
Corp
5.38%,
06/15/2029
(e)
175
185
5.75%,
03/01/2027
(e)
155
161
CNX
Midstream
Partners
LP
4.75%,
04/15/2030
(e)
270
269
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp
5.63%,
05/01/2027
(e)
374
381
Energy
Transfer
LP
3.75%,
05/15/2030
505
535
4.50%,
04/15/2024
390
413
5.15%,
03/15/2045
600
678
Enterprise
Products
Operating
LLC
3.13%,
07/31/2029
510
542
3.30%,
02/15/2053
545
542
4.20%,
01/31/2050
180
202
EQM
Midstream
Partners
LP
6.00%,
07/01/2025
(e)
85
92
Hess
Midstream
Operations
LP
4.25%,
02/15/2030
(e)
270
268
5.63%,
02/15/2026
(e)
60
62
Kinder
Morgan
Inc
1.75%,
11/15/2026
440
438
NuStar
Logistics
LP
5.75%,
10/01/2025
55
59
Sabine
Pass
Liquefaction
LLC
5.00%,
03/15/2027
175
196
5.75%,
05/15/2024
375
408
Targa
Resources
Partners
LP
/
Targa
Resources
Partners
Finance
Corp
4.88%,
02/01/2031
645
700
5.88%,
04/15/2026
101
105
6.50%,
07/15/2027
135
145
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
149
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pipelines
(continued)
Williams
Cos
Inc/The
4.55%,
06/24/2024
$
550
$
589
$
7,190
REITs
-
1.83%
American
Tower
Corp
1.30%,
09/15/2025
185
182
Cibanco
SA
Ibm
/
PLA
Administradora
Industrial
S
de
RL
de
CV
4.96%,
07/18/2029
(e)
200
216
CyrusOne
LP
/
CyrusOne
Finance
Corp
2.90%,
11/15/2024
295
304
HAT
Holdings
I
LLC
/
HAT
Holdings
II
LLC
3.75%,
09/15/2030
(e)
160
160
6.00%,
04/15/2025
(e)
171
178
Invitation
Homes
Operating
Partnership
LP
2.00%,
08/15/2031
500
471
2.30%,
11/15/2028
495
490
Ladder
Capital
Finance
Holdings
LLLP
/
Ladder
Capital
Finance
Corp
4.75%,
06/15/2029
(e)
243
249
Mid-America
Apartments
LP
2.88%,
09/15/2051
229
225
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp
3.50%,
03/15/2031
560
566
VICI
Properties
LP
/
VICI
Note
Co
Inc
3.50%,
02/15/2025
(e)
55
56
4.13%,
08/15/2030
(e),(l)
1,007
1,065
XHR
LP
4.88%,
06/01/2029
(e)
160
163
$
4,325
Retail
-
0.28%
At
Home
Group
Inc
4.88%,
07/15/2028
(e)
95
93
Bath
&
Body
Works
Inc
5.25%,
02/01/2028
65
72
6.63%,
10/01/2030
(e)
114
129
9.38%,
07/01/2025
(e)
53
65
IRB
Holding
Corp
7.00%,
06/15/2025
(e)
15
16
LSF9
Atlantis
Holdings
LLC
/
Victra
Finance
Corp
7.75%,
02/15/2026
(e)
255
258
Macy's
Retail
Holdings
LLC
2.88%,
02/15/2023
32
32
$
665
Semiconductors
-
0.80%
Broadcom
Inc
3.14%,
11/15/2035
(e)
63
64
3.42%,
04/15/2033
(e)
732
767
NVIDIA
Corp
3.50%,
04/01/2050
150
171
NXP
BV
/
NXP
Funding
LLC
4.63%,
06/01/2023
(e)
400
419
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA
Inc
2.70%,
05/01/2025
(e)
60
62
3.15%,
05/01/2027
(e)
60
63
Skyworks
Solutions
Inc
1.80%,
06/01/2026
85
84
TSMC
Arizona
Corp
2.50%,
10/25/2031
250
253
$
1,883
Software
-
1.03%
Activision
Blizzard
Inc
3.40%,
09/15/2026
250
267
Fiserv
Inc
4.40%,
07/01/2049
190
226
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Software
(continued)
Open
Text
Corp
3.88%,
02/15/2028
(e)
$
130
$
133
3.88%,
12/01/2029
(e)
385
390
Open
Text
Holdings
Inc
4.13%,
02/15/2030
(e)
295
304
Oracle
Corp
2.50%,
04/01/2025
255
261
2.80%,
04/01/2027
240
247
2.95%,
05/15/2025
100
104
3.95%,
03/25/2051
230
239
salesforce.com
Inc
3.70%,
04/11/2028
230
255
$
2,426
Sovereign
-
2.86%
Brazilian
Government
International
Bond
3.75%,
09/12/2031
365
343
3.88%,
06/12/2030
225
218
Chile
Government
International
Bond
2.55%,
07/27/2033
200
194
CoBank
ACB
6.25%,
10/01/2026
(f),(g)
115
130
3
Month
USD
LIBOR
+
4.66%
Colombia
Government
International
Bond
3.13%,
04/15/2031
400
359
Dominican
Republic
International
Bond
4.88%,
09/23/2032
(e)
400
406
5.30%,
01/21/2041
(e)
200
198
Egypt
Government
International
Bond
5.25%,
10/06/2025
(e)
200
202
5.80%,
09/30/2027
(e)
425
408
Ghana
Government
International
Bond
7.75%,
04/07/2029
(e)
200
167
Guatemala
Government
Bond
4.50%,
05/03/2026
200
210
Hungary
Government
International
Bond
3.13%,
09/21/2051
(e)
200
197
Mexico
Government
International
Bond
4.75%,
03/08/2044
280
305
5.00%,
04/27/2051
200
227
Nigeria
Government
International
Bond
7.38%,
09/28/2033
(e)
325
309
Panama
Government
International
Bond
3.88%,
03/17/2028
200
216
Qatar
Government
International
Bond
4.63%,
06/02/2046
200
253
Russian
Foreign
Bond
-
Eurobond
5.10%,
03/28/2035
(e)
400
472
Saudi
Government
International
Bond
4.00%,
04/17/2025
(e)
275
296
4.50%,
10/26/2046
450
527
Turkey
Government
International
Bond
6.13%,
10/24/2028
300
279
6.38%,
10/14/2025
250
244
UAE
International
Government
Bond
3.25%,
10/19/2061
(e)
275
286
Ukraine
Government
International
Bond
7.25%,
03/15/2033
(e)
200
176
Uruguay
Government
International
Bond
5.10%,
06/18/2050
110
145
$
6,767
Telecommunications
-
2.25%
AT&T
Inc
2.55%,
12/01/2033
199
195
3.50%,
09/15/2053
954
962
Axtel
SAB
de
CV
6.38%,
11/14/2024
200
206
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
150
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
CommScope
Inc
8.25%,
03/01/2027
(e)
$
50
$
51
Embarq
Corp
8.00%,
06/01/2036
47
53
Empresa
Nacional
de
Telecomunicaciones
SA
3.05%,
09/14/2032
(e),(l)
200
197
Ooredoo
International
Finance
Ltd
3.88%,
01/31/2028
250
275
Sprint
Communications
Inc
6.00%,
11/15/2022
75
78
Sprint
Corp
7.63%,
03/01/2026
121
145
7.88%,
09/15/2023
75
83
T-Mobile
USA
Inc
2.40%,
03/15/2029
(e)
340
343
3.50%,
04/15/2025
315
334
3.50%,
04/15/2031
560
583
4.00%,
04/15/2022
125
126
VEON
Holdings
BV
3.38%,
11/25/2027
(e)
400
390
Verizon
Communications
Inc
2.88%,
11/20/2050
190
180
3.55%,
03/22/2051
940
1,012
Viavi
Solutions
Inc
3.75%,
10/01/2029
(e)
105
105
$
5,318
Transportation
-
0.05%
Eletson
Holdings
Inc
/
Eletson
Finance
US
LLC
/
Agathonissos
Finance
LLC
0.00%,
01/15/2022
(d),(m)
121
7
Navios
Maritime
Holdings
Inc
/
Navios
Maritime
Finance
II
US
Inc
7.38%,
01/15/2022
(e)
65
65
Navios
South
American
Logistics
Inc
/
Navios
Logistics
Finance
US
Inc
10.75%,
07/01/2025
(e)
46
48
$
120
TOTAL
BONDS
$
136,480
SENIOR
FLOATING
RATE
INTERESTS
-
1.63%
Principal
Amount
(000's)
Value
(000's)
Airlines
-
0.19%
AAdvantage
Loyalty
IP
Ltd
5.50%,
04/20/2028
(n)
$
225
$
233
1
Month
USD
LIBOR
+
4.75%
United
Airlines
Inc
4.51%,
04/14/2028
(n)
223
223
1
Month
USD
LIBOR
+
3.75%
$
456
Commercial
Services
-
0.11%
Garda
World
Security
Corp
4.36%,
10/30/2026
(n)
255
254
1
Month
USD
LIBOR
+
4.25%
Consumer
Products
-
0.06%
Kronos
Acquisition
Holdings
Inc
4.26%,
12/22/2026
(n)
138
134
1
Month
USD
LIBOR
+
3.75%
Diversified
Financial
Services
-
0.19%
Russell
Investments
US
Institutional
Holdco
Inc
4.00%,
05/30/2025
(n)
463
463
1
Month
USD
LIBOR
+
3.50%
Electronics
-
0.04%
Ingram
Micro
Inc
4.00%,
06/30/2028
(n)
90
90
1
Month
USD
LIBOR
+
3.50%
SENIOR
FLOATING
RATE
INTERESTS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Entertainment
-
0.10%
Enterprise
Development
Authority/The
5.00%,
02/18/2028
(n)
$
188
$
187
1
Month
USD
LIBOR
+
4.25%
Lions
Gate
Capital
Holdings
LLC
2.35%,
03/24/2025
(n)
48
48
3
Month
USD
LIBOR
+
2.00%
$
235
Environmental
Control
-
0.02%
Madison
IAQ
LLC
3.75%,
06/21/2028
(n)
50
50
1
Month
USD
LIBOR
+
3.25%
Food
-
0.02%
Bellring
Brands
LLC
4.75%,
10/21/2024
(n)
41
41
1
Month
USD
LIBOR
+
4.00%
Healthcare
-
Products
-
0.06%
Mozart
Borrower
LP
3.75%,
09/30/2028
(n)
135
135
1
Month
USD
LIBOR
+
3.25%
Insurance
-
0.18%
Acrisure
LLC
3.72%,
02/15/2027
(n)
144
142
1
Month
USD
LIBOR
+
3.50%
AssuredPartners
Inc
4.00%,
02/12/2027
(n)
128
128
1
Month
USD
LIBOR
+
3.50%
Asurion
LLC
3.23%,
11/03/2023
(n)
49
48
1
Month
USD
LIBOR
+
7.25%
5.35%,
01/31/2028
(n)
100
100
1
Month
USD
LIBOR
+
5.25%
$
418
Lodging
-
0.02%
Golden
Nugget
LLC
3.25%,
10/04/2023
(n)
61
61
1
Month
USD
LIBOR
+
2.50%
Media
-
0.13%
CSC
Holdings
LLC
2.61%,
04/15/2027
(n)
49
48
1
Month
USD
LIBOR
+
2.50%
Directv
Financing
LLC
5.75%,
07/22/2027
(n)
269
269
1
Month
USD
LIBOR
+
5.00%
$
317
Oil
&
Gas
-
0.01%
Ascent
Resources
Utica
Holdings
LLC
10.00%,
11/01/2025
(n)
20
21
1
Month
USD
LIBOR
+
9.00%
Packaging
&
Containers
-
0.12%
LABL
Inc
5.00%,
10/22/2028
(n)
50
50
1
Month
USD
LIBOR
+
5.00%
Valcour
Packaging
LLC
4.25%,
09/30/2028
(n)
235
235
1
Month
USD
LIBOR
+
3.75%
$
285
Pharmaceuticals
-
0.18%
Bausch
Health
Americas
Inc
3.10%,
06/01/2025
(n)
256
255
3
Month
USD
LIBOR
+
7.50%
Endo
Luxembourg
Finance
Co
I
Sarl
5.75%,
03/27/2028
(n)
27
26
1
Month
USD
LIBOR
+
5.00%
Jazz
Financing
Lux
Sarl
4.00%,
05/05/2028
(n)
150
150
1
Month
USD
LIBOR
+
3.50%
$
431
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
151
SENIOR
FLOATING
RATE
INTERESTS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Retail
-
0.20%
At
Home
Group
Inc
4.75%,
06/24/2028
(n)
$
115
$
115
1
Month
USD
LIBOR
+
4.25%
IRB
Holding
Corp
3.75%,
02/05/2025
(n)
183
183
1
Month
USD
LIBOR
+
2.75%
4.25%,
12/15/2027
(n)
173
173
1
Month
USD
LIBOR
+
3.25%
$
471
TOTAL
SENIOR
FLOATING
RATE
INTERESTS
$
3,862
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
42.38%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
1.79%
2.00%,
02/01/2037
$
5
$
5
1.00
x
12
Month
USD
LIBOR
+
1.63%
3.00%,
10/01/2042
30
32
3.00%,
11/01/2042
177
187
3.00%,
11/01/2042
31
33
3.00%,
03/01/2043
868
925
3.00%,
12/01/2046
64
67
3.50%,
10/01/2041
18
19
3.50%,
04/01/2042
57
62
3.50%,
04/01/2042
24
26
3.50%,
04/01/2045
27
29
3.50%,
10/01/2045
467
503
3.50%,
03/01/2048
69
74
4.00%,
02/01/2045
9
9
4.00%,
02/01/2046
43
48
4.00%,
02/01/2046
163
178
4.00%,
06/01/2046
30
32
4.00%,
04/01/2047
164
178
4.00%,
11/01/2047
208
224
4.50%,
07/01/2024
4
4
4.50%,
10/01/2041
18
20
4.50%,
12/01/2043
483
533
4.50%,
03/01/2046
185
205
5.00%,
06/01/2031
45
49
5.00%,
10/01/2035
18
20
5.00%,
06/01/2041
543
615
6.00%,
06/01/2032
12
14
6.00%,
10/01/2032
7
8
6.00%,
01/01/2038
33
39
6.50%,
03/01/2029
2
2
6.50%,
05/01/2029
3
3
6.50%,
04/01/2031
1
1
6.50%,
02/01/2032
3
3
6.50%,
05/01/2032
2
3
6.50%,
04/01/2035
5
6
7.00%,
12/01/2029
6
6
7.00%,
06/01/2030
3
3
7.00%,
01/01/2031
1
1
7.00%,
12/01/2031
26
26
7.50%,
04/01/2030
1
1
7.50%,
03/01/2031
5
6
8.00%,
09/01/2030
28
29
$
4,228
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
16.65%
2.00%,
12/01/2035
522
535
2.00%,
01/01/2037
(o)
2,450
2,509
2.00%,
01/01/2051
1,262
1,275
2.00%,
02/01/2051
4,316
4,332
2.00%,
03/01/2051
1,362
1,365
2.00%,
03/01/2051
1,613
1,625
2.00%,
12/01/2051
600
604
2.50%,
06/01/2035
1,227
1,269
2.50%,
08/01/2035
1,450
1,512
2.50%,
01/01/2037
(o)
700
723
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%,
08/01/2050
$
1,753
$
1,799
2.50%,
07/01/2051
1,262
1,300
2.50%,
01/01/2052
(o)
6,210
6,336
3.00%,
03/01/2034
152
160
3.00%,
03/01/2042
43
45
3.00%,
03/01/2042
41
43
3.00%,
05/01/2042
23
25
3.00%,
06/01/2042
40
42
3.00%,
06/01/2042
19
21
3.00%,
05/01/2043
105
110
3.00%,
07/01/2050
607
635
3.00%,
07/01/2051
2,381
2,481
3.50%,
04/01/2030
192
203
3.50%,
05/01/2034
790
848
3.50%,
08/01/2034
162
172
3.50%,
12/01/2040
34
37
3.50%,
01/01/2041
18
19
3.50%,
12/01/2041
9
9
3.50%,
03/01/2042
17
19
3.50%,
04/01/2042
38
41
3.50%,
11/01/2042
718
783
3.50%,
02/01/2043
28
30
3.50%,
07/01/2043
491
530
3.50%,
01/01/2044
155
167
3.50%,
11/01/2044
834
898
3.50%,
03/01/2045
29
31
3.50%,
06/01/2045
55
59
3.50%,
11/01/2045
30
33
3.50%,
05/01/2046
17
18
3.50%,
10/01/2047
927
1,004
3.50%,
11/01/2047
384
413
3.50%,
03/01/2048
555
598
4.00%,
03/01/2034
219
240
4.00%,
09/01/2040
42
46
4.00%,
05/01/2041
94
104
4.00%,
10/01/2041
26
28
4.00%,
10/01/2041
13
14
4.00%,
11/01/2041
21
23
4.00%,
04/01/2042
15
16
4.00%,
11/01/2043
57
63
4.00%,
11/01/2043
16
18
4.00%,
02/01/2044
65
71
4.00%,
06/01/2044
139
152
4.00%,
09/01/2044
12
13
4.00%,
09/01/2045
58
62
4.00%,
12/01/2045
276
299
4.00%,
08/01/2046
41
45
4.00%,
01/01/2047
23
25
4.00%,
11/01/2047
858
929
4.00%,
05/01/2048
56
60
4.00%,
10/01/2048
175
190
4.00%,
01/01/2049
83
88
4.50%,
07/01/2025
13
14
4.50%,
08/01/2040
23
25
4.50%,
11/01/2040
472
521
4.50%,
12/01/2040
18
20
4.50%,
08/01/2041
15
17
4.50%,
09/01/2041
151
167
4.50%,
05/01/2044
19
21
4.50%,
12/01/2044
38
41
4.50%,
06/01/2046
17
18
4.50%,
05/01/2047
12
13
4.50%,
05/01/2047
31
34
4.50%,
05/01/2049
123
133
5.00%,
10/01/2041
91
102
5.00%,
06/01/2048
217
243
5.50%,
12/01/2022
2
2
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
152
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%,
07/01/2033
$
108
$
120
5.50%,
04/01/2035
21
23
5.50%,
08/01/2036
309
353
5.50%,
02/01/2037
2
3
5.50%,
05/01/2040
12
13
6.00%,
05/01/2031
1
1
6.00%,
07/01/2035
86
99
6.00%,
02/01/2037
23
25
6.00%,
02/01/2038
32
37
6.50%,
03/01/2032
1
1
6.50%,
07/01/2037
22
25
6.50%,
07/01/2037
12
14
6.50%,
02/01/2038
25
28
6.50%,
09/01/2038
88
104
$
39,361
Government
National
Mortgage
Association
(GNMA)
-
4.74%
2.00%,
01/01/2052
1,775
1,791
2.50%,
01/01/2052
3,450
3,533
3.00%,
02/15/2043
188
198
3.00%,
07/20/2044
222
233
3.00%,
01/20/2046
147
154
3.00%,
07/20/2046
226
236
3.00%,
12/20/2046
643
671
3.00%,
01/01/2052
1,000
1,035
3.50%,
04/20/2046
121
130
3.50%,
10/20/2046
174
184
3.50%,
07/20/2047
613
654
4.00%,
02/15/2042
63
70
4.00%,
06/20/2046
22
24
4.00%,
01/20/2048
859
929
4.50%,
09/15/2039
366
419
4.50%,
11/15/2040
58
66
4.50%,
06/20/2048
5
5
5.00%,
02/15/2034
125
145
5.00%,
10/15/2034
44
51
5.00%,
10/20/2039
21
23
5.00%,
07/20/2040
10
11
5.00%,
02/15/2042
54
62
5.50%,
12/20/2033
62
71
5.50%,
05/20/2035
7
8
5.50%,
12/20/2048
179
194
6.00%,
01/20/2029
11
12
6.00%,
07/20/2029
2
2
6.00%,
12/15/2033
9
10
6.00%,
12/20/2036
35
40
6.50%,
03/20/2028
2
2
6.50%,
05/20/2029
2
2
6.50%,
12/15/2032
203
225
7.00%,
03/15/2031
1
1
8.00%,
12/15/2030
4
4
$
11,195
U.S.
Treasury
-
11.38%
0.38%,
01/31/2026
700
677
1.63%,
08/15/2029
1,100
1,116
1.75%,
04/30/2022
2,300
2,312
1.75%,
06/15/2022
4,000
4,029
1.75%,
08/15/2041
1,050
1,018
2.00%,
08/15/2051
(p)
3,740
3,812
2.25%,
11/15/2027
1,000
1,050
3.00%,
05/15/2045
1,140
1,364
3.00%,
11/15/2045
(q)
2,750
3,304
3.13%,
05/15/2048
3,210
4,012
3.75%,
11/15/2043
1,650
2,182
4.75%,
02/15/2037
1,435
2,035
$
26,911
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
Bill
-
7.82%
0.04%,
03/17/2022
(r)
$
14,000
$
13,998
0.09%,
05/05/2022
(r)
4,500
4,499
$
18,497
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
100,192
Total
Investments
$
252,088
Other
Assets
and
Liabilities
- (6.64)%
(15,706)
TOTAL
NET
ASSETS
-
100.00%
$
236,382
(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
$142
or
0.06%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
$46,519
or
19.68%
of
net
assets.
(f)
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.
(g)
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.
(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".
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,349
or
0.57%
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)
Security
or
a
portion
of
the
security
was
on
loan. At
the
end
of
the
period,
the
value
of
these
securities
totaled
$137
or
0.06%
of
net
assets.
(m)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs,
in
good
faith
by
the
Manager,
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
(n)
Rate
information
disclosed
is
based
on
an
average
weighted
rate
of
the
underlying
tranches
as
of
period
end.
(o)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction.
(p)
Security
or
a
portion
of
the
security
was
pledged
to
cover
margin
requirements
for
swap
and/or
swaption
contracts.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$408
or
0.17%
of
net
assets.
(q)
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
$264
or
0.11%
of
net
assets.
(r)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2021
See
accompanying
notes.
153
Portfolio
Summary (unaudited)
Sector
Percent
Mortgage
Securities
26.60%
Government
22.06%
Financial
14.97%
Consumer,
Non-cyclical
6.89%
Energy
6.05%
Communications
5.56%
Consumer,
Cyclical
5.49%
Money
Market
Funds
4.79%
Industrial
4.02%
Asset
Backed
Securities
3.03%
Utilities
2.65%
Basic
Materials
2.38%
Technology
2.15%
Other
Assets
and
Liabilities
(6.64)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
10,172
$
287,523
$
286,517
$
11,178
$
10,172
$
287,523
$
286,517
$
11,178
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
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
2022
Short
30
$
3,914
$
19
US
2
Year
Note;
March
2022
Short
10
2,182
5
US
5
Year
Note;
March
2022
Long
51
6,170
(6)
US
Long
Bond;
March
2022
Long
2
321
2
Total
$
20
Amounts
in
thousands
except
contracts.
Exchange
Cleared
Credit
Default
Swaps
Buy
Protection
Reference
Entity
Implied
Credit
Spread
as
of
December
31,
2021
(a)
(Pay)/
Receive
Fixed
Rate
Payment
Frequency
Maturity
Date
Notional
Amount
Upfront
Payments/
(Receipts)
Unrealized
Appreciation/
(Depreciation)
Fair
Value
CDX.EM.36.100
N/A
(1.00)%
Quarterly
12/20/2026
$
8,240
$
339
$
(6)
$
333
Total
$
339
$
(6)
$
333
Amounts
in
thousands.
(a)
Implied
credit
spreads,
represented
in
absolute
terms,
used
in
determining
the
market
value
of
credit
default
swap
agreements
on
corporate
issues
or
sovereign
issues
as
of
period
end
serve
as
an
indicator
of
the
current
status
of
the
payment/performance
risk
and
represent
the
likelihood
or
risk
of
default
for
the
credit
derivative.
The
implied
credit
spread
of
a
particular
referenced
entity
reflects
the
cost
of
buying/selling
protection
and
may
include
upfront
payments
required
to
be
made
to
enter
into
the
agreement.
Wider
credit
spreads
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.
Schedule
of
Investments
Diversified
Balanced
Account
December
31,
2021
See
accompanying
notes.
154
INVESTMENT
COMPANIES
-
100
.03
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
15
.25
%
International
Equity
Index
Fund
(a)
6,056,534
$
71,164
MidCap
S&P
400
Index
Fund
(a)
1,684,737
41,040
SmallCap
S&P
600
Index
Fund
(a)
1,323,239
41,100
$
153,304
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
84
.78
%
Bond
Market
Index
Account
(a)
46,355,032
498,779
LargeCap
S&P
500
Index
Account
(a)
13,843,093
353,415
$
852,194
TOTAL
INVESTMENT
COMPANIES
$
1,005,498
Total
Investments
$
1,005,498
Other
Assets
and
Liabilities
- (0.03)%
(
254
)
TOTAL
NET
ASSETS
-
100.00%
$
1,005,244
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
.62
%
Domestic
Equity
Funds
43
.33
%
International
Equity
Funds
7
.08
%
Other
Assets
and
Liabilities
(
0
.03
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
505,059
$
82,242
$
67,856
$
498,779
International
Equity
Index
Fund
72,147
9,490
14,528
71,164
LargeCap
S&P
500
Index
Account
358,328
37,938
99,410
353,415
MidCap
S&P
400
Index
Fund
43,453
7,301
15,814
41,040
SmallCap
S&P
600
Index
Fund
41,548
8,224
15,277
41,100
$
1,020,535
$
145,195
$
212,885
$
1,005,498
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
10,609
$
(
100
)
$
788
$
(
20,566
)
International
Equity
Index
Fund
2,241
875
1,291
3,180
LargeCap
S&P
500
Index
Account
5,643
38,296
27,681
18,263
MidCap
S&P
400
Index
Fund
1,145
4,040
2,131
2,060
SmallCap
S&P
600
Index
Fund
1,034
5,699
2,411
906
$
20,672
$
48,810
$
34,302
$
3,843
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Balanced
Managed
Volatility
Account
December
31,
2021
See
accompanying
notes.
155
INVESTMENT
COMPANIES
-
100
.03
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
15
.26
%
International
Equity
Index
Fund
(a)
1,109,584
$
13,037
MidCap
S&P
400
Index
Fund
(a)
308,623
7,518
SmallCap
S&P
600
Index
Fund
(a)
242,397
7,529
$
28,084
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
84
.77
%
Bond
Market
Index
Account
(a)
8,493,688
91,392
LargeCap
S&P
500
Managed
Volatility
Index
Account
(a)
3,427,657
64,646
$
156,038
TOTAL
INVESTMENT
COMPANIES
$
184,122
Total
Investments
$
184,122
Other
Assets
and
Liabilities
- (0.03)%
(
51
)
TOTAL
NET
ASSETS
-
100.00%
$
184,071
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
.65
%
Domestic
Equity
Funds
43
.30
%
International
Equity
Funds
7
.08
%
Other
Assets
and
Liabilities
(
0
.03
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
91,710
$
18,181
$
14,744
$
91,392
International
Equity
Index
Fund
13,099
2,234
3,034
13,037
LargeCap
S&P
500
Managed
Volatility
Index
Account
64,965
10,853
18,873
64,646
MidCap
S&P
400
Index
Fund
7,885
1,630
3,103
7,518
SmallCap
S&P
600
Index
Fund
7,543
1,804
3,013
7,529
$
185,202
$
34,702
$
42,767
$
184,122
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
1,939
$
(
28
)
$
144
$
(
3,727
)
International
Equity
Index
Fund
409
159
236
579
LargeCap
S&P
500
Managed
Volatility
Index
Account
1,985
4,265
5,272
3,436
MidCap
S&P
400
Index
Fund
209
364
389
742
SmallCap
S&P
600
Index
Fund
189
449
441
746
$
4,731
$
5,209
$
6,482
$
1,776
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Balanced
Volatility
Control
Account
December
31,
2021
See
accompanying
notes.
156
INVESTMENT
COMPANIES
-
100
.05
%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
14
.16
%
iShares
Core
S&P
500
ETF
68,235
$
32,548
Money
Market
Funds
-
5
.94
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
13,644,812
13,645
Principal
Funds,
Inc.
Class
R-6
-
15
.25
%
International
Equity
Index
Fund
(a)
1,384,608
16,269
MidCap
S&P
400
Index
Fund
(a)
385,143
9,382
SmallCap
S&P
600
Index
Fund
(a)
302,480
9,395
$
35,046
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
64
.70
%
Bond
Market
Index
Account
(a)
10,598,753
114,043
LargeCap
S&P
500
Index
Account
(a)
1,356,413
34,629
$
148,672
TOTAL
INVESTMENT
COMPANIES
$
229,911
Total
Investments
$
229,911
Other
Assets
and
Liabilities
- (0.05)%
(
113
)
TOTAL
NET
ASSETS
-
100.00%
$
229,798
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
.63
%
Domestic
Equity
Funds
23
.24
%
Investment
Companies
14
.16
%
International
Equity
Funds
7
.08
%
Money
Market
Funds
5
.94
%
Other
Assets
and
Liabilities
(
0
.05
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
91,650
$
31,236
$
4,726
$
114,043
International
Equity
Index
Fund
12,904
4,236
1,540
16,269
LargeCap
S&P
500
Index
Account
27,748
8,035
5,934
34,629
MidCap
S&P
400
Index
Fund
7,812
2,695
2,206
9,382
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
16
83,320
69,691
13,645
SmallCap
S&P
600
Index
Fund
7,467
3,095
2,300
9,395
$
147,597
$
132,617
$
86,397
$
197,363
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
2,263
$
—
$
168
$
(
4,117
)
International
Equity
Index
Fund
510
14
292
655
LargeCap
S&P
500
Index
Account
516
221
2,530
4,559
MidCap
S&P
400
Index
Fund
259
57
481
1,024
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
—
—
—
—
SmallCap
S&P
600
Index
Fund
234
53
545
1,080
$
3,782
$
345
$
4,016
$
3,201
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Growth
Account
December
31,
2021
See
accompanying
notes.
157
INVESTMENT
COMPANIES
-
100
.03
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
20
.28
%
International
Equity
Index
Fund
(a)
34,128,568
$
401,011
MidCap
S&P
400
Index
Fund
(a)
8,306,952
202,357
SmallCap
S&P
600
Index
Fund
(a)
6,524,508
202,651
$
806,019
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
79
.75
%
Bond
Market
Index
Account
(a)
127,985,833
1,377,128
LargeCap
S&P
500
Index
Account
(a)
70,205,088
1,792,336
$
3,169,464
TOTAL
INVESTMENT
COMPANIES
$
3,975,483
Total
Investments
$
3,975,483
Other
Assets
and
Liabilities
- (0.03)%
(
1,027
)
TOTAL
NET
ASSETS
-
100.00%
$
3,974,456
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
.29
%
Fixed
Income
Funds
34
.65
%
International
Equity
Funds
10
.09
%
Other
Assets
and
Liabilities
(
0
.03
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
1,331,210
$
265,754
$
164,304
$
1,377,128
International
Equity
Index
Fund
388,104
55,340
63,866
401,011
LargeCap
S&P
500
Index
Account
1,734,766
180,045
401,017
1,792,336
MidCap
S&P
400
Index
Fund
204,469
35,123
65,790
202,357
SmallCap
S&P
600
Index
Fund
195,539
39,658
63,281
202,651
$
3,854,088
$
575,920
$
758,258
$
3,975,483
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
28,992
$
(
294
)
$
2,154
$
(
55,238
)
International
Equity
Index
Fund
12,646
1,615
7,282
19,818
LargeCap
S&P
500
Index
Account
28,329
118,631
138,930
159,911
MidCap
S&P
400
Index
Fund
5,651
11,085
10,516
17,470
SmallCap
S&P
600
Index
Fund
5,106
14,708
11,902
16,027
$
80,724
$
145,745
$
170,784
$
157,988
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Growth
Managed
Volatility
Account
December
31,
2021
See
accompanying
notes.
158
INVESTMENT
COMPANIES
-
100
.03
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
20
.30
%
International
Equity
Index
Fund
(a)
3,342,075
$
39,269
MidCap
S&P
400
Index
Fund
(a)
813,465
19,816
SmallCap
S&P
600
Index
Fund
(a)
638,915
19,845
$
78,930
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
79
.73
%
Bond
Market
Index
Account
(a)
12,533,120
134,856
LargeCap
S&P
500
Managed
Volatility
Index
Account
(a)
9,291,727
175,242
$
310,098
TOTAL
INVESTMENT
COMPANIES
$
389,028
Total
Investments
$
389,028
Other
Assets
and
Liabilities
- (0.03)%
(
104
)
TOTAL
NET
ASSETS
-
100.00%
$
388,924
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
.26
%
Fixed
Income
Funds
34
.67
%
International
Equity
Funds
10
.10
%
Other
Assets
and
Liabilities
(
0
.03
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
130,772
$
28,064
$
18,551
$
134,856
International
Equity
Index
Fund
38,125
6,170
7,173
39,269
LargeCap
S&P
500
Managed
Volatility
Index
Account
170,159
25,007
40,413
175,242
MidCap
S&P
400
Index
Fund
20,086
3,858
6,948
19,816
SmallCap
S&P
600
Index
Fund
19,208
4,315
6,704
19,845
$
378,350
$
67,414
$
79,789
$
389,028
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
2,849
$
(
24
)
$
212
$
(
5,405
)
International
Equity
Index
Fund
1,238
395
713
1,752
LargeCap
S&P
500
Managed
Volatility
Index
Account
5,357
9,383
14,222
11,106
MidCap
S&P
400
Index
Fund
553
769
1,030
2,051
SmallCap
S&P
600
Index
Fund
500
973
1,165
2,053
$
10,497
$
11,496
$
17,342
$
11,557
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Growth
Volatility
Control
Account
December
31,
2021
See
accompanying
notes.
159
INVESTMENT
COMPANIES
-
100
.10
%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
12
.35
%
iShares
Core
S&P
500
ETF
330,769
$
157,774
Money
Market
Funds
-
7
.74
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
98,839,265
98,839
Principal
Funds,
Inc.
Class
R-6
-
20
.28
%
International
Equity
Index
Fund
(a)
10,970,012
128,898
MidCap
S&P
400
Index
Fund
(a)
2,670,036
65,042
SmallCap
S&P
600
Index
Fund
(a)
2,096,994
65,132
$
259,072
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
59
.73
%
Bond
Market
Index
Account
(a)
41,143,879
442,708
LargeCap
S&P
500
Index
Account
(a)
12,537,330
320,078
$
762,786
TOTAL
INVESTMENT
COMPANIES
$
1,278,471
Total
Investments
$
1,278,471
Other
Assets
and
Liabilities
- (0.10)%
(
1,331
)
TOTAL
NET
ASSETS
-
100.00%
$
1,277,140
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
.25
%
Fixed
Income
Funds
34
.67
%
Investment
Companies
12
.35
%
International
Equity
Funds
10
.09
%
Money
Market
Funds
7
.74
%
Other
Assets
and
Liabilities
(
0
.10
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
345,450
$
125,730
$
12,672
$
442,708
International
Equity
Index
Fund
99,275
32,204
7,565
128,898
LargeCap
S&P
500
Index
Account
249,036
68,063
40,047
320,078
MidCap
S&P
400
Index
Fund
52,573
17,719
12,460
65,042
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
111
564,643
465,915
98,839
SmallCap
S&P
600
Index
Fund
50,260
20,493
13,163
65,132
$
796,705
$
828,852
$
551,822
$
1,120,697
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
8,769
$
2
$
651
$
(
15,802
)
International
Equity
Index
Fund
4,054
45
2,319
4,939
LargeCap
S&P
500
Index
Account
4,761
741
23,347
42,285
MidCap
S&P
400
Index
Fund
1,800
277
3,349
6,933
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
—
—
—
—
SmallCap
S&P
600
Index
Fund
1,627
221
3,791
7,321
$
21,011
$
1,286
$
33,457
$
45,676
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Income
Account
December
31,
2021
See
accompanying
notes.
160
INVESTMENT
COMPANIES
-
100
.03
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
10
.20
%
International
Equity
Index
Fund
(a)
1,127,585
$
13,249
MidCap
S&P
400
Index
Fund
(a)
411,672
10,028
SmallCap
S&P
600
Index
Fund
(a)
323,337
10,043
$
33,320
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
89
.83
%
Bond
Market
Index
Account
(a)
19,635,650
211,280
LargeCap
S&P
500
Index
Account
(a)
3,221,760
82,251
$
293,531
TOTAL
INVESTMENT
COMPANIES
$
326,851
Total
Investments
$
326,851
Other
Assets
and
Liabilities
- (0.03)%
(
87
)
TOTAL
NET
ASSETS
-
100.00%
$
326,764
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
.66
%
Domestic
Equity
Funds
31
.31
%
International
Equity
Funds
4
.06
%
Other
Assets
and
Liabilities
(
0
.03
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
208,836
$
53,037
$
41,780
$
211,280
International
Equity
Index
Fund
13,109
3,243
3,852
13,249
LargeCap
S&P
500
Index
Account
81,405
19,073
31,289
82,251
MidCap
S&P
400
Index
Fund
10,363
2,974
4,800
10,028
SmallCap
S&P
600
Index
Fund
9,910
3,203
4,677
10,043
$
323,623
$
81,530
$
86,398
$
326,851
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Bond
Market
Index
Account
$
4,507
$
1
$
335
$
(
8,814
)
International
Equity
Index
Fund
416
122
239
627
LargeCap
S&P
500
Index
Account
1,318
4,408
6,462
8,654
MidCap
S&P
400
Index
Fund
278
605
518
886
SmallCap
S&P
600
Index
Fund
251
795
587
812
$
6,770
$
5,931
$
8,141
$
2,165
Amounts
in
thousands.
Schedule
of
Investments
Diversified
International
Account
December
31,
2021
See
accompanying
notes.
161
INVESTMENT
COMPANIES
-
0
.58
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0
.58
%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.03%
(a),(b)
1,638,410
$
1,638
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
114,939
115
$
1,753
TOTAL
INVESTMENT
COMPANIES
$
1,753
COMMON
STOCKS
-
99
.81
%
Shares
Held
Value
(000's)
Airlines
-
0
.28
%
Copa
Holdings
SA
(d)
10,055
$
831
Apparel
-
2
.67
%
Gildan
Activewear
Inc
38,900
1,650
Kering
SA
2,954
2,370
LVMH
Moet
Hennessy
Louis
Vuitton
SE
4,804
3,970
$
7,990
Automobile
Manufacturers
-
3
.68
%
Bayerische
Motoren
Werke
AG
16,658
1,666
Ferrari
NV
3,607
928
Kia
Corp
(d)
27,208
1,878
Toyota
Motor
Corp
277,000
5,120
Volvo
AB
-
B
Shares
61,150
1,414
$
11,006
Automobile
Parts
&
Equipment
-
0
.95
%
Toyota
Industries
Corp
35,600
2,848
Banks
-
11
.22
%
Bank
Leumi
Le-Israel
BM
140,612
1,508
Bank
Rakyat
Indonesia
Persero
Tbk
PT
8,369,208
2,410
BNP
Paribas
SA
32,233
2,229
Canadian
Imperial
Bank
of
Commerce
11,200
1,306
DBS
Group
Holdings
Ltd
122,100
2,957
DNB
Bank
ASA
80,100
1,832
Grupo
Financiero
Banorte
SAB
de
CV
174,759
1,137
HDFC
Bank
Ltd
ADR
15,362
1,000
ICICI
Bank
Ltd
ADR
147,592
2,921
Intesa
Sanpaolo
SpA
946,251
2,444
Kasikornbank
PCL
207,000
876
Kotak
Mahindra
Bank
Ltd
50,982
1,227
Lloyds
Banking
Group
PLC
4,403,046
2,859
Mediobanca
Banca
di
Credito
Finanziario
SpA
193,592
2,222
PT
Bank
Central
Asia
Tbk
1,862,400
954
TCS
Group
Holding
PLC
21,368
1,801
Toronto-Dominion
Bank/The
28,700
2,200
United
Overseas
Bank
Ltd
85,600
1,710
$
33,593
Beverages
-
1
.11
%
Carlsberg
AS
12,246
2,114
Heineken
NV
10,771
1,212
$
3,326
Biotechnology
-
1
.05
%
CSL
Ltd
9,280
1,963
Genmab
A/S
(d)
2,935
1,171
$
3,134
Building
Materials
-
4
.70
%
Beijing
New
Building
Materials
PLC
136,397
770
Beijing
Oriental
Yuhong
Waterproof
Technology
Co
Ltd
184,100
1,528
China
Lesso
Group
Holdings
Ltd
725,000
1,042
Cie
de
Saint-Gobain
48,534
3,414
CRH
PLC
69,483
3,678
Geberit
AG
1,636
1,334
HeidelbergCement
AG
20,734
1,403
Voltas
Ltd
55,058
901
$
14,070
Chemicals
-
2
.35
%
Akzo
Nobel
NV
14,636
1,608
Evonik
Industries
AG
29,945
967
Koninklijke
DSM
NV
8,906
2,006
Nippon
Sanso
Holdings
Corp
32,700
715
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Chemicals
(continued)
Shin-Etsu
Chemical
Co
Ltd
10,100
$
1,753
$
7,049
Commercial
Services
-
0
.47
%
TechnoPro
Holdings
Inc
46,300
1,403
Computers
-
4
.08
%
Capgemini
SE
14,727
3,609
Globant
SA
(d)
2,965
931
Infosys
Ltd
132,990
3,368
LG
Corp
(d)
9,859
671
Logitech
International
SA
27,266
2,287
Nomura
Research
Institute
Ltd
31,400
1,343
$
12,209
Consumer
Products
-
0
.92
%
Hindustan
Unilever
Ltd
37,011
1,172
Reckitt
Benckiser
Group
PLC
18,430
1,586
$
2,758
Cosmetics
&
Personal
Care
-
1
.12
%
L'Oreal
SA
7,015
3,345
Distribution
&
Wholesale
-
2
.24
%
Bunzl
PLC
32,066
1,253
Ferguson
PLC
14,312
2,542
ITOCHU
Corp
71,300
2,181
Pop
Mart
International
Group
Ltd
(d),(e)
126,400
726
$
6,702
Diversified
Financial
Services
-
2
.30
%
Banca
Generali
SpA
19,236
844
Euronext
NV
(e)
7,604
791
Housing
Development
Finance
Corp
Ltd
64,177
2,220
KB
Financial
Group
Inc
26,103
1,207
SBI
Holdings
Inc/Japan
24,800
676
St
James's
Place
PLC
49,563
1,133
$
6,871
Electric
-
1
.93
%
Enel
SpA
259,188
2,073
Iberdrola
SA
207,894
2,461
Northland
Power
Inc
41,200
1,236
$
5,770
Electrical
Components
&
Equipment
-
0
.55
%
Delta
Electronics
Inc
165,000
1,637
Electronics
-
0
.98
%
Hoya
Corp
19,796
2,938
Engineering
&
Construction
-
0
.59
%
Vinci
SA
16,850
1,780
Food
-
3
.36
%
Ajinomoto
Co
Inc
35,800
1,090
Dino
Polska
SA
(d),(e)
10,310
937
Nestle
SA
42,272
5,902
Seven
&
i
Holdings
Co
Ltd
48,400
2,129
$
10,058
Hand
&
Machine
Tools
-
0
.49
%
Techtronic
Industries
Co
Ltd
73,500
1,465
Healthcare
-
Products
-
1
.81
%
Alcon
Inc
25,007
2,206
Getinge
AB
34,504
1,504
Sartorius
Stedim
Biotech
1,759
966
Tecan
Group
AG
1,244
755
$
5,431
Healthcare
-
Services
-
2
.31
%
Fresenius
SE
&
Co
KGaA
23,998
964
ICON
PLC
(d)
10,055
3,114
Lonza
Group
AG
3,419
2,847
$
6,925
Home
Builders
-
1
.43
%
Daiwa
House
Industry
Co
Ltd
25,300
727
Persimmon
PLC
47,112
1,826
Taylor
Wimpey
PLC
720,076
1,717
$
4,270
Schedule
of
Investments
Diversified
International
Account
December
31,
2021
See
accompanying
notes.
162
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Home
Furnishings
-
2
.77
%
Haier
Smart
Home
Co
Ltd
313,600
$
1,327
Howden
Joinery
Group
PLC
140,018
1,715
JS
Global
Lifestyle
Co
Ltd
(e)
328,500
553
Sony
Group
Corp
37,300
4,710
$
8,305
Insurance
-
3
.09
%
AIA
Group
Ltd
318,400
3,213
AXA
SA
53,385
1,589
Fairfax
Financial
Holdings
Ltd
2,400
1,181
ICICI
Lombard
General
Insurance
Co
Ltd
(e)
33,810
636
Legal
&
General
Group
PLC
279,450
1,128
Sampo
Oyj
30,292
1,516
$
9,263
Internet
-
2
.01
%
East
Money
Information
Co
Ltd
134,997
789
Shopify
Inc
(d)
1,790
2,466
Tencent
Holdings
Ltd
47,493
2,771
$
6,026
Iron
&
Steel
-
0
.50
%
Vale
SA
106,700
1,493
Leisure
Products
&
Services
-
1
.09
%
Shimano
Inc
8,400
2,237
Yamaha
Motor
Co
Ltd
(f)
42,700
1,026
$
3,263
Machinery
-
Construction
&
Mining
-
0
.42
%
Weir
Group
PLC/The
53,858
1,250
Machinery
-
Diversified
-
3
.10
%
Atlas
Copco
AB
-
A
Shares
30,425
2,102
Ebara
Corp
41,600
2,311
GEA
Group
AG
22,573
1,233
Keyence
Corp
3,500
2,201
Omron
Corp
14,400
1,435
$
9,282
Mining
-
1
.53
%
Anglo
American
PLC
34,576
1,422
Franco-Nevada
Corp
12,167
1,683
Rio
Tinto
Ltd
20,082
1,465
$
4,570
Miscellaneous
Manufacturers
-
1
.61
%
JSR
Corp
40,300
1,531
Pidilite
Industries
Ltd
25,821
854
Siemens
AG
14,104
2,443
$
4,828
Oil
&
Gas
-
3
.91
%
BP
PLC
501,590
2,247
Equinor
ASA
63,816
1,690
LUKOIL
PJSC
ADR
18,208
1,632
Neste
Oyj
24,109
1,187
Reliance
Industries
Ltd
57,640
1,831
TotalEnergies
SE
61,538
3,132
$
11,719
Pharmaceuticals
-
5
.61
%
AstraZeneca
PLC
37,990
4,436
Dechra
Pharmaceuticals
PLC
11,862
858
Novo
Nordisk
A/S
47,106
5,291
Roche
Holding
AG
14,979
6,214
$
16,799
Private
Equity
-
3
.47
%
3i
Group
PLC
219,833
4,310
Brookfield
Asset
Management
Inc
73,869
4,461
Intermediate
Capital
Group
PLC
54,440
1,621
$
10,392
Real
Estate
-
0
.26
%
Shimao
Services
Holdings
Ltd
(e)
308,000
215
Tokyo
Tatemono
Co
Ltd
(f)
37,900
554
$
769
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
REITs
-
0
.18
%
Keppel
DC
REIT
296,700
$
544
Retail
-
3
.59
%
Alimentation
Couche-Tard
Inc
59,746
2,503
Bosideng
International
Holdings
Ltd
2,024,000
1,275
Home
Product
Center
PCL
1,100,400
478
JD
Sports
Fashion
PLC
(d)
753,640
2,222
Li
Ning
Co
Ltd
186,500
2,046
Wal-Mart
de
Mexico
SAB
de
CV
594,422
2,213
$
10,737
Semiconductors
-
9
.03
%
Advantest
Corp
16,700
1,581
ASM
International
NV
3,112
1,374
ASML
Holding
NV
8,835
7,077
MediaTek
Inc
54,000
2,317
Nordic
Semiconductor
ASA
(d)
26,871
901
Samsung
Electronics
Co
Ltd
89,146
5,855
Taiwan
Semiconductor
Manufacturing
Co
Ltd
359,140
7,945
$
27,050
Software
-
0
.84
%
Capcom
Co
Ltd
28,000
660
Dassault
Systemes
SE
24,027
1,426
DeNA
Co
Ltd
28,400
437
$
2,523
Telecommunications
-
1
.75
%
Deutsche
Telekom
AG
60,757
1,122
Nice
Ltd
ADR
(d)
2,724
827
Nippon
Telegraph
&
Telephone
Corp
71,700
1,961
SoftBank
Group
Corp
27,800
1,333
$
5,243
Toys,
Games
&
Hobbies
-
1
.14
%
Nintendo
Co
Ltd
7,300
3,415
Transportation
-
1
.32
%
Canadian
National
Railway
Co
16,128
1,981
Deutsche
Post
AG
30,822
1,983
$
3,964
TOTAL
COMMON
STOCKS
$
298,844
Total
Investments
$
300,597
Other
Assets
and
Liabilities
- (0.39)%
(
1,171
)
TOTAL
NET
ASSETS
-
100.00%
$
299,426
(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
$1,638
or
0.55%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
$3,858
or
1.29%
of
net
assets.
(f)
Security
or
a
portion
of
the
security
was
on
loan. At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,564
or
0.52%
of
net
assets.
Schedule
of
Investments
Diversified
International
Account
December
31,
2021
See
accompanying
notes.
163
Portfolio
Summary (unaudited)
Location
Percent
Japan
16
.14
%
United
Kingdom
11
.42
%
France
9
.30
%
Switzerland
7
.18
%
Canada
6
.90
%
India
5
.38
%
Netherlands
4
.70
%
Taiwan
3
.97
%
Germany
3
.93
%
China
3
.74
%
Korea,
Republic
Of
3
.21
%
Denmark
2
.87
%
Italy
2
.84
%
Ireland
2
.27
%
Hong
Kong
2
.18
%
Singapore
1
.74
%
Sweden
1
.67
%
Norway
1
.47
%
Australia
1
.15
%
Indonesia
1
.13
%
Mexico
1
.12
%
Finland
0
.91
%
Spain
0
.82
%
Israel
0
.78
%
Cyprus
0
.60
%
United
States
0
.58
%
Russian
Federation
0
.54
%
Brazil
0
.50
%
Thailand
0
.45
%
Uruguay
0
.31
%
Poland
0
.31
%
Panama
0
.28
%
Other
Assets
and
Liabilities
(
0
.39
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
1,712
$
104,014
$
105,611
$
115
$
1,712
$
104,014
$
105,611
$
115
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Equity
Income
Account
December
31,
2021
See
accompanying
notes.
164
INVESTMENT
COMPANIES
-
1
.46
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1
.46
%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.03%
(a),(b)
22,680
$
23
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
11,037,191
11,037
$
11,060
TOTAL
INVESTMENT
COMPANIES
$
11,060
COMMON
STOCKS
-
98
.68
%
Shares
Held
Value
(000's)
Apparel
-
1
.73
%
NIKE
Inc
78,581
$
13,097
Automobile
Manufacturers
-
2
.14
%
PACCAR
Inc
183,016
16,153
Automobile
Parts
&
Equipment
-
2
.35
%
Magna
International
Inc
219,770
17,788
Banks
-
8
.82
%
Bank
of
America
Corp
161,546
7,187
First
Republic
Bank/CA
80,400
16,603
JPMorgan
Chase
&
Co
110,116
17,437
Morgan
Stanley
111,193
10,915
PNC
Financial
Services
Group
Inc/The
72,097
14,457
$
66,599
Beverages
-
1
.84
%
Coca-Cola
Co/The
234,616
13,892
Biotechnology
-
1
.84
%
Corteva
Inc
294,121
13,906
Chemicals
-
2
.48
%
Air
Products
and
Chemicals
Inc
31,625
9,622
PPG
Industries
Inc
52,931
9,128
$
18,750
Computers
-
2
.01
%
Apple
Inc
85,339
15,154
Diversified
Financial
Services
-
4
.24
%
BlackRock
Inc
23,442
21,463
Discover
Financial
Services
91,487
10,572
$
32,035
Electric
-
5
.65
%
Eversource
Energy
92,460
8,412
NextEra
Energy
Inc
146,873
13,712
Sempra
Energy
29,769
3,938
WEC
Energy
Group
Inc
84,406
8,193
Xcel
Energy
Inc
123,929
8,390
$
42,645
Electronics
-
0
.85
%
Honeywell
International
Inc
30,725
6,407
Food
-
3
.25
%
Hormel
Foods
Corp
331,335
16,172
Tyson
Foods
Inc
96,347
8,398
$
24,570
Healthcare
-
Products
-
5
.80
%
Abbott
Laboratories
161,123
22,677
Medtronic
PLC
135,885
14,057
STERIS
PLC
29,038
7,068
$
43,802
Healthcare
-
Services
-
1
.05
%
UnitedHealth
Group
Inc
15,784
7,926
Insurance
-
4
.37
%
Chubb
Ltd
67,128
12,977
Fidelity
National
Financial
Inc
249,300
13,008
Swiss
Re
AG
ADR
(e)
283,805
7,033
$
33,018
Machinery
-
Construction
&
Mining
-
0
.64
%
Caterpillar
Inc
23,402
4,838
Machinery
-
Diversified
-
2
.06
%
Deere
&
Co
45,377
15,559
Media
-
1
.76
%
Cable
One
Inc
3,792
6,687
Comcast
Corp
-
Class
A
132,018
6,644
$
13,331
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Miscellaneous
Manufacturers
-
4
.19
%
Parker-Hannifin
Corp
58,441
$
18,591
Trane
Technologies
PLC
64,525
13,036
$
31,627
Oil
&
Gas
-
3
.70
%
Chevron
Corp
78,510
9,213
EOG
Resources
Inc
111,368
9,893
Marathon
Petroleum
Corp
138,736
8,878
$
27,984
Pharmaceuticals
-
9
.95
%
Becton
Dickinson
and
Co
58,326
14,668
Eli
Lilly
&
Co
7,836
2,164
Merck
&
Co
Inc
197,650
15,148
Novartis
AG
ADR
139,565
12,208
Pfizer
Inc
201,223
11,882
Roche
Holding
AG
ADR
370,058
19,128
$
75,198
Pipelines
-
0
.96
%
Enterprise
Products
Partners
LP
330,410
7,256
Private
Equity
-
2
.83
%
KKR
&
Co
Inc
286,539
21,347
REITs
-
4
.68
%
Alexandria
Real
Estate
Equities
Inc
60,354
13,456
Digital
Realty
Trust
Inc
80,663
14,267
Realty
Income
Corp
106,507
7,625
$
35,348
Retail
-
3
.99
%
Costco
Wholesale
Corp
24,190
13,733
Starbucks
Corp
85,324
9,980
Target
Corp
27,875
6,451
$
30,164
Semiconductors
-
4
.15
%
Microchip
Technology
Inc
190,048
16,546
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
123,193
14,821
$
31,367
Software
-
4
.36
%
Activision
Blizzard
Inc
99,828
6,641
Fidelity
National
Information
Services
Inc
60,676
6,623
Microsoft
Corp
37,958
12,766
SAP
SE
ADR
49,559
6,944
$
32,974
Telecommunications
-
4
.41
%
BCE
Inc
346,008
18,006
Verizon
Communications
Inc
294,051
15,279
$
33,285
Transportation
-
2
.58
%
Expeditors
International
of
Washington
Inc
58,923
7,913
Union
Pacific
Corp
45,947
11,575
$
19,488
TOTAL
COMMON
STOCKS
$
745,508
Total
Investments
$
756,568
Other
Assets
and
Liabilities
- (0.14)%
(
1,072
)
TOTAL
NET
ASSETS
-
100.00%
$
755,496
(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
$23
or
0.00%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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,
the
value
of
these
securities
totaled
$22
or
0.00%
of
net
assets.
Schedule
of
Investments
Equity
Income
Account
December
31,
2021
See
accompanying
notes.
165
Portfolio
Summary (unaudited)
Sector
Percent
Financial
24
.94
%
Consumer,
Non-cyclical
23
.73
%
Technology
10
.52
%
Industrial
10
.32
%
Consumer,
Cyclical
10
.21
%
Communications
6
.17
%
Utilities
5
.65
%
Energy
4
.66
%
Basic
Materials
2
.48
%
Money
Market
Funds
1
.46
%
Other
Assets
and
Liabilities
(
0
.14
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
15,730
$
255,226
$
259,919
$
11,037
$
15,730
$
255,226
$
259,919
$
11,037
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2021
See
accompanying
notes.
166
INVESTMENT
COMPANIES
-
9.10%
Shares
Held
Value
(000's)
Money
Market
Funds
-
9.10%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
17,989,837
$
17,990
TOTAL
INVESTMENT
COMPANIES
$
17,990
BONDS
-
15.96%
Principal
Amount
(000's)
Value
(000's)
Automobile
Asset
Backed
Securities
-
7.26%
AmeriCredit
Automobile
Receivables
Trust
2020-3
0.42%,
03/18/2024
$
353
$
352
AmeriCredit
Automobile
Receivables
Trust
2021-1
0.28%,
06/18/2024
714
714
BMW
Vehicle
Lease
Trust
2021-1
0.20%,
03/27/2023
606
606
Carmax
Auto
Owner
Trust
2021-1
0.22%,
02/15/2024
665
665
CarMax
Auto
Owner
Trust
2021-4
0.24%,
11/15/2024
465
464
Carvana
Auto
Receivables
Trust
0.82%,
04/10/2025
1,450
1,450
Carvana
Auto
Receivables
Trust
2021-P3
0.38%,
01/10/2025
1,470
1,467
Drive
Auto
Receivables
Trust
2021-2
0.36%,
05/15/2024
2,185
2,184
Ford
Credit
Auto
Owner
Trust
2020-C
0.25%,
09/15/2023
577
576
GM
Financial
Consumer
Automobile
Receivables
Trust
2021-4
0.28%,
11/18/2024
1,490
1,487
Hyundai
Auto
Lease
Securitization
Trust
2021-A
0.25%,
04/17/2023
(d)
466
466
Santander
Consumer
Auto
Receivables
Trust
2021-A
0.23%,
11/15/2023
(d)
350
350
Santander
Drive
Auto
Receivables
Trust
2021-1
0.29%,
11/15/2023
131
130
Santander
Drive
Auto
Receivables
Trust
2021-2
0.28%,
04/15/2024
459
459
Santander
Retail
Auto
Lease
Trust
2020-B
0.42%,
11/20/2023
(d)
1,039
1,039
Santander
Retail
Auto
Lease
Trust
2021-B
0.31%,
01/22/2024
(d)
1,417
1,414
World
Omni
Select
Auto
Trust
2021-A
0.29%,
02/18/2025
535
533
$
14,356
Commercial
Mortgage
Backed
Securities
-
1.21%
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
2.37%,
05/25/2022
1,022
1,025
Ginnie
Mae
0.14%,
02/16/2055
(e),(f)
10,994
40
0.53%,
04/16/2047
(e),(f)
6,539
109
0.54%,
11/16/2052
(e),(f)
7,416
125
0.54%,
03/16/2060
(e),(f)
2,584
120
2.60%,
05/16/2059
332
336
2.60%,
03/16/2060
624
634
$
2,389
Mortgage
Backed
Securities
-
5.97%
EverBank
Mortgage
Loan
Trust
18-1
3.50%,
02/25/2048
(d),(f)
133
135
Fannie
Mae
Grantor
Trust
2005-T1
0.45%,
05/25/2035
133
134
1.00
x
1
Month
USD
LIBOR
+
0.35%
Fannie
Mae
Interest
Strip
3.50%,
12/25/2043
(e),(f)
805
99
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Fannie
Mae
REMICS
1.53%,
06/25/2045
(e)
$
1,859
$
81
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.00%
3.00%,
10/25/2040
(e)
617
22
3.00%,
04/25/2042
200
202
3.00%,
05/25/2048
102
105
3.00%,
01/25/2051
(e)
2,327
325
3.50%,
01/25/2040
(e)
118
1
4.50%,
04/25/2045
(e)
1,569
271
7.00%,
04/25/2032
65
75
Freddie
Mac
REMICS
1.50%,
04/15/2028
471
473
1.66%,
05/15/2038
(e)
1,743
80
1.00
x
12
Month
Treasury
Average
Index
+
0.00%
3.00%,
11/15/2030
(e)
119
���
3.00%,
11/15/2035
950
962
3.00%,
10/15/2041
137
138
3.00%,
04/15/2046
137
145
3.50%,
08/15/2040
(e)
212
2
Ginnie
Mae
2.00%,
12/20/2050
(e)
4,377
485
2.50%,
10/20/2050
(e)
2,749
337
2.50%,
12/20/2050
(e)
1,791
207
2.50%,
01/20/2051
(e)
4,100
437
3.00%,
07/20/2050
(e)
1,598
189
3.00%,
08/20/2050
(e)
2,774
293
3.00%,
09/20/2050
(e)
2,657
313
3.00%,
09/20/2050
(e)
2,941
345
3.00%,
10/20/2050
(e)
1,906
207
3.00%,
11/20/2050
(e)
3,696
454
3.00%,
11/20/2050
(e)
2,368
213
3.00%,
12/20/2050
(e)
1,527
175
3.00%,
01/20/2051
(e)
2,972
354
3.50%,
10/20/2044
(e)
3,022
275
3.50%,
10/20/2049
(e)
2,406
321
4.00%,
02/20/2044
(e)
1,310
83
4.00%,
04/20/2044
(e)
779
55
4.00%,
01/20/2046
(e)
587
33
6.00%,
06/20/2046
(e)
402
78
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
6.04%,
12/20/2043
(e)
934
179
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
JP
Morgan
Mortgage
Trust
2016-4
3.50%,
10/25/2046
(d),(f)
160
161
JP
Morgan
Mortgage
Trust
2017-3
3.77%,
08/25/2047
(d),(f)
529
540
New
Residential
Mortgage
Loan
Trust
2014-1
5.00%,
01/25/2054
(d),(f)
1,109
1,171
New
Residential
Mortgage
Loan
Trust
2015-2
5.47%,
08/25/2055
(d),(f)
923
974
Sequoia
Mortgage
Trust
2013-2
3.65%,
02/25/2043
(f)
237
239
Sequoia
Mortgage
Trust
2017-3
3.75%,
04/25/2047
(d),(f)
440
446
$
11,814
Other
Asset
Backed
Securities
-
1.52%
Chase
Funding
Trust
Series
2004-1
0.56%,
12/25/2033
79
77
1.00
x
1
Month
USD
LIBOR
+
0.46%
HPEFS
Equipment
Trust
0.69%,
07/22/2030
(d)
2,350
2,352
Towd
Point
Mortgage
Trust
4.25%,
10/25/2053
(d),(f)
550
569
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2021
See
accompanying
notes.
167
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Other
Asset
Backed
Securities
(continued)
Verizon
Owner
Trust
2018-A
3.23%,
04/20/2023
$
4
$
3
$
3,001
TOTAL
BONDS
$
31,560
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
103.50%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
5.99%
2.00%,
10/01/2031
$
352
$
362
2.23%,
09/01/2032
7
7
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.23%
2.50%,
02/01/2028
301
314
3.00%,
02/01/2027
103
108
3.00%,
01/01/2031
298
314
3.00%,
01/01/2033
583
617
3.00%,
03/01/2037
193
203
3.00%,
08/01/2042
338
357
3.00%,
10/01/2042
587
620
3.00%,
10/01/2042
301
318
3.00%,
05/01/2043
415
440
3.00%,
10/01/2046
530
565
3.50%,
02/01/2032
541
576
3.50%,
04/01/2042
722
780
3.50%,
05/01/2042
343
370
3.50%,
07/01/2042
1,082
1,167
3.50%,
02/01/2044
430
463
4.00%,
07/01/2042
522
580
4.00%,
01/01/2043
531
584
4.00%,
06/01/2043
557
611
4.00%,
10/01/2045
684
752
4.50%,
11/01/2043
495
554
5.00%,
10/01/2025
44
48
5.00%,
02/01/2033
82
93
5.00%,
06/01/2033
105
116
5.00%,
01/01/2034
257
290
5.00%,
07/01/2035
54
61
5.00%,
07/01/2035
5
6
5.00%,
07/01/2035
12
13
5.00%,
10/01/2035
22
25
5.50%,
03/01/2033
59
67
5.50%,
04/01/2038
3
3
5.50%,
05/01/2038
14
16
6.00%,
12/01/2023
1
1
6.00%,
05/01/2031
8
9
6.00%,
12/01/2031
6
7
6.00%,
11/01/2033
29
32
6.00%,
09/01/2034
28
32
6.00%,
02/01/2035
14
16
6.00%,
10/01/2036
25
29
6.00%,
03/01/2037
29
32
6.00%,
01/01/2038
7
8
6.00%,
01/01/2038
47
54
6.00%,
04/01/2038
18
20
6.50%,
05/01/2023
2
2
6.50%,
04/01/2024
1
1
6.50%,
04/01/2026
1
1
6.50%,
05/01/2026
1
2
6.50%,
01/01/2028
2
2
6.50%,
03/01/2028
1
1
6.50%,
10/01/2028
8
9
6.50%,
11/01/2028
2
2
6.50%,
12/01/2028
4
5
6.50%,
03/01/2029
2
2
6.50%,
07/01/2031
16
18
6.50%,
08/01/2031
4
5
6.50%,
10/01/2031
7
7
6.50%,
10/01/2031
5
5
6.50%,
12/01/2031
8
9
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
6.50%,
02/01/2032
$
8
$
9
6.50%,
05/01/2032
18
20
6.50%,
04/01/2035
4
4
7.00%,
12/01/2023
1
1
7.00%,
01/01/2024
1
1
7.00%,
09/01/2027
2
2
7.00%,
01/01/2028
14
14
7.00%,
04/01/2028
9
10
7.00%,
05/01/2028
1
1
7.00%,
10/01/2031
3
4
7.00%,
10/01/2031
8
9
7.00%,
04/01/2032
26
31
7.50%,
10/01/2030
5
6
7.50%,
02/01/2031
1
1
7.50%,
02/01/2031
5
6
8.00%,
10/01/2030
9
11
8.50%,
07/01/2029
13
14
$
11,855
Federal
National
Mortgage
Association
(FNMA)
-
0.43%
1.95%,
12/01/2033
35
35
1.00
x
12
Month
USD
LIBOR
+
1.70%
2.02%,
12/01/2032
9
10
1.00
x
12
Month
USD
LIBOR
+
1.64%
3.00%,
04/01/2043
553
589
5.50%,
05/01/2033
11
12
6.00%,
05/01/2037
123
137
6.50%,
08/01/2025
10
11
6.50%,
11/01/2032
11
12
7.00%,
08/01/2028
8
9
7.00%,
12/01/2028
8
9
8.00%,
05/01/2027
3
3
8.50%,
10/01/2027
18
18
$
845
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
60.66%
2.00%,
02/01/2032
235
242
2.00%,
11/01/2035
1,160
1,193
2.00%,
11/01/2035
1,608
1,653
2.00%,
01/01/2037
(g)
5,750
5,888
2.00%,
10/01/2050
913
914
2.00%,
03/01/2051
2,163
2,173
2.00%,
05/01/2051
5,028
5,026
2.00%,
07/01/2051
2,715
2,709
2.00%,
09/01/2051
1,564
1,561
2.00%,
09/01/2051
3,475
3,474
2.00%,
11/01/2051
2,011
2,007
2.00%,
11/01/2051
1,992
1,996
2.00%,
11/01/2051
3,086
3,091
2.00%,
11/01/2051
1,692
1,693
2.00%,
12/01/2051
2,991
2,996
2.00%,
12/01/2051
3,000
3,009
2.50%,
06/01/2027
469
487
2.50%,
08/01/2028
377
392
2.50%,
12/01/2031
495
516
2.50%,
09/01/2032
332
347
2.50%,
08/01/2035
1,450
1,512
2.50%,
10/01/2035
1,614
1,674
2.50%,
04/01/2050
1,198
1,223
2.50%,
06/01/2050
1,308
1,339
2.50%,
08/01/2050
3,262
3,348
2.50%,
07/01/2051
4,079
4,200
2.50%,
01/01/2052
(g)
19,785
20,185
3.00%,
05/01/2029
429
453
3.00%,
08/01/2031
868
917
3.00%,
12/01/2034
569
596
3.00%,
10/01/2036
392
415
3.00%,
10/01/2042
943
1,002
3.00%,
10/01/2046
643
679
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2021
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%,
08/01/2049
$
275
$
285
3.00%,
10/01/2049
724
752
3.00%,
12/01/2049
715
744
3.00%,
01/01/2050
1,153
1,199
3.00%,
02/01/2050
1,011
1,051
3.00%,
07/01/2050
1,225
1,273
3.00%,
08/01/2050
903
939
3.00%,
09/01/2050
1,336
1,391
3.00%,
01/01/2052
(g)
5,950
6,164
3.50%,
08/01/2031
436
466
3.50%,
02/01/2033
684
733
3.50%,
09/01/2033
966
1,033
3.50%,
06/01/2039
273
293
3.50%,
11/01/2042
772
834
3.50%,
12/01/2042
854
925
3.50%,
02/01/2043
333
363
3.50%,
03/01/2045
357
386
3.50%,
03/01/2045
648
697
3.50%,
09/01/2045
489
528
3.50%,
03/01/2047
596
650
3.50%,
11/01/2048
1,370
1,492
3.50%,
03/01/2050
1,846
1,972
4.00%,
01/01/2034
262
286
4.00%,
10/01/2037
379
410
4.00%,
02/01/2041
759
835
4.00%,
02/01/2042
476
523
4.00%,
10/01/2043
160
175
4.00%,
08/01/2044
339
376
4.00%,
10/01/2044
1,038
1,133
4.00%,
11/01/2044
317
352
4.00%,
08/01/2045
520
578
4.00%,
08/01/2046
837
914
4.00%,
07/01/2047
696
773
4.00%,
10/01/2047
565
621
4.50%,
08/01/2039
894
999
4.50%,
03/01/2042
250
279
4.50%,
09/01/2043
998
1,115
4.50%,
10/01/2043
547
604
4.50%,
11/01/2043
581
650
4.50%,
09/01/2045
398
442
4.50%,
10/01/2045
571
639
4.50%,
11/01/2045
793
881
4.50%,
08/01/2048
442
489
4.50%,
12/01/2048
596
660
5.00%,
05/01/2033
670
759
5.00%,
04/01/2035
58
65
5.00%,
04/01/2035
67
76
5.00%,
07/01/2035
3
3
5.00%,
02/01/2038
247
279
5.00%,
02/01/2040
761
872
5.00%,
07/01/2041
593
673
5.50%,
06/01/2033
36
41
5.50%,
02/01/2037
2
2
5.50%,
03/01/2038
53
61
6.00%,
11/01/2028
10
11
6.00%,
12/01/2031
3
3
6.00%,
01/01/2033
28
32
6.00%,
07/01/2037
77
89
6.00%,
11/01/2037
3
3
6.00%,
12/01/2037
7
7
6.00%,
03/01/2038
37
42
6.50%,
05/01/2024
1
1
6.50%,
09/01/2024
2
2
6.50%,
07/01/2025
6
7
6.50%,
02/01/2026
2
2
6.50%,
05/01/2026
2
2
6.50%,
06/01/2026
1
1
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)
6.50%,
07/01/2028
$
7
$
8
6.50%,
03/01/2029
4
4
6.50%,
06/01/2031
9
10
6.50%,
01/01/2032
3
3
6.50%,
04/01/2032
2
2
6.50%,
08/01/2032
7
7
6.50%,
02/01/2033
8
8
6.50%,
12/01/2036
10
11
6.50%,
07/01/2037
10
11
6.50%,
07/01/2037
17
19
6.50%,
02/01/2038
19
22
7.00%,
10/01/2029
6
7
7.00%,
05/01/2031
3
3
7.00%,
11/01/2031
13
15
8.00%,
06/01/2030
1
1
$
119,978
Government
National
Mortgage
Association
(GNMA)
-
20.46%
2.00%,
01/01/2052
9,200
9,283
2.50%,
01/01/2052
13,500
13,825
3.00%,
11/15/2042
399
422
3.00%,
12/15/2042
877
917
3.00%,
02/15/2043
926
984
3.00%,
05/15/2043
1,145
1,214
3.00%,
07/20/2045
604
631
3.00%,
07/20/2046
325
339
3.00%,
08/20/2046
708
739
3.00%,
09/20/2046
869
907
3.00%,
12/20/2046
440
459
3.00%,
02/20/2047
553
577
3.00%,
08/20/2047
336
350
3.00%,
01/01/2052
2,000
2,069
3.50%,
01/15/2043
724
778
3.50%,
05/15/2043
744
800
3.50%,
06/20/2043
492
529
3.50%,
04/20/2045
350
374
3.50%,
06/20/2046
55
58
3.50%,
02/20/2047
571
616
3.50%,
05/20/2047
596
655
3.50%,
11/20/2047
422
462
4.00%,
08/15/2041
467
513
4.00%,
07/20/2047
448
499
4.00%,
01/20/2048
1,452
1,571
4.50%,
07/15/2040
268
303
5.00%,
09/15/2033
3
3
5.00%,
02/15/2034
163
188
5.00%,
09/15/2039
19
22
5.50%,
11/15/2033
19
21
5.50%,
05/20/2035
66
77
6.00%,
04/20/2026
2
2
6.00%,
05/20/2026
1
2
6.00%,
03/20/2028
1
1
6.00%,
06/20/2028
8
9
6.00%,
07/20/2028
4
4
6.00%,
02/20/2029
4
4
6.00%,
03/20/2029
8
9
6.00%,
07/20/2029
8
9
6.00%,
07/20/2033
69
80
6.50%,
12/20/2025
4
4
6.50%,
02/20/2026
2
3
6.50%,
03/20/2031
6
6
6.50%,
04/20/2031
6
7
7.00%,
01/15/2028
1
1
7.00%,
01/15/2028
3
3
7.00%,
01/15/2028
1
1
7.00%,
01/15/2028
1
1
7.00%,
03/15/2028
43
45
7.00%,
01/15/2029
9
9
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2021
See
accompanying
notes.
169
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
7.00%,
03/15/2029
$
3
$
3
7.00%,
05/15/2031
5
5
7.00%,
09/15/2031
21
23
7.00%,
06/15/2032
42
46
7.50%,
09/15/2023
1
1
7.50%,
10/15/2023
1
1
8.00%,
07/15/2026
1
1
8.00%,
08/15/2026
1
1
$
40,466
U.S.
Treasury
-
2.56%
2.13%,
12/31/2022
2,400
2,440
4.50%,
02/15/2036
1,000
1,374
5.25%,
11/15/2028
1,000
1,251
$
5,065
U.S.
Treasury
Bill
-
13.40%
0.04%,
01/13/2022
(h)
8,000
8,000
0.06%,
04/21/2022
(h)
9,500
9,498
0.06%,
05/12/2022
(h)
7,000
6,998
0.08%,
05/05/2022
(h)
2,000
1,999
$
26,495
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
204,704
Total
Investments
$
254,254
Other
Assets
and
Liabilities
- (28.56)%
(56,477)
TOTAL
NET
ASSETS
-
100.00%
$
197,777
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
$9,617
or
4.86%
of
net
assets.
(e)
Security
is
an
Interest
Only
Strip.
(f)
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.
(g)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction.
(h)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Portfolio
Summary (unaudited)
Sector
Percent
Mortgage
Securities
94.72%
Government
15.96%
Money
Market
Funds
9.10%
Asset
Backed
Securities
8.78%
Other
Assets
and
Liabilities
(28.56)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
17,351
$
150,243
$
149,604
$
17,990
$
17,351
$
150,243
$
149,604
$
17,990
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
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
2022
Long
93
$
12,133
$
61
US
5
Year
Note;
March
2022
Short
88
10,646
(10)
US
Long
Bond;
March
2022
Long
22
3,530
(6)
Total
$
45
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
International
Emerging
Markets
Account
December
31,
2021
See
accompanying
notes.
170
INVESTMENT
COMPANIES
-
2.43%
Shares
Held
Value
(000's)
Money
Market
Funds
-
2.43%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.03%
(a),(b)
375,434
$
375
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
1,835,344
1,835
$
2,210
TOTAL
INVESTMENT
COMPANIES
$
2,210
COMMON
STOCKS
-
97.76%
Shares
Held
Value
(000's)
Agriculture
-
0.26%
SLC
Agricola
SA
28,800
$
233
Airlines
-
0.34%
Copa
Holdings
SA
(d)
3,737
309
Apparel
-
0.34%
Youngone
Corp
8,526
313
Automobile
Manufacturers
-
3.31%
Ashok
Leyland
Ltd
302,347
496
Eicher
Motors
Ltd
11,038
384
Hyundai
Motor
Co
4,756
835
Kia
Corp
(d)
13,203
911
Yadea
Group
Holdings
Ltd
(e)
196,000
382
$
3,008
Automobile
Parts
&
Equipment
-
0.79%
Fuyao
Glass
Industry
Group
Co
Ltd
(e)
54,400
281
Weichai
Power
Co
Ltd
221,000
434
$
715
Banks
-
10.41%
Bank
Rakyat
Indonesia
Persero
Tbk
PT
2,807,276
808
China
Merchants
Bank
Co
Ltd
100,500
782
Grupo
Financiero
Banorte
SAB
de
CV
98,000
637
HDFC
Bank
Ltd
33,997
673
ICICI
Bank
Ltd
118,625
1,179
Kasikornbank
PCL
90,900
385
Kotak
Mahindra
Bank
Ltd
16,168
389
OTP
Bank
Nyrt
(d)
9,350
477
PT
Bank
Central
Asia
Tbk
1,116,000
572
Regional
SAB
de
CV
105,000
545
Saudi
National
Bank/The
49,309
845
Sberbank
of
Russia
PJSC
ADR
84,349
1,353
TCS
Group
Holding
PLC
9,654
814
$
9,459
Beverages
-
1.59%
Arca
Continental
SAB
de
CV
60,000
381
Kweichow
Moutai
Co
Ltd
1,500
483
Tsingtao
Brewery
Co
Ltd
62,000
580
$
1,444
Biotechnology
-
0.31%
I-Mab
ADR
(d)
5,949
282
Building
Materials
-
2.33%
Amber
Enterprises
India
Ltd
(d)
8,725
389
Beijing
Oriental
Yuhong
Waterproof
Technology
Co
Ltd
84,371
700
China
Lesso
Group
Holdings
Ltd
374,000
538
Voltas
Ltd
19,309
316
Xinyi
Glass
Holdings
Ltd
70,000
175
$
2,118
Chemicals
-
1.42%
Asian
Paints
Ltd
11,434
520
Berger
Paints
India
Ltd
19,513
202
Navin
Fluorine
International
Ltd
6,150
346
Supreme
Industries
Ltd
7,611
227
$
1,295
Commercial
Services
-
0.44%
GPS
Participacoes
e
Empreendimentos
SA
(e)
83,688
239
NICE
Information
Service
Co
Ltd
(d)
10,727
162
$
401
Computers
-
2.51%
CI&T
Inc
(d)
11,295
134
Globant
SA
(d)
1,321
415
Infosys
Ltd
58,043
1,470
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Computers
(continued)
WNS
Holdings
Ltd
ADR
(d)
2,917
$
257
$
2,276
Consumer
Products
-
0.51%
Hindustan
Unilever
Ltd
14,523
460
Distribution
&
Wholesale
-
1.46%
AKR
Corporindo
Tbk
PT
939,600
271
Pop
Mart
International
Group
Ltd
(d),(e)
61,100
351
Sendas
Distribuidora
SA
88,875
207
Vamos
Locacao
de
Caminhoes
Maquinas
e
Equipamentos
SA
233,542
502
$
1,331
Diversified
Financial
Services
-
4.59%
Bajaj
Finance
Ltd
5,329
498
Banco
BTG
Pactual
SA
56,112
212
CreditAccess
Grameen
Ltd
(d)
23,794
190
Fubon
Financial
Holding
Co
Ltd
328,916
905
Hong
Kong
Exchanges
&
Clearing
Ltd
4,300
252
Housing
Development
Finance
Corp
Ltd
36,430
1,260
KB
Financial
Group
Inc
18,450
853
$
4,170
Electric
-
0.57%
China
Longyuan
Power
Group
Corp
Ltd
222,000
519
Electrical
Components
&
Equipment
-
1.30%
Delta
Electronics
Inc
63,000
625
Frencken
Group
Ltd
380,400
555
$
1,180
Electronics
-
0.76%
Lotes
Co
Ltd
13,000
357
Voltronic
Power
Technology
Corp
6,000
335
$
692
Energy
-
Alternate
Sources
-
0.39%
Sao
Martinho
SA
56,982
352
Engineering
&
Construction
-
0.77%
Grupo
Aeroportuario
del
Pacifico
SAB
de
CV
(d)
50,600
699
Food
-
3.34%
Bid
Corp
Ltd
23,720
486
Dino
Polska
SA
(d),(e)
6,921
629
JBS
SA
44,100
300
Nestle
India
Ltd
1,079
286
Tingyi
Cayman
Islands
Holding
Corp
298,000
613
Want
Want
China
Holdings
Ltd
787,000
722
$
3,036
Gas
-
1.47%
China
Resources
Gas
Group
Ltd
102,000
576
ENN
Energy
Holdings
Ltd
40,400
762
$
1,338
Hand
&
Machine
Tools
-
0.32%
Techtronic
Industries
Co
Ltd
14,500
289
Healthcare
-
Products
-
1.29%
Osstem
Implant
Co
Ltd
(d)
6,924
829
Shenzhen
Mindray
Bio-Medical
Electronics
Co
Ltd
5,700
342
$
1,171
Healthcare
-
Services
-
1.59%
Hygeia
Healthcare
Holdings
Co
Ltd
(e)
38,600
242
Notre
Dame
Intermedica
Participacoes
SA
24,000
260
Pharmaron
Beijing
Co
Ltd
(e)
20,600
318
Wuxi
Biologics
Cayman
Inc
(d),(e)
52,500
621
$
1,441
Home
Furnishings
-
0.96%
Haier
Smart
Home
Co
Ltd
110,400
467
JS
Global
Lifestyle
Co
Ltd
(e)
112,500
189
Vestel
Beyaz
Esya
Sanayi
ve
Ticaret
AS
359,166
215
$
871
Schedule
of
Investments
International
Emerging
Markets
Account
December
31,
2021
See
accompanying
notes.
171
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
3.39%
AIA
Group
Ltd
63,000
$
636
ICICI
Lombard
General
Insurance
Co
Ltd
(e)
16,850
317
ICICI
Prudential
Life
Insurance
Co
Ltd
(e)
30,600
230
PICC
Property
&
Casualty
Co
Ltd
660,000
540
Ping
An
Insurance
Group
Co
of
China
Ltd
111,500
803
Qualitas
Controladora
SAB
de
CV
(f)
109,500
554
$
3,080
Internet
-
13.09%
Alibaba
Group
Holding
Ltd
(d)
162,292
2,385
East
Money
Information
Co
Ltd
58,193
340
JD.com
Inc
(d)
28,060
982
Meituan
(d),(e)
51,600
1,492
MercadoLibre
Inc
(d)
303
409
My
EG
Services
Bhd
1,923,400
493
NCSoft
Corp
(d)
834
450
Sea
Ltd
ADR
(d)
1,767
395
Tencent
Holdings
Ltd
76,600
4,470
Trip.com
Group
Ltd
ADR
(d)
19,040
469
$
11,885
Investment
Companies
-
0.51%
VEF
AB
(d)
687,023
460
Iron
&
Steel
-
0.65%
Hunan
Valin
Steel
Co
Ltd
268,996
217
Severstal
PAO
17,444
376
$
593
Lodging
-
0.29%
Galaxy
Entertainment
Group
Ltd
(d)
51,000
265
Machinery
-
Diversified
-
0.75%
NARI
Technology
Co
Ltd
55,094
347
WEG
SA
55,900
331
$
678
Metal
Fabrication
&
Hardware
-
0.56%
APL
Apollo
Tubes
Ltd
(d)
17,471
234
Astral
Ltd
8,869
271
$
505
Mining
-
1.68%
Anglo
American
PLC
16,432
676
Impala
Platinum
Holdings
Ltd
40,023
564
Polyus
PJSC
3,270
289
$
1,529
Miscellaneous
Manufacturers
-
1.76%
Elite
Material
Co
Ltd
32,000
321
Lens
Technology
Co
Ltd
57,300
207
Pidilite
Industries
Ltd
9,355
310
Sunny
Optical
Technology
Group
Co
Ltd
24,100
763
$
1,601
Oil
&
Gas
-
4.95%
Indian
Oil
Corp
Ltd
186,420
279
LUKOIL
PJSC
ADR
11,464
1,027
MOL
Hungarian
Oil
&
Gas
PLC
48,960
380
Petroleo
Brasileiro
SA
133,900
738
Reliance
Industries
Ltd
65,185
2,071
$
4,495
Packaging
&
Containers
-
0.42%
Klabin
SA
82,413
380
Pharmaceuticals
-
0.54%
Caplin
Point
Laboratories
Ltd
18,857
218
Grand
Pharmaceutical
Group
Ltd
326,000
270
$
488
Pipelines
-
0.76%
Gaztransport
Et
Technigaz
SA
7,406
691
Real
Estate
-
0.36%
A-Living
Smart
City
Services
Co
Ltd
(e)
100,000
171
Shimao
Services
Holdings
Ltd
(e)
222,245
154
$
325
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Retail
-
4.02%
Ace
Hardware
Indonesia
Tbk
PT
3,450,700
$
310
Bosideng
International
Holdings
Ltd
664,000
418
China
Meidong
Auto
Holdings
Ltd
54,000
278
China
Yongda
Automobiles
Services
Holdings
Ltd
228,500
306
Home
Product
Center
PCL
852,000
370
Li
Ning
Co
Ltd
62,500
686
Magazine
Luiza
SA
154,266
200
Wal-Mart
de
Mexico
SAB
de
CV
210,300
783
Yifeng
Pharmacy
Chain
Co
Ltd
34,292
297
$
3,648
Semiconductors
-
19.16%
ASE
Technology
Holding
Co
Ltd
79,000
305
ASPEED
Technology
Inc
3,000
387
eMemory
Technology
Inc
1,500
118
Hana
Materials
Inc
9,203
485
Keystone
Microtech
Corp
25,000
289
MediaTek
Inc
45,000
1,931
Novatek
Microelectronics
Corp
19,400
377
Parade
Technologies
Ltd
5,000
380
Realtek
Semiconductor
Corp
30,000
627
RichWave
Technology
Corp
15,400
151
Samsung
Electronics
Co
Ltd
80,514
5,288
Taiwan
Semiconductor
Manufacturing
Co
Ltd
319,164
7,061
$
17,399
Shipbuilding
-
0.21%
Yangzijiang
Shipbuilding
Holdings
Ltd
189,200
188
Software
-
0.66%
NetEase
Inc
29,500
596
Telecommunications
-
0
.63%
Route
Mobile
Ltd
10,569
253
Shenzhen
Transsion
Holdings
Co
Ltd
12,958
320
$
573
TOTAL
COMMON
STOCKS
$
88,781
PREFERRED
STOCKS
-
0.28%
Shares
Held
Value
(000's)
Diversified
Financial
Services
-
0.02%
Fubon
Financial
Holding
Co
Ltd
0.00%
(d)
6,701
$
15
Semiconductors
-
0.26%
Samsung
Electronics
Co
Ltd
1,
438.00%
3,931
235
TOTAL
PREFERRED
STOCKS
$
250
Total
Investments
$
91,241
Other
Assets
and
Liabilities
- (0.47)%
(426)
TOTAL
NET
ASSETS
-
100.00%
$
90,815
(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
$375
or
0.41%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
$5,616
or
6.18%
of
net
assets.
(f)
Security
or
a
portion
of
the
security
was
on
loan. At
the
end
of
the
period,
the
value
of
these
securities
totaled
$360
or
0.40%
of
net
assets.
Schedule
of
Investments
International
Emerging
Markets
Account
December
31,
2021
See
accompanying
notes.
172
Portfolio
Summary (unaudited)
Location
Percent
China
28.00%
Taiwan
15.20%
India
15.12%
Korea,
Republic
Of
11.40%
Brazil
4.51%
Mexico
3.96%
Hong
Kong
3.38%
Russian
Federation
3.35%
United
States
2.85%
Indonesia
2.16%
South
Africa
1.16%
Malaysia
1.15%
Hungary
0.94%
Saudi
Arabia
0.93%
Cyprus
0.90%
Thailand
0.83%
France
0.76%
United
Kingdom
0.74%
Poland
0.69%
Sweden
0.51%
Uruguay
0.46%
Argentina
0.45%
Singapore
0.44%
Panama
0.34%
Turkey
0.24%
Other
Assets
and
Liabilities
(0.47)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
805
$
24,168
$
23,138
$
1,835
$
805
$
24,168
$
23,138
$
1,835
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2021
See
accompanying
notes.
173
INVESTMENT
COMPANIES
-
2
.65
%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0
.17
%
iShares
Russell
1000
Growth
ETF
3,900
$
1,192
Money
Market
Funds
-
2
.48
%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.03%
(a),(b)
2,954,023
2,954
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c),(d)
14,583,421
14,583
$
17,537
TOTAL
INVESTMENT
COMPANIES
$
18,729
CONVERTIBLE
PREFERRED
STOCKS
-
0
.16
%
Shares
Held
Value
(000's)
Automobile
Manufacturers
-
0
.03
%
Waymo
LLC
Series
A-2
0.00%
(d),(e),(f)
2,489
$
229
Chemicals
-
0
.03
%
Sila
Nano
Series
F
0.00%
(d),(e),(f)
4,929
203
Software
-
0
.10
%
Nuro
-
Series
C
0.00%
(d),(e),(f)
17,442
363
Rappi
Inc
-
Series
E
0.00%
(d),(e),(f)
5,133
331
$
694
TOTAL
CONVERTIBLE
PREFERRED
STOCKS
$
1,126
COMMON
STOCKS
-
98
.03
%
Shares
Held
Value
(000's)
Advertising
-
0
.02
%
Trade
Desk
Inc/The
(d)
1,342
$
123
Aerospace
&
Defense
-
1
.05
%
BWX
Technologies
Inc
221
11
HEICO
Corp
50
7
HEICO
Corp
-
Class
A
78
10
Howmet
Aerospace
Inc
92
3
L3Harris
Technologies
Inc
33,222
7,084
Lockheed
Martin
Corp
670
238
Northrop
Grumman
Corp
41
16
Spirit
AeroSystems
Holdings
Inc
97
4
TransDigm
Group
Inc
(d)
46
29
$
7,402
Agriculture
-
0
.02
%
Altria
Group
Inc
3,188
151
Darling
Ingredients
Inc
(d)
27
2
$
153
Airlines
-
0
.01
%
Delta
Air
Lines
Inc
(d)
1,977
77
Apparel
-
0
.38
%
Columbia
Sportswear
Co
7
1
Deckers
Outdoor
Corp
(d)
9
3
Hanesbrands
Inc
610
10
NIKE
Inc
15,615
2,603
Skechers
USA
Inc
(d)
47
2
Tapestry
Inc
89
4
VF
Corp
644
47
$
2,670
Automobile
Manufacturers
-
3
.03
%
Rivian
Automotive
Inc
(d)
12,569
1,303
Rivian
Automotive
Inc
-
Lockup
Shares
(d),(f)
168,367
17,458
Tesla
Inc
(d)
2,502
2,644
TuSimple
Holdings
Inc
(d)
47
2
$
21,407
Automobile
Parts
&
Equipment
-
0
.28
%
Allison
Transmission
Holdings
Inc
254
9
Aptiv
PLC
(d)
9,374
1,546
Aurora
Innovation
Inc
(d)
9,278
105
Aurora
Innovation
Inc
-
Class
B
Lockup
Shares
(d),(f)
28,047
316
QuantumScape
Corp
(d)
539
12
$
1,988
Banks
-
0
.01
%
Citizens
Financial
Group
Inc
230
11
Goldman
Sachs
Group
Inc/The
61
23
Synovus
Financial
Corp
34
2
Western
Alliance
Bancorp
162
17
$
53
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Beverages
-
0
.95
%
Boston
Beer
Co
Inc/The
(d)
28
$
14
Brown-Forman
Corp
-
A
Shares
78
5
Brown-Forman
Corp
-
B
Shares
75,530
5,504
Coca-Cola
Co/The
8,481
502
Monster
Beverage
Corp
(d)
1,066
102
PepsiCo
Inc
3,548
616
$
6,743
Biotechnology
-
0
.46
%
Alnylam
Pharmaceuticals
Inc
(d)
363
61
Amgen
Inc
1,443
325
Certara
Inc
(d)
184
5
CureVac
NV
(d)
163
6
Exelixis
Inc
(d)
780
14
Guardant
Health
Inc
(d)
276
28
Horizon
Therapeutics
Plc
(d)
126
14
Illumina
Inc
(d)
452
172
Incyte
Corp
(d)
489
36
Ionis
Pharmaceuticals
Inc
(d)
398
12
Iovance
Biotherapeutics
Inc
(d)
142
3
Maravai
LifeSciences
Holdings
Inc
(d)
339
14
Mirati
Therapeutics
Inc
(d)
106
15
Moderna
Inc
(d)
1,045
265
Novavax
Inc
(d)
232
33
Regeneron
Pharmaceuticals
Inc
(d)
33
21
Royalty
Pharma
PLC
594
24
Seagen
Inc
(d)
368
57
Ultragenyx
Pharmaceutical
Inc
(d)
147
12
Vertex
Pharmaceuticals
Inc
(d)
9,653
2,120
$
3,237
Building
Materials
-
0
.02
%
Armstrong
World
Industries
Inc
74
9
AZEK
Co
Inc/The
(d)
194
9
Carrier
Global
Corp
1,259
68
Fortune
Brands
Home
&
Security
Inc
107
11
Louisiana-Pacific
Corp
23
2
Trex
Co
Inc
(d)
359
49
$
148
Chemicals
-
1
.59
%
Axalta
Coating
Systems
Ltd
(d)
118
4
Celanese
Corp
126
21
Chemours
Co/The
261
9
Diversey
Holdings
Ltd
(d)
126
2
Dow
Inc
165
9
Ecolab
Inc
678
159
FMC
Corp
99
11
LyondellBasell
Industries
NV
98
9
Olin
Corp
34
2
PPG
Industries
Inc
308
53
RPM
International
Inc
229
23
Sherwin-Williams
Co/The
31,060
10,938
Westlake
Chemical
Corp
21
2
$
11,242
Commercial
Services
-
4
.45
%
Automatic
Data
Processing
Inc
1,211
299
Block
Inc
(d)
5,731
925
Booz
Allen
Hamilton
Holding
Corp
410
35
Bright
Horizons
Family
Solutions
Inc
(d)
149
19
Chegg
Inc
(d)
329
10
Cintas
Corp
24,073
10,669
CoStar
Group
Inc
(d)
1,367
108
Equifax
Inc
143
42
Euronet
Worldwide
Inc
(d)
110
13
FleetCor
Technologies
Inc
(d)
57
13
Gartner
Inc
(d)
248
83
Global
Payments
Inc
31,283
4,229
GXO
Logistics
Inc
(d)
256
23
H&R
Block
Inc
450
11
Legalzoom.com
Inc
(d),(g)
39
1
MarketAxess
Holdings
Inc
1,256
516
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2021
See
accompanying
notes.
174
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
Mister
Car
Wash
Inc
(d),(g)
189
$
3
Moody's
Corp
476
186
Morningstar
Inc
63
21
Paylocity
Holding
Corp
(d)
121
29
PayPal
Holdings
Inc
(d)
62,190
11,728
Robert
Half
International
Inc
297
33
Rollins
Inc
650
22
S&P
Global
Inc
4,721
2,228
Sabre
Corp
(d)
992
8
Shift4
Payments
Inc
(d)
131
8
StoneCo
Ltd
(d)
633
11
TransUnion
404
48
United
Rentals
Inc
(d)
79
26
Verisk
Analytics
Inc
312
71
WEX
Inc
(d)
91
13
$
31,431
Computers
-
4
.47
%
Accenture
PLC
-
Class
A
1,582
656
Apple
Inc
143,810
25,536
Crowdstrike
Holdings
Inc
(d)
607
124
Dell
Technologies
Inc
(d)
413
23
EPAM
Systems
Inc
(d)
167
112
Fortinet
Inc
(d)
13,594
4,885
Genpact
Ltd
30
2
Globant
SA
(d)
124
39
HP
Inc
1,238
47
McAfee
Corp
181
5
NCR
Corp
(d)
140
6
NetApp
Inc
454
42
Pure
Storage
Inc
(d)
754
24
Thoughtworks
Holding
Inc
(d)
44
1
Zscaler
Inc
(d)
243
78
$
31,580
Consumer
Products
-
0
.02
%
Avery
Dennison
Corp
134
29
Church
&
Dwight
Co
Inc
42
4
Clorox
Co/The
310
54
Kimberly-Clark
Corp
524
75
$
162
Cosmetics
&
Personal
Care
-
1
.61
%
Colgate-Palmolive
Co
1,369
117
Estee
Lauder
Cos
Inc/The
30,483
11,285
$
11,402
Distribution
&
Wholesale
-
0
.05
%
Copart
Inc
(d)
642
97
Core
&
Main
Inc
(d)
62
2
Fastenal
Co
1,574
101
IAA
Inc
(d)
415
21
Leslie's
Inc
(d)
337
8
Pool
Corp
121
69
SiteOne
Landscape
Supply
Inc
(d)
70
17
WW
Grainger
Inc
118
61
$
376
Diversified
Financial
Services
-
3
.31
%
American
Express
Co
1,237
202
Ameriprise
Financial
Inc
196
59
Charles
Schwab
Corp/The
15,653
1,316
Credit
Acceptance
Corp
(d)
1
1
Discover
Financial
Services
498
57
LPL
Financial
Holdings
Inc
244
39
Mastercard
Inc
42,099
15,127
Raymond
James
Financial
Inc
30
3
Rocket
Cos
Inc
(g)
431
6
Synchrony
Financial
316
15
T
Rowe
Price
Group
Inc
228
45
Tango
Holdings
Inc
729
53
Upstart
Holdings
Inc
(d)
137
21
UWM
Holdings
Corp
(g)
65
—
Visa
Inc
29,605
6,416
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Diversified
Financial
Services
(continued)
Western
Union
Co/The
324
$
6
$
23,366
Electric
-
0
.00
%
Brookfield
Renewable
Corp
118
4
NRG
Energy
Inc
339
15
$
19
Electrical
Components
&
Equipment
-
0
.01
%
Generac
Holdings
Inc
(d)
191
67
Universal
Display
Corp
131
22
$
89
Electronics
-
0
.59
%
Agilent
Technologies
Inc
842
134
Allegion
plc
209
28
Amphenol
Corp
42,254
3,695
Coherent
Inc
(d)
66
18
Honeywell
International
Inc
464
97
Jabil
Inc
354
25
Keysight
Technologies
Inc
(d)
250
52
Mettler-Toledo
International
Inc
(d)
71
120
Vontier
Corp
282
9
$
4,178
Energy
-
Alternate
Sources
-
0
.02
%
Enphase
Energy
Inc
(d)
406
74
Fluence
Energy
Inc
(d)
42
2
Plug
Power
Inc
(d)
1,574
44
$
120
Engineering
&
Construction
-
0
.00
%
Frontdoor
Inc
(d)
190
7
TopBuild
Corp
(d)
83
23
$
30
Entertainment
-
0
.48
%
Caesars
Entertainment
Inc
(d)
389
36
Churchill
Downs
Inc
112
27
DraftKings
Inc
(d)
26,381
725
Live
Nation
Entertainment
Inc
(d)
15,818
1,893
Madison
Square
Garden
Sports
Corp
(d)
23
4
Penn
National
Gaming
Inc
(d)
31
2
Six
Flags
Entertainment
Corp
(d)
94
4
Vail
Resorts
Inc
123
40
Warner
Music
Group
Corp
14,717
636
$
3,367
Environmental
Control
-
0
.01
%
Waste
Management
Inc
208
35
Food
-
0
.03
%
Beyond
Meat
Inc
(d),(g)
153
10
Hershey
Co/The
387
75
Kellogg
Co
344
22
Lamb
Weston
Holdings
Inc
132
8
Pilgrim's
Pride
Corp
(d)
61
2
Sysco
Corp
1,580
124
$
241
Hand
&
Machine
Tools
-
0
.01
%
Lincoln
Electric
Holdings
Inc
176
25
MSA
Safety
Inc
33
5
Regal
Rexnord
Corp
43
7
$
37
Healthcare
-
Products
-
7
.89
%
10X
Genomics
Inc
(d)
257
38
Abbott
Laboratories
2,682
377
ABIOMED
Inc
(d)
139
50
Adaptive
Biotechnologies
Corp
(d)
299
8
Align
Technology
Inc
(d)
243
160
Avantor
Inc
(d)
71,654
3,019
Bio-Techne
Corp
120
62
Bruker
Corp
315
26
Danaher
Corp
101
33
Edwards
Lifesciences
Corp
(d)
89,582
11,606
Exact
Sciences
Corp
(d)
487
38
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2021
See
accompanying
notes.
175
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Healthcare
-
Products
(continued)
Globus
Medical
Inc
(d)
12
$
1
IDEXX
Laboratories
Inc
(d)
262
173
Insulet
Corp
(d)
204
54
Intuitive
Surgical
Inc
(d)
57,095
20,514
Masimo
Corp
(d)
112
33
Natera
Inc
(d)
237
22
Novocure
Ltd
(d)
316
24
Penumbra
Inc
(d)
104
30
Repligen
Corp
(d)
160
42
ResMed
Inc
400
104
STERIS
PLC
35
9
Stryker
Corp
20,908
5,591
Tandem
Diabetes
Care
Inc
(d)
176
27
Teleflex
Inc
26
9
Thermo
Fisher
Scientific
Inc
20,297
13,543
Waters
Corp
(d)
174
65
West
Pharmaceutical
Services
Inc
227
106
$
55,764
Healthcare
-
Services
-
2
.21
%
agilon
health
Inc
(d)
483
13
Amedisys
Inc
(d)
87
14
Anthem
Inc
3,341
1,549
Catalent
Inc
(d)
117
15
Centene
Corp
(d)
2,306
190
Charles
River
Laboratories
International
Inc
(d)
146
55
Chemed
Corp
11
6
DaVita
Inc
(d)
150
17
Encompass
Health
Corp
172
11
HCA
Healthcare
Inc
12,903
3,315
Humana
Inc
5,053
2,344
IQVIA
Holdings
Inc
(d)
290
82
Molina
Healthcare
Inc
(d)
27
9
Oak
Street
Health
Inc
(d)
273
9
Sotera
Health
Co
(d)
305
7
Syneos
Health
Inc
(d)
42
4
UnitedHealth
Group
Inc
15,900
7,984
$
15,624
Home
Builders
-
0
.02
%
DR
Horton
Inc
424
46
NVR
Inc
(d)
7
41
PulteGroup
Inc
235
14
Thor
Industries
Inc
70
7
Toll
Brothers
Inc
139
10
$
118
Home
Furnishings
-
0
.00
%
Tempur
Sealy
International
Inc
562
26
Housewares
-
0
.00
%
Scotts
Miracle-Gro
Co/The
126
20
Insurance
-
0
.03
%
Alleghany
Corp
(d)
4
3
Aon
PLC
399
120
Arch
Capital
Group
Ltd
(d)
285
13
Brown
&
Brown
Inc
47
3
Erie
Indemnity
Co
56
11
Everest
Re
Group
Ltd
30
8
GoHealth
Inc
(d)
131
—
Lemonade
Inc
(d),(g)
12
—
Lincoln
National
Corp
86
6
Markel
Corp
(d)
7
9
Marsh
&
McLennan
Cos
Inc
186
32
RenaissanceRe
Holdings
Ltd
65
11
$
216
Internet
-
23
.36
%
Alphabet
Inc
-
A
Shares
(d)
8,854
25,651
Alphabet
Inc
-
C
Shares
(d)
9,192
26,598
Amazon.com
Inc
(d)
11,617
38,735
Anaplan
Inc
(d)
434
20
Booking
Holdings
Inc
(d)
1,333
3,199
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Internet
(continued)
CDW
Corp/DE
422
$
86
Chewy
Inc
(d),(g)
101,574
5,990
Coupang
Inc
(d)
42,083
1,236
DoorDash
Inc
-
Class
A
(d)
3,204
477
eBay
Inc
1,936
129
Etsy
Inc
(d)
390
85
Expedia
Group
Inc
(d)
446
81
Farfetch
Ltd
(d)
23,777
795
Figs
Inc
(d),(g)
76
2
GoDaddy
Inc
(d)
55
5
IAC/InterActiveCorp
(d)
10,871
1,421
Lyft
Inc
(d)
897
38
Mandiant
Inc
(d)
219
4
Match
Group
Inc
(d)
80,875
10,696
Meta
Platforms
Inc
(d)
56,547
19,020
Netflix
Inc
(d)
10,190
6,139
NortonLifeLock
Inc
449
12
Okta
Inc
(d)
389
87
Opendoor
Technologies
Inc
(d)
251
4
Palo
Alto
Networks
Inc
(d)
295
164
Pinterest
Inc
(d)
135,279
4,917
Roku
Inc
(d)
363
83
Shopify
Inc
(d)
8,104
11,162
Snap
Inc
Class
A
(d)
85,996
4,044
Spotify
Technology
SA
(d)
16,579
3,880
TripAdvisor
Inc
(d)
195
5
Twitter
Inc
(d)
252
11
Uber
Technologies
Inc
(d)
4,276
179
Vimeo
Inc
(d)
406
7
Wayfair
Inc
(d),(g)
128
24
Wix.com
Ltd
(d)
163
26
Zendesk
Inc
(d)
364
38
Zillow
Group
Inc
-
A
Shares
(d)
182
11
Zillow
Group
Inc
-
C
Shares
(d)
521
33
$
165,094
Iron
&
Steel
-
0
.00
%
Steel
Dynamics
Inc
114
7
Leisure
Products
&
Services
-
0
.11
%
Brunswick
Corp/DE
31
3
Peloton
Interactive
Inc
(d)
20,006
715
Planet
Fitness
Inc
(d)
176
16
Polaris
Inc
123
13
Virgin
Galactic
Holdings
Inc
(d)
496
7
YETI
Holdings
Inc
(d)
263
22
$
776
Lodging
-
0
.05
%
Boyd
Gaming
Corp
(d)
55
4
Choice
Hotels
International
Inc
106
16
Hilton
Worldwide
Holdings
Inc
(d)
566
88
Las
Vegas
Sands
Corp
(d)
1,021
38
Marriott
International
Inc/MD
(d)
840
139
Travel
+
Leisure
Co
173
10
Wyndham
Hotels
&
Resorts
Inc
178
16
Wynn
Resorts
Ltd
(d)
325
28
$
339
Machinery
-
Construction
&
Mining
-
0
.05
%
Caterpillar
Inc
1,444
298
Vertiv
Holdings
Co
992
25
$
323
Machinery
-
Diversified
-
1
.54
%
AGCO
Corp
19
2
Cognex
Corp
528
41
Deere
&
Co
863
296
Graco
Inc
320
26
IDEX
Corp
31,263
7,388
Ingersoll
Rand
Inc
47,667
2,949
Middleby
Corp/The
(d)
53
10
Nordson
Corp
31
8
Rockwell
Automation
Inc
217
76
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2021
See
accompanying
notes.
176
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Machinery
-
Diversified
(continued)
Toro
Co/The
313
$
31
Xylem
Inc/NY
363
44
$
10,871
Media
-
0
.05
%
Altice
USA
Inc
(d)
447
7
Cable
One
Inc
9
16
Charter
Communications
Inc
(d)
367
239
FactSet
Research
Systems
Inc
102
50
Nexstar
Media
Group
Inc
9
2
Walt
Disney
Co/The
(d)
284
44
World
Wrestling
Entertainment
Inc
126
6
$
364
Metal
Fabrication
&
Hardware
-
0
.00
%
Advanced
Drainage
Systems
Inc
185
25
Mining
-
0
.01
%
Freeport-McMoRan
Inc
1,326
55
Southern
Copper
Corp
236
15
$
70
Miscellaneous
Manufacturers
-
0
.06
%
3M
Co
261
46
Axon
Enterprise
Inc
(d)
195
31
Carlisle
Cos
Inc
59
15
Donaldson
Co
Inc
49
3
Illinois
Tool
Works
Inc
872
215
Parker-Hannifin
Corp
66
21
Trane
Technologies
PLC
358
72
$
403
Office
&
Business
Equipment
-
0
.01
%
Zebra
Technologies
Corp
(d)
165
98
Oil
&
Gas
-
0
.02
%
Continental
Resources
Inc/OK
21
1
Coterra
Energy
Inc
353
7
Diamondback
Energy
Inc
263
28
EOG
Resources
Inc
213
19
Hess
Corp
60
4
Occidental
Petroleum
Corp
331
10
Pioneer
Natural
Resources
Co
297
54
Texas
Pacific
Land
Corp
18
22
$
145
Oil
&
Gas
Services
-
0
.00
%
Halliburton
Co
150
3
Packaging
&
Containers
-
0
.01
%
Ball
Corp
294
28
Crown
Holdings
Inc
50
6
Graphic
Packaging
Holding
Co
259
5
Sealed
Air
Corp
254
17
$
56
Pharmaceuticals
-
4
.47
%
AbbVie
Inc
5,466
740
Becton
Dickinson
and
Co
7,201
1,811
Cardinal
Health
Inc
530
27
Cigna
Corp
25,792
5,923
Dexcom
Inc
(d)
19,588
10,518
Eli
Lilly
&
Co
2,072
572
Herbalife
Nutrition
Ltd
(d)
56
2
McKesson
Corp
71
18
Neurocrine
Biosciences
Inc
(d)
284
24
Sarepta
Therapeutics
Inc
(d)
257
23
Zoetis
Inc
48,718
11,889
$
31,547
Pipelines
-
0
.01
%
Cheniere
Energy
Inc
727
74
New
Fortress
Energy
Inc
84
2
$
76
Private
Equity
-
0
.04
%
Ares
Management
Corp
385
31
Blackstone
Inc
2,101
272
$
303
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Real
Estate
-
0
.00
%
CBRE
Group
Inc
60
$
7
REITs
-
1
.76
%
American
Tower
Corp
1,396
408
Crown
Castle
International
Corp
1,334
278
Equinix
Inc
197
167
Equity
LifeStyle
Properties
Inc
283
25
Extra
Space
Storage
Inc
38
9
Iron
Mountain
Inc
623
32
Lamar
Advertising
Co
231
28
Public
Storage
358
134
SBA
Communications
Corp
28,805
11,206
Simon
Property
Group
Inc
876
140
$
12,427
Retail
-
4
.81
%
AutoZone
Inc
(d)
14
29
Bath
&
Body
Works
Inc
433
30
Best
Buy
Co
Inc
177
18
Burlington
Stores
Inc
(d)
193
56
CarMax
Inc
(d)
46
6
Carvana
Co
(d)
7,894
1,829
Chipotle
Mexican
Grill
Inc
(d)
1,130
1,975
Costco
Wholesale
Corp
17,034
9,671
Darden
Restaurants
Inc
271
41
Dollar
General
Corp
15,344
3,619
Domino's
Pizza
Inc
78
44
Five
Below
Inc
(d)
169
35
Floor
&
Decor
Holdings
Inc
(d)
313
41
Freshpet
Inc
(d)
125
12
GameStop
Corp
(d),(g)
196
29
Home
Depot
Inc/The
3,290
1,365
Lithia
Motors
Inc
6
2
Lowe's
Cos
Inc
2,145
554
Lululemon
Athletica
Inc
(d)
22,298
8,729
McDonald's
Corp
411
110
Nordstrom
Inc
(d)
286
7
Olaplex
Holdings
Inc
(d)
48
1
O'Reilly
Automotive
Inc
(d)
63
45
Petco
Health
&
Wellness
Co
Inc
(d)
23
—
RH
(d)
53
28
Ross
Stores
Inc
40,421
4,620
Starbucks
Corp
3,646
427
Target
Corp
676
156
TJX
Cos
Inc/The
3,723
283
Tractor
Supply
Co
351
84
Ulta
Beauty
Inc
(d)
166
68
Victoria's
Secret
&
Co
(d)
139
8
Vroom
Inc
(d)
93
1
Wendy's
Co/The
529
13
Williams-Sonoma
Inc
175
30
Yum
China
Holdings
Inc
106
5
Yum!
Brands
Inc
74
10
$
33,981
Savings
&
Loans
-
0
.00
%
Sterling
Bancorp/DE
48
1
Semiconductors
-
4
.43
%
Advanced
Micro
Devices
Inc
(d)
20,938
3,013
Allegro
MicroSystems
Inc
(d)
140
5
Analog
Devices
Inc
660
116
Applied
Materials
Inc
2,788
439
ASML
Holding
NV
-
NY
Reg
Shares
6,535
5,203
Azenta
Inc
186
19
Broadcom
Inc
1,234
821
Entegris
Inc
415
58
GLOBALFOUNDRIES
Inc
(d)
85
6
IPG
Photonics
Corp
(d)
9
2
KLA
Corp
470
202
Lam
Research
Corp
436
314
Microchip
Technology
Inc
1,418
123
Micron
Technology
Inc
477
44
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2021
See
accompanying
notes.
177
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Semiconductors
(continued)
MKS
Instruments
Inc
143
$
25
Monolithic
Power
Systems
Inc
140
69
NVIDIA
Corp
23,554
6,928
NXP
Semiconductors
NV
55,241
12,583
ON
Semiconductor
Corp
(d)
707
48
QUALCOMM
Inc
3,490
638
Skyworks
Solutions
Inc
240
37
Teradyne
Inc
504
82
Texas
Instruments
Inc
1,768
333
Xilinx
Inc
760
161
$
31,269
Software
-
24
.03
%
Adobe
Inc
(d)
17,648
10,008
Alteryx
Inc
(d)
180
11
ANSYS
Inc
(d)
112
45
Aspen
Technology
Inc
(d)
209
32
Atlassian
Corp
PLC
(d)
430
164
Autodesk
Inc
(d)
36,924
10,382
Avalara
Inc
(d)
261
34
Bentley
Systems
Inc
415
20
Bill.com
Holdings
Inc
(d)
283
70
Broadridge
Financial
Solutions
Inc
324
59
C3.ai
Inc
(d)
48
1
Cadence
Design
Systems
Inc
(d)
850
158
CDK
Global
Inc
58
2
Citrix
Systems
Inc
134
13
Cloudflare
Inc
(d)
750
99
Coupa
Software
Inc
(d)
28,432
4,494
Datadog
Inc
(d)
786
140
Definitive
Healthcare
Corp
(d)
21
1
DocuSign
Inc
(d)
596
91
DoubleVerify
Holdings
Inc
(d)
159
5
Dropbox
Inc
-
A
Shares
(d)
942
23
Duck
Creek
Technologies
Inc
(d)
52
2
Dynatrace
Inc
(d)
569
34
Elastic
NV
(d)
226
28
Everbridge
Inc
(d)
117
8
Fair
Isaac
Corp
(d)
82
36
Fiserv
Inc
(d)
38,725
4,019
Five9
Inc
(d)
206
28
HashiCorp
Inc
(d)
2,394
218
HubSpot
Inc
(d)
138
91
Informatica
Inc
(d)
74
3
Intuit
Inc
39,902
25,666
Jack
Henry
&
Associates
Inc
59
10
Jamf
Holding
Corp
(d)
155
6
Magic
Leap
Inc
(d),(e),(f)
371
7
Manhattan
Associates
Inc
(d)
104
16
Microsoft
Corp
159,802
53,745
MongoDB
Inc
(d)
5,073
2,686
MSCI
Inc
176
108
nCino
Inc
(d)
172
9
New
Relic
Inc
(d)
159
17
Nuance
Communications
Inc
(d)
333
18
Nutanix
Inc
(d)
650
21
Oracle
Corp
4,760
415
Palantir
Technologies
Inc
(d)
5,130
93
Paychex
Inc
869
119
Paycom
Software
Inc
(d)
157
65
Paycor
HCM
Inc
(d)
51
1
Pegasystems
Inc
117
13
Playtika
Holding
Corp
(d)
318
5
Procore
Technologies
Inc
(d),(g)
132
11
PTC
Inc
(d)
324
39
RingCentral
Inc
(d)
252
47
Roper
Technologies
Inc
16,212
7,974
salesforce.com
Inc
(d)
33,756
8,578
SentinelOne
Inc
(d)
25,620
1,294
ServiceNow
Inc
(d)
30,889
20,050
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
Skillz
Inc
(d),(g)
946
$
7
Smartsheet
Inc
(d)
371
29
Snowflake
Inc
-
Class
A
(d)
1,940
657
Splunk
Inc
(d)
14,548
1,684
Stripe
Inc
-
Class
B
(d),(e),(f)
5,754
372
Synopsys
Inc
(d)
8,525
3,141
Take-Two
Interactive
Software
Inc
(d)
70
12
Teradata
Corp
(d)
285
12
Twilio
Inc
(d)
144
38
Tyler
Technologies
Inc
(d)
109
59
UiPath
Inc
(d)
25,302
1,091
UIPATH
Inc
-
Class
A
(d),(f)
5,842
252
Unity
Software
Inc
(d)
464
66
Veeva
Systems
Inc
(d)
34,557
8,829
VMware
Inc
255
30
Workday
Inc
(d)
3,636
993
Zoom
Video
Communications
Inc
(d)
6,300
1,159
Zynga
Inc
(d)
1,511
10
$
169,773
Telecommunications
-
0
.02
%
Arista
Networks
Inc
(d)
668
96
CommScope
Holding
Co
Inc
(d)
620
7
Corning
Inc
794
30
Switch
Inc
354
10
Ubiquiti
Inc
20
6
$
149
Toys,
Games
&
Hobbies
-
0
.00
%
Mattel
Inc
(d)
1,040
22
Transportation
-
0
.16
%
CH
Robinson
Worldwide
Inc
84
9
Expeditors
International
of
Washington
Inc
377
51
FedEx
Corp
329
85
JB
Hunt
Transport
Services
Inc
229
47
Landstar
System
Inc
100
18
Old
Dominion
Freight
Line
Inc
291
104
Union
Pacific
Corp
1,258
317
United
Parcel
Service
Inc
2,239
480
XPO
Logistics
Inc
(d)
257
20
$
1,131
TOTAL
COMMON
STOCKS
$
692,704
Total
Investments
$
712,559
Other
Assets
and
Liabilities
- (0.84)%
(
5,903
)
TOTAL
NET
ASSETS
-
100.00%
$
706,656
(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
$6,194
or
0.88%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs,
in
good
faith
by
the
Manager,
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
(f)
Restricted
Security.
Please
see
Restricted
Securities
sub-schedule
for
additional
information.
(g)
Security
or
a
portion
of
the
security
was
on
loan. At
the
end
of
the
period,
the
value
of
these
securities
totaled
$6,011
or
0.85%
of
net
assets.
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2021
See
accompanying
notes.
178
Portfolio
Summary (unaudited)
Sector
Percent
Technology
33
.04
%
Communications
23
.45
%
Consumer,
Non-cyclical
22
.11
%
Consumer,
Cyclical
9
.25
%
Financial
5
.15
%
Industrial
3
.51
%
Money
Market
Funds
2
.48
%
Basic
Materials
1
.63
%
Investment
Companies
0
.17
%
Energy
0
.05
%
Utilities
0
.00
%
Other
Assets
and
Liabilities
(
0
.84
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
6,012
$
157,441
$
148,870
$
14,583
$
6,012
$
157,441
$
148,870
$
14,583
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Restricted
Securities
Security
Name
Acquisition
Date
Cost
Value
Percent
of
Net
Assets
Aurora
Innovation
Inc
-
Class
B
Lockup
Shares
11/08/2021
$
119
$
316
0.04%
Magic
Leap
Inc
01/20/2016-10/12/20217
182
7
0.00%
Nuro
-
Series
C
0.00%
10/30/2020
228
363
0.05%
Rappi
Inc
-
Series
E
0.00%
09/08/2020
306
331
0.05%
Rivian
Automotive
Inc
-
Lockup
Shares
11/10/2021
2,674
17,458
2.47%
Sila
Nano
Series
F
0.00%
01/07/2021
203
203
0.03%
Stripe
Inc
-
Class
B
12/17/2019
90
372
0.05%
UIPATH
Inc
-
Class
A
04/21/2021
289
252
0.04%
Waymo
LLC
Series
A-2
0.00%
05/08/2020
214
229
0.03%
Total
$
19,531
2.76%
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini;
March
2022
Long
23
$
5,472
$
64
Total
$
64
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2021
See
accompanying
notes.
179
INVESTMENT
COMPANIES
-
3
.07
%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0
.22
%
iShares
Core
S&P
500
ETF
15,016
$
7,162
Money
Market
Funds
-
2
.85
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
91,328,668
91,329
TOTAL
INVESTMENT
COMPANIES
$
98,491
COMMON
STOCKS
-
97
.12
%
Shares
Held
Value
(000's)
Advertising
-
0
.07
%
Interpublic
Group
of
Cos
Inc/The
30,410
$
1,139
Omnicom
Group
Inc
16,417
1,203
$
2,342
Aerospace
&
Defense
-
1
.30
%
Boeing
Co/The
(b)
42,666
8,590
General
Dynamics
Corp
17,898
3,731
Howmet
Aerospace
Inc
29,697
945
L3Harris
Technologies
Inc
15,155
3,232
Lockheed
Martin
Corp
18,957
6,738
Northrop
Grumman
Corp
11,510
4,455
Raytheon
Technologies
Corp
115,603
9,949
Teledyne
Technologies
Inc
(b)
3,603
1,574
TransDigm
Group
Inc
(b)
4,043
2,572
$
41,786
Agriculture
-
0
.66
%
Altria
Group
Inc
141,878
6,724
Archer-Daniels-Midland
Co
43,207
2,920
Philip
Morris
International
Inc
120,239
11,423
$
21,067
Airlines
-
0
.20
%
Alaska
Air
Group
Inc
(b)
9,677
504
American
Airlines
Group
Inc
(b)
50,009
898
Delta
Air
Lines
Inc
(b)
49,430
1,932
Southwest
Airlines
Co
(b)
45,715
1,958
United
Airlines
Holdings
Inc
(b)
25,008
1,095
$
6,387
Apparel
-
0
.65
%
NIKE
Inc
98,688
16,448
PVH
Corp
5,488
585
Ralph
Lauren
Corp
3,763
447
Tapestry
Inc
21,252
863
Under
Armour
Inc
-
Class
A
(b)
14,569
309
Under
Armour
Inc
-
Class
C
(b)
16,610
300
VF
Corp
25,178
1,844
$
20,796
Automobile
Manufacturers
-
2
.62
%
Cummins
Inc
11,047
2,410
Ford
Motor
Co
303,172
6,297
General
Motors
Co
(b)
112,131
6,574
PACCAR
Inc
26,813
2,367
Tesla
Inc
(b)
62,826
66,393
$
84,041
Automobile
Parts
&
Equipment
-
0
.13
%
Aptiv
PLC
(b)
20,892
3,446
BorgWarner
Inc
18,518
835
$
4,281
Banks
-
4
.73
%
Bank
of
America
Corp
556,238
24,747
Bank
of
New
York
Mellon
Corp/The
58,680
3,408
Citigroup
Inc
153,253
9,255
Citizens
Financial
Group
Inc
32,916
1,555
Comerica
Inc
10,129
881
Fifth
Third
Bancorp
52,810
2,300
First
Republic
Bank/CA
13,844
2,859
Goldman
Sachs
Group
Inc/The
26,218
10,030
Huntington
Bancshares
Inc/OH
111,716
1,723
JPMorgan
Chase
&
Co
228,247
36,143
KeyCorp
71,910
1,663
M&T
Bank
Corp
9,938
1,526
Morgan
Stanley
110,871
10,883
Northern
Trust
Corp
16,039
1,918
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Banks
(continued)
PNC
Financial
Services
Group
Inc/The
32,643
$
6,546
Regions
Financial
Corp
73,625
1,605
Signature
Bank/New
York
NY
4,682
1,515
State
Street
Corp
28,237
2,626
SVB
Financial
Group
(b)
4,532
3,074
Truist
Financial
Corp
103,097
6,036
US
Bancorp
104,214
5,854
Wells
Fargo
&
Co
307,950
14,775
Zions
Bancorp
NA
12,085
763
$
151,685
Beverages
-
1
.37
%
Brown-Forman
Corp
-
B
Shares
14,112
1,028
Coca-Cola
Co/The
300,243
17,777
Constellation
Brands
Inc
12,687
3,184
Molson
Coors
Beverage
Co
14,551
674
Monster
Beverage
Corp
(b)
29,015
2,787
PepsiCo
Inc
106,786
18,550
$
44,000
Biotechnology
-
1
.42
%
Amgen
Inc
43,504
9,787
Biogen
Inc
(b)
11,345
2,722
Bio-Rad
Laboratories
Inc
(b)
1,669
1,261
Corteva
Inc
56,297
2,662
Gilead
Sciences
Inc
96,879
7,035
Illumina
Inc
(b)
12,072
4,593
Incyte
Corp
(b)
14,500
1,064
Moderna
Inc
(b)
27,243
6,919
Regeneron
Pharmaceuticals
Inc
(b)
8,165
5,156
Vertex
Pharmaceuticals
Inc
(b)
19,637
4,312
$
45,511
Building
Materials
-
0
.46
%
Carrier
Global
Corp
66,929
3,630
Fortune
Brands
Home
&
Security
Inc
10,483
1,121
Johnson
Controls
International
plc
54,736
4,451
Martin
Marietta
Materials
Inc
4,818
2,122
Masco
Corp
18,853
1,324
Vulcan
Materials
Co
10,248
2,127
$
14,775
Chemicals
-
1
.64
%
Air
Products
and
Chemicals
Inc
17,096
5,202
Albemarle
Corp
9,034
2,112
Celanese
Corp
8,408
1,413
CF
Industries
Holdings
Inc
16,567
1,173
Dow
Inc
57,124
3,240
DuPont
de
Nemours
Inc
40,016
3,232
Eastman
Chemical
Co
10,383
1,255
Ecolab
Inc
19,254
4,517
FMC
Corp
9,790
1,076
International
Flavors
&
Fragrances
Inc
19,657
2,961
Linde
PLC
39,586
13,714
LyondellBasell
Industries
NV
20,306
1,873
Mosaic
Co/The
28,607
1,124
PPG
Industries
Inc
18,334
3,161
Sherwin-Williams
Co/The
18,631
6,561
$
52,614
Commercial
Services
-
2
.01
%
Automatic
Data
Processing
Inc
32,546
8,025
Cintas
Corp
6,789
3,009
Equifax
Inc
9,422
2,759
FleetCor
Technologies
Inc
(b)
6,271
1,404
Gartner
Inc
(b)
6,352
2,124
Global
Payments
Inc
22,410
3,029
IHS
Markit
Ltd
30,803
4,094
MarketAxess
Holdings
Inc
2,937
1,208
Moody's
Corp
12,491
4,879
Nielsen
Holdings
PLC
27,710
568
PayPal
Holdings
Inc
(b)
90,743
17,112
Quanta
Services
Inc
11,005
1,262
Robert
Half
International
Inc
8,599
959
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2021
See
accompanying
notes.
180
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
Rollins
Inc
17,480
$
598
S&P
Global
Inc
18,613
8,784
United
Rentals
Inc
(b)
5,590
1,857
Verisk
Analytics
Inc
12,446
2,847
$
64,518
Computers
-
8
.26
%
Accenture
PLC
-
Class
A
48,785
20,224
Apple
Inc
1,203,773
213,754
Cognizant
Technology
Solutions
Corp
40,566
3,599
DXC
Technology
Co
(b)
19,480
627
EPAM
Systems
Inc
(b)
4,381
2,928
Fortinet
Inc
(b)
10,480
3,767
Hewlett
Packard
Enterprise
Co
101,024
1,593
HP
Inc
89,014
3,353
International
Business
Machines
Corp
69,262
9,258
Leidos
Holdings
Inc
10,840
964
NetApp
Inc
17,271
1,589
Seagate
Technology
Holdings
PLC
15,820
1,787
Western
Digital
Corp
(b)
24,067
1,569
$
265,012
Consumer
Products
-
0
.27
%
Avery
Dennison
Corp
6,393
1,385
Church
&
Dwight
Co
Inc
18,858
1,933
Clorox
Co/The
9,488
1,654
Kimberly-Clark
Corp
26,004
3,716
$
8,688
Cosmetics
&
Personal
Care
-
1
.33
%
Colgate-Palmolive
Co
65,095
5,555
Estee
Lauder
Cos
Inc/The
17,894
6,624
Procter
&
Gamble
Co/The
(d)
186,902
30,574
$
42,753
Distribution
&
Wholesale
-
0
.31
%
Copart
Inc
(b)
16,480
2,499
Fastenal
Co
44,421
2,846
LKQ
Corp
20,713
1,243
Pool
Corp
3,096
1,752
WW
Grainger
Inc
3,343
1,732
$
10,072
Diversified
Financial
Services
-
3
.53
%
American
Express
Co
48,457
7,928
Ameriprise
Financial
Inc
8,642
2,607
BlackRock
Inc
11,029
10,098
Capital
One
Financial
Corp
32,873
4,770
Cboe
Global
Markets
Inc
8,235
1,074
Charles
Schwab
Corp/The
116,110
9,765
CME
Group
Inc
27,756
6,341
Discover
Financial
Services
22,636
2,616
Franklin
Resources
Inc
21,702
727
Intercontinental
Exchange
Inc
43,512
5,951
Invesco
Ltd
26,358
607
Mastercard
Inc
67,000
24,074
Nasdaq
Inc
9,040
1,898
Raymond
James
Financial
Inc
14,303
1,436
Synchrony
Financial
42,268
1,961
T
Rowe
Price
Group
Inc
17,358
3,413
Visa
Inc
129,521
28,068
$
113,334
Electric
-
2
.28
%
AES
Corp/The
51,492
1,251
Alliant
Energy
Corp
19,335
1,188
Ameren
Corp
19,895
1,771
American
Electric
Power
Co
Inc
38,898
3,461
CenterPoint
Energy
Inc
48,568
1,356
CMS
Energy
Corp
22,373
1,455
Consolidated
Edison
Inc
27,320
2,331
Dominion
Energy
Inc
62,551
4,914
DTE
Energy
Co
14,961
1,788
Duke
Energy
Corp
59,409
6,232
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Electric
(continued)
Edison
International
29,340
$
2,002
Entergy
Corp
15,522
1,749
Evergy
Inc
17,709
1,215
Eversource
Energy
26,552
2,416
Exelon
Corp
75,558
4,364
FirstEnergy
Corp
42,046
1,749
NextEra
Energy
Inc
151,541
14,148
NRG
Energy
Inc
18,909
815
Pinnacle
West
Capital
Corp
8,713
615
PPL
Corp
57,982
1,743
Public
Service
Enterprise
Group
Inc
39,053
2,606
Sempra
Energy
24,662
3,262
Southern
Co/The
81,852
5,613
WEC
Energy
Group
Inc
24,362
2,365
Xcel
Energy
Inc
41,603
2,817
$
73,226
Electrical
Components
&
Equipment
-
0
.27
%
AMETEK
Inc
17,865
2,627
Emerson
Electric
Co
46,169
4,292
Generac
Holdings
Inc
(b)
4,873
1,715
$
8,634
Electronics
-
1
.10
%
Agilent
Technologies
Inc
23,380
3,733
Allegion
plc
6,926
917
Amphenol
Corp
46,187
4,040
Fortive
Corp
27,693
2,113
Garmin
Ltd
11,733
1,598
Honeywell
International
Inc
53,170
11,086
Keysight
Technologies
Inc
(b)
14,226
2,938
Mettler-Toledo
International
Inc
(b)
1,776
3,014
TE
Connectivity
Ltd
25,203
4,066
Trimble
Inc
(b)
19,385
1,690
$
35,195
Energy
-
Alternate
Sources
-
0
.10
%
Enphase
Energy
Inc
(b)
10,418
1,906
SolarEdge
Technologies
Inc
(b)
4,055
1,137
$
3,043
Engineering
&
Construction
-
0
.04
%
Jacobs
Engineering
Group
Inc
10,064
1,401
Entertainment
-
0
.11
%
Caesars
Entertainment
Inc
(b)
16,510
1,544
Live
Nation
Entertainment
Inc
(b)
10,432
1,249
Penn
National
Gaming
Inc
(b)
12,829
665
$
3,458
Environmental
Control
-
0
.25
%
Pentair
PLC
12,779
933
Republic
Services
Inc
16,164
2,254
Waste
Management
Inc
29,724
4,961
$
8,148
Food
-
0
.93
%
Campbell
Soup
Co
15,634
679
Conagra
Brands
Inc
37,047
1,265
General
Mills
Inc
46,778
3,152
Hershey
Co/The
11,228
2,172
Hormel
Foods
Corp
21,789
1,064
J
M
Smucker
Co/The
8,368
1,137
Kellogg
Co
19,759
1,273
Kraft
Heinz
Co/The
54,831
1,968
Kroger
Co/The
52,266
2,366
Lamb
Weston
Holdings
Inc
11,281
715
McCormick
&
Co
Inc/MD
19,257
1,860
Mondelez
International
Inc
107,738
7,144
Sysco
Corp
39,593
3,110
Tyson
Foods
Inc
22,769
1,985
$
29,890
Forest
Products
&
Paper
-
0
.04
%
International
Paper
Co
29,911
1,405
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2021
See
accompanying
notes.
181
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Gas
-
0
.06
%
Atmos
Energy
Corp
10,227
$
1,072
NiSource
Inc
30,329
837
$
1,909
Hand
&
Machine
Tools
-
0
.10
%
Snap-on
Inc
4,149
893
Stanley
Black
&
Decker
Inc
12,591
2,375
$
3,268
Healthcare
-
Products
-
3
.98
%
Abbott
Laboratories
136,570
19,221
ABIOMED
Inc
(b)
3,513
1,262
Align
Technology
Inc
(b)
5,664
3,722
Baxter
International
Inc
38,669
3,319
Bio-Techne
Corp
3,035
1,570
Boston
Scientific
Corp
(b)
110,056
4,675
Cooper
Cos
Inc/The
3,808
1,595
Danaher
Corp
49,117
16,160
DENTSPLY
SIRONA
Inc
16,883
942
Edwards
Lifesciences
Corp
(b)
48,219
6,247
Henry
Schein
Inc
(b)
10,711
830
Hologic
Inc
(b)
19,576
1,499
IDEXX
Laboratories
Inc
(b)
6,550
4,313
Intuitive
Surgical
Inc
(b)
27,569
9,906
Medtronic
PLC
103,941
10,753
PerkinElmer
Inc
9,746
1,960
ResMed
Inc
11,254
2,931
STERIS
PLC
7,724
1,880
Stryker
Corp
25,930
6,934
Teleflex
Inc
3,617
1,188
Thermo
Fisher
Scientific
Inc
30,434
20,307
Waters
Corp
(b)
4,714
1,756
West
Pharmaceutical
Services
Inc
5,722
2,684
Zimmer
Biomet
Holdings
Inc
16,134
2,050
$
127,704
Healthcare
-
Services
-
2
.21
%
Anthem
Inc
18,747
8,690
Catalent
Inc
(b)
13,221
1,693
Centene
Corp
(b)
45,065
3,713
Charles
River
Laboratories
International
Inc
(b)
3,898
1,469
DaVita
Inc
(b)
5,037
573
HCA
Healthcare
Inc
18,496
4,752
Humana
Inc
9,927
4,605
IQVIA
Holdings
Inc
(b)
14,755
4,163
Laboratory
Corp
of
America
Holdings
(b)
7,391
2,322
Quest
Diagnostics
Inc
9,474
1,639
UnitedHealth
Group
Inc
72,742
36,527
Universal
Health
Services
Inc
5,647
732
$
70,878
Home
Builders
-
0
.24
%
DR
Horton
Inc
25,173
2,730
Lennar
Corp
-
A
Shares
20,997
2,439
NVR
Inc
(b)
254
1,501
PulteGroup
Inc
19,556
1,118
$
7,788
Home
Furnishings
-
0
.04
%
Whirlpool
Corp
4,691
1,101
Housewares
-
0
.02
%
Newell
Brands
Inc
29,240
639
Insurance
-
3
.10
%
Aflac
Inc
47,006
2,745
Allstate
Corp/The
22,142
2,605
American
International
Group
Inc
64,128
3,646
Aon
PLC
17,017
5,115
Arthur
J
Gallagher
&
Co
16,008
2,716
Assurant
Inc
4,401
686
Berkshire
Hathaway
Inc
-
Class
B
(b)
141,445
42,292
Brown
&
Brown
Inc
18,103
1,272
Chubb
Ltd
33,268
6,431
Cincinnati
Financial
Corp
11,573
1,319
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
(continued)
Everest
Re
Group
Ltd
3,041
$
833
Globe
Life
Inc
7,175
672
Hartford
Financial
Services
Group
Inc/The
26,287
1,815
Lincoln
National
Corp
13,121
896
Loews
Corp
15,480
894
Marsh
&
McLennan
Cos
Inc
38,996
6,778
MetLife
Inc
55,221
3,451
Principal
Financial
Group
Inc
19,040
1,377
Progressive
Corp/The
45,186
4,638
Prudential
Financial
Inc
29,195
3,160
Travelers
Cos
Inc/The
19,000
2,972
W
R
Berkley
Corp
10,779
888
Willis
Towers
Watson
PLC
9,624
2,286
$
99,487
Internet
-
10
.94
%
Alphabet
Inc
-
A
Shares
(b)
23,232
67,304
Alphabet
Inc
-
C
Shares
(b)
21,596
62,490
Amazon.com
Inc
(b)
33,686
112,321
Booking
Holdings
Inc
(b)
3,171
7,608
CDW
Corp/DE
10,482
2,146
eBay
Inc
48,349
3,215
Etsy
Inc
(b)
9,791
2,144
Expedia
Group
Inc
(b)
11,276
2,038
F5
Inc
(b)
4,657
1,140
Match
Group
Inc
(b)
21,862
2,891
Meta
Platforms
Inc
(b)
182,757
61,470
Netflix
Inc
(b)
34,211
20,610
NortonLifeLock
Inc
44,930
1,167
Twitter
Inc
(b)
61,756
2,669
VeriSign
Inc
(b)
7,464
1,895
$
351,108
Iron
&
Steel
-
0
.08
%
Nucor
Corp
22,075
2,520
Leisure
Products
&
Services
-
0
.10
%
Carnival
Corp
(b)
62,131
1,250
Norwegian
Cruise
Line
Holdings
Ltd
(b)
28,578
593
Royal
Caribbean
Cruises
Ltd
(b)
17,316
1,331
$
3,174
Lodging
-
0
.31
%
Hilton
Worldwide
Holdings
Inc
(b)
21,526
3,358
Las
Vegas
Sands
Corp
(b)
26,551
1,000
Marriott
International
Inc/MD
(b)
21,128
3,491
MGM
Resorts
International
30,063
1,349
Wynn
Resorts
Ltd
(b)
8,127
691
$
9,889
Machinery
-
Construction
&
Mining
-
0
.27
%
Caterpillar
Inc
41,780
8,638
Machinery
-
Diversified
-
0
.68
%
Deere
&
Co
21,792
7,472
Dover
Corp
11,119
2,019
IDEX
Corp
5,871
1,387
Ingersoll
Rand
Inc
31,478
1,948
Otis
Worldwide
Corp
32,808
2,857
Rockwell
Automation
Inc
8,957
3,125
Westinghouse
Air
Brake
Technologies
Corp
14,430
1,329
Xylem
Inc/NY
13,926
1,670
$
21,807
Media
-
1
.63
%
Charter
Communications
Inc
(b)
9,555
6,230
Comcast
Corp
-
Class
A
352,146
17,723
Discovery
Inc
-
A
Shares
(b)
13,068
308
Discovery
Inc
-
C
Shares
(b)
23,457
537
DISH
Network
Corp
(b)
19,285
626
FactSet
Research
Systems
Inc
2,907
1,413
Fox
Corp
-
A
Shares
24,743
913
Fox
Corp
-
B
Shares
11,358
389
News
Corp
-
A
Shares
30,355
677
News
Corp
-
B
Shares
9,404
212
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2021
See
accompanying
notes.
182
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Media
(continued)
ViacomCBS
Inc
-
Class
B
46,857
$
1,414
Walt
Disney
Co/The
(b)
140,342
21,737
$
52,179
Mining
-
0
.27
%
Freeport-McMoRan
Inc
113,415
4,733
Newmont
Corp
61,588
3,819
$
8,552
Miscellaneous
Manufacturers
-
1
.11
%
3M
Co
44,507
7,906
A
O
Smith
Corp
10,286
883
Eaton
Corp
PLC
30,785
5,320
General
Electric
Co
84,812
8,012
Illinois
Tool
Works
Inc
22,061
5,445
Parker-Hannifin
Corp
9,970
3,172
Textron
Inc
17,025
1,314
Trane
Technologies
PLC
18,345
3,706
$
35,758
Office
&
Business
Equipment
-
0
.08
%
Zebra
Technologies
Corp
(b)
4,128
2,457
Oil
&
Gas
-
2
.18
%
APA
Corp
28,058
755
Chevron
Corp
148,883
17,471
ConocoPhillips
101,868
7,353
Coterra
Energy
Inc
62,835
1,194
Devon
Energy
Corp
48,626
2,142
Diamondback
Energy
Inc
13,152
1,418
EOG
Resources
Inc
45,187
4,014
Exxon
Mobil
Corp
326,973
20,008
Hess
Corp
21,289
1,576
Marathon
Oil
Corp
60,129
987
Marathon
Petroleum
Corp
47,545
3,042
Occidental
Petroleum
Corp
68,527
1,987
Phillips
66
33,841
2,452
Pioneer
Natural
Resources
Co
17,535
3,189
Valero
Energy
Corp
31,575
2,372
$
69,960
Oil
&
Gas
Services
-
0
.20
%
Baker
Hughes
Co
67,506
1,624
Halliburton
Co
69,132
1,581
Schlumberger
NV
108,329
3,245
$
6,450
Packaging
&
Containers
-
0
.20
%
Amcor
PLC
118,413
1,422
Ball
Corp
25,017
2,408
Packaging
Corp
of
America
7,336
999
Sealed
Air
Corp
11,444
772
Westrock
Co
20,621
915
$
6,516
Pharmaceuticals
-
5
.10
%
AbbVie
Inc
136,539
18,487
AmerisourceBergen
Corp
11,554
1,535
Becton
Dickinson
and
Co
22,180
5,578
Bristol-Myers
Squibb
Co
171,429
10,689
Cardinal
Health
Inc
21,764
1,121
Cigna
Corp
25,597
5,878
CVS
Health
Corp
101,952
10,517
Dexcom
Inc
(b)
7,485
4,019
Eli
Lilly
&
Co
61,321
16,938
Johnson
&
Johnson
203,323
34,783
McKesson
Corp
11,792
2,931
Merck
&
Co
Inc
195,086
14,951
Organon
&
Co
19,581
596
Pfizer
Inc
433,501
25,598
Viatris
Inc
93,405
1,264
Zoetis
Inc
36,540
8,917
$
163,802
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pipelines
-
0
.21
%
Kinder
Morgan
Inc
150,604
$
2,388
ONEOK
Inc
34,441
2,024
Williams
Cos
Inc/The
93,840
2,444
$
6,856
Real
Estate
-
0
.09
%
CBRE
Group
Inc
25,848
2,805
REITs
-
2
.60
%
Alexandria
Real
Estate
Equities
Inc
10,891
2,428
American
Tower
Corp
35,172
10,288
AvalonBay
Communities
Inc
10,792
2,726
Boston
Properties
Inc
10,978
1,264
Crown
Castle
International
Corp
33,379
6,968
Digital
Realty
Trust
Inc
21,916
3,876
Duke
Realty
Corp
29,414
1,931
Equinix
Inc
6,954
5,882
Equity
Residential
26,356
2,385
Essex
Property
Trust
Inc
5,026
1,770
Extra
Space
Storage
Inc
10,340
2,344
Federal
Realty
Investment
Trust
5,406
737
Healthpeak
Properties
Inc
41,634
1,503
Host
Hotels
&
Resorts
Inc
(b)
55,147
959
Iron
Mountain
Inc
22,362
1,170
Kimco
Realty
Corp
47,608
1,174
Mid-America
Apartment
Communities
Inc
8,893
2,040
Prologis
Inc
57,100
9,613
Public
Storage
11,782
4,413
Realty
Income
Corp
43,695
3,128
Regency
Centers
Corp
11,900
897
SBA
Communications
Corp
8,402
3,269
Simon
Property
Group
Inc
25,379
4,055
UDR
Inc
22,446
1,347
Ventas
Inc
30,829
1,576
Vornado
Realty
Trust
12,279
514
Welltower
Inc
33,617
2,883
Weyerhaeuser
Co
57,850
2,382
$
83,522
Retail
-
5
.18
%
Advance
Auto
Parts
Inc
4,866
1,167
AutoZone
Inc
(b)
1,621
3,398
Bath
&
Body
Works
Inc
20,418
1,425
Best
Buy
Co
Inc
17,098
1,737
CarMax
Inc
(b)
12,521
1,631
Chipotle
Mexican
Grill
Inc
(b)
2,173
3,799
Costco
Wholesale
Corp
34,123
19,372
Darden
Restaurants
Inc
10,024
1,510
Dollar
General
Corp
18,019
4,250
Dollar
Tree
Inc
(b)
17,372
2,441
Domino's
Pizza
Inc
2,811
1,586
Gap
Inc/The
16,558
292
Genuine
Parts
Co
11,000
1,542
Home
Depot
Inc/The
81,511
33,828
Lowe's
Cos
Inc
53,480
13,824
McDonald's
Corp
57,712
15,471
O'Reilly
Automotive
Inc
(b)
5,205
3,676
Ross
Stores
Inc
27,447
3,137
Starbucks
Corp
91,135
10,660
Target
Corp
37,694
8,724
TJX
Cos
Inc/The
92,878
7,051
Tractor
Supply
Co
8,790
2,097
Ulta
Beauty
Inc
(b)
4,199
1,731
Walgreens
Boots
Alliance
Inc
55,489
2,894
Walmart
Inc
109,837
15,892
Yum!
Brands
Inc
22,641
3,144
$
166,279
Savings
&
Loans
-
0
.02
%
People's
United
Financial
Inc
33,056
589
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2021
See
accompanying
notes.
183
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Semiconductors
-
6
.11
%
Advanced
Micro
Devices
Inc
(b)
93,269
$
13,421
Analog
Devices
Inc
41,505
7,295
Applied
Materials
Inc
69,737
10,974
Broadcom
Inc
31,790
21,153
Intel
Corp
314,109
16,177
IPG
Photonics
Corp
(b)
2,759
475
KLA
Corp
11,712
5,037
Lam
Research
Corp
10,875
7,821
Microchip
Technology
Inc
42,853
3,731
Micron
Technology
Inc
86,396
8,048
Monolithic
Power
Systems
Inc
3,346
1,651
NVIDIA
Corp
193,082
56,787
NXP
Semiconductors
NV
20,538
4,678
Qorvo
Inc
(b)
8,513
1,331
QUALCOMM
Inc
86,503
15,819
Skyworks
Solutions
Inc
12,754
1,979
Teradyne
Inc
12,590
2,059
Texas
Instruments
Inc
71,326
13,443
Xilinx
Inc
19,143
4,059
$
195,938
Shipbuilding
-
0
.02
%
Huntington
Ingalls
Industries
Inc
3,093
578
Software
-
10
.22
%
Activision
Blizzard
Inc
60,155
4,002
Adobe
Inc
(b)
36,747
20,838
Akamai
Technologies
Inc
(b)
12,548
1,469
ANSYS
Inc
(b)
6,739
2,703
Autodesk
Inc
(b)
16,979
4,774
Broadridge
Financial
Solutions
Inc
9,002
1,646
Cadence
Design
Systems
Inc
(b)
21,404
3,989
Ceridian
HCM
Holding
Inc
(b)
10,519
1,099
Cerner
Corp
22,725
2,110
Citrix
Systems
Inc
9,632
911
Electronic
Arts
Inc
21,843
2,881
Fidelity
National
Information
Services
Inc
47,032
5,133
Fiserv
Inc
(b)
45,894
4,763
Intuit
Inc
21,870
14,067
Jack
Henry
&
Associates
Inc
5,719
955
Microsoft
Corp
579,868
195,021
MSCI
Inc
6,368
3,902
Oracle
Corp
124,569
10,864
Paychex
Inc
24,785
3,383
Paycom
Software
Inc
(b)
3,718
1,544
PTC
Inc
(b)
8,158
988
Roper
Technologies
Inc
8,147
4,007
salesforce.com
Inc
(b)
75,610
19,215
ServiceNow
Inc
(b)
15,370
9,977
Synopsys
Inc
(b)
11,778
4,340
Take-Two
Interactive
Software
Inc
(b)
8,905
1,583
Tyler
Technologies
Inc
(b)
3,164
1,702
$
327,866
Telecommunications
-
2
.06
%
Arista
Networks
Inc
(b)
17,324
2,490
AT&T
Inc
551,525
13,567
Cisco
Systems
Inc/Delaware
325,742
20,642
Corning
Inc
59,319
2,208
Juniper
Networks
Inc
25,114
897
Lumen
Technologies
Inc
71,172
893
Motorola
Solutions
Inc
13,043
3,544
T-Mobile
US
Inc
(b)
45,340
5,259
Verizon
Communications
Inc
319,759
16,615
$
66,115
Textiles
-
0
.02
%
Mohawk
Industries
Inc
(b)
4,237
772
Toys,
Games
&
Hobbies
-
0
.03
%
Hasbro
Inc
10,014
1,019
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Transportation
-
1
.50
%
CH
Robinson
Worldwide
Inc
10,039
$
1,081
CSX
Corp
171,304
6,441
Expeditors
International
of
Washington
Inc
13,083
1,757
FedEx
Corp
18,876
4,882
JB
Hunt
Transport
Services
Inc
6,487
1,326
Norfolk
Southern
Corp
18,795
5,595
Old
Dominion
Freight
Line
Inc
7,195
2,579
Union
Pacific
Corp
49,653
12,509
United
Parcel
Service
Inc
56,314
12,070
$
48,240
Water
-
0
.08
%
American
Water
Works
Co
Inc
14,020
2,648
TOTAL
COMMON
STOCKS
$
3,116,873
Total
Investments
$
3,215,364
Other
Assets
and
Liabilities
- (0.19)%
(
6,115
)
TOTAL
NET
ASSETS
-
100.00%
$
3,209,249
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
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
$6,437
or
0.20%
of
net
assets.
Portfolio
Summary (unaudited)
Sector
Percent
Technology
24
.67
%
Consumer,
Non-cyclical
19
.28
%
Communications
14
.70
%
Financial
14
.07
%
Consumer,
Cyclical
9
.96
%
Industrial
7
.30
%
Money
Market
Funds
2
.85
%
Energy
2
.69
%
Utilities
2
.42
%
Basic
Materials
2
.03
%
Investment
Companies
0
.22
%
Other
Assets
and
Liabilities
(
0
.19
)
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2021
See
accompanying
notes.
184
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
49,065
$
576,504
$
534,240
$
91,329
$
49,065
$
576,504
$
534,240
$
91,329
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
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
2022
Long
383
$
91,125
$
2,798
Total
$
2,798
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2021
See
accompanying
notes.
185
INVESTMENT
COMPANIES
-
7
.15
%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0
.10
%
iShares
Core
S&P
500
ETF
516
$
246
Money
Market
Funds
-
7
.05
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
16,905,060
16,905
TOTAL
INVESTMENT
COMPANIES
$
17,151
COMMON
STOCKS
-
93
.05
%
Shares
Held
Value
(000's)
Advertising
-
0
.07
%
Interpublic
Group
of
Cos
Inc/The
2,177
$
82
Omnicom
Group
Inc
1,176
86
$
168
Aerospace
&
Defense
-
1
.25
%
Boeing
Co/The
(b)
3,055
615
General
Dynamics
Corp
1,281
267
Howmet
Aerospace
Inc
2,129
68
L3Harris
Technologies
Inc
1,085
231
Lockheed
Martin
Corp
1,357
482
Northrop
Grumman
Corp
825
319
Raytheon
Technologies
Corp
8,280
713
Teledyne
Technologies
Inc
(b)
258
113
TransDigm
Group
Inc
(b)
290
185
$
2,993
Agriculture
-
0
.63
%
Altria
Group
Inc
10,162
482
Archer-Daniels-Midland
Co
3,093
209
Philip
Morris
International
Inc
8,610
818
$
1,509
Airlines
-
0
.19
%
Alaska
Air
Group
Inc
(b)
692
36
American
Airlines
Group
Inc
(b)
3,581
64
Delta
Air
Lines
Inc
(b)
3,539
138
Southwest
Airlines
Co
(b)
3,273
140
United
Airlines
Holdings
Inc
(b)
1,790
79
$
457
Apparel
-
0
.62
%
NIKE
Inc
7,067
1,178
PVH
Corp
392
42
Ralph
Lauren
Corp
269
32
Tapestry
Inc
1,523
62
Under
Armour
Inc
-
Class
A
(b)
1,039
22
Under
Armour
Inc
-
Class
C
(b)
1,189
21
VF
Corp
1,802
132
$
1,489
Automobile
Manufacturers
-
2
.51
%
Cummins
Inc
791
173
Ford
Motor
Co
21,712
451
General
Motors
Co
(b)
8,030
471
PACCAR
Inc
1,919
169
Tesla
Inc
(b)
4,499
4,754
$
6,018
Automobile
Parts
&
Equipment
-
0
.13
%
Aptiv
PLC
(b)
1,496
247
BorgWarner
Inc
1,325
59
$
306
Banks
-
4
.53
%
Bank
of
America
Corp
39,839
1,773
Bank
of
New
York
Mellon
Corp/The
4,204
244
Citigroup
Inc
10,977
663
Citizens
Financial
Group
Inc
2,356
111
Comerica
Inc
725
63
Fifth
Third
Bancorp
3,783
165
First
Republic
Bank/CA
990
205
Goldman
Sachs
Group
Inc/The
1,877
718
Huntington
Bancshares
Inc/OH
8,001
123
JPMorgan
Chase
&
Co
16,347
2,589
KeyCorp
5,151
119
M&T
Bank
Corp
711
109
Morgan
Stanley
7,942
780
Northern
Trust
Corp
1,148
137
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Banks
(continued)
PNC
Financial
Services
Group
Inc/The
2,338
$
469
Regions
Financial
Corp
5,272
115
Signature
Bank/New
York
NY
334
108
State
Street
Corp
2,021
188
SVB
Financial
Group
(b)
325
220
Truist
Financial
Corp
7,383
432
US
Bancorp
7,463
419
Wells
Fargo
&
Co
22,057
1,058
Zions
Bancorp
NA
866
55
$
10,863
Beverages
-
1
.31
%
Brown-Forman
Corp
-
B
Shares
1,010
74
Coca-Cola
Co/The
21,503
1,273
Constellation
Brands
Inc
909
228
Molson
Coors
Beverage
Co
1,041
48
Monster
Beverage
Corp
(b)
2,077
200
PepsiCo
Inc
7,647
1,328
$
3,151
Biotechnology
-
1
.36
%
Amgen
Inc
3,117
701
Biogen
Inc
(b)
812
195
Bio-Rad
Laboratories
Inc
(b)
120
91
Corteva
Inc
4,033
191
Gilead
Sciences
Inc
6,937
504
Illumina
Inc
(b)
865
329
Incyte
Corp
(b)
1,037
76
Moderna
Inc
(b)
1,950
495
Regeneron
Pharmaceuticals
Inc
(b)
585
369
Vertex
Pharmaceuticals
Inc
(b)
1,406
309
$
3,260
Building
Materials
-
0
.44
%
Carrier
Global
Corp
4,792
260
Fortune
Brands
Home
&
Security
Inc
750
80
Johnson
Controls
International
plc
3,921
319
Martin
Marietta
Materials
Inc
346
152
Masco
Corp
1,351
95
Vulcan
Materials
Co
733
152
$
1,058
Chemicals
-
1
.57
%
Air
Products
and
Chemicals
Inc
1,223
372
Albemarle
Corp
646
151
Celanese
Corp
603
101
CF
Industries
Holdings
Inc
1,185
84
Dow
Inc
4,092
232
DuPont
de
Nemours
Inc
2,867
232
Eastman
Chemical
Co
744
90
Ecolab
Inc
1,378
323
FMC
Corp
701
77
International
Flavors
&
Fragrances
Inc
1,406
212
Linde
PLC
2,835
982
LyondellBasell
Industries
NV
1,456
134
Mosaic
Co/The
2,048
81
PPG
Industries
Inc
1,312
226
Sherwin-Williams
Co/The
1,334
470
$
3,767
Commercial
Services
-
1
.93
%
Automatic
Data
Processing
Inc
2,331
575
Cintas
Corp
486
215
Equifax
Inc
674
197
FleetCor
Technologies
Inc
(b)
449
101
Gartner
Inc
(b)
455
152
Global
Payments
Inc
1,606
217
IHS
Markit
Ltd
2,205
293
MarketAxess
Holdings
Inc
210
86
Moody's
Corp
895
350
Nielsen
Holdings
PLC
1,984
41
PayPal
Holdings
Inc
(b)
6,498
1,225
Quanta
Services
Inc
788
90
Robert
Half
International
Inc
615
69
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2021
See
accompanying
notes.
186
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
Rollins
Inc
1,251
$
43
S&P
Global
Inc
1,333
629
United
Rentals
Inc
(b)
400
133
Verisk
Analytics
Inc
890
204
$
4,620
Computers
-
7
.91
%
Accenture
PLC
-
Class
A
3,495
1,449
Apple
Inc
86,210
15,308
Cognizant
Technology
Solutions
Corp
2,904
258
DXC
Technology
Co
(b)
1,395
45
EPAM
Systems
Inc
(b)
314
210
Fortinet
Inc
(b)
749
269
Hewlett
Packard
Enterprise
Co
7,234
114
HP
Inc
6,376
240
International
Business
Machines
Corp
4,959
663
Leidos
Holdings
Inc
776
69
NetApp
Inc
1,236
114
Seagate
Technology
Holdings
PLC
1,133
128
Western
Digital
Corp
(b)
1,723
112
$
18,979
Consumer
Products
-
0
.26
%
Avery
Dennison
Corp
457
99
Church
&
Dwight
Co
Inc
1,352
139
Clorox
Co/The
679
118
Kimberly-Clark
Corp
1,862
266
$
622
Cosmetics
&
Personal
Care
-
1
.28
%
Colgate-Palmolive
Co
4,661
398
Estee
Lauder
Cos
Inc/The
1,282
474
Procter
&
Gamble
Co/The
13,386
2,190
$
3,062
Distribution
&
Wholesale
-
0
.30
%
Copart
Inc
(b)
1,179
179
Fastenal
Co
3,180
204
LKQ
Corp
1,485
89
Pool
Corp
223
126
WW
Grainger
Inc
240
124
$
722
Diversified
Financial
Services
-
3
.38
%
American
Express
Co
3,471
568
Ameriprise
Financial
Inc
619
187
BlackRock
Inc
791
724
Capital
One
Financial
Corp
2,355
342
Cboe
Global
Markets
Inc
589
77
Charles
Schwab
Corp/The
8,315
699
CME
Group
Inc
1,987
454
Discover
Financial
Services
1,622
187
Franklin
Resources
Inc
1,551
52
Intercontinental
Exchange
Inc
3,115
426
Invesco
Ltd
1,887
44
Mastercard
Inc
4,799
1,724
Nasdaq
Inc
647
136
Raymond
James
Financial
Inc
1,024
103
Synchrony
Financial
3,028
141
T
Rowe
Price
Group
Inc
1,243
244
Visa
Inc
9,277
2,010
$
8,118
Electric
-
2
.19
%
AES
Corp/The
3,687
90
Alliant
Energy
Corp
1,384
85
Ameren
Corp
1,424
127
American
Electric
Power
Co
Inc
2,785
248
CenterPoint
Energy
Inc
3,477
97
CMS
Energy
Corp
1,601
104
Consolidated
Edison
Inc
1,956
167
Dominion
Energy
Inc
4,479
352
DTE
Energy
Co
1,071
128
Duke
Energy
Corp
4,254
446
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Electric
(continued)
Edison
International
2,101
$
143
Entergy
Corp
1,111
125
Evergy
Inc
1,267
87
Eversource
Energy
1,901
173
Exelon
Corp
5,411
312
FirstEnergy
Corp
3,010
125
NextEra
Energy
Inc
10,852
1,013
NRG
Energy
Inc
1,354
58
Pinnacle
West
Capital
Corp
623
44
PPL
Corp
4,154
125
Public
Service
Enterprise
Group
Inc
2,796
187
Sempra
Energy
1,766
234
Southern
Co/The
5,861
402
WEC
Energy
Group
Inc
1,744
169
Xcel
Energy
Inc
2,979
202
$
5,243
Electrical
Components
&
Equipment
-
0
.26
%
AMETEK
Inc
1,278
188
Emerson
Electric
Co
3,306
307
Generac
Holdings
Inc
(b)
350
123
$
618
Electronics
-
1
.05
%
Agilent
Technologies
Inc
1,674
267
Allegion
plc
495
66
Amphenol
Corp
3,307
289
Fortive
Corp
1,982
151
Garmin
Ltd
840
114
Honeywell
International
Inc
3,807
794
Keysight
Technologies
Inc
(b)
1,018
210
Mettler-Toledo
International
Inc
(b)
127
216
TE
Connectivity
Ltd
1,805
291
Trimble
Inc
(b)
1,387
121
$
2,519
Energy
-
Alternate
Sources
-
0
.09
%
Enphase
Energy
Inc
(b)
746
136
SolarEdge
Technologies
Inc
(b)
289
81
$
217
Engineering
&
Construction
-
0
.04
%
Jacobs
Engineering
Group
Inc
720
100
Entertainment
-
0
.10
%
Caesars
Entertainment
Inc
(b)
1,181
110
Live
Nation
Entertainment
Inc
(b)
747
89
Penn
National
Gaming
Inc
(b)
918
48
$
247
Environmental
Control
-
0
.24
%
Pentair
PLC
913
67
Republic
Services
Inc
1,158
161
Waste
Management
Inc
2,130
356
$
584
Food
-
0
.89
%
Campbell
Soup
Co
1,119
49
Conagra
Brands
Inc
2,653
91
General
Mills
Inc
3,349
226
Hershey
Co/The
803
155
Hormel
Foods
Corp
1,559
76
J
M
Smucker
Co/The
599
81
Kellogg
Co
1,414
91
Kraft
Heinz
Co/The
3,926
141
Kroger
Co/The
3,744
169
Lamb
Weston
Holdings
Inc
807
51
McCormick
&
Co
Inc/MD
1,378
133
Mondelez
International
Inc
7,715
512
Sysco
Corp
2,835
223
Tyson
Foods
Inc
1,630
142
$
2,140
Forest
Products
&
Paper
-
0
.04
%
International
Paper
Co
2,143
101
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2021
See
accompanying
notes.
187
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Gas
-
0
.06
%
Atmos
Energy
Corp
732
$
77
NiSource
Inc
2,171
60
$
137
Hand
&
Machine
Tools
-
0
.10
%
Snap-on
Inc
296
64
Stanley
Black
&
Decker
Inc
901
170
$
234
Healthcare
-
Products
-
3
.81
%
Abbott
Laboratories
9,780
1,376
ABIOMED
Inc
(b)
252
91
Align
Technology
Inc
(b)
407
267
Baxter
International
Inc
2,768
238
Bio-Techne
Corp
217
112
Boston
Scientific
Corp
(b)
7,881
335
Cooper
Cos
Inc/The
274
115
Danaher
Corp
3,516
1,157
DENTSPLY
SIRONA
Inc
1,209
67
Edwards
Lifesciences
Corp
(b)
3,453
447
Henry
Schein
Inc
(b)
767
59
Hologic
Inc
(b)
1,402
107
IDEXX
Laboratories
Inc
(b)
470
310
Intuitive
Surgical
Inc
(b)
1,973
709
Medtronic
PLC
7,443
770
PerkinElmer
Inc
697
140
ResMed
Inc
805
210
STERIS
PLC
553
135
Stryker
Corp
1,856
496
Teleflex
Inc
258
85
Thermo
Fisher
Scientific
Inc
2,180
1,455
Waters
Corp
(b)
338
126
West
Pharmaceutical
Services
Inc
410
192
Zimmer
Biomet
Holdings
Inc
1,155
147
$
9,146
Healthcare
-
Services
-
2
.12
%
Anthem
Inc
1,344
623
Catalent
Inc
(b)
946
121
Centene
Corp
(b)
3,226
266
Charles
River
Laboratories
International
Inc
(b)
280
106
DaVita
Inc
(b)
361
41
HCA
Healthcare
Inc
1,325
340
Humana
Inc
711
330
IQVIA
Holdings
Inc
(b)
1,056
298
Laboratory
Corp
of
America
Holdings
(b)
529
166
Quest
Diagnostics
Inc
678
117
UnitedHealth
Group
Inc
5,210
2,616
Universal
Health
Services
Inc
405
53
$
5,077
Home
Builders
-
0
.23
%
DR
Horton
Inc
1,802
196
Lennar
Corp
-
A
Shares
1,504
175
NVR
Inc
(b)
18
106
PulteGroup
Inc
1,402
80
$
557
Home
Furnishings
-
0
.03
%
Whirlpool
Corp
336
79
Housewares
-
0
.02
%
Newell
Brands
Inc
2,093
46
Insurance
-
2
.97
%
Aflac
Inc
3,367
197
Allstate
Corp/The
1,587
187
American
International
Group
Inc
4,593
261
Aon
PLC
1,218
366
Arthur
J
Gallagher
&
Co
1,146
194
Assurant
Inc
315
49
Berkshire
Hathaway
Inc
-
Class
B
(b)
10,131
3,029
Brown
&
Brown
Inc
1,296
91
Chubb
Ltd
2,384
461
Cincinnati
Financial
Corp
828
94
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
(continued)
Everest
Re
Group
Ltd
218
$
60
Globe
Life
Inc
514
48
Hartford
Financial
Services
Group
Inc/The
1,883
130
Lincoln
National
Corp
940
64
Loews
Corp
1,110
64
Marsh
&
McLennan
Cos
Inc
2,793
485
MetLife
Inc
3,956
247
Principal
Financial
Group
Inc
1,364
99
Progressive
Corp/The
3,235
332
Prudential
Financial
Inc
2,092
226
Travelers
Cos
Inc/The
1,360
213
W
R
Berkley
Corp
772
64
Willis
Towers
Watson
PLC
689
164
$
7,125
Internet
-
10
.48
%
Alphabet
Inc
-
A
Shares
(b)
1,664
4,821
Alphabet
Inc
-
C
Shares
(b)
1,546
4,473
Amazon.com
Inc
(b)
2,412
8,042
Booking
Holdings
Inc
(b)
227
545
CDW
Corp/DE
750
154
eBay
Inc
3,463
230
Etsy
Inc
(b)
701
153
Expedia
Group
Inc
(b)
806
146
F5
Inc
(b)
332
81
Match
Group
Inc
(b)
1,565
207
Meta
Platforms
Inc
(b)
13,090
4,403
Netflix
Inc
(b)
2,450
1,476
NortonLifeLock
Inc
3,217
84
Twitter
Inc
(b)
4,422
191
VeriSign
Inc
(b)
534
135
$
25,141
Iron
&
Steel
-
0
.08
%
Nucor
Corp
1,582
181
Leisure
Products
&
Services
-
0
.09
%
Carnival
Corp
(b)
4,448
90
Norwegian
Cruise
Line
Holdings
Ltd
(b)
2,041
42
Royal
Caribbean
Cruises
Ltd
(b)
1,239
95
$
227
Lodging
-
0
.30
%
Hilton
Worldwide
Holdings
Inc
(b)
1,541
240
Las
Vegas
Sands
Corp
(b)
1,901
72
Marriott
International
Inc/MD
(b)
1,512
250
MGM
Resorts
International
2,154
97
Wynn
Resorts
Ltd
(b)
581
49
$
708
Machinery
-
Construction
&
Mining
-
0
.26
%
Caterpillar
Inc
2,993
619
Machinery
-
Diversified
-
0
.65
%
Deere
&
Co
1,561
535
Dover
Corp
795
144
IDEX
Corp
420
99
Ingersoll
Rand
Inc
2,253
139
Otis
Worldwide
Corp
2,350
205
Rockwell
Automation
Inc
641
224
Westinghouse
Air
Brake
Technologies
Corp
1,033
95
Xylem
Inc/NY
996
120
$
1,561
Media
-
1
.56
%
Charter
Communications
Inc
(b)
685
447
Comcast
Corp
-
Class
A
25,222
1,269
Discovery
Inc
-
A
Shares
(b)
932
22
Discovery
Inc
-
C
Shares
(b)
1,675
38
DISH
Network
Corp
(b)
1,380
45
FactSet
Research
Systems
Inc
208
101
Fox
Corp
-
A
Shares
1,773
65
Fox
Corp
-
B
Shares
814
28
News
Corp
-
A
Shares
2,173
49
News
Corp
-
B
Shares
670
15
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2021
See
accompanying
notes.
188
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Media
(continued)
ViacomCBS
Inc
-
Class
B
3,355
$
101
Walt
Disney
Co/The
(b)
10,050
1,557
$
3,737
Mining
-
0
.26
%
Freeport-McMoRan
Inc
8,122
339
Newmont
Corp
4,410
273
$
612
Miscellaneous
Manufacturers
-
1
.07
%
3M
Co
3,188
566
A
O
Smith
Corp
736
63
Eaton
Corp
PLC
2,203
381
General
Electric
Co
6,073
574
Illinois
Tool
Works
Inc
1,580
390
Parker-Hannifin
Corp
713
227
Textron
Inc
1,220
94
Trane
Technologies
PLC
1,312
265
$
2,560
Office
&
Business
Equipment
-
0
.07
%
Zebra
Technologies
Corp
(b)
296
176
Oil
&
Gas
-
2
.09
%
APA
Corp
2,010
54
Chevron
Corp
10,663
1,251
ConocoPhillips
7,296
527
Coterra
Energy
Inc
4,499
85
Devon
Energy
Corp
3,482
153
Diamondback
Energy
Inc
941
102
EOG
Resources
Inc
3,235
287
Exxon
Mobil
Corp
(d)
23,417
1,433
Hess
Corp
1,524
113
Marathon
Oil
Corp
4,306
71
Marathon
Petroleum
Corp
3,406
218
Occidental
Petroleum
Corp
4,907
142
Phillips
66
2,423
176
Pioneer
Natural
Resources
Co
1,255
228
Valero
Energy
Corp
2,260
170
$
5,010
Oil
&
Gas
Services
-
0
.19
%
Baker
Hughes
Co
4,834
116
Halliburton
Co
4,951
113
Schlumberger
NV
7,758
233
$
462
Packaging
&
Containers
-
0
.19
%
Amcor
PLC
8,481
102
Ball
Corp
1,792
173
Packaging
Corp
of
America
524
71
Sealed
Air
Corp
820
55
Westrock
Co
1,476
65
$
466
Pharmaceuticals
-
4
.89
%
AbbVie
Inc
9,777
1,324
AmerisourceBergen
Corp
827
110
Becton
Dickinson
and
Co
1,588
399
Bristol-Myers
Squibb
Co
12,277
765
Cardinal
Health
Inc
1,559
80
Cigna
Corp
1,833
421
CVS
Health
Corp
7,300
753
Dexcom
Inc
(b)
536
288
Eli
Lilly
&
Co
4,391
1,213
Johnson
&
Johnson
14,561
2,491
McKesson
Corp
844
210
Merck
&
Co
Inc
13,971
1,071
Organon
&
Co
1,402
43
Pfizer
Inc
31,047
1,833
Viatris
Inc
6,688
91
Zoetis
Inc
2,616
638
$
11,730
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pipelines
-
0
.20
%
Kinder
Morgan
Inc
10,785
$
171
ONEOK
Inc
2,466
145
Williams
Cos
Inc/The
6,720
175
$
491
Real
Estate
-
0
.08
%
CBRE
Group
Inc
1,851
201
REITs
-
2
.49
%
Alexandria
Real
Estate
Equities
Inc
779
174
American
Tower
Corp
2,518
736
AvalonBay
Communities
Inc
772
195
Boston
Properties
Inc
786
90
Crown
Castle
International
Corp
2,389
499
Digital
Realty
Trust
Inc
1,569
277
Duke
Realty
Corp
2,105
138
Equinix
Inc
498
421
Equity
Residential
1,886
171
Essex
Property
Trust
Inc
360
127
Extra
Space
Storage
Inc
740
168
Federal
Realty
Investment
Trust
386
53
Healthpeak
Properties
Inc
2,981
108
Host
Hotels
&
Resorts
Inc
(b)
3,948
69
Iron
Mountain
Inc
1,600
84
Kimco
Realty
Corp
3,409
84
Mid-America
Apartment
Communities
Inc
637
146
Prologis
Inc
4,088
688
Public
Storage
843
316
Realty
Income
Corp
3,129
224
Regency
Centers
Corp
851
64
SBA
Communications
Corp
603
235
Simon
Property
Group
Inc
1,817
290
UDR
Inc
1,606
96
Ventas
Inc
2,207
113
Vornado
Realty
Trust
879
37
Welltower
Inc
2,407
206
Weyerhaeuser
Co
4,142
170
$
5,979
Retail
-
4
.97
%
Advance
Auto
Parts
Inc
348
84
AutoZone
Inc
(b)
116
243
Bath
&
Body
Works
Inc
1,461
102
Best
Buy
Co
Inc
1,225
124
CarMax
Inc
(b)
896
117
Chipotle
Mexican
Grill
Inc
(b)
156
273
Costco
Wholesale
Corp
2,444
1,387
Darden
Restaurants
Inc
718
108
Dollar
General
Corp
1,291
304
Dollar
Tree
Inc
(b)
1,244
175
Domino's
Pizza
Inc
202
114
Gap
Inc/The
1,185
21
Genuine
Parts
Co
788
111
Home
Depot
Inc/The
5,839
2,423
Lowe's
Cos
Inc
3,831
990
McDonald's
Corp
4,132
1,108
O'Reilly
Automotive
Inc
(b)
374
264
Ross
Stores
Inc
1,966
225
Starbucks
Corp
6,526
763
Target
Corp
2,700
625
TJX
Cos
Inc/The
6,652
505
Tractor
Supply
Co
630
150
Ulta
Beauty
Inc
(b)
302
125
Walgreens
Boots
Alliance
Inc
3,973
207
Walmart
Inc
7,867
1,138
Yum!
Brands
Inc
1,622
225
$
11,911
Savings
&
Loans
-
0
.02
%
People's
United
Financial
Inc
2,367
42
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2021
See
accompanying
notes.
189
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Semiconductors
-
5
.85
%
Advanced
Micro
Devices
Inc
(b)
6,681
$
961
Analog
Devices
Inc
2,972
522
Applied
Materials
Inc
4,996
786
Broadcom
Inc
2,277
1,515
Intel
Corp
22,495
1,159
IPG
Photonics
Corp
(b)
197
34
KLA
Corp
840
361
Lam
Research
Corp
780
561
Microchip
Technology
Inc
3,068
267
Micron
Technology
Inc
6,188
576
Monolithic
Power
Systems
Inc
239
118
NVIDIA
Corp
13,827
4,067
NXP
Semiconductors
NV
1,470
335
Qorvo
Inc
(b)
609
95
QUALCOMM
Inc
6,196
1,133
Skyworks
Solutions
Inc
912
142
Teradyne
Inc
901
147
Texas
Instruments
Inc
5,107
963
Xilinx
Inc
1,370
291
$
14,033
Shipbuilding
-
0
.02
%
Huntington
Ingalls
Industries
Inc
221
41
Software
-
9
.79
%
Activision
Blizzard
Inc
4,307
287
Adobe
Inc
(b)
2,632
1,492
Akamai
Technologies
Inc
(b)
897
105
ANSYS
Inc
(b)
483
194
Autodesk
Inc
(b)
1,215
342
Broadridge
Financial
Solutions
Inc
644
118
Cadence
Design
Systems
Inc
(b)
1,532
285
Ceridian
HCM
Holding
Inc
(b)
752
79
Cerner
Corp
1,630
151
Citrix
Systems
Inc
689
65
Electronic
Arts
Inc
1,564
206
Fidelity
National
Information
Services
Inc
3,369
368
Fiserv
Inc
(b)
3,286
341
Intuit
Inc
1,566
1,007
Jack
Henry
&
Associates
Inc
409
68
Microsoft
Corp
(d)
41,529
13,967
MSCI
Inc
456
279
Oracle
Corp
8,923
778
Paychex
Inc
1,775
242
Paycom
Software
Inc
(b)
267
111
PTC
Inc
(b)
583
71
Roper
Technologies
Inc
583
287
salesforce.com
Inc
(b)
5,414
1,376
ServiceNow
Inc
(b)
1,101
715
Synopsys
Inc
(b)
843
311
Take-Two
Interactive
Software
Inc
(b)
638
113
Tyler
Technologies
Inc
(b)
228
123
$
23,481
Telecommunications
-
1
.97
%
Arista
Networks
Inc
(b)
1,240
178
AT&T
Inc
39,499
972
Cisco
Systems
Inc/Delaware
23,329
1,478
Corning
Inc
4,248
158
Juniper
Networks
Inc
1,798
64
Lumen
Technologies
Inc
5,098
64
Motorola
Solutions
Inc
934
254
T-Mobile
US
Inc
(b)
3,246
377
Verizon
Communications
Inc
22,901
1,190
$
4,735
Textiles
-
0
.02
%
Mohawk
Industries
Inc
(b)
303
55
Toys,
Games
&
Hobbies
-
0
.03
%
Hasbro
Inc
716
73
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Transportation
-
1
.44
%
CH
Robinson
Worldwide
Inc
719
$
77
CSX
Corp
12,269
461
Expeditors
International
of
Washington
Inc
936
126
FedEx
Corp
1,352
350
JB
Hunt
Transport
Services
Inc
464
95
Norfolk
Southern
Corp
1,346
401
Old
Dominion
Freight
Line
Inc
516
185
Union
Pacific
Corp
3,556
896
United
Parcel
Service
Inc
4,032
864
$
3,455
Water
-
0
.08
%
American
Water
Works
Co
Inc
1,003
189
TOTAL
COMMON
STOCKS
$
223,208
TOTAL
PURCHASED
OPTIONS
-
0.25%
$
605
Total
Investments
$
240,964
Other
Assets
and
Liabilities
- (0.45)%
(
1,069
)
TOTAL
NET
ASSETS
-
100.00%
$
239,895
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
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
$2,393
or
1.00%
of
net
assets.
Portfolio
Summary (unaudited)
Sector
Percent
Technology
23
.62
%
Consumer,
Non-cyclical
18
.48
%
Communications
14
.08
%
Financial
13
.47
%
Consumer,
Cyclical
9
.54
%
Money
Market
Funds
7
.05
%
Industrial
7
.01
%
Energy
2
.57
%
Utilities
2
.33
%
Basic
Materials
1
.95
%
Purchased
Options
0
.25
%
Investment
Companies
0
.10
%
Other
Assets
and
Liabilities
(
0
.45
)
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2021
See
accompanying
notes.
190
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
15,820
$
89,439
$
88,354
$
16,905
$
15,820
$
89,439
$
88,354
$
16,905
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
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
$
4,800
.00
01/24/2022
$
358
$
376
$
18
Put
-
S&P
500
Index
N/A
200
20
$
4,500
.00
01/24/2022
1,797
229
(
1,568
)
Total
$
2,155
$
605
$
(
1,550
)
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
$
4,830
.00
01/24/2022
$
(
271
)
$
(
240
)
$
31
Put
-
S&P
500
Index
N/A
200
20
$
4,450
.00
01/24/2022
(
1,511
)
(
181
)
1,330
Total
$
(
1,782
)
$
(
421
)
$
1,361
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
2022
Long
26
$
6,186
$
217
Total
$
217
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
MidCap
Account
December
31,
2021
See
accompanying
notes.
191
INVESTMENT
COMPANIES
-
0
.27
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0
.27
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
1,988,155
$
1,988
TOTAL
INVESTMENT
COMPANIES
$
1,988
COMMON
STOCKS
-
100
.06
%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
5
.78
%
HEICO
Corp
-
Class
A
114,149
$
14,671
TransDigm
Group
Inc
(b)
45,048
28,663
$
43,334
Banks
-
0
.75
%
First
Republic
Bank/CA
27,303
5,638
Beverages
-
0
.20
%
Brown-Forman
Corp
-
B
Shares
20,431
1,489
Building
Materials
-
4
.51
%
Martin
Marietta
Materials
Inc
21,933
9,662
Summit
Materials
Inc
(b)
119,971
4,815
Vulcan
Materials
Co
93,096
19,325
$
33,802
Chemicals
-
0
.97
%
Air
Products
and
Chemicals
Inc
13,148
4,000
Perimeter
Solutions
-
Warrants
(b)
97,671
46
Perimeter
Solutions
SA
(b)
229,717
3,191
$
7,237
Commercial
Services
-
8
.91
%
Block
Inc
(b)
19,412
3,135
Bright
Horizons
Family
Solutions
Inc
(b)
23,531
2,962
CoStar
Group
Inc
(b)
328,895
25,993
Gartner
Inc
(b)
24,896
8,323
Moody's
Corp
17,440
6,812
TransUnion
88,652
10,512
Verisk
Analytics
Inc
39,856
9,116
$
66,853
Distribution
&
Wholesale
-
5
.13
%
Copart
Inc
(b)
174,672
26,484
Fastenal
Co
186,655
11,957
$
38,441
Diversified
Financial
Services
-
0
.75
%
Brookfield
Asset
Management
Reinsurance
Partners
Ltd
(b)
4,484
281
Credit
Acceptance
Corp
(b)
7,820
5,378
$
5,659
Electric
-
2
.51
%
Brookfield
Infrastructure
Partners
LP
243,910
14,832
Brookfield
Renewable
Partners
LP
111,765
4,000
$
18,832
Electronics
-
2
.07
%
Agilent
Technologies
Inc
21,154
3,377
Mettler-Toledo
International
Inc
(b)
7,141
12,120
$
15,497
Entertainment
-
3
.91
%
Live
Nation
Entertainment
Inc
(b)
147,342
17,635
Vail
Resorts
Inc
35,736
11,718
$
29,353
Healthcare
-
Products
-
1
.27
%
IDEXX
Laboratories
Inc
(b)
14,477
9,533
Home
Builders
-
2
.77
%
Lennar
Corp
-
A
Shares
76,290
8,862
Lennar
Corp
-
B
Shares
1,155
110
NVR
Inc
(b)
2,002
11,830
$
20,802
Insurance
-
6
.14
%
Aon
PLC
13,719
4,123
Arch
Capital
Group
Ltd
(b)
140,465
6,244
Brown
&
Brown
Inc
176,270
12,388
Fidelity
National
Financial
Inc
27,775
1,449
Markel
Corp
(b)
12,918
15,941
Progressive
Corp/The
57,715
5,925
$
46,070
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Internet
-
4
.43
%
Etsy
Inc
(b)
41,979
$
9,191
VeriSign
Inc
(b)
53,565
13,596
Wix.com
Ltd
(b)
66,086
10,428
$
33,215
Lodging
-
3
.83
%
Hilton
Worldwide
Holdings
Inc
(b)
150,945
23,546
Hyatt
Hotels
Corp
(b)
53,691
5,149
$
28,695
Machinery
-
Diversified
-
0
.60
%
Cognex
Corp
30,422
2,366
Colfax
Corp
(b)
45,977
2,113
$
4,479
Media
-
3
.94
%
Liberty
Broadband
Corp
-
A
Shares
(b)
20,520
3,302
Liberty
Broadband
Corp
-
C
Shares
(b)
108,565
17,490
Liberty
Media
Corp-Liberty
Formula
One
-
A
Shares
(b)
15,460
917
Liberty
Media
Corp-Liberty
Formula
One
-
C
Shares
(b)
124,483
7,872
$
29,581
Private
Equity
-
9
.47
%
Ares
Management
Corp
45,989
3,738
Brookfield
Asset
Management
Inc
606,813
36,638
KKR
&
Co
Inc
324,518
24,177
Onex
Corp
82,041
6,435
$
70,988
Real
Estate
-
2
.70
%
CBRE
Group
Inc
111,730
12,124
Howard
Hughes
Corp/The
(b)
53,587
5,454
Kennedy-Wilson
Holdings
Inc
110,755
2,645
$
20,223
REITs
-
3
.02
%
SBA
Communications
Corp
58,180
22,633
Retail
-
9
.73
%
CarMax
Inc
(b)
186,074
24,232
Dollar
General
Corp
36,027
8,496
Domino's
Pizza
Inc
24,857
14,028
O'Reilly
Automotive
Inc
(b)
31,488
22,238
Ross
Stores
Inc
34,773
3,974
$
72,968
Semiconductors
-
1
.74
%
Microchip
Technology
Inc
150,265
13,082
Software
-
14
.93
%
ANSYS
Inc
(b)
31,072
12,464
Autodesk
Inc
(b)
67,076
18,861
Black
Knight
Inc
(b)
193,871
16,070
Guidewire
Software
Inc
(b)
115,850
13,153
HubSpot
Inc
(b)
4,245
2,798
MSCI
Inc
12,454
7,630
Qualtrics
International
Inc
(b)
25,144
890
Roper
Technologies
Inc
36,027
17,720
Tyler
Technologies
Inc
(b)
41,575
22,365
$
111,951
TOTAL
COMMON
STOCKS
$
750,355
Total
Investments
$
752,343
Other
Assets
and
Liabilities
- (0.33)%
(
2,444
)
TOTAL
NET
ASSETS
-
100.00%
$
749,899
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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.
Schedule
of
Investments
MidCap
Account
December
31,
2021
See
accompanying
notes.
192
Portfolio
Summary (unaudited)
Sector
Percent
Consumer,
Cyclical
25
.37
%
Financial
22
.83
%
Technology
16
.67
%
Industrial
12
.96
%
Consumer,
Non-cyclical
10
.38
%
Communications
8
.37
%
Utilities
2
.51
%
Basic
Materials
0
.97
%
Money
Market
Funds
0
.27
%
Other
Assets
and
Liabilities
(
0
.33
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
1,607
$
74,674
$
74,293
$
1,988
$
1,607
$
74,674
$
74,293
$
1,988
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Principal
Capital
Appreciation
Account
December
31,
2021
See
accompanying
notes.
193
INVESTMENT
COMPANIES
-
1
.03
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1
.03
%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
1,995,842
$
1,996
TOTAL
INVESTMENT
COMPANIES
$
1,996
COMMON
STOCKS
-
99
.55
%
Shares
Held
Value
(000's)
Apparel
-
1
.70
%
Deckers
Outdoor
Corp
(b)
5,495
$
2,013
NIKE
Inc
7,733
1,289
$
3,302
Automobile
Manufacturers
-
1
.08
%
PACCAR
Inc
23,870
2,107
Automobile
Parts
&
Equipment
-
0
.53
%
Magna
International
Inc
12,768
1,033
Banks
-
3
.58
%
JPMorgan
Chase
&
Co
28,194
4,465
PNC
Financial
Services
Group
Inc/The
12,438
2,494
$
6,959
Beverages
-
1
.43
%
Keurig
Dr
Pepper
Inc
65,019
2,397
PepsiCo
Inc
2,236
388
$
2,785
Chemicals
-
1
.65
%
Air
Products
and
Chemicals
Inc
5,188
1,579
FMC
Corp
14,818
1,628
$
3,207
Commercial
Services
-
1
.36
%
Morningstar
Inc
3,011
1,030
PayPal
Holdings
Inc
(b)
8,563
1,615
$
2,645
Computers
-
5
.50
%
Apple
Inc
60,181
10,686
Consumer
Products
-
1
.47
%
Church
&
Dwight
Co
Inc
22,511
2,307
WD-40
Co
2,257
552
$
2,859
Diversified
Financial
Services
-
6
.14
%
Ameriprise
Financial
Inc
6,734
2,031
BlackRock
Inc
1,872
1,714
Charles
Schwab
Corp/The
28,389
2,388
Discover
Financial
Services
8,457
977
Nasdaq
Inc
9,921
2,084
Visa
Inc
12,602
2,731
$
11,925
Electric
-
2
.34
%
NextEra
Energy
Inc
35,372
3,302
Xcel
Energy
Inc
18,223
1,234
$
4,536
Electronics
-
0
.87
%
Honeywell
International
Inc
8,075
1,684
Environmental
Control
-
1
.13
%
Republic
Services
Inc
15,674
2,186
Food
-
0
.40
%
Simply
Good
Foods
Co/The
(b)
18,443
767
Healthcare
-
Products
-
5
.81
%
Abbott
Laboratories
32,802
4,616
Cooper
Cos
Inc/The
3,903
1,635
Edwards
Lifesciences
Corp
(b)
7,611
986
Medtronic
PLC
7,179
743
Thermo
Fisher
Scientific
Inc
4,964
3,312
$
11,292
Healthcare
-
Services
-
2
.50
%
UnitedHealth
Group
Inc
8,469
4,253
Universal
Health
Services
Inc
4,632
600
$
4,853
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
2
.72
%
Fidelity
National
Financial
Inc
17,579
$
917
Marsh
&
McLennan
Cos
Inc
14,023
2,438
Progressive
Corp/The
18,696
1,919
$
5,274
Internet
-
9
.51
%
Alphabet
Inc
-
A
Shares
(b)
2,756
7,984
Amazon.com
Inc
(b)
1,459
4,865
Meta
Platforms
Inc
(b)
11,390
3,831
Netflix
Inc
(b)
1,432
863
Pinterest
Inc
(b)
25,782
937
$
18,480
Machinery
-
Construction
&
Mining
-
1
.07
%
Epiroc
AB
-
A
Shares
82,035
2,074
Machinery
-
Diversified
-
1
.02
%
Deere
&
Co
5,762
1,976
Media
-
2
.21
%
Comcast
Corp
-
Class
A
46,127
2,322
Nexstar
Media
Group
Inc
10,944
1,652
Walt
Disney
Co/The
(b)
2,110
327
$
4,301
Oil
&
Gas
-
3
.73
%
Chevron
Corp
44,344
5,204
EOG
Resources
Inc
20,369
1,809
Valero
Energy
Corp
2,969
223
$
7,236
Packaging
&
Containers
-
0
.89
%
Ball
Corp
17,900
1,723
Pharmaceuticals
-
4
.13
%
Bristol-Myers
Squibb
Co
3,103
194
Dexcom
Inc
(b)
678
364
Eli
Lilly
&
Co
6,520
1,801
Merck
&
Co
Inc
28,473
2,182
Pfizer
Inc
45,222
2,670
Roche
Holding
AG
ADR
15,756
814
$
8,025
REITs
-
3
.70
%
Alexandria
Real
Estate
Equities
Inc
8,519
1,899
American
Tower
Corp
5,148
1,506
Extra
Space
Storage
Inc
8,988
2,038
Prologis
Inc
10,380
1,748
$
7,191
Retail
-
9
.14
%
Chipotle
Mexican
Grill
Inc
(b)
629
1,100
Costco
Wholesale
Corp
6,284
3,567
Home
Depot
Inc/The
5,364
2,226
Lululemon
Athletica
Inc
(b)
4,291
1,680
O'Reilly
Automotive
Inc
(b)
2,681
1,893
Papa
John's
International
Inc
5,820
777
Starbucks
Corp
10,500
1,228
Target
Corp
10,272
2,377
Tractor
Supply
Co
12,204
2,912
$
17,760
Semiconductors
-
7
.34
%
Broadcom
Inc
6,607
4,396
Lam
Research
Corp
4,367
3,141
Microchip
Technology
Inc
24,612
2,143
NVIDIA
Corp
10,571
3,109
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
12,246
1,473
$
14,262
Software
-
13
.38
%
Adobe
Inc
(b)
7,312
4,146
Black
Knight
Inc
(b)
11,165
926
Fair
Isaac
Corp
(b)
2,528
1,096
Microsoft
Corp
38,055
12,799
Roper
Technologies
Inc
3,292
1,619
salesforce.com
Inc
(b)
11,512
2,926
ServiceNow
Inc
(b)
2,742
1,780
Schedule
of
Investments
Principal
Capital
Appreciation
Account
December
31,
2021
See
accompanying
notes.
194
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
Veeva
Systems
Inc
(b)
2,765
$
706
$
25,998
Telecommunications
-
0
.97
%
T-Mobile
US
Inc
(b)
16,205
1,879
Transportation
-
2
.25
%
Expeditors
International
of
Washington
Inc
17,195
2,309
Union
Pacific
Corp
8,170
2,058
$
4,367
TOTAL
COMMON
STOCKS
$
193,372
Total
Investments
$
195,368
Other
Assets
and
Liabilities
- (0.58)%
(
1,121
)
TOTAL
NET
ASSETS
-
100.00%
$
194,247
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
26
.22
%
Consumer,
Non-cyclical
17
.10
%
Financial
16
.14
%
Communications
12
.69
%
Consumer,
Cyclical
12
.45
%
Industrial
7
.23
%
Energy
3
.73
%
Utilities
2
.34
%
Basic
Materials
1
.65
%
Money
Market
Funds
1
.03
%
Other
Assets
and
Liabilities
(
0
.58
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
1,887
$
33,184
$
33,075
$
1,996
$
1,887
$
33,184
$
33,075
$
1,996
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Principal
LifeTime
2010
Account
December
31,
2021
See
accompanying
notes.
195
INVESTMENT
COMPANIES
-
100
.01
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
57
.07
%
Blue
Chip
Fund
(a)
36,886
$
1,514
Core
Fixed
Income
Fund
(a)
1,184,111
11,735
Diversified
International
Fund
(a)
173,678
2,492
Diversified
Real
Asset
Fund
(a)
64,835
857
International
Small
Company
Fund
(a)
39,450
463
LargeCap
Growth
Fund
I
(a)
65,493
1,456
MidCap
Fund
(a)
17,218
721
MidCap
Value
Fund
I
(a)
41,372
728
Origin
Emerging
Markets
Fund
(a)
46,838
612
SmallCap
Growth
Fund
I
(a)
19,256
329
SmallCap
Value
Fund
II
(a)
29,488
380
$
21,287
Principal
Funds,
Inc.
Institutional
Class
-
42
.94
%
Equity
Income
Fund
(a)
34,344
1,414
High
Income
Fund
(a)
283,556
2,654
Inflation
Protection
Fund
(a)
246,587
2,288
LargeCap
S&P
500
Index
Fund
(a)
38,870
943
LargeCap
Value
Fund
III
(a)
72,927
1,432
Overseas
Fund
(a)
99,380
1,046
Short-Term
Income
Fund
(a)
511,203
6,237
$
16,014
TOTAL
INVESTMENT
COMPANIES
$
37,301
Total
Investments
$
37,301
Other
Assets
and
Liabilities
- (0.01)%
(
4
)
TOTAL
NET
ASSETS
-
100.00%
$
37,297
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
68
.12
%
Domestic
Equity
Funds
23
.91
%
International
Equity
Funds
5
.68
%
Specialty
Funds
2
.30
%
Other
Assets
and
Liabilities
(
0
.01
)
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2010
Account
December
31,
2021
See
accompanying
notes.
196
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
1,224
$
280
$
191
$
1,514
Core
Fixed
Income
Fund
13,544
2,644
3,915
11,735
Diversified
International
Fund
1,780
1,092
236
2,492
Diversified
Real
Asset
Fund
756
364
320
857
Equity
Income
Fund
977
423
161
1,414
High
Income
Fund
2,149
944
432
2,654
Inflation
Protection
Fund
1,469
1,206
313
2,288
International
Small
Company
Fund
377
167
68
463
LargeCap
Growth
Fund
I
1,172
340
161
1,456
LargeCap
S&P
500
Index
Fund
1,571
288
1,044
943
LargeCap
Value
Fund
III
899
547
160
1,432
MidCap
Fund
641
179
188
721
MidCap
Value
Fund
I
544
213
123
728
Origin
Emerging
Markets
Fund
464
253
76
612
Overseas
Fund
1,167
202
378
1,046
Short-Term
Income
Fund
6,460
1,569
1,647
6,237
SmallCap
Growth
Fund
I
396
88
142
329
SmallCap
Value
Fund
II
240
147
44
380
$
35,830
$
10,946
$
9,599
$
37,301
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
12
$
4
$
83
$
197
Core
Fixed
Income
Fund
298
(
5
)
—
(
533
)
Diversified
International
Fund
93
(
1
)
216
(
143
)
Diversified
Real
Asset
Fund
40
25
10
32
Equity
Income
Fund
29
2
43
173
High
Income
Fund
128
—
—
(
7
)
Inflation
Protection
Fund
108
1
52
(
75
)
International
Small
Company
Fund
7
1
34
(
14
)
LargeCap
Growth
Fund
I
12
2
136
103
LargeCap
S&P
500
Index
Fund
15
373
98
(
245
)
LargeCap
Value
Fund
III
39
4
82
142
MidCap
Fund
2
32
51
57
MidCap
Value
Fund
I
34
3
41
91
Origin
Emerging
Markets
Fund
12
—
11
(
29
)
Overseas
Fund
76
25
—
30
Short-Term
Income
Fund
74
(
1
)
31
(
144
)
SmallCap
Growth
Fund
I
10
44
31
(
57
)
SmallCap
Value
Fund
II
38
1
12
36
$
1,027
$
510
$
931
$
(
386
)
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2020
Account
December
31,
2021
See
accompanying
notes.
197
INVESTMENT
COMPANIES
-
100
.00
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
61
.40
%
Blue
Chip
Fund
(a)
250,644
$
10,286
Core
Fixed
Income
Fund
(a)
5,746,919
56,952
Diversified
International
Fund
(a)
1,197,320
17,182
Diversified
Real
Asset
Fund
(a)
335,952
4,441
International
Small
Company
Fund
(a)
272,468
3,202
LargeCap
Growth
Fund
I
(a)
444,495
9,881
MidCap
Fund
(a)
116,282
4,866
MidCap
Value
Fund
I
(a)
272,933
4,804
Origin
Emerging
Markets
Fund
(a)
310,290
4,052
SmallCap
Growth
Fund
I
(a)
131,979
2,257
SmallCap
Value
Fund
II
(a)
203,371
2,624
$
120,547
Principal
Funds,
Inc.
Institutional
Class
-
38
.60
%
Equity
Income
Fund
(a)
231,847
9,547
High
Income
Fund
(a)
1,233,176
11,542
Inflation
Protection
Fund
(a)
1,070,870
9,938
LargeCap
S&P
500
Index
Fund
(a)
289,459
7,019
LargeCap
Value
Fund
III
(a)
493,413
9,686
Overseas
Fund
(a)
686,784
7,232
Short-Term
Income
Fund
(a)
1,707,124
20,827
$
75,791
TOTAL
INVESTMENT
COMPANIES
$
196,338
Total
Investments
$
196,338
Other
Assets
and
Liabilities
- 0.00%
(
4
)
TOTAL
NET
ASSETS
-
100.00%
$
196,334
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
59
.31
%
Domestic
Equity
Funds
31
.06
%
International
Equity
Funds
7
.37
%
Specialty
Funds
2
.26
%
Other
Assets
and
Liabilities
0
.00
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2020
Account
December
31,
2021
See
accompanying
notes.
198
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
10,043
$
1,295
$
2,862
$
10,286
Core
Fixed
Income
Fund
59,928
9,867
10,444
56,952
Diversified
International
Fund
15,180
4,861
2,119
17,182
Diversified
Real
Asset
Fund
3,710
2,136
1,659
4,441
Equity
Income
Fund
9,123
1,516
2,593
9,547
High
Income
Fund
8,232
5,019
1,678
11,542
Inflation
Protection
Fund
7,353
4,302
1,420
9,938
International
Small
Company
Fund
3,253
520
552
3,202
LargeCap
Growth
Fund
I
10,160
1,652
3,024
9,881
LargeCap
S&P
500
Index
Fund
10,401
1,495
6,063
7,019
LargeCap
Value
Fund
III
9,070
1,846
2,625
9,686
MidCap
Fund
5,260
809
1,981
4,866
MidCap
Value
Fund
I
4,403
1,085
1,539
4,804
Origin
Emerging
Markets
Fund
4,230
827
824
4,052
Overseas
Fund
9,910
1,151
4,416
7,232
Short-Term
Income
Fund
18,623
6,094
3,446
20,827
SmallCap
Growth
Fund
I
3,298
457
1,472
2,257
SmallCap
Value
Fund
II
1,996
911
656
2,624
$
194,173
$
45,843
$
49,373
$
196,338
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
81
$
359
$
570
$
1,451
Core
Fixed
Income
Fund
1,337
—
—
(
2,399
)
Diversified
International
Fund
650
(
12
)
1,499
(
728
)
Diversified
Real
Asset
Fund
193
70
52
184
Equity
Income
Fund
220
243
296
1,258
High
Income
Fund
528
—
—
(
31
)
Inflation
Protection
Fund
467
5
227
(
302
)
International
Small
Company
Fund
47
21
235
(
40
)
LargeCap
Growth
Fund
I
81
251
926
842
LargeCap
S&P
500
Index
Fund
113
2,144
738
(
958
)
LargeCap
Value
Fund
III
263
309
556
1,086
MidCap
Fund
14
721
352
57
MidCap
Value
Fund
I
227
160
275
695
Origin
Emerging
Markets
Fund
80
15
73
(
196
)
Overseas
Fund
528
273
—
314
Short-Term
Income
Fund
218
(
1
)
105
(
443
)
SmallCap
Growth
Fund
I
71
621
212
(
647
)
SmallCap
Value
Fund
II
262
74
84
299
$
5,380
$
5,253
$
6,200
$
442
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2030
Account
December
31,
2021
See
accompanying
notes.
199
INVESTMENT
COMPANIES
-
100
.00
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
71
.77
%
Blue
Chip
Fund
(a)
458,774
$
18,828
Core
Fixed
Income
Fund
(a)
7,592,664
75,243
Diversified
International
Fund
(a)
2,099,437
30,127
International
Small
Company
Fund
(a)
467,573
5,494
LargeCap
Growth
Fund
I
(a)
815,680
18,132
MidCap
Fund
(a)
215,933
9,037
MidCap
Value
Fund
I
(a)
513,056
9,030
Origin
Emerging
Markets
Fund
(a)
528,109
6,897
Real
Estate
Securities
Fund
(a)
199,246
6,948
SmallCap
Growth
Fund
I
(a)
245,652
4,201
SmallCap
Value
Fund
II
(a)
366,608
4,729
$
188,666
Principal
Funds,
Inc.
Institutional
Class
-
28
.23
%
Equity
Income
Fund
(a)
425,452
17,520
High
Income
Fund
(a)
1,282,962
12,009
LargeCap
S&P
500
Index
Fund
(a)
586,312
14,218
LargeCap
Value
Fund
III
(a)
904,286
17,751
Overseas
Fund
(a)
1,206,557
12,705
$
74,203
TOTAL
INVESTMENT
COMPANIES
$
262,869
Total
Investments
$
262,869
Other
Assets
and
Liabilities
- 0.00%
(
5
)
TOTAL
NET
ASSETS
-
100.00%
$
262,864
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
45
.81
%
Fixed
Income
Funds
44
.65
%
International
Equity
Funds
9
.54
%
Other
Assets
and
Liabilities
0
.00
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2030
Account
December
31,
2021
See
accompanying
notes.
200
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
15,380
$
4,030
$
3,547
$
18,828
Core
Fixed
Income
Fund
58,315
28,935
9,622
75,243
Diversified
International
Fund
24,768
10,097
3,350
30,127
Diversified
Real
Asset
Fund
4,522
926
5,949
—
Equity
Income
Fund
14,164
4,337
3,424
17,520
High
Income
Fund
7,210
6,275
1,446
12,009
Inflation
Protection
Fund
4,648
1,140
6,049
—
International
Small
Company
Fund
5,302
1,254
1,010
5,494
LargeCap
Growth
Fund
I
15,863
4,058
3,493
18,132
LargeCap
S&P
500
Index
Fund
17,346
3,795
8,803
14,218
LargeCap
Value
Fund
III
14,424
4,605
3,456
17,751
MidCap
Fund
8,165
2,138
2,564
9,037
MidCap
Value
Fund
I
7,078
2,706
2,068
9,030
Origin
Emerging
Markets
Fund
6,700
1,827
1,293
6,897
Overseas
Fund
16,041
2,997
7,199
12,705
Real
Estate
Securities
Fund
—
6,851
98
6,948
SmallCap
Growth
Fund
I
5,030
1,114
1,814
4,201
SmallCap
Value
Fund
II
3,341
1,749
932
4,729
$
228,297
$
88,834
$
66,117
$
262,869
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
145
$
324
$
1,030
$
2,641
Core
Fixed
Income
Fund
1,423
(
2
)
—
(
2,383
)
Diversified
International
Fund
1,136
(
40
)
2,614
(
1,348
)
Diversified
Real
Asset
Fund
114
750
—
(
249
)
Equity
Income
Fund
384
149
535
2,294
High
Income
Fund
539
—
—
(
30
)
Inflation
Protection
Fund
—
583
—
(
322
)
International
Small
Company
Fund
81
(
2
)
401
(
50
)
LargeCap
Growth
Fund
I
148
292
1,690
1,412
LargeCap
S&P
500
Index
Fund
227
2,061
1,485
(
181
)
LargeCap
Value
Fund
III
480
186
1,014
1,992
MidCap
Fund
25
387
642
911
MidCap
Value
Fund
I
425
73
514
1,241
Origin
Emerging
Markets
Fund
135
26
124
(
363
)
Overseas
Fund
923
129
—
737
Real
Estate
Securities
Fund
123
—
85
195
SmallCap
Growth
Fund
I
131
355
392
(
484
)
SmallCap
Value
Fund
II
470
38
150
533
$
6,909
$
5,309
$
10,676
$
6,546
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2040
Account
December
31,
2021
See
accompanying
notes.
201
INVESTMENT
COMPANIES
-
100
.00
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
62
.04
%
Blue
Chip
Fund
(a)
295,387
$
12,123
Core
Fixed
Income
Fund
(a)
1,545,947
15,320
Diversified
International
Fund
(a)
1,399,677
20,086
International
Small
Company
Fund
(a)
318,842
3,746
LargeCap
Growth
Fund
I
(a)
528,094
11,740
MidCap
Value
Fund
I
(a)
349,366
6,149
Origin
Emerging
Markets
Fund
(a)
370,900
4,844
Real
Estate
Securities
Fund
(a)
101,876
3,552
SmallCap
Growth
Fund
I
(a)
157,298
2,690
SmallCap
Value
Fund
II
(a)
231,586
2,988
$
83,238
Principal
Funds,
Inc.
Institutional
Class
-
37
.96
%
Equity
Income
Fund
(a)
278,063
11,451
High
Income
Fund
(a)
340,640
3,188
LargeCap
S&P
500
Index
Fund
(a)
434,703
10,541
LargeCap
Value
Fund
III
(a)
589,271
11,567
MidCap
Growth
Fund
III
(a)
402,465
5,719
Overseas
Fund
(a)
804,527
8,472
$
50,938
TOTAL
INVESTMENT
COMPANIES
$
134,176
Total
Investments
$
134,176
Other
Assets
and
Liabilities
- 0.00%
(
4
)
TOTAL
NET
ASSETS
-
100.00%
$
134,172
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
58
.52
%
Fixed
Income
Funds
28
.77
%
International
Equity
Funds
12
.71
%
Other
Assets
and
Liabilities
0
.00
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
9,081
$
2,680
$
1,224
$
12,123
Core
Fixed
Income
Fund
15,788
5,748
5,544
15,320
Diversified
International
Fund
13,964
8,893
1,659
20,086
Equity
Income
Fund
7,582
3,500
998
11,451
High
Income
Fund
2,817
1,805
1,428
3,188
International
Small
Company
Fund
3,076
1,168
426
3,746
LargeCap
Growth
Fund
I
9,255
3,151
1,491
11,740
LargeCap
S&P
500
Index
Fund
9,461
3,106
3,094
10,541
LargeCap
Value
Fund
III
7,624
3,796
999
11,567
MidCap
Growth
Fund
III
4,995
2,555
1,475
5,719
MidCap
Value
Fund
I
3,635
2,503
675
6,149
Origin
Emerging
Markets
Fund
3,951
1,661
546
4,844
Overseas
Fund
9,057
2,266
3,298
8,472
Real
Estate
Securities
Fund
2,215
874
348
3,552
SmallCap
Growth
Fund
I
2,751
904
830
2,690
SmallCap
Value
Fund
II
1,891
1,091
298
2,988
$
107,143
$
45,701
$
24,333
$
134,176
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
93
$
15
$
659
$
1,571
Core
Fixed
Income
Fund
393
7
—
(
679
)
Diversified
International
Fund
760
(
2
)
1,730
(
1,110
)
Equity
Income
Fund
234
11
348
1,356
High
Income
Fund
187
2
—
(
8
)
International
Small
Company
Fund
55
1
271
(
73
)
LargeCap
Growth
Fund
I
95
18
1,088
807
LargeCap
S&P
500
Index
Fund
167
419
1,094
649
LargeCap
Value
Fund
III
311
14
657
1,132
MidCap
Growth
Fund
III
177
127
916
(
483
)
MidCap
Value
Fund
I
287
7
347
679
Origin
Emerging
Markets
Fund
95
5
86
(
227
)
Overseas
Fund
613
26
—
421
Real
Estate
Securities
Fund
101
1
43
810
SmallCap
Growth
Fund
I
84
117
249
(
252
)
SmallCap
Value
Fund
II
294
1
94
303
$
3,946
$
769
$
7,582
$
4,896
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2050
Account
December
31,
2021
See
accompanying
notes.
202
INVESTMENT
COMPANIES
-
100
.01
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
58
.60
%
Blue
Chip
Fund
(a)
172,003
$
7,059
Core
Fixed
Income
Fund
(a)
108,520
1,075
Diversified
International
Fund
(a)
795,242
11,412
International
Small
Company
Fund
(a)
180,352
2,119
LargeCap
Growth
Fund
I
(a)
307,683
6,840
MidCap
Value
Fund
I
(a)
207,139
3,646
Origin
Emerging
Markets
Fund
(a)
213,401
2,787
Real
Estate
Securities
Fund
(a)
52,041
1,815
SmallCap
Growth
Fund
I
(a)
91,933
1,572
SmallCap
Value
Fund
II
(a)
141,872
1,830
$
40,155
Principal
Funds,
Inc.
Institutional
Class
-
41
.41
%
Equity
Income
Fund
(a)
161,832
6,664
High
Income
Fund
(a)
29,627
277
LargeCap
S&P
500
Index
Fund
(a)
269,558
6,537
LargeCap
Value
Fund
III
(a)
342,351
6,720
MidCap
Growth
Fund
III
(a)
240,541
3,418
Overseas
Fund
(a)
452,023
4,760
$
28,376
TOTAL
INVESTMENT
COMPANIES
$
68,531
Total
Investments
$
68,531
Other
Assets
and
Liabilities
- (0.01)%
(
4
)
TOTAL
NET
ASSETS
-
100.00%
$
68,527
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
67
.28
%
Fixed
Income
Funds
18
.62
%
International
Equity
Funds
14
.11
%
Other
Assets
and
Liabilities
(
0
.01
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
4,765
$
2,437
$
968
$
7,059
Core
Fixed
Income
Fund
3,603
2,238
4,629
1,075
Diversified
International
Fund
7,184
5,936
1,034
11,412
Equity
Income
Fund
3,913
2,802
771
6,664
High
Income
Fund
749
846
1,317
277
International
Small
Company
Fund
1,566
925
313
2,119
LargeCap
Growth
Fund
I
4,854
2,692
1,104
6,840
LargeCap
S&P
500
Index
Fund
4,728
2,764
1,482
6,537
LargeCap
Value
Fund
III
3,933
2,995
770
6,720
MidCap
Growth
Fund
III
2,579
2,026
941
3,418
MidCap
Value
Fund
I
1,881
1,961
524
3,646
Origin
Emerging
Markets
Fund
1,971
1,358
399
2,787
Overseas
Fund
4,659
1,829
1,920
4,760
Real
Estate
Securities
Fund
1,003
648
233
1,815
SmallCap
Growth
Fund
I
1,434
753
520
1,572
SmallCap
Value
Fund
II
963
959
214
1,830
$
49,785
$
33,169
$
17,139
$
68,531
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
54
$
2
$
383
$
823
Core
Fixed
Income
Fund
90
11
—
(
148
)
Diversified
International
Fund
428
(
1
)
981
(
673
)
Equity
Income
Fund
131
3
202
717
High
Income
Fund
54
(
8
)
—
7
International
Small
Company
Fund
31
—
153
(
59
)
LargeCap
Growth
Fund
I
56
9
633
389
LargeCap
S&P
500
Index
Fund
103
88
677
439
LargeCap
Value
Fund
III
180
2
381
560
MidCap
Growth
Fund
III
106
87
546
(
333
)
MidCap
Value
Fund
I
170
—
205
328
Origin
Emerging
Markets
Fund
54
3
49
(
146
)
Overseas
Fund
343
17
—
175
Real
Estate
Securities
Fund
51
1
22
396
SmallCap
Growth
Fund
I
49
72
145
(
167
)
SmallCap
Value
Fund
II
180
1
58
121
$
2,080
$
287
$
4,435
$
2,429
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2060
Account
December
31,
2021
See
accompanying
notes.
203
INVESTMENT
COMPANIES
-
100
.02
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
58
.16
%
Blue
Chip
Fund
(a)
43,065
$
1,767
Core
Fixed
Income
Fund
(a)
28,498
282
Diversified
International
Fund
(a)
199,161
2,858
International
Small
Company
Fund
(a)
45,496
535
LargeCap
Growth
Fund
I
(a)
77,004
1,712
MidCap
Value
Fund
I
(a)
51,544
907
Origin
Emerging
Markets
Fund
(a)
52,821
690
Real
Estate
Securities
Fund
(a)
13,094
457
SmallCap
Growth
Fund
I
(a)
22,734
389
SmallCap
Value
Fund
II
(a)
35,188
454
$
10,051
Principal
Funds,
Inc.
Institutional
Class
-
41
.86
%
Equity
Income
Fund
(a)
40,483
1,667
High
Income
Fund
(a)
10,517
98
LargeCap
S&P
500
Index
Fund
(a)
69,968
1,697
LargeCap
Value
Fund
III
(a)
85,848
1,685
MidCap
Growth
Fund
III
(a)
59,162
841
Overseas
Fund
(a)
118,250
1,245
$
7,233
TOTAL
INVESTMENT
COMPANIES
$
17,284
Total
Investments
$
17,284
Other
Assets
and
Liabilities
- (0.02)%
(
4
)
TOTAL
NET
ASSETS
-
100.00%
$
17,280
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
66
.99
%
Fixed
Income
Funds
18
.74
%
International
Equity
Funds
14
.29
%
Other
Assets
and
Liabilities
(
0
.02
)
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
1,126
$
681
$
252
$
1,767
Core
Fixed
Income
Fund
436
325
462
282
Diversified
International
Fund
1,737
1,561
282
2,858
Equity
Income
Fund
941
778
234
1,667
High
Income
Fund
121
116
138
98
International
Small
Company
Fund
382
254
89
535
LargeCap
Growth
Fund
I
1,157
745
292
1,712
LargeCap
S&P
500
Index
Fund
1,129
759
331
1,697
LargeCap
Value
Fund
III
955
817
234
1,685
MidCap
Growth
Fund
III
615
532
253
841
MidCap
Value
Fund
I
452
527
161
907
Origin
Emerging
Markets
Fund
486
356
115
690
Overseas
Fund
1,134
636
579
1,245
Real
Estate
Securities
Fund
229
201
69
457
SmallCap
Growth
Fund
I
340
202
132
389
SmallCap
Value
Fund
II
234
252
67
454
$
11,474
$
8,742
$
3,690
$
17,284
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
13
$
1
$
94
$
211
Core
Fixed
Income
Fund
11
—
—
(
17
)
Diversified
International
Fund
107
1
243
(
159
)
Equity
Income
Fund
33
1
50
181
High
Income
Fund
8
—
—
(
1
)
International
Small
Company
Fund
8
—
38
(
12
)
LargeCap
Growth
Fund
I
14
2
157
100
LargeCap
S&P
500
Index
Fund
27
2
174
138
LargeCap
Value
Fund
III
45
1
95
146
MidCap
Growth
Fund
III
26
12
133
(
65
)
MidCap
Value
Fund
I
42
1
51
88
Origin
Emerging
Markets
Fund
13
—
12
(
37
)
Overseas
Fund
89
5
—
49
Real
Estate
Securities
Fund
12
—
5
96
SmallCap
Growth
Fund
I
12
13
36
(
34
)
SmallCap
Value
Fund
II
44
1
14
34
$
504
$
40
$
1,102
$
718
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
Strategic
Income
Account
December
31,
2021
See
accompanying
notes.
204
INVESTMENT
COMPANIES
-
100
.01
%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
56
.94
%
Blue
Chip
Fund
(a)
28,597
$
1,174
Core
Fixed
Income
Fund
(a)
957,311
9,487
Diversified
International
Fund
(a)
136,402
1,957
Diversified
Real
Asset
Fund
(a)
54,388
719
International
Small
Company
Fund
(a)
31,906
375
LargeCap
Growth
Fund
I
(a)
51,452
1,144
MidCap
Fund
(a)
14,961
626
MidCap
Value
Fund
I
(a)
35,811
630
Origin
Emerging
Markets
Fund
(a)
38,411
502
SmallCap
Growth
Fund
I
(a)
14,876
254
SmallCap
Value
Fund
II
(a)
22,274
287
$
17,155
Principal
Funds,
Inc.
Institutional
Class
-
43
.07
%
Equity
Income
Fund
(a)
27,377
1,128
High
Income
Fund
(a)
229,289
2,146
Inflation
Protection
Fund
(a)
199,347
1,850
LargeCap
S&P
500
Index
Fund
(a)
34,813
844
LargeCap
Value
Fund
III
(a)
57,739
1,134
Overseas
Fund
(a)
79,139
833
Short-Term
Income
Fund
(a)
413,379
5,043
$
12,978
TOTAL
INVESTMENT
COMPANIES
$
30,133
Total
Investments
$
30,133
Other
Assets
and
Liabilities
- (0.01)%
(
4
)
TOTAL
NET
ASSETS
-
100.00%
$
30,129
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
67
.98
%
Domestic
Equity
Funds
23
.96
%
International
Equity
Funds
5
.68
%
Specialty
Funds
2
.39
%
Other
Assets
and
Liabilities
(
0
.01
)
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
Strategic
Income
Account
December
31,
2021
See
accompanying
notes.
205
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
859
$
430
$
228
$
1,174
Core
Fixed
Income
Fund
12,597
2,549
5,176
9,487
Diversified
International
Fund
1,159
1,148
213
1,957
Diversified
Real
Asset
Fund
763
270
371
719
Equity
Income
Fund
686
483
150
1,128
High
Income
Fund
2,139
673
661
2,146
Inflation
Protection
Fund
1,388
891
378
1,850
International
Small
Company
Fund
255
193
58
375
LargeCap
Growth
Fund
I
844
477
223
1,144
LargeCap
S&P
500
Index
Fund
973
461
649
844
LargeCap
Value
Fund
III
650
554
150
1,134
MidCap
Fund
438
314
171
626
MidCap
Value
Fund
I
353
334
103
630
Origin
Emerging
Markets
Fund
309
285
70
502
Overseas
Fund
773
272
236
833
Short-Term
Income
Fund
6,408
1,344
2,577
5,043
SmallCap
Growth
Fund
I
266
116
113
254
SmallCap
Value
Fund
II
170
136
38
287
$
31,030
$
10,930
$
11,565
$
30,133
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
9
$
40
$
66
$
73
Core
Fixed
Income
Fund
271
12
—
(
495
)
Diversified
International
Fund
74
—
171
(
137
)
Diversified
Real
Asset
Fund
35
15
8
42
Equity
Income
Fund
21
2
35
107
High
Income
Fund
117
—
—
(
5
)
Inflation
Protection
Fund
87
2
43
(
53
)
International
Small
Company
Fund
5
2
28
(
17
)
LargeCap
Growth
Fund
I
9
2
108
44
LargeCap
S&P
500
Index
Fund
14
206
89
(
147
)
LargeCap
Value
Fund
III
31
4
65
76
MidCap
Fund
2
44
46
1
MidCap
Value
Fund
I
30
4
36
42
Origin
Emerging
Markets
Fund
10
—
9
(
22
)
Overseas
Fund
61
13
—
11
Short-Term
Income
Fund
70
5
25
(
137
)
SmallCap
Growth
Fund
I
8
28
24
(
43
)
SmallCap
Value
Fund
II
29
—
9
19
$
883
$
379
$
762
$
(
641
)
Amounts
in
thousands.
Schedule
of
Investments
Real
Estate
Securities
Account
December
31,
2021
See
accompanying
notes.
206
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)
2,128,602
$
2,129
TOTAL
INVESTMENT
COMPANIES
$
2,129
COMMON
STOCKS
-
98
.70
%
Shares
Held
Value
(000's)
Entertainment
-
1
.46
%
Marriott
Vacations
Worldwide
Corp
16,125
$
2,725
Home
Builders
-
1
.03
%
DR
Horton
Inc
17,755
1,925
Lodging
-
1
.08
%
Choice
Hotels
International
Inc
3,870
604
Travel
+
Leisure
Co
25,509
1,410
$
2,014
REITs
-
95
.13
%
Agree
Realty
Corp
31,858
2,273
Alexandria
Real
Estate
Equities
Inc
29,879
6,662
American
Assets
Trust
Inc
16,674
626
American
Homes
4
Rent
155,454
6,779
American
Tower
Corp
19,005
5,559
Apartment
Income
REIT
Corp
69,950
3,824
Apple
Hospitality
REIT
Inc
99,490
1,607
AvalonBay
Communities
Inc
38,950
9,838
Brandywine
Realty
Trust
46,635
626
Broadstone
Net
Lease
Inc
98,944
2,456
Cousins
Properties
Inc
81,059
3,265
CubeSmart
61,620
3,507
DiamondRock
Hospitality
Co
(b)
64,855
623
Digital
Realty
Trust
Inc
10,188
1,802
Equinix
Inc
13,399
11,333
Equity
LifeStyle
Properties
Inc
42,332
3,711
Essex
Property
Trust
Inc
22,971
8,091
Extra
Space
Storage
Inc
35,975
8,157
First
Industrial
Realty
Trust
Inc
65,768
4,354
Healthcare
Realty
Trust
Inc
93,810
2,968
Healthcare
Trust
of
America
Inc
123,717
4,131
InvenTrust
Properties
Corp
62,135
1,694
Invitation
Homes
Inc
232,930
10,561
Kilroy
Realty
Corp
50,987
3,389
Medical
Properties
Trust
Inc
142,128
3,358
MGM
Growth
Properties
LLC
48,084
1,964
Park
Hotels
&
Resorts
Inc
(b)
57,305
1,082
Prologis
Inc
84,122
14,163
PS
Business
Parks
Inc
15,501
2,855
Public
Storage
10,635
3,983
Regency
Centers
Corp
42,790
3,224
Rexford
Industrial
Realty
Inc
49,083
3,981
Sabra
Health
Care
REIT
Inc
150,537
2,038
Saul
Centers
Inc
15,747
835
Simon
Property
Group
Inc
16,376
2,616
STORE
Capital
Corp
100,203
3,447
Sun
Communities
Inc
36,446
7,653
Terreno
Realty
Corp
42,110
3,592
Ventas
Inc
139,936
7,154
VICI
Properties
Inc
128,134
3,858
Welltower
Inc
29,124
2,498
Weyerhaeuser
Co
32,819
1,351
$
177,488
TOTAL
COMMON
STOCKS
$
184,152
Total
Investments
$
186,281
Other
Assets
and
Liabilities
- 0.16%
291
TOTAL
NET
ASSETS
-
100.00%
$
186,572
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
95
.13
%
Consumer,
Cyclical
3
.57
%
Money
Market
Funds
1
.14
%
Other
Assets
and
Liabilities
0
.16
%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Real
Estate
Securities
Account
December
31,
2021
See
accompanying
notes.
207
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
59
$
22,041
$
19,971
$
2,129
$
59
$
22,041
$
19,971
$
2,129
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
SAM
Balanced
Portfolio
December
31,
2021
See
accompanying
notes.
208
INVESTMENT
COMPANIES
-
99.94%
Shares
Held
Value
(000's)
Money
Market
Funds
-
3.08%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
22,973,940
$
22,974
Principal
Exchange-Traded
Funds
-
17.41%
Principal
Investment
Grade
Corporate
Active
ETF
(a)
382,000
10,054
Principal
U.S.
Mega-Cap
ETF
(a)
1,505,807
66,858
Principal
U.S.
Small-Cap
Multi-Factor
ETF
(a)
1,113,600
52,810
$
129,722
Principal
Funds,
Inc.
Class
R-6
-
52.20%
Blue
Chip
Fund
(a)
1,874,317
76,921
Core
Fixed
Income
Fund
(a)
8,313,258
82,384
Diversified
International
Fund
(a)
1,333,955
19,142
Diversified
Real
Asset
Fund
(a)
2,847,453
37,643
Edge
MidCap
Fund
(a)
1,216,051
17,925
Global
Real
Estate
Securities
Fund
(a)
1,456,417
17,302
High
Yield
Fund
(a)
2,228,750
16,203
International
Small
Company
Fund
(a)
807,498
9,488
LargeCap
Growth
Fund
I
(a)
1,409,248
31,328
Origin
Emerging
Markets
Fund
(a)
3,707,668
48,422
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(a)
3,104,689
32,072
$
388,830
Principal
Funds,
Inc.
Institutional
Class
-
14.32%
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
(a)
2,267,135
23,011
LargeCap
Value
Fund
III
(a)
1,918,425
37,659
Overseas
Fund
(a)
691,955
7,286
Principal
Capital
Appreciation
Fund
(a)
195,751
13,047
Short-Term
Income
Fund
(a)
2,101,615
25,640
$
106,643
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
12.93%
Equity
Income
Account
(a)
1,813,143
62,100
Government
&
High
Quality
Bond
Account
(a)
2,803,212
26,575
MidCap
Account
(a)
101,984
7,624
$
96,299
TOTAL
INVESTMENT
COMPANIES
$
744,468
Total
Investments
$
744,468
Other
Assets
and
Liabilities
- 0.06%
476
TOTAL
NET
ASSETS
-
100.00%
$
744,944
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
49.18%
Fixed
Income
Funds
31.56%
International
Equity
Funds
11.07%
Specialty
Funds
5.05%
Money
Market
Funds
3.08%
Other
Assets
and
Liabilities
0.06%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Balanced
Portfolio
December
31,
2021
See
accompanying
notes.
209
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
70,225
$
12,128
$
17,961
$
76,921
Core
Fixed
Income
Fund
84,871
16,752
15,956
82,384
Diversified
International
Fund
64,787
3,652
51,338
19,142
Diversified
Real
Asset
Fund
9,845
30,922
5,145
37,643
Edge
MidCap
Fund
34,948
5,267
23,312
17,925
Equity
Income
Account
107,769
3,689
65,392
62,100
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
—
23,968
220
23,011
Global
Diversified
Income
Fund
6,937
98
7,115
—
Global
Real
Estate
Securities
Fund
26,032
2,282
16,389
17,302
Government
&
High
Quality
Bond
Account
34,073
8,770
15,500
26,575
High
Yield
Fund
15,572
1,824
1,262
16,203
Inflation
Protection
Fund
10,838
82
10,798
—
International
Small
Company
Fund
8,395
5,126
4,082
9,488
LargeCap
Growth
Fund
I
—
33,779
4,244
31,328
LargeCap
Value
Fund
III
—
40,173
3,117
37,659
MidCap
Account
—
7,391
—
7,624
Origin
Emerging
Markets
Fund
29,074
26,647
4,087
48,422
Overseas
Fund
—
7,663
—
7,286
Principal
Active
Global
Dividend
Income
ETF
9,190
—
9,316
—
Principal
Capital
Appreciation
Fund
—
14,067
—
13,047
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
935
68,582
46,543
22,974
Principal
Investment
Grade
Corporate
Active
ETF
—
10,037
—
10,054
Principal
U.S.
Mega-Cap
ETF
73,605
—
23,644
66,858
Principal
U.S.
Small-Cap
Multi-Factor
ETF
35,683
19,405
14,899
52,810
Short-Term
Income
Fund
43,322
4,879
21,898
25,640
Spectrum
Preferred
and
Capital
Securities
Income
Fund
36,446
3,031
6,941
32,072
$
702,547
$
350,214
$
369,159
$
744,468
Income
Realized
Gain/(Loss)
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
(Loss)
Blue
Chip
Fund
$
643
$
2,074
$
4,554
$
10,455
Core
Fixed
Income
Fund
1,728
(38)
—
(3,245)
Diversified
International
Fund
723
12,859
1,661
(10,818)
Diversified
Real
Asset
Fund
2,006
179
441
1,842
Edge
MidCap
Fund
608
6,271
3,773
(5,249)
Equity
Income
Account
1,216
31,212
35
(15,178)
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
433
(11)
—
(726)
Global
Diversified
Income
Fund
65
586
—
(506)
Global
Real
Estate
Securities
Fund
388
3,338
23
2,039
Government
&
High
Quality
Bond
Account
450
60
—
(828)
High
Yield
Fund
830
—
—
69
Inflation
Protection
Fund
—
922
—
(1,044)
International
Small
Company
Fund
140
359
693
(310)
LargeCap
Growth
Fund
I
257
393
2,928
1,400
LargeCap
Value
Fund
III
1,021
117
2,157
486
MidCap
Account
—
—
—
233
Origin
Emerging
Markets
Fund
957
(381)
888
(2,831)
Overseas
Fund
529
—
—
(377)
Principal
Active
Global
Dividend
Income
ETF
—
2,042
—
(1,916)
Principal
Capital
Appreciation
Fund
315
—
817
(1,020)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
—
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
244
—
—
17
Principal
U.S.
Mega-Cap
ETF
1,251
8,392
—
8,505
Principal
U.S.
Small-Cap
Multi-Factor
ETF
849
895
—
11,726
Short-Term
Income
Fund
337
356
129
(1,019)
Spectrum
Preferred
and
Capital
Securities
Income
Fund
1,480
62
—
(526)
$
16,470
$
69,687
$
18,099
$
(8,821)
Amounts
in
thousands.
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
December
31,
2021
See
accompanying
notes.
210
INVESTMENT
COMPANIES
-
99.97%
Shares
Held
Value
(000's)
Money
Market
Funds
-
2.41%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
4,909,869
$
4,910
Principal
Exchange-Traded
Funds
-
12.04%
Principal
Investment
Grade
Corporate
Active
ETF
(a)
178,000
4,686
Principal
U.S.
Mega-Cap
ETF
(a)
283,230
12,575
Principal
U.S.
Small-Cap
Multi-Factor
ETF
(a)
153,200
7,265
$
24,526
Principal
Funds,
Inc.
Class
R-6
-
56.87%
Blue
Chip
Fund
(a)
361,594
14,840
Core
Fixed
Income
Fund
(a)
3,788,405
37,543
Diversified
International
Fund
(a)
140,712
2,019
Diversified
Real
Asset
Fund
(a)
741,319
9,800
Edge
MidCap
Fund
(a)
232,185
3,423
Global
Real
Estate
Securities
Fund
(a)
574,269
6,822
High
Yield
Fund
(a)
1,092,506
7,943
International
Small
Company
Fund
(a)
204,114
2,398
LargeCap
Growth
Fund
I
(a)
271,987
6,046
Origin
Emerging
Markets
Fund
(a)
678,046
8,855
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(a)
1,560,989
16,125
$
115,814
Principal
Funds,
Inc.
Institutional
Class
-
16.02%
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
(a)
1,160,405
11,778
LargeCap
Value
Fund
III
(a)
264,003
5,183
Overseas
Fund
(a)
144,343
1,520
Principal
Capital
Appreciation
Fund
(a)
30,337
2,022
Short-Term
Income
Fund
(a)
994,037
12,127
$
32,630
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
12.63%
Equity
Income
Account
(a)
331,257
11,346
Government
&
High
Quality
Bond
Account
(a)
1,281,864
12,152
MidCap
Account
(a)
29,633
2,215
$
25,713
TOTAL
INVESTMENT
COMPANIES
$
203,593
Total
Investments
$
203,593
Other
Assets
and
Liabilities
- 0.03%
63
TOTAL
NET
ASSETS
-
100.00%
$
203,656
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
51.24%
Domestic
Equity
Funds
31.88%
International
Equity
Funds
9.63%
Specialty
Funds
4.81%
Money
Market
Funds
2.41%
Other
Assets
and
Liabilities
0.03%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
December
31,
2021
See
accompanying
notes.
211
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
13,273
$
2,876
$
3,681
$
14,840
Core
Fixed
Income
Fund
36,765
9,202
6,998
37,543
Diversified
International
Fund
12,225
1,011
11,753
2,019
Diversified
Real
Asset
Fund
2,947
8,279
1,974
9,800
Edge
MidCap
Fund
6,338
1,470
4,561
3,423
Equity
Income
Account
21,471
2,311
15,542
11,346
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
—
12,353
191
11,778
Global
Diversified
Income
Fund
3,339
44
3,416
—
Global
Real
Estate
Securities
Fund
8,971
933
4,929
6,822
Government
&
High
Quality
Bond
Account
15,208
4,683
7,383
12,152
High
Yield
Fund
6,750
1,859
701
7,943
Inflation
Protection
Fund
3,207
56
3,228
—
International
Small
Company
Fund
1,583
1,090
231
2,398
LargeCap
Growth
Fund
I
—
6,692
1,017
6,046
LargeCap
Value
Fund
III
—
5,448
358
5,183
MidCap
Account
—
2,151
4
2,215
Origin
Emerging
Markets
Fund
5,075
5,609
1,217
8,855
Overseas
Fund
—
1,617
19
1,520
Principal
Active
Global
Dividend
Income
ETF
1,582
—
1,602
—
Principal
Capital
Appreciation
Fund
—
2,177
—
2,022
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
251
18,656
13,997
4,910
Principal
Investment
Grade
Corporate
Active
ETF
—
4,678
—
4,686
Principal
U.S.
Mega-Cap
ETF
13,619
—
4,258
12,575
Principal
U.S.
Small-Cap
Multi-Factor
ETF
6,375
3,786
5,184
7,265
Short-Term
Income
Fund
19,865
1,786
9,198
12,127
Spectrum
Preferred
and
Capital
Securities
Income
Fund
15,685
2,095
1,439
16,125
$
194,529
$
100,862
$
102,881
$
203,593
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
126
$
178
$
889
$
2,194
Core
Fixed
Income
Fund
791
(114)
—
(1,312)
Diversified
International
Fund
76
3,069
175
(2,533)
Diversified
Real
Asset
Fund
542
36
115
512
Edge
MidCap
Fund
116
1,205
720
(1,029)
Equity
Income
Account
208
5,235
6
(2,129)
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
223
(8)
—
(376)
Global
Diversified
Income
Fund
32
117
—
(84)
Global
Real
Estate
Securities
Fund
154
949
9
898
Government
&
High
Quality
Bond
Account
207
(114)
—
(242)
High
Yield
Fund
396
(1)
—
36
Inflation
Protection
Fund
—
312
—
(347)
International
Small
Company
Fund
35
5
175
(49)
LargeCap
Growth
Fund
I
50
102
565
269
LargeCap
Value
Fund
III
140
13
296
80
MidCap
Account
—
—
—
68
Origin
Emerging
Markets
Fund
175
(103)
163
(509)
Overseas
Fund
110
(1)
—
(77)
Principal
Active
Global
Dividend
Income
ETF
—
350
—
(330)
Principal
Capital
Appreciation
Fund
48
—
125
(155)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
—
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
114
—
—
8
Principal
U.S.
Mega-Cap
ETF
238
1,541
—
1,673
Principal
U.S.
Small-Cap
Multi-Factor
ETF
140
679
—
1,609
Short-Term
Income
Fund
165
123
61
(449)
Spectrum
Preferred
and
Capital
Securities
Income
Fund
717
(4)
—
(212)
$
4,803
$
13,569
$
3,299
$
(2,486)
Amounts
in
thousands.
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
December
31,
2021
See
accompanying
notes.
212
INVESTMENT
COMPANIES
-
99.91%
Shares
Held
Value
(000's)
Money
Market
Funds
-
3.25%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
14,113,065
$
14,113
Principal
Exchange-Traded
Funds
-
21.93%
Principal
Investment
Grade
Corporate
Active
ETF
(a)
71,000
1,868
Principal
U.S.
Mega-Cap
ETF
(a)
1,171,311
52,006
Principal
U.S.
Small-Cap
Multi-Factor
ETF
(a)
875,400
41,514
$
95,388
Principal
Funds,
Inc.
Class
R-6
-
49.01%
Blue
Chip
Fund
(a)
1,455,035
59,716
Core
Fixed
Income
Fund
(a)
1,743,679
17,280
Diversified
International
Fund
(a)
1,063,852
15,266
Diversified
Real
Asset
Fund
(a)
1,569,779
20,753
Edge
MidCap
Fund
(a)
1,016,339
14,981
Global
Real
Estate
Securities
Fund
(a)
675,104
8,020
High
Yield
Fund
(a)
296,283
2,154
International
Small
Company
Fund
(a)
628,775
7,388
LargeCap
Growth
Fund
I
(a)
1,158,859
25,761
Origin
Emerging
Markets
Fund
(a)
2,810,247
36,702
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(a)
492,526
5,088
$
213,109
Principal
Funds,
Inc.
Institutional
Class
-
11.76%
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
(a)
403,264
4,093
LargeCap
Value
Fund
III
(a)
1,453,029
28,523
Overseas
Fund
(a)
596,719
6,284
Principal
Capital
Appreciation
Fund
(a)
118,867
7,922
Short-Term
Income
Fund
(a)
353,052
4,307
$
51,129
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
13.96%
Equity
Income
Account
(a)
1,404,498
48,104
Government
&
High
Quality
Bond
Account
(a)
565,142
5,358
MidCap
Account
(a)
97,065
7,256
$
60,718
TOTAL
INVESTMENT
COMPANIES
$
434,457
Total
Investments
$
434,457
Other
Assets
and
Liabilities
- 0.09%
370
TOTAL
NET
ASSETS
-
100.00%
$
434,827
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
65.72%
International
Equity
Funds
13.43%
Fixed
Income
Funds
12.74%
Specialty
Funds
4.77%
Money
Market
Funds
3.25%
Other
Assets
and
Liabilities
0.09%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
December
31,
2021
See
accompanying
notes.
213
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
51,403
$
8,996
$
10,024
$
59,716
Core
Fixed
Income
Fund
18,675
6,689
7,367
17,280
Diversified
International
Fund
49,312
3,479
39,029
15,266
Diversified
Real
Asset
Fund
5,956
17,220
3,595
20,753
Edge
MidCap
Fund
26,819
5,198
17,664
14,981
Equity
Income
Account
73,667
5,031
42,178
48,104
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
—
4,221
—
4,093
Global
Real
Estate
Securities
Fund
11,374
2,889
8,773
8,020
Government
&
High
Quality
Bond
Account
7,819
2,727
5,058
5,358
High
Yield
Fund
3,777
195
1,826
2,154
Inflation
Protection
Fund
5,877
—
5,811
—
International
Small
Company
Fund
6,294
3,282
2,192
7,388
LargeCap
Growth
Fund
I
—
25,161
450
25,761
LargeCap
Value
Fund
III
—
28,480
249
28,523
MidCap
Account
—
7,022
—
7,256
Origin
Emerging
Markets
Fund
19,783
22,054
2,622
36,702
Overseas
Fund
—
6,605
—
6,284
Principal
Active
Global
Dividend
Income
ETF
6,010
—
6,094
—
Principal
Capital
Appreciation
Fund
—
8,519
—
7,922
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
649
42,400
28,936
14,113
Principal
Investment
Grade
Corporate
Active
ETF
—
1,865
—
1,868
Principal
U.S.
Mega-Cap
ETF
52,601
—
13,189
52,006
Principal
U.S.
Small-Cap
Multi-Factor
ETF
25,597
16,086
9,310
41,514
Short-Term
Income
Fund
9,958
3,111
8,659
4,307
Spectrum
Preferred
and
Capital
Securities
Income
Fund
8,731
688
4,238
5,088
$
384,302
$
221,918
$
217,264
$
434,457
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
490
$
476
$
3,469
$
8,865
Core
Fixed
Income
Fund
313
(8)
—
(709)
Diversified
International
Fund
576
9,612
1,318
(8,108)
Diversified
Real
Asset
Fund
1,124
84
242
1,088
Edge
MidCap
Fund
506
3,737
3,140
(3,109)
Equity
Income
Account
963
7,191
28
4,393
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
76
—
—
(128)
Global
Real
Estate
Securities
Fund
179
1,360
11
1,170
Government
&
High
Quality
Bond
Account
71
78
—
(208)
High
Yield
Fund
129
45
—
(37)
Inflation
Protection
Fund
—
5
—
(71)
International
Small
Company
Fund
109
161
537
(157)
LargeCap
Growth
Fund
I
211
30
2,398
1,020
LargeCap
Value
Fund
III
770
2
1,627
290
MidCap
Account
—
—
—
234
Origin
Emerging
Markets
Fund
720
(242)
663
(2,271)
Overseas
Fund
453
—
—
(321)
Principal
Active
Global
Dividend
Income
ETF
—
1,337
—
(1,253)
Principal
Capital
Appreciation
Fund
188
—
484
(597)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
—
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
44
—
—
3
Principal
U.S.
Mega-Cap
ETF
941
4,425
—
8,169
Principal
U.S.
Small-Cap
Multi-Factor
ETF
646
428
—
8,713
Short-Term
Income
Fund
51
170
21
(273)
Spectrum
Preferred
and
Capital
Securities
Income
Fund
260
76
—
(169)
$
8,820
$
28,967
$
13,938
$
16,534
Amounts
in
thousands.
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
December
31,
2021
See
accompanying
notes.
214
INVESTMENT
COMPANIES
-
99.95%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.96%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
3,795,091
$
3,795
Principal
Exchange-Traded
Funds
-
21.18%
Principal
Active
High
Yield
ETF
(a)
576,116
12,000
Principal
Investment
Grade
Corporate
Active
ETF
(a)
724,298
19,063
Principal
U.S.
Mega-Cap
ETF
(a)
180,407
8,010
Principal
U.S.
Small-Cap
Multi-Factor
ETF
(a)
42,000
1,992
$
41,065
Principal
Funds,
Inc.
Class
R-6
-
48.90%
Blue
Chip
Fund
(a)
241,801
9,924
Core
Fixed
Income
Fund
(a)
3,486,506
34,551
Diversified
International
Fund
(a)
339,553
4,873
Diversified
Real
Asset
Fund
(a)
953,149
12,601
Global
Real
Estate
Securities
Fund
(a)
688,463
8,179
High
Yield
Fund
(a)
286,974
2,086
Origin
Emerging
Markets
Fund
(a)
131,564
1,718
Small-
MidCap
Dividend
Income
Fund
(a)
228,456
4,192
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(a)
1,613,756
16,670
$
94,794
Principal
Funds,
Inc.
Institutional
Class
-
14.20%
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
(a)
580,745
5,895
LargeCap
Value
Fund
III
(a)
175,368
3,442
Principal
Capital
Appreciation
Fund
(a)
48,661
3,243
Short-Term
Income
Fund
(a)
1,224,877
14,944
$
27,524
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
13.71%
Equity
Income
Account
(a)
158,089
5,414
Government
&
High
Quality
Bond
Account
(a)
2,232,065
21,160
$
26,574
TOTAL
INVESTMENT
COMPANIES
$
193,752
Total
Investments
$
193,752
Other
Assets
and
Liabilities
- 0.05%
100
TOTAL
NET
ASSETS
-
100.00%
$
193,852
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
67.70%
Domestic
Equity
Funds
18.68%
Specialty
Funds
6.50%
International
Equity
Funds
5.11%
Money
Market
Funds
1.96%
Other
Assets
and
Liabilities
0.05%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
December
31,
2021
See
accompanying
notes.
215
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
7,637
$
3,283
$
2,402
$
9,924
Core
Fixed
Income
Fund
19,176
20,825
4,622
34,551
Diversified
International
Fund
9,697
1,537
6,487
4,873
Diversified
Real
Asset
Fund
—
13,397
1,261
12,601
Edge
MidCap
Fund
2,368
110
2,708
—
Equity
Income
Account
15,609
2,052
14,259
5,414
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
—
6,153
70
5,895
Global
Real
Estate
Securities
Fund
6,226
5,880
5,687
8,179
Government
&
High
Quality
Bond
Account
25,806
6,003
9,916
21,160
High
Yield
Fund
5,376
799
4,104
2,086
Inflation
Protection
Fund
11,519
451
11,837
—
LargeCap
Value
Fund
III
—
3,483
91
3,442
Origin
Emerging
Markets
Fund
—
2,837
896
1,718
Principal
Active
High
Yield
ETF
12,230
—
818
12,000
Principal
Capital
Appreciation
Fund
—
3,491
—
3,243
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
559
10,566
7,330
3,795
Principal
Investment
Grade
Corporate
Active
ETF
19,414
421
—
19,063
Principal
U.S.
Mega-Cap
ETF
7,319
—
1,080
8,010
Principal
U.S.
Small-Cap
Multi-Factor
ETF
3,785
714
3,675
1,992
Short-Term
Income
Fund
22,584
2,928
10,182
14,944
Small-
MidCap
Dividend
Income
Fund
—
4,570
681
4,192
Spectrum
Preferred
and
Capital
Securities
Income
Fund
14,891
3,845
1,840
16,670
$
184,196
$
93,345
$
89,946
$
193,752
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
89
$
(13)
$
634
$
1,419
Core
Fixed
Income
Fund
664
8
—
(836)
Diversified
International
Fund
183
1,097
420
(971)
Diversified
Real
Asset
Fund
687
3
148
462
Edge
MidCap
Fund
—
675
—
(445)
Equity
Income
Account
110
6,535
3
(4,523)
Finisterre
Emerging
Markets
Total
Return
Bond
Fund
110
(3)
—
(185)
Global
Real
Estate
Securities
Fund
189
459
11
1,301
Government
&
High
Quality
Bond
Account
442
(196)
—
(537)
High
Yield
Fund
159
335
—
(320)
Inflation
Protection
Fund
—
920
—
(1,053)
LargeCap
Value
Fund
III
93
1
196
49
Origin
Emerging
Markets
Fund
34
(89)
33
(134)
Principal
Active
High
Yield
ETF
513
34
—
554
Principal
Capital
Appreciation
Fund
76
—
198
(248)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
—
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
598
—
—
(772)
Principal
U.S.
Mega-Cap
ETF
135
358
—
1,413
Principal
U.S.
Small-Cap
Multi-Factor
ETF
58
1,077
—
91
Short-Term
Income
Fund
191
101
75
(487)
Small-
MidCap
Dividend
Income
Fund
18
39
—
264
Spectrum
Preferred
and
Capital
Securities
Income
Fund
713
(11)
—
(215)
$
5,062
$
11,330
$
1,718
$
(5,173)
Amounts
in
thousands.
Schedule
of
Investments
SAM
Strategic
Growth
Portfolio
December
31,
2021
See
accompanying
notes.
216
INVESTMENT
COMPANIES
-
99.93%
Shares
Held
Value
(000's)
Money
Market
Funds
-
2.32%
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c)
9,966,467
$
9,966
Principal
Exchange-Traded
Funds
-
19.13%
Principal
U.S.
Mega-Cap
ETF
(a)
978,000
43,423
Principal
U.S.
Small-Cap
Multi-Factor
ETF
(a)
814,100
38,607
$
82,030
Principal
Funds,
Inc.
Class
R-6
-
50.16%
Blue
Chip
Fund
(a)
1,491,120
61,196
Diversified
International
Fund
(a)
1,777,062
25,501
Diversified
Real
Asset
Fund
(a)
1,470,661
19,442
Edge
MidCap
Fund
(a)
1,114,453
16,427
Global
Real
Estate
Securities
Fund
(a)
272,593
3,238
International
Small
Company
Fund
(a)
834,169
9,801
LargeCap
Growth
Fund
I
(a)
2,419,144
53,778
Origin
Emerging
Markets
Fund
(a)
1,973,874
25,779
$
215,162
Principal
Funds,
Inc.
Institutional
Class
-
13.64%
LargeCap
Value
Fund
III
(a)
1,713,105
33,629
Overseas
Fund
(a)
1,470,275
15,482
Principal
Capital
Appreciation
Fund
(a)
141,127
9,406
$
58,517
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
14.68%
Equity
Income
Account
(a)
1,448,089
49,597
MidCap
Account
(a)
178,801
13,367
$
62,964
TOTAL
INVESTMENT
COMPANIES
$
428,639
Total
Investments
$
428,639
Other
Assets
and
Liabilities
- 0.07%
308
TOTAL
NET
ASSETS
-
100.00%
$
428,947
(a)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
74.48%
International
Equity
Funds
12.65%
Fixed
Income
Funds
5.95%
Specialty
Funds
4.53%
Money
Market
Funds
2.32%
Other
Assets
and
Liabilities
0.07%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Strategic
Growth
Portfolio
December
31,
2021
See
accompanying
notes.
217
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
49,500
$
6,410
$
3,214
$
61,196
Diversified
International
Fund
68,142
5,659
49,566
25,501
Diversified
Real
Asset
Fund
—
20,987
2,306
19,442
Edge
MidCap
Fund
28,530
7,004
19,654
16,427
Equity
Income
Account
65,724
6,134
32,662
49,597
Global
Real
Estate
Securities
Fund
3,321
768
1,507
3,238
International
Small
Company
Fund
6,854
4,663
1,557
9,801
LargeCap
Growth
Fund
I
30,989
24,564
5,723
53,778
LargeCap
Value
Fund
III
16,752
15,595
936
33,629
MidCap
Account
—
12,972
4
13,367
Origin
Emerging
Markets
Fund
18,290
10,360
1,455
25,779
Overseas
Fund
—
16,318
33
15,482
Principal
Capital
Appreciation
Fund
—
10,112
—
9,406
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
480
39,786
30,300
9,966
Principal
U.S.
Mega-Cap
ETF
39,585
1,928
7,941
43,423
Principal
U.S.
Small-Cap
Multi-Factor
ETF
27,296
16,462
14,032
38,607
$
355,463
$
199,722
$
170,890
$
428,639
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
Loss
Blue
Chip
Fund
$
473
$
59
$
3,347
$
8,441
Diversified
International
Fund
962
10,767
2,199
(9,501)
Diversified
Real
Asset
Fund
1,070
9
227
752
Edge
MidCap
Fund
555
3,848
3,446
(3,301)
Equity
Income
Account
955
4,527
28
5,874
Global
Real
Estate
Securities
Fund
70
275
4
381
International
Small
Company
Fund
144
101
712
(260)
LargeCap
Growth
Fund
I
440
274
5,013
3,674
LargeCap
Value
Fund
III
905
(3)
1,912
2,221
MidCap
Account
—
—
—
399
Origin
Emerging
Markets
Fund
505
(99)
465
(1,317)
Overseas
Fund
1,118
(2)
—
(801)
Principal
Capital
Appreciation
Fund
220
—
566
(706)
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
—
—
—
—
Principal
U.S.
Mega-Cap
ETF
745
1,838
—
8,013
Principal
U.S.
Small-Cap
Multi-Factor
ETF
639
371
—
8,510
$
8,801
$
21,965
$
17,919
$
22,379
Amounts
in
thousands.
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2021
See
accompanying
notes.
218
INVESTMENT
COMPANIES
-
1
.63
%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1
.63
%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.03%
(a),(b)
297,000
$
297
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(c),(d)
1,990,631
1,991
$
2,288
TOTAL
INVESTMENT
COMPANIES
$
2,288
BONDS
-
92
.12
%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
0
.19
%
Raytheon
Technologies
Corp
3.20%,
03/15/2024
$
250
$
260
Agriculture
-
0
.26
%
Bunge
Ltd
Finance
Corp
1.63%,
08/17/2025
100
100
4.35%,
03/15/2024
250
266
$
366
Airlines
-
0
.44
%
Alaska
Airlines
2020-1
Class
A
Pass
Through
Trust
4.80%,
02/15/2029
(e)
253
277
American
Airlines
2013-2
Class
A
Pass
Through
Trust
4.95%,
07/15/2024
93
95
Delta
Air
Lines
Inc
/
SkyMiles
IP
Ltd
4.50%,
10/20/2025
(e)
229
241
$
613
Automobile
Asset
Backed
Securities
-
6
.29
%
Americredit
Automobile
Receivables
Trust
2019-1
2.97%,
11/20/2023
2
2
Americredit
Automobile
Receivables
Trust
2019-2
2.28%,
01/18/2024
82
82
AmeriCredit
Automobile
Receivables
Trust
2020-2
0.60%,
12/18/2023
26
26
AmeriCredit
Automobile
Receivables
Trust
2020-3
0.42%,
03/18/2024
124
124
AmeriCredit
Automobile
Receivables
Trust
2021-1
0.28%,
06/18/2024
224
224
CPS
Auto
Receivables
Trust
2021-A
0.35%,
01/16/2024
(e)
53
53
0.61%,
02/18/2025
(e)
125
125
CPS
Auto
Receivables
Trust
2021-B
0.37%,
03/17/2025
(e)
156
156
CPS
Auto
Receivables
Trust
2021-C
0.33%,
07/15/2024
(e)
202
202
CPS
Auto
Receivables
Trust
2021-D
0.61%,
10/15/2025
(e)
360
360
Ford
Credit
Auto
Owner
Trust
2017-REV1
2.62%,
08/15/2028
(e)
500
501
Ford
Credit
Auto
Owner
Trust
2018-REV2
3.47%,
01/15/2030
(e)
400
416
Ford
Credit
Auto
Owner
Trust
2019-REV1
3.52%,
07/15/2030
(e)
300
315
Ford
Credit
Auto
Owner
Trust
2020-REV2
1.06%,
04/15/2033
(e)
475
465
Ford
Credit
Auto
Owner
Trust
2021-REV1
1.37%,
10/17/2033
(e)
250
247
GM
Financial
Consumer
Automobile
Receivables
Trust
2021-1
0.23%,
11/16/2023
102
102
OneMain
Direct
Auto
Receivables
Trust
2018-1
3.43%,
12/16/2024
(e)
15
15
OneMain
Direct
Auto
Receivables
Trust
2019-1
3.63%,
09/14/2027
(e)
750
791
OneMain
Direct
Auto
Receivables
Trust
2021-1
0.87%,
07/14/2028
(e)
750
740
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Asset
Backed
Securities
(continued)
Santander
Drive
Auto
Receivables
Trust
2021-1
0.29%,
11/15/2023
$
26
$
26
Santander
Drive
Auto
Receivables
Trust
2021-2
0.28%,
04/15/2024
459
459
Santander
Drive
Auto
Receivables
Trust
2021-3
0.29%,
05/15/2024
177
177
0.33%,
03/17/2025
250
249
Toyota
Auto
Loan
Extended
Note
Trust
2019-1
2.56%,
11/25/2031
(e)
250
258
Toyota
Auto
Loan
Extended
Note
Trust
2020-1
1.35%,
05/25/2033
(e)
200
199
Westlake
Automobile
Receivables
Trust
2020-3
0.56%,
05/15/2024
(e)
673
673
Westlake
Automobile
Receivables
Trust
2021-1
0.39%,
10/15/2024
(e)
281
281
0.64%,
03/16/2026
(e)
250
249
Westlake
Automobile
Receivables
Trust
2021-2
0.32%,
04/15/2025
(e)
947
944
World
Omni
Auto
Receivables
Trust
2021-A
0.17%,
02/15/2024
340
340
World
Omni
Select
Auto
Trust
2020-A
0.47%,
06/17/2024
42
42
$
8,843
Automobile
Manufacturers
-
0
.29
%
Toyota
Motor
Credit
Corp
2.60%,
01/11/2022
400
400
Banks
-
17
.37
%
Bank
of
America
Corp
0.98%,
09/25/2025
(f)
500
494
Secured
Overnight
Financing
Rate
+
0.91%
1.20%,
10/24/2026
(f)
400
392
Secured
Overnight
Financing
Rate
+
1.01%
1.29%,
01/20/2023
350
350
3
Month
USD
LIBOR
+
1.16%
1.32%,
06/19/2026
(f)
600
594
Secured
Overnight
Financing
Rate
+
1.15%
3.00%,
12/20/2023
(f)
430
439
3
Month
USD
LIBOR
+
0.79%
4.20%,
08/26/2024
750
804
Bank
of
Montreal
0.95%,
01/22/2027
(f)
300
290
Secured
Overnight
Financing
Rate
+
0.60%
Bank
of
New
York
Mellon
Corp/The
1.18%,
10/30/2023
500
504
3
Month
USD
LIBOR
+
1.05%
Bank
of
Nova
Scotia/The
1.30%,
09/15/2026
307
301
Barclays
PLC
2.28%,
11/24/2027
(f)
500
501
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.05%
BNP
Paribas
SA
3.50%,
03/01/2023
(e)
250
258
Capital
One
NA
1.28%,
01/30/2023
600
600
3
Month
USD
LIBOR
+
1.15%
Citigroup
Inc
0.78%,
10/30/2024
(f)
400
398
Secured
Overnight
Financing
Rate
+
0.69%
1.08%,
04/25/2022
200
200
3
Month
USD
LIBOR
+
0.96%
1.12%,
01/28/2027
(f)
400
390
Secured
Overnight
Financing
Rate
+
0.77%
1.60%,
09/01/2023
500
504
3
Month
USD
LIBOR
+
1.43%
3.50%,
05/15/2023
250
258
4.00%,
08/05/2024
274
292
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2021
See
accompanying
notes.
219
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Citigroup
Inc
(continued)
4.04%,
06/01/2024
(f)
$
250
$
261
3
Month
USD
LIBOR
+
1.02%
Credit
Suisse
Group
AG
4.21%,
06/12/2024
(e),(f)
500
520
3
Month
USD
LIBOR
+
1.24%
Deutsche
Bank
AG/New
York
NY
0.90%,
05/28/2024
175
173
0.96%,
11/08/2023
400
399
Fifth
Third
Bancorp
2.60%,
06/15/2022
800
806
3.65%,
01/25/2024
200
209
4.30%,
01/16/2024
400
423
First
Republic
Bank/CA
1.91%,
02/12/2024
(f)
250
253
Secured
Overnight
Financing
Rate
+
0.62%
Goldman
Sachs
Group
Inc/The
0.48%,
01/27/2023
300
299
0.59%,
11/17/2023
500
500
Secured
Overnight
Financing
Rate
+
0.54%
0.84%,
12/09/2026
300
302
Secured
Overnight
Financing
Rate
+
0.79%
1.22%,
12/06/2023
500
501
3.20%,
02/23/2023
300
308
HSBC
Holdings
PLC
2.63%,
11/07/2025
(f)
200
205
Secured
Overnight
Financing
Rate
+
1.40%
ING
Groep
NV
3.15%,
03/29/2022
450
453
JPMorgan
Chase
&
Co
1.02%,
04/25/2023
1,000
1,002
3
Month
USD
LIBOR
+
0.90%
1.04%,
02/04/2027
(f)
200
194
Secured
Overnight
Financing
Rate
+
0.70%
1.05%,
11/19/2026
(f)
400
390
Secured
Overnight
Financing
Rate
+
0.80%
1.35%,
10/24/2023
500
503
3
Month
USD
LIBOR
+
1.23%
1.51%,
06/01/2024
(f)
300
302
Secured
Overnight
Financing
Rate
+
1.46%
Morgan
Stanley
0.53%,
01/25/2024
(f)
250
249
Secured
Overnight
Financing
Rate
+
0.46%
0.75%,
01/20/2023
368
368
Secured
Overnight
Financing
Rate
+
0.70%
1.52%,
10/24/2023
1,400
1,412
3
Month
USD
LIBOR
+
1.40%
1.59%,
05/04/2027
(f)
250
247
Secured
Overnight
Financing
Rate
+
0.88%
4.10%,
05/22/2023
300
312
NatWest
Group
PLC
4.27%,
03/22/2025
(f)
250
265
3
Month
USD
LIBOR
+
1.76%
NatWest
Markets
PLC
0.80%,
08/12/2024
(e)
200
197
1.60%,
09/29/2026
(e)
750
738
Royal
Bank
of
Canada
0.88%,
01/20/2026
300
292
Societe
Generale
SA
2.63%,
01/22/2025
(e)
300
308
Toronto-Dominion
Bank/The
0.30%,
06/02/2023
300
298
0.75%,
01/06/2026
(g)
300
291
Truist
Bank
2.45%,
08/01/2022
700
707
Truist
Financial
Corp
1.27%,
03/02/2027
(f)
348
341
Secured
Overnight
Financing
Rate
+
0.61%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
UBS
AG/London
1.75%,
04/21/2022
(e)
$
250
$
251
UBS
Group
AG
1.01%,
07/30/2024
(e),(f)
250
249
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.83%
3.49%,
05/23/2023
(e)
300
303
Wells
Fargo
&
Co
1.65%,
06/02/2024
(f)
400
403
Secured
Overnight
Financing
Rate
+
1.60%
2.16%,
02/11/2026
(f)
200
203
3
Month
USD
LIBOR
+
0.75%
2.19%,
04/30/2026
(f)
400
407
Secured
Overnight
Financing
Rate
+
2.00%
3.07%,
01/24/2023
1,000
1,001
$
24,414
Beverages
-
0
.44
%
Anheuser-Busch
InBev
Finance
Inc
3.65%,
02/01/2026
300
322
Keurig
Dr
Pepper
Inc
0.75%,
03/15/2024
300
298
$
620
Biotechnology
-
1
.06
%
Biogen
Inc
3.63%,
09/15/2022
359
367
Gilead
Sciences
Inc
0.75%,
09/29/2023
1,124
1,119
$
1,486
Building
Materials
-
0
.23
%
Martin
Marietta
Materials
Inc
4.25%,
07/02/2024
309
329
Chemicals
-
0
.50
%
Celanese
US
Holdings
LLC
3.50%,
05/08/2024
200
209
Westlake
Chemical
Corp
3.60%,
07/15/2022
200
202
3.60%,
08/15/2026
268
287
$
698
Commercial
Mortgage
Backed
Securities
-
10
.22
%
BX
2021-LBA3
Mortgage
Trust
0.80%,
10/15/2036
(e)
250
249
1.00
x
1
Month
USD
LIBOR
+
0.69%
BX
Commercial
Mortgage
Trust
2021-21M
0.84%,
10/15/2036
(e)
375
372
1.00
x
1
Month
USD
LIBOR
+
0.73%
BX
Commercial
Mortgage
Trust
2021-ACNT
0.96%,
11/15/2026
(e)
400
399
1.00
x
1
Month
USD
LIBOR
+
0.85%
BX
Commercial
Mortgage
Trust
2021-SOAR
0.78%,
06/15/2038
(e)
300
298
1.00
x
1
Month
USD
LIBOR
+
0.67%
BX
Commercial
Mortgage
Trust
2021-VINO
0.76%,
05/15/2038
(e)
200
199
1.00
x
1
Month
USD
LIBOR
+
0.65%
BX
Commercial
Mortgage
Trust
2021-VOLT
0.81%,
09/15/2036
(e)
1,000
997
1.00
x
1
Month
USD
LIBOR
+
0.70%
BX
Commercial
Mortgage
Trust
2021-XL2
0.80%,
10/15/2038
(e)
1,000
994
1.00
x
1
Month
USD
LIBOR
+
0.69%
BX
Trust
2021-BXMF
0.75%,
10/15/2026
(e)
375
372
1.00
x
1
Month
USD
LIBOR
+
0.64%
BX
Trust
2021-LGCY
0.62%,
10/15/2023
(e)
750
743
1.00
x
1
Month
USD
LIBOR
+
0.51%
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2021
See
accompanying
notes.
220
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
Cold
Storage
Trust
2020-ICE5
1.01%,
11/15/2037
(e)
$
590
$
589
1.00
x
1
Month
USD
LIBOR
+
0.90%
ELP
Commercial
Mortgage
Trust
2021-ELP
0.81%,
11/15/2038
(e)
750
746
1.00
x
1
Month
USD
LIBOR
+
0.70%
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
0.22%,
09/25/2026
200
200
1.00
x
30
Day
Average
Secured
Overnight
Financing
Rate
+
0.17%
0.44%,
12/25/2025
130
129
0.52%,
06/25/2025
210
207
0.52%,
11/25/2026
296
289
0.53%,
01/25/2025
173
171
0.57%,
05/25/2026
94
92
0.68%,
06/25/2026
2,776
2,719
0.81%,
10/25/2026
299
294
FRESB
2020-SB79
Mortgage
Trust
0.80%,
07/25/2040
(h)
461
453
FRESB
2020-SB81Mortgage
Trust
0.72%,
10/25/2040
(h)
141
138
FRESB
2021-SB82
Mortgage
Trust
0.67%,
11/25/2025
(h)
272
266
FRESB
2021-SB83
Mortgage
Trust
0.63%,
01/25/2026
(h)
239
234
FRESB
2021-SB91
Mortgage
Trust
1.20%,
07/25/2041
(h)
200
199
Ginnie
Mae
0.14%,
02/16/2055
(h),(i)
2,715
10
0.20%,
10/16/2054
(h),(i)
1,719
27
0.29%,
01/16/2054
(h),(i)
1,324
13
0.36%,
09/16/2055
(h),(i)
1,232
18
0.42%,
01/16/2055
(h),(i)
2,790
26
0.89%,
06/16/2045
(h),(i)
411
9
1.26%,
12/16/2036
(h),(i)
82
4
MHC
Commercial
Mortgage
Trust
2021-MHC
0.91%,
04/15/2038
(e)
700
698
1.00
x
1
Month
USD
LIBOR
+
0.80%
MHC
Trust
2021-MHC2
0.96%,
05/15/2023
(e)
400
398
1.00
x
1
Month
USD
LIBOR
+
0.85%
MHP
2021-STOR
0.81%,
07/15/2038
(e)
200
199
1.00
x
1
Month
USD
LIBOR
+
0.70%
OPG
Trust
2021-PORT
0.59%,
10/15/2036
(e)
1,000
991
1.00
x
1
Month
USD
LIBOR
+
0.48%
SREIT
Trust
2021-MFP
0.83%,
11/15/2038
(e)
350
348
1.00
x
1
Month
USD
LIBOR
+
0.73%
TPGI
Trust
2021-DGWD
0.81%,
06/15/2026
(e)
275
274
1.00
x
1
Month
USD
LIBOR
+
0.70%
$
14,364
Computers
-
1
.22
%
Apple
Inc
0.70%,
02/08/2026
300
294
1.13%,
05/11/2025
900
897
3.25%,
02/23/2026
139
149
Dell
International
LLC
/
EMC
Corp
5.45%,
06/15/2023
52
55
Hewlett
Packard
Enterprise
Co
4.45%,
10/02/2023
300
316
$
1,711
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Consumer
Products
-
0
.33
%
Avery
Dennison
Corp
0.85%,
08/15/2024
$
475
$
468
Diversified
Financial
Services
-
0
.89
%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
1.65%,
10/29/2024
500
499
2.45%,
10/29/2026
250
252
Capital
One
Bank
USA
NA
2.01%,
01/27/2023
(f)
250
250
Secured
Overnight
Financing
Rate
+
0.62%
Capital
One
Financial
Corp
3.90%,
01/29/2024
242
255
$
1,256
Electric
-
7
.24
%
AES
Corp/The
1.38%,
01/15/2026
400
388
Alabama
Power
Co
2.45%,
03/30/2022
250
251
Alliant
Energy
Finance
LLC
1.40%,
03/15/2026
(e)
150
144
3.75%,
06/15/2023
(e)
900
932
American
Electric
Power
Co
Inc
0.61%,
11/01/2023
300
300
3
Month
USD
LIBOR
+
0.48%
Black
Hills
Corp
1.04%,
08/23/2024
250
247
4.25%,
11/30/2023
750
788
Dominion
Energy
Inc
0.73%,
09/15/2023
350
350
3
Month
USD
LIBOR
+
0.53%
3.07%,
08/15/2024
(h)
200
207
DTE
Energy
Co
1.05%,
06/01/2025
100
98
2.25%,
11/01/2022
250
253
2.53%,
10/01/2024
300
309
Duke
Energy
Corp
0.90%,
09/15/2025
250
243
Emera
US
Finance
LP
0.83%,
06/15/2024
395
388
Entergy
Louisiana
LLC
0.62%,
11/17/2023
150
149
0.95%,
10/01/2024
500
494
Evergy
Inc
2.45%,
09/15/2024
200
205
Exelon
Corp
3.50%,
06/01/2022
500
505
Florida
Power
&
Light
Co
0.30%,
05/10/2023
200
199
Secured
Overnight
Financing
Rate
+
0.25%
Fortis
Inc/Canada
3.06%,
10/04/2026
413
430
NextEra
Energy
Capital
Holdings
Inc
0.43%,
02/22/2023
200
200
3
Month
USD
LIBOR
+
0.27%
0.45%,
11/03/2023
800
800
Secured
Overnight
Financing
Rate
+
0.40%
Public
Service
Enterprise
Group
Inc
0.80%,
08/15/2025
400
389
2.88%,
06/15/2024
100
103
San
Diego
Gas
&
Electric
Co
1.91%,
02/01/2022
14
14
Southern
California
Edison
Co
1.85%,
02/01/2022
30
30
Southwestern
Electric
Power
Co
1.65%,
03/15/2026
400
397
Tucson
Electric
Power
Co
3.05%,
03/15/2025
100
104
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2021
See
accompanying
notes.
221
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Vistra
Operations
Co
LLC
3.70%,
01/30/2027
(e)
$
500
$
518
Xcel
Energy
Inc
0.50%,
10/15/2023
500
497
1.75%,
03/15/2027
250
248
$
10,180
Food
-
1
.57
%
JBS
USA
LUX
SA
/
JBS
USA
Finance
Inc
6.75%,
02/15/2028
(e)
362
390
Mars
Inc
0.88%,
07/16/2026
(e)
500
485
Nestle
Holdings
Inc
0.38%,
01/15/2024
(e)
850
840
0.61%,
09/14/2024
(e)
500
493
$
2,208
Forest
Products
&
Paper
-
0
.29
%
Georgia-Pacific
LLC
1.75%,
09/30/2025
(e)
400
402
Gas
-
0
.28
%
NiSource
Inc
0.95%,
08/15/2025
400
389
Healthcare
-
Products
-
0
.35
%
PerkinElmer
Inc
0.55%,
09/15/2023
500
496
Healthcare
-
Services
-
1
.26
%
Centene
Corp
4.25%,
12/15/2027
500
521
HCA
Inc
5.25%,
06/15/2026
662
745
Humana
Inc
0.65%,
08/03/2023
500
497
$
1,763
Home
Builders
-
0
.15
%
DR
Horton
Inc
2.50%,
10/15/2024
200
206
Home
Furnishings
-
0
.33
%
Panasonic
Corp
2.54%,
07/19/2022
(e)
200
202
2.68%,
07/19/2024
(e)
250
258
$
460
Insurance
-
4
.31
%
Five
Corners
Funding
Trust
4.42%,
11/15/2023
(e)
750
795
Guardian
Life
Global
Funding
0.88%,
12/10/2025
(e)
500
487
1.10%,
06/23/2025
(e)
550
545
MassMutual
Global
Funding
II
0.85%,
06/09/2023
(e)
500
500
2.75%,
06/22/2024
(e)
500
518
Metropolitan
Life
Global
Funding
I
0.40%,
01/07/2024
(e)
300
296
0.90%,
06/08/2023
(e)
350
351
3.60%,
01/11/2024
(e)
600
631
New
York
Life
Global
Funding
0.72%,
06/10/2022
(e)
1,000
1,002
3
Month
USD
LIBOR
+
0.52%
2.00%,
01/22/2025
(e)
200
204
2.30%,
06/10/2022
(e)
238
240
Northwestern
Mutual
Global
Funding
0.80%,
01/14/2026
(e)
500
485
$
6,054
Internet
-
0
.35
%
eBay
Inc
1.40%,
05/10/2026
500
492
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Machinery
-
Diversified
-
0
.18
%
Otis
Worldwide
Corp
0.58%,
04/05/2023
$
250
$
250
3
Month
USD
LIBOR
+
0.45%
Media
-
0
.96
%
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
4.91%,
07/23/2025
292
322
Sky
Ltd
3.13%,
11/26/2022
(e)
130
133
ViacomCBS
Inc
4.75%,
05/15/2025
450
493
Walt
Disney
Co/The
1.75%,
01/13/2026
400
404
$
1,352
Mining
-
0
.49
%
Anglo
American
Capital
PLC
5.38%,
04/01/2025
(e)
400
442
Glencore
Funding
LLC
1.63%,
09/01/2025
(e)
250
247
$
689
Miscellaneous
Manufacturers
-
0
.21
%
Siemens
Financieringsmaatschappij
NV
0.48%,
03/11/2024
(e)
300
301
Secured
Overnight
Financing
Rate
+
0.43%
Mortgage
Backed
Securities
-
2
.98
%
CHL
Mortgage
Pass-Through
Trust
2003-46
2.24%,
01/19/2034
(h)
10
9
Credit
Suisse
First
Boston
Mortgage
Securities
Corp
5.00%,
09/25/2019
1
1
GS
Mortgage-Backed
Securities
Corp
Trust
2020-PJ3
3.00%,
10/25/2050
(e),(h)
12
12
GS
Mortgage-Backed
Securities
Corp
Trust
2021-PJ3
2.50%,
08/25/2051
(e),(h)
131
132
JP
Morgan
Mortgage
Trust
2004-A3
2.07%,
07/25/2034
(h)
10
9
JP
Morgan
Mortgage
Trust
2004-S1
5.00%,
09/25/2034
19
20
JP
Morgan
Mortgage
Trust
2020-5
3.00%,
12/25/2050
(e),(h)
5
5
JP
Morgan
Mortgage
Trust
2021-1
2.50%,
06/25/2051
(e),(h)
388
390
Morgan
Stanley
Residential
Mortgage
Loan
Trust
2020-1
2.50%,
12/25/2050
(e),(h)
186
187
Oceanview
Mortgage
Trust
2021-3
2.50%,
06/25/2051
(e),(h)
458
462
PHH
Mortgage
Trust
Series
2008-CIM1
2.35%,
06/25/2038
33
33
1.00
x
1
Month
USD
LIBOR
+
2.25%
PSMC
2021-3
Trust
2.50%,
08/25/2051
(e),(h)
960
968
Sequoia
Mortgage
Trust
2020-1
3.50%,
02/25/2050
(e),(h)
1
1
Sequoia
Mortgage
Trust
2020-4
2.50%,
11/25/2050
(e),(h)
203
205
Sequoia
Mortgage
Trust
2021-3
2.50%,
05/25/2051
(e),(h)
456
461
Sequoia
Mortgage
Trust
2021-4
2.50%,
06/25/2051
(e),(h)
669
676
Wells
Fargo
Mortgage
Backed
Securities
2020-1
Trust
3.00%,
12/25/2049
(e),(h)
16
16
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2021
See
accompanying
notes.
222
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Wells
Fargo
Mortgage
Backed
Securities
2020-2
Trust
3.00%,
12/25/2049
(e),(h)
$
62
$
63
Wells
Fargo
Mortgage
Backed
Securities
2020-3
Trust
3.00%,
06/25/2050
(e),(h)
30
30
Wells
Fargo
Mortgage
Backed
Securities
2020-4
Trust
3.00%,
07/25/2050
(e),(h)
294
298
Wells
Fargo
Mortgage
Backed
Securities
2020-5
Trust
2.50%,
09/25/2050
(e),(h)
122
122
Wells
Fargo
Mortgage
Backed
Securities
2021-1
Trust
2.50%,
12/25/2050
(e),(h)
81
82
$
4,182
Office
&
Business
Equipment
-
0
.29
%
CDW
LLC
/
CDW
Finance
Corp
2.67%,
12/01/2026
400
410
Oil
&
Gas
-
1
.72
%
BP
Capital
Markets
PLC
3.81%,
02/10/2024
500
527
Chevron
USA
Inc
0.43%,
08/11/2023
300
299
0.69%,
08/12/2025
400
391
Coterra
Energy
Inc
4.38%,
06/01/2024
(e)
250
264
Exxon
Mobil
Corp
1.57%,
04/15/2023
150
152
2.99%,
03/19/2025
200
210
Phillips
66
3.85%,
04/09/2025
150
160
Suncor
Energy
Inc
2.80%,
05/15/2023
300
307
3.10%,
05/15/2025
100
105
$
2,415
Oil
&
Gas
Services
-
0
.15
%
Schlumberger
Holdings
Corp
3.75%,
05/01/2024
(e)
200
210
Other
Asset
Backed
Securities
-
10
.55
%
AMMC
CLO
15
Ltd
1.24%,
01/15/2032
(e)
600
600
1.00
x
3
Month
USD
LIBOR
+
1.12%
Bardot
CLO
Ltd
1.22%,
10/22/2032
(e)
500
500
1.00
x
3
Month
USD
LIBOR
+
1.09%
CCG
Receivables
Trust
2.80%,
09/14/2026
(e)
57
57
CCG
Receivables
Trust
2019-2
2.11%,
03/15/2027
(e)
109
110
CCG
Receivables
Trust
2020-1
0.54%,
12/14/2027
(e)
193
193
CCG
Receivables
Trust
2021-1
0.30%,
06/14/2027
(e)
512
509
CF
Hippolyta
LLC
1.53%,
03/15/2061
(e)
482
473
Dewolf
Park
CLO
Ltd
1.04%,
10/15/2030
(e)
1,500
1,498
1.00
x
3
Month
USD
LIBOR
+
0.92%
GreatAmerica
Leasing
Receivables
Funding
LLC
Series
2021-1
0.27%,
06/15/2023
(e)
228
228
KKR
CLO
18
Ltd
1.06%,
07/18/2030
(e)
1,000
1,000
1.00
x
3
Month
USD
LIBOR
+
0.94%
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Other
Asset
Backed
Securities
(continued)
KKR
Lending
Partners
III
Clo
LLC
1.47%,
10/20/2030
(e)
$
400
$
400
1.00
x
3
Month
USD
LIBOR
+
1.38%
1.64%,
10/20/2030
(e)
400
400
1.00
x
3
Month
USD
LIBOR
+
1.55%
Lake
Shore
MM
CLO
III
LLC
1.60%,
10/17/2031
(e)
1,000
997
1.00
x
3
Month
USD
LIBOR
+
1.48%
Madison
Park
Funding
XVIII
Ltd
1.06%,
10/21/2030
(e)
500
498
1.00
x
3
Month
USD
LIBOR
+
0.94%
Marathon
CLO
X
Ltd
1.22%,
11/15/2029
(e)
250
250
1.00
x
3
Month
USD
LIBOR
+
1.00%
Marathon
CLO
XIII
Ltd
1.44%,
04/15/2032
(e)
500
500
1.00
x
3
Month
USD
LIBOR
+
1.32%
MMAF
Equipment
Finance
LLC
2020-A
0.74%,
04/09/2024
(e)
339
339
MMAF
Equipment
Finance
LLC
2020-B
0.38%,
08/14/2023
(e)
286
286
MVW
2021-1W
LLC
1.14%,
01/22/2041
(e)
85
83
MVW
Owner
Trust
2016-1
2.25%,
12/20/2033
(e)
65
65
MVW
Owner
Trust
2018-1
3.45%,
01/21/2036
(e)
137
141
Oaktree
CLO
2019-4
Ltd
3.04%,
10/20/2032
(e)
1,000
1,000
1.00
x
3
Month
USD
LIBOR
+
1.12%
Parliament
Funding
II
ltd
1.49%,
10/20/2031
(e)
400
400
1.00
x
3
Month
USD
LIBOR
+
1.25%
PFS
Financing
Corp
0.71%,
04/15/2026
(e)
250
246
0.93%,
08/15/2024
(e)
500
501
0.97%,
02/15/2026
(e)
350
348
2.23%,
10/15/2024
(e)
750
758
2.86%,
04/15/2024
(e)
250
252
Shackleton
2017-X
CLO
Ltd
1.01%,
04/20/2029
(e)
400
400
1.00
x
3
Month
USD
LIBOR
+
0.89%
Stratus
CLO
2021-2
Ltd
1.12%,
12/28/2029
(e)
250
250
1.00
x
3
Month
USD
LIBOR
+
0.90%
Trafigura
Securitisation
Finance
PLC
2021-1
1.08%,
01/15/2025
(e)
600
592
Verizon
Owner
Trust
2018-A
3.23%,
04/20/2023
2
2
Verizon
Owner
Trust
2019-A
2.93%,
09/20/2023
128
129
Verizon
Owner
Trust
2019-B
2.33%,
12/20/2023
230
231
Volvo
Financial
Equipment
LLC
Series
2019-1
3.00%,
03/15/2023
(e)
31
31
Volvo
Financial
Equipment
LLC
Series
2020-1
0.37%,
04/17/2023
(e)
225
225
Voya
2012-4
Ltd
1.12%,
10/15/2030
(e)
250
250
1.00
x
3
Month
USD
LIBOR
+
1.00%
VSE
2018-A
VOI
Mortgage
LLC
3.56%,
02/20/2036
(e)
86
89
$
14,831
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2021
See
accompanying
notes.
223
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Packaging
&
Containers
-
0
.35
%
Graphic
Packaging
International
LLC
0.82%,
04/15/2024
(e)
$
300
$
295
1.51%,
04/15/2026
(e)
200
197
$
492
Pharmaceuticals
-
1
.95
%
AbbVie
Inc
2.60%,
11/21/2024
200
207
AstraZeneca
PLC
0.70%,
04/08/2026
500
484
Bayer
US
Finance
II
LLC
3.88%,
12/15/2023
(e)
200
209
Bristol-Myers
Squibb
Co
0.54%,
11/13/2023
300
299
0.75%,
11/13/2025
300
292
Cigna
Corp
0.61%,
03/15/2024
150
149
1.25%,
03/15/2026
300
296
GlaxoSmithKline
Capital
PLC
0.53%,
10/01/2023
500
498
Novartis
Capital
Corp
1.75%,
02/14/2025
300
304
$
2,738
Pipelines
-
2
.06
%
Buckeye
Partners
LP
4.15%,
07/01/2023
400
410
Enterprise
Products
Operating
LLC
3.50%,
02/01/2022
400
401
Florida
Gas
Transmission
Co
LLC
3.88%,
07/15/2022
(e)
250
252
Kinder
Morgan
Inc
1.40%,
01/15/2023
500
504
3
Month
USD
LIBOR
+
1.28%
ONEOK
Partners
LP
5.00%,
09/15/2023
825
869
Southeast
Supply
Header
LLC
4.25%,
06/15/2024
(e)
200
204
TransCanada
PipeLines
Ltd
2.37%,
05/15/2067
305
261
3
Month
USD
LIBOR
+
2.21%
$
2,901
REITs
-
3
.06
%
American
Tower
Corp
2.40%,
03/15/2025
200
205
American
Tower
Trust
#1
3.07%,
03/15/2048
(e)
1,225
1,226
3.65%,
03/15/2048
(e)
270
283
Crown
Castle
International
Corp
1.35%,
07/15/2025
250
247
CubeSmart
LP
4.00%,
11/15/2025
65
70
Omega
Healthcare
Investors
Inc
4.50%,
01/15/2025
269
287
4.95%,
04/01/2024
250
267
SBA
Tower
Trust
1.63%,
05/15/2051
(e)
500
492
1.88%,
07/15/2050
(e)
125
125
2.33%,
07/15/2052
(e)
653
666
2.84%,
01/15/2050
(e)
225
231
Ventas
Realty
LP
3.50%,
04/15/2024
198
207
$
4,306
Semiconductors
-
0
.44
%
Microchip
Technology
Inc
4.33%,
06/01/2023
200
208
NXP
BV
/
NXP
Funding
LLC
4.63%,
06/01/2023
(e)
200
209
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Semiconductors
(continued)
NXP
BV
/
NXP
Funding
LLC
/
NXP
USA
Inc
2.70%,
05/01/2025
(e)
$
200
$
207
$
624
Software
-
0
.77
%
Oracle
Corp
1.65%,
03/25/2026
300
298
Roper
Technologies
Inc
1.00%,
09/15/2025
300
293
VMware
Inc
0.60%,
08/15/2023
500
496
$
1,087
Student
Loan
Asset
Backed
Securities
-
6
.79
%
Commonbond
Student
Loan
Trust
2018-BGS
3.56%,
09/25/2045
(e)
101
104
Commonbond
Student
Loan
Trust
2018-C-GS
3.87%,
02/25/2046
(e)
121
124
Commonbond
Student
Loan
Trust
2019-A-GS
2.54%,
01/25/2047
(e)
195
198
Commonbond
Student
Loan
Trust
2020-A-GS
1.98%,
08/25/2050
(e)
92
92
Commonbond
Student
Loan
Trust
2021-A-GS
1.20%,
03/25/2052
(e)
373
370
Commonbond
Student
Loan
Trust
2021-B-GS
1.17%,
09/25/2051
(e)
469
460
EDvestinU
Private
Education
Loan
Issue
No
3
LLC
1.80%,
11/25/2045
(e)
210
207
Keycorp
Student
Loan
Trust
2000-b
0.43%,
07/25/2029
102
101
1.00
x
3
Month
USD
LIBOR
+
0.31%
KeyCorp
Student
Loan
Trust
2003-A
0.65%,
01/25/2037
228
228
1.00
x
3
Month
USD
LIBOR
+
0.53%
Laurel
Road
Prime
Student
Loan
Trust
2019-A
2.34%,
10/25/2048
(e)
18
19
Navient
Private
Education
Refi
Loan
Trust
2019-A
3.42%,
01/15/2043
(e)
45
46
Navient
Private
Education
Refi
Loan
Trust
2019-G
2.40%,
10/15/2068
(e)
131
133
Navient
Private
Education
Refi
Loan
Trust
2020-D
1.69%,
05/15/2069
(e)
205
206
Navient
Private
Education
Refi
Loan
Trust
2020-F
1.22%,
07/15/2069
(e)
210
209
Navient
Private
Education
Refi
Loan
Trust
2020-G
1.17%,
09/16/2069
(e)
239
238
Navient
Private
Education
Refi
Loan
Trust
2020-H
1.31%,
01/15/2069
(e)
168
167
Navient
Private
Education
Refi
Loan
Trust
2021-A
0.84%,
05/15/2069
(e)
158
156
Navient
Private
Education
Refi
Loan
Trust
2021-B
0.94%,
07/15/2069
(e)
338
334
Navient
Private
Education
Refi
Loan
Trust
2021-c
1.06%,
10/15/2069
(e)
186
183
Navient
Private
Education
Refi
Loan
Trust
2021-E
0.97%,
12/16/2069
(e)
457
449
Navient
Private
Education
Refi
Loan
Trust
2021-F
1.11%,
02/18/2070
(e)
482
473
Nelnet
Student
Loan
Trust
2021-A
1.36%,
04/20/2062
(e)
853
838
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2021
See
accompanying
notes.
224
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Student
Loan
Asset
Backed
Securities
(continued)
Nelnet
Student
Loan
Trust
2021-C
1.32%,
04/20/2062
(e)
$
276
$
272
Nelnet
Student
Loan
Trust
2021-D
1.63%,
04/20/2062
(e)
534
531
SLM
Private
Credit
Student
Loan
Trust
2004-A
0.60%,
06/15/2033
66
65
1.00
x
3
Month
USD
LIBOR
+
0.40%
SLM
Private
Credit
Student
Loan
Trust
2004-B
0.53%,
03/15/2024
114
114
1.00
x
3
Month
USD
LIBOR
+
0.33%
SLM
Private
Credit
Student
Loan
Trust
2006-A
0.49%,
06/15/2039
485
473
1.00
x
3
Month
USD
LIBOR
+
0.29%
SLM
Private
Credit
Student
Loan
Trust
2006-B
0.40%,
12/15/2039
193
189
1.00
x
3
Month
USD
LIBOR
+
0.20%
SMB
Private
Education
Loan
Trust
2021-A
0.61%,
01/15/2053
(e)
41
41
1.00
x
1
Month
USD
LIBOR
+
0.50%
1.07%,
01/15/2053
(e)
247
240
SMB
Private
Education
Loan
Trust
2021-B
1.31%,
07/17/2051
(e)
560
555
SMB
Private
Education
Loan
Trust
2021-D
1.34%,
03/17/2053
(e)
1,000
984
SMB
Private
Education
Loan
Trust
2021-E
1.68%,
02/15/2051
(e)
750
744
$
9,543
Telecommunications
-
2
.63
%
AT&T
Inc
1.05%,
02/15/2023
250
252
3
Month
USD
LIBOR
+
0.89%
1.70%,
03/25/2026
600
597
Crown
Castle
Towers
LLC
3.66%,
05/15/2045
(e)
100
104
4.24%,
07/15/2048
(e)
290
316
NTT
Finance
Corp
0.37%,
03/03/2023
(e)
200
199
0.58%,
03/01/2024
(e)
400
395
Sprint
Spectrum
Co
LLC
/
Sprint
Spectrum
Co
II
LLC
/
Sprint
Spectrum
Co
III
LLC
4.74%,
03/20/2025
(e)
934
978
5.15%,
03/20/2028
(e)
500
551
Verizon
Communications
Inc
0.84%,
03/20/2026
300
304
Secured
Overnight
Financing
Rate
+
0.79%
$
3,696
Transportation
-
0
.53
%
Canadian
Pacific
Railway
Co
1.35%,
12/02/2024
350
351
Ryder
System
Inc
1.75%,
09/01/2026
400
397
$
748
Trucking
&
Leasing
-
0
.15
%
Penske
Truck
Leasing
Co
Lp
/
PTL
Finance
Corp
3.45%,
07/01/2024
(e)
200
210
TOTAL
BONDS
$
129,463
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
5
.02
%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
0
.01
%
2.34%,
09/01/2035
$
6
$
6
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.25%
Federal
National
Mortgage
Association
(FNMA)
-
0
.03
%
1.64%,
04/01/2033
11
11
1.00
x
6
Month
USD
LIBOR
+
1.51%
1.87%,
08/01/2034
3
4
1.00
x
12
Month
USD
LIBOR
+
1.63%
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)
(continued)
1.88%,
07/01/2034
$
7
$
7
1.00
x
12
Month
USD
LIBOR
+
1.63%
2.02%,
12/01/2032
3
3
1.00
x
12
Month
USD
LIBOR
+
1.64%
2.13%,
01/01/2035
4
4
1.00
x
12
Month
USD
LIBOR
+
1.75%
2.18%,
02/01/2037
11
12
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.08%
2.21%,
02/01/2035
2
2
1.00
x
6
Month
USD
LIBOR
+
2.06%
2.41%,
11/01/2032
1
1
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.29%
8.00%,
05/01/2027
2
2
$
46
U.S.
Treasury
-
2
.13
%
0.13%,
10/15/2023
250
248
0.25%,
03/15/2024
400
395
0.38%,
10/31/2023
150
149
0.38%,
09/15/2024
650
641
1.25%,
08/31/2024
800
807
1.50%,
09/15/2022
750
756
$
2,996
U.S.
Treasury
Bill
-
2
.85
%
0.03%,
01/13/2022
(j)
600
600
0.04%,
02/22/2022
(j)
600
600
0.04%,
03/10/2022
(j)
2,800
2,800
$
4,000
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
7,048
Total
Investments
$
138,799
Other
Assets
and
Liabilities
- 1.23%
1,733
TOTAL
NET
ASSETS
-
100.00%
$
140,532
(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
$297
or
0.21%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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
$65,814
or
46.83%
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,
the
value
of
these
securities
totaled
$288
or
0.20%
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)
Security
is
an
Interest
Only
Strip.
(j)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2021
See
accompanying
notes.
225
Portfolio
Summary (unaudited)
Sector
Percent
Financial
25
.63
%
Asset
Backed
Securities
23
.63
%
Mortgage
Securities
13
.24
%
Utilities
7
.52
%
Consumer,
Non-cyclical
7
.22
%
Government
4
.98
%
Communications
3
.94
%
Energy
3
.93
%
Technology
2
.72
%
Industrial
1
.84
%
Money
Market
Funds
1
.63
%
Basic
Materials
1
.28
%
Consumer,
Cyclical
1
.21
%
Other
Assets
and
Liabilities
1
.23
%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
2,196
$
85,174
$
85,379
$
1,991
$
2,196
$
85,174
$
85,379
$
1,991
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
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
2022
Short
15
$
1,815
$
4
Total
$
4
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
SmallCap
Account
December
31,
2021
See
accompanying
notes.
226
INVESTMENT
COMPANIES
-
5.18%
Shares
Held
Value
(000's)
Money
Market
Funds
-
5.18%
BlackRock
Liquidity
FedFund
-
Institutional
Class
0.03%
(a),(b)
3,619,728
$
3,619
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
(a),(b),(c),(d)
7,997,778
7,998
$
11,617
TOTAL
INVESTMENT
COMPANIES
$
11,617
COMMON
STOCKS
-
98.06%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
0.70%
AAR
Corp
(d)
40,300
$
1,573
Agriculture
-
1.64%
Darling
Ingredients
Inc
(d)
44,100
3,056
Vital
Farms
Inc
(d)
34,800
628
$
3,684
Airlines
-
0.28%
Sun
Country
Airlines
Holdings
Inc
(d)
23,300
635
Apparel
-
0.44%
Allbirds
Inc
(d),(e)
9,900
149
Crocs
Inc
(d)
6,500
834
$
983
Automobile
Parts
&
Equipment
-
0.79%
Modine
Manufacturing
Co
(d)
57,500
580
Visteon
Corp
(d)
10,800
1,200
$
1,780
Banks
-
6.02%
Ameris
Bancorp
44,900
2,231
BancFirst
Corp
10,600
748
Bancorp
Inc/The
(d)
56,800
1,438
First
Foundation
Inc
32,200
800
First
Interstate
BancSystem
Inc
35,900
1,460
First
Merchants
Corp
31,900
1,336
Independent
Bank
Corp
4,702
383
Independent
Bank
Corp/MI
21,000
501
Lakeland
Bancorp
Inc
26,200
498
Umpqua
Holdings
Corp
69,000
1,328
United
Community
Banks
Inc/GA
77,420
2,782
$
13,505
Biotechnology
-
5.00%
2seventy
bio
Inc
(d)
7,466
191
ADC
Therapeutics
SA
(d)
14,600
295
Allogene
Therapeutics
Inc
(d)
23,600
352
Bluebird
Bio
Inc
(d)
20,600
206
Cellectis
SA
ADR
(d)
33,200
269
ChemoCentryx
Inc
(d)
12,000
437
Denali
Therapeutics
Inc
(d)
26,100
1,164
Design
Therapeutics
Inc
(d),(e)
24,300
520
Horizon
Therapeutics
Plc
(d)
27,700
2,985
Immunocore
Holdings
PLC
ADR
(d)
13,600
466
Insmed
Inc
(d)
37,000
1,008
Iovance
Biotherapeutics
Inc
(d)
28,100
536
MacroGenics
Inc
(d)
28,700
461
Magenta
Therapeutics
Inc
(d)
60,000
266
Olink
Holding
AB
ADR
(d),(e)
34,400
626
Precision
BioSciences
Inc
(d)
72,800
539
Seagen
Inc
(d)
5,800
897
$
11,218
Building
Materials
-
1.78%
Builders
FirstSource
Inc
(d)
26,400
2,263
Masonite
International
Corp
(d)
14,600
1,722
$
3,985
Chemicals
-
1.92%
Atotech
Ltd
(d)
80,300
2,049
Diversey
Holdings
Ltd
(d)
124,800
1,661
Koppers
Holdings
Inc
(d)
19,000
595
$
4,305
Commercial
Services
-
4.09%
ABM
Industries
Inc
45,600
1,863
AMN
Healthcare
Services
Inc
(d)
19,500
2,385
Coursera
Inc
(d)
12,900
315
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
First
Advantage
Corp
(d)
20,300
$
386
Heidrick
&
Struggles
International
Inc
17,400
761
Huron
Consulting
Group
Inc
(d)
24,600
1,228
ICF
International
Inc
10,100
1,036
Medifast
Inc
5,700
1,194
$
9,168
Computers
-
2.16%
ExlService
Holdings
Inc
(d)
16,600
2,403
KnowBe4
Inc
(d)
74,979
1,720
Sterling
Check
Corp
(d),(e)
35,667
732
$
4,855
Consumer
Products
-
0.53%
Central
Garden
&
Pet
Co
-
A
Shares
(d)
24,720
1,183
Cosmetics
&
Personal
Care
-
1.26%
Beauty
Health
Co/The
(d)
82,100
1,983
Honest
Co
Inc/The
(d)
105,300
852
$
2,835
Distribution
&
Wholesale
-
2.23%
Core
&
Main
Inc
(d)
46,711
1,417
ThredUp
Inc
(d),(e)
36,457
465
Titan
Machinery
Inc
(d)
28,000
943
WESCO
International
Inc
(d)
16,600
2,185
$
5,010
Diversified
Financial
Services
-
5.99%
Encore
Capital
Group
Inc
(d)
38,800
2,410
Flywire
Corp
(d)
26,500
1,009
Focus
Financial
Partners
Inc
(d)
43,100
2,574
Janus
Henderson
Group
PLC
36,500
1,531
Lazard
Ltd
16,500
720
Moelis
&
Co
10,100
631
Piper
Sandler
Cos
14,270
2,547
Stifel
Financial
Corp
28,600
2,014
$
13,436
Electric
-
1.87%
Brookfield
Renewable
Corp
45,800
1,687
Portland
General
Electric
Co
47,200
2,498
$
4,185
Electrical
Components
&
Equipment
-
0.94%
EnerSys
22,000
1,739
nLight
Inc
(d)
15,890
381
$
2,120
Electronics
-
3.66%
Advanced
Energy
Industries
Inc
20,100
1,830
Atkore
Inc
(d)
21,500
2,391
Mirion
Technologies
Inc
(d),(e)
75,800
794
Mirion
Technologies
Inc
-
Warrants
(d)
45,150
113
TD
SYNNEX
Corp
13,600
1,555
Vishay
Intertechnology
Inc
69,600
1,522
$
8,205
Energy
-
Alternate
Sources
-
0.29%
Array
Technologies
Inc
(d)
40,800
640
Engineering
&
Construction
-
2.19%
Dycom
Industries
Inc
(d)
27,800
2,607
MYR
Group
Inc
(d)
14,000
1,548
Tutor
Perini
Corp
(d)
61,386
759
$
4,914
Entertainment
-
2.88%
Caesars
Entertainment
Inc
(d)
24,700
2,310
Golden
Entertainment
Inc
(d)
44,500
2,249
Vail
Resorts
Inc
5,800
1,902
$
6,461
Food
-
0.79%
Performance
Food
Group
Co
(d)
38,618
1,772
Gas
-
0.75%
Southwest
Gas
Holdings
Inc
24,100
1,688
Hand
&
Machine
Tools
-
1.11%
Regal
Rexnord
Corp
14,587
2,482
Schedule
of
Investments
SmallCap
Account
December
31,
2021
See
accompanying
notes.
227
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Healthcare
-
Products
-
2.86%
Adaptive
Biotechnologies
Corp
(d)
21,800
$
612
Castle
Biosciences
Inc
(d)
16,500
707
Natera
Inc
(d)
29,100
2,717
Nevro
Corp
(d)
17,600
1,427
STAAR
Surgical
Co
(d)
10,500
959
$
6,422
Healthcare
-
Services
-
3
.78%
Accolade
Inc
(d)
15,000
395
Addus
HomeCare
Corp
(d)
19,300
1,805
Amedisys
Inc
(d)
7,800
1,262
Aveanna
Healthcare
Holdings
Inc
(d)
93,900
695
LifeStance
Health
Group
Inc
(d),(e)
91,400
870
Syneos
Health
Inc
(d)
28,300
2,906
Teladoc
Health
Inc
(d)
5,900
542
$
8,475
Holding
Companies
-
Diversified
-
0.01%
Cazoo
Group
Ltd
-
Warrants
(d)
21,550
19
Home
Builders
-
1.45%
Taylor
Morrison
Home
Corp
(d)
92,900
3,248
Home
Furnishings
-
0.24%
Purple
Innovation
Inc
(d)
40,434
537
Insurance
-
1.67%
CNO
Financial
Group
Inc
53,100
1,266
Hanover
Insurance
Group
Inc/The
16,100
2,110
Reinsurance
Group
of
America
Inc
3,300
361
$
3,737
Internet
-
1.58%
Eventbrite
Inc
(d)
80,200
1,399
Lulu's
Fashion
Lounge
Holdings
Inc
(d)
63,500
650
Revolve
Group
Inc
(d)
26,900
1,507
$
3,556
Iron
&
Steel
-
0.96%
Cleveland-Cliffs
Inc
(d)
98,500
2,144
Leisure
Products
&
Services
-
1.22%
Life
Time
Group
Holdings
Inc
(d),(e)
122,000
2,100
Lindblad
Expeditions
Holdings
Inc
(d)
41,000
639
$
2,739
Machinery
-
Diversified
-
0.68%
Zurn
Water
Solutions
Corp
42,200
1,536
Media
-
0.46%
World
Wrestling
Entertainment
Inc
21,000
1,036
Metal
Fabrication
&
Hardware
-
0.21%
Xometry
Inc
(d),(e)
9,327
478
Mining
-
0.93%
Alcoa
Corp
27,420
1,634
Piedmont
Lithium
Inc
(d),(e)
8,600
451
$
2,085
Miscellaneous
Manufacturers
-
0.67%
Hillenbrand
Inc
29,000
1,508
Office
Furnishings
-
0.39%
HNI
Corp
21,000
883
Oil
&
Gas
-
1.65%
PDC
Energy
Inc
42,655
2,081
Pioneer
Natural
Resources
Co
8,953
1,628
$
3,709
Oil
&
Gas
Services
-
1.10%
Bristow
Group
Inc
(d)
20,494
649
ChampionX
Corp
(d)
90,100
1,821
$
2,470
Packaging
&
Containers
-
0.46%
Graphic
Packaging
Holding
Co
52,500
1,024
Pharmaceuticals
-
1.16%
Collegium
Pharmaceutical
Inc
(d)
47,400
886
Dexcom
Inc
(d)
2,000
1,074
PMV
Pharmaceuticals
Inc
(d)
28,200
651
$
2,611
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
REITs
-
6.56%
Agree
Realty
Corp
38,800
$
2,769
Cousins
Properties
Inc
63,401
2,554
First
Industrial
Realty
Trust
Inc
46,900
3,105
Ladder
Capital
Corp
79,000
947
Pebblebrook
Hotel
Trust
104,420
2,336
Rexford
Industrial
Realty
Inc
37,200
3,017
$
14,728
Retail
-
5.56%
BJ's
Wholesale
Club
Holdings
Inc
(d)
29,000
1,942
Bloomin'
Brands
Inc
(d)
51,500
1,080
Brinker
International
Inc
(d)
10,600
388
Caleres
Inc
97,300
2,207
Cazoo
Group
Ltd
(d),(e)
55,600
335
Petco
Health
&
Wellness
Co
Inc
(d)
52,150
1,032
Portillo's
Inc
(d),(e)
37,000
1,389
Rush
Enterprises
Inc
-
Class
A
30,600
1,703
Sally
Beauty
Holdings
Inc
(d)
76,200
1,407
Vroom
Inc
(d)
39,600
427
World
Fuel
Services
Corp
21,300
564
$
12,474
Savings
&
Loans
-
1.85%
Provident
Financial
Services
Inc
48,300
1,170
Sterling
Bancorp/DE
116,000
2,991
$
4,161
Semiconductors
-
3.49%
Allegro
MicroSystems
Inc
(d)
76,800
2,779
Entegris
Inc
17,000
2,356
SiTime
Corp
(d)
9,200
2,691
$
7,826
Software
-
8.32%
Aspen
Technology
Inc
(d)
8,200
1,248
AvidXchange
Holdings
Inc
(d)
20,900
315
Bentley
Systems
Inc
9,900
478
BigCommerce
Holdings
Inc
(d)
8,800
311
Clear
Secure
Inc
(d)
12,858
403
Concentrix
Corp
13,800
2,465
DigitalOcean
Holdings
Inc
(d)
27,900
2,241
DoubleVerify
Holdings
Inc
(d)
17,356
578
Doximity
Inc
(d)
12,200
612
Duck
Creek
Technologies
Inc
(d)
7,200
217
Enfusion
Inc
(d)
25,100
526
Freshworks
Inc
(d),(e)
12,300
323
Jamf
Holding
Corp
(d)
22,200
844
Manhattan
Associates
Inc
(d)
15,900
2,472
Paymentus
Holdings
Inc
(d),(e)
29,100
1,018
Privia
Health
Group
Inc
(d)
46,100
1,193
SentinelOne
Inc
(d),(e)
10,700
540
Signify
Health
Inc
(d)
27,100
385
Sophia
Genetics
SA
(d),(e)
25,101
354
Sprout
Social
Inc
(d)
23,700
2,149
$
18,672
Telecommunications
-
0.24%
Switch
Inc
18,600
533
Transportation
-
1.25%
Atlas
Air
Worldwide
Holdings
Inc
(d)
11,975
1,127
Hub
Group
Inc
(d)
19,900
1,676
$
2,803
TOTAL
COMMON
STOCKS
$
220,036
Total
Investments
$
231,653
Other
Assets
and
Liabilities
- (3.24)%
(7,266)
TOTAL
NET
ASSETS
-
100.00%
$
224,387
Schedule
of
Investments
SmallCap
Account
December
31,
2021
See
accompanying
notes.
228
(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
$7,640
or
3.40%
of
net
assets.
(c)
Affiliated
Security.
Security
is
either
an
affiliate
(and
registered
under
the
Investment
Company
Act
of
1940,
as
amended,
(the
"1940
Act"))
or
an
affiliate
as
defined
by
the
1940
act
(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,
the
value
of
these
securities
totaled
$7,397
or
3.30%
of
net
assets.
Portfolio
Summary (unaudited)
Sector
Percent
Financial
22.09%
Consumer,
Non-cyclical
21.11%
Consumer,
Cyclical
15.48%
Technology
13.97%
Industrial
13.65%
Money
Market
Funds
5.18%
Basic
Materials
3.81%
Energy
3.04
%
Utilities
2.62%
Communications
2.28%
Diversified
0.01%
Other
Assets
and
Liabilities
(3.24)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2020
Purchases
Sales
December
31,
2021
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
-
Institutional
Class
0.00%
$
1,177
$
174,814
$
167,993
$
7,998
$
1,177
$
174,814
$
167,993
$
7,998
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%
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Glossary
to
the
Schedule
of
Investments
December
31,
2021
See
accompanying
notes.
229
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
2021
$
10.34
(
$
0.08)
$
2.64
$
2.56
$
–
(
$
0
.09)
(
$
0.09)
$
12.81
2020(d)
10.00
–
0.34
0.34
–
–
–
10.34
BOND
MARKET
INDEX
ACCOUNT
Class
1
shares
2021
11.21
0.17
(
0.37)
(
0.20)
(
0.22)
(
0.03)
(
0.25)
10.76
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
CORE
PLUS
BOND
ACCOUNT
Class
1
shares
2021
12.15
0.25
(
0.30)
(
0.05)
(
0.32)
(
0.30)
(
0.62)
11.48
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
DIVERSIFIED
BALANCED
ACCOUNT
Class
1
shares
2021
17.58
0.36
1.55
1.91
(
0.40)
(
0.98)
(
1.38)
18.11
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
2021
17.61
0.31
1.57
1.88
(
0.36)
(
0.98)
(
1.34)
18.15
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
Class
3
shares
2021
17.58
0.68
1.16
1.84
(
0.40)
(
0.98)
(
1.38)
18.04
2020(d)
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
24.72
%
$
13,515
1.05
%
(c)
–
%
(0.63)
%
12.5
%
3.40
(e)
5,170
1.05
(c),(f)
–
(0.66)
(f)
54.6
(f)
(1.83)
2,900,608
0.14
–
1.58
130.5
7.29
2,735,259
0.14
–
2.04
104.0
8.47
2,539,460
0.15
(c)
–
2.60
93.6
(0.19
)
2,213,355
0.15
(c)
–
2.52
123.1
3.27
2,448,068
0.23
(c)
–
2.10
108.9
(0.45)
236,382
0.47
–
2.12
150.8
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
11.06
41,982
0.05
–
2.00
14.3
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
(e)
42,702
0.05
(f)
–
4.27
(f)
13.9
10.83
962,935
0.30
–
1.72
14.3
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
10.65
327
0.45
–
3.79
14.3
1.50
(e)
10
0.45
(f)
–
4.31
(f)
23.6
(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
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
2021
$
13.65
$
0.32
$
1.03
$
1.35
(
$
0.25)
(
$
0.32)
(
$
0.57)
$
14.43
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
Class
3
shares
2021
13.65
0.31
1.02
1.33
(
0.28)
(
0.32)
(
0.60)
14.38
2020(d)
13.46
0.04
0.15
0.19
–
–
–
13.65
DIVERSIFIED
BALANCED
VOLATILITY
CONTROL
ACCOUNT
Class
2
shares
2021
12.40
0.22
1.02
1.24
(
0.17)
(
0.20)
(
0.37)
13.27
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
2021
12.40
0.19
1.03
1.22
(
0.19)
(
0.20)
(
0.39)
13.23
2020(d)
12.22
0.04
0.14
0.18
–
–
–
12.40
DIVERSIFIED
GROWTH
ACCOUNT
Class
2
shares
2021
20.15
0.37
2.56
2.93
(
0.38)
(
1.02)
(
1.40)
21.68
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
Class
3
shares
2021
20.15
0.42
2.48
2.90
(
0.43)
(
1.02)
(
1.45)
21.60
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
9.94
%
$
184,060
0.31
%
(c)
–
%
2.24
%
18.7
%
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
9.81
11
0.46
–
2.17
18.7
1.41
(e)
10
0.46
(f)
–
4.31
(f)
25.0
10.08
229,787
0.38
–
1.67
47.6
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)
9.94
11
0.53
–
1.48
47.6
1.47
(e)
10
0.53
(f)
–
5.62
(f)
83.5
14.79
3,974,179
0.30
–
1.74
14.7
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
14.63
277
0.45
–
2.00
14.7
1.77
(e)
10
0.45
(f)
–
5.91
(f)
23.0
(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)
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
2021
$
14.33
$
0.36
$
1
.58
$
1.94
(
$
0.24)
(
$
0.37)
(
$
0.61)
$
15.66
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
Class
3
shares
2021
14.33
0.35
1.56
1.91
(
0.28)
(
0.37)
(
0.65)
15
.59
2020(d)
14.09
0.05
0.19
0.24
–
–
–
14.33
DIVERSIFIED
GROWTH
VOLATILITY
CONTROL
ACCOUNT
Class
2
shares
2021
12.68
0.23
1.52
1.75
(
0.16)
(
0.20)
(
0.36)
14.07
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
2021
12.68
0.20
1.53
1.73
(
0.18)
(
0.20)
(
0.38)
14.03
2020(d)
12.47
0.05
0.16
0.21
–
–
–
12.68
DIVERSIFIED
INCOME
ACCOUNT
Class
2
shares
2021
14.82
0.26
0.77
1.03
(
0.29)
(
0.35)
(
0.64)
15.21
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
Class
3
shares
2021
14.82
0.58
0
.42
1.00
(
0.32)
(
0.35)
(
0.67)
15.15
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
13.70
%
$
388,912
0.30
%
–
%
2.39
%
17.4
%
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
13.44
12
0.45
–
2.31
17.4
1.70
(e)
10
0.45
(f)
–
5.91
(f)
22.3
13.89
1,277,128
0.37
–
1.69
57.4
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)
13.74
12
0.52
–
1.46
57.4
1.68
(e)
10
0.52
(f)
–
7.20
(f)
85.9
6.96
325,983
0.30
(h)
0.30
(i)
1.75
24.8
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
6.78
781
0.45
–
3.83
24.8
1.16
(e)
10
0.45
(f)
–
2.69
(f)
31.2
(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
2021
$
17.77
$
0.28
$
1.46
$
1.74
(
$
0.25)
(
$
0.09)
(
$
0.34)
$
19.17
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
EQUITY
INCOME
ACCOUNT
Class
1
shares
2021
28.54
0.55
5.82
6.37
(
0.64)
(
0.02)
(
0.66)
34.25
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
Class
2
shares
2021
28.26
0.47
5.75
6.22
(
0.59)
(
0.02)
(
0.61)
33.87
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
Class
3
shares
2021
28.53
0.47
5.76
6.23
(
0.64)
(
0.02)
(
0.66)
34.10
2020(c)
27.94
0.03
0.56
0.59
–
–
–
28.53
GOVERNMENT
&
HIGH
QUALITY
BOND
ACCOUNT
Class
1
shares
2021
9.83
0.04
(
0.17)
(
0.13)
(
0.22)
–
(
0.22)
9.48
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
INTERNATIONAL
EMERGING
MARKETS
ACCOUNT
Class
1
shares
2021
19.94
0.21
(
0.08)
0.13
(
0.09)
(
0.31)
(
0.40)
19.67
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
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
9.75
%
$
299,426
0.90
%
1.49
%
36.6
%
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
22.47
701,625
0.47
1.73
9.6
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
22.15
53,723
0.72
1.48
9.6
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
21.97
148
0.87
1.43
9.6
2.11
(d)
10
0.88
(e)
1.88
(e)
21.0
(1.32)
197,777
0.50
0.40
360.7
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
0.58
90,815
1.18
(f)
1.01
35.7
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
(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.
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
2021
$
48
.46
(
$
0
.14
)
$
10
.65
$
10
.51
$
–
(
$
6
.49
)
(
$
6
.49
)
$
52
.48
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
LARGECAP
S&P
500
INDEX
ACCOUNT
Class
1
shares
2021
21
.94
0
.27
5
.77
6
.04
(
0
.35
)
(
2
.10
)
(
2
.45
)
25
.53
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
Class
2
shares
2021
21
.65
0
.21
5
.69
5
.90
(
0
.32
)
(
2
.10
)
(
2
.42
)
25
.13
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
LARGECAP
S&P
500
MANAGED
VOLATILITY
INDEX
ACCOUNT
Class
1
shares
2021
16
.90
0
.15
4
.02
4
.17
(
0
.23
)
(
1
.98
)
(
2
.21
)
18
.86
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
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
21
.89
%
$
706,656
0
.66
%
(c)
(
0
.26
)
%
22
.1
%
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
28
.33
3,162,615
0
.25
1
.11
2
.6
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
28
.05
46,634
0
.50
0
.86
2
.6
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
25
.55
239,895
0
.46
0
.84
2
.6
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
(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
2021
$
63
.69
$
–
$
15
.93
$
15
.93
(
$
0
.09
)
(
$
4
.77
)
(
$
4
.86
)
$
74
.76
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
Class
2
shares
2021
63
.08
(
0
.18
)
15
.76
15
.58
–
(
4
.77
)
(
4
.77
)
73
.89
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
PRINCIPAL
CAPITAL
APPRECIATION
ACCOUNT
Class
1
shares
2021
34
.30
0
.28
9
.13
9
.41
(
0
.33
)
(
1
.51
)
(
1
.84
)
41
.87
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
Class
2
shares
2021
33
.81
0
.18
8
.99
9
.17
(
0
.28
)
(
1
.51
)
(
1
.79
)
41
.19
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
PRINCIPAL
LIFETIME
2010
ACCOUNT
Class
1
shares
2021
13
.59
0
.38
0
.43
0
.81
(
0
.24
)
(
0
.75
)
(
0
.99
)
13
.41
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
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
25
.53
%
$
711,126
0
.53
%
(
0
.01
)
%
17
.1
%
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
25
.20
38,773
0
.78
(
0
.26
)
17
.1
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
27
.82
163,159
0
.63
0
.73
30
.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
27
.50
31,088
0
.88
0
.47
30
.6
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
5
.94
37,297
0
.02
2
.79
26
.4
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
(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
2021
$
14
.99
$
0
.42
$
0
.94
$
1
.36
(
$
0
.26
)
(
$
0
.90
)
(
$
1
.16
)
$
15
.19
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
PRINCIPAL
LIFETIME
2030
ACCOUNT
Class
1
shares
2021
14
.51
0
.43
1
.41
1
.84
(
0
.21
)
(
0
.54
)
(
0
.75
)
15
.60
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
PRINCIPAL
LIFETIME
2040
ACCOUNT
Class
1
shares
2021
18
.09
0
.62
2
.13
2
.75
(
0
.25
)
(
0
.65
)
(
0
.90
)
19
.94
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
PRINCIPAL
LIFETIME
2050
ACCOUNT
Class
1
shares
2021
17
.47
0
.64
2
.32
2
.96
(
0
.22
)
(
0
.61
)
(
0
.83
)
19
.60
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
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
9
.17
%
$
196,334
0
.00
%
2
.72
%
23
.3
%
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
12
.79
262,864
0
.00
2
.78
26
.8
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
15
.29
134,172
0
.01
3
.18
19
.9
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
17
.02
68,527
0
.01
3
.37
28
.1
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
(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
2021
$
16
.49
$
0
.61
$
2
.33
$
2
.94
(
$
0
.18
)
(
$
0
.44
)
(
$
0
.62
)
$
18
.81
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
PRINCIPAL
LIFETIME
STRATEGIC
INCOME
ACCOUNT
Class
1
shares
2021
12
.84
0
.37
0
.21
0
.58
(
0
.25
)
(
0
.55
)
(
0
.80
)
12
.62
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
REAL
ESTATE
SECURITIES
ACCOUNT
Class
1
shares
2021
19
.11
0
.28
7
.26
7
.54
(
0
.33
)
(
1
.50
)
(
1
.83
)
24
.82
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
Class
2
shares
2021
19
.16
0
.23
7
.26
7
.49
(
0
.29
)
(
1
.50
)
(
1
.79
)
24
.86
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
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
17
.96
%
$
17,280
0
.03
%
(c)
3
.38
%
25
.3
%
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
4
.53
30,129
0
.02
2
.85
35
.6
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
40
.44
174,922
0
.82
1
.25
23
.1
(
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
40
.04
11,650
1
.07
1
.02
23
.1
(
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
(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
2021
$
16
.51
$
0
.35
$
1
.91
$
2
.26
(
$
0
.28
)
(
$
0
.38
)
(
$
0
.66
)
$
18
.11
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
Class
2
shares
2021
16
.29
0
.32
1
.85
2
.17
(
0
.24
)
(
0
.38
)
(
0
.62
)
17
.84
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
SAM
CONSERVATIVE
BALANCED
PORTFOLIO
Class
1
shares
2021
12
.80
0
.29
0
.95
1
.24
(
0
.25
)
(
0
.18
)
(
0
.43
)
13
.61
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
Class
2
shares
2021
12
.61
0
.26
0
.93
1
.19
(
0
.22
)
(
0
.18
)
(
0
.40
)
13
.40
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
SAM
CONSERVATIVE
GROWTH
PORTFOLIO
Class
1
shares
2021
21
.75
0
.44
3
.40
3
.84
(
0
.29
)
(
0
.48
)
(
0
.77
)
24
.82
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
Class
2
shares
2021
21
.40
0
.39
3
.32
3
.71
(
0
.24
)
(
0
.48
)
(
0
.72
)
24
.39
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
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
13
.74
%
$
588,703
0
.23
%
2
.00
%
38
.9
%
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
13
.39
156,241
0
.48
1
.83
38
.9
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
9
.71
169,338
0
.23
2
.13
41
.2
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
9
.48
34,318
0
.48
1
.95
41
.2
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
17
.75
242,713
0
.23
1
.85
43
.6
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
17
.44
192,114
0
.48
1
.67
43
.6
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
(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
2021
$
12
.81
$
0
.32
$
0
.55
$
0
.87
(
$
0
.31
)
(
$
0
.20
)
(
$
0
.51
)
$
13
.17
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
Class
2
shares
2021
12
.66
0
.30
0
.53
0
.83
(
0
.29
)
(
0
.20
)
(
0
.49
)
13
.00
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
SAM
STRATEGIC
GROWTH
PORTFOLIO
Class
1
shares
2021
24
.17
0
.53
4
.24
4
.77
(
0
.26
)
(
0
.59
)
(
0
.85
)
28
.09
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
Class
2
shares
2021
23
.80
0
.46
4
.16
4
.62
(
0
.21
)
(
0
.59
)
(
0
.80
)
27
.62
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
SHORT-TERM
INCOME
ACCOUNT
Class
1
shares
2021
2
.60
0
.03
(
0
.05
)
(
0
.02
)
(
0
.04
)
(
0
.01
)
(
0
.05
)
2
.53
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
SMALLCAP
ACCOUNT
Class
1
shares
2021
17
.26
(
0
.01
)
3
.48
3
.47
(
0
.06
)
(
0
.62
)
(
0
.68
)
20
.05
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
Class
2
shares
2021
17
.17
(
0
.06
)
3
.47
3
.41
(
0
.03
)
(
0
.62
)
(
0
.65
)
19
.93
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
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
6
.89
%
$
148,266
0
.23
%
2
.41
%
44
.0
%
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
6
.61
45,586
0
.48
2
.31
44
.0
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
19
.86
223,578
0
.23
1
.97
35
.9
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
19
.54
205,369
0
.48
1
.76
35
.9
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
(
0
.72
)
140,532
0
.47
1
.09
56
.7
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
20
.12
213,890
0
.82
(
0
.04
)
36
.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
19
.86
10,497
1
.07
(
0
.29
)
36
.6
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
(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
“Funds”),
including
the
schedules
of
investments,
as
of
December
31,
2021,
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
Funds
comprising
the
Fund
at
December
31,
2021,
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,
2021
For
each
of
the
two
years
in
the
period
ended
December
31,
2021
For
each
of
the
five
years
in
the
period
ended
December
31,
2021
Diversified
Balanced
Volatility
Control
Account
Diversified
Growth
Volatility
Control
Account
For
the
year
ended
December
31,
2021
For
each
of
the
two
years
in
the
period
ended
December
31,
2021
For
each
of
the
three
years
ended
December
31,
2021
and
the
period
from
March
30,
2017,
date
operations
commenced,
through
December
31,
2017
Blue
Chip
Account
For
the
year
ended
December
31,
2021
For
the
year
ended
December
31,
2021
and
the
period
from
December
9,
2020,
date
operations
commenced,
through
December
31,
2020
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
Funds’
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,
2021,
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
21,
2022
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
(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
Funds
bear
directly,
each
of
the
Funds
may
indirectly
bear
its
pro
rata
share
of
the
expenses
incurred
by
the
investment
companies
in
which
the
Funds
invest.
These
expenses
are
not
included
in
the
fund’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,
2021
to
December
31,
2021
),
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
fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
fund’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,
2021
Ending
Account
Value
December
31,
2021
Expenses
Paid
During
Period
July
1,
2021
to
December
31,
2021
(a)
Annualized
Expense
Ratio
Blue
Chip
Account
Class
3
Actual
$
1,000.00
$
1,069.33
$
5.48
1.05
%
Hypothetical
1,000.00
1,019.91
5.35
1.05
Bond
Market
Index
Account
Class
1
Actual
1,000.00
998.60
0.71
0.14
Hypothetical
1,000.00
1,024.50
0.71
0.14
Core
Plus
Bond
Account
Class
1
Actual
1,000.00
1,002.10
2.42
0.48
Hypothetical
1,000.00
1,022.79
2.45
0.48
Diversified
Balanced
Account
Class
1
Actual
1,000.00
1,043.54
0.26
0.05
Hypothetical
1,000.00
1,024.95
0.26
0.05
Diversified
Balanced
Account
Class
2
Actual
1,000.00
1,042.62
1.54
0.30
Hypothetical
1,000.00
1,023.69
1.53
0.30
Diversified
Balanced
Account
Class
3
Actual
1,000.00
1,041.92
2.32
0.45
Hypothetical
1,000.00
1,022.94
2.29
0.45
Diversified
Balanced
Managed
Volatility
Account
Class
2
Actual
1,000.00
1,038.57
1.54
0.30
Hypothetical
1,000.00
1,023.69
1.53
0.30
Diversified
Balanced
Managed
Volatility
Account
Class
3
Actual
1,000.00
1,038.00
2.31
0.45
Hypothetical
1,000.00
1,022.94
2.29
0.45
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
(unaudited)
253
Beginning
Account
Value
July
1,
2021
Ending
Account
Value
December
31,
2021
Expenses
Paid
During
Period
July
1,
2021
to
December
31,
2021
(a)
Annualized
Expense
Ratio
Diversified
Balanced
Volatility
Control
Account
Class
2
Actual
$
1,000.00
$
1,041.22
$
1.96
0.38
%
Hypothetical
1,000.00
1,023.29
1.94
0.38
Diversified
Balanced
Volatility
Control
Account
Class
3
Actual
1,000.00
1,039.82
2.72
0.53
Hypothetical
1,000.00
1,022.53
2.70
0.53
Diversified
Growth
Account
Class
2
Actual
1,000.00
1,055.23
1.55
0.30
Hypothetical
1,000.00
1,023.69
1.53
0.30
Diversified
Growth
Account
Class
3
Actual
1,000.00
1,054.67
2.33
0.45
Hypothetical
1,000.00
1,022.94
2.29
0.45
Diversified
Growth
Managed
Volatility
Account
Class
2
Actual
1,000.00
1,050.52
1.55
0.30
Hypothetical
1,000.00
1,023.69
1.53
0.30
Diversified
Growth
Managed
Volatility
Account
Class
3
Actual
1,000.00
1,049.41
2.32
0.45
Hypothetical
1,000.00
1,022.94
2.29
0.45
Diversified
Growth
Volatility
Control
Account
Class
2
Actual
1,000.00
1,054.06
1.92
0.37
Hypothetical
1,000.00
1,023.34
1.89
0.37
Diversified
Growth
Volatility
Control
Account
Class
3
Actual
1,000.00
1,052.74
2.69
0.52
Hypothetical
1,000.00
1,022.58
2.65
0.52
Diversified
Income
Account
Class
2
Actual
1,000.00
1,029.30
1.53
0.30
Hypothetical
1,000.00
1,023.69
1.53
0.30
Diversified
Income
Account
Class
3
Actual
1,000.00
1,028.24
2.30
0.45
Hypothetical
1,000.00
1,022.94
2.29
0.45
Diversified
International
Account
Class
1
Actual
1,000.00
1,014.72
4.57
0.90
Hypothetical
1,000.00
1,020.67
4.58
0.90
Equity
Income
Account
Class
1
Actual
1,000.00
1,077.09
2.46
0.47
Hypothetical
1,000.00
1,022.84
2.40
0.47
Equity
Income
Account
Class
2
Actual
1,000.00
1,075.68
3.77
0.72
Hypothetical
1,000.00
1,021.58
3.67
0.72
Equity
Income
Account
Class
3
Actual
1,000.00
1,075.02
4.55
0.87
Hypothetical
1,000.00
1,020.82
4.43
0.87
Government
&
High
Quality
Bond
Account
Class
1
Actual
1,000.00
991.82
2.51
0.50
Hypothetical
1,000.00
1,022.68
2.55
0.50
International
Emerging
Markets
Account
Class
1
Actual
1,000.00
910.38
5.63
1.17
Hypothetical
1,000.00
1,019.31
5.96
1.17
LargeCap
Growth
Account
I
Class
1
Actual
1,000.00
1,064.90
3.44
0.66
Hypothetical
1,000.00
1,021.88
3.36
0.66
LargeCap
S&P
500
Index
Account
Class
1
Actual
1,000.00
1,115.10
1.33
0.25
Hypothetical
1,000.00
1,023.95
1.28
0.25
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
(unaudited)
254
Beginning
Account
Value
July
1,
2021
Ending
Account
Value
December
31,
2021
Expenses
Paid
During
Period
July
1,
2021
to
December
31,
2021
(a)
Annualized
Expense
Ratio
LargeCap
S&P
500
Index
Account
Class
2
Actual
$
1,000.00
$
1,113.77
$
2.66
0.50
%
Hypothetical
1,000.00
1,022.68
2.55
0.50
LargeCap
S&P
500
Managed
Volatility
Index
Account
Class
1
Actual
1,000.00
1,103.94
2.44
0.46
Hypothetical
1,000.00
1,022.89
2.35
0.46
MidCap
Account
Class
1
Actual
1,000.00
1,108.84
2.76
0.52
Hypothetical
1,000.00
1,022.58
2.65
0.52
MidCap
Account
Class
2
Actual
1,000.00
1,107.46
4.09
0.77
Hypothetical
1,000.00
1,021.32
3.92
0.77
Principal
Capital
Appreciation
Account
Class
1
Actual
1,000.00
1,119.29
3.37
0.63
Hypothetical
1,000.00
1,022.03
3.21
0.63
Principal
Capital
Appreciation
Account
Class
2
Actual
1,000.00
1,117.62
4.70
0.88
Hypothetical
1,000.00
1,020.77
4.48
0.88
Principal
LifeTime
2010
Account
Class
1
Actual
1,000.00
1,018.16
0.05
0.01
Hypothetical
1,000.00
1,025.16
0.05
0.01
Principal
LifeTime
2020
Account
Class
1
Actual
1,000.00
1,026.66
0.00
0.00
Hypothetical
1,000.00
1,025.21
0.00
0.00
Principal
LifeTime
2030
Account
Class
1
Actual
1,000.00
1,036.51
0.00
0.00
Hypothetical
1,000.00
1,025.21
0.00
0.00
Principal
LifeTime
2040
Account
Class
1
Actual
1,000.00
1,041.79
0.05
0.01
Hypothetical
1,000.00
1,025.16
0.05
0.01
Principal
LifeTime
2050
Account
Class
1
Actual
1,000.00
1,045.72
0.05
0.01
Hypothetical
1,000.00
1,025.16
0.05
0.01
Principal
LifeTime
2060
Account
Class
1
Actual
1,000.00
1,048.05
0.15
0.03
Hypothetical
1,000.00
1,025.05
0.15
0.03
Principal
LifeTime
Strategic
Income
Account
Class
1
Actual
1,000.00
1,014.53
0.05
0.01
Hypothetical
1,000.00
1,025.16
0.05
0.01
Real
Estate
Securities
Account
Class
1
Actual
1,000.00
1,167.39
4.43
0.81
Hypothetical
1,000.00
1,021.12
4.13
0.81
Real
Estate
Securities
Account
Class
2
Actual
1,000.00
1,166.11
5.79
1.06
Hypothetical
1,000.00
1,019.86
5.40
1.06
SAM
Balanced
Portfolio
Class
1
Actual
1,000.00
1,036.35
1.18
0.23
Hypothetical
1,000.00
1,024.05
1.17
0.23
SAM
Balanced
Portfolio
Class
2
Actual
1,000.00
1,034.80
2.46
0.48
Hypothetical
1,000.00
1,022.79
2.45
0.48
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
(unaudited)
255
Beginning
Account
Value
July
1,
2021
Ending
Account
Value
December
31,
2021
Expenses
Paid
During
Period
July
1,
2021
to
December
31,
2021
(a)
Annualized
Expense
Ratio
SAM
Conservative
Balanced
Portfolio
Class
1
Actual
$
1,000.00
$
1,025.03
$
1.17
0.23
%
Hypothetical
1,000.00
1,024.05
1.17
0.23
SAM
Conservative
Balanced
Portfolio
Class
2
Actual
1,000.00
1,024.11
2.45
0.48
Hypothetical
1,000.00
1,022.79
2.45
0.48
SAM
Conservative
Growth
Portfolio
Class
1
Actual
1,000.00
1,047.02
1.19
0.23
Hypothetical
1,000.00
1,024.05
1.17
0.23
SAM
Conservative
Growth
Portfolio
Class
2
Actual
1,000.00
1,045.90
2.48
0.48
Hypothetical
1,000.00
1,022.79
2.45
0.48
SAM
Flexible
Income
Portfolio
Class
1
Actual
1,000.00
1,021.04
1.17
0.23
Hypothetical
1,000.00
1,024.05
1.17
0.23
SAM
Flexible
Income
Portfolio
Class
2
Actual
1,000.00
1,019.44
2.44
0.48
Hypothetical
1,000.00
1,022.79
2.45
0.48
SAM
Strategic
Growth
Portfolio
Class
1
Actual
1,000.00
1,050.80
1.19
0.23
Hypothetical
1,000.00
1,024.05
1.17
0.23
SAM
Strategic
Growth
Portfolio
Class
2
Actual
1,000.00
1,049.41
2.48
0.48
Hypothetical
1,000.00
1,022.79
2.45
0.48
Short-Term
Income
Account
Class
1
Actual
1,000.00
992.84
2.36
0.47
Hypothetical
1,000.00
1,022.84
2.40
0.47
SmallCap
Account
Class
1
Actual
1,000.00
1,001.12
4.14
0.82
Hypothetical
1,000.00
1,021.07
4.18
0.82
SmallCap
Account
Class
2
Actual
1,000.00
999.51
5.39
1.07
Hypothetical
1,000.00
1,019.81
5.45
1.07
(a)
Expenses
are
equal
to
a
fund's
annualized
expense
ratio
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
184/365
(to
reflect
the
one-half
year
period).
256
FUND
BOARD
OF
DIRECTORS
AND
OFFICERS
The
Board
of
Directors
(the
“Board”)
has
overall
responsibility
for
overseeing
the
Fund’s
operations
in
accordance
with
the
Investment
Act
of
1940,
as
amended
(the
“1940
Act”),
other
applicable
laws,
and
the
Fund’s
charter.
Each
member
of
the
Board
(“Board
Member”)
serves
on
the
Board
of
the
following
investment
companies
sponsored
by
Principal
Life
Insurance
Company:
Principal
Funds,
Inc.,
Principal
Variable
Contracts
Funds,
Inc.,
Principal
Exchange-Traded
Funds,
and
Principal
Diversified
Select
Real
Asset
Fund
which
are
collectively
referred
to
as
the
“Fund
Complex”.
Board
Members
that
are
affiliated
persons
of
any
investment
advisor,
the
principal
distributor,
or
the
principal
underwriter
of
the
Fund
Complex
are
considered
“interested
persons”
of
the
Fund
(as
defined
in
the
1940
Act)
and
are
shown
below
as
“Interested
Board
Members”.
Board
Members
who
are
not
Interested
Board
Members
are
shown
below
as
“Independent
Board
Members”.
Each
Board
Member
generally
serves
until
the
next
annual
meeting
of
stockholders
or
until
such
Board
Member’s
earlier
death,
resignation,
or
removal.
Independent
Board
Members
have
a
72-year
age
limit
and,
for
Independent
Board
Members
elected
on
or
after
September
14,
2021,
a
72-year
age
limit
or
a
15-year
term
limit,
whichever
occurs
first.
The
Board
may
waive
the
age
or
term
limits
in
the
Board’s
discretion.
Officers
serve
at
the
pleasure
of
the
Board,
and
each
officer
has
the
same
position
with
each
investment
company
in
the
Fund
Complex.
INDEPENDENT
BOARD
MEMBERS
Name,
Position
Held
with
the
Fund
Complex,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
Other
Directorships
Held
by
Board
Member
During
Past
5
Years
Leroy
T.
Barnes,
Jr.
Board
Member
since
2012
Member,
Audit
Committee
1951
Retired
125
McClatchy
Newspapers,
Inc.;
Frontier
Communications,
Inc.;
formerly,
Herbalife
Ltd.
Craig
Damos
Lead
Independent
Board
Member
since
2020
Board
Member
since
2008
Member,
Nominating
and
Governance
Committee
Member,
Executive
Committee
1954
President,
C.P.
Damos
Consulting
LLC
125
None
Fritz
S.
Hirsch
Board
Member
since
2005
Member,
Nominating
and
Governance
Committee
Chair,
15(c)
Committee
1951
Interim
CEO,
MAM
USA:
February
2020
to
October
2020
125
MAM
USA
Victor
Hymes
Board
Member
since
2020
Chair,
Audit
Committee
Member,
Nominating
and
Governance
Committee
1957
Founder
and
Managing
Member
of
Legato
Capital
Management,
LLC
125
Formerly,
Montgomery
Street
Income
Securities
Inc.
Padelford
(“Padel”)
L.
Lattimer
Board
Member
since
2020
Member,
Operations
Committee
Member,
15(c)
Committee
1961
TBA
Management
Consulting
LLC
125
None
Karen
(“Karrie”)
McMillan
Board
Member
since
2014
Chair,
Operations
Committee
1961
Founder/Owner,
Tyche
Consulting
LLC
Formerly,
Managing
Director,
Patomak
Global
Partners,
LLC
125
None
257
INTERESTED
BOARD
MEMBERS
Correspondence
intended
for
each
Board
Member
who
is
other
than
an
Interested
Board
Member
may
be
sent
to
655
9th
Street,
Des
Moines,
IA
50392.
Name,
Position
Held
with
the
Fund
Complex,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
Other
Directorships
Held
by
Board
Member
During
Past
5
Years
Elizabeth
A.
Nickels
Board
Member
since
2015
Member,
Audit
Committee
Chair,
Nominating
and
Governance
Committee
1962
Retired
125
SpartanNash;
Formerly:
Charlotte
Russe;
Follet
Corporation;
PetSmart;
Spectrum
Health
Systems
Mary
M.
(“Meg”)
VanDeWeghe
Board
Member
since
2018
Member,
Audit
Committee
Member,
15(c)
Committee
1959
CEO
and
President,
Forte
Consulting,
Inc.
125
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
Complex,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Board
Member
During
Past
5
Years
Timothy
M.
Dunbar
Chair
and
Board
Member
since
2019
Chair,
Executive
Committee
1957
President-Principal
Global
Asset
Management
(“PGAM”),
Principal
Global
Investors,
LLC
(“PGI”)
(2018-2021)
Director,
PGI
(2018-2020)
Division
President,
Principal
Financial
Services,
Inc.
(“PFSI)
and
Principal
Life
Insurance
Company
(“PLIC”)
(2020–2021)
Executive
Vice
President
and
Chief
Investment
Officer,
PFSI
and
PLIC
(2014-2018)
President
–
PGAM,
PFSI
and
PLIC
(2018-2020)
Director,
Post
Advisory
Group,
LLC
(“Post”)
(2018-
2020)
Chair
and
Executive
Vice
President,
RobustWealth,
Inc.
(2018-2020)
125
None
Patrick
G.
Halter
Board
Member
since
2017
Member,
Executive
Committee
1959
Chair,
PGI
since
2018
Chief
Executive
Officer
and
President,
PGI
and
Principal
Real
Estate
Investors,
LLC
(“PREI”)
since
2018
Chief
Operating
Officer,
PGI
(2017-2018)
Director,
PGI
(2003-2018)
Director,
Origin
Asset
Management
LLP
(2018-
2019)
President,
PGAM,
PFSI,
and
PLIC
since
2020
Chief
Executive
Officer
and
President,
PLIC
(2018-
2020)
Chair,
Post
(2017-2020)
Director,
Post
since
2017
Chair,
“PREI”
since
2004
Chief
Executive
Officer,
PREI
(2005-2018)
Chair,
Spectrum
Asset
Management,
Inc.
(“Spectrum”)
since
2017
125
None
258
FUND
COMPLEX
OFFICERS
Name,
Position
Held
with
the
Fund
Complex,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Kamal
Bhatia
President
and
Chief
Executive
Officer
Des
Moines,
IA
50392
1972
Director,
PGI
since
2019
President-Principal
Funds,
PGI
since
2019
Principal
Executive
Officer,
OPC
Private
Capital
(2017-2019)
Senior
Vice
President,
OppenheimerFunds
(2011-
2019)
Director,
Principal
Funds
Distributor,
Inc.
(“PFD”)
since
2019
Senior
Executive
Director
and
Chief
Operating
Officer,
PFSI
and
PLIC
since
2020
President,
Principal
Funds,
PFSI,
and
PLIC
(2019-
2020)
Director,
Post
since
2020
Director,
PREI
since
2020
Chair
and
Executive
Vice
President,
(Principal
Shareholder
Services,
Inc.
(“PSS’)
since
2019
Randy
D.
Bolin
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1961
Vice
President/Associate
General
Counsel,
PGI
since
2016
Vice
President/Associate
General
Counsel,
PFSI
since
2013
Vice
President/Associate
General
Counsel,
PLIC
since
2013
Beth
Graff
Vice
President
and
Assistant
Controller
Des
Moines,
IA
50392
1968
Director
–
Fund
Accounting,
PLIC
since
2016
Gina
L.
Graham
Treasurer
Des
Moines,
IA
50392
1965
Vice
President
and
Treasurer,
PGI
since
2016
Vice
President
and
Treasurer,
PFD
since
2016
Vice
President
and
Treasurer,
PFSI
since
2016
Vice
President
and
Treasurer,
PLIC
since
2016
Vice
President
and
Treasurer,
PREI
since
2017
Vice
President
and
Treasurer,
Principal
Securities,
Inc.
(“PSI”)
since
2016
Vice
President
and
Treasurer,
PSS
since
2016
Vice
President
and
Treasurer,
RobustWealth,
Inc.
since
2018
Megan
Hoffmann
Vice
President
and
Controller
Des
Moines,
IA
50392
1979
Director
–
Accounting,
PLIC
since
2020
Assistant
Director
–
Accounting,
PLIC
(2017-2020)
Prior
thereto,
Senior
Accounting
Analyst,
PLIC
Laura
B.
Latham
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1986
Counsel,
PGI
since
2018
Counsel,
PLIC
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
Tara
Parks
Vice
President
and
Assistant
Controller
Des
Moines,
IA
50392
1983
Director
–
Accounting,
PLIC
since
2019
Tax
Manager
–
ALPS
Fund
Services
(2011-2019)
Sara
L.
Reece
Vice
President
and
Chief
Operating
Officer
Des
Moines,
IA
50392
1975
Vice
President
and
Controller
(2016-2021)
Managing
Director
–
Global
Funds
Ops,
PLIC
since
2021
Managing
Director
–
Financial
Analysis/
Planning,
PLIC
(2021)
Director
-
Accounting,
PLIC
(2015-2021)
259
Name,
Position
Held
with
the
Fund
Complex,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Teri
R.
Root
Chief
Compliance
Officer
Des
Moines,
IA
50392
1979
Interim
Chief
Compliance
Officer
-
Funds
(2018)
Deputy
Chief
Compliance
Officer
-
Funds
(2015-
2018)
Chief
Compliance
Officer
–
Funds,
PGI
since
2018
Deputy
Chief
Compliance
Officer,
PGI
(2017-2018)
Vice
President
and
Chief
Compliance
Officer,
Principal
Management
Corporation
(“PMC”)
(2015–2017)
Vice
President,
PSS
since
2015
Britney
L.
Schnathorst
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1981
Counsel,
PGI
since
2018
Counsel,
PLIC
since
2013
Michael
Scholten
Chief
Financial
Officer
Des
Moines,
IA
50392
1979
Chief
Financial
Officer
–
PFD
since
2016
Assistant
Vice
President
and
Actuary,
PLIC
since
2021
Chief
Financial
Officer
–
Funds/Platforms,
PLIC
since
2015
Chief
Financial
Officer,
PSS
since
2015
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
(2007-2017)
John
L.
Sullivan
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1970
Counsel,
PGI
since
2020
Counsel,
PLIC
since
2019
Prior
thereto,
Attorney
in
Private
Practice
Dan
L.
Westholm
Assistant
Treasurer
Des
Moines,
IA
50392
1966
Assistant
Vice
President-Treasury,
PGI
since
2013
Assistant
Vice
President-Treasury,
PFD
since
2013
Assistant
Vice
President-Treasury,
PLIC
since
2014
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
since
2007
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
related
materials.
The
Audit
Committee’s
primary
purpose
is
to
assist
the
Board
by
serving
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
Fund
Complex's
business
except
the
power
to
1)
issue
stock,
except
as
permitted
by
law;
2)
recommend
to
the
stockholders
any
action
which
requires
stockholder
approval;
3)
amend
the
bylaws;
or
4)
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.
The
Committee
is
responsible
for
evaluating
Board
membership
and
functions,
committee
membership
and
functions,
insurance
coverage,
and
legal
matters.
The
Committee's
nominating
functions
include
selecting
and
nominating
Independent
Board
Member
candidates
for
election
to
the
Board.
Generally,
the
Committee
requests
nominee
suggestions
from
Board
Members
and
management.
In
addition,
the
Committee
considers
candidates
recommended
by
shareholders
of
the
Fund
Complex.
Recommendations
should
be
submitted
in
writing
to
the
Principal
Funds
Complex
Secretary,
in
care
of
the
Principal
Funds
Complex,
711
High
Street,
Des
Moines,
IA
50392.
Such
recommendations
must
include
all
information
specified
in
the
Committee’s
charter
and
must
conform
with
the
procedures
set
forth
in
Appendix
A
thereto,
which
can
be
found
at
https://www.principalglobal.com/documentdownload/160950.
Examples
of
such
information
include
the
nominee’s
biographical
information;
relevant
educational
and
professional
background
of
the
nominee;
the
number
of
shares
of
each
Fund
owned
of
record
and
Name,
Position
Held
with
the
Fund
Complex,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
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,
Associate
General
Counsel
and
Assistant
Secretary,
PGI
since
2021
Vice
President,
Associate
General
Counsel,
and
Secretary,
PGI
(2020-2021)
PREI
since
2020
PSI
since
2021
PSS
since
2021
Vice
President,
Associate
General
Counsel,
Governance
Officer
and
Assistant
Corporate
Secretary,
PGI
(2018-2020)
PFSI
since
2015
PLIC
since
2015
PREI
(2020)
Vice
President,
Associate
General
Counsel
and
Assistant
Corporate
Secretary,
PFD
since
2019
PSI
(2019-2021)
PSS
(2019-2021)
RobustWealth,
Inc.
since
2019
Secretary,
Post
(2020-2021)
Spectrum
(2020-2021)
Assistant
Secretary,
Post
since
2021
Spectrum
since
2021
Jared
A.
Yepsen
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1981
Counsel,
PGI
(2017-2019)
Counsel,
PLIC
since
2015
261
beneficially
by
the
nominee
and
by
the
recommending
shareholder;
any
other
information
regarding
the
nominee
that
would
be
required
to
be
disclosed
in
a
proxy
statement
or
other
filing
required
to
be
made
in
connection
with
the
solicitation
of
proxies
for
the
election
of
board
members;
whether
the
nominee
is
an
“interested
person”
of
the
Fund
as
defined
in
the
1940
Act;
and
the
written
consent
of
the
nominee
to
be
named
as
a
nominee
and
serve
as
a
board
member
if
elected.
When
evaluating
a
potential
nominee
for
Independent
Board
Member,
the
Committee
may
consider,
among
other
factors:
educational
background;
relevant
business
and
industry
experience;
whether
the
person
is
an
"interested
person"
of
the
Fund
as
defined
in
the
1940
Act;
and
whether
the
person
is
willing
to
serve,
and
willing
and
able
to
commit
the
time
necessary
to
attend
meetings
and
perform
the
duties
of
an
Independent
Board
Member. In
addition,
the
Committee
may
consider
whether
a
candidate’s
background,
experience,
skills
and
views
would
complement
the
background,
experience,
skills
and
views
of
other
Board
Members
and
would
contribute
to
the
diversity
of
the
Board. The
Committee
meets
with
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
Board
does
not
regularly
use
the
services
of
professional
search
firms
to
identify
or
evaluate
potential
candidates
or
nominees.
The
Operations
Committee’s
primary
purpose
is
to
oversee
the
provision
of
administrative
and
distribution
services
to
the
Fund
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
Prospectuses
and
the
Statement
of
Additional
Information
dated
May
31,
2021
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
the
renewal
of
the
Management
Agreement
and
various
subadvisory
agreements
for
all
Funds.
Annual
Review
and
Renewal
of
Management
Agreement
and
SubAdvisory
Agreements
At
its
September
14,
2021
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-four
(34)
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,
Quality
and
Extent
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,
2021
and
the
blended
investment
return
(50%/50%)
of
the
three-
and
five-year
periods
ended
March
31,
2021,
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,
2021,
respectively,
if
available.
The
Board
also
compared
each
Fund’s
investment
performance
over
the
one-,
three-
and
five-year
periods
ended
March
31,
2021,
as
available,
to
one
or
more
relevant
benchmark
indices.
The
Board
noted
that
264
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
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
contractual
and
effective
management
fee
rates.
For
each
Fund,
the
Board
received
certain
information
from
Broadridge.
For
Funds
the
Board
received
information
comparing
each
Fund’s
(1)
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
(or
Class
3
shares
if
the
Fund
does
not
issue
Class
2
shares).
In
evaluating
the
contractual
and
effective
management
fee
rates,
the
Board
considered
a
variety
of
factors,
including
the
contractual
and
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
regard
to
PVC
LargeCap
S&P
500
Managed
Volatility
Index
Account,
the
Board
noted
that
the
effective
net
management
fee
rate
and
the
total
net
expense
ratio
on
the
basis
of
Class
1
shares
were
higher
than
third
quartile
(both
were
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
third
quartile
of
its
Performance
Universe
for
the
three-year
and
blended
three-
and
five-year
periods
ended
March
31,
2021
(53rd
and
57th
percentiles,
respectively),
the
Board
concluded
that
the
Management
Agreement
should
be
renewed.
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
each
of
Real
Estate
Securities
Account,
LargeCap
S&P
500
Index
Account,
and
International
Emerging
Markets
Account,
the
Board
accepted
management’s
proposal
to
amend
the
management
fee
schedule
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
Diversified
Balanced
Volatility
Control
Account
and
Diversified
Growth
Volatility
Control
Account,
both
of
which
are
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
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.
265
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,
2020.
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,
2020.
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,
and
the
Diversified
Income
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.
266
With
regard
to
the
Real
Estate
Securities
Account,
the
Board
accepted
management’s
proposal
to
amend
the
Subadvisory
Agreement
for
the
Fund
with
Principal
Real
Estate
Investors,
LLC
to
amend
the
subadvisory
fee
schedule
for
the
Fund
to
reduce
the
effective
subadvisory
fee
rate
payable
at
all
asset
levels,
and
the
Board
considered
the
amended
subadvisory
fee
schedule
and
the
pro
forma
ranking
of
the
reduced
effective
subadvisory
fee
rate
in
concluding
that
the
Subadvisory
Agreement,
as
amended,
should
be
renewed
for
the
Fund.
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
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.
Federal
Income
Tax
Information
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2021
(unaudited)
267
Long-Term
Capital
Gain
Dividends.
Certain
funds
distributed
long-term
capital
gain
dividends
during
the
fiscal
year
ended
December
31,
2021
.
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
funds
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,
2021
,
that
qualifies
for
the
DRD
are
as
follows:
Foreign
Taxes
Paid.
The
following
funds
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,
2021
,
are
as
follows:
The
funds
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
Funds
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
23.03%
MidCap
Account
100.00%
Bond
Market
Index
Account
0.00
Principal
Capital
Appreciation
Account
100.00
Core
Plus
Bond
Account
0.58
Principal
LifeTime
2010
Account
7.64
Diversified
Balanced
Account
24.93
Principal
LifeTime
2020
Account
17.41
Diversified
Balanced
Managed
Volatility
Account
23.94
Principal
LifeTime
2030
Account
20.19
Diversified
Balanced
Volatility
Control
Account
15.11
Principal
LifeTime
2040
Account
25.27
Diversified
Growth
Account
34.76
Principal
LifeTime
2050
Account
28.40
Diversified
Growth
Managed
Volatility
Account
33.01
Principal
LifeTime
2060
Account
26.26
Diversified
Growth
Volatility
Control
Account
23.90
Principal
LifeTime
Strategic
Income
Account
8.13
Diversified
Income
Account
19.00
Real
Estate
Securities
Account
0.09
Diversified
International
Account
0.00
SAM
Balanced
Portfolio
47.05
Equity
Income
Account
98.04
SAM
Conservative
Balanced
Portfolio
31.43
Government
&
High
Quality
Bond
Account
0.00
SAM
Conservative
Growth
Portfolio
72.82
International
Emerging
Markets
Account
0.00
SAM
Flexible
Income
Portfolio
19.40
LargeCap
Growth
Account
I
32.16
SAM
Strategic
Growth
Portfolio
87.84
LargeCap
S&P
500
Index
Account
88.79
Short-Term
Income
Account
0.00
LargeCap
S&P
500
Managed
Volatility
Index
Account
46.85
SmallCap
Account
26.69
Foreign
Taxes
Per
Share
Foreign
Source
Income
Foreign
Taxes
Per
Share
Foreign
Source
Income
Diversified
Balanced
Account
$
0.0022
5.68%
Principal
LifeTime
2030
Account
$
0.0057
13.89%
Diversified
Balanced
Managed
Volatility
Account
0.0017
6.17
Principal
LifeTime
2040
Account
0.0083
17.71
Diversified
Balanced
Volatility
Control
Account
0.0013
5.14
Principal
LifeTime
2050
Account
0.0082
20.11
Diversified
Growth
Account
0.0036
8.86
Principal
LifeTime
2060
Account
0.0077
19.30
Diversified
Growth
Managed
Volatility
Account
0.0025
9.48
Principal
LifeTime
Strategic
Income
Account
0.0019
4.19
Diversified
Growth
Volatility
Control
Account
0.0019
8.59
SAM
Balanced
Portfolio
0.0046
15.41
Diversified
Income
Account
0.0010
3.57
SAM
Conservative
Balanced
Portfolio
0.0022
8.64
Diversified
International
Account
0.0306
89.93
SAM
Conservative
Growth
Portfolio
0.0074
24.06
International
Emerging
Markets
Account
0.0406
100.00
SAM
Flexible
Income
Portfolio
0.0017
5.19
Principal
LifeTime
2010
Account
0.0023
4.45
SAM
Strategic
Growth
Portfolio
0.0107
34.78
Principal
LifeTime
2020
Account
0.0044
10.69
principalfunds.com
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report
must
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or
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current
prospectus
for
the
Principal
Variable
Contracts
Funds,
Inc.
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Services,
Inc.,
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Financial
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United
States
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and
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of
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Financial
Services,
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around
the
world.
©
2021
Principal
Financial
Services,
Inc.
|
MM1290-27
|
12/2021
|
1968667
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, 2020 - $533,501
December 31, 2021 - $539,200
(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, 2020 - $5,500
December 31, 2021 - $0
Ernst &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, 2020 - $171,654
December 31, 2021 - $173,379
Ernst & 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 & 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 & 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, 2020 - $177,154
December 31, 2021 - $173,379
(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
The registrant has adopted procedures by which shareholders may recommend nominees to the registrant’s Board. A copy of the procedures can be found in the Nominating and Governance Committee charter at
https://www.principalglobal.com/documentdownload/160950
.
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 | 2/16/22 |
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 | 2/16/22 |
By | /s/ Michael Scholten |
Michael Scholten, Chief Financial Officer
Date | 2/15/22 |