Schedule
of
Investments
Principal
Diversified
Select
Real
Asset
Fund
December
31,
2019
(unaudited)
See
accompanying
notes.
1
INVESTMENT
COMPANIES
-
3.76%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0.24%
SPDR
S&P
Global
Natural
Resources
ETF
6,865
$
317
Money
Market
Funds
-
3.52%
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
1.52%
(a)
4,592,778
4,593
TOTAL
INVESTMENT
COMPANIES
$
4,910
PRIVATE
INVESTMENT
FUNDS
-
12.61%
Shares
Held
Value
(000's)
Agriculture
-
3.83%
Ceres
Farmland
Holdings,
LP
(b)
5,000,000
5,000
Diversified
Financial
Services
-
2.68%
Sound
Point
CLO
Fund,
LP
(b)
N/A
3,512
Forest
Products
&
Paper
-
6.10%
BTG
Pactual
Open
Ended
Core
US
Timberland
Fund,
LP
(b)
6,888
7,968
TOTAL
PRIVATE
INVESTMENT
FUNDS
$
16,480
COMMON
STOCKS
-
48.11%
Shares
Held
Value
(000's)
Agriculture
-
0.24%
Archer-Daniels-Midland
Co
3,402
158
Bunge
Ltd
2,736
157
$
315
Biotechnology
-
0.13%
Corteva
Inc
5,614
166
Chemicals
-
1.35%
CF
Industries
Holdings
Inc
3,161
151
Ecolab
Inc
1,805
348
FMC
Corp
1,491
149
Israel
Chemicals
Ltd
31,098
147
K+S
AG
12,919
161
Mosaic
Co/The
7,668
166
Nutrien
Ltd
3,094
148
OCI
NV
(c)
7,702
163
Sociedad
Quimica
y
Minera
de
Chile
SA
ADR
6,129
164
Yara
International
ASA
3,871
161
$
1,758
Commercial
Services
-
0.96%
Atlas
Arteria
Ltd
33,027
182
China
Merchants
Port
Holdings
Co
Ltd
292,000
494
Transurban
Group
54,762
573
$
1,249
Consumer
Products
-
0.11%
Avery
Dennison
Corp
1,120
146
Diversified
Financial
Services
-
0.18%
Centuria
Capital
Group
149,635
238
Electric
-
5.35%
Atlantica
Yield
PLC
19,216
507
AusNet
Services
435,773
520
Clearway
Energy
Inc
-
Class
C
22,160
442
Dominion
Energy
Inc
7,909
655
Duke
Energy
Corp
3,529
322
EDP
-
Energias
de
Portugal
SA
115,004
499
Emera
Inc
13,756
591
Hydro
One
Ltd
(d)
41,745
806
Red
Electrica
Corp
SA
38,230
770
Spark
Infrastructure
Group
310,229
455
SSE
PLC
27,023
516
Terna
Rete
Elettrica
Nazionale
SpA
77,619
519
Transmissora
Alianca
de
Energia
Eletrica
SA
49,200
381
$
6,983
Electronics
-
0.42%
Badger
Meter
Inc
6,802
442
Watts
Water
Technologies
Inc
1,119
111
$
553
Energy
-
Alternate
Sources
-
0.82%
NextEra
Energy
Partners
LP
8,182
431
Pattern
Energy
Group
Inc
6,548
175
TerraForm
Power
Inc
30,001
462
$
1,068
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Engineering
&
Construction
-
0.35%
Grupo
Aeroportuario
del
Pacifico
SAB
de
CV
24,100
$
286
Sydney
Airport
29,138
177
$
463
Environmental
Control
-
2.06%
AquaVenture
Holdings
Ltd
(c)
21,490
583
China
Water
Affairs
Group
Ltd
428,000
320
Evoqua
Water
Technologies
Corp
(c)
16,694
317
Kurita
Water
Industries
Ltd
5,600
166
Pentair
PLC
13,690
628
Tetra
Tech
Inc
7,882
679
$
2,693
Food
-
0.24%
Ingredion
Inc
1,756
163
Wilmar
International
Ltd
48,800
150
$
313
Forest
Products
&
Paper
-
0.92%
International
Paper
Co
3,152
145
Mondi
PLC
6,740
158
Nine
Dragons
Paper
Holdings
Ltd
143,000
149
Oji
Holdings
Corp
25,600
138
Smurfit
Kappa
Group
PLC
4,114
159
Stora
Enso
Oyj
10,859
158
Svenska
Cellulosa
AB
SCA
14,672
149
UPM-Kymmene
Oyj
4,369
151
$
1,207
Gas
-
1.02%
National
Grid
PLC
54,796
685
Snam
SpA
123,244
648
$
1,333
Healthcare
-
Products
-
0.78%
Danaher
Corp
6,662
1,022
Iron
&
Steel
-
1.20%
ArcelorMittal
SA
8,531
150
Evraz
PLC
30,489
163
Fortescue
Metals
Group
Ltd
22,195
167
JFE
Holdings
Inc
11,500
148
Nippon
Steel
Corp
10,000
151
Novolipetsk
Steel
PJSC
7,253
167
Nucor
Corp
2,591
146
POSCO
748
152
thyssenkrupp
AG
11,641
157
Vale
SA
ADR
12,421
164
$
1,565
Lodging
-
0.07%
City
Developments
Ltd
10,400
85
Machinery
-
Diversified
-
1.21%
Ebara
Corp
6,400
193
IDEX
Corp
2,170
373
Mueller
Water
Products
Inc
-
Class
A
8,977
108
Xylem
Inc/NY
11,546
910
$
1,584
Mining
-
2.41%
Agnico
Eagle
Mines
Ltd
2,458
151
Anglo
American
PLC
5,572
160
Antofagasta
PLC
13,010
158
Barrick
Gold
Corp
8,747
163
BHP
Group
Ltd
5,649
155
Franco-Nevada
Corp
1,484
153
Freeport-McMoRan
Inc
12,836
168
Glencore
PLC
(c)
46,302
144
Kirkland
Lake
Gold
Ltd
3,477
153
Korea
Zinc
Co
Ltd
424
156
MMC
Norilsk
Nickel
PJSC
ADR
5,564
170
Newcrest
Mining
Ltd
7,020
148
Newmont
Goldcorp
Corp
3,804
165
Norsk
Hydro
ASA
41,267
153
Rio
Tinto
Ltd
2,228
158
South32
Ltd
79,986
151
Schedule
of
Investments
Principal
Diversified
Select
Real
Asset
Fund
December
31,
2019
(unaudited)
See
accompanying
notes.
2
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Mining
(continued)
Southern
Copper
Corp
3,841
$
163
Sumitomo
Metal
Mining
Co
Ltd
4,800
155
Teck
Resources
Ltd
9,328
162
Wheaton
Precious
Metals
Corp
5,315
158
$
3,144
Oil
&
Gas
-
3.32%
BP
PLC
23,517
148
Canadian
Natural
Resources
Ltd
5,228
169
Chevron
Corp
1,247
150
CNOOC
Ltd
101,000
168
ConocoPhillips
2,437
159
Ecopetrol
SA
ADR
7,978
159
Eni
SpA
9,660
150
EOG
Resources
Inc
2,060
173
Equinor
ASA
7,922
158
Exxon
Mobil
Corp
2,144
150
Gazprom
PJSC
ADR
18,388
152
Imperial
Oil
Ltd
5,833
154
LUKOIL
PJSC
ADR
1,531
153
Marathon
Petroleum
Corp
2,408
145
Neste
Oyj
4,318
150
Novatek
PJSC
737
150
Occidental
Petroleum
Corp
3,787
156
Petroleo
Brasileiro
SA
ADR
9,917
158
Phillips
66
1,273
142
Pioneer
Natural
Resources
Co
1,142
173
Repsol
SA
9,271
146
Repsol
SA
(c)
9,271
4
Rosneft
Oil
Co
PJSC
21,545
156
Royal
Dutch
Shell
PLC
-
A
Shares
5,107
151
Suncor
Energy
Inc
4,683
154
Tatneft
PJSC
ADR
2,118
157
TOTAL
SA
2,780
154
Valero
Energy
Corp
1,529
143
Woodside
Petroleum
Ltd
6,257
151
$
4,333
Oil
&
Gas
Services
-
0.25%
Halliburton
Co
6,959
170
Schlumberger
Ltd
4,035
162
$
332
Packaging
&
Containers
-
0.58%
Amcor
PLC
14,237
154
DS
Smith
PLC
29,578
151
Packaging
Corp
of
America
1,305
146
Sealed
Air
Corp
3,871
154
Westrock
Co
3,622
155
$
760
Pipelines
-
6.58%
AltaGas
Ltd
19,934
304
APA
Group
57,666
449
Cheniere
Energy
Inc
(c)
4,508
275
Cheniere
Energy
Partners
LP
1,647
66
Enbridge
Inc
16,436
653
Energy
Transfer
LP
29,656
380
Enterprise
Products
Partners
LP
13,064
368
EQM
Midstream
Partners
LP
4,334
130
Gibson
Energy
Inc
17,097
350
Kinder
Morgan
Inc/DE
13,440
284
Magellan
Midstream
Partners
LP
5,345
336
MPLX
LP
13,848
353
Noble
Midstream
Partners
LP
96,604
2,566
ONEOK
Inc
4,311
326
Pembina
Pipeline
Corp
6,118
227
Phillips
66
Partners
LP
4,940
304
Plains
All
American
Pipeline
LP
19,310
355
Targa
Resources
Corp
2,640
108
Williams
Cos
Inc/The
32,320
767
$
8,601
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Real
Estate
-
1.66%
Aroundtown
SA
23,169
$
208
Castellum
AB
4,426
104
Entra
ASA
(d)
4,184
69
Fabege
AB
4,380
73
LEG
Immobilien
AG
1,087
128
Midea
Real
Estate
Holding
Ltd
(d)
28,600
88
Mitsubishi
Estate
Co
Ltd
16,100
308
New
World
Development
Co
Ltd
201,000
276
Sun
Hung
Kai
Properties
Ltd
18,500
283
TLG
Immobilien
AG
2,757
88
Tokyo
Tatemono
Co
Ltd
7,500
117
Vonovia
SE
6,420
345
Wihlborgs
Fastigheter
AB
4,346
80
$
2,167
REITs
-
10.74%
AIMS
APAC
REIT
40,700
43
Alexandria
Real
Estate
Equities
Inc
1,273
206
Altarea
SCA
219
50
American
Homes
4
Rent
8,634
226
Americold
Realty
Trust
3,865
136
Apartment
Investment
&
Management
Co
3,379
175
Arena
REIT
83,695
167
Big
Yellow
Group
PLC
13,179
209
Centuria
Industrial
REIT
28,707
67
Centuria
Metropolitan
REIT
52,414
107
CFE
Capital
S
de
RL
de
CV
199,700
290
CoreSite
Realty
Corp
600
67
Crown
Castle
International
Corp
3,864
550
CubeSmart
7,403
233
Daiwa
Office
Investment
Corp
16
123
Dexus
13,775
113
Dream
Industrial
Real
Estate
Investment
Trust
35,800
362
Duke
Realty
Corp
5,037
175
EPR
Properties
4,670
330
Equinix
Inc
523
305
Essential
Properties
Realty
Trust
Inc
5,745
143
Essex
Property
Trust
Inc
824
248
Extra
Space
Storage
Inc
1,811
191
Gecina
SA
1,063
191
Goodman
Group
16,907
159
Healthcare
Realty
Trust
Inc
3,350
112
Healthcare
Trust
of
America
Inc
10,535
319
Healthpeak
Properties
Inc
8,571
295
Independence
Realty
Trust
Inc
25,716
362
Industrial
&
Infrastructure
Fund
Investment
Corp
66
101
Industrial
Logistics
Properties
Trust
10,261
230
Ingenia
Communities
Group
10,164
35
Inmobiliaria
Colonial
Socimi
SA
6,870
88
Investec
Australia
Property
Fund
33,578
35
Invitation
Homes
Inc
18,616
558
Japan
Hotel
REIT
Investment
Corp
326
244
Japan
Retail
Fund
Investment
Corp
61
131
Kilroy
Realty
Corp
470
39
Klepierre
SA
2,695
103
Lendlease
Global
Commercial
REIT
(c)
55,500
38
Link
REIT
30,000
318
Macquarie
Mexico
Real
Estate
Management
SA
de
CV
(d)
67,100
88
MCUBS
MidCity
Investment
Corp
178
193
Merlin
Properties
Socimi
SA
16,998
244
Minto
Apartment
Real
Estate
Investment
Trust
8,600
153
NewRiver
REIT
PLC
33,403
89
NSI
NV
3,001
146
Park
Hotels
&
Resorts
Inc
5,209
135
Physicians
Realty
Trust
14,738
279
PLA
Administradora
Industrial
S
de
RL
de
CV
78,700
129
Prologis
Inc
6,321
563
Prologis
Property
Mexico
SA
de
CV
30,300
67
Rayonier
Inc
4,769
156
Schedule
of
Investments
Principal
Diversified
Select
Real
Asset
Fund
December
31,
2019
(unaudited)
See
accompanying
notes.
3
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
REITs
(continued)
Rexford
Industrial
Realty
Inc
2,955
$
135
Sabana
Shari'ah
Compliant
Industrial
Real
Estate
Investment
Trust
520,000
178
Sabra
Health
Care
REIT
Inc
14,274
305
Segro
PLC
29,591
352
Sekisui
House
Reit
Inc
329
277
Simon
Property
Group
Inc
557
83
Stockland
44,784
145
STORE
Capital
Corp
5,949
222
Summit
Industrial
Income
REIT
6,030
56
Sun
Communities
Inc
2,257
339
Sunstone
Hotel
Investors
Inc
6,160
86
Taubman
Centers
Inc
1,025
32
Terreno
Realty
Corp
1,700
92
UNITE
Group
PLC/The
6,859
115
United
Urban
Investment
Corp
146
274
VICI
Properties
Inc
9,198
235
Welltower
Inc
4,455
364
Weyerhaeuser
Co
9,186
277
WPT
Industrial
Real
Estate
Investment
Trust
25,225
350
$
14,033
Software
-
0.09%
InterXion
Holding
NV
(c)
1,348
113
Telecommunications
-
0.06%
Eutelsat
Communications
SA
4,970
81
Water
-
5.01%
Aguas
Andinas
SA
1,052,262
447
American
Water
Works
Co
Inc
9,628
1,183
Aqua
America
Inc
24,406
1,145
Guangdong
Investment
Ltd
198,000
414
Middlesex
Water
Co
867
55
Pennon
Group
PLC
36,887
500
Severn
Trent
PLC
10,554
352
SJW
Group
5,980
425
Suez
35,225
534
United
Utilities
Group
PLC
48,917
612
Veolia
Environnement
SA
24,655
656
York
Water
Co/The
4,903
226
$
6,549
TOTAL
COMMON
STOCKS
$
62,854
CONVERTIBLE
PREFERRED
STOCKS
-
1.66%
Shares
Held
Value
(000's)
Pipelines
-
1.66%
Targa
Resources
Corp
9.50%,
02/18/2021
(e)
2,000
$
2,161
TOTAL
CONVERTIBLE
PREFERRED
STOCKS
$
2,161
BONDS
-
31.40%
Principal
Amount
(000's)
Value
(000's)
Commercial
Mortgage
Backed
Securities
-
22.35%
Banc
of
America
Commercial
Mortgage
Trust
2015-UBS7
3.17%,
09/15/2048
$
1,000
$
830
BANK
2018-BNK13
3.00%,
08/15/2061
(d)
2,000
1,759
BANK
2018-BNK15
4.65%,
11/15/2061
(f)
2,000
2,169
BANK
2019-BNK20
0.84%,
09/15/2062
(f),(g)
15,185
1,019
Benchmark
2018-B6
Mortgage
Trust
3.12%,
10/10/2051
(d),(f)
1,000
905
3.12%,
10/10/2051
(d),(f)
550
458
Benchmark
2019-B12
Mortgage
Trust
3.00%,
08/15/2052
(d)
2,391
2,121
Cantor
Commercial
Real
Estate
Lending
2019-CF1
4.35%,
05/15/2052
(f)
1,000
1,053
CD
2017-CD4
Mortgage
Trust
4.35%,
05/10/2050
(f)
2,000
2,092
Citigroup
Commercial
Mortgage
Trust
2018-C6
5.07%,
11/10/2051
(f)
1,000
1,124
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
Citigroup
Commercial
Mortgage
Trust
2019-GC41
3.00%,
08/10/2056
(d)
$
1,750
$
1,572
3.00%,
08/10/2056
(d)
1,400
976
Csail
2015-C2
Commercial
Mortgage
Trust
3.23%,
06/15/2057
(d)
500
385
4.19%,
06/15/2057
(f)
500
444
DBGS
2018-5BP
Mortgage
Trust
2.38%,
06/15/2033
(d)
2,000
1,989
1.00
x
1
Month
USD
LIBOR
+
0.65%
GS
Mortgage
Securities
Trust
2013-GCJ14
4.74%,
08/10/2046
(d),(f)
539
554
GS
Mortgage
Securities
Trust
2019-GC40
1.16%,
07/10/2052
(d),(f),(g)
9,860
966
3.00%,
07/10/2052
(d)
2,000
1,772
GS
Mortgage
Securities
Trust
2019-GC42
0.94%,
09/01/2052
(d),(f)
3,246
258
2.80%,
09/01/2052
(d)
1,500
1,330
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C21
4.66%,
08/15/2047
(d),(f)
1,000
930
JPMBB
Commercial
Mortgage
Securities
Trust
2015-C28
3.70%,
10/15/2048
(d),(f)
500
98
JPMBB
Commercial
Mortgage
Securities
Trust
2015-C29
3.66%,
05/15/2048
(f)
560
481
JPMCC
Commercial
Mortgage
Securities
Trust
2019-COR4
3.00%,
03/10/2052
(d),(f)
2,000
1,791
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2015-C25
4.53%,
10/15/2048
(d),(f)
1,000
873
4.53%,
10/15/2048
(d),(f)
500
408
WFRBS
Commercial
Mortgage
Trust
2014-C20
3.99%,
05/15/2047
(d)
500
404
WFRBS
Commercial
Mortgage
Trust
2014-C21
3.50%,
08/15/2047
(d)
500
438
$
29,199
Consumer
Products
-
0.51%
Kronos
Acquisition
Holdings
Inc
9.00%,
08/15/2023
(d)
700
668
Food
-
0.36%
H-Food
Holdings
LLC
/
Hearthside
Finance
Co
Inc
8.50%,
06/01/2026
(d)
500
468
Healthcare
-
Services
-
0.59%
Hadrian
Merger
Sub
Inc
8.50%,
05/01/2026
(d)
750
768
Insurance
-
0.58%
Acrisure
LLC
/
Acrisure
Finance
Inc
10.13%,
08/01/2026
(d)
700
754
Leisure
Products
&
Services
-
0.27%
Constellation
Merger
Sub
Inc
8.50%,
09/15/2025
(d)
408
356
Media
-
0.92%
Cengage
Learning
Inc
9.50%,
06/15/2024
(d)
700
605
McGraw-Hill
Global
Education
Holdings
LLC
/
McGraw-Hill
Global
Education
Finance
7.88%,
05/15/2024
(d)
700
602
$
1,207
Miscellaneous
Manufacturers
-
0.64%
Foxtrot
Escrow
Issuer
LLC
/
Foxtrot
Escrow
Corp
12.25%,
11/15/2026
(d)
162
169
Schedule
of
Investments
Principal
Diversified
Select
Real
Asset
Fund
December
31,
2019
(unaudited)
See
accompanying
notes.
4
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Miscellaneous
Manufacturers
(continued)
FXI
Holdings
Inc
7.88%,
11/01/2024
(d)
$
700
$
672
$
841
Mortgage
Backed
Securities
-
2.41%
Freddie
Mac
STACR
2019-HQA3
9.29%,
09/25/2049
(d)
500
525
1.00
x
1
Month
USD
LIBOR
+
7.50%
Freddie
Mac
STACR
Trust
2019-DNA2
12.29%,
03/25/2049
(d)
900
1,169
1.00
x
1
Month
USD
LIBOR
+
10.50%
Freddie
Mac
STACR
Trust
2019-DNA3
9.94%,
07/25/2049
(d)
250
293
1.00
x
1
Month
USD
LIBOR
+
8.15%
Freddie
Mac
STACR
Trust
2019-HQA2
13.04%,
04/25/2049
(d)
900
1,166
1.00
x
1
Month
USD
LIBOR
+
11.25%
$
3,153
Other
Asset
Backed
Securities
-
0.38%
Oaktree
CLO
2019-4
Ltd
9.15%,
10/20/2032
(d)
500
498
1.00
x
3
Month
USD
LIBOR
+
7.23%
Retail
-
0.55%
Staples
Inc
10.75%,
04/15/2027
(d)
700
711
Telecommunications
-
1.84%
Cincinnati
Bell
Inc
7.00%,
07/15/2024
(d)
700
734
Consolidated
Communications
Inc
6.50%,
10/01/2022
700
634
Gogo
Intermediate
Holdings
LLC
/
Gogo
Finance
Co
Inc
9.88%,
05/01/2024
(d)
700
739
Intelsat
Connect
Finance
SA
9.50%,
02/15/2023
(d)
426
298
$
2,405
TOTAL
BONDS
$
41,028
CONVERTIBLE
BONDS
-
1.29%
Principal
Amount
(000's)
Value
(000's)
Energy
-
Alternate
Sources
-
1.29%
Sunnova
Energy
International
Inc
7.75%,
01/30/2027
(h)
1,777
1,688
TOTAL
CONVERTIBLE
BONDS
$
1,688
SENIOR
FLOATING
RATE
INTERESTS
-
0.97%
Principal
Amount
(000's)
Value
(000's)
Automobile
Parts
&
Equipment
-
0.52%
GC
EOS
Buyer
Inc
10.30%,
06/29/2026
(i)
$
700
$
679
3
Month
USD
LIBOR
+
2.75%
Telecommunications
-
0.45%
Intrado
Corp
6.38%,
10/10/2024
(i)
698
590
3
Month
USD
LIBOR
+
1.75%
TOTAL
SENIOR
FLOATING
RATE
INTERESTS
$
1,269
Total
Investments
$
130,390
Other
Assets
and
Liabilities
- 0.20%
261
TOTAL
NET
ASSETS
-
100.00%
$
130,651
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Private
Investment
Funds
have
quarterly
or
annual
redemption
frequencies
and
are
considered
restricted
securities.
Please
see
Private
Investment
Funds
sub-schedule
for
additional
information.
(c)
Non-income
producing
security
(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
$32,233
or
24.67%
of
net
assets.
(e)
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.
(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
is
an
Interest
Only
Strip.
(h)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$1,688
or
1.29%
of
net
assets.
(i)
Rate
information
disclosed
is
based
on
an
average
weighted
rate
of
the
underlying
tranches
as
of
period
end.
Portfolio
Summary (unaudited)
Sector
Percent
Mortgage
Securities
24.76%
Financial
15.84%
Energy
13.92%
Utilities
11.38%
Industrial
11.36%
Basic
Materials
5.88%
Consumer,
Cyclical
5.24%
Consumer,
Non-cyclical
3.92%
Money
Market
Funds
3.52%
Communications
3.27%
Asset
Backed
Securities
0.38%
Investment
Companies
0.24%
Technology
0.09%
Other
Assets
and
Liabilities
0.20%
TOTAL
NET
ASSETS
100.00%
Private
Investment
Funds
Security
Name
Acquisition
Date
Cost
Value
Redemption
Notice
(days)
Percent
of
Net
Assets
BTG
Pactual
Open
Ended
Core
US
Timberland
Fund,
LP
(a)
07/01/2019
$
8,000
$
7,968
90
6.10%
Ceres
Farmland
Holdings,
LP
(b)
11/01/2019
5,000
5,000
30
3.83%
Sound
Point
CLO
Fund,
LP
(b)
08/01/2019
4,000
3,512
60
2.68%
Total
$
16,480
12.61%
Amounts
in
thousands.
(a)
Redemptions
are
subject
to
a
two-year
holding
period
from
the
acquisition
date.
(b)
Redemptions
are
subject
to
a
one-year
holding
period
from
the
acquisition
date.
Glossary
to
the
Schedule
of
Investments
December
31,
2019
(unaudited)
See
accompanying
notes.
5
Currency
Abbreviations
USD/$
United
States
Dollar
December
31,
2019
(unaudited)
6
Security
Valuation.
Principal
Diversified
Select
Real
Asset
Fund
(known
as
the
“Fund”)
values
securities
for
which
market
quotations
are
readily
available
at
fair
value,
which
is
determined
using
the
last
reported
sale
price.
If
no
sales
are
reported,
as
is
regularly
the
case
for
some
securities
traded
over-the-counter,
securities
are
valued
using
the
last
reported
bid
price
or
an
evaluated
bid
price
provided
by
a
pricing
service.
Pricing
services
use
modeling
techniques
that
incorporate
security
characteristics
such
as
current
quotations
by
broker/dealers,
coupon,
maturity,
quality,
type
of
issue,
trading
characteristics,
other
yield
and
risk
factors,
and
other
market
conditions
to
determine
an
evaluated
bid
price
or,
in
the
case
of
certain
credit
default
swaps,
a
mean
price
provided
by
a
pricing
service.
When
reliable
market
quotations
are
not
considered
to
be
readily
available,
which
may
be
the
case,
for
example,
with
respect
to
restricted
securities,
certain
debt
securities,
preferred
stocks,
and
foreign
securities,
the
investments
are
valued
at
their
fair
value
as
determined
in
good
faith
by
the
Principal
Global
Investors,
LLC
(“the
Manager”)
under
procedures
established
and
periodically
reviewed
by
the
Fund’s
Board
of
Trustees.
The
Fund
invests
in
other
publicly
traded
investment
funds
which
are
valued
at
the
respective
fund’s
net
asset
value.
In
addition,
the
Fund
invests
a
portion
of
its
assets
in
private
investment
funds
which
are
valued
at
fair
value
based
upon
the
net
asset
value
reported
on
a
periodic
basis.
The
appropriateness
of
the
fair
value
of
these
securities
is
monitored
by
the
Manager.
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
Fund’s
net
asset
value
are
reflected
in
the
Fund’s
net
asset
value
and
these
securities
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Fund’s
Board
of
Trustees.
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
ADRs,
futures
contracts,
industry
indices,
general
indices,
and
foreign
currencies.
To
the
extent
the
Fund
invests
in
foreign
securities
listed
on
foreign
exchanges
which
trade
on
days
on
which
the
Fund
does
not
determine
net
asset
value,
for
example
weekends
and
other
customary
national
U.S.
holidays,
the
Fund’s
net
asset
value
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
affected.
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
Trustees
as
may
occasionally
be
necessary.
Fair
value
is
defined
as
the
price
that
the
Fund
would
receive
upon
selling
a
security
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
Fund
may
use
one
or
more
of
the
following
approaches:
market,
income
and/or
cost.
A
hierarchy
for
inputs
is
used
in
measuring
fair
value
that
maximizes
the
use
of
observable
inputs
and
minimizes
the
use
of
unobservable
inputs
by
requiring
that
the
most
observable
inputs
be
used
when
available.
Observable
inputs
are
inputs
that
reflect
the
assumptions
market
participants
would
use
in
pricing
the
asset
or
liability
developed
based
on
market
data
obtained
from
sources
independent
of
the
Fund.
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.
The
type
of
securities
included
in
Level
1
includes
listed
equities
and
listed
derivatives.
Level
2
–
Other
significant
observable
inputs
(including
quoted
prices
for
similar
investments,
interest
rates,
prepayments
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
US
Government
and
Government
Agency
Obligations.
Level
3
–
Significant
unobservable
inputs
(including
the
Fund’s
assumptions
in
determining
the
fair
value
of
investments).
Investments
which
are
generally
included
in
this
category
include
certain
common
stocks,
corporate
bonds,
mortgage
backed
securities
or
senior
floating
rate
interests.
In
accordance
with
Accounting
Standards
Codification
820
–
Fair
Value
Measurement,
the
Fund
has
elected
to
apply
the
practical
expedient
to
value
its
investments
in
private
investment
funds
at
their
respective
net
asset
value
each
calendar
quarter.
On
non-valuation
days,
the
Valuation
Committee
determines
the
fair
value
of
each
private
investment
fund.
These
investments
are
excluded
from
the
fair
value
hierarchy.
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
December
31,
2019
(unaudited)
7
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
Fund
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
Fund’s
own
assumptions
are
set
to
reflect
those
that
market
participants
would
use
in
pricing
the
asset
or
liability
at
the
measurement
date.
The
Fund
uses
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.
Valuation
models
rely
on
one
or
more
significant
unobservable
inputs
such
as
prepayment
rates,
probability
of
default,
or
loss
severity
in
the
event
of
default.
Significant
increases
in
any
of
those
inputs
in
isolation
would
result
in
a
significantly
lower
fair
value
measurement.
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,
accidents,
conflicts,
etc.).
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Fund’s
Board
of
Trustees.
The
Manager
has
established
a
valuation
committee
(“Valuation
Committee”)
of
senior
officers
and
employees,
with
the
responsibility
of
overseeing
the
pricing
and
valuation
of
all
securities,
including
securities
where
market
quotations
are
not
readily
available.
The
Valuation
Committee
meets
at
least
monthly
and
reports
directly
to
the
Board
of
Trustees.
A
pricing
group
(the
“Pricing
Group”)
who
reports
to
the
Valuation
Committee,
relies
on
the
established
pricing
policies
to
determine
fair
valuation.
Included
in
the
pricing
policies
is
an
overview
of
the
approved
valuation
approaches
established
for
each
asset
class.
The
Pricing
Group
will
consider
all
appropriate
information
available
when
determining
fair
valuation.
The
Pricing
Group
relies
on
externally
provided
valuation
inputs
to
determine
the
value
of
Level
3
securities.
Security
values
are
updated
as
new
information
becomes
available.
Valuation
data
and
changes
in
valuation
amounts
are
reviewed
on
a
daily
basis
based
on
specified
criteria
for
the
security,
asset
class,
and
other
factors.
In
addition,
valuation
data
is
periodically
compared
to
actual
transactions
executed
by
the
Fund
(i.e.,
purchases/sales)
and
differences
between
transaction
prices
and
prior
period
valuation
data
are
investigated
based
on
specified
tolerances.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risk
associated
with
investing
in
those
instruments.
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Principal
Diversified
Select
Real
Asset
Fund
Bonds*
$
—
$
41,028
$
—
$
41,028
Common
Stocks
Basic
Materials
3,187
4,487
—
7,674
Communications
—
81
—
81
Consumer,
Cyclical
—
85
—
85
Consumer,
Non-cyclical
1,812
1,399
—
3,211
Energy
11,737
2,597
—
14,334
Financial
9,698
6,740
—
16,438
Industrial
5,046
1,007
—
6,053
Technology
113
—
—
113
December
31,
2019
(unaudited)
8
*For
additional
detail
regarding
sector
classifications,
please
see
the
Schedule
of
Investments.
The
Fund's
Schedule
of
Investments
as
of
December
31,
2019
has
not
been
audited.
This
report
is
provided
for
the
general
information
of
the
Fund's
shareholders.
For
more
information
regarding
the
Fund
and
its
holdings,
please
see
the
Fund's
prospectus
and
annual
report.
Fund
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Principal
Diversified
Select
Real
Asset
Fund
Utilities
$
6,738
$
8,127
$
—
$
14,865
Convertible
Bonds*
—
1,688
—
1,688
Convertible
Preferred
Stocks
Energy
—
2,161
—
2,161
Investment
Companies
4,910
—
—
4,910
Senior
Floating
Rate
Interests*
—
1,269
—
1,269
Total
investments
in
securities
$
4
3
,241
$
70,669
$
—
$
1
13,91
0
Investments
Using
NAV
as
a
practical
expedient
Private
Investment
Funds
—
—
—
16,480
Total
investments
in
securities
—
—
—
130,390