Schedule
of
Investments
Principal
Diversified
Select
Real
Asset
Fund
June
30,
2020
(unaudited)
See
accompanying
notes.
1
INVESTMENT
COMPANIES
-
6.75
%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0.35
%
SPDR
S&P
Global
Natural
Resources
ETF
12,737
$
470
Money
Market
Funds
-
6.40%
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
0.05%
(a)
8,353,681
8,354
TOTAL
INVESTMENT
COMPANIES
$
8,824
PRIVATE
INVESTMENT
FUNDS
-
12.98
%
Shares/Units
Held
Value
(000's)
Agriculture
-
4.72
%
Ceres
Farmland
Holdings,
LP
(b)
6,000,000
$
6,185
Diversified
Financial
Services
-
2.15%
Sound
Point
CLO
Fund,
LP
(b)
N/A
2,803
Forest
Products
&
Paper
-
6.11
%
BTG
Pactual
Open
Ended
Core
US
Timberland
Fund,
LP
(b)
6,905
7,9
8
3
TOTAL
PRIVATE
INVESTMENT
FUNDS
$
16,971
COMMON
STOCKS
-
52.38
%
Shares
Held
Value
(000's)
Agriculture
-
0.22%
Archer-Daniels-Midland
Co
3,519
$
140
Bunge
Ltd
3,544
146
$
286
Biotechnology
-
0.10%
Corteva
Inc
5,065
136
Building
Materials
-
0.14%
Geberit
AG
366
184
Chemicals
-
1.22%
CF
Industries
Holdings
Inc
4,709
132
Ecolab
Inc
1,877
373
FMC
Corp
1,406
140
ICL
Group
Ltd
39,948
119
K+S
AG
21,760
138
Mosaic
Co/The
11,440
143
Nutrien
Ltd
4,067
131
OCI
NV
(c)
12,250
129
Sociedad
Quimica
y
Minera
de
Chile
SA
ADR
5,675
148
Yara
International
ASA
4,043
141
$
1,594
Commercial
Services
-
1.25%
Atlas
Arteria
Ltd
62,512
289
China
Merchants
Port
Holdings
Co
Ltd
108,000
128
Transurban
Group
124,671
1,222
$
1,639
Consumer
Products
-
0.11%
Avery
Dennison
Corp
1,250
143
Diversified
Financial
Services
-
0.19%
Centuria
Capital
Group
198,796
247
Electric
-
10.24
%
AusNet
Services
833,698
963
CenterPoint
Energy
Inc
12,844
240
Clearway
Energy
Inc
-
Class
C
55,256
1,274
Dominion
Energy
Inc
15,130
1,228
Duke
Energy
Corp
11,523
921
Edison
International
13,556
736
EDP
-
Energias
de
Portugal
SA
217,028
1,036
Emera
Inc
26,316
1,035
Hydro
One
Ltd
(d)
29,537
555
Red
Electrica
Corp
SA
90,151
1,687
Spark
Infrastructure
Group
738,381
1,103
SSE
PLC
51,712
876
Terna
Rete
Elettrica
Nazionale
SpA
148,495
1,024
Transmissora
Alianca
de
Energia
Eletrica
SA
133,700
700
$
13,378
Electronics
-
0.33%
Badger
Meter
Inc
3,666
230
Watts
Water
Technologies
Inc
2,429
197
$
427
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Energy
-
Alternate
Sources
-
2.95%
Enviva
Partners
LP
(c),(e)
30,769
$
1,109
NextEra
Energy
Partners
LP
29,882
1,532
TerraForm
Power
Inc
65,380
1,206
$
3,847
Engineering
&
Construction
-
0.88%
Aena
SME
SA
(c),(d)
1,828
245
Grupo
Aeroportuario
del
Pacifico
SAB
de
CV
45,900
331
Stantec
Inc
6,774
209
Sydney
Airport
91,147
360
$
1,145
Environmental
Control
-
1.67%
China
Water
Affairs
Group
Ltd
196,000
142
Evoqua
Water
Technologies
Corp
(c)
23,385
435
Kurita
Water
Industries
Ltd
11,600
323
METAWATER
Co
Ltd
5,900
272
Pentair
PLC
10,486
398
Tetra
Tech
Inc
7,688
608
$
2,178
Food
-
0.22%
Ingredion
Inc
1,643
137
Wilmar
International
Ltd
49,100
145
$
282
Forest
Products
&
Paper
-
0.85%
International
Paper
Co
4,062
143
Mondi
PLC
7,419
139
Nine
Dragons
Paper
Holdings
Ltd
158,000
144
Oji
Holdings
Corp
27,500
128
Smurfit
Kappa
Group
PLC
4,250
143
Stora
Enso
Oyj
11,279
135
Svenska
Cellulosa
AB
SCA
(c)
11,087
133
UPM-
Kymmene
Oyj
4,788
139
$
1,104
Gas
-
2.22%
Enagas
SA
12,039
295
Italgas
SpA
104,886
610
National
Grid
PLC
69,552
849
Snam
SpA
235,783
1,149
$
2,903
Healthcare
-
Products
-
0.69%
Danaher
Corp
5,135
908
Iron
&
Steel
-
1.09%
ArcelorMittal
SA
(c)
14,449
153
Evraz
PLC
39,615
140
Fortescue
Metals
Group
Ltd
14,991
146
JFE
Holdings
Inc
18,800
136
Nippon
Steel
Corp
15,000
142
Novolipetsk
Steel
PJSC
7,197
143
Nucor
Corp
3,273
136
POSCO
946
138
thyssenkrupp
AG
(c)
20,518
146
Vale
SA
ADR
14,172
146
$
1,426
Lodging
-
0.05%
City
Developments
Ltd
10,400
64
Machinery
-
Diversified
-
0.96%
IDEX
Corp
1,853
293
Mueller
Water
Products
Inc
-
Class
A
19,689
185
Xylem
Inc
/NY
11,868
771
$
1,249
Metal
Fabrication
&
Hardware
-
0.26%
Advanced
Drainage
Systems
Inc
6,789
335
Mining
-
2.26%
Agnico
Eagle
Mines
Ltd
2,171
139
Anglo
American
PLC
6,574
152
Antofagasta
PLC
12,766
148
Barrick
Gold
Corp
5,774
155
BHP
Group
Ltd
6,016
150
Franco-Nevada
Corp
990
138
Schedule
of
Investments
Principal
Diversified
Select
Real
Asset
Fund
June
30,
2020
(unaudited)
See
accompanying
notes.
2
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Mining
(continued)
Freeport-McMoRan
Inc
15,249
$
176
Glencore
PLC
(c)
74,672
159
Kirkland
Lake
Gold
Ltd
3,604
148
Korea
Zinc
Co
Ltd
453
127
MMC
Norilsk
Nickel
PJSC
ADR
4,415
116
Newcrest
Mining
Ltd
6,814
151
Newmont
Corp
2,366
146
Norsk
Hydro
ASA
(c)
54,473
152
Rio
Tinto
Ltd
2,231
153
South32
Ltd
109,090
154
Southern
Copper
Corp
3,811
152
Sumitomo
Metal
Mining
Co
Ltd
5,000
141
Teck
Resources
Ltd
14,616
153
Wheaton
Precious
Metals
Corp
3,223
142
$
2,952
Oil
&
Gas
-
3.02%
BP
PLC
36,590
140
Canadian
Natural
Resources
Ltd
7,601
132
Chevron
Corp
1,509
135
CNOOC
Ltd
124,000
139
ConocoPhillips
3,279
138
Ecopetrol
SA
ADR
13,286
148
Eni
SpA
15,307
147
EOG
Resources
Inc
2,713
137
Equinor
ASA
9,525
137
Exxon
Mobil
Corp
3,041
136
Gazprom
PJSC
ADR
24,903
134
Imperial
Oil
Ltd
8,887
143
LUKOIL
PJSC
ADR
1,863
139
Marathon
Petroleum
Corp
3,936
147
Neste
Oyj
3,424
135
Novatek
PJSC
956
136
Occidental
Petroleum
Corp
10,680
195
Petroleo
Brasileiro
SA
ADR
18,127
150
Phillips
66
1,768
127
Pioneer
Natural
Resources
Co
1,509
147
Repsol
SA
14,855
131
Repsol
SA
-
Rights
(c)
14,855
7
Rosneft
Oil
Co
PJSC
26,577
134
Royal
Dutch
Shell
PLC
-
A
Shares
8,884
142
Suncor
Energy
Inc
8,076
136
Tatneft
PJSC
ADR
3,073
143
TOTAL
SA
3,697
143
Valero
Energy
Corp
2,076
122
Woodside
Petroleum
Ltd
9,191
139
$
3,939
Oil
&
Gas
Services
-
0.22%
Halliburton
Co
11,771
153
Schlumberger
Ltd
7,488
137
$
290
Packaging
&
Containers
-
0.53%
Amcor
PLC
13,547
138
DS
Smith
PLC
32,992
134
Packaging
Corp
of
America
1,364
136
Sealed
Air
Corp
4,309
142
Westrock
Co
4,929
139
$
689
Pipelines
-
5.00%
APA
Group
110,322
853
Cheniere
Energy
Inc
(c)
8,562
414
Enbridge
Inc
14,912
453
Energy
Transfer
LP
58,775
418
Equitrans
Midstream
Corp
20,203
168
Gibson
Energy
Inc
27,263
424
Hess
Midstream
LP
13,730
252
Kinder
Morgan
Inc
25,785
391
Magellan
Midstream
Partners
LP
10,311
445
MPLX
LP
27,006
467
Noble
Midstream
Partners
LP
48,304
409
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pipelines
(continued)
ONEOK
Inc
8,357
$
278
Phillips
66
Partners
LP
9,816
354
Plains
All
American
Pipeline
LP
24,013
212
Williams
Cos
Inc
/The
51,729
984
$
6,522
Real
Estate
-
1.80%
Castellum
AB
4,881
91
Entra
ASA
(d)
6,878
88
Fabege
AB
5,831
69
LEG
Immobilien
AG
(c)
1,274
162
Midea
Real
Estate
Holding
Ltd
(d)
28,600
70
Mitsubishi
Estate
Co
Ltd
20,300
302
Mitsui
Fudosan
Co
Ltd
10,000
178
New
World
Development
Co
Ltd
62,750
298
Sun
Hung
Kai
Properties
Ltd
20,500
262
Vonovia
SE
9,242
565
Wihlborgs
Fastigheter
AB
4,747
78
Zhongliang
Holdings
Group
Co
Ltd
272,000
194
$
2,357
REITs
-
8.67
%
AIMS
APAC
REIT
152,700
135
Alexandria
Real
Estate
Equities
Inc
563
91
American
Homes
4
Rent
7,287
196
American
Tower
Corp
421
109
Apartment
Investment
and
Management
Co
2,674
101
Arena
REIT
98,950
151
AvalonBay
Communities
Inc
580
90
Big
Yellow
Group
PLC
15,809
197
Centuria
Industrial
REIT
38,593
85
Centuria
Office
REIT
49,414
69
CFE
Capital
S
de
RL
de
CV
541,100
575
CoreSite
Realty
Corp
1,608
195
Crown
Castle
International
Corp
4,974
833
CubeSmart
7,103
192
CyrusOne
Inc
1,804
131
Daiwa
Office
Investment
Corp
16
88
Dexus
13,775
88
Dream
Industrial
Real
Estate
Investment
Trust
29,600
233
Equinix
Inc
334
235
Essential
Properties
Realty
Trust
Inc
5,145
76
Essex
Property
Trust
Inc
246
56
Gecina
SA
1,139
141
Goodman
Group
20,730
214
Healthcare
Trust
of
America
Inc
7,253
192
Healthpeak
Properties
Inc
6,606
182
Independence
Realty
Trust
Inc
25,216
290
Industrial
&
Infrastructure
Fund
Investment
Corp
81
131
Industrial
Logistics
Properties
Trust
10,761
221
Ingenia
Communities
Group
48,452
152
Inmobiliaria
Colonial
Socimi
SA
9,731
86
Investec
Australia
Property
Fund
33,578
28
Invitation
Homes
Inc
15,123
416
Japan
Hotel
REIT
Investment
Corp
326
135
Lendlease
Global
Commercial
REIT
55,500
27
Link
REIT
31,100
255
MCUBS
MidCity
Investment
Corp
198
144
Merlin
Properties
Socimi
SA
12,739
106
MGM
Growth
Properties
LLC
3,391
92
Minto
Apartment
Real
Estate
Investment
Trust
4,200
62
NewRiver
REIT
PLC
33,633
26
Nippon
Prologis
REIT
Inc
(c)
44
134
Nomura
Real
Estate
Master
Fund
Inc
100
120
NSI
NV
4,036
156
Park
Hotels
&
Resorts
Inc
6,593
65
Physicians
Realty
Trust
6,704
117
Prologis
Inc
8,107
757
Rayonier
Inc
5,823
144
Rexford
Industrial
Realty
Inc
2,655
110
Schedule
of
Investments
Principal
Diversified
Select
Real
Asset
Fund
June
30,
2020
(unaudited)
See
accompanying
notes.
3
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
REITs
(continued)
Sabana
Shari'ah
Compliant
Industrial
Real
Estate
Investment
Trust
720,000
$
182
Sabra
Health
Care
REIT
Inc
5,414
78
Segro
PLC
32,317
357
Sekisui
House
Reit
Inc
329
211
Simon
Property
Group
Inc
271
19
STORE
Capital
Corp
7,295
174
Summit
Industrial
Income
REIT
19,130
161
Sun
Communities
Inc
1,857
252
Sunstone
Hotel
Investors
Inc
4,860
40
Taubman
Centers
Inc
614
23
Terreno
Realty
Corp
1,300
68
UNITE
Group
PLC/The
7,492
87
United
Urban
Investment
Corp
146
157
VICI
Properties
Inc
8,201
166
Vicinity
Centres
43,210
43
Welltower
Inc
6,543
339
Weyerhaeuser
Co
11,454
257
WPT
Industrial
Real
Estate
Investment
Trust
23,821
303
$
11,346
Telecommunications
-
0.07%
Eutelsat
Communications
SA
9,506
88
Water
-
5.17
%
Aguas
Andinas
SA
2,407,131
815
American
States
Water
Co
3,707
292
American
Water
Works
Co
Inc
8,842
1,138
Essential
Utilities
Inc
19,628
829
Guangdong
Investment
Ltd
180,000
311
Middlesex
Water
Co
1,438
97
Pennon
Group
PLC
58,577
811
Severn
Trent
PLC
20,197
618
SJW
Group
2,842
177
Suez
SA
31,010
364
United
Utilities
Group
PLC
51,554
579
Veolia
Environnement
SA
25,793
582
York
Water
Co/The
3,441
165
$
6,778
TOTAL
COMMON
STOCKS
$
68,436
CONVERTIBLE
PREFERRED
STOCKS
-
1.53%
Shares
Held
Value
(000's)
Pipelines
-
1.53%
Targa
Resources
Corp
9.50%,
02/18/2021
(e),(f),(g),(h)
2,000
$
1,994
TOTAL
CONVERTIBLE
PREFERRED
STOCKS
$
1,994
PREFERRED
STOCKS
-
0.21%
Shares
Held
Value
(000's)
Electric
-
0.21%
Cia
de
Transmissao
de
Energia
Eletrica
Paulista
0.15%
71,100
$
274
TOTAL
PREFERRED
STOCKS
$
274
BONDS
-
24.37
%
Principal
Amount
(000's)
Value
(000's)
Commercial
Mortgage
Backed
Securities
-
17.37
%
Banc
of
America
Commercial
Mortgage
Trust
2015-UBS7
3.17%,
09/15/2048
$
1,000
$
664
BANK
2018-BNK13
3.00%,
08/15/2061
(d)
2,000
1,148
BANK
2018-BNK15
4.81%,
11/15/2061
(
i
)
1,600
1,477
BANK
2019-BNK20
0.96%,
09/15/2062
(
i
),(j)
15,153
962
BANK
2019-BNK22
1.50%,
11/15/2062
(d),(
i
),(j)
2,000
214
1.96%,
11/15/2062
(d),(
i
)
1,000
378
Benchmark
2018-B6
Mortgage
Trust
3.27%,
10/10/2051
(d),(
i
)
1,000
643
3.27%,
10/10/2051
(d),(
i
)
550
311
Benchmark
2019-B12
Mortgage
Trust
3.00%,
08/15/2052
(d)
2,391
1,814
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
Benchmark
2019-B13
Mortgage
Trust
1.14%,
08/15/2057
(d),(
i
),(j)
$
1,750
$
128
3.00%,
08/15/2057
(d)
1,750
690
Cantor
Commercial
Real
Estate
Lending
2019-CF1
4.35%,
05/15/2052
(
i
)
1,000
842
CCUBS
Commercial
Mortgage
Trust
2017-C1
3.91%,
11/15/2050
(
i
)
1,000
1,089
Citigroup
Commercial
Mortgage
Trust
2018-C6
5.24%,
11/10/2051
(
i
)
1,000
933
Citigroup
Commercial
Mortgage
Trust
2019-GC41
3.00%,
08/10/2056
(d)
1,750
1,031
3.00%,
08/10/2056
(d)
1,400
564
COMM
2015-CCRE25
Mortgage
Trust
4.69%,
08/10/2048
(d),(
i
)
500
314
Csail
2015-C2
Commercial
Mortgage
Trust
3.23%,
06/15/2057
(d)
500
243
4.33%,
06/15/2057
(
i
)
500
285
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
1.63%,
01/25/2027
(
i
),(j)
12,000
975
GS
Mortgage
Securities
Trust
2013-GCJ14
4.90%,
08/10/2046
(d),(
i
)
539
408
GS
Mortgage
Securities
Trust
2019-GC40
1.30%,
07/10/2052
(d),(
i
),(j)
9,860
877
3.00%,
07/10/2052
(d)
2,000
1,342
GS
Mortgage
Securities
Trust
2019-GC42
0.94%,
09/01/2052
(d),(
i
),(j)
3,246
229
2.80%,
09/01/2052
(d)
1,500
1,064
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C21
4.81%,
08/15/2047
(d),(
i
)
1,000
820
JPMBB
Commercial
Mortgage
Securities
Trust
2015-C28
3.79%,
10/15/2048
(d),(
i
)
500
82
JPMBB
Commercial
Mortgage
Securities
Trust
2015-C29
3.85%,
05/15/2048
(
i
)
560
347
JPMCC
Commercial
Mortgage
Securities
Trust
2019-COR4
3.00%,
03/10/2052
(d)
2,000
1,255
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2015-C25
4.68%,
10/15/2048
(d),(
i
)
1,000
603
4.68%,
10/15/2048
(d),(
i
)
500
295
WFRBS
Commercial
Mortgage
Trust
2014-C20
3.99%,
05/15/2047
(d)
500
352
WFRBS
Commercial
Mortgage
Trust
2014-C21
3.50%,
08/15/2047
(d)
500
318
$
22,697
Commercial
Services
-
0.54%
APX
Group
Inc
6.75%,
02/15/2027
(d)
750
708
Consumer
Products
-
0.50%
Kronos
Acquisition
Holdings
Inc
9.00%,
08/15/2023
(d)
683
651
Food
-
0.36%
H-Food
Holdings
LLC
/
Hearthside
Finance
Co
Inc
8.50%,
06/01/2026
(d)
500
466
Healthcare
-
Services
-
0.52%
Hadrian
Merger
Sub
Inc
8.50%,
05/01/2026
(d)
750
679
Insurance
-
0.58%
Acrisure
LLC
/
Acrisure
Finance
Inc
10.13%,
08/01/2026
(d)
700
752
Schedule
of
Investments
Principal
Diversified
Select
Real
Asset
Fund
June
30,
2020
(unaudited)
See
accompanying
notes.
4
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Leisure
Products
&
Services
-
0.46%
Constellation
Merger
Sub
Inc
8.50%,
09/15/2025
(d)
$
750
$
600
Media
-
0.34%
Cengage
Learning
Inc
9.50%,
06/15/2024
(d)
406
284
McGraw-Hill
Global
Education
Holdings
LLC
/
McGraw-Hill
Global
Education
Finance
7.88%,
05/15/2024
(d)
239
159
$
443
Miscellaneous
Manufacturers
-
0.57%
FXI
Holdings
Inc
7.88%,
11/01/2024
(d)
688
592
12.25%,
11/15/2026
(d)
160
155
$
747
Mortgage
Backed
Securities
-
1.98
%
Freddie
Mac
STACR
2019-HQA3
7.68%,
09/25/2049
(d)
500
392
1.00
x
1
Month
USD
LIBOR
+
7.50%
Freddie
Mac
STACR
Remic
Trust
2020-DNA2
4.98%,
02/25/2050
(d)
500
289
1.00
x
1
Month
USD
LIBOR
+
4.80%
Freddie
Mac
STACR
Trust
2019-DNA2
10.68%,
03/25/2049
(d)
900
850
1.00
x
1
Month
USD
LIBOR
+
10.50%
Freddie
Mac
STACR
Trust
2019-DNA3
8.33%,
07/25/2049
(d)
250
203
1.00
x
1
Month
USD
LIBOR
+
8.15%
Freddie
Mac
STACR
Trust
2019-HQA2
11.43%,
04/25/2049
(d)
900
869
1.00
x
1
Month
USD
LIBOR
+
11.25%
$
2,603
Other
Asset
Backed
Securities
-
0.30%
Oaktree
CLO
2019-4
Ltd
8.37%,
10/20/2032
(d)
500
388
1.00
x
3
Month
USD
LIBOR
+
7.23%
Retail
-
0.31%
Staples
Inc
10.75%,
04/15/2027
(d)
700
411
Telecommunications
-
0.54%
Consolidated
Communications
Inc
6.50%,
10/01/2022
417
384
Gogo
Intermediate
Holdings
LLC
/
Gogo
Finance
Co
Inc
9.88%,
05/01/2024
(d)
372
316
$
700
TOTAL
BONDS
$
31,845
CONVERTIBLE
BONDS
-
1.75%
Principal
Amount
(000's)
Value
(000's)
Energy
-
Alternate
Sources
-
1.75%
Sunnova
Energy
International
Inc
9.75%,
04/30/2025
(e),(g),(h)
$
1,777
$
2,286
TOTAL
CONVERTIBLE
BONDS
$
2,286
SENIOR
FLOATING
RATE
INTERESTS
-
0.39%
Principal
Amount
(000's)
Value
(000's)
Automobile
Parts
&
Equipment
-
0.39%
GC
EOS
Buyer
Inc
9.58%,
06/29/2026
(k)
$
700
$
511
3
Month
USD
LIBOR
+
2.75%
TOTAL
SENIOR
FLOATING
RATE
INTERESTS
$
511
Total
Investments
$
131,
141
Other
Assets
and
Liabilities
- (0.36)%
(473)
TOTAL
NET
ASSETS
-
100.00%
$
130,668
(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
$24,845
or
19.01%
of
net
assets.
(e)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$5,389
or
4.12
%
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)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(h)
Restricted
Security.
Please
see
Restricted
Security
sub-schedule
for
additional
information.
(
i
)
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.
(j)
Security
is
an
Interest
Only
Strip.
(k)
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
19.38%
Utilities
17.87%
Energy
14.47%
Financial
13.41%
Industrial
11.40%
Money
Market
Funds
6.40%
Consumer,
Cyclical
5.90%
Basic
Materials
5.42%
Consumer,
Non-cyclical
4.51%
Communications
0.95%
Investment
Companies
0.3
5
%
Asset
Backed
Securities
0.30%
Other
Assets
and
Liabilities
(0.36
)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
Diversified
Select
Real
Asset
Fund
June
30,
2020
(unaudited)
See
accompanying
notes.
5
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
$
7,98
3
90
6.11%
Ceres
Farmland
Holdings,
LP
(b)
11/01/2019
6,000
6,185
N/A
4.72%
Sound
Point
CLO
Fund,
LP
(c)
08/01/2019
4,000
2,803
60
2.15%
Total
$
16,971
12.98%
The
private
investment
funds
listed
in
the
table
do
not
include
any
unfunded
commitments.
Amounts
in
thousands.
(a)
The
fund
was
established
to
invest
and
reinvest
assets
of
the
investors
through
the
REIT,
primarily
in
interests
(including
ownership
or
leasehold
interests)
in
real
property,
which
is
to
be
planted
with
trees,
or
real
property
on
which
trees
are
growing
(timberland),
trees
growing
on
timberland,
or
trees
which
have
been
cut
but
not
removed
from
the
timberland
(timber);
contracts
or
agreements
for
the
cutting
and/or
use
of
timber
on
timberland.
Timber
investments
are
not
intended
to
produce
immediate
revenues.
Redemptions
are
subject
to
a
two-year
holding
period
from
the
acquisition
date.
(b)
The
fund
is
an
open-ended
investment
fund
whose
objective
is
to
generate
an
attractive
total
return
through
the
acquisition
and
management
of
farmland
in
the
Midwestern
United
States.
Redemptions
are
subject
to
a
one-year
holding
period
from
the
acquisition
date.
After
the
holding
period
has
expired,
redemptions
are
permitted
with
written
redemption
notice
five
months
prior
to
the
annual
redemption
date,
which
is
the
last
day
of
February.
(c)
The
fund
was
organized
for
the
purpose
of
trading
and
investing
in
residual
tranches
and
other
notes
issued
by
and
with
respect
to
collateralized
loan
obligations.
Redemptions
are
subject
to
a
one-year
holding
period
from
the
acquisition
date.
Restricted
Securities
Security
Name
Acquisition
Date
Cost
Value
Percent
of
Net
Assets
Sunnova
Energy
International
Inc
9.75%,
04/30/2025
05/21/2020
$
1,777
$
2,286
1.75%
Targa
Resources
Corp
9.50%,
02/18/2021
11/18/2019
2,150
1,994
1.53%
Total
$
4,280
3.28%
Amounts
in
thousands.
Glossary
to
the
Schedule
of
Investments
June
30,
2020
(unaudited)
See
accompanying
notes.
6
Currency
Abbreviations
USD/$
United
States
Dollar
June
30,
2020
(unaudited)
7
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,
preferred
stocks
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
June
30,
2020
(unaudited)
8
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*
$
—
$
31,845
$
—
$
31,845
Common
Stocks
Basic
Materials
2,957
4,119
—
7,076
Communications
—
88
—
88
Consumer,
Cyclical
—
64
—
64
Consumer,
Non-cyclical
1,610
1,784
—
3,394
Energy
10,690
3,908
—
14,598
Financial
7,641
6,309
—
13,950
Industrial
4,547
1,660
—
6,207
June
30,
2020
(unaudited)
9
*For
additional
detail
regarding
sector
classifications,
please
see
the
Schedule
of
Investments.
Certain
detailed
information
is
provided
for
those
Funds
with
significant
investments
in
Level
3
securities.
Quantitative
information
about
the
significant
unobservable
inputs
used
in
the
fair
value
measurements
categorized
within
Level
3
of
the
fair
value
hierarchy
is
as
follows
(amounts
in
thousands):
The
changes
in
investments
measured
at
fair
value
for
which
Level
3
inputs
have
been
used
to
determine
fair
value
are
as
follows
(amounts
in
thousands):
*Securities
are
transferred
into
Level
3
for
a
variety
of
reasons
including,
but
not
limited
to:
1.
Securities
where
trading
has
been
halted
2.
Securities
that
have
certain
restrictions
on
trading
3.
Instances
in
which
a
security
is
not
priced
by
a
pricing
service
**Securities
are
transferred
out
of
Level
3
for
a
variety
of
reasons
including,
but
not
limited
to:
1.
Securities
where
trading
resumes
2.
Securities
where
trading
restrictions
have
expired
3.
Instances
in
which
a
price
becomes
available
from
a
pricing
service
The
Fund's
Schedule
of
Investments
as
of
June
30,
2020
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
$
9,387
$
13,672
$
—
$
23,059
Convertible
Bonds*
—
—
2,286
2,286
Convertible
Preferred
Stocks
Energy
—
—
1,994
1,994
Investment
Companies
8,824
—
—
8,824
Preferred
Stocks
Utilities
274
—
—
274
Senior
Floating
Rate
Interests*
—
511
—
511
Total
$
45,930
$
63,960
$
4,280
$
114,170
Investments
Using
NAV
as
Practical
Expedient
Private
Investment
Funds
16,
971
Total
investments
in
securities
$
131,
141
Fund
Asset
Type
Fair
Value
as
of
June
30,
2020
Valuation
Technique
Unobservable
Input
Input
Valuations
Diversified
Select
Real
Asset
Fund
Convertible
Bonds
$
2,285
Lattice
model
Debt
discount
rate
23.89%
Preferred
Stocks
1,995
Lattice
model
Debt
discount
rate
9.12%
$
4,280
Fair
Value
March
31,
2020
Realized
Gain/
(Loss)
Accrued
Discounts/
Premiums
and
Change
in
Unrealized
Gain/
(Loss)
Purchases
Proceeds
from
Sales
Transfers
into
Level
3*
Transfers
Out
of
Level
3**
Fair
Value
June
30,
2020
Net
Change
in
Unrealized
Appreciation/
(Depreciation)
on
Investments
Held
at
June
30,
2020
Diversified
Select
Real
Asset
Fund
Convertible
Bonds
$
—
$
—
$
508
$
1,777
$
—
$
—
$
—
$
2,285
$
508
Preferred
Stocks
—
—
747
—
—
1,248
—
1,995
747
Total
$
—
$
—
$
1,255
$
1,777
$
—
$
1,248
$
—
$
4,280
$
1,255