For the second year in a row, Principal Funds received a top Lipper Fund Award for the Principal Global Real Estate Securities Fund (Class I: POSIX). The Fund was named the best global real estate fund, out of 81 funds, over the five-year period for its consistently strong risk-adjusted performance. Principal Real Estate Investors co-portfolio managers Kelly Rush, Simon Hedger, and Anthony Kenkel sub-advise the $1.75 billion 1 fund. The team draws upon six decades of real estate investment experience with a global reach spanning 70 countries. “We are honored to have earned this recognition and believe it reflects the strength of our proprietary research platform. We have a team of experienced professionals actively monitoring securities and collaborating across the globe in real time, pursuing the highest quality fund performance we can provide,” said Kelly Rush, chief investment officer, Global Real Estate Securities. Lipper, a leading global research firm, presented the award at a March 20 ceremony in New York City. The Lipper Fund Awards are part of the Thomson Reuters Awards for Excellence, a global family of awards that celebrates exceptional performance throughout the professional investment community. “This recognition is a testament to the deep and broad real estate experience of Kelly and team and validates the global investment management capabilities of the Principal Financial Group ® ,” said Nora Everett, president and CEO of Principal Funds. “Principal Funds is honored to be recognized for consistent, long-term performance, which validates our shareholder-focused investment philosophy.” Principal Real Estate Investors, one of the largest institutional real estate managers in the United States, is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group. For more information about the Lipper Fund Award rankings and methodology, visit principalfunds.com/lipper. Please see principal.com or call 800-222-5852 for current performance information. For more news and insights from The Principal ®, connect with us on Twitter at http://twitter.com/ThePrincipal. About Principal Funds Principal Funds is a leading provider of mutual funds, with $108.8 billion in assets under management. 2 Principal Funds brings expertise in global investment management, asset allocation, and retirement leadership to financial professionals and investors. Including its target-risk and target-date offerings, Principal Funds is the fifth largest manager of lifecycle funds in the industry. 3 The companies that make up Principal Funds are members of the Principal Financial Group ®. For more information, visit principalfunds.com. About the Principal Financial Group The Principal Financial Group ® (The Principal ®) 4 is a global investment management leader offering retirement services, insurance solutions, and asset management. The Principal offers businesses, individuals, and institutional clients a wide range of financial products and services, including retirement, asset management, and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500 ®, the Principal Financial Group has $483.2 billion in assets under management 5 and serves some 19.4 million customers worldwide from offices in Asia, Australia, Europe, Latin America, and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit principal.com. Investors should carefully consider a mutual fund’s investment objectives, risks, charges and expenses prior to investing. A prospectus, or summary prospectus if available, containing this and other information can be obtained by contacting a financial professional, visiting principal.com, or calling 800-547-7754. Read the prospectus carefully before investing. Past performance is no guarantee of future results. Investing involves risk, including possible loss of principal. Real-estate investment options are subject to some risks inherent in real estate and real-estate investment trusts (REITs), such as risks associated with general and local economic conditions. Investing in REITs involves special risks, including interest rate fluctuation, credit risks and liquidity risks, including interest conditions on real estate values and occupancy rates. International investing involves increased risks due to currency fluctuations, political or social instability and differences in accounting standards.Class I shares are available only to eligible investors, including various institutional investors and investors in certain mutual fund wrap or asset allocation programs. See the prospectus for eligibility requirements.