UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTEREDMANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-01944
Principal Variable Contracts Funds, Inc.
(Exact name of registrant as specified in charter)
801 Grand Avenue, Des Moines, IA | 50309 |
(Address of principal executive offices) | (Zip code) |
Principal Global Investors, LLC, 801 Grand Avenue, Des Moines, IA 50309 (Name and address of agent for service)
Registrant’s telephone number, including area code: | 515-248-0156 | |
Date of fiscal year end: | December 31, 2018 | |
Date of reporting period: | December 31, 2018 |
ITEM 1 – REPORT TO STOCKHOLDERS
Principal Variable Contracts Funds, Inc.
Annual Report
December 31, 2018
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Table of Contents | |
Economic & Financial Market Review | 1 |
Important Account Information | 2 |
Bond Market Index Account (unaudited) | 3 |
Core Plus Bond Account (unaudited) | 4 |
Diversified Balanced Account (unaudited) | 5 |
Diversified Balanced Managed Volatility Account (unaudited) | 6 |
Diversified Balanced Volatility Control Account (unaudited) | 7 |
Diversified Growth Account (unaudited) | 8 |
Diversified Growth Managed Volatility Account (unaudited) | 9 |
Diversified Growth Volatility Control Account (unaudited) | 10 |
Diversified Income Account (unaudited) | 11 |
Diversified International Account (unaudited) | 12 |
Equity Income Account (unaudited) | 13 |
Government & High Quality Bond Account (unaudited) | 14 |
Income Account (unaudited) | 15 |
International Emerging Markets Account (unaudited) | 16 |
LargeCap Growth Account (unaudited) | 17 |
LargeCap Growth Account I (unaudited) | 18 |
LargeCap S&P 500 Index Account (unaudited) | 19 |
LargeCap S&P 500 Managed Volatility Index Account (unaudited) | 20 |
MidCap Account (unaudited) | 21 |
Multi-Asset Income Account (unaudited) | 22 |
Principal Capital Appreciation Account (unaudited) | 23 |
Principal LifeTime 2010 Account (unaudited) | 24 |
Principal LifeTime 2020 Account (unaudited) | 25 |
Principal LifeTime 2030 Account (unaudited) | 26 |
Principal LifeTime 2040 Account (unaudited) | 27 |
Principal LifeTime 2050 Account (unaudited) | 28 |
Principal LifeTime 2060 Account (unaudited) | 29 |
Principal LifeTime Strategic Income Account (unaudited) | 30 |
Real Estate Securities Account (unaudited) | 31 |
SAM Balanced Portfolio (unaudited) | 32 |
SAM Conservative Balanced Portfolio (unaudited) | 33 |
SAM Conservative Growth Portfolio (unaudited) | 34 |
SAM Flexible Income Portfolio (unaudited) | 35 |
SAM Strategic Growth Portfolio (unaudited) | 36 |
Short-Term Income Account (unaudited) | 37 |
SmallCap Account (unaudited) | 38 |
Financial Statements | 39 |
Notes to Financial Statements | 81 |
Schedules of Investments | 106 |
Financial Highlights (Includes performance information) | 254 |
Report of Independent Registered Public Accounting Firm | 286 |
Shareholder Expense Example | 288 |
Supplemental Information | 293 |
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
What a turbulent year. From wild-eyed enthusiasm in January to morose gloom and recession worries in December; and after the post-Christmas stock surge, confidence enough to buy the dip. Financial returns were mainly ugly last year. Most global equity indices had losses for the year and the fourth quarter, double-digit losses in emerging markets and Europe. World bond indices were more mixed for the year, but with a minor retreat in corporate and emerging-market bond returns.
Pessimism about a global economic slowdown mounted through 2018 as data from China and the Eurozone worsened markedly. While worries about a US recession nearly became consensus, the US economy stayed robust with an excellent job market and accelerating wages. The downdraft in the stock market has taken a toll on business sentiment, so capital spending may fade somewhat and pull US growth down to the 2.5% range.
Geopolitical uncertainties plague the Eurozone and growth may only be lackluster in the 1.5% range, give or take, with some downside risk. The Chinese economy will likely continue its gradual, structural growth deceleration. Officials in Beijing are urgently trying to stimulate growth back to target, but with debt already high and pollution severe, the downside risk is significant. Japan’s economy is rebounding from a third-quarter contraction. The strong labor market, rising wages, and robust corporate profits should keep growth in the 1% to 1.5% range. India may be a positive outlier in a slowing world economy; its economy could be a new world growth leader.
For stocks, the downdraft is likely not over yet, although a rally the next few weeks would provide a respite from the bear market and an opportunity to take some risk off the table. We envision a broad index decline of 25% to 30% from the highs of last year before investors reacquaint themselves with the new and tougher monetary environment. But, with no coincident recession, stock markets could rally sharply from mid-2019 into next year.
Yields on long-dated US treasury bonds may rise along with stocks if the equity rally persists into late-January. We’d guess yields of 2.8% to 2.9% would be a good place to extend maturity for the next six months. If sellers extinguish whatever stock market upturn that comes, US treasury bond yields would likely continue to fall with the stock market into mid-2019.
*All data cited, unless otherwise indicated from Bloomberg. Commentary by Bob Baur and the Economic Committee.
1
Important Account Information
The following information applies to all accounts shown in the annual report (unless noted):
The line graphs on the following pages illustrate the growth of a hypothetical $10,000 investment. For each account, the illustration is based on performance of the Class 1 shares, except for Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Balanced Volatility Control Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, Diversified Growth Volatility Control Account, and Diversified Income Account which are based on the performance of the Class 2 shares. The performance of other share classes will differ.
Investment results shown represent historical performance and do not guarantee future results. Your investment’s returns and principal values will fluctuate with changes in interest rates and other market conditions so the value, when redeemed, may be worth more or less than original costs. Performance shown does not account for fees, expenses, and charges of any variable insurance contract or retirement plan. If these fees were reflected, performance would be lower. Current performance may be lower or higher than the performance shown. For more information, including the most recent month-end performance, call your financial professional, or call 800-222-5852.
* Performance assumes reinvestment of all dividends and capital gains. Extended performance is calculated based on the historical performance of the Account’s oldest share class, adjusted for the fees and expenses of the share class shown. Performance does not reflect the impact of federal, state, or municipal taxes. If it did, performance would be lower.
** Performance shown for the benchmark assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index.
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2
Bond Market Index Account
Investment Advisor: Principal Global Investors, LLC
Sub-Advisor: Mellon Investments Corporation
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | Since Inception | Inception Date | ||||
Class 1 Shares | -0.19 | % | 2.23 | % | 1.60 | % | 5/15/12 |
What contributed to or detracted from Fund performance during the fiscal year? |
Under normal circumstances, Bond Market Index Account uses a sampling approach to invest at least 80% of its net assets, plus any borrowings for investment purposes, in investments designed to replicate the Bloomberg Barclays U.S. Aggregate Bond Index (the "Index") at the time of purchase. The Index is composed of investment grade, fixed rate debt issues with maturities of one year or more, including government securities, corporate securities, and asset-backed and mortgage-backed securities (securitized products). Because of the practical difficulties and expense of purchasing all of the securities in the Index, the Account does not purchase all of the securities in the Index. Instead, the Account uses a sampling methodology to purchase securities with generally the same risk and return characteristics of the Index. Under normal circumstances, the Account maintains an average portfolio duration that is in line with the duration of the Index.
The Bloomberg Barclays Aggregate Bond Index was essentially flat for the year, as gains in Treasurys were offset by widening corporate spreads. The intermediate sector of the Index rose on a total return basis. The Treasury sector rose, with intermediate Treasurys rising. The securitized sector climbed on a total return basis, aided by strong returns in ABS, MBS, and CMBS. The Bloomberg Barclays Aggregate Bond Index posted excess returns. The corporate sector fell and underperformed duration-neutral Treasurys. Long corporates fell and underperformed. The securitized sector declined versus duration-neutral Treasurys.
3
Core Plus Bond Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | ||||||||
Extended | ||||||||
Performance | ||||||||
1-Year | 5-Year | 10-Year | Inception Date | Inception Date*** | ||||
Class 1 Shares | -1.41 | % | 2.41 | % | 5.67 | % | 12/18/87 | – |
Class 2 Shares | -1.63 | % | 2.15 | % | 5.40 | % | 5/1/15 | 12/18/87 |
What contributed to or detracted from Fund performance during the fiscal year? |
Under normal circumstances, Core Plus Bond Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in bonds or other debt securities at the time of purchase. The bonds and other debt securities in which the Account invests include intermediate maturity fixed-income securities, which are rated, at the time of purchase, BBB or higher by Standard & Poor's Ratings Services ("S&P") or Baa3 or higher by Moody's Investors Service, Inc. ("Moody's"). The fixed income securities in which the Account invests 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 representing an interest in a pool of mortgage loans or other assets (securitized products); corporate bonds; and securities issued or guaranteed by foreign governments payable in U.S. dollars. The Account also invests in foreign securities, and up to 20% of its assets in below investment grade bonds (sometimes called “high yield bonds” or "junk bonds") which are rated at the time of purchase Ba1 or lower by Moody's and BB+ or lower by S&P (if the bond has been rated by only one of those agencies, that rating will determine whether the bond is below investment grade; if the bond has not been rated by either of those agencies, the Sub-Advisor will determine whether the bond is of a quality comparable to those rated below investment grade). Under normal circumstances, the Account maintains an average portfolio duration that is within ±25% of the duration of the Bloomberg Barclays U.S. Aggregate Bond Index.
Duration positioning, security selection within commercial mortgage-backed securities (CMBS), and security selection within asset-backed securities (ABS) contributed. Underperformance was led by an out-of-index allocation to below investment-grade corporate bonds. Security selection within investment-grade corporate bonds and below investment-grade corporate bonds detracted.
*** 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.
4
Diversified Balanced Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | ||||||||
Extended | ||||||||
Performance | ||||||||
1-Year | 5-Year | Since Inception | Inception Date | Inception Date*** | ||||
Class 1 Shares | -3.14 | % | 4.45 | % | 6.48 | % | 5/1/17 | 12/30/09 |
Class 2 Shares | -3.40 | % | 4.36 | % | 6.42 | % | 12/30/09 | – |
What contributed to or detracted from Fund performance during the fiscal year? |
Diversified Balance Account is an asset allocation investment option that invests in a mix of Principal Index Funds and Principal PVC Index Accounts. The underlying investment options are attempting to replicate the returns of the index, minus the expense ratios. Its target weight to equities is 50% and the portfolio is rebalanced back to target on a monthly basis.
***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.
5
Diversified Balanced Managed Volatility Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | Since Inception | Inception Date | ||||
Class 2 Shares | -3.20 | % | 4.08 | % | 4.30 | % | 10/31/13 |
What contributed to or detracted from Fund performance during the fiscal year? |
Diversified Balanced Managed Volatility Account is an asset allocation investment option that invests in a mix of Principal Index Funds and Principal PVC Index Accounts with an emphasis on managing volatility. The underlying investment options are attempting to replicate the returns of the index, minus the expense ratios. Its target weight to equities is 50% and the portfolio is rebalanced back to target on a monthly basis.
6
Diversified Balanced Volatility Control Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||
1-Year | Since Inception | Inception Date | |||
Class 2 Shares | -3.71 | % | 2.31 | % | 3/30/17 |
What contributed to or detracted from Fund performance during the fiscal year? |
Diversified Balanced Volatility Control Account is an asset allocation investment option that invests in a mix of Principal Index Funds, Principal PVC Index Accounts, and a Principal Volatility Control Overlay Sleeve with an emphasis containing volatility to a specified range. The underlying investment options are attempting to replicate the returns of the index, minus the expense ratios. Its target weight to fixed income is 50%.
7
Diversified Growth Account is an asset allocation investment option that invests in a mix of Principal Index Funds and Principal PVC Index Accounts. The underlying investment options are attempting to replicate the returns of the index, minus the expense ratios. Its target weight to equities is 65% and the portfolio is rebalanced back to target on a monthly basis.
8
Diversified Growth Managed Volatility Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | Since Inception | Inception Date | ||||
Class 2 Shares | -4.07 | % | 4.61 | % | 5.00 | % | 10/31/13 |
What contributed to or detracted from Fund performance during the fiscal year? |
Diversified Growth Managed Volatility Account is an asset allocation investment option that invests in a mix of Principal Index Funds and Principal PVC Index Accounts with an emphasis on managing volatility. The underlying investment options are attempting to replicate the returns of the index, minus the expense ratios. Its target weight to equities is 65% and the portfolio is rebalanced back to target on a monthly basis.
9
Diversified Growth Volatility Control Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||
1-Year | Since Inception | Inception Date | |||
Class 2 Shares | -4.60 | % | 2.63 | % | 3/30/17 |
What contributed to or detracted from Fund performance during the fiscal year? |
Diversified Growth Volatility Control Account is an asset allocation investment option that invests in a mix of Principal Index Funds, Principal PVC Index Accounts, and a Principal Volatility Control Overlay Sleeve with an emphasis containing volatility to a specified range. The underlying investment options are attempting to replicate the returns of the index, minus the expense ratios. Its target weight to fixed income is 35%.
10
Diversified Income Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | Since Inception | Inception Date | ||||
Class 2 Shares | -2.38 | % | 3.72 | % | 4.84 | % | 5/15/12 |
What contributed to or detracted from Fund performance during the fiscal year? |
Diversified Income Account is an asset allocation investment option that invests in a mix of Principal Index Funds and Principal PVC Index Accounts. The underlying investment options are attempting to replicate the returns of the index, minus the expense ratios. Its target weight to equities is 35% and the portfolio is rebalanced back to target on a monthly basis.
11
Diversified International Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | -17.54 | % | 0.60 | % | 6.34 | % | 5/2/94 |
Class 2 Shares | -17.78 | % | 0.34 | % | 6.06 | % | 1/8/07 |
What contributed to or detracted from Fund performance during the fiscal year? |
Diversified International Account invests primarily in foreign equity securities. The Account has no limitation on the percentage of assets that are invested in any one country or denominated in any one currency, but the Account typically invests in foreign securities of at least 30 countries. Primary consideration is given to securities of corporations of developed areas, such as Japan, Western Europe, Canada, Australia, and New Zealand; however, the Account also invests in emerging market securities. The Account invests in equity securities of small, medium, and large market capitalization companies.
Stock selection in France contributed, driven by overweight to Safran SA, a major supplier of aircraft engines and equipment. Stock selection in Germany contributed, led by overweight to Hannover Ruck SE. Stock selection in Australia contributed, led by an overweight position in CSL Limited, the world's largest plasma fractionator, which collects and fractionates human plasma into its component parts, most of which are used in the prevention and treatment of serious medical conditions. Stock selection in Japan detracted, led by overweight to Komatsu, Ltd. Stock selection in the materials sector detracted, led by overweight to China National Building Material Co. Ltd., the largest cement company in the world and one of the two dominant cement conglomerates in China. Stock selection in the UK detracted, led by an overweight to GVC Holdings plc., a global B2C online and retail gaming company created from the mergers of GVC with Ladbrokes Coral.
12
Under normal circumstances, Equity Income Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in dividend-paying equity securities at the time of each purchase. The Account usually invests in equity securities of companies with large market capitalizations. For this Account, companies with large market capitalizations are those with market capitalizations within the range of companies comprising the Russell 1000® Value Index. The Account invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued. The Account also invests in real estate investment trusts and securities of foreign issuers.
Lack of allocation to General Electric contributed as it disappointed with anemic sales growth and concerns for its future growth deepened. Lack of allocation to Philip Morris contributed as the large index constituent lagged. Allocation to Starbucks contributed due to improved comps in China and stronger afternoon business in the United States. Allocation to Cimarex detracted as gas prices remained low and investors were concerned about takeaway capacity from the Permian basin. Lack of allocation to Cisco Systems detracted from relative performance. Allocation to Discover Financial Services detracted due to modestly lower full year net interest margin guidance.
13
Government & High Quality Bond Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | 0.91 | % | 2.08 | % | 3.16 | % | 5/6/93 |
Class 2 Shares | 0.69 | % | 1.82 | % | 2.90 | % | 11/6/01 |
What contributed to or detracted from Fund performance during the fiscal year? |
Under normal circumstances, Government & High Quality Bond Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in securities issued by the U.S. government, its agencies or instrumentalities or securities that are rated, at the time of purchase, AAA by Standard & Poor's Ratings Services ("S&P") or Aaa by Moody's Investors Service, Inc. ("Moody's"), or, if unrated, in the opinion of the Sub-Advisor of comparable quality including but not limited to mortgage securities such as agency and non-agency collateralized mortgage obligations, and other obligations that are secured by mortgages or mortgage-backed securities (securitized products). Under normal circumstances, the Account maintains an average portfolio duration that is within ±25% of the duration of the Bloomberg Barclays Fixed-Rate MBS Index. The Account also invests in mortgage-backed securities that are not issued by the U.S. government, its agencies or instrumentalities or rated AAA by S&P, AAA by Fitch, or Aaa by Moody's, including collateralized mortgage obligations, and in other obligations that are secured by mortgages or mortgage-backed securities.
Out-of-index allocations to agency CMBS, non-agency CMBS. agency CMO, whole loan CMO, and US Treasurys contributed. Underweight to 30-year GNMA, 30-year Freddie Mac (FHLMC), 30-year FNMA, 15-year FNMA, and 15-year FHLMC detracted.
14
Income Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | 0.78 | % | 3.26 | % | 5.84 | % | 5/7/93 |
Class 2 Shares | 0.47 | % | 3.01 | % | 5.58 | % | 11/6/01 |
What contributed to or detracted from Fund performance during the fiscal year? |
Income Account invests primarily in a diversified pool of fixed-income securities including corporate securities, U.S. government securities, and mortgage-backed securities (securitized products) (including collateralized mortgage obligations), up to 35% of which may be in below investment grade bonds (sometimes called “high yield bonds” or "junk bonds") which are rated, at the time of purchase, Ba1 or lower by Moody's Investors Service, Inc. ("Moody's") and BB+ or lower by Standard & Poor's Ratings Services ("S&P") (if the bond has been rated by only one of those agencies, that rating will determine whether the bond is below investment grade; if the bond has not been rated by either of those agencies, the Sub-Advisor will determine whether the bond is of a quality comparable to those rated below investment grade). Under normal circumstances, the Account maintains an average portfolio duration that is within ±25% of the duration of the Bloomberg Barclays U.S. Aggregate Bond Index. The Account also invests in foreign securities.
Issue selection in the electric utilities, insurance, consumer non-cyclical, energy, and basic industry sectors contributed. Underweight and issue selection in US Treasurys detracted. Overweight to the energy sector, consumer non-cyclical sector, and insurance sectors detracted. Issue selection in the agency fixed-rate sector detracted.
15
International Emerging Markets Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | ||||||||
Extended | ||||||||
Performance | ||||||||
1-Year | 5-Year | 10-Year | Inception Date | Inception Date*** | ||||
Class 1 Shares | -21.02 | % | 0.19 | % | 6.65 | % | 10/24/00 | – |
Class 2 Shares | -21.29 | % | -0.06 | % | 6.39 | % | 5/1/15 | 10/24/00 |
What contributed to or detracted from Fund performance during the fiscal year? |
Under normal circumstances, International Emerging Markets Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of emerging market companies at the time of each purchase. TheAccount invests in equity securities of small, medium, and large market capitalization companies.
Regional performance was disparate with gains in Latin America. Poland, Turkey, and Peru were the top relative performing countries. Outperformance in Peru was attributable to stock selection in the financials sector and Mexico gained due to consumer staples exposure and avoiding the materials and communication services sector. Brazil had a small gain with notable outperformance in the financials sector. EMEA was slightly negative and Asia drove the overall losses. China, South Korea, and India were the largest detractors. Losses in Russia, South Africa, and no exposure to Qatar detracted. Stock selection in the consumer discretionary and consumer staples sectors in China and stock selection in the information technology sector in South Korea were responsible for most of the underperformance. Losses in India stemmed from stock selection in the financials sector.
*** 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.
16
Under normal circumstances, LargeCap Growth Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with large market capitalizations at the time of each purchase. For this Account, companies with large market capitalizations are those with market capitalizations within the range of companies comprising the Russell 1000® Growth Index. The Account invests in growth equity securities; growth orientation emphasizes buying equity securities of companies whose potential for growth of capital and earnings is expected to be above average.
Allocation to Netflix contributed based on strong subscriber growth in the United States and international markets, resulting from compelling programming and expansion within existing and new regions. Allocation to Intuitive Surgical Inc. contributed as it launched several product innovations, entered new geographies that are expected to expand the company's available opportunity, and its instrumentation business had strong robotic procedure growth and strong utilization levels within general surgery. Allocation to ServiceNow, a leading provider of cloud-based software, contributed due to the secular trend away from direct ownership to subscription models for information technology (IT) help desk software, and having success in adjacent areas, such as IT operations management and human resources. Allocation to XPO Logistics detracted. An out-of-index allocation to Knight-Swift Transportation, detracted due to driver shortages, labor cost pressures, and subpar utilization levels at its Swift Transportation business.Allocation to GrubHubs detracted as a result of feared bottom-line impacts from the company’s ongoing growth spending to enter and further penetrate new markets.
17
Under normal circumstances, LargeCap GrowthAccount I 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 each purchase. For this Account, companies with large market capitalizations are those with market capitalizations within the range of companies comprising the Russell 1000® Growth Index. The Account invests in growth equity securities; growth orientation emphasizes buying equity securities of companies whose potential for growth of capital and earnings is expected to be above average.
Stock selection in the healthcare and information technology sectors aided performance. Overweight to consumer discretionary and healthcare contributed to returns. Underweight to consumer staples, materials, and energy aided performance. Stock selection in financials and communication services hindered performance. Stock selection in utilities detracted. Underweight to information technology was not beneficial.
***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.
18
LargeCap S&P 500 Index Account was in line with the S&P 500 index. It uses an indexing strategy and does not attempt to manage market volatility, use defensive strategies or reduce the effect of any long-term periods of negative stock market performance. Three of the 11 economic sectors posted positive returns with the healthcare and utility sectors providing the largest positive returns. HCA Healthcare, O'Reilly Automotive, and Boston Scientific contributed.
***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 ofDecember 31, 2018 | |||||||
1-Year | 5-Year | Since Inception | Inception Date | ||||
Class 1 Shares | -3.73 | % | 7.43 | % | 8.17 | % | 10/31/13 |
What contributed to or detracted from Fund performance during the fiscal year? |
LargeCap S&P 500 Managed Volatility IndexAccount employs a passive indexing strategy designed to attempt to track market performance. In addition, the investment option employs an active volatility management strategy which seeks to produce gains regardless of market direction and mitigate volatility.
20
Under normal circumstances, MidCap Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with medium market capitalizations at the time of each purchase. For this Account, companies with medium market capitalizations are those with market capitalizations within the range of companies comprising the Russell Midcap® Index. The Account invests in foreign securities.
Allocation to O'Reilly, a leading auto parts aftermarket retailer, contributed.Allocation to TransDigm, a supplier of an extensive collection of airplane components led by a highly respected management team, contributed due to strong demand in its aftermarket business. Allocation to Autodesk, the market leader in computer-aided design, with significant architectural and manufacturing end markets, contributed due to continued progress in converting legacy customers to subscriptions.Allocation to VeriSign, which is responsible for connecting internet users to all .COM and .NET websites, contributed. Allocation to Ross Stores, the second largest off-price retailer in the United States, contributed. Allocation to Mohawk, the largest manufacturer of flooring products, detracted due to temporary headwinds such as cost inflation.Allocation to Colfax, an industrial company providing gas and fluid handling equipment as well as welding-related products, detracted partially due to weakness in some of its end markets outside the US. Allocation to Dentsply Sirona, a global dental solutions provider focused on developing and commercializing dental supplies and equipment around the world, detracted in part due to its continued work on fully integrating what had previously been two separate businesses (Dentsply and Sirona). Allocation to Liberty Global, a large cable and broadband company with operations primarily in Europe, detracted due to concerns about future growth opportunities in Europe. Allocation to Brookfield Asset Management, an owner and operator of real asset-based businesses around the world, detracted.
***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.
21
Multi-Asset Income Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||
1-Year | Since Inception | Inception Date | |||
Class 1 Shares | -5.63 | % | 3.06 | % | 7/28/15 |
Class 2 Shares | -5.93 | % | 2.81 | % | 7/28/15 |
What contributed to or detracted from Fund performance during the fiscal year? |
Multi-Asset Income Account is a fund of funds and invests in Institutional Class shares of Principal Funds, Inc. ("PFI"). In pursuing its investment objective, the Account's underlying funds consist of domestic and foreign equity funds, fixed-income funds, and other funds that aim to offer diversification beyond traditional equity and fixed income securities.
From an asset allocation perspective, underweight to equities contributed to total returns as macro-driven headwinds triggered a sudden and severe selloff within risk assets. From an income perspective, the largest contributors were the High Yield Fund, the Global Diversified Income Fund, and the Preferred Securities Fund. Security selection within the Global Diversified Income Fund contributed as the strategy outperformed its index. The relative performance of the International Fund I detracted from total returns as the non-US equity strategy underperformed index. Overweight to emerging markets, specifically China, weighed on performance. Underweight to public real estate debt detracted as the commercial mortgage-backed securities (CMBS) market outpaced both non-US equities and core fixed income securities.
22
Principal Capital Appreciation Account invests primarily in equity securities of companies with any market capitalization, but has a greater exposure to large market capitalization companies than small or medium market capitalization companies. The Account invests in equity securities with value and/or growth characteristics and constructs an investment portfolio that has a "blend" of equity securities with these characteristics. Investing in value equity securities is an investment strategy that emphasizes buying equity securities that appear to be undervalued. The growth orientation selection emphasizes buying equity securities of companies whose potential for growth of capital and earnings is expected to be above average. The Account does not have a policy of preferring one of these categories over the other.
Allocation to Church & Dwight Co., Inc. contributed, driven by better-than-expected organic sales growth, profitability, and lower taxes. Allocation to Doctor Pepper Snapple contributed following the announcement of a merger with Keurig Green Mountain. Allocation to Microsoft contributed as its cloud and non-cloud computing businesses both showed strength. Allocation to Cimarex detracted as gas prices remained low and investors were concerned about takeaway capacity from the Permian basin. Allocation to Ameriprise Financial, Inc. detracted due to the decline in asset markets and concerns about the company's long-term care contracts. Allocation to Thor Industries detracted as investors remained concerned about elevated inventory levels at dealers, gross margin pressure, and higher labor and materials costs.
23
Principal LifeTime 2010 Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | -3.87 | % | 3.15 | % | 7.65 | % | 8/30/04 |
What contributed to or detracted from Fund performance during the fiscal year? |
Principal LifeTime 2010 Account operates as a “target date fund” that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year in the Account’s name. The Account's asset allocation will become more conservative over time as investment goals near (for example, retirement, which is assumed to begin at age 65) and investors become more risk-averse. The Account is a fund of funds and invests in Principal Funds, Inc. ("PFI") Institutional Class shares and Principal Variable Contracts Funds, Inc. ("PVC") Class 1 shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.
The largest contributor to one-year returns was underlying investment option performance in US equities. Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap and SmallCap Growth I as all outperformed their given benchmarks. Similar to the quarter, an overweight to real assets was a positive for performance as the asset class performed relatively well against US and international equities. A slight underweight to US mid-cap equities benefitted the later dated vintages throughout the year. As with the quarter, manager performance in the developed international and emerging markets sleeves was the single largest detractor as all the underlying investment options underperformed their benchmarks in the international equity sleeves. Core Plus Bond detracted from performance as the investment option lagged its benchmark. Like the quarter, the inclusion of Global Multi-Strategy hindered performance, as the core fixed income asset class provided better opportunities throughout the year. MidCap Value III detracted as it underperformed its benchmark by a relatively wide margin.
24
Principal LifeTime 2020 Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | ||||||||
Extended | ||||||||
Performance | ||||||||
1-Year | 5-Year | 10-Year | Inception Date | Inception Date*** | ||||
Class 1 Shares | -5.40 | % | 3.77 | % | 8.79 | % | 8/30/04 | – |
Class 2 Shares | -5.68 | % | 3.49 | % | 8.53 | % | 5/1/15 | 8/30/04 |
What contributed to or detracted from Fund performance during the fiscal year? |
Principal LifeTime 2020 Account operates as a “target date fund” that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year in the Account’s name. The Account's asset allocation will become more conservative over time as investment goals near (for example, retirement, which is assumed to begin at age 65) and investors become more risk-averse. The Account is a fund of funds and invests in Principal Funds, Inc. ("PFI") Institutional Class shares and Principal Variable Contracts Funds, Inc. ("PVC") Class 1 shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.
The largest contributor to one-year returns was underlying investment option performance in US equities. Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap and SmallCap Growth I as all outperformed their given benchmarks. Similar to the quarter, an overweight to real assets was a positive for performance as the asset class performed relatively well against US and international equities. A slight underweight to US mid-cap equities benefitted the later dated vintages throughout the year. As with the quarter, manager performance in the developed international and emerging markets sleeves was the single largest detractor as all the underlying investment options underperformed their benchmarks in the international equity sleeves. Core Plus Bond detracted from performance as the investment option lagged its benchmark. Like the quarter, the inclusion of Global Multi-Strategy hindered performance, as the core fixed income asset class provided better opportunities throughout the year. MidCap Value III detracted as it underperformed its benchmark by a relatively wide margin.
***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
25
Principal LifeTime 2030 Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | ||||||||
Extended | ||||||||
Performance | ||||||||
1-Year | 5-Year | 10-Year | Inception Date | Inception Date*** | ||||
Class 1 Shares | -7.06 | % | 4.07 | % | 9.28 | % | 8/30/04 | – |
Class 2 Shares | -7.33 | % | 3.80 | % | 9.01 | % | 5/1/15 | 8/30/04 |
What contributed to or detracted from Fund performance during the fiscal year? |
Principal LifeTime 2030 Account operates as a “target date fund” that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year in the Account’s name. The Account's asset allocation will become more conservative over time as investment goals near (for example, retirement, which is assumed to begin at age 65) and investors become more risk-averse. The Account is a fund of funds and invests in Principal Funds, Inc. ("PFI") Institutional Class shares and Principal Variable Contracts Funds, Inc. ("PVC") Class 1 shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.
The largest contributor to one-year returns was underlying investment option performance in US equities. Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap and SmallCap Growth I as all outperformed their given benchmarks. Similar to the quarter, an overweight to real assets was a positive for performance as the asset class performed relatively well against US and international equities. A slight underweight to US mid-cap equities benefitted the later dated vintages throughout the year. As with the quarter, manager performance in the developed international and emerging markets sleeves was the single largest detractor as all the underlying investment options underperformed their benchmarks in the international equity sleeves. Core Plus Bond detracted from performance as the investment option lagged its benchmark. Like the quarter, the inclusion of Global Multi-Strategy hindered performance, as the core fixed income asset class provided better opportunities throughout the year. MidCap Value III detracted as it underperformed its benchmark by a relatively wide margin.
***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.
26
Principal LifeTime 2040 Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | ||||||||
Extended | ||||||||
Performance | ||||||||
1-Year | 5-Year | 10-Year | Inception Date | Inception Date*** | ||||
Class 1 Shares | -7.85 | % | 4.31 | % | 9.87 | % | 8/30/04 | – |
Class 2 Shares | -8.12 | % | 4.04 | % | 9.60 | % | 5/1/15 | 8/30/04 |
What contributed to or detracted from Fund performance during the fiscal year? |
Principal LifeTime 2040 Account operates as a “target date fund” that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year in the Account’s name. The Account's asset allocation will become more conservative over time as investment goals near (for example, retirement, which is assumed to begin at age 65) and investors become more risk-averse. The Account is a fund of funds and invests in Principal Funds, Inc. ("PFI") Institutional Class shares and Principal Variable Contracts Funds, Inc. ("PVC") Class 1 shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.
The largest contributor to one-year returns was underlying investment option performance in US equities. Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap and SmallCap Growth I as all outperformed their given benchmarks. Similar to the quarter, an overweight to real assets was a positive for performance as the asset class performed relatively well against US and international equities. A slight underweight to US mid-cap equities benefitted the later dated vintages throughout the year. As with the quarter, manager performance in the developed international and emerging markets sleeves was the single largest detractor as all the underlying investment options underperformed their benchmarks in the international equity sleeves. Core Plus Bond detracted from performance as the investment option lagged its benchmark. Like the quarter, the inclusion of Global Multi-Strategy hindered performance, as the core fixed income asset class provided better opportunities throughout the year. MidCap Value III detracted as it underperformed its benchmark by a relatively wide margin.
***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.
27
Principal LifeTime 2050 Account operates as a “target date fund” that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year in the Account’s name. The Account's asset allocation will become more conservative over time as investment goals near (for example, retirement, which is assumed to begin at age 65) and investors become more risk-averse. The Account is a fund of funds and invests in Principal Funds, Inc. ("PFI") Institutional Class shares and Principal Variable Contracts Funds, Inc. ("PVC") Class 1 shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.
The largest contributor to one-year returns was underlying investment option performance in US equities. Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap and SmallCap Growth I as all outperformed their given benchmarks. Similar to the quarter, an overweight to real assets was a positive for performance as the asset class performed relatively well against US and international equities. A slight underweight to US mid-cap equities benefitted the later dated vintages throughout the year. As with the quarter, manager performance in the developed international and emerging markets sleeves was the single largest detractor as all the underlying investment options underperformed their benchmarks in the international equity sleeves. Core Plus Bond detracted from performance as the investment option lagged its benchmark. Like the quarter, the inclusion of Global Multi-Strategy hindered performance, as the core fixed income asset class provided better opportunities throughout the year. MidCap Value III detracted as it underperformed its benchmark by a relatively wide margin.
***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.
28
Principal LifeTime 2060 Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | Since Inception | Inception Date | ||||
Class 1 Shares | -9.25 | % | 4.26 | % | 6.46 | % | 5/1/13 |
What contributed to or detracted from Fund performance during the fiscal year? |
Principal LifeTime 2060 Account operates as a “target date fund” that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year in the Account’s name. The Account's asset allocation will become more conservative over time as investment goals near (for example, retirement, which is assumed to begin at age 65) and investors become more risk-averse. The Account is a fund of funds and invests in Principal Funds, Inc. ("PFI") Institutional Class shares and Principal Variable Contracts Funds, Inc. ("PVC") Class 1 shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.
The largest contributor to one-year returns was underlying investment option performance in US equities. Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap and SmallCap Growth I as all outperformed their given benchmarks. Similar to the quarter, an overweight to real assets was a positive for performance as the asset class performed relatively well against US and international equities. A slight underweight to US mid-cap equities benefitted the later dated vintages throughout the year. As with the quarter, manager performance in the developed international and emerging markets sleeves was the single largest detractor as all the underlying investment options underperformed their benchmarks in the international equity sleeves. Core Plus Bond detracted from performance as the investment option lagged its benchmark. Like the quarter, the inclusion of Global Multi-Strategy hindered performance, as the core fixed income asset class provided better opportunities throughout the year. MidCap Value III detracted as it underperformed its benchmark by a relatively wide margin.
29
Principal LifeTime Strategic Income Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | -3.00 | % | 2.74 | % | 6.10 | % | 8/30/04 |
What contributed to or detracted from Fund performance during the fiscal year? |
Principal LifeTime Strategic Income Account invests according to an asset allocation strategy designed for investors primarily seeking current income and secondarily capital appreciation. The Account's asset allocation is designed for investors who are approximately 15 years beyond the normal retirement age of 65. The Account is a fund of funds that invests in Principal Funds, Inc. ("PFI") Institutional Class shares and Principal Variable Contracts, Inc. ("PVC") Class 1 shares. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities.
The largest contributor to one-year returns was underlying investment option performance in US equities. Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap and SmallCap Growth I as all outperformed their given benchmarks. Similar to the quarter, an overweight to real assets was a positive for performance as the asset class performed relatively well against US and international equities. A slight underweight to US mid-cap equities benefitted the later dated vintages throughout the year. As with the quarter, manager performance in the developed international and emerging markets sleeves was the single largest detractor as all the underlying investment options underperformed their benchmarks in the international equity sleeves. Core Plus Bond detracted from performance as the investment option lagged its benchmark. Like the quarter, the inclusion of Global Multi-Strategy hindered performance, as the core fixed income asset class provided better opportunities throughout the year. MidCap Value III detracted as it underperformed its benchmark by a relatively wide margin.
30
Under normal circumstances, Real Estate Securities Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies principally engaged in the real estate industry at the time of each 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. Real estate companies include real estate investment trusts ("REITs") and companies with substantial real estate holdings such as paper, lumber, hotel and entertainment companies as well as those whose products and services relate to the real estate industry include building supply manufacturers, mortgage lenders and mortgage servicing companies. The Account invests in equity securities of small, medium, and large market capitalization companies.
Sector allocations helped drive outperformance. Selection US office and an underweight to the group was a contributor. Underweight to and stock selection in retail contributed as negative sentiment weighed the sector. Overweight to towers, which was supported by secular growth, and residential, which was supported by defensive trading, contributed. Overweight to STORE Capital Corporation contributed. Underweight to Colony Capital Inc, one of the worst performing index stocks, contributed. Overweight to Welltower, Inc. contributed as senior housing property performed better-than-feared. Underweight to special purpose property owners detracted as the group fared better with the rotation into defensives. Selection in single family rentals and hotels was a drag on relative results. Overweight to Equinix, Inc. detracted due to disappointment over deceleration in growth of stabilized data centers. An out-of-index allocation to Hilton Grand Vacations, Inc. detracted as it lagged REITs. Underweight to Realty Income Corporation detracted.
31
Strategic Asset Management (SAM) Portfolios invest wholly in the shares of the underlying funds.
Security selection in large-cap equities was the largest contributor. Security selection in investment-grade corporate bonds aided performance. Security selection in international developed market value equities contributed. Security selection in international developed and emerging market equities was the largest detractor. Strategic allocation to international emerging market equities, which underperformed their US counterparts, hindered performance. Strategic underweight to large-cap growth equities, which outperformed their value counterparts, detracted.
32
SAM Conservative Balanced Portfolio
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | -3.49 | % | 3.81 | % | 7.56 | % | 4/23/98 |
Class 2 Shares | -3.75 | % | 3.55 | % | 7.29 | % | 11/6/01 |
What contributed to or detracted from Fund performance during the fiscal year? |
Strategic Asset Management (SAM) Portfolios invest wholly in the shares of the underlying funds.
Security selection in investment-grade corporate bonds was the largest contributor to performance. Security selection in large-cap equities aided performance. Security selection in international developed market value equities contributed to performance. Strategic allocation to international emerging market equities, which underperformed their US counterparts, was the largest detractor. Strategic underweight to large-cap growth equities, which outperformed their value counterparts, hindered performance. Security selection in international emerging market equities detracted.
33
Strategic Asset Management (SAM) Portfolios invest wholly in the shares of the underlying funds.
Security selection in large-cap equities was the largest positive contributor. Security selection in international developed market value equities aided performance. Security selection in investment-grade corporate bonds contributed. Strategic allocation to international emerging market equities, which underperformed their US counterparts, was the largest detractor. Security selection in international developed and emerging market equities hindered performance. Strategic underweight to large-cap growth equities, which outperformed their value counterparts, detracted.
34
SAM Flexible Income Portfolio
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | -1.97 | % | 3.55 | % | 6.88 | % | 9/9/97 |
Class 2 Shares | -2.20 | % | 3.29 | % | 6.61 | % | 11/6/01 |
What contributed to or detracted from Fund performance during the fiscal year? |
Strategic Asset Management (SAM) Portfolios invest wholly in the shares of the underlying funds.
Security selection in investment-grade corporate bonds was the largest contributor to performance. Security selection in large-cap value equities aided performance. Security selection in real estate investment trusts (REITs) contributed. Strategic allocation to high yield bonds, which underperformed core fixed income bonds, was the largest detractor. Strategic and tactical underweight to government bonds, which outperformed core fixed income bonds, hindered performance. Strategic underweight to large-cap growth equities, which outperformed their value counterparts, detracted.
35
Strategic Asset Management (SAM) Portfolios invest wholly in the shares of the underlying funds.
Security selection in large-cap equities was the largest contributor. Security selection in international developed market value equities aided performance. Security selection in small-cap value equities contributed. Strategic allocation to international emerging market equities, which underperformed their US counterparts, was the largest detractor. Security selection in international developed and emerging market equities hindered performance. Strategic underweight to large-cap growth equities, which outperformed their value counterparts, detracted.
36
Short-Term Income Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | 1.02 | % | 1.59 | % | 2.93 | % | 1/12/94 |
Class 2 Shares | 1.23 | % | 1.32 | % | 2.73 | % | 11/6/01 |
What contributed to or detracted from Fund performance during the fiscal year? |
Short-Term IncomeAccount 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 Standard & Poor's Ratings Services or Baa3 or higher by Moody's Investors Service, Inc. or, if unrated, in the opinion of the Sub-Advisor of comparable quality. Under normal circumstances, the Account maintains an effective maturity of five years or less and an average portfolio duration that is within ±15% of the duration of the Bloomberg Barclays Credit 1-3 Year Index. The Account's investments also include corporate securities, U.S. and foreign government securities, mortgage-backed and asset backed securities (securitized products), and real estate investment trust ("REIT") securities. The Account invests in securities denominated in foreign currencies and in securities of foreign issuers.
Out-of-index allocation to agency commercial mortgage-backed securities (CMBS), auto-backed, other ABS, and student loan sectors contributed. Overweight to the consumer cyclical sector contributed. Issue selection in the banking sector, owned no-guarantee, energy, consumer non-cyclical sector, and consumer cyclical sectors detracted.
37
Holdings in consumer services, industrials, and software companies were key contributors. In consumer services, a subset of the consumers discretionary sector, fitness facilities and casino and gaming companies performed well, reflecting a continued trend of consumer preferences for experiential consumption. In the industrials sector, human resources companies performed well amid a strong labor market. In software, a subset of the IT sector, holdings broadly performed well, with notable strength in companies focused on security and automation. The five individual stocks contributing most were Planet Fitness, Carvana, Encompass Health, Agree Realty, and Aspen Technology. Holdings in financials, technology hardware and equipment, and homebuilders were key detractors. In the financials sector, commercial banks and investment banking/advisory firms were weak. In technology hardware and equipment, a subset of the IT sector, holdings faced an unusually strong combination of headwinds amid investor concerns about tariff exposure, potential economic deceleration, and end-market exposure to Apple and Facebook. In homebuilders, a subset of the consumer discretionary sector holdings were weak amid rising interest rates and signs of deceleration in the US housing market. The five individual stocks that detracted most were GMS, Taylor Morrison Home, Visteon, Univar, and SYNNEX.
***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.
38
Statements of Assets and Liabilities | ||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||
December 31, 2018 | ||||||||||
Bond Market Index | Core Plus Bond | Diversified Balanced | ||||||||
Amounts in thousands, except per share amounts | Account | Account | Account | |||||||
Investment in securities--at cost | $ | 2,254,105 | $ | 310,864 | $ | 7 | ||||
Investment in affiliated securities--at cost | $ | 120,512 | $ | 3,894 | $ | 848,114 | ||||
Assets | ||||||||||
Investment in securities--at value | $ | 2,217,838 | $ | 301,182 | $ | 4 | ||||
Investment in affiliated securities--at value | 120,512 | 3,894 | 1,005,468 | |||||||
Cash | – | 14 | – | |||||||
Deposits with counterparty | – | 9 | – | |||||||
Receivables: | ||||||||||
Dividends and interest | 13,420 | 2,153 | – | |||||||
Expense reimbursement from Manager | 196 | – | – | |||||||
Fund shares sold | 806 | 110 | 98 | |||||||
Investment securities sold | 72,579 | 498 | 3,876 | |||||||
Variation margin on futures | – | 45 | – | |||||||
Total Assets | 2,425,351 | 307,905 | 1,009,446 | |||||||
Liabilities | ||||||||||
Accrued management and investment advisory fees | 490 | 110 | 43 | |||||||
Accrued distribution fees | – | – | 209 | |||||||
Accrued directors' expenses | 9 | 1 | 4 | |||||||
Accrued other expenses | 16 | 9 | 4 | |||||||
Cash overdraft | 655 | – | – | |||||||
Deposits from counterparty | 610 | – | – | |||||||
Payables: | ||||||||||
Dividends and interest on securities sold short | 15 | – | – | |||||||
Fund shares redeemed | 8,438 | 3,073 | 3,974 | |||||||
Investment securities purchased | 190,382 | 23,156 | – | |||||||
Short sales(proceeds received$11,331, $0and$0) | 11,381 | – | – | |||||||
Unrealized loss on unfunded loan commitments | – | 1 | – | |||||||
Variation margin on futures | – | 21 | – | |||||||
Variation margin on swaps | – | 14 | – | |||||||
Total Liabilities | 211,996 | 26,385 | 4,234 | |||||||
Net Assets Applicable to Outstanding Shares | $ | 2,213,355 | $ | 281,520 | $ | 1,005,212 | ||||
Net Assets Consist of: | ||||||||||
Capital shares and additional paid-in-capital | $ | 2,221,130 | $ | 288,552 | $ | 786,858 | ||||
Total distributable earnings (loss) | (7,775 | ) | (7,032 | ) | 218,354 | |||||
Total Net Assets | $ | 2,213,355 | $ | 281,520 | $ | 1,005,212 | ||||
Capital Stock (par value: $.01 per share): | ||||||||||
Shares authorized | 300,000 | 400,000 | 350,000 | |||||||
Net Asset Value Per Share: | ||||||||||
Class 1: Net Assets | $ | 2,213,355 | $ | 280,760 | $ | 36,763 | ||||
Shares issued and outstanding | 218,141 | 25,984 | 2,473 | |||||||
Net Asset Value per share | $ | 10.15 | $ | 10.81 | $ | 14.87 | ||||
Class 2: Net Assets | N/A | $ | 760 | $ | 968,449 | |||||
Shares issued and outstanding | 71 | 65,063 | ||||||||
Net Asset Value per share | $ | 10.73 | $ | 14.88 |
See accompanying notes.
39
Statements of Assets and Liabilities | |||||||||||
Principal Variable Contracts Funds, Inc. | |||||||||||
December 31, 2018 | |||||||||||
Diversified Balanced | Diversified Balanced | ||||||||||
Managed Volatility | Volatility Control | Diversified Growth | |||||||||
Amounts in thousands, except per share amounts | Account | Account | Account | ||||||||
Investment in affiliated securities--at cost | $ | 157,915 | $ | 56,913 | $ | 2,965,369 | |||||
Assets | |||||||||||
Investment in affiliated securities--at value | $ | 162,212 | $ | 53,850 | $ | 3,489,236 | |||||
Cash | – | 13,239 | – | ||||||||
Deposits with counterparty | – | 42 | – | ||||||||
Receivables: | |||||||||||
Investment securities sold | 556 | 466 | 9,277 | ||||||||
Total Assets | 162,768 | 67,597 | 3,498,513 | ||||||||
Liabilities | |||||||||||
Accrued management and investment advisory fees | 7 | 7 | 151 | ||||||||
Accrued distribution fees | 35 | 14 | 754 | ||||||||
Accrued directors' expenses | 1 | – | 15 | ||||||||
Accrued other expenses | 3 | 3 | 4 | ||||||||
Deposits from counterparty | – | – | – | ||||||||
Payables: | |||||||||||
Fund shares redeemed | 556 | 583 | 9,277 | ||||||||
Variation margin on futures | – | 7 | – | ||||||||
Total Liabilities | 602 | 614 | 10,201 | ||||||||
Net Assets Applicable to Outstanding Shares | $ | 162,166 | $ | 66,983 | $ | 3,488,312 | |||||
Net Assets Consist of: | |||||||||||
Capital shares and additional paid-in-capital | $ | 152,560 | $ | 68,539 | $ | 2,767,326 | |||||
Total distributable earnings (loss) | 9,606 | (1,556 | ) | 720,986 | |||||||
Total Net Assets | $ | 162,166 | $ | 66,983 | $ | 3,488,312 | |||||
Capital Stock (par value: $.01 per share): | |||||||||||
Shares authorized | 200,000 | 200,000 | 300,000 | ||||||||
Net Asset Value Per Share: | |||||||||||
Class 2: Net Assets | $ | 162,166 | $ | 66,983 | $ | 3,488,312 | |||||
Shares issued and outstanding | 14,297 | 6,494 | 214,081 | ||||||||
Net Asset Value per share | $ | 11.34 | $ | 10.31 | $ | 16.29 |
See accompanying notes.
40
Statements of Assets and Liabilities | |||||||||||
Principal Variable Contracts Funds, Inc. | |||||||||||
December 31, 2018 | |||||||||||
Diversified Growth | Diversified Growth | ||||||||||
Managed Volatility | Volatility Control | Diversified Income | |||||||||
Amounts in thousands, except per share amounts | Account | Account | Account | ||||||||
Investment in affiliated securities--at cost | $ | 313,782 | $ | 334,900 | $ | 228,631 | |||||
Assets | |||||||||||
Investment in affiliated securities--at value | $ | 325,317 | $ | 310,931 | $ | 241,397 | |||||
Cash | – | 72,784 | – | ||||||||
Deposits with counterparty | – | 1,308 | – | ||||||||
Receivables: | |||||||||||
Fund shares sold | 2,267 | 78 | – | ||||||||
Investment securities sold | – | – | 4,129 | ||||||||
Total Assets | 327,584 | 385,101 | 245,526 | ||||||||
Liabilities | |||||||||||
Accrued management and investment advisory fees | 14 | 39 | 10 | ||||||||
Accrued distribution fees | 70 | 80 | 52 | ||||||||
Accrued directors' expenses | 1 | 2 | 1 | ||||||||
Accrued other expenses | 3 | 3 | 3 | ||||||||
Deposits from counterparty | – | – | – | ||||||||
Payables: | |||||||||||
Fund shares redeemed | 81 | – | 4,129 | ||||||||
Investment securities purchased | 2,187 | 62 | – | ||||||||
Variation margin on futures | – | 209 | – | ||||||||
Total Liabilities | 2,356 | 395 | 4,195 | ||||||||
Net Assets Applicable to Outstanding Shares | $ | 325,228 | $ | 384,706 | $ | 241,331 | |||||
Net Assets Consist of: | |||||||||||
Capital shares and additional paid-in-capital | $ | 303,110 | $ | 398,441 | $ | 218,528 | |||||
Total distributable earnings (loss) | 22,118 | (13,735 | ) | 22,803 | |||||||
Total Net Assets | $ | 325,228 | $ | 384,706 | $ | 241,331 | |||||
Capital Stock (par value: $.01 per share): | |||||||||||
Shares authorized | 200,000 | 200,000 | 50,000 | ||||||||
Net Asset Value Per Share: | |||||||||||
Class 2: Net Assets | $ | 325,228 | $ | 384,706 | $ | 241,331 | |||||
Shares issued and outstanding | 28,015 | 37,113 | 19,374 | ||||||||
Net Asset Value per share | $ | 11.61 | $ | 10.37 | $ | 12.46 |
See accompanying notes.
41
Statements of Assets and Liabilities | ||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||
December 31, 2018 | ||||||||||
Diversified | Government & High | |||||||||
Amounts in thousands, except per share amounts | International Account | Equity Income Account | Quality Bond Account | |||||||
Investment in securities--at cost | $ | 228,713 | $ | 469,909 | $ | 228,942 | ||||
Investment in affiliated securities--at cost | $ | 1,664 | $ | 8,817 | $ | 1,278 | ||||
Foreign currency--at cost | $ | 136 | $ | 1 | $ | – | ||||
Assets | ||||||||||
Investment in securities--at value | $ | 232,755 | $ | 649,647 | $ | 221,810 | ||||
Investment in affiliated securities--at value | 1,664 | 8,817 | 1,278 | |||||||
Foreign currency--at value | 129 | 1 | – | |||||||
Receivables: | ||||||||||
Dividends and interest | 881 | 2,031 | 976 | |||||||
Fund shares sold | 371 | 1,769 | 96 | |||||||
Investment securities sold | 674 | 1,604 | – | |||||||
Total Assets | 236,474 | 663,869 | 224,160 | |||||||
Liabilities | ||||||||||
Accrued management and investment advisory fees | 172 | 273 | 95 | |||||||
Accrued distribution fees | – | 6 | 1 | |||||||
Accrued custodian fees | 30 | – | – | |||||||
Accrued directors' expenses | 1 | 3 | 1 | |||||||
Accrued other expenses | 7 | 44 | 4 | |||||||
Deposits from counterparty | – | – | – | |||||||
Payables: | ||||||||||
Fund shares redeemed | 57 | 298 | 1,820 | |||||||
Investment securities purchased | 575 | 1,861 | – | |||||||
Total Liabilities | 842 | 2,485 | 1,921 | |||||||
Net Assets Applicable to Outstanding Shares | $ | 235,632 | $ | 661,384 | $ | 222,239 | ||||
Net Assets Consist of: | ||||||||||
Capital shares and additional paid-in-capital | $ | 216,479 | $ | 445,352 | $ | 231,816 | ||||
Total distributable earnings (loss) | 19,153 | 216,032 | (9,577 | ) | ||||||
Total Net Assets | $ | 235,632 | $ | 661,384 | $ | 222,239 | ||||
Capital Stock (par value: $.01 per share): | ||||||||||
Shares authorized | 300,000 | 200,000 | 200,000 | |||||||
Net Asset Value Per Share: | ||||||||||
Class 1: Net Assets | $ | 233,612 | $ | 636,177 | $ | 219,612 | ||||
Shares issued and outstanding | 17,031 | 27,829 | 23,188 | |||||||
Net Asset Value per share | $ | 13.72 | $ | 22.86 | $ | 9.47 | ||||
Class 2: Net Assets | $ | 2,020 | $ | 25,207 | $ | 2,627 | ||||
Shares issued and outstanding | 146 | 1,112 | 278 | |||||||
Net Asset Value per share | $ | 13.81 | $ | 22.66 | $ | 9.46 |
See accompanying notes.
42
Statements of Assets and Liabilities | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
December 31, 2018 | ||||||||||||
International Emerging | LargeCap Growth | |||||||||||
Amounts in thousands, except per share amounts | Income Account | Markets Account | Account | |||||||||
Investment in securities--at cost | $ | 176,788 | $ | 80,378 | $ | 90,794 | ||||||
Investment in affiliated securities--at cost | $ | 1,795 | $ | 2,711 | $ | 2,326 | ||||||
Foreign currency--at cost | $ | – | $ | 2 | $ | – | ||||||
Assets | ||||||||||||
Investment in securities--at value | $ | 179,127 | $ | 82,040 | $ | 97,684 | ||||||
Investment in affiliated securities--at value | 1,795 | 2,711 | 2,326 | |||||||||
Foreign currency--at value | – | 2 | – | |||||||||
Receivables: | ||||||||||||
Dividends and interest | 1,565 | 185 | 32 | |||||||||
Expense reimbursement from Manager | – | 10 | – | |||||||||
Fund shares sold | 27 | 45 | 164 | |||||||||
Investment securities sold | – | 69 | 165 | |||||||||
Total Assets | 182,514 | 85,062 | 100,371 | |||||||||
Liabilities | ||||||||||||
Accrued management and investment advisory fees | 78 | 91 | 59 | |||||||||
Accrued distribution fees | 1 | – | 1 | |||||||||
Accrued custodian fees | – | 22 | – | |||||||||
Accrued directors' expenses | 1 | – | 1 | |||||||||
Accrued other expenses | 4 | – | 3 | |||||||||
Cash overdraft | 39 | – | – | |||||||||
Deposits from counterparty | – | – | – | |||||||||
Payables: | ||||||||||||
Fund shares redeemed | 620 | 4 | 17 | |||||||||
Investment securities purchased | – | 47 | – | |||||||||
Total Liabilities | 743 | 164 | 81 | |||||||||
Net Assets Applicable to Outstanding Shares | $ | 181,771 | $ | 84,898 | $ | 100,290 | ||||||
Net Assets Consist of: | ||||||||||||
Capital shares and additional paid-in-capital | $ | 172,824 | $ | 80,823 | $ | 74,720 | ||||||
Total distributable earnings (loss) | 8,947 | 4,075 | 25,570 | |||||||||
Total Net Assets | $ | 181,771 | $ | 84,898 | $ | 100,290 | ||||||
Capital Stock (par value: $.01 per share): | ||||||||||||
Shares authorized | 200,000 | 200,000 | 300,000 | |||||||||
Net Asset Value Per Share: | ||||||||||||
Class 1: Net Assets | $ | 178,598 | $ | 83,366 | $ | 98,106 | ||||||
Shares issued and outstanding | 17,851 | 5,515 | 3,472 | |||||||||
Net Asset Value per share | $ | 10.01 | $ | 15.12 | $ | 28.25 | ||||||
Class 2: Net Assets | $ | 3,173 | $ | 1,532 | $ | 2,184 | ||||||
Shares issued and outstanding | 319 | 102 | 78 | |||||||||
Net Asset Value per share | $ | 9.96 | $ | 14.99 | $ | 28.06 |
See accompanying notes.
43
Statements of Assets and Liabilities | |||||||||||
Principal Variable Contracts Funds, Inc. | |||||||||||
December 31, 2018 | |||||||||||
LargeCap S&P 500 | |||||||||||
LargeCap Growth | LargeCap S&P 500 | Managed Volatility | |||||||||
Amounts in thousands, except per share amounts | Account I | Index Account | Index Account | ||||||||
Investment in securities--at cost | $ | 215,944 | $ | 1,633,581 | $ | 158,738 | |||||
Investment in affiliated securities--at cost | $ | 6,401 | $ | 56,593 | $ | 16,994 | |||||
Assets | |||||||||||
Investment in securities--at value | $ | 292,341 | $ | 2,333,132 | $ | 188,855 | |||||
Investment in affiliated securities--at value | 6,372 | 56,593 | 16,994 | ||||||||
Cash | 11 | 13 | 1 | ||||||||
Deposits with counterparty | 12 | – | – | ||||||||
Receivables: | |||||||||||
Dividends and interest | 543 | 2,728 | 242 | ||||||||
Expense reimbursement from Manager | 4 | – | – | ||||||||
Fund shares sold | 139 | 336 | 984 | ||||||||
Investment securities sold | 161 | 1,454 | 116 | ||||||||
Variation margin on futures | 4 | 435 | 45 | ||||||||
Total Assets | 299,587 | 2,394,691 | 207,237 | ||||||||
Liabilities | |||||||||||
Accrued management and investment advisory fees | 194 | 508 | 78 | ||||||||
Accrued distribution fees | 1 | 1 | – | ||||||||
Accrued directors' expenses | 2 | 10 | 1 | ||||||||
Accrued other expenses | 8 | 18 | 7 | ||||||||
Deposits from counterparty | – | – | – | ||||||||
Payables: | |||||||||||
Fund shares redeemed | 84 | 6,660 | 195 | ||||||||
Investment securities purchased | – | 2,325 | 186 | ||||||||
Options and swaptions contracts written (premiums received $0, $0 and $1,556) | – | – | 1,115 | ||||||||
Total Liabilities | 289 | 9,522 | 1,582 | ||||||||
Net Assets Applicable to Outstanding Shares | $ | 299,298 | $ | 2,385,169 | $ | 205,655 | |||||
Net Assets Consist of: | |||||||||||
Capital shares and additional paid-in-capital | $ | 189,089 | $ | 1,536,696 | $ | 174,033 | |||||
Total distributable earnings (loss) | 110,209 | 848,473 | 31,622 | ||||||||
Total Net Assets | $ | 299,298 | $ | 2,385,169 | $ | 205,655 | |||||
Capital Stock (par value: $.01 per share): | |||||||||||
Shares authorized | 200,000 | 300,000 | 100,000 | ||||||||
Net Asset Value Per Share: | |||||||||||
Class 1: Net Assets | $ | 296,139 | $ | 2,378,088 | $ | 205,655 | |||||
Shares issued and outstanding | 9,838 | 145,130 | 16,145 | ||||||||
Net Asset Value per share | $ | 30.10 | $ | 16.39 | $ | 12.74 | |||||
Class 2: Net Assets | $ | 3,159 | $ | 7,081 | N/A | ||||||
Shares issued and outstanding | 106 | 436 | |||||||||
Net Asset Value per share | $ | 29.84 | $ | 16.24 |
See accompanying notes.
44
Statements of Assets and Liabilities | |||||||||||
Principal Variable Contracts Funds, Inc. | |||||||||||
December 31, 2018 | |||||||||||
Multi-Asset Income | Principal Capital | ||||||||||
Amounts in thousands, except per share amounts and Multi-Asset Income Account | MidCap Account | Account | Appreciation Account | ||||||||
Investment in securities--at cost | $ | 388,556 | $ | – | $ | 92,430 | |||||
Investment in affiliated securities--at cost | $ | 4,942 | $ | 414,512 | $ | 2,989 | |||||
Assets | |||||||||||
Investment in securities--at value | $ | 487,713 | $ | – | $ | 133,358 | |||||
Investment in affiliated securities--at value | 4,942 | 385,964 | 2,989 | ||||||||
Cash | 249 | – | – | ||||||||
Receivables: | |||||||||||
Dividends and interest | 284 | – | 195 | ||||||||
Expense reimbursement from Manager | – | 890 | – | ||||||||
Fund shares sold | 1,092 | – | 914 | ||||||||
Investment securities sold | 2,053 | 55 | – | ||||||||
Prepaid directors’ expenses | – | 4 | – | ||||||||
Prepaid expenses | – | 7 | – | ||||||||
Total Assets | 496,333 | 386,920 | 137,456 | ||||||||
Liabilities | |||||||||||
Accrued management and investment advisory fees | 235 | 10 | 74 | ||||||||
Accrued distribution fees | 3 | 12 | 2 | ||||||||
Accrued directors' expenses | 2 | – | 1 | ||||||||
Accrued professional fees | – | 3,236 | – | ||||||||
Accrued other expenses | 5 | – | 4 | ||||||||
Deposits from counterparty | – | – | – | ||||||||
Payables: | |||||||||||
Fund shares redeemed | 33 | 54 | 71 | ||||||||
Investment securities purchased | 5,980 | – | – | ||||||||
Total Liabilities | 6,258 | 3,312 | 152 | ||||||||
Net Assets Applicable to Outstanding Shares | $ | 490,075 | $ | 383,608 | $ | 137,304 | |||||
Net Assets Consist of: | |||||||||||
Capital shares and additional paid-in-capital | $ | 309,197 | $ | 394,465 | $ | 81,489 | |||||
Total distributable earnings (loss) | 180,878 | (10,857 | ) | 55,815 | |||||||
Total Net Assets | $ | 490,075 | $ | 383,608 | $ | 137,304 | |||||
Capital Stock (par value: $.01 per share): | |||||||||||
Shares authorized | 105,000 | 200,000,000 | 200,000 | ||||||||
Net Asset Value Per Share: | |||||||||||
Class 1: Net Assets | $ | 474,365 | $ | 329,373 | $ | 128,547 | |||||
Shares issued and outstanding | 9,774 | 31,986 | 4,970 | ||||||||
Net Asset Value per share | $ | 48.53 | $ | 10.30 | $ | 25.86 | |||||
Class 2: Net Assets | $ | 15,710 | $ | 54,235 | $ | 8,757 | |||||
Shares issued and outstanding | 326 | 5,312 | 342 | ||||||||
Net Asset Value per share | $ | 48.19 | $ | 10.21 | $ | 25.58 |
See accompanying notes.
45
Statements of Assets and Liabilities | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
December 31, 2018 | ||||||||||||
Principal LifeTime 2010 | Principal LifeTime 2020 | Principal LifeTime 2030 | ||||||||||
Amounts in thousands, except per share amounts | Account | Account | Account | |||||||||
Investment in affiliated securities--at cost | $ | 32,262 | $ | 176,227 | $ | 147,586 | ||||||
Assets | ||||||||||||
Investment in affiliated securities--at value | $ | 31,893 | $ | 173,490 | $ | 142,420 | ||||||
Receivables: | ||||||||||||
Fund shares sold | 35 | 2 | 85 | |||||||||
Investment securities sold | – | 159 | 114 | |||||||||
Total Assets | 31,928 | 173,651 | 142,619 | |||||||||
Liabilities | ||||||||||||
Accrued directors' expenses | – | 1 | 1 | |||||||||
Accrued professional fees | 3 | – | – | |||||||||
Accrued other expenses | – | 3 | 3 | |||||||||
Deposits from counterparty | – | – | – | |||||||||
Payables: | ||||||||||||
Fund shares redeemed | 30 | 161 | 200 | |||||||||
Investment securities purchased | 5 | – | – | |||||||||
Total Liabilities | 38 | 165 | 204 | |||||||||
Net Assets Applicable to Outstanding Shares | $ | 31,890 | $ | 173,486 | $ | 142,415 | ||||||
Net Assets Consist of: | ||||||||||||
Capital shares and additional paid-in-capital | $ | 29,692 | $ | 163,908 | $ | 135,750 | ||||||
Total distributable earnings (loss) | 2,198 | 9,578 | 6,665 | |||||||||
Total Net Assets | $ | 31,890 | $ | 173,486 | $ | 142,415 | ||||||
Capital Stock (par value: $.01 per share): | ||||||||||||
Shares authorized | 100,000 | 200,000 | 200,000 | |||||||||
Net Asset Value Per Share: | ||||||||||||
Class 1: Net Assets | $ | 31,890 | $ | 172,173 | $ | 140,617 | ||||||
Shares issued and outstanding | 2,618 | 13,665 | 12,140 | |||||||||
Net Asset Value per share | $ | 12.18 | $ | 12.60 | $ | 11.58 | ||||||
Class 2: Net Assets | N/A $ | 1,313 | $ | 1,798 | ||||||||
Shares issued and outstanding | 105 | 157 | ||||||||||
Net Asset Value per share | $ | 12.49 | $ | 11.47 |
See accompanying notes.
46
Statements of Assets and Liabilities | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
December 31, 2018 | ||||||||||||
Principal LifeTime 2040 | Principal LifeTime 2050 | Principal LifeTime 2060 | ||||||||||
Amounts in thousands, except per share amounts | Account | Account | Account | |||||||||
Investment in affiliated securities--at cost | $ | 66,544 | $ | 32,659 | $ | 5,095 | ||||||
Assets | ||||||||||||
Investment in affiliated securities--at value | $ | 63,402 | $ | 31,284 | $ | 4,653 | ||||||
Receivables: | ||||||||||||
Fund shares sold | 368 | 37 | 9 | |||||||||
Total Assets | 63,770 | 31,321 | 4,662 | |||||||||
Liabilities | ||||||||||||
Accrued professional fees | – | 3 | 4 | |||||||||
Accrued other expenses | 4 | – | – | |||||||||
Deposits from counterparty | – | – | – | |||||||||
Payables: | ||||||||||||
Fund shares redeemed | 1 | 3 | – | |||||||||
Investment securities purchased | 367 | 35 | 9 | |||||||||
Total Liabilities | 372 | 41 | 13 | |||||||||
Net Assets Applicable to Outstanding Shares | $ | 63,398 | $ | 31,280 | $ | 4,649 | ||||||
Net Assets Consist of: | ||||||||||||
Capital shares and additional paid-in-capital | $ | 61,247 | $ | 29,842 | $ | 4,645 | ||||||
Total distributable earnings (loss) | 2,151 | 1,438 | 4 | |||||||||
Total Net Assets | $ | 63,398 | $ | 31,280 | $ | 4,649 | ||||||
Capital Stock (par value: $.01 per share): | ||||||||||||
Shares authorized | 200,000 | 200,000 | 100,000 | |||||||||
Net Asset Value Per Share: | ||||||||||||
Class 1: Net Assets | $ | 62,741 | $ | 30,354 | $ | 4,649 | ||||||
Shares issued and outstanding | 4,500 | 2,270 | 377 | |||||||||
Net Asset Value per share | $ | 13.94 | $ | 13.37 | $ | 12.32 | ||||||
Class 2: Net Assets | $ | 657 | $ | 926 | N/A | |||||||
Shares issued and outstanding | 47 | 70 | ||||||||||
Net Asset Value per share | $ | 13.83 | $ | 13.27 |
See accompanying notes.
47
Statements of Assets and Liabilities | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
December 31, 2018 | ||||||||||||
Principal LifeTime | ||||||||||||
Strategic Income | Real Estate Securities | SAM Balanced | ||||||||||
Amounts in thousands, except per share amounts | Account | Account | Portfolio | |||||||||
Investment in securities--at cost | $ | – | $ | 119,750 | $ | – | ||||||
Investment in affiliated securities--at cost | $ | 20,960 | $ | 911 | $ | 620,442 | ||||||
Assets | ||||||||||||
Investment in securities--at value | $ | – | $ | 135,519 | $ | – | ||||||
Investment in affiliated securities--at value | 20,666 | 911 | 664,593 | |||||||||
Receivables: | ||||||||||||
Dividends and interest | – | 601 | 944 | |||||||||
Expense reimbursement from Manager | – | – | 3 | |||||||||
Fund shares sold | 4 | 26 | 66 | |||||||||
Investment securities sold | 33 | 84 | 1,364 | |||||||||
Total Assets | 20,703 | 137,141 | 666,970 | |||||||||
Liabilities | ||||||||||||
Accrued management and investment advisory fees | – | 108 | 133 | |||||||||
Accrued distribution fees | – | 1 | 23 | |||||||||
Accrued directors' expenses | – | – | 3 | |||||||||
Accrued professional fees | 3 | – | – | |||||||||
Accrued other expenses | – | 4 | 3 | |||||||||
Deposits from counterparty | – | – | – | |||||||||
Payables: | ||||||||||||
Fund shares redeemed | 36 | 82 | 1,430 | |||||||||
Investment securities purchased | – | 24 | 165 | |||||||||
Total Liabilities | 39 | 219 | 1,757 | |||||||||
Net Assets Applicable to Outstanding Shares | $ | 20,664 | $ | 136,922 | $ | 665,213 | ||||||
Net Assets Consist of: | ||||||||||||
Capital shares and additional paid-in-capital | $ | 19,385 | $ | 108,009 | $ | 581,979 | ||||||
Total distributable earnings (loss) | 1,279 | 28,913 | 83,234 | |||||||||
Total Net Assets | $ | 20,664 | $ | 136,922 | $ | 665,213 | ||||||
Capital Stock (par value: $.01 per share): | ||||||||||||
Shares authorized | 100,000 | 300,000 | 300,000 | |||||||||
Net Asset Value Per Share: | ||||||||||||
Class 1: Net Assets | $ | 20,664 | $ | 133,429 | $ | 561,162 | ||||||
Shares issued and outstanding | 1,829 | 7,471 | 40,365 | |||||||||
Net Asset Value per share | $ | 11.30 | $ | 17.86 | $ | 13.90 | ||||||
Class 2: Net Assets | N/A $ | 3,493 | $ | 104,051 | ||||||||
Shares issued and outstanding | 195 | 7,573 | ||||||||||
Net Asset Value per share | $ | 17.92 | $ | 13.74 |
See accompanying notes.
48
Statements of Assets and Liabilities | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
December 31, 2018 | ||||||||||||
SAM Conservative | SAM Conservative | SAM Flexible Income | ||||||||||
Amounts in thousands, except per share amounts | Balanced Portfolio | Growth Portfolio | Portfolio | |||||||||
Investment in affiliated securities--at cost | $ | 169,317 | $ | 297,435 | $ | 179,412 | ||||||
Assets | ||||||||||||
Investment in affiliated securities--at value | $ | 174,647 | $ | 307,664 | $ | 182,558 | ||||||
Receivables: | ||||||||||||
Dividends and interest | 207 | 421 | 255 | |||||||||
Expense reimbursement from Manager | 3 | – | – | |||||||||
Fund shares sold | 4 | 681 | 5 | |||||||||
Investment securities sold | 197 | – | 223 | |||||||||
Total Assets | 175,058 | 308,766 | 183,041 | |||||||||
Liabilities | ||||||||||||
Accrued management and investment advisory fees | 35 | 62 | 36 | |||||||||
Accrued distribution fees | 5 | 26 | 6 | |||||||||
Accrued directors' expenses | 1 | 1 | 1 | |||||||||
Accrued other expenses | 3 | 3 | 3 | |||||||||
Deposits from counterparty | – | – | – | |||||||||
Payables: | ||||||||||||
Fund shares redeemed | 201 | 143 | 228 | |||||||||
Investment securities purchased | 67 | 570 | 92 | |||||||||
Total Liabilities | 312 | 805 | 366 | |||||||||
Net Assets Applicable to Outstanding Shares | $ | 174,746 | $ | 307,961 | $ | 182,675 | ||||||
Net Assets Consist of: | ||||||||||||
Capital shares and additional paid-in-capital | $ | 162,548 | $ | 277,503 | $ | 170,220 | ||||||
Total distributable earnings (loss) | 12,198 | 30,458 | 12,455 | |||||||||
Total Net Assets | $ | 174,746 | $ | 307,961 | $ | 182,675 | ||||||
Capital Stock (par value: $.01 per share): | ||||||||||||
Shares authorized | 200,000 | 200,000 | 200,000 | |||||||||
Net Asset Value Per Share: | ||||||||||||
Class 1: Net Assets | $ | 154,297 | $ | 189,654 | $ | 157,019 | ||||||
Shares issued and outstanding | 13,969 | 11,049 | 13,242 | |||||||||
Net Asset Value per share | $ | 11.05 | $ | 17.16 | $ | 11.86 | ||||||
Class 2: Net Assets | $ | 20,449 | $ | 118,307 | $ | 25,656 | ||||||
Shares issued and outstanding | 1,875 | 6,993 | 2,185 | |||||||||
Net Asset Value per share | $ | 10.91 | $ | 16.92 | $ | 11.74 |
See accompanying notes.
49
Statements of Assets and Liabilities | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
December 31, 2018 | ||||||||||||
SAM Strategic Growth | Short-Term Income | |||||||||||
Amounts in thousands, except per share amounts | Portfolio | Account | SmallCap Account | |||||||||
Investment in securities--at cost | $ | – | $ | 152,106 | $ | 170,938 | ||||||
Investment in affiliated securities--at cost | $ | 260,184 | $ | 4,856 | $ | 1,443 | ||||||
Assets | ||||||||||||
Investment in securities--at value | $ | – | $ | 150,924 | $ | 165,274 | ||||||
Investment in affiliated securities--at value | 254,815 | 4,856 | 1,443 | |||||||||
Receivables: | ||||||||||||
Dividends and interest | 425 | 786 | 253 | |||||||||
Expense reimbursement from Manager | – | 1 | – | |||||||||
Fund shares sold | 47 | 89 | 1,337 | |||||||||
Investment securities sold | – | 38 | – | |||||||||
Total Assets | 255,287 | 156,694 | 168,307 | |||||||||
Liabilities | ||||||||||||
Accrued management and investment advisory fees | 51 | 66 | 123 | |||||||||
Accrued distribution fees | 25 | 1 | 1 | |||||||||
Accrued directors' expenses | 1 | – | 1 | |||||||||
Accrued other expenses | 3 | 5 | 4 | |||||||||
Cash overdraft | – | 5 | – | |||||||||
Deposits from counterparty | – | – | – | |||||||||
Payables: | ||||||||||||
Fund shares redeemed | 43 | 3,459 | 7 | |||||||||
Investment securities purchased | 15 | – | 54 | |||||||||
Total Liabilities | 138 | 3,536 | 190 | |||||||||
Net Assets Applicable to Outstanding Shares | $ | 255,149 | $ | 153,158 | $ | 168,117 | ||||||
Net Assets Consist of: | ||||||||||||
Capital shares and additional paid-in-capital | $ | 242,388 | $ | 151,985 | $ | 144,544 | ||||||
Total distributable earnings (loss) | 12,761 | 1,173 | 23,573 | |||||||||
Total Net Assets | $ | 255,149 | $ | 153,158 | $ | 168,117 | ||||||
Capital Stock (par value: $.01 per share): | ||||||||||||
Shares authorized | 200,000 | 400,000 | 200,000 | |||||||||
Net Asset Value Per Share: | ||||||||||||
Class 1: Net Assets | $ | 140,247 | $ | 149,075 | $ | 163,243 | ||||||
Shares issued and outstanding | 7,641 | 59,206 | 11,419 | |||||||||
Net Asset Value per share | $ | 18.36 | $ | 2.52 | $ | 14.30 | ||||||
Class 2: Net Assets | $ | 114,902 | $ | 4,083 | $ | 4,874 | ||||||
Shares issued and outstanding | 6,342 | 1,628 | 342 | |||||||||
Net Asset Value per share | $ | 18.11 | $ | 2.51 | $ | 14.24 |
See accompanying notes.
50
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
Bond Market Index | Core Plus Bond | Diversified | |||||||
Amounts in thousands | Account | Account | Balanced Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 2,952 | $ | 184 | $ | 22,122 | |||
Dividends | 1 | 8 | – | ||||||
Withholding tax | – | (1 | ) | – | |||||
Interest | 61,570 | 10,555 | – | ||||||
Total Income | 64,523 | 10,746 | 22,122 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 6,031 | 1,301 | 556 | ||||||
Distribution fees -Class 2 | N/A | 2 | 2,677 | ||||||
Chief compliance officer fees | 3 | – | 1 | ||||||
Custodian fees | 53 | 25 | – | ||||||
Directors' expenses | 47 | 8 | 24 | ||||||
Professional fees | 4 | 5 | 4 | ||||||
Other expenses | – | – | 1 | ||||||
Total Gross Expenses | 6,138 | 1,341 | 3,263 | ||||||
Less: Reimbursement from Manager | 2,413 | – | – | ||||||
Total Net Expenses | 3,725 | 1,341 | 3,263 | ||||||
Net Investment Income (Loss) | 60,798 | 9,405 | 18,859 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments, Futures, Short sales and | |||||||||
Swap agreements | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | (20,786 | ) | (3,944 | ) | 22 | ||||
Investment transactions in affiliated securities | – | – | 22,246 | ||||||
Futures contracts | – | 83 | – | ||||||
Capital gain distribution received from affiliated securities | – | – | 20,158 | ||||||
Short sales | (19 | ) | – | – | |||||
Swap agreements | – | (219 | ) | – | |||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (48,344 | ) | (10,085 | ) | (6 | ) | |||
Investments in affiliated securities | – | – | (96,238 | ) | |||||
Futures contracts | – | 238 | – | ||||||
Short sales | (50 | ) | – | – | |||||
Swap agreements | – | 207 | – | ||||||
Net Realized and Unrealized Gain (Loss) on Investments, Futures, Short sales and Swap | |||||||||
agreements | (69,199 | ) | (13,720 | ) | (53,818 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (8,401 | ) | $ | (4,315 | ) | $ | (34,959 | ) |
See accompanying notes.
51
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
Diversified | Diversified | ||||||||
Balanced Managed | Balanced Volatility | Diversified Growth | |||||||
Amounts in thousands | Volatility Account | Control Account | Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 3,316 | $ | 1,045 | $ | 76,433 | |||
Dividends | – | 157 | – | ||||||
Interest | – | 11 | – | ||||||
Total Income | 3,316 | 1,213 | 76,433 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 88 | 64 | 1,923 | ||||||
Distribution fees -Class 2 | 438 | 133 | 9,615 | ||||||
Chief compliance officer fees | – | – | 5 | ||||||
Custodian fees | – | 1 | – | ||||||
Directors' expenses | 5 | 3 | 73 | ||||||
Professional fees | 3 | 3 | 3 | ||||||
Other expenses | – | – | 3 | ||||||
Total Expenses | 534 | 204 | 11,622 | ||||||
Net Investment Income (Loss) | 2,782 | 1,009 | 64,811 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments and Futures | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | – | (246 | ) | – | |||||
Investment transactions in affiliated securities | 1,308 | (1 | ) | 42,700 | |||||
Futures contracts | – | (3 | ) | – | |||||
Capital gain distribution received from affiliated securities | 1,239 | 796 | 90,447 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | – | (478 | ) | – | |||||
Investments in affiliated securities | (10,559 | ) | (3,367 | ) | (358,524 | ) | |||
Futures contracts | – | (48 | ) | – | |||||
Net Realized and Unrealized Gain (Loss) on Investments and Futures | (8,012 | ) | (3,347 | ) | (225,377 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (5,230 | ) | $ | (2,338 | ) | $ | (160,566 | ) |
See accompanying notes.
52
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
Diversified Growth | Diversified Growth | ||||||||
Managed Volatility | Volatility Control | Diversified Income | |||||||
Amounts in thousands | Account | Account | Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 6,424 | $ | 5,820 | $ | 5,157 | |||
Dividends | – | 809 | – | ||||||
Interest | – | 73 | – | ||||||
Total Income | 6,424 | 6,702 | 5,157 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 175 | 345 | 127 | ||||||
Distribution fees -Class 2 | 874 | 718 | 636 | ||||||
Custodian fees | – | 1 | – | ||||||
Directors' expenses | 9 | 8 | 7 | ||||||
Professional fees | 3 | 3 | 3 | ||||||
Other expenses | – | 1 | – | ||||||
Total Expenses | 1,061 | 1,076 | 773 | ||||||
Net Investment Income (Loss) | 5,363 | 5,626 | 4,384 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments and Futures | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | – | (5 | ) | – | |||||
Investment transactions in affiliated securities | 2,127 | 45 | 2,356 | ||||||
Futures contracts | – | (315 | ) | – | |||||
Capital gain distribution received from affiliated securities | 3,140 | 6,374 | 3,384 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | – | (2,231 | ) | – | |||||
Investments in affiliated securities | (24,370 | ) | (26,541 | ) | (15,995 | ) | |||
Futures contracts | – | (1,487 | ) | – | |||||
Net Realized and Unrealized Gain (Loss) on Investments and Futures | (19,103 | ) | (24,160 | ) | (10,255 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (13,740 | ) | $ | (18,534 | ) | $ | (5,871 | ) |
See accompanying notes.
53
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
Diversified | Government & | ||||||||
International | Equity Income | High Quality Bond | |||||||
Amounts in thousands | Account | Account | Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 57 | $ | 133 | $ | 40 | |||
Dividends | 8,702 | 18,658 | – | ||||||
Withholding tax | (817 | ) | (373 | ) | – | ||||
Interest | – | 1 | 6,752 | ||||||
Total Income | 7,942 | 18,419 | 6,792 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 2,383 | 2,990 | 1,158 | ||||||
Distribution fees -Class 2 | 5 | 67 | 6 | ||||||
Chief compliance officer fees | – | 1 | – | ||||||
Custodian fees | 126 | 13 | 5 | ||||||
Directors' expenses | 7 | 14 | 7 | ||||||
Professional fees | 39 | 8 | 4 | ||||||
Other expenses | 1 | 1 | – | ||||||
Total Expenses | 2,561 | 3,094 | 1,180 | ||||||
Net Investment Income (Loss) | 5,381 | 15,325 | 5,612 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign currencies | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 13,004 | 26,702 | (4,919 | ) | |||||
Foreign currency transactions | (261 | ) | – | – | |||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (68,964 | ) | (78,310 | ) | 1,170 | ||||
Translation of assets and liabilities in foreign currencies | (27 | ) | – | – | |||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign currencies | (56,248 | ) | (51,608 | ) | (3,749 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (50,867 | ) | $ | (36,283 | ) | $ | 1,863 |
See accompanying notes.
54
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
International | |||||||||
Emerging Markets | LargeCap Growth | ||||||||
Amounts in thousands | Income Account | Account | Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 76 | $ | 34 | $ | 32 | |||
Dividends | – | 2,795 | 860 | ||||||
Withholding tax | – | (316 | ) | – | |||||
Interest | 8,014 | – | – | ||||||
Total Income | 8,090 | 2,513 | 892 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 1,002 | 1,307 | 824 | ||||||
Distribution fees -Class 2 | 8 | 4 | 5 | ||||||
Custodian fees | 3 | 83 | 2 | ||||||
Directors' expenses | 6 | 4 | 4 | ||||||
Professional fees | 5 | 39 | 4 | ||||||
Total Gross Expenses | 1,024 | 1,437 | 839 | ||||||
Less: Reimbursement from Manager - Class 1 | – | 22 | – | ||||||
Total Net Expenses | 1,024 | 1,415 | 839 | ||||||
Net Investment Income (Loss) | 7,066 | 1,098 | 53 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign currencies | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 3,115 | 2,405 | 18,641 | ||||||
Foreign currency transactions | – | (297 | ) | – | |||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (9,259 | ) | (26,211 | ) | (25,599 | ) | |||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign currencies | (6,144 | ) | (24,103 | ) | (6,958 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 922 | $ | (23,005 | ) | $ | (6,905 | ) |
See accompanying notes.
55
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
LargeCap S&P 500 | |||||||||
LargeCap Growth | LargeCap S&P 500 | Managed Volatility | |||||||
Amounts in thousands | Account I | Index Account | Index Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 122 | $ | 872 | $ | 233 | |||
Dividends | 2,557 | 55,083 | 4,364 | ||||||
Withholding tax | (9 | ) | – | – | |||||
Interest | 4 | 26 | 1 | ||||||
Total Income | 2,674 | 55,981 | 4,598 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 2,436 | 6,379 | 986 | ||||||
Distribution fees -Class 2 | 5 | 14 | N/A | ||||||
Chief compliance officer fees | – | 3 | – | ||||||
Custodian fees | 20 | 13 | 15 | ||||||
Directors' expenses | 8 | 50 | 6 | ||||||
Professional fees | 5 | 5 | 5 | ||||||
Other expenses | – | 33 | 3 | ||||||
Total Gross Expenses | 2,474 | 6,497 | 1,015 | ||||||
Less: Reimbursement from Manager | 53 | – | – | ||||||
Total Net Expenses | 2,421 | 6,497 | 1,015 | ||||||
Net Investment Income (Loss) | 253 | 49,484 | 3,583 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments, Futures and Options and | |||||||||
Swaptions | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 38,873 | 135,329 | 13,942 | ||||||
Futures contracts | 185 | (827 | ) | (214 | ) | ||||
Options and swaptions | – | – | (2,443 | ) | |||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (27,288 | ) | (276,820 | ) | (21,070 | ) | |||
Investments in affiliated securities | (29 | ) | – | – | |||||
Futures contracts | (70 | ) | (1,470 | ) | (171 | ) | |||
Options and swaptions | – | – | 251 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments, Futures and Options and | |||||||||
Swaptions | 11,671 | (143,788 | ) | (9,705 | ) | ||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 11,924 | $ | (94,304 | ) | $ | (6,122 | ) |
See accompanying notes.
56
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
Principal Capital | |||||||||
Multi-Asset Income | Appreciation | ||||||||
Amounts in thousands, except Multi-Asset Income Account | MidCap Account | Account | Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 31 | $ | 15,993 | $ | 44 | |||
Dividends | 4,856 | – | 3,339 | ||||||
Withholding tax | (148 | ) | – | (2 | ) | ||||
Total Income | 4,739 | 15,993 | 3,381 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 3,058 | 101 | 980 | ||||||
Distributionfees - Class 2 | 44 | 100 | 23 | ||||||
Chief compliance officer fees | 1 | – | – | ||||||
Custodian fees | 7 | – | 3 | ||||||
Directors' expenses | 13 | 2,211 | 5 | ||||||
Professional fees | 5 | 3,649 | 5 | ||||||
Other expenses | 1 | – | – | ||||||
Total Gross Expenses | 3,129 | 6,061 | 1,016 | ||||||
Less: Reimbursement from Manager - Class 1 | – | 5,014 | – | ||||||
Less: Reimbursement from Manager - Class 2 | – | 678 | – | ||||||
Total Net Expenses | 3,129 | 369 | 1,016 | ||||||
Net Investment Income (Loss) | 1,610 | 15,624 | 2,365 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 91,599 | – | 15,443 | ||||||
Investment transactions in affiliated securities | – | (145 | ) | – | |||||
Capital gain distribution received from affiliated securities | – | 2,265 | – | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (126,070 | ) | – | (21,803 | ) | ||||
Investments in affiliated securities | – | (39,213 | ) | – | |||||
Net Realized and Unrealized Gain (Loss) on Investments | (34,471 | ) | (37,093 | ) | (6,360 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (32,861 | ) | $ | (21,469 | ) | $ | (3,995 | ) |
See accompanying notes.
57
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
Principal LifeTime | Principal LifeTime | Principal LifeTime | |||||||
Amounts in thousands | 2010 Account | 2020 Account | 2030 Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 914 | $ | 4,546 | $ | 3,501 | |||
Total Income | 914 | 4,546 | 3,501 | ||||||
Expenses: | |||||||||
Distribution fees -Class 2 | N/A | 3 | 3 | ||||||
Directors' expenses | 3 | 6 | 5 | ||||||
Professional fees | 3 | 4 | 4 | ||||||
Total Expenses | 6 | 13 | 12 | ||||||
Net Investment Income (Loss) | 908 | 4,533 | 3,489 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions in affiliated securities | 924 | 1,549 | 1,285 | ||||||
Capital gain distribution received from affiliated securities | 772 | 6,458 | 7,505 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments in affiliated securities | (3,947 | ) | (22,610 | ) | (22,990 | ) | |||
Net Realized and Unrealized Gain (Loss) on Investments | (2,251 | ) | (14,603 | ) | (14,200 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (1,343 | ) | $ | (10,070 | ) | $ | (10,711 | ) |
See accompanying notes.
58
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
Principal LifeTime | Principal LifeTime | Principal LifeTime | |||||||
Amounts in thousands | 2040 Account | 2050 Account | 2060 Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 1,448 | $ | 691 | $ | 103 | |||
Total Income | 1,448 | 691 | 103 | ||||||
Expenses: | |||||||||
Distribution fees -Class 2 | 1 | 2 | N/A | ||||||
Directors' expenses | 3 | 3 | 2 | ||||||
Professional fees | 4 | 4 | 4 | ||||||
Total Expenses | 8 | 9 | 6 | ||||||
Net Investment Income (Loss) | 1,440 | 682 | 97 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions in affiliated securities | 51 | 29 | 27 | ||||||
Capital gain distribution received from affiliated securities | 3,851 | 2,142 | 325 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments in affiliated securities | (10,636 | ) | (5,787 | ) | (860 | ) | |||
Net Realized and Unrealized Gain (Loss) on Investments | (6,734 | ) | (3,616 | ) | (508 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (5,294 | ) | $ | (2,934 | ) | $ | (411 | ) |
See accompanying notes.
59
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
Principal LifeTime | |||||||||
Strategic Income | Real Estate | SAM Balanced | |||||||
Amounts in thousands | Account | Securities Account | Portfolio | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 612 | $ | 7 | $ | 18,872 | |||
Dividends | – | 4,103 | – | ||||||
Total Income | 612 | 4,110 | 18,872 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | – | 1,303 | 1,704 | ||||||
Distribution fees -Class 2 | N/A | 8 | 278 | ||||||
Chief compliance officer fees | – | – | 1 | ||||||
Custodian fees | – | 2 | – | ||||||
Directors' expenses | 3 | 5 | 16 | ||||||
Professional fees | 4 | 5 | 4 | ||||||
Other expenses | – | 1 | 1 | ||||||
Total Gross Expenses | 7 | 1,324 | 2,004 | ||||||
Less: Reimbursement from Manager - Class 1 | – | – | 7 | ||||||
Less: Reimbursement from Manager - Class 2 | – | – | 1 | ||||||
Total Net Expenses | 7 | 1,324 | 1,996 | ||||||
Net Investment Income (Loss) | 605 | 2,786 | 16,876 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | – | 10,389 | 13 | ||||||
Investment transactions in affiliated securities | 669 | – | 11,017 | ||||||
Capital gain distribution received from affiliated securities | 316 | – | 15,584 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | – | (19,411 | ) | – | |||||
Investments in affiliated securities | (2,234 | ) | – | (78,727 | ) | ||||
Net Realized and Unrealized Gain (Loss) on Investments | (1,249 | ) | (9,022 | ) | (52,113 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (644 | ) | $ | (6,236 | ) | $ | (35,237 | ) |
See accompanying notes.
60
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
SAM Conservative | SAM Conservative | SAM Flexible | |||||||
Amounts in thousands | Balanced Portfolio | Growth Portfolio | Income Portfolio | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 5,727 | $ | 7,015 | $ | 6,953 | |||
Total Income | 5,727 | 7,015 | 6,953 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 434 | 778 | 461 | ||||||
Distribution fees -Class 2 | 52 | 319 | 62 | ||||||
Directors' expenses | 6 | 8 | 6 | ||||||
Professional fees | 4 | 4 | 4 | ||||||
Total Gross Expenses | 496 | 1,109 | 533 | ||||||
Less: Reimbursement from Manager - Class 1 | 23 | – | – | ||||||
Less: Reimbursement from Manager - Class 2 | 3 | – | – | ||||||
Total Net Expenses | 470 | 1,109 | 533 | ||||||
Net Investment Income (Loss) | 5,257 | 5,906 | 6,420 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions in affiliated securities | 1,370 | 5,222 | 4,527 | ||||||
Capital gain distribution received from affiliated securities | 2,683 | 10,369 | 1,249 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments in affiliated securities | (15,820 | ) | (43,484 | ) | (15,998 | ) | |||
Net Realized and Unrealized Gain (Loss) on Investments | (11,767 | ) | (27,893 | ) | (10,222 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (6,510 | ) | $ | (21,987 | ) | $ | (3,802 | ) |
See accompanying notes.
61
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
SAM Strategic | Short-Term Income | ||||||||
Amounts in thousands | Growth Portfolio | Account | SmallCap Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 5,172 | $ | 51 | $ | 42 | |||
Dividends | – | – | 2,094 | ||||||
Withholding tax | – | – | (1 | ) | |||||
Interest | – | 4,134 | – | ||||||
Total Income | 5,172 | 4,185 | 2,135 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 654 | 777 | 1,712 | ||||||
Distribution fees -Class 2 | 317 | 8 | 14 | ||||||
Custodian fees | – | 9 | 4 | ||||||
Directors' expenses | 7 | 5 | 6 | ||||||
Professional fees | 4 | 4 | 5 | ||||||
Other expenses | – | 1 | – | ||||||
Total Gross Expenses | 982 | 804 | 1,741 | ||||||
Less: Reimbursement from Manager - Class 1 | – | 15 | – | ||||||
Total Net Expenses | 982 | 789 | 1,741 | ||||||
Net Investment Income (Loss) | 4,190 | 3,396 | 394 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | – | (914 | ) | 28,868 | |||||
Investment transactions in affiliated securities | 7,449 | – | – | ||||||
Capital gain distribution received from affiliated securities | 9,218 | – | – | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | – | (759 | ) | (48,626 | ) | ||||
Investments in affiliated securities | (45,097 | ) | – | – | |||||
Net Realized and Unrealized Gain (Loss) on Investments | (28,430 | ) | (1,673 | ) | (19,758 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (24,240 | ) | $ | 1,723 | $ | (19,364 | ) |
See accompanying notes.
62
Statements of Changes in Net Assets | ||||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||||
Amounts in thousands | Bond Market Index Account | Core Plus Bond Account | ||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 60,798 | $ | 48,192 | $ | 9,405 | $ | 9,071 | ||||||
Net realized gain (loss) on Investments, Futures, Short sales and Swap agreements | (20,805 | ) | 388 | (4,080 | ) | 2,072 | ||||||||
Change in unrealized appreciation/depreciation of Investments, Futures, Short sales and Swap | ||||||||||||||
agreements | (48,394 | ) | 24,012 | (9,640 | ) | 2,605 | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (8,401 | ) | 72,592 | (4,315 | ) | 13,748 | ||||||||
Dividends and Distributions to Shareholders | ||||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||||
Class 1 | (52,158 | ) | (42,789 | ) | (9,608 | ) | (8,464 | ) | ||||||
Class 2 | N/A | N/A | (28 | ) | (11 | ) | ||||||||
Total Dividends and Distributions | (52,158 | ) | (42,789 | ) | (9,636 | ) | (8,475 | ) | ||||||
Capital Share Transactions | ||||||||||||||
Shares sold: | ||||||||||||||
Class 1 | 364,715 | 410,455 | 45,295 | 28,130 | ||||||||||
Class 2 | N/A | N/A | 485 | 413 | ||||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||||
Class 1 | 52,158 | 42,789 | 9,608 | 8,464 | ||||||||||
Class 2 | N/A | N/A | 28 | 11 | ||||||||||
Shares redeemed: | ||||||||||||||
Class 1 | (591,027 | ) | (219,587 | ) | (53,893 | ) | (40,636 | ) | ||||||
Class 2 | N/A | N/A | (306 | ) | (69 | ) | ||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (174,154 | ) | 233,657 | 1,217 | (3,687 | ) | ||||||||
Total Increase (Decrease) | (234,713 | ) | 263,460 | (12,734 | ) | 1,586 | ||||||||
Net Assets | ||||||||||||||
Beginning of period | 2,448,068 | 2,184,608 | 294,254 | 292,668 | ||||||||||
End of period | $ | 2,213,355 | $ | 2,448,068 | $ | 281,520 | $ | 294,254 | ||||||
Increase (Decrease) in Capital Shares | ||||||||||||||
Shares sold: | ||||||||||||||
Class 1 | 35,856 | 39,550 | 4,117 | 2,484 | ||||||||||
Class 2 | N/A | N/A | 45 | 36 | ||||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||||
Class 1 | 5,216 | 4,118 | 891 | 751 | ||||||||||
Class 2 | N/A | N/A | 3 | 1 | ||||||||||
Shares redeemed: | ||||||||||||||
Class 1 | (58,606 | ) | (21,105 | ) | (4,899 | ) | (3,584 | ) | ||||||
Class 2 | N/A | N/A | (29 | ) | (6 | ) | ||||||||
Net Increase (Decrease) | (17,534 | ) | 22,563 | 128 | (318 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $42,789 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $52,141. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $8,475 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $9,053. |
See accompanying notes.
63
Statements of Changes in Net Assets | ||||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||||
Diversified Balanced Managed | ||||||||||||||
Amounts in thousands | Diversified Balanced Account | Volatility Account | ||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||
2018 | 2017(a) | ,(b) | 2018 | 2017 | (c) | |||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 18,859 | $ | 26,483 | $ | 2,782 | $ | 6,427 | ||||||
Net realized gain (loss) on Investments | 42,426 | 14,467 | 2,547 | 1,309 | ||||||||||
Change in unrealized appreciation/depreciation of Investments | (96,244 | ) | 83,080 | (10,559 | ) | 10,330 | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (34,959 | ) | 124,030 | (5,230 | ) | 18,066 | ||||||||
Dividends and Distributions to Shareholders | ||||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||||
Class 1 | (1,603 | ) | (1,260 | ) | N/A | N/A | ||||||||
Class 2 | (39,311 | ) | (31,000 | ) | (7,738 | ) | (3,504 | ) | ||||||
Total Dividends and Distributions | (40,914 | ) | (32,260 | ) | (7,738 | ) | (3,504 | ) | ||||||
Capital Share Transactions | ||||||||||||||
Shares sold: | ||||||||||||||
Class 1 | 1,529 | 990 | N/A | N/A | ||||||||||
Class 2 | 11,925 | 17,248 | 7,201 | 8,844 | ||||||||||
Shares issued in acquisition: | ||||||||||||||
Class 1 | N/A | 42,215 | N/A | N/A | ||||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||||
Class 1 | 1,603 | 1,260 | N/A | N/A | ||||||||||
Class 2 | 39,311 | 31,000 | 7,738 | 3,504 | ||||||||||
Shares redeemed: | ||||||||||||||
Class 1 | (6,293 | ) | (3,063 | ) | N/A | N/A | ||||||||
Class 2 | (141,065 | ) | (106,992 | ) | (20,810 | ) | (14,661 | ) | ||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (92,990 | ) | (17,342 | ) | (5,871 | ) | (2,313 | ) | ||||||
Total Increase (Decrease) | (168,863 | ) | 74,428 | (18,839 | ) | 12,249 | ||||||||
Net Assets | ||||||||||||||
Beginning of period | 1,174,075 | 1,099,647 | 181,005 | 168,756 | ||||||||||
End of period | $ | 1,005,212 | $ | 1,174,075 | $ | 162,166 | $ | 181,005 | ||||||
Increase (Decrease) in Capital Shares | ||||||||||||||
Shares sold: | ||||||||||||||
Class 1 | 97 | 64 | N/A | N/A | ||||||||||
Class 2 | 755 | 1,129 | 592 | 755 | ||||||||||
Shares issued in acquisition: | ||||||||||||||
Class 1 | N/A | 2,723 | N/A | N/A | ||||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||||
Class 1 | 101 | 82 | N/A | N/A | ||||||||||
Class 2 | 2,482 | 2,026 | 644 | 299 | ||||||||||
Shares redeemed: | ||||||||||||||
Class 1 | (398 | ) | (196 | ) | N/A | N/A | ||||||||
Class 2 | (8,911 | ) | (6,928 | ) | (1,721 | ) | (1,243 | ) | ||||||
Net Increase (Decrease) | (5,874 | ) | (1,100 | ) | (485 | ) | (189 | ) |
(a) | Period from May 1, 2017, date operations commenced, through December 31, 2017 for Class 1 shares. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $16,118 from net investment income and $16,142 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $26,479. |
(c) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $2,269 from net investment income and $1,235 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $6,426. |
See accompanying notes.
64
Statements of Changes in Net Assets | ||||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||||
Diversified Balanced Volatility | ||||||||||||||
Amounts in thousands | Control Account | Diversified Growth Account | ||||||||||||
Year Ended | Period Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||
2018 | 2017(a) | ,(b) | 2018 | 2017 | (c) | |||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 1,009 | $ | 422 | $ | 64,811 | $ | 95,750 | ||||||
Net realized gain (loss) on Investments and Futures | 546 | 159 | 133,147 | 39,803 | ||||||||||
Change in unrealized appreciation/depreciation of Investments and Futures | (3,893 | ) | 782 | (358,524 | ) | 367,391 | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (2,338 | ) | 1,363 | (160,566 | ) | 502,944 | ||||||||
Dividends and Distributions to Shareholders | ||||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||||
Class 2 | (582 | ) | – | (135,495 | ) | (109,556 | ) | |||||||
Total Dividends and Distributions | (582 | ) | – | (135,495 | ) | (109,556 | ) | |||||||
Capital Share Transactions | ||||||||||||||
Shares sold: | ||||||||||||||
Class 2 | 35,517 | 36,152 | 41,392 | 63,092 | ||||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||||
Class 2 | 582 | – | 135,495 | 109,556 | ||||||||||
Shares redeemed: | ||||||||||||||
Class 2 | (2,718 | ) | (993 | ) | (338,227 | ) | (209,224 | ) | ||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 33,381 | 35,159 | (161,340 | ) | (36,576 | ) | ||||||||
Total Increase (Decrease) | 30,461 | 36,522 | (457,401 | ) | 356,812 | |||||||||
Net Assets | ||||||||||||||
Beginning of period | 36,522 | – | 3,945,713 | 3,588,901 | ||||||||||
End of period | $ | 66,983 | $ | 36,522 | $ | 3,488,312 | $ | 3,945,713 | ||||||
Increase (Decrease) in Capital Shares | ||||||||||||||
Shares sold: | ||||||||||||||
Class 2 | 3,315 | 3,477 | 2,331 | 3,801 | ||||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||||
Class 2 | 53 | – | 7,629 | 6,568 | ||||||||||
Shares redeemed: | ||||||||||||||
Class 2 | (255 | ) | (96 | ) | (19,246 | ) | (12,315 | ) | ||||||
Net Increase (Decrease) | 3,113 | 3,381 | (9,286 | ) | (1,946 | ) |
(a) | Period from March 30, 2017, date operations commenced, through December 31, 2017. |
(b) | As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $423. |
(c) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $51,749 from net investment income and $57,807 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $95,735. |
See accompanying notes.
65
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Diversified Growth Managed | Diversified Growth Volatility | |||||||||||
Amounts in thousands | Volatility Account | Control Account | ||||||||||
Year Ended | Year Ended | Year Ended | Period Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017(b) | ,(c) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 5,363 | $ | 14,575 | $ | 5,626 | $ | 2,221 | ||||
Net realized gain (loss) on Investments and Futures | 5,267 | 2,707 | 6,099 | 877 | ||||||||
Change in unrealized appreciation/depreciation of Investments and Futures | (24,370 | ) | 25,130 | (30,259 | ) | 4,803 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (13,740 | ) | 42,412 | (18,534 | ) | 7,901 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 2 | (17,296 | ) | (7,065 | ) | (3,112 | ) | – | |||||
Total Dividends and Distributions | (17,296 | ) | (7,065 | ) | (3,112 | ) | – | |||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 2 | 15,080 | 23,025 | 233,076 | 164,628 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 2 | 17,296 | 7,065 | 3,112 | – | ||||||||
Shares redeemed: | ||||||||||||
Class 2 | (31,174 | ) | (24,047 | ) | (1,605 | ) | (760 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 1,202 | 6,043 | 234,583 | 163,868 | ||||||||
Total Increase (Decrease) | (29,834 | ) | 41,390 | 212,937 | 171,769 | |||||||
Net Assets | ||||||||||||
Beginning of period | 355,062 | 313,672 | 171,769 | – | ||||||||
End of period | $ | 325,228 | $ | 355,062 | $ | 384,706 | $ | 171,769 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 2 | 1,210 | 1,926 | 21,326 | 15,726 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 2 | 1,376 | 587 | 278 | – | ||||||||
Shares redeemed: | ||||||||||||
Class 2 | (2,476 | ) | (1,974 | ) | (143 | ) | (74 | ) | ||||
Net Increase (Decrease) | 110 | 539 | 21,461 | 15,652 |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $4,217 from net investment income and $2,848 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $14,574. |
(b) | Period from March 30, 2017, date operations commenced, through December 31, 2017. |
(c) | As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $2,231. |
See accompanying notes.
66
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Diversified International | ||||||||||||
Amounts in thousands | Diversified Income Account | Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 4,384 | $ | 5,252 | $ | 5,381 | $ | 3,783 | ||||
Net realized gain (loss) on Investments and Foreign currencies | 5,740 | 1,654 | 12,743 | 16,389 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (15,995 | ) | 14,607 | (68,991 | ) | 48,996 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (5,871 | ) | 21,513 | (50,867 | ) | 69,168 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | N/A | N/A | (5,962 | ) | (5,043 | ) | ||||||
Class 2 | (6,908 | ) | (5,839 | ) | (45 | ) | (25 | ) | ||||
Total Dividends and Distributions | (6,908 | ) | (5,839 | ) | (6,007 | ) | (5,068 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | N/A | N/A | 25,975 | 17,953 | ||||||||
Class 2 | 31,949 | 37,689 | 757 | 582 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | N/A | N/A | 5,962 | 5,043 | ||||||||
Class 2 | 6,908 | 5,839 | 45 | 25 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | N/A | N/A | (34,901 | ) | (37,771 | ) | ||||||
Class 2 | (52,882 | ) | (45,068 | ) | (175 | ) | (448 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (14,025 | ) | (1,540 | ) | (2,337 | ) | (14,616 | ) | ||||
Total Increase (Decrease) | (26,804 | ) | 14,134 | (59,211 | ) | 49,484 | ||||||
Net Assets | ||||||||||||
Beginning of period | 268,135 | 254,001 | 294,843 | 245,359 | ||||||||
End of period | $ | 241,331 | $ | 268,135 | $ | 235,632 | $ | 294,843 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | N/A | N/A | 1,569 | 1,163 | ||||||||
Class 2 | 2,474 | 2,935 | 45 | 36 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | N/A | N/A | 379 | 316 | ||||||||
Class 2 | 533 | 459 | 3 | 1 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | N/A | N/A | (2,138 | ) | (2,444 | ) | ||||||
Class 2 | (4,073 | ) | (3,539 | ) | (11 | ) | (29 | ) | ||||
Net Increase (Decrease) | (1,066 | ) | (145 | ) | (153 | ) | (957 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $3,536 from net investment income and $2,303 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $5,251. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $5,068 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $3,129. |
See accompanying notes.
67
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Government & High Quality | ||||||||||||
Amounts in thousands | Equity Income Account | Bond Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 15,325 | $ | 12,452 | $ | 5,612 | $ | 7,687 | ||||
Net realized gain (loss) on Investments | 26,702 | 43,479 | (4,919 | ) | (748 | ) | ||||||
Change in unrealized appreciation/depreciation of Investments | (78,310 | ) | 50,703 | 1,170 | (2,359 | ) | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (36,283 | ) | 106,634 | 1,863 | 4,580 | |||||||
�� | ||||||||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (45,062 | ) | (36,612 | ) | (8,577 | ) | (9,806 | ) | ||||
Class 2 | (2,105 | ) | (1,741 | ) | (94 | ) | (89 | ) | ||||
Total Dividends and Distributions | (47,167 | ) | (38,353 | ) | (8,671 | ) | (9,895 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 58,053 | 47,257 | 23,115 | 27,787 | ||||||||
Class 2 | 2,423 | 1,516 | 587 | 380 | ||||||||
Shares issued in acquisition: | ||||||||||||
Class 1 | 138,113 | N/A | N/A | N/A | ||||||||
Class 2 | 728 | N/A | N/A | N/A | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 45,062 | 36,612 | 8,577 | 9,806 | ||||||||
Class 2 | 2,105 | 1,741 | 94 | 89 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (97,723 | ) | (102,262 | ) | (47,180 | ) | (38,116 | ) | ||||
Class 2 | (4,025 | ) | (3,073 | ) | (287 | ) | (417 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 144,736 | (18,209 | ) | (15,094 | ) | (471 | ) | |||||
Total Increase (Decrease) | 61,286 | 50,072 | (21,902 | ) | (5,786 | ) | ||||||
Net Assets | ||||||||||||
Beginning of period | 600,098 | 550,026 | 244,141 | 249,927 | ||||||||
End of period | $ | 661,384 | $ | 600,098 | $ | 222,239 | $ | 244,141 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 2,255 | 1,886 | 2,427 | 2,786 | ||||||||
Class 2 | 94 | 62 | 62 | 38 | ||||||||
Shares issued in acquisition: | ||||||||||||
Class 1 | 5,656 | N/A | N/A | N/A | ||||||||
Class 2 | 30 | N/A | N/A | N/A | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 1,759 | 1,555 | 922 | 1,002 | ||||||||
Class 2 | 83 | 74 | 10 | 9 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (3,796 | ) | (4,154 | ) | (4,946 | ) | (3,814 | ) | ||||
Class 2 | (157 | ) | (125 | ) | (30 | ) | (42 | ) | ||||
Net Increase (Decrease) | 5,924 | (702 | ) | (1,555 | ) | (21 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $12,138 from net investment income and $26,215 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $15,365. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $9,895 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $8,670. |
See accompanying notes.
68
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
International Emerging | ||||||||||||
Amounts in thousands | Income Account | Markets Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 7,066 | $ | 7,676 | $ | 1,098 | $ | 929 | ||||
Net realized gain (loss) on Investments and Foreign currencies | 3,115 | (365 | ) | 2,108 | 11,865 | |||||||
Change in unrealized appreciation/depreciation of Investments | (9,259 | ) | 3,846 | (26,211 | ) | 21,489 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 922 | 11,157 | (23,005 | ) | 34,283 | |||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (8,055 | ) | (9,413 | ) | (1,219 | ) | (1,303 | ) | ||||
Class 2 | (135 | ) | (117 | ) | (19 | ) | (6 | ) | ||||
Total Dividends and Distributions | (8,190 | ) | (9,530 | ) | (1,238 | ) | (1,309 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 13,235 | 18,162 | 12,049 | 12,625 | ||||||||
Class 2 | 1,233 | 822 | 1,293 | 766 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 8,055 | 9,413 | 1,219 | 1,303 | ||||||||
Class 2 | 135 | 117 | 19 | 6 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (55,735 | ) | (37,872 | ) | (20,815 | ) | (17,739 | ) | ||||
Class 2 | (947 | ) | (775 | ) | (294 | ) | (67 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (34,024 | ) | (10,133 | ) | (6,529 | ) | (3,106 | ) | ||||
Total Increase (Decrease) | (41,292 | ) | (8,506 | ) | (30,772 | ) | 29,868 | |||||
Net Assets | ||||||||||||
Beginning of period | 223,063 | 231,569 | 115,670 | 85,802 | ||||||||
End of period | $ | 181,771 | $ | 223,063 | $ | 84,898 | $ | 115,670 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 1,306 | 1,738 | 664 | 741 | ||||||||
Class 2 | 121 | 78 | 70 | 43 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 808 | 915 | 74 | 72 | ||||||||
Class 2 | 14 | 11 | 1 | – | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (5,447 | ) | (3,599 | ) | (1,137 | ) | (1,046 | ) | ||||
Class 2 | (93 | ) | (74 | ) | (17 | ) | (4 | ) | ||||
Net Increase (Decrease) | (3,291 | ) | (931 | ) | (345 | ) | (194 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $9,530 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $7,126. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $1,309 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $1,031. |
See accompanying notes.
69
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Amounts in thousands | LargeCapGrowth Account | LargeCapGrowth Account I | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 53 | $ | 255 | $ | 253 | $ | 95 | ||||
Net realized gain (loss) on Investments and Futures | 18,641 | 10,067 | 39,058 | 26,426 | ||||||||
Change in unrealized appreciation/depreciation of Investments and Futures | (25,599 | ) | 22,296 | (27,387 | ) | 52,969 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (6,905 | ) | 32,618 | 11,924 | 79,490 | |||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (8,746 | ) | (408 | ) | (23,659 | ) | (14,218 | ) | ||||
Class 2 | (173 | ) | (2 | ) | (197 | ) | (24 | ) | ||||
Total Dividends and Distributions | (8,919 | ) | (410 | ) | (23,856 | ) | (14,242 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 7,902 | 6,086 | 40,614 | 18,718 | ||||||||
Class 2 | 1,276 | 357 | 2,908 | 518 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 8,746 | 408 | 23,659 | 14,218 | ||||||||
Class 2 | 173 | 2 | 197 | 24 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (22,607 | ) | (15,126 | ) | (58,731 | ) | (40,028 | ) | ||||
Class 2 | (278 | ) | (154 | ) | (266 | ) | (34 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (4,788 | ) | (8,427 | ) | 8,381 | (6,584 | ) | |||||
Total Increase (Decrease) | (20,612 | ) | 23,781 | (3,551 | ) | 58,664 | ||||||
Net Assets | ||||||||||||
Beginning of period | 120,902 | 97,121 | 302,849 | 244,185 | ||||||||
End of period | $ | 100,290 | $ | 120,902 | $ | 299,298 | $ | 302,849 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 232 | 212 | 1,205 | 663 | ||||||||
Class 2 | 36 | 13 | 86 | 18 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 251 | 14 | 687 | 499 | ||||||||
Class 2 | 5 | – | 6 | 1 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (654 | ) | (525 | ) | (1,745 | ) | (1,414 | ) | ||||
Class 2 | (8 | ) | (6 | ) | (9 | ) | (1 | ) | ||||
Net Increase (Decrease) | (138 | ) | (292 | ) | 230 | (234 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $410 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $255. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $88 from net investment income and $14,154 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $106. |
See accompanying notes.
70
Statements of Changes in Net Assets | ||||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||||
LargeCapS&P 500 Index | LargeCapS&P 500 Managed | |||||||||||||
Amounts in thousands | Account | Volatility Index Account | ||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 49,484 | $ | 41,906 | $ | 3,583 | $ | 3,009 | ||||||
Net realized gain (loss) on Investments, Futures and Options and Swaptions | 134,502 | 98,040 | 11,285 | 4,295 | ||||||||||
Change in unrealized appreciation/depreciation of Investments, Futures and Options and Swaptions | (278,290 | ) | 336,443 | (20,990 | ) | 31,117 | ||||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (94,304 | ) | 476,389 | (6,122 | ) | 38,421 | ||||||||
Dividends and Distributions to Shareholders | ||||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||||
Class 1 | (128,550 | ) | (91,569 | ) | (3,114 | ) | (16,430 | ) | ||||||
Class 2 | (322 | ) | (91 | ) | N/A | N/A | ||||||||
Total Dividends and Distributions | (128,872 | ) | (91,660 | ) | (3,114 | ) | (16,430 | ) | ||||||
Capital Share Transactions | ||||||||||||||
Shares sold: | ||||||||||||||
Class 1 | 336,816 | 162,755 | 24,533 | 14,893 | ||||||||||
Class 2 | 4,642 | 2,323 | N/A | N/A | ||||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||||
Class 1 | 128,550 | 91,569 | 3,114 | 16,430 | ||||||||||
Class 2 | 322 | 91 | N/A | N/A | ||||||||||
Shares redeemed: | ||||||||||||||
Class 1 | (428,913 | ) | (337,078 | ) | (34,782 | ) | (29,836 | ) | ||||||
Class 2 | (292 | ) | (218 | ) | N/A | N/A | ||||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 41,125 | (80,558 | ) | (7,135 | ) | 1,487 | ||||||||
Total Increase (Decrease) | (182,051 | ) | 304,171 | (16,371 | ) | 23,478 | ||||||||
Net Assets | ||||||||||||||
Beginning of period | 2,567,220 | 2,263,049 | 222,026 | 198,548 | ||||||||||
End of period | $ | 2,385,169 | $ | 2,567,220 | $ | 205,655 | $ | 222,026 | ||||||
Increase (Decrease) in Capital Shares | ||||||||||||||
Shares sold: | ||||||||||||||
Class 1 | 19,434 | 9,731 | 1,872 | 1,163 | ||||||||||
Class 2 | 255 | 137 | N/A | N/A | ||||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||||
Class 1 | 6,845 | 5,543 | 217 | 1,332 | ||||||||||
Class 2 | 17 | 5 | N/A | N/A | ||||||||||
Shares redeemed: | ||||||||||||||
Class 1 | (23,083 | ) | (19,820 | ) | (2,489 | ) | (2,293 | ) | ||||||
Class 2 | (16 | ) | (12 | ) | N/A | N/A | ||||||||
Net Increase (Decrease) | 3,452 | (4,416 | ) | (400 | ) | 202 |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $40,961 from net investment income and $50,699 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $42,547. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $2,860 from net investment income and $13,570 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $3,107. |
See accompanying notes.
71
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Amounts in thousands, except for Multi-Asset Income Account | MidCap Account | Multi-Asset Income Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 1,610 | $ | 1,964 | $ | 15,624 | $ | 9,393 | ||||
Net realized gain (loss) on Investments | 91,599 | 86,890 | 2,120 | 1,062 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (126,070 | ) | 44,727 | (39,213 | ) | 14,204 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (32,861 | ) | 133,581 | (21,469 | ) | 24,659 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (71,720 | ) | (39,950 | ) | (8,874 | ) | (4,319 | ) | ||||
Class 2 | (2,314 | ) | (1,167 | ) | (1,605 | ) | (227 | ) | ||||
Total Dividends and Distributions | (74,034 | ) | (41,117 | ) | (10,479 | ) | (4,546 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 14,347 | 13,402 | 161,043 | 83,032 | ||||||||
Class 2 | 318 | 249 | 33,170 | 13,773 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 71,720 | 39,950 | 8,874 | 4,319 | ||||||||
Class 2 | 2,314 | 1,167 | 1,605 | 227 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (83,342 | ) | (144,828 | ) | (54,617 | ) | (47,999 | ) | ||||
Class 2 | (1,283 | ) | (1,127 | ) | (1,255 | ) | (11 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 4,074 | (91,187 | ) | 148,820 | 53,341 | |||||||
Total Increase (Decrease) | (102,821 | ) | 1,277 | 116,872 | 73,454 | |||||||
Net Assets | ||||||||||||
Beginning of period | 592,896 | 591,619 | 266,736 | 193,282 | ||||||||
End of period | $ | 490,075 | $ | 592,896 | $ | 383,608 | $ | 266,736 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 254 | 239 | 14,665 | 7,698 | ||||||||
Class 2 | 6 | 4 | 2,999 | 1,236 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 1,273 | 725 | 822 | 396 | ||||||||
Class 2 | 41 | 21 | 150 | 21 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (1,432 | ) | (2,600 | ) | (4,954 | ) | (4,502 | ) | ||||
Class 2 | (22 | ) | (20 | ) | (118 | ) | (1 | ) | ||||
Net Increase (Decrease) | 120 | (1,631 | ) | 13,564 | 4,848 |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $3,101 from net investment income and $38,016 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $1,810. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $3,974 from net investment income and $572 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $9,392. |
See accompanying notes.
72
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Principal Capital Appreciation | Principal LifeTime 2010 | |||||||||||
Amounts in thousands | Account | Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 2,365 | $ | 1,680 | $ | 908 | $ | 1,093 | ||||
Net realized gain (loss) on Investments | 15,443 | 9,970 | 1,696 | 906 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (21,803 | ) | 18,186 | (3,947 | ) | 2,597 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,995 | ) | 29,836 | (1,343 | ) | 4,596 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (9,374 | ) | (1,876 | ) | (1,991 | ) | (1,497 | ) | ||||
Class 2 | (592 | ) | (84 | ) | N/A | N/A | ||||||
Total Dividends and Distributions | (9,966 | ) | (1,960 | ) | (1,991 | ) | (1,497 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 3,936 | 3,469 | 5,287 | 6,802 | ||||||||
Class 2 | 1,928 | 799 | N/A | N/A | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 9,374 | 1,876 | 1,991 | 1,497 | ||||||||
Class 2 | 592 | 84 | N/A | N/A | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (26,219 | ) | (24,539 | ) | (13,890 | ) | (12,203 | ) | ||||
Class 2 | (1,344 | ) | (1,180 | ) | N/A | N/A | ||||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (11,733 | ) | (19,491 | ) | (6,612 | ) | (3,904 | ) | ||||
Total Increase (Decrease) | (25,694 | ) | 8,385 | (9,946 | ) | (805 | ) | |||||
Net Assets | ||||||||||||
Beginning of period | 162,998 | 154,613 | 41,836 | 42,641 | ||||||||
End of period | $ | 137,304 | $ | 162,998 | $ | 31,890 | $ | 41,836 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 140 | 135 | 401 | 519 | ||||||||
Class 2 | 66 | 31 | N/A | N/A | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 320 | 72 | 156 | 116 | ||||||||
Class 2 | 21 | 3 | N/A | N/A | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (902 | ) | (943 | ) | (1,058 | ) | (932 | ) | ||||
Class 2 | (47 | ) | (45 | ) | N/A | N/A | ||||||
Net Increase (Decrease) | (402 | ) | (747 | ) | (501 | ) | (297 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $1,960 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $1,694. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $910 from net investment income and $587 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $1,092. |
See accompanying notes.
73
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Principal LifeTime 2020 | Principal LifeTime 2030 | |||||||||||
Amounts in thousands | Account | Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 4,533 | $ | 5,158 | $ | 3,489 | $ | 3,872 | ||||
Net realized gain (loss) on Investments | 8,007 | 5,615 | 8,790 | 4,732 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (22,610 | ) | 16,432 | (22,990 | ) | 14,742 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (10,070 | ) | 27,205 | (10,711 | ) | 23,346 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (10,770 | ) | (6,032 | ) | (8,819 | ) | (3,949 | ) | ||||
Class 2 | (77 | ) | (8 | ) | (86 | ) | (15 | ) | ||||
Total Dividends and Distributions | (10,847 | ) | (6,040 | ) | (8,905 | ) | (3,964 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 24,719 | 20,106 | 32,095 | 27,203 | ||||||||
Class 2 | 847 | 635 | 1,181 | 775 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 10,770 | 6,032 | 8,819 | 3,949 | ||||||||
Class 2 | 77 | 8 | 86 | 15 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (40,498 | ) | (35,995 | ) | (33,379 | ) | (21,840 | ) | ||||
Class 2 | (121 | ) | (14 | ) | (92 | ) | (80 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (4,206 | ) | (9,228 | ) | 8,710 | 10,022 | ||||||
Total Increase (Decrease) | (25,123 | ) | 11,937 | (10,906 | ) | 29,404 | ||||||
Net Assets | ||||||||||||
Beginning of period | 198,609 | 186,672 | 153,321 | 123,917 | ||||||||
End of period | $ | 173,486 | $ | 198,609 | $ | 142,415 | $ | 153,321 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 1,791 | 1,502 | 2,454 | 2,197 | ||||||||
Class 2 | 60 | 46 | 92 | 62 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 795 | 449 | 690 | 319 | ||||||||
Class 2 | 6 | 1 | 7 | 1 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (2,948 | ) | (2,667 | ) | (2,579 | ) | (1,760 | ) | ||||
Class 2 | (9 | ) | (1 | ) | (7 | ) | (6 | ) | ||||
Net Increase (Decrease) | (305 | ) | (670 | ) | 657 | 813 |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $3,823 from net investment income and $2,217 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $5,157. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $2,262 from net investment income and $1,702 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $3,872. |
See accompanying notes.
74
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Principal LifeTime 2040 | Principal LifeTime 2050 | |||||||||||
Amounts in thousands | Account | Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 1,440 | $ | 1,387 | $ | 682 | $ | 686 | ||||
Net realized gain (loss) on Investments | 3,902 | 2,273 | 2,171 | 1,482 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (10,636 | ) | 6,955 | (5,787 | ) | 3,903 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (5,294 | ) | 10,615 | (2,934 | ) | 6,071 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (3,624 | ) | (1,245 | ) | (2,121 | ) | (641 | ) | ||||
Class 2 | (35 | ) | (7 | ) | (49 | ) | (12 | ) | ||||
Total Dividends and Distributions | (3,659 | ) | (1,252 | ) | (2,170 | ) | (653 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 14,992 | 12,972 | 9,326 | 6,750 | ||||||||
Class 2 | 571 | 233 | 604 | 642 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 3,624 | 1,245 | 2,121 | 641 | ||||||||
Class 2 | 35 | 7 | 49 | 12 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (10,786 | ) | (9,761 | ) | (7,749 | ) | (7,811 | ) | ||||
Class 2 | (221 | ) | (34 | ) | (354 | ) | (33 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 8,215 | 4,662 | 3,997 | 201 | ||||||||
Total Increase (Decrease) | (738 | ) | 14,025 | (1,107 | ) | 5,619 | ||||||
Net Assets | ||||||||||||
Beginning of period | 64,136 | 50,111 | 32,387 | 26,768 | ||||||||
End of period | $ | 63,398 | $ | 64,136 | $ | 31,280 | $ | 32,387 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 953 | 878 | 599 | 468 | ||||||||
Class 2 | 35 | 16 | 39 | 44 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 231 | 84 | 139 | 44 | ||||||||
Class 2 | 2 | – | 3 | 1 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (676 | ) | (666 | ) | (492 | ) | (531 | ) | ||||
Class 2 | (14 | ) | (2 | ) | (22 | ) | (2 | ) | ||||
Net Increase (Decrease) | 531 | 310 | 266 | 24 |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $789 from net investment income and $463 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $1,387. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $399 from net investment income and $254 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $687. |
See accompanying notes.
75
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Principal LifeTime 2060 | Principal LifeTime Strategic | |||||||||||
Amounts in thousands | Account | Income Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 97 | $ | 113 | $ | 605 | $ | 631 | ||||
Net realized gain (loss) on Investments | 352 | 191 | 985 | 320 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (860 | ) | 470 | (2,234 | ) | 1,105 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (411 | ) | 774 | (644 | ) | 2,056 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (305 | ) | (58 | ) | (876 | ) | (574 | ) | ||||
Total Dividends and Distributions | (305 | ) | (58 | ) | (876 | ) | (574 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 4,605 | 3,096 | 4,140 | 3,570 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 305 | 58 | 876 | 574 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (5,257 | ) | (802 | ) | (7,462 | ) | (5,737 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (347 | ) | 2,352 | (2,446 | ) | (1,593 | ) | |||||
Total Increase (Decrease) | (1,063 | ) | 3,068 | (3,966 | ) | (111 | ) | |||||
Net Assets | ||||||||||||
Beginning of period | 5,712 | 2,644 | 24,630 | 24,741 | ||||||||
End of period | $ | 4,649 | $ | 5,712 | $ | 20,664 | $ | 24,630 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 320 | 231 | 346 | 301 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 22 | 5 | 75 | 49 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (362 | ) | (61 | ) | (626 | ) | (486 | ) | ||||
Net Increase (Decrease) | (20 | ) | 175 | (205 | ) | (136 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $37 from net investment income and $21 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $113. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $574 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $631. |
See accompanying notes.
76
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Amounts in thousands | Real Estate Securities Account | SAM Balanced Portfolio | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 2,786 | $ | 1,870 | $ | 16,876 | $ | 22,563 | ||||
Net realized gain (loss) on Investments | 10,389 | 12,729 | 26,614 | 36,186 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (19,411 | ) | (738 | ) | (78,727 | ) | 51,054 | |||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (6,236 | ) | 13,861 | (35,237 | ) | 109,803 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (14,247 | ) | (17,563 | ) | (49,734 | ) | (29,971 | ) | ||||
Class 2 | (340 | ) | (267 | ) | (8,765 | ) | (4,514 | ) | ||||
Total Dividends and Distributions | (14,587 | ) | (17,830 | ) | (58,499 | ) | (34,485 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 11,906 | 10,799 | 18,427 | 16,038 | ||||||||
Class 2 | 1,190 | 804 | 9,719 | 10,687 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 14,247 | 17,563 | 49,734 | 29,971 | ||||||||
Class 2 | 340 | 267 | 8,765 | 4,514 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (26,990 | ) | (28,607 | ) | (106,200 | ) | (105,666 | ) | ||||
Class 2 | (393 | ) | (2,387 | ) | (10,034 | ) | (11,933 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 300 | (1,561 | ) | (29,589 | ) | (56,389 | ) | |||||
Total Increase (Decrease) | (20,523 | ) | (5,530 | ) | (123,325 | ) | 18,929 | |||||
Net Assets | ||||||||||||
Beginning of period | 157,445 | 162,975 | 788,538 | 769,609 | ||||||||
End of period | $ | 136,922 | $ | 157,445 | $ | 665,213 | $ | 788,538 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 611 | 506 | 1,191 | 1,048 | ||||||||
Class 2 | 61 | 39 | 630 | 702 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 737 | 880 | 3,318 | 1,991 | ||||||||
Class 2 | 17 | 13 | 591 | 303 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (1,376 | ) | (1,341 | ) | (6,846 | ) | (6,911 | ) | ||||
Class 2 | (20 | ) | (112 | ) | (654 | ) | (787 | ) | ||||
Net Increase (Decrease) | 30 | (15 | ) | (1,770 | ) | (3,654 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $2,749 from net investment income and $15,081 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $2,655. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $16,289 from net investment income and $18,196 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $22,562. |
See accompanying notes.
77
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
SAM Conservative Balanced | SAM Conservative Growth | |||||||||||
Amounts in thousands | Portfolio | Portfolio | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 5,257 | $ | 6,294 | $ | 5,906 | $ | 9,148 | ||||
Net realized gain (loss) on Investments | 4,053 | 7,429 | 15,591 | 17,208 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (15,820 | ) | 7,897 | (43,484 | ) | 32,050 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (6,510 | ) | 21,620 | (21,987 | ) | 58,406 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (11,929 | ) | (6,802 | ) | (16,069 | ) | (7,782 | ) | ||||
Class 2 | (1,454 | ) | (687 | ) | (9,631 | ) | (4,215 | ) | ||||
Total Dividends and Distributions | (13,383 | ) | (7,489 | ) | (25,700 | ) | (11,997 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 12,728 | 8,651 | 21,584 | 15,368 | ||||||||
Class 2 | 4,078 | 3,932 | 9,393 | 8,409 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 11,929 | 6,802 | 16,069 | 7,782 | ||||||||
Class 2 | 1,454 | 687 | 9,631 | 4,215 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (31,254 | ) | (33,614 | ) | (38,633 | ) | (27,122 | ) | ||||
Class 2 | (3,360 | ) | (2,832 | ) | (9,529 | ) | (10,459 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (4,425 | ) | (16,374 | ) | 8,515 | (1,807 | ) | |||||
Total Increase (Decrease) | (24,318 | ) | (2,243 | ) | (39,172 | ) | 44,602 | |||||
Net Assets | ||||||||||||
Beginning of period | 199,064 | 201,307 | 347,133 | 302,531 | ||||||||
End of period | $ | 174,746 | $ | 199,064 | $ | 307,961 | $ | 347,133 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 1,055 | 722 | 1,136 | 827 | ||||||||
Class 2 | 345 | 328 | 491 | 455 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 1,026 | 573 | 847 | 420 | ||||||||
Class 2 | 127 | 59 | 514 | 231 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (2,587 | ) | (2,799 | ) | (2,012 | ) | (1,452 | ) | ||||
Class 2 | (282 | ) | (238 | ) | (494 | ) | (568 | ) | ||||
Net Increase (Decrease) | (316 | ) | (1,355 | ) | 482 | (87 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $5,416 from net investment income and $2,073 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $6,293. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $4,842 from net investment income and $7,155 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $9,146. |
See accompanying notes.
78
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Amounts in thousands | SAM Flexible Income Portfolio | SAM Strategic Growth Portfolio | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 6,420 | $ | 7,953 | $ | 4,190 | $ | 6,555 | ||||
Net realized gain (loss) on Investments | 5,776 | 5,006 | 16,667 | 14,569 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (15,998 | ) | 4,463 | (45,097 | ) | 32,616 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,802 | ) | 17,422 | (24,240 | ) | 53,740 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (11,234 | ) | (7,879 | ) | (12,164 | ) | (6,437 | ) | ||||
Class 2 | (1,602 | ) | (807 | ) | (9,663 | ) | (4,699 | ) | ||||
Total Dividends and Distributions | (12,836 | ) | (8,686 | ) | (21,827 | ) | (11,136 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 8,441 | 13,221 | 15,633 | 14,111 | ||||||||
Class 2 | 7,676 | 5,463 | 9,438 | 9,771 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 11,234 | 7,879 | 12,164 | 6,437 | ||||||||
Class 2 | 1,602 | 807 | 9,663 | 4,699 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (42,935 | ) | (30,688 | ) | (26,105 | ) | (26,278 | ) | ||||
Class 2 | (4,450 | ) | (4,151 | ) | (10,070 | ) | (9,804 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (18,432 | ) | (7,469 | ) | 10,723 | (1,064 | ) | |||||
Total Increase (Decrease) | (35,070 | ) | 1,267 | (35,344 | ) | 41,540 | ||||||
Net Assets | ||||||||||||
Beginning of period | 217,745 | 216,478 | 290,493 | 248,953 | ||||||||
End of period | $ | 182,675 | $ | 217,745 | $ | 255,149 | $ | 290,493 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 668 | 1,032 | 737 | 696 | ||||||||
Class 2 | 613 | 429 | 448 | 487 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 921 | 625 | 589 | 320 | ||||||||
Class 2 | 132 | 64 | 474 | 236 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (3,390 | ) | (2,393 | ) | (1,230 | ) | (1,298 | ) | ||||
Class 2 | (353 | ) | (327 | ) | (480 | ) | (489 | ) | ||||
Net Increase (Decrease) | (1,409 | ) | (570 | ) | 538 | (48 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $7,133 from net investment income and $1,553 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $7,952. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $3,643 from net investment income and $7,493 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $6,555. |
See accompanying notes.
79
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Amounts in thousands | Short-Term Income Account | SmallCap Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 3,396 | $ | 3,319 | $ | 394 | $ | 770 | ||||
Net realized gain (loss) on Investments | (914 | ) | (99 | ) | 28,868 | 16,365 | ||||||
Change in unrealized appreciation/depreciation of Investments | (759 | ) | 128 | (48,626 | ) | 8,266 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,723 | 3,348 | (19,364 | ) | 25,401 | |||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (3,250 | ) | (3,141 | ) | (13,133 | ) | (766 | ) | ||||
Class 2 | (71 | ) | (42 | ) | (366 | ) | (7 | ) | ||||
Total Dividends and Distributions | (3,321 | ) | (3,183 | ) | (13,499 | ) | (773 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 29,747 | 32,564 | 12,588 | 8,334 | ||||||||
Class 2 | 2,906 | 2,666 | 866 | 497 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 3,250 | 3,141 | 13,133 | 766 | ||||||||
Class 2 | 71 | 42 | 366 | 7 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (40,805 | ) | (47,948 | ) | (39,263 | ) | (34,375 | ) | ||||
Class 2 | (1,159 | ) | (2,494 | ) | (750 | ) | (666 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (5,990 | ) | (12,029 | ) | (13,060 | ) | (25,437 | ) | ||||
Total Increase (Decrease) | (7,588 | ) | (11,864 | ) | (45,923 | ) | (809 | ) | ||||
Net Assets | ||||||||||||
Beginning of period | 160,746 | 172,610 | 214,040 | 214,849 | ||||||||
End of period | $ | 153,158 | $ | 160,746 | $ | 168,117 | $ | 214,040 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 11,770 | 12,728 | 732 | 532 | ||||||||
Class 2 | 1,153 | 1,047 | 50 | 31 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 1,300 | 1,232 | 716 | 50 | ||||||||
Class 2 | 28 | 17 | 20 | 1 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (16,117 | ) | (18,737 | ) | (2,233 | ) | (2,177 | ) | ||||
Class 2 | (460 | ) | (976 | ) | (43 | ) | (43 | ) | ||||
Net Increase (Decrease) | (2,326 | ) | (4,689 | ) | (758 | ) | (1,606 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $3,183 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $3,317. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $773 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $893. |
See accompanying notes.
80
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
1. Organization
Principal Variable Contracts Funds, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company and operates as a series fund in the mutual fund industry. The financial statements for 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 ControlAccount, Diversified IncomeAccount, Diversified InternationalAccount, Equity IncomeAccount, Government & High Quality Bond Account, Income Account, International Emerging Markets Account, LargeCap Growth Account, LargeCap Growth Account I, LargeCap S&P 500 Index Account, LargeCap S&P 500 Managed Volatility Index Account, MidCap Account, Multi-Asset Income Account, Principal Capital Appreciation Account, Principal LifeTime 2010 Account, Principal LifeTime 2020 Account, Principal LifeTime 2030 Account, Principal LifeTime 2040Account, Principal LifeTime 2050Account, Principal LifeTime 2060Account, Principal LifeTime Strategic Income Account, Real Estate Securities Account, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, Short-Term Income Account and SmallCap Account (known as the “Accounts”), are presented herein.
Each of the Accounts is an investment company and applies specialized accounting and reporting under Accounting Standards Codification Topic 946,Financial Services - Investment Companies. The Accounts have not provided financial support and are not contractually required to provide financial support to any investee.
Effective March 30, 2017, the initial purchases of $100,000 of Class 2 shares of Diversified Balanced Volatility Control Account and Diversified Growth Volatility Control Account were made by Principal Financial Services, Inc.
Effective May 1, 2017, the initial purchase of $10,000 of Class 1 shares of Diversified Balanced Account was made by Principal Global Investors, LLC (the “Manager”).
Effective May 26, 2017, Diversified Balanced Account acquired all the assets and assumed all the liabilities of Balanced Account pursuant to a plan of acquisition approved by shareholders on May 25, 2017. The purpose of the acquisition was to combine two accounts managed by the Manager with similar investment objectives, principal policies, and risks. The acquisition was accomplished by a tax-free exchange of 2,737,000 shares from Balanced Account for 2,723,000 shares valued at $42,215,000 of Diversified Balanced Account at an approximate exchange rate of .99 for Class 1 shares. The investment securities of Balanced Account, with a fair value of approximately $7,000 and a cost of $7,000, and $42,204,000 cash were the primary assets acquired by Diversified Balanced Account on May 26, 2017. For financial reporting purposes, assets received and shares issued by Diversified Balanced Account were recorded at fair value; however, the cost basis of the investments received from Balanced Account were carried forward to align ongoing reporting of Diversified Balanced Account. The aggregate net assets of Balanced Account and Diversified Balanced Account immediately prior to the acquisition in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) were approximately $42,215,000 ($347,000 of accumulated realized gain) and $1,123,814,000, respectively. The aggregate net assets of Diversified Balanced Account immediately following the acquisition were $1,166,029,000. In accordance with Sections 381-384 of the Internal Revenue Code, a portion of accumulated realized losses may be subject to limitation.
Assuming the acquisition had been completed on January 1, 2017, the beginning of the fiscal year for Diversified Balanced Account, Diversified BalancedAccount’s pro forma results of operations for the period ended December 31, 2017, would have been $26,854,000 of net investment income, $99,029,000 of net realized and unrealized gain on investments, and $125,883,000 of net increase in net assets resulting from operations. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Balanced Account that have been included in Diversified Balanced Account’s statement of operations since May 26, 2017.
Effective October 12, 2018, Equity Income Account acquired all the assets and assumed all the liabilities of LargeCap Value Account pursuant to a plan of reorganization approved by shareholders October 1, 2018. The purpose of the acquisition was to combine two accounts managed by the Manager with similar investment objectives, principal policies, and risks. The acquisition was accomplished by a tax-free exchange of 5,827,000 shares from LargeCap Value Account for 5,686,000 shares valued at $138,841,000 of Equity Income Account at an approximate exchange rate of .98 for Class 1 and .98 for Class 2. The investment securities of LargeCap Value Account, with a fair value of approximately $136,333,000 and a cost of $141,343,000, and $2,514,000 cash were the primary assets acquired by Equity Income Account on October 12, 2018. For financial reporting purposes, assets received and shares issued by Equity Income Account were recorded at fair value; however, the cost basis of the investments received from LargeCap Value Account were maintained through the reorganization. The net assets of LargeCap Value Account and Equity Income Account immediately prior to the acquisition in accordance with U.S. GAAP were approximately $138,841,000 ($1,038,000 of accumulated realized gain) and $580,109,000, respectively. The aggregate net assets of Equity
81
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
1. Organization (continued)
Income Account immediately following the acquisition were $718,950,000. In accordance with Sections 381-384 of the Internal Revenue Code, a portion of accumulated realized losses may be subject to limitation.
Assuming the acquisition had been completed on January 1, 2018, the beginning of the fiscal year for Equity IncomeAccount, Equity Income Account’s pro forma results of operations for the year ended December 31, 2018, would have been $17,543,000 of net investment income, $54,739,000 of net realized and unrealized loss on investments, and $37,196,000 of net decrease in net assets resulting from operations. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of LargeCap Value Account that have been included in Equity Income Account’s statement of operations since October 12, 2018.
Both classes of shares for each of the Accounts represent interests in the same portfolio of investments and will vote together as a single class, except where otherwise required by law or as determined by the Fund’s Board of Directors. In addition, the Board of Directors declares separate dividends on each class of shares.
2. Significant Accounting Policies
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Accounts:Security Valuation.Certain of the Accounts, including 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 (collectively, the “Principal LifeTime Accounts”) along with SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio (collectively, the “SAM Portfolios”) and 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, Diversified Income Account, Multi-Asset Income Account invest in other series of the Fund and in class R-6 and Institutional shares of series of Principal Funds, Inc. which are valued at the closing net asset value per share of each respective fund on the day of valuation. In addition, certain of the Accounts invest in Principal Exchange-Traded Funds and other publicly traded investment funds, which are valued at the close of the exchange. The shares of the other series of the Fund, Principal Funds, Inc., Principal Exchange-Traded Funds, and other publicly traded investment funds are referred to as the “Underlying Funds”.
The Accounts (with the exception of Diversified Balanced Volatility Control Account, Diversified Balanced Managed Volatility Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, Diversified Growth Volatility Control Account, Diversified Income Account, Multi-Asset Income Account, Principal LifeTime Accounts, and SAM Portfolios) value securities for which market quotations are readily available at fair value, which is determined using the last reported sale price. If no sales are reported, as is regularly the case for some securities traded over-the-counter, securities are valued using the last reported bid price or an evaluated bid price provided by a pricing service. Pricing services use modeling techniques that incorporate security characteristics such as current quotations by broker/ dealers, coupon, maturity, quality, type of issue, trading characteristics, other yield and risk factors, and other market conditions to determine an evaluated bid price or, in the case of certain credit default swaps, a mean price provided by a pricing service. When reliable market quotations are not considered to be readily available, which may be the case, for example, with respect to restricted securities, certain debt securities, preferred stocks, and foreign securities, the investments are valued at their fair value as determined in good faith by the Manager under procedures established and periodically reviewed by the Fund’s Board of Directors.
The value of foreign securities used in computing the net asset value per share is generally determined as of the close of the foreign exchange where the security is principally traded. Events that occur after the close of the applicable foreign market or exchange but prior to the calculation of the Accounts’ net asset values are reflected in the Accounts’ net asset values and these securities are valued at fair value as determined in good faith by the Manager under procedures established and periodically reviewed by the Fund’s Board of Directors. 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 inAmerican depository receipts (“ADRs”), futures contracts, industry indices, general indices, and foreign currencies.
To the extent the Accounts invest in foreign securities listed on foreign exchanges which trade on days on which the Accounts do not determine net asset values, for example, weekends and other customary national U.S. holidays, the Accounts’ net asset values could be significantly affected on days when shareholders cannot purchase or redeem shares.
82
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
2. Significant Accounting Policies (continued)
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 Accounts to value such securities at prices at which it is expected those shares may be sold, and the Manager or any sub-advisor is authorized to make such determinations subject to such oversight by the Fund’s Board of Directors as may occasionally be necessary.
Currency Translation.Foreign holdings are translated to U.S. dollars using the exchange rate at the daily close of the New York Stock Exchange. The identified cost of the Accounts’ holdings is translated at approximate rates prevailing when acquired. Income and expense amounts are translated at approximate rates prevailing when received or paid, with daily accruals of such amounts reported at approximate rates prevailing at the date of valuation. Since the carrying amount of the foreign securities is determined based on the exchange rate and market values at the close of the period, it is not practicable to isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities during the year.
Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between trade and settlement dates on security transactions, and the difference between the amount of dividends, interest income, interest expense, and foreign withholding taxes recorded on the books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies arise from changes in the exchange rate relating to assets and liabilities, other than investments in securities, purchased and held in non-U.S. denominated currencies.
The following Accounts held securities denominated in foreign currencies that exceeded 5% of net assets of the respective account as of December 31, 2018:
Diversified International Account | International Emerging Markets Account | ||||||
Euro | 20.7 | % | Hong Kong Dollar | 23.5 | % | ||
Japanese Yen | 15.3 | New Taiwan Dollar | 11.9 | ||||
British Pound | 12.3 | Indian Rupee | 11.5 | ||||
Swiss Franc | 8.6 | South Korean Won | 10.4 | ||||
Canadian Dollar | 7.6 | Brazilian Real | 8.0 |
Income and Investment Transactions.TheAccounts record investment transactions on a trade date basis. Trade date for senior floating rate interests purchased in the primary market is considered the date on which the loan allocations are determined. Trade date for senior floating rate interests purchased in the secondary market is the date on which the transaction is entered into. The identified cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation of investments. The Accounts record dividend income on the ex-dividend date, except dividend income from foreign securities whereby the ex-dividend date has passed; such dividends are recorded as soon as the Accounts are informed of the ex-dividend date. Interest income is recognized on an accrual basis. Discounts and premiums on securities are accreted/amortized, respectively, on the level yield method over the expected lives of the respective securities. The Accounts allocate all income and realized and unrealized gains or losses on a daily basis to each class of shares based upon the relative proportion of the value of shares outstanding of each class.
Expenses.Expenses directly attributed to a particular account are charged to that account. Other expenses not directly attributed to a particular account are apportioned among the registered investment companies managed by the Manager.
Management fees are allocated daily to each class of shares based upon the relative proportion of the value of shares outstanding of each class. Expenses specifically attributable to a particular class are charged directly to such class and are included separately in the statements of operations.
In addition to the expenses the Accounts bear directly, each of the Accounts may indirectly bear a pro rata share of the fees and expenses of the Underlying Funds in which they invest. Because the Underlying Funds have varied expense levels and each of the Accounts may own different proportions of the Underlying Funds at different times, the amount of expense incurred indirectly by each Account will vary. Expenses included in the statements of operations of the Accounts reflect the expenses of each Account and do not include any expenses associated with the Underlying Funds.
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 net operating losses, mortgage-backed securities, certain defaulted securities, expiring capital loss carry forwards, certain preferred securities, amortization of premiums and discounts, options and futures contracts, sales of Passive Foreign Investment Companies, losses deferred due
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Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
2. Significant Accounting Policies (continued)
to wash sales, swap agreements, short sales, partnership investments, Real Estate Investment Trusts (“REITs”), utilization of earnings and profits distributed to shareholders on redemption of shares, and foreign currency transactions. 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.
Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the account. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates are used in reporting the character of income and distributions for financial statement purposes. Real Estate Securities Account receives substantial distributions from holdings in REITs.
Federal Income Taxes.No provision for federal income taxes is considered necessary because each of the Accounts intends to qualify as a “regulated investment company” under the Internal Revenue Code and intends to distribute each year substantially all of its net investment income and realized capital gains to shareholders.
Management evaluates tax positions taken or expected to be taken in the course of preparing the Accounts’ tax returns to determine whether it is “more likely than not” that each tax position would be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more likely than not threshold would be recorded as a tax benefit or expense in the current year. During the yearendedDecember 31, 2018, the Accounts did not record any such tax benefit or expense in the accompanying financial statements. The statute of limitations remains open for the fiscal years from 2015-2017.
Foreign Taxes.Certain of the Accounts are subject to foreign income taxes imposed by certain countries in which they invest. Foreign income taxes are accrued by the Accounts as a reduction of income. These amounts are shown as withholding tax on the statements of operations. In consideration of recent decisions rendered by European courts, certain of the Accounts have filed additional tax reclaims for taxes withheld in prior years. Due to the uncertainty and timing of these reclaims, a corresponding receivable will only be recorded when both the amount is known and there are no significant uncertainties regarding collectability.
Gains realized upon the disposition of certain foreign securities held by certain of the Accounts may be subject to capital gains tax, payable prior to repatriation of sale proceeds. The tax is computed on certain net realized gains and, if any, is shown on the statements of operations. Realized losses in excess of gains may be carried forward to offset future gains. In addition, the Accounts accrue an estimated deferred tax liability for future gains on certain foreign securities. Any accrued tax liability is shown on the statements of assets and liabilities. At December 31, 2018, none of the Accounts had a deferred tax liability.
Recent Accounting Pronouncements.Effective August 17, 2018, the U.S. Securities and Exchange Commission (“SEC”) approved a final rule,Disclosure Update and Simplification. The SEC adopted amendments to certain disclosures that have become redundant or superseded in light of other SEC disclosure requirements, U.S. GAAP or changes in the information environment. As of December 31, 2018, the Accounts have adopted the new amendments.
In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2018-13Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which amends and eliminates certain disclosure requirements for fair value as part of its framework project. The ASU is effective for annual and interim periods beginning after December 15, 2019. The early adoption of the removal or modification of disclosures and delay of adoption of the additional disclosures is permitted. As of December 31, 2018, the Accounts have adopted the removal and modification of disclosures.
In March 2017, the Financial Accounting Standards Board issued ASU No. 2017-08Premium Amortization on Purchased Callable Debt Securities, which amends the accounting standards to shorten the amortization period of certain purchased callable debt securities to the earliest call date. The ASU is effective for annual and interim periods beginning after December 15, 2018. The Accounts will adopt the new amendments for periods beginning after December 15, 2018.
3. Operating Policies
Borrowings.Pursuant to an exemptive order issued by the SEC, the Accounts and other registered investment companies managed by the Manager may participate in an interfund lending facility (“Facility”). The Facility allows the Accounts to borrow money from or loan money to the other participants. Loans under the Facility are made to handle unusual and/or unanticipated short-term cash requirements. Interest paid and received on borrowings is the average of the current repurchase agreement rate and the bank loan rate (the higher of (i) the Federal Funds Rate or (ii) the One Month London Inter-Bank Offered Rate (“LIBOR”) rate plus 1.00%). The interest income received is included in
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Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
3. Operating Policies (continued)interest income on the statements of operations. The interest expense associated with these borrowings is included in other expenses on the statements of operations.
During the year ended December 31, 2018, Accounts lending to the Facility were as follows (amounts in thousands):
Average Daily | Weighted Average | ||||
Amount Loaned | Annual Interest Rate | ||||
Bond Market Index Account | $ | 542 | 2.84 | % | |
Core Plus Bond Account | 23 | 2.28 | |||
Diversified Growth Volatility Control Account | 63 | 2.73 | |||
Diversified International Account | 3 | 2.78 | |||
Equity Income Account | 12 | 1.97 | |||
Government & High Quality Bond Account | 5 | 2.44 | |||
Income Account | 1 | 2.45 | |||
International Emerging Markets Account | 5 | 2.68 | |||
LargeCap Growth Account | 1 | 2.51 | |||
LargeCap Growth Account I | 18 | 2.41 | |||
LargeCap S&P 500 Index Account | 648 | 2.79 | |||
LargeCap S&P 500 Managed Volatility Index Account | 25 | 2.42 | |||
MidCap Account | 4 | 2.66 | |||
Short-Term Income Account | 25 | 2.51 | |||
SmallCap Account | 2 | 2.00 |
During the year ended December 31, 2018,Accountsborrowing from the Facility were as follows (amounts in thousands):
Average Daily | Weighted Average | ||||
Amount Borrowed | Annual Interest Rate | ||||
Diversified Balanced Volatility Control Account | $ | 4 | 2.48 | % | |
Diversified Growth Volatility Control Account | 15 | 2.48 | |||
Diversified International Account | 17 | 2.02 | |||
International Emerging Markets Account | 1 | 1.96 | |||
LargeCap Growth Account | 1 | 2.10 | |||
LargeCap S&P 500 Index Account | 144 | 2.11 | |||
MidCap Account | 7 | 2.32 | |||
Real Estate Securities Account | 29 | 2.27 |
In addition, the Accounts participate with other registered investment companies managed by the Manager in an unsecured joint line of credit with a bank which allows the participants to borrow up to $100 million, collectively. Borrowings are made solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to each participant, based on its borrowings, at a rate equal to the higher of the Federal Funds Rate or the One Month LIBOR rate plus 1.00%. Additionally, a commitment fee is charged at an annual rate of .15% on the amount of the line of credit which is allocated to each participating fund based on average net assets. During the year ended December 31, 2018, LargeCap Growth Account I and SmallCap Account borrowed against the line of credit. The average outstanding balance for the liability during the year ended December 31, 2018 was $5,000 at a weighted average annual interest rate of 3.43% for LargeCap Growth Account I and $5,000 at a weighted average annual interest rate of 3.43% for SmallCap Account. The interest expense associated with these borrowings is included in other expenses on the statements of operations. There were no outstanding borrowings as of December 31, 2018.
Contingent Convertible Securities.Core Plus Bond Account invests 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,
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Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
3. Operating Policies (continued)
if at all, a contingent convertible security will be converted to equity, and an account may suffer losses as a result. If the trigger level is breached, the issuer’s decision to write down, write off or convert a contingent convertible security may result in the account’s complete loss on an investment in CoCos with no chance of recovery even if the issuer remains in existence.
Counterparties.The Accounts may be exposed to counterparty risk, or the risk that another party with which the Accounts have unsettled or open transactions will fail to perform on their commitment. To the extent that unpaid amounts owed to the Accounts exceed a predetermined threshold agreed to with the counterparty, such counterparty shall advance collateral to the Accounts in the form of cash or cash equivalents equal in value to the unpaid amount owed to the Accounts. If the unpaid amount owed to the Accounts subsequently decreases, the Accounts would be required to return all or a portion of the collateral.
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 also include collateral provisions. Collateral received and pledged are generally settled daily with each counterparty. As of December 31, no Accounts had financial assets and liabilities subject to Master Netting Agreements or similar agreements.
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 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 Accounts may pledge cash to a broker for securities sold short.
For year ended December 31, 2018, deposits with counterparty were as follows (amounts in thousands):
MSFTA (Forward | ||||||||||||
FCM (Futures | Currency Contracts and | Total Deposits with | ||||||||||
and Cleared Swaps) | TBA Securities | ISDA (OTC Derivatives) | Counterparty | |||||||||
Core Plus Bond Account | $ | — | $ | 8 | $ | 1 | $ | 9 | ||||
Diversified Balanced Volatility | ||||||||||||
Control Account | 42 | — | — | 42 | ||||||||
Diversified Growth Volatility | ||||||||||||
Control Account | 1,308 | — | — | 1,308 | ||||||||
LargeCap Growth Account I | 12 | — | — | 12 |
Deposits from Counterparty.Cash received from a counterparty as collateral is reflected as a liability on the statements of assets and liabilities as deposits from counterparty. There are a variety of security types which require varying levels of pledged collateral. The collateral posted to the Accounts by the broker is received in the account’s custodian account.
As of December 31, 2018, deposits from counterparty were as follows (amounts in thousands):
TBA Securities | |||
Bond Market Index Account | $ | 610 |
Foreign Currency Contracts.Certain of the Accounts may be subject to foreign currency exchange rate risk in the normal course of pursuing such Accounts’ investment objectives. The Accounts may use foreign currency contracts to gain exposure to, or hedge against changes in the value of foreign currencies. Certain of the Accounts enter into forward contracts to purchase and sell foreign currencies at a specified future date at a fixed exchange rate. Forward foreign currency contracts are valued at the forward rate, and are marked-to-market daily. The change in fair value is recorded by the Accounts as an unrealized gain or loss. When the contract is closed, the Accounts record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
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Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
3. Operating Policies (continued)
The use of forward foreign currency contracts does not eliminate the fluctuations in underlying prices of the Accounts’ portfolio securities, but it does establish a rate of exchange that can be achieved in the future. Although forward foreign currency contracts limit the risk of loss due to a decline in the value of the hedged currency, they also limit any potential gain that might result should the value of the currency increase. In addition, the Accounts could be exposed to risks if the counterparties to the contracts are unable to meet the terms of their contracts or if the value of the currency changes unfavorably to the U.S. dollar.
Futures Contracts.The Accounts are subject to equity price risk, interest rate risk, and foreign currency exchange rate risk in the normal course of pursuing their investment objectives. The Accounts (with the exception of Diversified Balanced Account, Diversified Balanced Managed Volatility Account, Diversified Balanced Volatility Control Account, Diversified Growth Account, Diversified Growth Managed Volatility Account, Diversified Growth Volatility Control Account, Diversified Income Account, Multi-Asset Income Account, Principal LifeTime Accounts, and SAM Portfolios) may enter into futures contracts to hedge against changes in or to gain exposure to, change in the value of equities, interest rates and foreign currencies. Initial margin deposits are made by cash deposits or segregation of specific securities as may be required by the exchange on which the transaction was conducted. Pursuant to the contracts, an account agrees to receive from or pay to the broker, an amount of cash equal to the daily fluctuation in the value of the contract. Such receipts or payments are known as “variation margin” and are recorded by the account as a variation margin receivable or payable on financial derivative instruments. 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 (loss) on the statements of assets and liabilities. When the contracts are closed, the account recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the account’s cost basis in the contract. There is minimal counterparty credit risk to the Accounts because futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
Illiquid Securities.Illiquid securities generally cannot be sold or disposed of in the ordinary course of business (within seven calendar days) at approximately the value at which each of the Accounts has valued the investments. This may have an adverse effect on each of the Accounts’ability to dispose of particular illiquid securities at fair value and may limit each of the Accounts’ability to obtain accurate market quotations for purposes of valuing the securities.
Indemnification.Under the Fund’s by-laws, present and past officers, directors, and employees are indemnified against certain liabilities arising out of the performance of their duties. In addition, in the normal course of business, the Fund may enter into a variety of contracts that may contain representations and warranties which provide general indemnifications. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund.
Inflation-Indexed Bonds.Certain of theAccounts may invest in inflation-indexed bonds. Inflation-indexed bonds are fixed-income securities whose principal value is periodically adjusted to the rate of inflation. The interest rate on these bonds is generally fixed at issuance at a rate lower than typical bonds. Over the life of an inflation-indexed bond, however, interest will be paid based on a principal value, which is adjusted for inflation. Any increase or decrease in the principal amount of an inflation-indexed bond will be included as interest income on the statements of operations, even though the Accounts would not receive the principal until maturity.
Mortgage-Dollar Rolls.Certain of the Accounts have entered into mortgage-dollar-roll transactions on TBA securities, in which the Accounts sell mortgage-backed securities and simultaneously agree to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are invested in additional securities. The Accounts forgo principal and interest paid on the securities and are compensated by interest earned on the proceeds of the initial sale and by a lower price on the securities to be repurchased. The Accounts treat mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the Accounts’portfolio turnover ratio. Amounts to be received or paid in connection with open mortgage-dollar-rolls are included in Investment securities sold and investment securities purchased on the statements of assets and liabilities.
Options Contracts.During the period LargeCap S&P 500 Managed Volatility Index Account wrote call and put options on indices it owns or in which it may invest for both hedging and non-hedging purposes. Writing put options tends to increase a account’s exposure to the underlying instrument. Writing call options tends to decrease an account’s exposure to the underlying instrument. When an account writes a call or put option, an amount equal to the premium received is recorded as a liability and subsequently marked to market to reflect the current value of the option written. These liabilities are reflected as options contracts written on the statements of assets and liabilities. Premiums received from writing options which expire are treated as realized gains. Premiums received from writing options which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying index to determine the realized gain or loss. An account, as a writer of an option, has no control over whether the underlying index may be sold (call) or purchased (put) and as a result bears the
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Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
3. Operating Policies (continued)
market risk of an unfavorable change in the price of the index underlying the written option. There is the risk an account may not be able to enter into a closing transaction because of an illiquid market. The maximum potential amount of future payments (undiscounted) that 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 schedule of investments. An account may also purchase put and call options. Purchasing call options tends to increase an account’s exposure to the underlying instrument. Purchasing put options tends to decrease an account’s exposure to the underlying instrument. An account pays a premium which is included on the account’s statements of assets and liabilities as an investment and subsequently marked to market to reflect the current value of the option. Premiums paid for purchasing options which expire are treated as realized losses. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying index transaction to determine the realized gain or loss. Details of options contracts open at year end are included in the Accounts’ schedules of investments.
Rebates.Subject to best execution, the Accounts may direct certain portfolio transactions to brokerage firms that, in turn, have agreed to rebate a portion of the related brokerage commission to the Accounts in cash. Commission rebates are included as a component of realized gain from investment transactions in the statements of operations.
Repurchase Agreements.The Accounts may invest in repurchase agreements that are fully collateralized, typically by U.S. government or U.S. government agency securities. It is the Accounts’ policy that the counterparties’ custodian takes possession of the underlying collateral securities. The fair value of the collateral is at all times at least equal to the total amount of the repurchase obligation. In the event of default on the obligation to repurchase, the Accounts have the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event the seller of a repurchase agreement defaults, the Accounts could experience delays in the realization of the collateral.
Restricted Securities.Certain of the Accounts may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult.
Senior Floating Rate Interests.TheAccounts may invest in senior floating rate interests (bank loans). Senior floating rate interests typically hold the most senior position in the capital structure of a business entity (the “Borrower”), are secured by specific collateral and have a claim on the assets and/or stock of the Borrower that is senior to that held by subordinated debtholders and stockholders of the Borrower. Senior floating rate interests are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the senior floating rate interest. Borrowers of senior floating rate interests are typically rated below-investment-grade, which means they are more likely to default than investment-grade loans. A default could lead to non-payment of income which would result in a reduction of income to the account and there can be no assurance that the liquidation of any collateral would satisfy the Borrower’s obligation in the event of non-payment of scheduled interest or principal payments, or that such collateral could be readily liquidated.
Senior floating rate interests pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or LIBOR rate.
Senior floating rate interests generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for the Borrower to repay, prepayments of senior floating rate interests may occur. As a result, the actual remaining maturity of senior floating rate interests may be substantially less than stated maturities shown in the schedules of investments.
In connection with the senior floating rate interests, the Accounts may also enter into unfunded loan commitments (“commitments”). All or a portion of the commitments may be unfunded. The Accounts are obligated to fund these commitments at the Borrower’s discretion. Therefore, the Accounts must have funds sufficient to cover its contractual 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 commitments on the statements of assets and liabilities. As of December 31, 2018, the commitments were as follows (amounts in thousands):
Unfunded Loan Commitment | Unrealized gain/loss | ||||
Core Plus Bond Account | $ | 30 | $ | (1 | ) |
Short Sales.Bond Market Index Account entered into short sales transactions during the period. A short sale is a transaction in which an account sells a security it does not own as a hedge against some of its long positions and/or in anticipation of a decline in the market price of the security. The account must borrow the security sold short and deliver it to the broker dealer which made the short sale. A security sold in a short sale transaction and the interest or dividend payable on the security if any, is reflected as a liability on the statements of assets and liabilities. The account is obligated to pay any interest or dividends received on the borrowed securities. Interest accrued and dividends
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Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
3. Operating Policies (continued)
declared on short positions are recorded as an expense and, if any, appear as dividends and interest on shorts on the statements of operations. An account is obligated to deliver the security at the market price at the time the short position is closed. Possible losses from short sales may be unlimited.
The account is required to pledge cash or securities to the broker as collateral for securities sold short. Collateral requirements are calculated daily based on the current market value of the short positions. Cash deposited with the broker for collateral is included in deposits with counterparty on the statements of assets and liabilities and securities segregated as collateral are footnoted in the schedule of investments. The account may pay broker’s fees on the borrowed securities and may also pay a financing charge for the difference in the market value of the short position and cash collateral deposited with the broker. These fees are included as short sale fees on the statements of operations.
Swap Agreements.Core Plus Bond Account invested in swap agreements during the period. Swap agreements are negotiated agreements between an account and a counterparty to exchange a series of cash flows at specified intervals based upon, or calculated by reference to, changes in specified prices or rates for a specified amount of an underlying asset. An account may enter into credit default, interest rate, or total return swap agreements to manage its exposure to credit, interest rate, or market risk. In connection with these agreements, securities may be identified as collateral in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency.
Swap agreements are valued through a pricing service or using procedures established and periodically reviewed by the Fund’s Board of Directors; changes in value are recorded as unrealized gain or loss. These unrealized gains or losses are included as a component of total distributable earnings (loss) on investments on the statements of assets and liabilities.
Upon termination of swap agreements, the Accounts recognize a realized gain or loss. Net periodic payments to be received or paid are accrued daily and are recorded in the statements of operations as realized gains or losses.
Payments received or made at the beginning of the measurement period are reflected as such on the statements of assets and liabilities and represent payments made or received upon entering into the swap agreement to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, interest rates, and other relevant factors). These upfront payments are amortized daily over the term of the swap agreement as realized gains or losses on the statements of operations.
Notional principal amounts are used to express the extent of involvement in these agreements. Risks may exceed amounts shown on the statements of assets and liabilities. These risks include changes in the returns of the underlying instruments, unfavorable interest rate fluctuation, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements, and the possible lack of liquidity with respect to the swap agreements.
The Accounts and any counterparty are required to maintain an agreement that requires the Accounts and that counterparty to monitor the net fair value of all derivative transactions entered into pursuant to the contract between the Accounts and such counterparty. If the net fair value of such derivatives transactions between the Accounts and that counterparty exceeds a certain threshold (as defined in the agreement), the Accounts or the counterparty are required to post cash and/or securities as collateral. Fair values of derivatives transactions presented in the financial statements are not netted with the fair values of other derivatives transactions or with any collateral amounts posted by the Accounts or any counterparty.
Credit default swaps involve commitments to pay a fixed rate at a predetermined frequency in exchange for a lump sum payment if a “credit event”, as defined in the agreement, affecting a third party occurs. Credit events may include a failure to pay interest, bankruptcy, restructuring, or other event as defined in the agreement. A “buyer” of credit protection agrees to pay a counterparty to assume the credit risk of an issuer upon the occurrence of a credit event. The “seller” of the protection receives periodic payments and agrees to assume the credit risk of an issuer upon the occurrence of a credit event. As the seller of credit protection, an account would add leverage to its portfolio because, in addition to its total net assets, an account would be subject to investment exposure on the notional amount of the swap.
If an account is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the account will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. If an account is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, an account will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation, other deliverable obligations or underlying securities comprising the referenced index or (ii) receive a net settlement
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Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
3. Operating Policies (continued)
amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
Credit default swap agreements on credit indices involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising the credit index. A credit index is a basket of credit instruments or exposures designed to be representative of some part of the credit market as a whole. These indices are made up of reference credits that are judged by a poll of dealers to be the most liquid entities in the credit default swap market based on the sector of the index. Components of the indices may include, but are not limited to, investment grade securities, high yield securities, asset backed securities, emerging markets, and/or various credit ratings within each sector. Credit indices are traded using credit default swaps with standardized terms including a fixed spread and standard maturity dates. An index credit default swap references all the names in the index, and if there is a default, the credit event is settled based on that name’s weight in the index. The composition of the indices changes periodically, usually every six months, and for most indices, each name has an equal weight in the index. An account may use credit default swaps on credit indices to hedge a portfolio of credit default swaps or bonds, which is less expensive than it would be to buy many credit default swaps to achieve a similar effect. Credit default swaps on indices are benchmarks for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.
For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credit spreads and increasing values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
The maximum potential amount of future payments (undiscounted) that an account as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of December 31, 2018 for which an account is the seller of protection are disclosed in the footnotes to the schedules of investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by an account for the same referenced entity or entities.
Interest rate swaps involve the commitment to exchange fixed or floating rate cash flows based on changes in the value of a specific reference rate.
Certain collateral amounts relate to exchange cleared swaps which are not subject to master netting agreements with counterparties.
To Be Announced Securities.The Accounts may trade portfolio securities on a TBA or when-issued basis. In a TBA or when-issued transaction, the Accounts commit to purchase or sell securities for which all specific information is not known at the time of the trade. Securities purchased on a TBA or when-issued basis are not settled until they are delivered to the Accounts, normally 15 to 30 days later. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other portfolio securities.
UnderlyingFunds.TheperformanceandrisksofeachPrincipalLifeTimeAccount,SAMPortfolio,DiversifiedBalancedAccount,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, Multi-Asset Income Account (singly, “a fund of funds” and collectively, “the funds of funds”) directly correspond to the performance and risks of the Underlying Funds in which the fund of funds invest. By investing in many Underlying Funds, the funds of funds have partial exposure to the risks of many different areas of the market. The more a fund of funds allocates to stock funds, the greater the expected risk.
An Underlying Fund to a fund of funds may experience relatively large redemptions or purchases as the fund of funds periodically reallocates or rebalances its assets. These transactions may accelerate the realization of taxable income if sales of portfolio securities result in gains and could increase transaction costs. In addition, when a fund of funds reallocates or redeems significant assets away from an Underlying Fund, the loss of assets to the Underlying Fund could result in increased expense ratios for that fund.
The Manager is the advisor to the Fund, Principal Funds, Inc., and some of the Underlying Funds. Principal Real Estate Investors, LLC serves as sub-advisor to some of the Underlying Funds. The Manager is committed to minimizing the potential impact of Underlying Fund risk on Underlying Funds to the extent consistent with pursuing the investment objectives of the fund of funds which it manages. Each may face conflicts of interest in fulfilling its responsibilities to all such funds.
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Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
3. Operating Policies (continued)
As of December 31, 2018, series of the Fund owned the following percentages, in the aggregate, of the outstanding shares of the Accounts listed below:
Total Percentage of | |||
Account | Outstanding Shares Owned | ||
Bond Market Index Account | 99.51 | % | |
Core Plus Bond Account | 24.18 | ||
Equity Income Account | 31.06 | ||
Government & High Quality Bond Account | 39.90 | ||
Income Account | 92.64 | ||
LargeCap S&P 500 Index Account | 88.90 | ||
LargeCap S&P 500 Managed Volatility Index | |||
Account | 100.00 | ||
Short-Term Income Account | 17.57 |
U.S. Government Agencies or Government-Sponsored Enterprises.Certain of the Accounts may invest in U.S. Government agencies or government-sponsored enterprises. U.S. Government securities are obligations of, and in certain cases, guaranteed by, the U.S. Government or its agencies. The U.S. Government does not guarantee the net asset value of the Accounts’ shares. Some U.S. Government securities such as treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA”) are supported by the full faith and credit of the U.S. Government. Other securities, such as those of the Federal Home Loan Bank are supported by the right of the issuer to borrow from the U.S. Department of the Treasury. Still other securities, such as those of the Federal National Mortgage Association (“FNMA”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations.
Government related guarantors (those not backed by the full faith and credit of the U.S Government) include 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 FNMApurchases conventional residential mortgages from a list of approved seller/servicers which include state and federally chartered savings and loan associations, mutual savings banks, commercial banks, credit unions, and mortgage bankers. Pass-through securities issued by the FNMA are guaranteed as to the timely payment of principal and interest by the FNMA, but are not backed by the full faith and credit of the U.S. Government. The FHLMC issues Participation Certificates which are pass-through securities, each representing an undivided interest in a pool of residential mortgages. The FHLMC guarantees the timely payment of interest and ultimate collection of principal, but Participation Certificates are not backed by the full faith and credit of the U.S. Government.
Derivatives.The following tables provide information about where in the statements of assets and liabilities and statements of operations information about derivatives can be found (amounts in thousands):
Asset Derivatives December 31, 2018 | Liability DerivativesDecember 31, 2018 | ||||||||
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 (loss) | $ | 207 | * | Payables, Total distributable earnings (loss) | $ | — | ||
Interest rate contracts | Receivables, Total distributable earnings (loss) | $ | 493 | * | Payables, Total distributable earnings (loss) | $ | 174 | * | |
Total | $ | 700 | * | $ | 174 | * | |||
Diversified Balanced Volatility Control Account | |||||||||
Equity contracts | Receivables, Total distributable earnings (loss) | $ | — | Payables, Total distributable earnings (loss) | $ | 48 | * | ||
Diversified Growth Volatility Control Account | |||||||||
Equity contracts | Receivables, Total distributable earnings (loss) | $ | — | Payables, Total distributable earnings (loss) | $ | 1,487 | * | ||
LargeCapGrowth Account I | |||||||||
Equity contracts | Receivables, Total distributable earnings (loss) | $ | — | Payables, Total distributable earnings (loss) | $ | 2 | * | ||
LargeCapS&P 500 Index Account | |||||||||
Equity contracts | Receivables, Total distributable earnings (loss) | $ | — | Payables, Total distributable earnings (loss) | $ | 1,277 | * | ||
LargeCapS&P 500 Managed Volatility Index Account | |||||||||
Equity contracts | Receivables, Total distributable earnings (loss) | $1,393 | Payables, Total distributable earnings (loss) | $ | 1,307 | * |
*Includes cumulative unrealized appreciation/depreciation of futures contracts as shown in the schedules of investments. Only the portion of the unrealized appreciation/depreciation not yet cash settled is shown in the statements of assets and liabilities as variation margin.
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December 31, 2018 | ||||||||||
3. Operating Policies (continued) | ||||||||||
Net Realized Gain or (Loss) on | Net Change in Unrealized Appreciation/ | |||||||||
Derivatives not accounted for | Location of Gain or (Loss) on Derivatives | Derivatives Recognized in Statement of | (Depreciation) of Derivatives Recognized | |||||||
as hedging instruments | Recognized in Statement of Operations | Operations | in Statement of Operations | |||||||
Core Plus Bond Account | ||||||||||
Credit contracts | Net realized gain (loss) from Swap agreements/ | $ | (219 | ) | $ | 207 | ||||
Net change in unrealized appreciation/ | ||||||||||
(depreciation) of Swap agreements | ||||||||||
Interest rate contracts | Net realized gain (loss) from Futures contracts/ | $ | 83 | $ | 238 | |||||
Net change in unrealized appreciation/ | ||||||||||
(depreciation) of Futures contracts | ||||||||||
Total | $ | (136 | ) | $ | 445 | |||||
Diversified Balanced Volatility Control Account | ||||||||||
Equity contracts | Net realized gain (loss) from Futures contracts/ | $ | (3 | ) | $ | (48 | ) | |||
Net change in unrealized appreciation/ | ||||||||||
(depreciation) of Futures contracts | ||||||||||
Diversified Growth Volatility Control Account | ||||||||||
Equity contracts | Net realized gain (loss) from Futures contracts/ | $ | (315 | ) | $ | (1,487 | ) | |||
Net change in unrealized appreciation/ | ||||||||||
(depreciation) of Futures contracts | ||||||||||
LargeCapGrowth Account I | ||||||||||
Equity contracts | Net realized gain (loss) from Futures contracts/ | $ | 185 | $ | (70 | ) | ||||
Net change in unrealized appreciation/ | ||||||||||
(depreciation) of Futures contracts | ||||||||||
LargeCapS&P 500 Index Account | ||||||||||
Equity contracts | Net realized gain (loss) from Futures contracts/ | $ | (827 | ) | $ | (1,470 | ) | |||
Net change in unrealized appreciation/ | ||||||||||
(depreciation) of Futures contracts | ||||||||||
LargeCapS&P 500 Managed Volatility Index Account | ||||||||||
Equity contracts | Net realized gain (loss) from Investment | $ | 1,046 | $ | (263 | ) | ||||
transactions, Futures contracts, and Options and | ||||||||||
swaptions/Net change in unrealized appreciation/ | ||||||||||
(depreciation) of Investments, Futures contracts, | ||||||||||
and Options andswaptions |
Long equity futures contracts are used to obtain market exposure for the cash balances that are maintained by certain of the Accounts and the notional values of the futures contracts will vary in accordance with changing cash balances. Long and short U.S. Treasury futures contracts are used to obtain interest rate exposure in order to manage duration of the Core Plus Bond Account.
The following table includes a summary of the average quarterly outstanding notional by derivative instrument type for the year ended December 31, 2018:
Contract Type | Derivative Type | Average Notional (‘000) | |
Core Plus Bond Account | |||
Credit Contracts | Exchange Cleared Credit Default Swaps - Buy Protection | $ | 11,926 |
Interest Rate Contracts | Futures - Long | 20,892 | |
Futures - Short | 7,708 | ||
Diversified Balanced Volatility Control | |||
Account | |||
Equity Contracts | Futures - Short | 877 | |
Diversified Growth Volatility Control | |||
Account | |||
Equity Contracts | Futures - Short | 27,307 | |
LargeCapGrowth Account I | |||
Equity Contracts | Futures - Long | 4,924 | |
LargeCapS&P 500 Index Account | |||
Equity Contracts | Futures - Long | 56,164 | |
LargeCapS&P 500 Managed Volatility | |||
Index Account | |||
Equity Contracts | Futures - Long | 4,329 | |
Purchased Options | 44 | ||
Written Options | 44 |
92
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
4. Fair Valuation
Fair value is defined as the price that the Accounts 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 Accounts may use one or more of the following approaches: market, income and/or cost. A hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Accounts. Unobservable inputs are inputs that reflect the account’s own estimates about the estimates market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.
The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
Level 1 – Quoted prices are available in active markets for identical securities as of the reporting date. 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, prepayment speeds, credit risk, etc.). Investments which are generally included in this category include certain foreign equities, corporate bonds, senior floating rate interests, municipal bonds, and U.S. Government and Government Agency Obligations.
Level 3 – Significant unobservable inputs (including the Accounts’assumptions in determining the fair value of investments). Investments which may be included in this category include certain common stocks, corporate bonds, mortgage backed securities or senior floating rate interests.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the market place, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Accounts in determining fair value is greatest for instruments categorized in Level 3.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Fair value is a market based measure considered from the perspective of a market participant who holds the asset rather than an entity specific measure. Therefore, even when market assumptions are not readily available, the Accounts’ own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Accounts use prices and inputs that are current as of the measurement date, when available.
Investments which are included in the Level 3 category may be valued using indicative quoted prices from brokers and dealers participating in the market for these investments. These investments are classified as Level 3 investments due to the lack of market transparency and market corroboration to support these quoted prices. Valuation models may be used as the pricing source for other investments classified as Level 3. Valuation models rely on one or more significant unobservable inputs such as 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 Directors. 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 Directors. 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
93
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
4. Fair Valuation (continued)
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 Accounts (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.
The following is a summary of the inputs used as of December 31, 2018 in valuing the Accounts’securities carried at value (amounts shown in thousands):
Level 2 - Other | |||||||||||
Level 1 - Quoted | Significant Observable | Level 3 - Significant | |||||||||
Account | Prices | Inputs | Unobservable Inputs Totals (Level 1,2,3) | ||||||||
Bond Market Index Account | |||||||||||
Bonds* | $ | — | $ | 728,720 | $ | 61 | $ | 728,781 | |||
Investment Companies | 121,122 | — | — | 121,122 | |||||||
Municipal Bonds* | — | 18,658 | — | 18,658 | |||||||
U.S. Government & Government Agency Obligations* | — | 1,469,789 | — | 1,469,789 | |||||||
Total investments in securities $ | 121,122 | $ | 2,217,167 | $ | 61 | $ | 2,338,350 | ||||
Short Sales | |||||||||||
U.S. Government & Government Agency Obligations | — | (11,381 | ) | — | (11,381 | ) | |||||
Total Short Sales$ | — | $ | (11,381 | ) | $ | — | $ | (11,381 | ) | ||
Core Plus Bond Account | |||||||||||
Bonds* | — | 186,733 | — | 186,733 | |||||||
Common Stocks* | 35 | — | — | 35 | |||||||
Investment Companies | 3,894 | — | — | 3,894 | |||||||
Preferred Stocks | |||||||||||
Communications | 127 | — | — | 127 | |||||||
Consumer, Non-cyclical | — | 8 | — | 8 | |||||||
Senior Floating Rate Interests* | — | 5,813 | — | 5,813 | |||||||
U.S. Government & Government Agency Obligations* | — | 108,466 | — | 108,466 | |||||||
Total investments in securities $ | 4,056 | $ | 301,020 | $ | — | $ | 305,076 | ||||
Assets | |||||||||||
Credit Contracts | |||||||||||
Exchange Cleared Credit Default Swaps** | — | 207 | — | 207 | |||||||
Interest Rate Contracts | |||||||||||
Futures** | 493 | — | — | 493 | |||||||
Liabilities | |||||||||||
Interest Rate Contracts | |||||||||||
Futures** | (174 | ) | — | — | (174 | ) | |||||
Diversified Balanced Account | |||||||||||
Bonds* | — | 3 | — | 3 | |||||||
Investment Companies | 1,005,468 | — | — | 1,005,468 | |||||||
Preferred Stocks | |||||||||||
Consumer, Non-cyclical | — | 1 | — | 1 | |||||||
Total investments in securities $ | 1,005,468 | $ | 4 | $ | — | $ | 1,005,472 | ||||
Diversified Balanced Managed Volatility Account | |||||||||||
Investment Companies | 162,212 | — | — | 162,212 | |||||||
Total investments in securities $ | 162,212 | $ | — | $ | — | $ | 162,212 | ||||
Diversified Balanced Volatility Control Account | |||||||||||
Investment Companies | 53,850 | — | — | 53,850 | |||||||
Total investments in securities $ | 53,850 | $ | — | $ | — | $ | 53,850 | ||||
Liabilities | |||||||||||
Equity Contracts | |||||||||||
Futures** | (48 | ) | — | — | (48 | ) |
94
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December 31, 2018 | ||||||||||
4. Fair Valuation (continued) | ||||||||||
Level 2 - Other | ||||||||||
Level 1 - Quoted | Significant Observable | Level 3 - Significant | ||||||||
Account | Prices | Inputs | Unobservable Inputs Totals (Level 1,2,3) | |||||||
Diversified Growth Account | ||||||||||
Investment Companies | $ | 3,489,236 | $ | — | $ | — | $ | 3,489,236 | ||
Total investments in securities $ | 3,489,236 | $ | — | $ | — | $ | 3,489,236 | |||
Diversified Growth Managed Volatility Account | ||||||||||
Investment Companies | 325,317 | — | — | 325,317 | ||||||
Total investments in securities $ | 325,317 | $ | — | $ | — | $ | 325,317 | |||
Diversified Growth Volatility Control Account | ||||||||||
Investment Companies | 310,931 | — | — | 310,931 | ||||||
Total investments in securities $ | 310,931 | $ | — | $ | — | $ | 310,931 | |||
Liabilities | ||||||||||
Equity Contracts | ||||||||||
Futures** | (1,487 | ) | — | — | (1,487 | ) | ||||
Diversified Income Account | ||||||||||
Investment Companies | 241,397 | — | — | 241,397 | ||||||
Total investments in securities $ | 241,397 | $ | — | $ | — | $ | 241,397 | |||
Diversified International Account | ||||||||||
Common Stocks | ||||||||||
Basic Materials | 1,442 | 10,260 | — | 11,702 | ||||||
Communications | 2,549 | 12,195 | — | 14,744 | ||||||
Consumer, Cyclical | 4,908 | 35,692 | — | 40,600 | ||||||
Consumer, Non-cyclical | 2,147 | 37,797 | — | 39,944 | ||||||
Energy | 2,734 | 15,509 | — | 18,243 | ||||||
Financial | 10,941 | 50,201 | — | 61,142 | ||||||
Industrial | 3,068 | 19,548 | — | 22,616 | ||||||
Technology | — | 18,943 | — | 18,943 | ||||||
Utilities | — | 3,935 | — | 3,935 | ||||||
Investment Companies | 1,664 | — | — | 1,664 | ||||||
Preferred Stocks | ||||||||||
Diversified | — | 886 | — | 886 | ||||||
Total investments in securities $ | 29,453 | $ | 204,966 | $ | — | $ | 234,419 | |||
Equity Income Account | ||||||||||
Common Stocks* | 649,647 | — | — | 649,647 | ||||||
Investment Companies | 8,817 | — | — | 8,817 | ||||||
Total investments in securities $ | 658,464 | $ | — | $ | — | $ | 658,464 | |||
Government & High Quality Bond Account | ||||||||||
Bonds* | — | 66,595 | — | 66,595 | ||||||
Investment Companies | 1,278 | — | — | 1,278 | ||||||
U.S. Government & Government Agency Obligations* | — | 155,215 | — | 155,215 | ||||||
Total investments in securities $ | 1,278 | $ | 221,810 | $ | — | $ | 223,088 | |||
Income Account | ||||||||||
Bonds* | — | 109,688 | — | 109,688 | ||||||
Common Stocks | ||||||||||
Energy | 391 | — | — | 391 | ||||||
Industrial | — | — | 4,735 | 4,735 | ||||||
Utilities | — | — | 284 | 284 | ||||||
Convertible Bonds* | — | 1,175 | — | 1,175 | ||||||
Investment Companies | 1,795 | — | — | 1,795 | ||||||
Senior Floating Rate Interests* | — | 1,196 | — | 1,196 | ||||||
U.S. Government & Government Agency Obligations* | — | 61,658 | — | 61,658 | ||||||
Total investments in securities $ | 2,186 | $ | 173,717 | $ | 5,019 | $ | 180,922 | |||
International Emerging Markets Account | ||||||||||
Common Stocks | ||||||||||
Basic Materials | — | 5,188 | — | 5,188 | ||||||
Communications | 4,967 | 9,819 | — | 14,786 | ||||||
Consumer, Cyclical | 1,138 | 5,391 | — | 6,529 |
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December 31, 2018 | |||||||||||
4. Fair Valuation (continued) | |||||||||||
Level 2 - Other | |||||||||||
Level 1 - Quoted | Significant Observable | Level 3 - Significant | |||||||||
Account | Prices | Inputs | Unobservable Inputs Totals (Level 1,2,3) | ||||||||
International Emerging Markets Account | |||||||||||
Consumer, Non-cyclical | $ | — | $ | 3,212 | $ | — | $ | 3,212 | |||
Energy | — | 8,446 | — | 8,446 | |||||||
Financial | 2,052 | 20,553 | — | 22,605 | |||||||
Industrial | — | 4,490 | — | 4,490 | |||||||
Technology | — | 13,403 | — | 13,403 | |||||||
Utilities | — | 1,572 | — | 1,572 | |||||||
Investment Companies | 2,711 | — | — | 2,711 | |||||||
Preferred Stocks | |||||||||||
Diversified | — | 899 | — | 899 | |||||||
Financial | — | 910 | — | 910 | |||||||
Total investments in securities $ | 10,868 | $ | 73,883 | $ | — | $ | 84,751 | ||||
LargeCapGrowth Account | |||||||||||
Common Stocks* | 97,684 | — | — | 97,684 | |||||||
Investment Companies | 2,326 | — | — | 2,326 | |||||||
Total investments in securities $ | 100,010 | $ | — | $ | — | $ | 100,010 | ||||
LargeCapGrowth Account I | |||||||||||
Common Stocks | |||||||||||
Basic Materials | 4,812 | — | — | 4,812 | |||||||
Communications | 59,421 | — | 6 | 59,427 | |||||||
Consumer, Cyclical | 22,320 | — | — | 22,320 | |||||||
Consumer, Non-cyclical | 82,546 | — | — | 82,546 | |||||||
Energy | 227 | — | — | 227 | |||||||
Financial | 25,679 | — | — | 25,679 | |||||||
Industrial | 30,162 | — | — | 30,162 | |||||||
Technology | 64,441 | — | — | 64,441 | |||||||
Utilities | 1,537 | — | — | 1,537 | |||||||
Convertible Preferred Stocks | |||||||||||
Communications | — | — | 986 | 986 | |||||||
Investment Companies | 6,372 | — | — | 6,372 | |||||||
Preferred Stocks | |||||||||||
Technology | — | 51 | 153 | 204 | |||||||
Total investments in securities $ | 297,517 | $ | 51 | $ | 1,145 | $ | 298,713 | ||||
Liabilities | |||||||||||
Equity Contracts | |||||||||||
Futures** | (2 | ) | — | — | (2 | ) | |||||
LargeCapS&P 500 Index Account | |||||||||||
Common Stocks* | 2,329,353 | — | — | 2,329,353 | |||||||
Investment Companies | 60,372 | — | — | 60,372 | |||||||
Total investments in securities $ | 2,389,725 | $ | — | $ | — | $ | 2,389,725 | ||||
Liabilities | |||||||||||
Equity Contracts | |||||||||||
Futures** | (1,277 | ) | — | — | (1,277 | ) | |||||
LargeCapS&P 500 Managed Volatility Index Account | |||||||||||
Common Stocks* | 186,672 | — | — | 186,672 | |||||||
Investment Companies | 17,784 | — | — | 17,784 | |||||||
Purchased Options | 1,393 | — | — | 1,393 | |||||||
Total investments in securities $ | 205,849 | $ | — | $ | — | $ | 205,849 | ||||
Liabilities | |||||||||||
Equity Contracts | |||||||||||
Futures** | (192 | ) | — | — | (192 | ) | |||||
Written Options | (1,115 | ) | — | — | (1,115 | ) | |||||
MidCap Account | |||||||||||
Common Stocks* | 487,713 | — | — | 487,713 | |||||||
Investment Companies | 4,942 | — | — | 4,942 | |||||||
Total investments in securities $ | 492,655 | $ | — | $ | — | $ | 492,655 | ||||
Multi-Asset Income Account | |||||||||||
Investment Companies | 386 | — | — | 386 | |||||||
Total investments in securities $ | 386 | $ | — | $ | — | $ | 386 |
96
Notes to Financial Statements | ||||||||
Principal Variable Contracts Funds, Inc. | ||||||||
December 31, 2018 | ||||||||
4. Fair Valuation (continued) | ||||||||
Level 2 - Other | ||||||||
Level 1 - Quoted | Significant Observable | Level 3 - Significant | ||||||
Account | Prices | Inputs | Unobservable Inputs Totals (Level 1,2,3) | |||||
Principal Capital Appreciation Account | ||||||||
Common Stocks* | $ | 133,358 | $ | — | $ | — | $ | 133,358 |
Investment Companies | 2,989 | — | — | 2,989 | ||||
Total investments in securities $ | 136,347 | $ | — | $ | — | $ | 136,347 | |
Principal LifeTime 2010 Account | ||||||||
Investment Companies | 31,893 | — | — | 31,893 | ||||
Total investments in securities $ | 31,893 | $ | — | $ | — | $ | 31,893 | |
Principal LifeTime 2020 Account | ||||||||
Investment Companies | 173,490 | — | — | 173,490 | ||||
Total investments in securities $ | 173,490 | $ | — | $ | — | $ | 173,490 | |
Principal LifeTime 2030 Account | ||||||||
Investment Companies | 142,420 | — | — | 142,420 | ||||
Total investments in securities $ | 142,420 | $ | — | $ | — | $ | 142,420 | |
Principal LifeTime 2040 Account | ||||||||
Investment Companies | 63,402 | — | — | 63,402 | ||||
Total investments in securities $ | 63,402 | $ | — | $ | — | $ | 63,402 | |
Principal LifeTime 2050 Account | ||||||||
Investment Companies | 31,284 | — | — | 31,284 | ||||
Total investments in securities $ | 31,284 | $ | — | $ | — | $ | 31,284 | |
Principal LifeTime 2060 Account | ||||||||
Investment Companies | 4,653 | — | — | 4,653 | ||||
Total investments in securities $ | 4,653 | $ | — | $ | — | $ | 4,653 | |
Principal LifeTime Strategic Income Account | ||||||||
Investment Companies | 20,666 | — | — | 20,666 | ||||
Total investments in securities $ | 20,666 | $ | — | $ | — | $ | 20,666 | |
Real Estate Securities Account | ||||||||
Common Stocks* | 135,519 | — | — | 135,519 | ||||
Investment Companies | 911 | — | — | 911 | ||||
Total investments in securities $ | 136,430 | $ | — | $ | — | $ | 136,430 | |
SAM Balanced Portfolio | ||||||||
Investment Companies | 664,593 | — | — | 664,593 | ||||
Total investments in securities $ | 664,593 | $ | — | $ | — | $ | 664,593 | |
SAM Conservative Balanced Portfolio | ||||||||
Investment Companies | 174,647 | — | — | 174,647 | ||||
Total investments in securities $ | 174,647 | $ | — | $ | — | $ | 174,647 | |
SAM Conservative Growth Portfolio | ||||||||
Investment Companies | 307,664 | — | — | 307,664 | ||||
Total investments in securities $ | 307,664 | $ | — | $ | — | $ | 307,664 | |
SAM Flexible Income Portfolio | ||||||||
Investment Companies | 182,558 | — | — | 182,558 | ||||
Total investments in securities $ | 182,558 | $ | — | $ | — | $ | 182,558 | |
SAM Strategic Growth Portfolio | ||||||||
Investment Companies | 254,815 | — | — | 254,815 | ||||
Total investments in securities $ | 254,815 | $ | — | $ | — | $ | 254,815 | |
Short-Term Income Account | ||||||||
Bonds* | — | 146,743 | — | 146,743 | ||||
Investment Companies | 4,856 | — | — | 4,856 | ||||
U.S. Government & Government Agency Obligations* | — | 4,181 | — | 4,181 | ||||
Total investments in securities $ | 4,856 | $ | 150,924 | $ | — | $ | 155,780 |
97
Notes to Financial Statements | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
December 31, 2018 | |||||||||
4. Fair Valuation (continued) | |||||||||
Level 2 - Other | |||||||||
Level 1 - Quoted | Significant Observable | Level 3 - Significant | |||||||
Account | Prices | Inputs | Unobservable Inputs | Totals (Level 1,2,3) | |||||
SmallCap Account | |||||||||
Common Stocks* | $ | 165,274 | $ | — | $ | — | $ | 165,274 | |
Investment Companies | 1,443 | — | — | 1,443 | |||||
Total investments in securities $ | 166,717 | $ | — | $ | — | $ | 166,717 |
*For additional detail regarding sector classifications, please see the Schedule of Investments. **Exchange cleared swaps and futures are presented at the unrealized appreciation/(depreciation) of the instrument.
Certain detailed information is provided for thoseAccounts 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):
Fair Value as of | ||||||||
Account | Asset Type | December 31, 2018 | Valuation Technique | Unobservable Input | Input Valuations | |||
Income Account | Common Stock | $ 4,735 Enterprise Valuation Model* | EBITDA Multiples | 0.95 – 1.15 | x | |||
Common Stock | 284 Indicative Market Quotations | Broker Quote | $ | 140.00 | ||||
$ | 5,019 |
*As of December 31, 2018, a Level 3 security changed its valuation approach from an enterprise valuation model with comparable company and discounted cash flow techniques to an enterprise valuation model with comparable company technique. The change in the valuation approach is driven by the Valuation Committee’s decision that prospective financial information is not updated timely to account for external market factors. The appropriateness of the fair value of this security is monitored by the Valuation Committee.
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):
Accrued | Net Change | |||||||||||||||||
Discounts/ | in Unrealized | |||||||||||||||||
Premiums | Appreciation/ | |||||||||||||||||
Value | Realized | and Change | Transfers | Transfers | Value | (Depreciation) on | ||||||||||||
December | Gain/ | in Unrealized | Proceeds | into | Out of | December 31, | Investments Held at | |||||||||||
Account | 31, 2017 | (Loss) | Gain/ (Loss) | Purchases | from Sales | Level 3* | Level 3** | 2018 | December 31, 2018 | |||||||||
Income Account | ||||||||||||||||||
Common Stock | ||||||||||||||||||
Industrial | $ | 3,630 | $ | — | $ | 1,105 | $ | — | $ | — | $ | — | $ | — | $ | 4,735 | $ | 1,105 |
Utilities | — | — | 62 | 222 | — | — | — | 284 | 62 | |||||||||
Total | $ | 3,630 | $ | — | $ | 1,167 | $ | 222 | $ | — | $ | — | $ | — | $ | 5,019 | $ | 1,167 |
*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 services
**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
At the end of the year, there were no other Accounts which had a significant Level 3 balance. During the year, there were no significant purchases, sales, or transfers into or out of Level 3, except as noted above.
5. Management Agreement and Transactions with Affiliates
Management Services.The Accounts have agreed to pay investment advisory and management fees to the Manager computed at an annual percentage rate of each account’s average daily net assets. A portion of the management fee is paid by the Manager to the sub-advisor of each of the Accounts, some of which are affiliates of the Manager. The annual rate paid by the SAM Portfolios is based upon the aggregate average daily net assets (“aggregate net assets”) of the SAM Portfolios. The investment advisory and management fee schedule for the SAM Portfolios is .25% of aggregate net assets up to the first $1 billion and .20% of aggregate net assets over $1 billion. The Principal LifeTime Accounts do not pay investment advisory and management fees. The annual rates used in this calculation for each of the other Accounts areas follows:
98
Notes to Financial Statements | |||||||||||||
Principal Variable Contracts Funds, Inc. | |||||||||||||
December 31, 2018 | |||||||||||||
5. Management Agreement and Transactions with Affiliates (continued) | |||||||||||||
Net Assets of Accounts (in millions) | |||||||||||||
First $100 | Next $100 | Next $100 | Next $100 | Thereafter | |||||||||
Core Plus Bond Account | .50 | % | .45 | % | .40 | % | .35 | % | .30 | % | |||
Equity Income Account | .60 | .55 | .50 | .45 | .40 | ||||||||
LargeCap Growth Account I | .80 | .75 | .70 | .65 | .60 | ||||||||
MidCap Account | .65 | .60 | .55 | .50 | .45 | ||||||||
Real Estate Securities Account | .90 | .85 | .80 | .75 | .70 | ||||||||
SmallCapAccount | .85 | .80 | .75 | .70 | .65 | ||||||||
Net Assets of Accounts (in millions) | |||||||||||||
First $250 | Next $250 | Next $250 | Next $250 | Thereafter | |||||||||
Diversified International Account | .85 | % | .80 | % | .75 | % | .70 | % | .65 | % | |||
International Emerging Markets Account | 1.25 | 1.20 | 1.15 | 1.10 | 1.05 | ||||||||
Net Assets of Account (in millions) | |||||||||||||
First | Next | Over | |||||||||||
$ | 200 | $ | 300 | $ | 500 | ||||||||
Short-Term Income Account | .50 | % | .45 | % | .40 | % | |||||||
Net Assets of Account (in millions) | |||||||||||||
First | Over | ||||||||||||
$ | 500 | $ | 500 | ||||||||||
Principal Capital Appreciation Account | .625 | % | .50 | % | |||||||||
Net Assets of Account | |||||||||||||
First $500 | Next $500 | Next $1 | Next $1 | Over $3 | |||||||||
million | million | billion | billion | billion | |||||||||
LargeCap Growth Account | .68 | % | .63 | % | .61 | % | .56 | % | .51 | % | |||
Net Assets of Accounts (in billions) | |||||||||||||
First $2 | Over $2 | ||||||||||||
Government & High Quality Bond Account | .50 | % | .45 | % | |||||||||
Income Account | .50 | .45 | |||||||||||
All Net Assets | |||||||||||||
Bond Market Index Account | .25 | % | |||||||||||
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 | .45 | ||||||||||||
Account | |||||||||||||
Multi-Asset Income Account | .03 |
The Manager contractually agreed to limit the expenses (including acquired fund fees and expenses, but excluding interest expense, expenses related to fund investments, and other extraordinary expenses) for certain classes of shares of certain of the Accounts. The reductions and reimbursements are in amounts that maintain total operating expenses at or below certain limits. The limits are expressed as a percentage of average daily net assets attributable to each class of shares on an annualized basis during the reporting period. The operating expense limits, which expire April 30, 2019, are as follows:
Period from January 1, 2018 | ||||
through December 31, 2018 | ||||
Class 1 | Class 2 | |||
SAM Balanced Portfolio | .86 | % | 1.11 | % |
SAM Conservative Balanced Portfolio | .84 | 1.09 | ||
SAM Conservative Growth Portfolio | .99 | 1.24 | ||
SAM Strategic Growth Portfolio | .99 | 1.24 |
99
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
5. Management Agreement and Transactions with Affiliates (continued)
The Manager has contractually agreed to limit certain of the Accounts’ management and investment advisory fees. The expense limit will reduce the account’s management and investment advisory fees by the following amounts:
Expiration | |||
Bond Market Index Account | .100 | % | April 30, 2019 |
LargeCap Growth Account I | .016 | April 30, 2019 |
The Manager has contractually agreed to limit the expenses (excluding interest expense, expenses related to account investments, acquired fund fees and expenses, and other extraordinary expenses) for certain classes of shares of certain of the Accounts. The reductions and reimbursements are in amounts that maintain total operating expenses at or below certain limits. The limits are expressed as a percentage of average daily net assets attributable to each class of shares on an annualized basis during the reporting period. The operating expenselimits are as follows:
Period fromJanuary 1, 2018through December 31, 2018 | |||||
Class 1 | Class 2 | Expiration | |||
Diversified Balanced Managed Volatility Account | N/A | .31 | % | April 30, 2019 | |
Diversified Balanced Volatility Control Account | N/A | .39 | April 30, 2019 | ||
Diversified Growth Managed Volatility Account | N/A | .31 | April 30, 2019 | ||
Diversified Growth Volatility Control Account | N/A | .39 | April 30, 2019 | ||
International Emerging Markets Account | 1.35 | % | 1.60 | April 30, 2019 | |
Multi-Asset Income Account | .08 | .33 | April 30, 2019 | ||
Principal LifeTime2060 Account | .10 | N/A | April 30, 2019 |
The Manager has contractually agreed to reduce Short-Term Income Account’s expenses by .01% through the period ended April 30, 2019.
In addition, the Manager has voluntarily agreed to limit the expenses (excluding interest expense, expenses related to account investments, acquired fund fees and expenses, and other extraordinary expenses) attributable to Class 2 shares of certain of the Accounts. The reductions and reimbursements are in amounts that maintain total operating expenses at or below certain limits. The limits are expressed as a percentage of average daily net assets on an annualized basis during the reporting period. The expense limit may be terminated at any time. The operatingexpense limits are as follows:
Expense Limit | ||
Class 2 | ||
Diversified Balanced Account | .31 | % |
Diversified Growth Account | .31 | |
Diversified Income Account | .31 |
Amounts owed to the Accounts under the terms of the expense limitation agreements are reflected in the statements of assets and liabilities as expense reimbursement from Manager and are settled periodically.
Distribution Fees.Class 2 shares of the Accounts bear distribution fees. The fee is computed at an annual rate of the average daily net assets attributable to Class 2 shares of each of the Accounts. Distribution fees are paid to Principal Funds Distributor, Inc. (an affiliate of the Manager), the principal distributor of theAccounts.Aportion of the distribution fees may be paid to other selling dealers for providing certain services. The annual distribution fee rate is .25%.
Chief Compliance Officer Expenses.The Accounts pay certain expenses associated with the Chief Compliance Officer (“CCO”). This expense is allocated based on the relative net assets of each account and is shown on the statements of operations.
Affiliated Ownership.AtDecember 31, 2018, Principal Life Insurance Company (an affiliate of the Manager) and/or one or more separate accounts sponsored by Principal Life Insurance Company owned shares of the Accounts as follows (amounts in thousands):
Class 1 | Class 2 | |
Bond Market Index Account | 1,063 | N/A |
Core Plus Bond Account | 19,683 | 71 |
Diversified Balanced Account | 2,473 | 65,063 |
Diversified Balanced Managed Volatility Account | N/A | 14,297 |
Diversified Balanced Volatility Control Account | N/A | 6,494 |
Diversified Growth Account | N/A | 214,081 |
100
Notes to Financial Statements | |
Principal Variable Contracts Funds, Inc. | |
December 31, 2018 | |
5. Management Agreement and Transactions with Affiliates (continued) |
Class 1 | Class 2 | |
Diversified Growth Managed Volatility Account | N/A | 28,015 |
Diversified Growth Volatility Control Account | N/A | 37,113 |
Diversified Income Account | N/A | 19,374 |
Diversified International Account | 16,879 | 79 |
Equity Income Account | 14,756 | 189 |
Government & High Quality Bond Account | 13,531 | 193 |
Income Account | 507 | 141 |
International Emerging Markets Account | 5,515 | 102 |
LargeCap Growth Account | 3,188 | 54 |
LargeCap Growth Account I | 9,838 | 106 |
LargeCap S&P 500 Index Account | 15,719 | 436 |
MidCap Account | 9,607 | N/A |
Multi-Asset Income Account | 32 | 5 |
Principal Capital Appreciation Account | 4,317 | 84 |
Principal LifeTime2010 Account | 2,618 | N/A |
Principal LifeTime2020 Account | 13,665 | 105 |
Principal LifeTime2030 Account | 12,140 | 157 |
Principal LifeTime2040 Account | 4,500 | 47 |
Principal LifeTime2050 Account | 2,270 | 70 |
Principal LifeTime2060 Account | 377 | N/A |
Principal LifeTimeStrategic Income Account | 1,829 | N/A |
Real Estate Securities Account | 7,451 | 183 |
SAM Balanced Portfolio | 37,391 | 953 |
SAM Conservative Balanced Portfolio | 13,645 | 550 |
SAM Conservative Growth Portfolio | 9,511 | 635 |
SAM Flexible Income Portfolio | 12,688 | 1,066 |
SAM Strategic Growth Portfolio | 7,166 | 332 |
Short-Term Income Account | 47,640 | 1,383 |
SmallCapAccount | 11,192 | 91 |
6. Investment Transactions |
For the year ended December 31, 2018, the cost of investment securities purchased and proceeds from investment securities sold (not including short-term investments and U.S. government securities) by the Accounts were as follows (amounts in thousands):
Purchases | Sales | |||
Bond Market Index Account | $ | 1,541,688 | $ | 1,618,689 |
Core Plus Bond Account | 276,736 | 267,923 | ||
Diversified Balanced Account | 174,202 | 269,103 | ||
Diversified Balanced Managed Volatility | ||||
Account | 28,310 | 37,903 | ||
Diversified Balanced Volatility Control | ||||
Account | 70,900 | 49,295 | ||
Diversified Growth Account | 594,490 | 736,163 | ||
Diversified Growth Managed Volatility | ||||
Account | 57,051 | 64,647 | ||
Diversified Growth Volatility Control | ||||
Account | 442,575 | 273,897 | ||
Diversified Income Account | 58,172 | 71,343 | ||
Diversified International Account | 164,306 | 165,612 | ||
Equity Income Account | 80,891 | 101,140 | ||
Government & High Quality Bond Account | 35,654 | 43,957 | ||
Income Account | 15,291 | 39,205 | ||
International Emerging Markets Account | 124,772 | 133,148 | ||
LargeCap Growth Account | 91,997 | 106,893 | ||
LargeCap Growth Account I | 117,597 | 130,563 | ||
LargeCap S&P 500 Index Account | 216,872 | 250,087 | ||
LargeCap S&P 500 Managed Volatility | ||||
Index Account | 22,914 | 31,935 | ||
MidCap Account | 138,979 | 208,065 | ||
Multi-Asset Income Account | 270 | 111 | ||
Principal Capital Appreciation Account | 69,089 | 87,421 | ||
Principal LifeTime2010 Account | 10,858 | 17,775 | ||
Principal LifeTime2020 Account | 54,872 | 58,910 | ||
Principal LifeTime2030 Account | 55,727 | 44,914 | ||
Principal LifeTime2040 Account | 19,452 | 9,604 |
101
Notes to Financial Statements | |||||
Principal Variable Contracts Funds, Inc. | |||||
December 31, 2018 | |||||
6. Investment Transactions (continued) | |||||
Purchases | Sales | ||||
Principal LifeTime2050 Account | 12,268 | 7,616 | |||
Principal LifeTime2060 Account | 4,876 | 5,104 | |||
Principal LifeTimeStrategic Income | |||||
Account | 7,232 | 9,630 | |||
Real Estate Securities Account | 25,522 | 36,403 | |||
SAM Balanced Portfolio | 134,985 | 190,870 | |||
SAM Conservative Balanced Portfolio | 36,907 | 47,113 | |||
SAM Conservative Growth Portfolio | 91,586 | 93,058 | |||
SAM Flexible Income Portfolio | 39,818 | 64,355 | |||
SAM Strategic Growth Portfolio | 108,900 | 107,389 | |||
Short-Term Income Account | 72,670 | 79,934 | |||
SmallCapAccount | 92,191 | 117,041 |
In addition Bond Market Index Account had $11,501,000 of covers on securities sold short and $21,005,000 of securities sold short.
For the year ended December 31, 2018, the cost of U.S. government securities purchased and proceeds from U.S. government securities sold (not including short-term investments) by the Accounts were as follows (amounts in thousands):
Purchases | Sales | |||||
Bond Market Index Account | $ | 1,398,273 | $ | 1,458,926 | ||
Core Plus Bond Account | 113,933 | 106,369 | ||||
Government & High Quality Bond Account | 4,434 | 5,887 | ||||
Income Account | 2,939 | 4,968 | ||||
Short-Term Income Account | 3,300 | 485 |
In addition Bond Market Index Account had $1,459,000 of covers on U.S. government securities sold short and $3,165,000 of U.S. government securities sold short.
7. Federal Tax Information
Distributions to Shareholders.The federal income tax character of distributions paid for the years ended December 31, 2018 and December 31, 2017 were as follows (amounts in thousands):
Long-Term | |||||||||||||
Ordinary Income | Capital Gain* | Section 1250 Gain^ | |||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||
Bond Market Index Account | $ | 52,158 | $42,789 | $ | —$ | —$ | —$ | — | |||||
Core Plus Bond Account | 9,636 | 8,475 | — | — | — | — | |||||||
Diversified Balanced Account | 28,469 | 17,824 | 12,445 | 14,436 | — | — | |||||||
Diversified Balanced Managed Volatility | |||||||||||||
Account | 6,912 | 2,318 | 826 | 1,186 | — | — | |||||||
Diversified Balanced Volatility Control | |||||||||||||
Account | 434 | — | 148 | — | — | — | |||||||
Diversified Growth Account | 106,005 | 52,703 | 29,490 | 56,853 | — | — | |||||||
Diversified Growth Managed Volatility | |||||||||||||
Account | 15,420 | 4,278 | 1,876 | 2,787 | — | — | |||||||
Diversified Growth Volatility Control | |||||||||||||
Account | 2,237 | — | 875 | — | — | — | |||||||
Diversified Income Account | 5,794 | 3,601 | 1,114 | 2,238 | — | — | |||||||
Diversified International Account | 6,007 | 5,068 | — | — | — | — | |||||||
Equity Income Account | 13,448 | 14,151 | 33,719 | 24,202 | — | — | |||||||
Government & High Quality Bond | |||||||||||||
Account | 8,671 | 9,895 | — | — | — | — | |||||||
Income Account | 8,190 | 9,530 | — | — | — | — | |||||||
International Emerging Markets Account | 1,238 | 1,309 | — | — | — | — | |||||||
LargeCap Growth Account | 255 | 410 | 8,664 | — | — | — | |||||||
LargeCap Growth Account I | 452 | 88 | 23,404 | 14,154 | — | — | |||||||
LargeCap S&P 500 Index Account | 45,501 | 44,034 | 83,371 | 47,626 | — | — | |||||||
LargeCap S&P 500 Managed Volatility | |||||||||||||
Index Account | 3,114 | 8,087 | — | 8,343 | — | — | |||||||
MidCap Account | 1,796 | 3,101 | 72,238 | 38,016 | — | — | |||||||
Multi-Asset Income Account | 9 | 4 | 1 | 1 | — | — | |||||||
Principal Capital Appreciation Account | 1,753 | 1,960 | 8,213 | — | — | — |
102
Notes to Financial Statements | ||||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||||
December 31, 2018 | ||||||||||||||
7. Federal Tax Information (continued) | ||||||||||||||
Long-Term | ||||||||||||||
Ordinary Income | Capital Gain* | Section 1250 Gain^ | ||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||
Principal LifeTime2010 Account | 1,158 | 950 | 833 | 547 | — | — | ||||||||
Principal LifeTime2020 Account | 5,625 | 3,822 | 5,222 | 2,218 | — | — | ||||||||
Principal LifeTime2030 Account | 4,192 | 2,293 | 4,713 | 1,671 | — | — | ||||||||
Principal LifeTime2040 Account | 1,460 | 798 | 2,199 | 454 | — | — | ||||||||
Principal LifeTime2050 Account | 834 | 400 | 1,336 | 253 | — | — | ||||||||
Principal LifeTime2060 Account | 124 | 37 | 181 | 21 | — | — | ||||||||
Principal LifeTimeStrategic Income | ||||||||||||||
Account | 631 | 574 | 245 | — | — | — | ||||||||
Real Estate Securities Account | 2,980 | 2,749 | 11,385 | 14,834 | 222 | 247 | ||||||||
SAM Balanced Portfolio | 24,236 | 16,564 | 34,263 | 17,921 | — | — | ||||||||
SAM Conservative Balanced Portfolio | 6,540 | 5,473 | 6,843 | 2,016 | — | — | ||||||||
SAM Conservative Growth Portfolio | 10,266 | 4,876 | 15,434 | 7,121 | — | — | ||||||||
SAM Flexible Income Portfolio | 8,176 | 7,133 | 4,660 | 1,553 | — | — | ||||||||
SAM Strategic Growth Portfolio | 7,336 | 3,694 | 14,491 | 7,442 | — | — | ||||||||
Short-Term Income Account | 3,321 | 3,183 | — | — | — | — | ||||||||
SmallCapAccount | 1,441 | 773 | 12,058 | — | — | — |
*The Accounts designate these distributions as long-term capital gain dividends per IRC Sec. 852 (b)(3)(C) in the 20-percent group (which may be taxed at a 20-percent rate, a 15-percent rate or a 0-percent rate, depending on the shareholder’s taxable income).
^Unrecaptured Section 1250 gains are gains from the sale of depreciable property that are subject to a maximum tax rate of 25%.
Certain Accounts may also utilize earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction.
For U.S. federal income tax purposes, short-term capital gain distributions are considered ordinary income distributions.
Distributable Earnings.As of December 31, 2018, the components of distributable earnings on a federal tax basis were as follows (amounts in thousands):
Total | ||||||||||||||||||
Undistributed | Undistributed | Net Unrealized | Other | Accumulated | ||||||||||||||
Ordinary | Long-Term | Accumulated | Appreciation | Temporary | Earnings | |||||||||||||
Income | Capital Gains | Losses | (Depreciation) | Differences* | (Deficit) | |||||||||||||
Bond Market Index Account | $ | 63,572 | $ | — | $ | (30,485 | ) | $ | (40,862 | ) $ | — $ | (7,775 | ) | |||||
Core Plus Bond Account | 10,175 | — | (6,805 | ) | (10,493 | ) | 91 | (7,032 | ) | |||||||||
Diversified Balanced Account | 19,154 | 42,189 | — | 157,011 | — | 218,354 | ||||||||||||
Diversified Balanced Managed Volatility | ||||||||||||||||||
Account | 2,984 | 2,349 | — | 4,273 | — | 9,606 | ||||||||||||
Diversified Balanced Volatility Control | ||||||||||||||||||
Account | 1,238 | 761 | — | (3,555 | ) | — | (1,556 | ) | ||||||||||
Diversified Growth Account | 66,026 | 132,157 | — | 522,803 | — | 720,986 | ||||||||||||
Diversified Growth Managed Volatility | ||||||||||||||||||
Account | 6,092 | 4,546 | — | 11,480 | — | 22,118 | ||||||||||||
Diversified Growth Volatility Control Account | 5,623 | 4,663 | — | (24,021 | ) | — | (13,735 | ) | ||||||||||
Diversified Income Account | 4,541 | 5,616 | — | 12,646 | — | 22,803 | ||||||||||||
Diversified International Account | 4,108 | 12,521 | — | 2,524 | — | 19,153 | ||||||||||||
Equity Income Account | 17,075 | 16,183 | — | 182,774 | — | 216,032 | ||||||||||||
Government & High Quality Bond Account | 6,456 | — | (8,862 | ) | (7,132 | ) | (39 | ) | (9,577 | ) | ||||||||
Income Account | 7,635 | — | (19 | ) | 1,261 | 70 | 8,947 | |||||||||||
International Emerging Markets Account | 801 | 2,283 | — | 991 | — | 4,075 | ||||||||||||
LargeCap Growth Account | 53 | 18,636 | — | 6,881 | — | 25,570 | ||||||||||||
LargeCap Growth Account I | 244 | 34,548 | — | 75,432 | (15)110,209 | |||||||||||||
LargeCap S&P 500 Index Account | 49,196 | 111,411 | — | 687,866 | — | 848,473 | ||||||||||||
LargeCap S&P 500 Managed Volatility Index | ||||||||||||||||||
Account | 3,610 | 14,917 | — | 30,141 | (17,046 | ) | 31,622 | |||||||||||
MidCap Account | 1,526 | 79,299 | — | 100,053 | — | 180,878 | ||||||||||||
Multi-Asset Income Account | 16 | 2 | — | (29 | ) | — | (11 | ) | ||||||||||
Principal Capital Appreciation Account | 2,596 | 13,120 | — | 40,099 | — | 55,815 | ||||||||||||
Principal LifeTime2010 Account | 910 | 1,712 | — | (424 | ) | — | 2,198 | |||||||||||
Principal LifeTime2020 Account | 4,556 | 8,015 | — | (2,993 | ) | — | 9,578 | |||||||||||
Principal LifeTime2030 Account | 3,600 | 8,675 | — | (5,610 | ) | — | 6,665 | |||||||||||
Principal LifeTime2040 Account | 1,500 | 3,851 | — | (3,200 | ) | — | 2,151 | |||||||||||
Principal LifeTime2050 Account | 718 | 2,142 | — | (1,422 | ) | — | 1,438 | |||||||||||
Principal LifeTime2060 Account | 130 | 325 | — | (451 | ) | — | 4 |
103
Notes to Financial Statements | ||||||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
7. Federal Tax Information (continued) | ||||||||||||||||
Total | ||||||||||||||||
Undistributed | Undistributed | Net Unrealized | Other | Accumulated | ||||||||||||
Ordinary | Long-Term | Accumulated | Appreciation | Temporary | Earnings | |||||||||||
Income | Capital Gains | Losses | (Depreciation) | Differences* | (Deficit) | |||||||||||
Principal LifeTimeStrategic Income Account | 610 | 984 | — | (315 | ) | — | 1,279 | |||||||||
Real Estate Securities Account | 3,463 | ^ | 9,689 | — | 15,761 | — | 28,913 | |||||||||
SAM Balanced Portfolio | 17,360 | 24,097 | — | 41,777 | — | 83,234 | ||||||||||
SAM Conservative Balanced Portfolio | 5,314 | 3,637 | — | 3,247 | — | 12,198 | ||||||||||
SAM Conservative Growth Portfolio | 5,905 | 15,505 | — | 9,048 | — | 30,458 | ||||||||||
SAM Flexible Income Portfolio | 6,505 | 5,218 | — | 732 | — | 12,455 | ||||||||||
SAM Strategic Growth Portfolio | 4,270 | 15,096 | — | (6,605 | ) | — | 12,761 | |||||||||
Short-Term Income Account | 3,393 | — | (989 | ) | (1,224 | ) | (7 | ) | 1,173 | |||||||
SmallCapAccount | 6,339 | 23,412 | — | (6,178 | ) | — | 23,573 | |||||||||
*Represents book-to-tax accounting differences. | ||||||||||||||||
^Undistributed Ordinary Income reported includes $327of undistributed Section 1250 Capital Gains. |
Capital Loss Carryforwards.For federal income tax purposes, capital loss carryforwards are losses that can be used to offset future capital gains of the Accounts. At December 31, 2018, the Accounts had approximate net capital loss carryforwards as follows (amounts in thousands):
Short-Term | Long-Term | Total | |||||||
Bond Market Index Account | $ | 7,790 | $ | 22,695 | $ | 30,485 | |||
Core Plus Bond Account | 2,741 | 4,064 | 6,805 | ||||||
Government & High Quality Bond | |||||||||
Account | 502 | 8,360 | 8,862 | ||||||
Income Account | 19 | — | 19 | ||||||
Short-Term Income Account | 305 | 684 | 989 |
Capital losses generated in taxable years beginning after the enactment date of the Regulated Investment Company Modernization Act of 2010 on December 22, 2010, will be carried forward with no expiration and with the character of the loss retained.
As of December 31, 2018, the following Accounts had expired and utilized capital loss carryforwards as follows (amounts in thousands):
Expired | Utilized | ||||
Income Account | $ | 1,584 | $ | 2,491 | |
International Emerging Markets Account | – | 549 | |||
LargeCap S&P 500 Managed Volatility Index | |||||
Account | – | 6,131 |
Late-Year Losses.A regulated investment company may elect to treat any portion of its qualified late-year loss as arising on the first day of the next taxable year. Qualified late-year losses are certain capital and ordinary losses which occur during the portion of the account’s taxable year subsequent to October 31. For the taxable year ended December 31, 2018, the Accounts do not plan to defer any late-year losses.
Reclassification of Capital Accounts.The Accounts may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Accounts. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Accounts’ distributions may be shown in the accompanying statements of changes in net assets as from net investment income and net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended December 31, 2018, the Accounts recorded reclassifications as follows (amounts in thousands):
Total Distributable | Capital Shares and | |||||||
Earnings (Loss) | Additional Paid-in-Capital | |||||||
Equity Income Account | $ | (6,455 | ) | $ | 6,455 | |||
Income Account | 1,584 | (1,584 | ) | |||||
LargeCap Growth Account I | (5,038 | ) | 5,038 | |||||
LargeCap S&P 500 Index Account | (21,981 | ) | 21,981 | |||||
MidCap Account | (10,946 | ) | 10,946 | |||||
Principal Capital Appreciation Account | (2,184 | ) | 2,184 | |||||
Real Estate Securities Account | 59 | (59 | ) |
104
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
7. Federal Tax Information (continued)
Federal Income Tax Basis.At December 31, 2018, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by the Accounts were as follows (amounts in thousands):
Cost for Federal | |||||||||||
Unrealized | Unrealized | Net Unrealized | Income Tax | ||||||||
Appreciation | (Depreciation) | Appreciation/(Depreciation) | Purposes | ||||||||
Bond Market Index Account | $ | 10,035 | $ | (50,898 | ) | $ | (40,863 | ) | $ | 2,379,163 | |
Core Plus Bond Account | 1,435 | (11,929 | ) | (10,494 | ) | 316,096 | |||||
Diversified Balanced Account | 167,890 | (10,878 | ) | 157,012 | 848,460 | ||||||
Diversified Balanced Managed Volatility Account | 8,082 | (3,810 | ) | 4,272 | 157,940 | ||||||
Diversified Balanced Volatility Control Account | 94 | (3,648 | ) | (3,554 | ) | 57,356 | |||||
Diversified Growth Account | 587,468 | (64,665 | ) | 522,803 | 2,966,433 | ||||||
Diversified Growth Managed Volatility Account | 19,942 | (8,462 | ) | 11,480 | 313,837 | ||||||
Diversified Growth Volatility Control Account | 574 | (24,594 | ) | (24,020 | ) | 333,464 | |||||
Diversified Income Account | 16,839 | (4,193 | ) | 12,646 | 228,751 | ||||||
Diversified International Account | 25,797 | (23,256 | ) | 2,541 | 231,878 | ||||||
Equity Income Account | 221,626 | (38,853 | ) | 182,773 | 475,691 | ||||||
Government & High Quality Bond Account | 1,843 | (8,975 | ) | (7,132 | ) | 230,220 | |||||
Income Account | 6,404 | (5,143 | ) | 1,261 | 179,661 | ||||||
International Emerging Markets Account | 7,427 | (6,435 | ) | 992 | 83,759 | ||||||
LargeCap Growth Account | 15,060 | (8,179 | ) | 6,881 | 93,129 | ||||||
LargeCap Growth Account I | 90,260 | (14,829 | ) | 75,431 | 223,280 | ||||||
LargeCap S&P 500 Index Account | 834,992 | (147,125 | ) | 687,867 | 1,700,581 | ||||||
LargeCap S&P 500 Managed Volatility Index Account | 45,747 | (15,607 | ) | 30,140 | 175,958 | ||||||
MidCap Account | 128,343 | (28,289 | ) | 100,054 | 392,601 | ||||||
Multi-Asset Income Account | 1 | (29 | ) | (28 | ) | 414 | |||||
Principal Capital Appreciation Account | 47,160 | (7,062 | ) | 40,098 | 96,249 | ||||||
Principal LifeTime2010 Account | 1,391 | (1,816 | ) | (425 | ) | 32,318 | |||||
Principal LifeTime2020 Account | 9,987 | (12,980 | ) | (2,993 | ) | 176,483 | |||||
Principal LifeTime2030 Account | 5,969 | (11,578 | ) | (5,609 | ) | 148,029 | |||||
Principal LifeTime2040 Account | 2,398 | (5,598 | ) | (3,200 | ) | 66,602 | |||||
Principal LifeTime2050 Account | 1,315 | (2,736 | ) | (1,421 | ) | 32,705 | |||||
Principal LifeTime2060 Account | 85 | (535 | ) | (450 | ) | 5,103 | |||||
Principal LifeTimeStrategic Income Account | 845 | (1,159 | ) | (314 | ) | 20,980 | |||||
Real Estate Securities Account | 21,771 | (6,010 | ) | 15,761 | 120,669 | ||||||
SAM Balanced Portfolio | 64,170 | (22,392 | ) | 41,778 | 622,815 | ||||||
SAM Conservative Balanced Portfolio | 10,327 | (7,081 | ) | 3,246 | 171,401 | ||||||
SAM Conservative Growth Portfolio | 24,916 | (15,868 | ) | 9,048 | 298,616 | ||||||
SAM Flexible Income Portfolio | 8,505 | (7,774 | ) | 731 | 181,827 | ||||||
SAM Strategic Growth Portfolio | 12,095 | (18,699 | ) | (6,604 | ) | 261,419 | |||||
Short-Term Income Account | 556 | (1,779 | ) | (1,223 | ) | 157,003 | |||||
SmallCapAccount | 22,931 | (29,110 | ) | (6,179 | ) | 172,896 | |||||
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.
105
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
INVESTMENT COMPANIES - 5.47% | Shares Held Value (000's) | Principal | |||||||||
Money Market Funds- 5.47% | BONDS (continued) | Amount (000’s) Value (000’s) | |||||||||
First American Government Obligations Fund | 610,069 | $ | 610 | Aerospace & Defense (continued) | |||||||
2.44%(a) | United Technologies Corp (continued) | ||||||||||
Principal Government Money Market Fund | 120,511,522 | 120,512 | 4.13%, 11/16/2028 | $ | 435 | $ | 431 | ||||
2.11%(a),(b) | 4.15%, 05/15/2045 | 40 | 36 | ||||||||
$ | 121,122 | 4.50%, 04/15/2020 | 124 | 126 | |||||||
TOTAL INVESTMENT COMPANIES | $ | 121,122 | 4.50%, 06/01/2042 | 600 | 567 | ||||||
Principal | 4.63%, 11/16/2048 | 210 | 203 | ||||||||
BONDS - 32.93% | Amount (000's) Value (000's) | 5.70%, 04/15/2040 | 51 | 56 | |||||||
Advertising - 0.03% | 6.13%, 07/15/2038 | 18 | 21 | ||||||||
Interpublic Group of CosInc/The | 6.70%, 08/01/2028 | 175 | 209 | ||||||||
3.50%, 10/01/2020 | $ | 30 | $ | 30 | $ | 12,209 | |||||
3.75%, 10/01/2021 | 300 | 302 | Agriculture - 0.27% | ||||||||
5.40%, 10/01/2048 | 300 | 284 | Altria GroupInc | ||||||||
Omnicom GroupInc/ Omnicom CapitalInc | 2.85%, 08/09/2022 | 40 | 38 | ||||||||
4.45%, 08/15/2020 | 128 | 130 | 3.88%, 09/16/2046 | 60 | 46 | ||||||
$ | 746 | 4.00%, 01/31/2024 | 350 | 344 | |||||||
Aerospace & Defense- 0.55% | 4.25%, 08/09/2042 | 25 | 20 | ||||||||
Boeing Co/The | 4.50%, 05/02/2043 | 500 | 416 | ||||||||
1.88%, 06/15/2023 | 500 | 474 | 4.75%, 05/05/2021 | 163 | 167 | ||||||
2.25%, 06/15/2026 | 500 | 461 | 5.38%, 01/31/2044 | 205 | 191 | ||||||
5.88%, 02/15/2040 | 154 | 192 | Archer-Daniels-Midland Co | ||||||||
Embraer Netherlands Finance BV | 2.50%, 08/11/2026 | 850 | 788 | ||||||||
5.05%, 06/15/2025 | 300 | 303 | 4.48%, 03/01/2021 | 29 | 30 | ||||||
General Dynamics Corp | BAT Capital Corp | ||||||||||
2.13%, 08/15/2026 | 350 | 317 | 2.76%, 08/15/2022 | 580 | 548 | ||||||
2.25%, 11/15/2022 | 15 | 15 | 3.56%, 08/15/2027 | 550 | 488 | ||||||
2.88%, 05/11/2020 | 300 | 300 | 4.54%, 08/15/2047 | 325 | 259 | ||||||
3.38%, 05/15/2023 | 300 | 302 | Philip Morris InternationalInc | ||||||||
3.50%, 05/15/2025 | 300 | 299 | 1.88%, 02/25/2021 | 70 | 68 | ||||||
3.75%, 05/15/2028 | 300 | 303 | 2.38%, 08/17/2022 | 30 | 29 | ||||||
Harris Corp | 2.75%, 02/25/2026 | 310 | 287 | ||||||||
3.83%, 04/27/2025 | 500 | 490 | 2.90%, 11/15/2021 | 81 | 80 | ||||||
L3 TechnologiesInc | 3.25%, 11/10/2024 | 30 | 29 | ||||||||
4.95%, 02/15/2021 | 277 | 283 | 4.25%, 11/10/2044 | 30 | 27 | ||||||
Lockheed Martin Corp | 4.38%, 11/15/2041 | 61 | 55 | ||||||||
2.50%, 11/23/2020 | 255 | 252 | 4.50%, 03/26/2020 | 131 | 133 | ||||||
3.35%, 09/15/2021 | 102 | 103 | 4.50%, 03/20/2042 | 400 | 380 | ||||||
3.55%, 01/15/2026 | 240 | 238 | 4.88%, 11/15/2043 | 35 | 35 | ||||||
3.60%, 03/01/2035 | 350 | 326 | Reynolds AmericanInc | ||||||||
3.80%, 03/01/2045 | 25 | 23 | 4.00%, 06/12/2022 | 30 | 30 | ||||||
4.07%, 12/15/2042 | 47 | 45 | 4.45%, 06/12/2025 | 250 | 241 | ||||||
4.09%, 09/15/2052 | 389 | 363 | 4.85%, 09/15/2023 | 350 | 354 | ||||||
4.70%, 05/15/2046 | 25 | 26 | 5.70%, 08/15/2035 | 25 | 24 | ||||||
Northrop Grumman Corp | 5.85%, 08/15/2045 | 415 | 386 | ||||||||
2.55%, 10/15/2022 | 380 | 368 | 6.88%, 05/01/2020 | 500 | 520 | ||||||
3.20%, 02/01/2027 | 500 | 469 | $ | 6,013 | |||||||
3.50%, 03/15/2021 | 277 | 279 | Airlines - 0.06% | ||||||||
3.85%, 04/15/2045 | 500 | 441 | American Airlines 2014-1 Class A Pass Through | ||||||||
4.03%, 10/15/2047 | 25 | 23 | Trust | ||||||||
Raytheon Co | 3.70%, 04/01/2028 | 311 | 301 | ||||||||
2.50%, 12/15/2022 | 20 | 19 | Continental Airlines 2012-2 Class A Pass Through | ||||||||
3.13%, 10/15/2020 | 77 | 77 | Trust | ||||||||
4.88%, 10/15/2040 | 154 | 171 | 4.00%, 04/29/2026 | 150 | 148 | ||||||
Rockwell Collins Inc | Delta Air Lines 2007-1 Class A Pass Through | ||||||||||
3.50%, 03/15/2027 | 325 | 305 | Trust | ||||||||
4.35%, 04/15/2047 | 40 | 37 | 6.82%, 02/10/2024(c),(d) | 57 | 61 | ||||||
4.80%, 12/15/2043 | 460 | 453 | Southwest Airlines Co | ||||||||
Spirit AeroSystemsInc | 2.65%, 11/05/2020 | 500 | 493 | ||||||||
3.95%, 06/15/2023 | 250 | 249 | United Airlines 2014-2 Class A Pass Through | ||||||||
4.60%, 06/15/2028 | 300 | 288 | Trust | ||||||||
United Technologies Corp | 3.75%, 03/03/2028 | 166 | 162 | ||||||||
1.90%, 05/04/2020 | 350 | 343 | US Airways 2013-1 Class A Pass Through Trust | ||||||||
1.95%, 11/01/2021 | 80 | 77 | 3.95%, 05/15/2027 | 144 | 145 | ||||||
2.30%, 05/04/2022 | 600 | 576 | $ | 1,310 | |||||||
3.10%, 06/01/2022 | 530 | 519 | Apparel - 0.05% | ||||||||
3.13%, 05/04/2027 | 15 | 14 | NIKEInc | ||||||||
3.65%, 08/16/2023 | 450 | 448 | 2.25%, 05/01/2023 | 200 | 194 | ||||||
3.75%, 11/01/2046 | 30 | 25 | 3.38%, 11/01/2046 | 350 | 312 | ||||||
4.05%, 05/04/2047 | 300 | 264 | 3.63%, 05/01/2043 | 200 | 185 |
See accompanying notes.
106
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Apparel (continued) | Banks (continued) | ||||||||||
Ralph Lauren Corp | Australia & New Zealand Banking Group Ltd/ | ||||||||||
3.75%, 09/15/2025 | $ | 300 | $ | 297 | New York NY | ||||||
$ | 988 | 2.30%, 06/01/2021 | $ | 310 | $ | 303 | |||||
Automobile Asset Backed Securities - 0.22% | 2.63%, 05/19/2022 | 250 | 244 | ||||||||
BMW Vehicle Owner Trust 2018-A | Banco Santander SA | ||||||||||
2.51%, 06/25/2024 | 1,000 | 984 | 3.13%, 02/23/2023 | 600 | 567 | ||||||
Nissan Auto Receivables 2017-B Owner Trust | Bank of America Corp | ||||||||||
1.75%, 10/15/2021 | 3,000 | 2,965 | 2.25%, 04/21/2020 | 160 | 158 | ||||||
Toyota Auto Receivables 2018-A Owner Trust | 2.37%, 07/21/2021(e) | 500 | 491 | ||||||||
2.35%, 05/16/2022 | 1,000 | 990 | 3 Month USD LIBOR + 0.66% | ||||||||
$ | 4,939 | 2.63%, 04/19/2021 | 750 | 740 | |||||||
Automobile Manufacturers - 0.50% | 2.82%, 07/21/2023(e) | 500 | 484 | ||||||||
American Honda Finance Corp | 3 Month USD LIBOR + 0.93% | ||||||||||
1.70%, 09/09/2021 | 30 | 29 | 3.00%, 12/20/2023(e) | 1,389 | 1,350 | ||||||
2.45%, 09/24/2020 | 1,025 | 1,013 | 3 Month USD LIBOR + 0.79% | ||||||||
Daimler Finance North America LLC | 3.12%, 01/20/2023(e) | 500 | 492 | ||||||||
8.50%, 01/18/2031 | 127 | 174 | 3 Month USD LIBOR + 1.16% | ||||||||
Ford Motor Co | 3.25%, 10/21/2027 | 40 | 37 | ||||||||
4.35%, 12/08/2026 | 745 | 664 | 3.30%, 01/11/2023 | 330 | 325 | ||||||
5.29%, 12/08/2046 | 380 | 312 | 3.37%, 01/23/2026(e) | 500 | 478 | ||||||
7.45%, 07/16/2031 | 125 | 129 | 3 Month USD LIBOR + 0.81% | ||||||||
Ford Motor Credit Co LLC | 3.42%, 12/20/2028(e) | 1,041 | 972 | ||||||||
3.34%, 03/18/2021 | 1,000 | 970 | 3 Month USD LIBOR + 1.04% | ||||||||
4.13%, 08/04/2025 | 200 | 180 | 3.50%, 05/17/2022(e) | 300 | 300 | ||||||
4.25%, 09/20/2022 | 200 | 192 | 3 Month USD LIBOR + 0.63% | ||||||||
4.39%, 01/08/2026 | 200 | 180 | 3.50%, 04/19/2026 | 795 | 765 | ||||||
4.69%, 06/09/2025 | 200 | 185 | 3.59%, 07/21/2028(e) | 500 | 474 | ||||||
5.88%, 08/02/2021 | 400 | 410 | 3 Month USD LIBOR + 1.37% | ||||||||
General Motors Co | 3.71%, 04/24/2028(e) | 1,000 | 959 | ||||||||
4.88%, 10/02/2023 | 25 | 25 | 3 Month USD LIBOR + 1.51% | ||||||||
5.00%, 10/01/2028 | 400 | 379 | 3.82%, 01/20/2028(e) | 400 | 388 | ||||||
5.15%, 04/01/2038 | 440 | 376 | 3 Month USD LIBOR + 1.58% | ||||||||
5.40%, 04/01/2048 | 360 | 307 | 3.86%, 07/23/2024(e) | 300 | 299 | ||||||
6.75%, 04/01/2046 | 25 | 24 | 3 Month USD LIBOR + 0.94% | ||||||||
General Motors Financial CoInc | 3.88%, 08/01/2025 | 30 | 30 | ||||||||
3.15%, 06/30/2022 | 30 | 29 | 3.95%, 04/21/2025 | 830 | 804 | ||||||
3.20%, 07/13/2020 | 25 | 25 | 4.13%, 01/22/2024 | 500 | 507 | ||||||
3.20%, 07/06/2021 | 330 | 322 | 4.18%, 11/25/2027 | 60 | 58 | ||||||
3.25%, 01/05/2023 | 400 | 377 | 4.20%, 08/26/2024 | 25 | 25 | ||||||
3.45%, 01/14/2022 | 30 | 29 | 4.27%, 07/23/2029(e) | 360 | 358 | ||||||
3.45%, 04/10/2022 | 325 | 314 | 3 Month USD LIBOR + 1.31% | ||||||||
3.50%, 11/07/2024 | 300 | 274 | 4.44%, 01/20/2048(e) | 30 | 29 | ||||||
3.70%, 05/09/2023 | 325 | 309 | 3 Month USD LIBOR + 1.99% | ||||||||
3.95%, 04/13/2024 | 5 | 5 | 5.00%, 01/21/2044 | 25 | 26 | ||||||
4.30%, 07/13/2025 | 325 | 308 | 5.63%, 07/01/2020 | 380 | 393 | ||||||
4.35%, 01/17/2027 | 30 | 28 | 5.70%, 01/24/2022 | 580 | 615 | ||||||
4.38%, 09/25/2021 | 330 | 331 | 5.88%, 02/07/2042 | 228 | 265 | ||||||
5.25%, 03/01/2026 | 1,020 | 998 | 7.75%, 05/14/2038 | 850 | 1,099 | ||||||
PACCAR Financial Corp | Bank of America NA | ||||||||||
3.10%, 05/10/2021 | 300 | 299 | 6.00%, 10/15/2036 | 250 | 288 | ||||||
3.15%, 08/09/2021 | 200 | 200 | Bank of Montreal | ||||||||
Toyota Motor Corp | 1.90%, 08/27/2021 | 15 | 14 | ||||||||
3.67%, 07/20/2028 | 200 | 202 | 2.55%, 11/06/2022 | 15 | 15 | ||||||
Toyota Motor Credit Corp | 3.10%, 04/13/2021 | 1,000 | 1,000 | ||||||||
2.15%, 03/12/2020 | 500 | 494 | Bank of Nova Scotia/The | ||||||||
2.25%, 10/18/2023 | 350 | 331 | 2.35%, 10/21/2020 | 500 | 494 | ||||||
2.60%, 01/11/2022 | 30 | 30 | 2.45%, 09/19/2022 | 30 | 29 | ||||||
2.63%, 01/10/2023 | 100 | 97 | 2.70%, 03/07/2022 | 15 | 15 | ||||||
3.30%, 01/12/2022 | 77 | 77 | 3.13%, 04/20/2021 | 1,000 | 998 | ||||||
3.45%, 09/20/2023 | 400 | 401 | 4.50%, 12/16/2025 | 500 | 498 | ||||||
$ | 11,029 | Barclays Bank PLC | |||||||||
Automobile Parts & Equipment- 0.02% | 2.65%, 01/11/2021 | 350 | 343 | ||||||||
BorgWarnerInc | 5.14%, 10/14/2020 | 1,000 | 1,011 | ||||||||
3.38%, 03/15/2025 | 500 | 489 | Barclays PLC | ||||||||
3.20%, 08/10/2021 | 200 | 194 | |||||||||
Banks - 6.15% | 3.25%, 01/12/2021 | 200 | 196 | ||||||||
Australia & New Zealand Banking Group Ltd | 3.68%, 01/10/2023 | 200 | 192 | ||||||||
2.13%, 08/19/2020 | 250 | 246 | 4.34%, 01/10/2028 | 1,030 | 953 |
See accompanying notes.
107
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Banks (continued) | Banks (continued) | ||||||||||
Barclays PLC (continued) | CooperatieveRabobank UA/NY | ||||||||||
4.38%, 01/12/2026 | $ | 200 | $ | 190 | 2.25%, 01/14/2020 | $ | 300 | $ | 297 | ||
4.97%, 05/16/2029(e) | 210 | 202 | 2.50%, 01/19/2021 | 500 | 491 | ||||||
3 Month USD LIBOR + 1.90% | Credit Suisse AG/New York NY | ||||||||||
BB&T Corp | 3.00%, 10/29/2021 | 250 | 247 | ||||||||
2.15%, 02/01/2021 | 400 | 392 | 3.63%, 09/09/2024 | 400 | 392 | ||||||
BNP Paribas SA | 5.40%, 01/14/2020 | 200 | 203 | ||||||||
4.25%, 10/15/2024 | 750 | 741 | Credit Suisse Group Funding Guernsey Ltd | ||||||||
5.00%, 01/15/2021 | 77 | 80 | 3.13%, 12/10/2020 | 300 | 297 | ||||||
BPCE SA | 3.75%, 03/26/2025 | 750 | 715 | ||||||||
4.00%, 04/15/2024 | 250 | 251 | 4.88%, 05/15/2045 | 500 | 493 | ||||||
Branch Banking & Trust Co | Deutsche Bank AG/New York NY | ||||||||||
2.85%, 04/01/2021 | 1,000 | 992 | 3.38%, 05/12/2021 | 500 | 483 | ||||||
3.63%, 09/16/2025 | 250 | 245 | 4.10%, 01/13/2026 | 500 | 458 | ||||||
3.80%, 10/30/2026 | 250 | 248 | 4.25%, 10/14/2021 | 400 | 391 | ||||||
Canadian Imperial Bank of Commerce | Discover Bank | ||||||||||
3.50%, 09/13/2023 | 500 | 500 | 3.20%, 08/09/2021 | 250 | 247 | ||||||
Citibank NA | 4.20%, 08/08/2023 | 250 | 250 | ||||||||
2.13%, 10/20/2020 | 400 | 392 | 4.25%, 03/13/2026 | 500 | 488 | ||||||
CitigroupInc | Fifth Third Bancorp | ||||||||||
2.35%, 08/02/2021 | 25 | 24 | 2.88%, 07/27/2020 | 60 | 60 | ||||||
2.40%, 02/18/2020 | 200 | 198 | 4.30%, 01/16/2024 | 30 | 30 | ||||||
2.45%, 01/10/2020 | 500 | 496 | Fifth Third Bank/Cincinnati OH | ||||||||
2.65%, 10/26/2020 | 1,020 | 1,006 | 2.25%, 06/14/2021 | 700 | 683 | ||||||
2.70%, 03/30/2021 | 30 | 30 | 2.88%, 10/01/2021 | 200 | 198 | ||||||
2.70%, 10/27/2022 | 400 | 386 | 3.85%, 03/15/2026 | 700 | 689 | ||||||
2.75%, 04/25/2022 | 15 | 15 | Goldman Sachs GroupInc/The | ||||||||
2.88%, 07/24/2023(e) | 200 | 194 | 2.35%, 11/15/2021 | 780 | 752 | ||||||
3 Month USD LIBOR + 0.95% | 2.75%, 09/15/2020 | 500 | 495 | ||||||||
2.90%, 12/08/2021 | 1,000 | 984 | 2.88%, 02/25/2021 | 90 | 88 | ||||||
3.20%, 10/21/2026 | 770 | 711 | 3.00%, 04/26/2022 | 25 | 24 | ||||||
3.50%, 05/15/2023 | 600 | 589 | 3.50%, 01/23/2025 | 1,500 | 1,422 | ||||||
3.67%, 07/24/2028(e) | 1,200 | 1,134 | 3.50%, 11/16/2026 | 1,000 | 924 | ||||||
3 Month USD LIBOR + 1.39% | 3.69%, 06/05/2028(e) | 1,000 | 929 | ||||||||
3.70%, 01/12/2026 | 500 | 481 | 3 Month USD LIBOR + 1.51% | ||||||||
3.75%, 06/16/2024 | 500 | 497 | 3.75%, 05/22/2025 | 30 | 29 | ||||||
3.88%, 10/25/2023 | 30 | 30 | 3.85%, 07/08/2024 | 20 | 20 | ||||||
3.89%, 01/10/2028(e) | 400 | 386 | 3.85%, 01/26/2027 | 60 | 56 | ||||||
3 Month USD LIBOR + 1.56% | 4.02%, 10/31/2038(e) | 750 | 660 | ||||||||
4.05%, 07/30/2022 | 200 | 201 | 3 Month USD LIBOR + 1.37% | ||||||||
4.07%, 04/23/2029(e) | 240 | 234 | 4.22%, 05/01/2029(e) | 415 | 399 | ||||||
3 Month USD LIBOR + 1.19% | 3 Month USD LIBOR + 1.30% | ||||||||||
4.28%, 04/24/2048(e) | 30 | 28 | 4.25%, 10/21/2025 | 1,280 | 1,226 | ||||||
3 Month USD LIBOR + 1.84% | 4.41%, 04/23/2039(e) | 180 | 165 | ||||||||
4.30%, 11/20/2026 | 525 | 505 | 3 Month USD LIBOR + 1.43% | ||||||||
4.40%, 06/10/2025 | 30 | 29 | 4.80%, 07/08/2044 | 25 | 24 | ||||||
4.45%, 09/29/2027 | 20 | 19 | 5.15%, 05/22/2045 | 310 | 290 | ||||||
4.50%, 01/14/2022 | 454 | 464 | 5.25%, 07/27/2021 | 502 | 521 | ||||||
4.60%, 03/09/2026 | 60 | 59 | 5.38%, 03/15/2020 | 1,000 | 1,022 | ||||||
4.65%, 07/30/2045 | 222 | 216 | 5.75%, 01/24/2022 | 228 | 239 | ||||||
5.30%, 05/06/2044 | 25 | 25 | 6.75%, 10/01/2037 | 30 | 34 | ||||||
5.50%, 09/13/2025 | 325 | 341 | HSBC Holdings PLC | ||||||||
5.88%, 01/30/2042 | 328 | 371 | 2.65%, 01/05/2022 | 200 | 194 | ||||||
6.63%, 06/15/2032 | 112 | 130 | 2.95%, 05/25/2021 | 700 | 691 | ||||||
6.68%, 09/13/2043 | 30 | 35 | 3.60%, 05/25/2023 | 500 | 497 | ||||||
8.13%, 07/15/2039 | 132 | 183 | 3.90%, 05/25/2026 | 395 | 378 | ||||||
Citizens Bank NA/Providence RI | 3.95%, 05/18/2024(e) | 400 | 398 | ||||||||
2.55%, 05/13/2021 | 250 | 245 | 3 Month USD LIBOR + 0.99% | ||||||||
Commonwealth Bank of Australia/New York NY | 4.00%, 03/30/2022 | 148 | 150 | ||||||||
2.30%, 03/12/2020 | 750 | 742 | 4.04%, 03/13/2028(e) | 500 | 478 | ||||||
CooperatieveRabobank UA | 3 Month USD LIBOR + 1.55% | ||||||||||
3.88%, 02/08/2022 | 328 | 332 | 4.25%, 03/14/2024 | 500 | 496 | ||||||
3.95%, 11/09/2022 | 300 | 299 | 4.29%, 09/12/2026(e) | 500 | 492 | ||||||
4.50%, 01/11/2021 | 51 | 52 | 3 Month USD LIBOR + 1.35% | ||||||||
5.25%, 05/24/2041 | 500 | 551 | 4.30%, 03/08/2026 | 445 | 439 | ||||||
5.25%, 08/04/2045 | 250 | 258 | 4.58%, 06/19/2029(e) | 365 | 362 | ||||||
5.75%, 12/01/2043 | 250 | 272 | 3 Month USD LIBOR + 1.53% | ||||||||
5.10%, 04/05/2021 | 728 | 753 | |||||||||
See accompanying notes. | 108 |
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Banks (continued) | Banks (continued) | ||||||||||
HSBC Holdings PLC (continued) | Kreditanstalt fuer Wiederaufbau (continued) | ||||||||||
6.10%, 01/14/2042 | $ | 174 | $ | 202 | 1.63%, 05/29/2020 | $ | 1,500 | $ | 1,479 | ||
6.50%, 05/02/2036 | 420 | 478 | 1.63%, 03/15/2021 | 1,170 | 1,146 | ||||||
HSBC USAInc | 1.88%, 11/30/2020 | 500 | 493 | ||||||||
2.75%, 08/07/2020 | 500 | 495 | 2.00%, 05/02/2025 | 880 | 840 | ||||||
Huntington BancsharesInc/OH | 2.13%, 03/07/2022 | 500 | 492 | ||||||||
2.30%, 01/14/2022 | 500 | 483 | 2.13%, 06/15/2022 | 960 | 944 | ||||||
Huntington National Bank/The | 2.13%, 01/17/2023 | 500 | 489 | ||||||||
3.25%, 05/14/2021 | 400 | 399 | 2.38%, 12/29/2022 | 600 | 594 | ||||||
3.55%, 10/06/2023 | 400 | 399 | 2.63%, 01/25/2022 | 1,257 | 1,257 | ||||||
Industrial & Commercial Bank of China Ltd/New | 2.75%, 09/08/2020 | 300 | 300 | ||||||||
York NY | 4.00%, 01/27/2020 | 1,347 | 1,367 | ||||||||
2.45%, 10/20/2021 | 500 | 486 | Landwirtschaftliche Rentenbank | ||||||||
JPMorgan Chase & Co | 1.75%, 07/27/2026 | 500 | 465 | ||||||||
2.25%, 01/23/2020 | 670 | 663 | 2.00%, 01/13/2025 | 300 | 287 | ||||||
2.30%, 08/15/2021 | 880 | 859 | Lloyds Bank PLC | ||||||||
2.55%, 10/29/2020 | 1,000 | 989 | 3.30%, 05/07/2021 | 500 | 498 | ||||||
2.75%, 06/23/2020 | 1,000 | 994 | 6.38%, 01/21/2021 | 51 | 54 | ||||||
2.78%, 04/25/2023(e) | 250 | 242 | Lloyds Banking Group PLC | ||||||||
3 Month USD LIBOR + 0.94% | 3.57%, 11/07/2028(e) | 630 | 560 | ||||||||
2.97%, 01/15/2023 | 1,040 | 1,014 | 3 Month USD LIBOR + 1.21% | ||||||||
3.13%, 01/23/2025 | 1,000 | 953 | 3.75%, 01/11/2027 | 515 | 473 | ||||||
3.20%, 01/25/2023 | 1,025 | 1,010 | 4.05%, 08/16/2023 | 400 | 395 | ||||||
3.20%, 06/15/2026 | 25 | 24 | 4.45%, 05/08/2025 | 400 | 397 | ||||||
3.25%, 09/23/2022 | 320 | 317 | 4.65%, 03/24/2026 | 500 | 470 | ||||||
3.30%, 04/01/2026 | 500 | 476 | 5.30%, 12/01/2045 | 200 | 182 | ||||||
3.38%, 05/01/2023 | 400 | 391 | Manufacturers & Traders Trust Co | ||||||||
3.51%, 01/23/2029(e) | 400 | 379 | 2.10%, 02/06/2020 | 200 | 198 | ||||||
3 Month USD LIBOR + 0.95% | Mitsubishi UFJ Financial GroupInc | ||||||||||
3.63%, 12/01/2027 | 25 | 23 | 2.53%, 09/13/2023 | 400 | 380 | ||||||
3.80%, 07/23/2024(e) | 270 | 270 | 2.67%, 07/25/2022 | 30 | 29 | ||||||
3 Month USD LIBOR + 0.89% | 2.76%, 09/13/2026 | 400 | 370 | ||||||||
3.88%, 02/01/2024 | 20 | 20 | 3.00%, 02/22/2022 | 500 | 493 | ||||||
3.88%, 09/10/2024 | 500 | 492 | 3.29%, 07/25/2027 | 10 | 10 | ||||||
3.96%, 11/15/2048(e) | 400 | 354 | 3.54%, 07/26/2021 | 300 | 301 | ||||||
3 Month USD LIBOR + 1.38% | 3.76%, 07/26/2023 | 300 | 301 | ||||||||
4.01%, 04/23/2029(e) | 270 | 265 | 3.85%, 03/01/2026 | 350 | 348 | ||||||
3 Month USD LIBOR + 1.12% | 4.05%, 09/11/2028 | 500 | 506 | ||||||||
4.03%, 07/24/2048(e) | 30 | 27 | 4.29%, 07/26/2038 | 300 | 300 | ||||||
3 Month USD LIBOR + 1.46% | Mizuho Financial GroupInc | ||||||||||
4.20%, 07/23/2029(e) | 300 | 299 | 2.27%, 09/13/2021 | 400 | 387 | ||||||
3 Month USD LIBOR + 1.26% | 2.84%, 09/13/2026 | 400 | 371 | ||||||||
4.25%, 10/15/2020 | 70 | 71 | 2.95%, 02/28/2022 | 500 | 490 | ||||||
4.25%, 10/01/2027 | 10 | 10 | 3.17%, 09/11/2027 | 200 | 188 | ||||||
4.26%, 02/22/2048(e) | 500 | 465 | 3.92%, 09/11/2024(e) | 500 | 505 | ||||||
3 Month USD LIBOR + 1.58% | 3 Month USD LIBOR + 1.00% | ||||||||||
4.40%, 07/22/2020 | 212 | 216 | Morgan Stanley | ||||||||
4.50%, 01/24/2022 | 257 | 265 | 2.50%, 04/21/2021 | 1,000 | 979 | ||||||
4.63%, 05/10/2021 | 287 | 295 | 2.63%, 11/17/2021 | 1,030 | 1,005 | ||||||
4.85%, 02/01/2044 | 20 | 20 | 2.75%, 05/19/2022 | 300 | 292 | ||||||
4.95%, 03/25/2020 | 57 | 58 | 2.80%, 06/16/2020 | 1,050 | 1,043 | ||||||
4.95%, 06/01/2045 | 55 | 56 | 3.13%, 01/23/2023 | 300 | 293 | ||||||
5.40%, 01/06/2042 | 102 | 112 | 3.13%, 07/27/2026 | 1,330 | 1,230 | ||||||
5.60%, 07/15/2041 | 154 | 174 | 3.59%, 07/22/2028(e) | 30 | 28 | ||||||
5.63%, 08/16/2043 | 375 | 412 | 3 Month USD LIBOR + 1.34% | ||||||||
6.40%, 05/15/2038 | 200 | 243 | 3.63%, 01/20/2027 | 30 | 29 | ||||||
KeyBank NA/Cleveland OH | 3.70%, 10/23/2024 | 25 | 25 | ||||||||
2.25%, 03/16/2020 | 250 | 247 | 3.75%, 02/25/2023 | 1,230 | 1,228 | ||||||
KeyCorp | 3.77%, 01/24/2029(e) | 360 | 344 | ||||||||
2.90%, 09/15/2020 | 30 | 30 | 3 Month USD LIBOR + 1.14% | ||||||||
5.10%, 03/24/2021 | 102 | 106 | 3.88%, 04/29/2024 | 30 | 30 | ||||||
Korea Development Bank/The | 3.95%, 04/23/2027 | 50 | 47 | ||||||||
2.50%, 03/11/2020 | 500 | 497 | 3.97%, 07/22/2038(e) | 15 | 14 | ||||||
KreditanstaltfuerWiederaufbau | 3 Month USD LIBOR + 1.46% | ||||||||||
0.00%, 04/18/2036(f) | 380 | 217 | 4.00%, 07/23/2025 | 30 | 30 | ||||||
0.00%, 06/29/2037(f) | 200 | 112 | 4.10%, 05/22/2023 | 380 | 381 | ||||||
1.50%, 04/20/2020 | 1,500 | 1,479 | 4.30%, 01/27/2045 | 50 | 47 | ||||||
1.50%, 06/15/2021 | 290 | 282 | 4.35%, 09/08/2026 | 30 | 29 |
See accompanying notes.
109
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Banks (continued) | Banks (continued) | ||||||||||
Morgan Stanley (continued) | Svenska HandelsbankenAB | ||||||||||
4.38%, 01/22/2047 | $ | 30 | $ | 28 | 3.35%, 05/24/2021 | $ | 400 | $ | 400 | ||
4.88%, 11/01/2022 | 30 | 31 | Synchrony Bank | ||||||||
5.00%, 11/24/2025 | 525 | 535 | 3.65%, 05/24/2021 | 300 | 294 | ||||||
5.75%, 01/25/2021 | 1,050 | 1,095 | Toronto-Dominion Bank/The | ||||||||
6.38%, 07/24/2042 | 620 | 759 | 1.80%, 07/13/2021 | 520 | 503 | ||||||
National Australia Bank Ltd/New York | 2.50%, 12/14/2020 | 1,015 | 1,005 | ||||||||
1.88%, 07/12/2021 | 500 | 481 | 3.15%, 09/17/2020 | 500 | 501 | ||||||
2.13%, 05/22/2020 | 300 | 296 | US Bancorp | ||||||||
2.50%, 05/22/2022 | 570 | 553 | 2.35%, 01/29/2021 | 20 | 20 | ||||||
Northern Trust Corp | 2.63%, 01/24/2022 | 55 | 54 | ||||||||
3.95%, 10/30/2025 | 500 | 509 | 2.95%, 07/15/2022 | 230 | 227 | ||||||
Oesterreichische Kontrollbank AG | 3.00%, 03/15/2022 | 158 | 157 | ||||||||
1.38%, 02/10/2020 | 250 | 247 | 3.10%, 04/27/2026 | 780 | 739 | ||||||
1.50%, 10/21/2020 | 160 | 157 | 3.15%, 04/27/2027 | 25 | 24 | ||||||
1.75%, 01/24/2020 | 500 | 496 | 3.60%, 09/11/2024 | 15 | 15 | ||||||
1.88%, 01/20/2021 | 1,000 | 985 | 4.13%, 05/24/2021 | 112 | 115 | ||||||
PNC Bank NA | Wells Fargo & Co | ||||||||||
2.45%, 07/28/2022 | 500 | 484 | 2.10%, 07/26/2021 | 15 | 15 | ||||||
2.63%, 02/17/2022 | 500 | 489 | 2.50%, 03/04/2021 | 1,020 | 1,003 | ||||||
3.80%, 07/25/2023 | 400 | 401 | 2.55%, 12/07/2020 | 20 | 20 | ||||||
PNC Financial Services GroupInc/The | 2.60%, 07/22/2020 | 10 | 10 | ||||||||
3.15%, 05/19/2027 | 10 | 10 | 3.00%, 02/19/2025 | 890 | 839 | ||||||
4.38%, 08/11/2020 | 51 | 52 | 3.00%, 04/22/2026 | 500 | 466 | ||||||
5.13%, 02/08/2020 | 25 | 26 | 3.00%, 10/23/2026 | 530 | 491 | ||||||
Royal Bank of Canada | 3.07%, 01/24/2023 | 35 | 34 | ||||||||
2.15%, 03/06/2020 | 750 | 743 | 3.45%, 02/13/2023 | 215 | 210 | ||||||
2.35%, 10/30/2020 | 500 | 494 | 3.50%, 03/08/2022 | 180 | 179 | ||||||
Royal Bank of Scotland Group PLC | 3.58%, 05/22/2028(e) | 500 | 480 | ||||||||
3.88%, 09/12/2023 | 200 | 192 | 3 Month USD LIBOR + 1.31% | ||||||||
4.80%, 04/05/2026 | 500 | 488 | 3.90%, 05/01/2045 | 500 | 459 | ||||||
4.89%, 05/18/2029(e) | 400 | 382 | 4.40%, 06/14/2046 | 385 | 353 | ||||||
3 Month USD LIBOR + 1.75% | 4.60%, 04/01/2021 | 102 | 104 | ||||||||
6.13%, 12/15/2022 | 500 | 507 | 4.65%, 11/04/2044 | 30 | 28 | ||||||
Santander Holdings USAInc | 4.90%, 11/17/2045 | 520 | 507 | ||||||||
4.40%, 07/13/2027 | 20 | 19 | 5.38%, 02/07/2035 | 500 | 549 | ||||||
4.50%, 07/17/2025 | 780 | 772 | 5.38%, 11/02/2043 | 20 | 21 | ||||||
Santander UK Group Holdings PLC | 5.61%, 01/15/2044 | 45 | 49 | ||||||||
2.88%, 10/16/2020 | 1,000 | 983 | Wells Fargo Bank NA | ||||||||
3.57%, 01/10/2023 | 520 | 498 | 5.95%, 08/26/2036 | 750 | 863 | ||||||
Santander UK PLC | 6.60%, 01/15/2038 | 250 | 309 | ||||||||
2.38%, 03/16/2020 | 750 | 742 | Wells Fargo Capital X | ||||||||
SkandinaviskaEnskilda Banken AB | 5.95%, 12/01/2086 | 200 | 207 | ||||||||
1.88%, 09/13/2021 | 500 | 481 | Westpac Banking Corp | ||||||||
2.63%, 03/15/2021 | 500 | 494 | 2.00%, 08/19/2021 | 500 | 484 | ||||||
State Street Corp | 2.60%, 11/23/2020 | 500 | 494 | ||||||||
1.95%, 05/19/2021 | 35 | 34 | 2.65%, 01/25/2021 | 1,000 | 990 | ||||||
2.55%, 08/18/2020 | 180 | 178 | 2.80%, 01/11/2022 | 500 | 491 | ||||||
2.65%, 05/19/2026 | 60 | 56 | 3.35%, 03/08/2027 | 30 | 29 | ||||||
3.10%, 05/15/2023 | 325 | 319 | 3.65%, 05/15/2023 | 400 | 402 | ||||||
3.55%, 08/18/2025 | 225 | 224 | $ | 136,171 | |||||||
3.70%, 11/20/2023 | 10 | 10 | Beverages - 0.66% | ||||||||
Sumitomo Mitsui Banking Corp | Anheuser-Busch Cos LLC / Anheuser-Busch | ||||||||||
2.51%, 01/17/2020 | 500 | 496 | InBev Worldwide Inc | ||||||||
3.20%, 07/18/2022 | 100 | 99 | 3.65%, 02/01/2026(g) | 2,825 | 2,671 | ||||||
3.65%, 07/23/2025 | 500 | 497 | 4.70%, 02/01/2036(g) | 1,030 | 955 | ||||||
Sumitomo Mitsui Financial GroupInc | 4.90%, 02/01/2046(g) | 790 | 733 | ||||||||
2.93%, 03/09/2021 | 500 | 495 | Anheuser-BuschInBev Finance Inc | ||||||||
3.10%, 01/17/2023 | 500 | 490 | 2.63%, 01/17/2023 | 30 | 29 | ||||||
3.36%, 07/12/2027 | 750 | 720 | 3.30%, 02/01/2023 | 30 | 29 | ||||||
3.45%, 01/11/2027 | 140 | 135 | 3.70%, 02/01/2024 | 65 | 64 | ||||||
3.78%, 03/09/2026 | 500 | 495 | 4.63%, 02/01/2044 | 25 | 22 | ||||||
SunTrust Bank/Atlanta GA | Anheuser-BuschInBev Worldwide Inc | ||||||||||
2.75%, 05/01/2023 | 200 | 193 | 2.50%, 07/15/2022 | 340 | 325 | ||||||
SunTrust BanksInc | 3.75%, 01/15/2022 | 750 | 750 | ||||||||
2.70%, 01/27/2022 | 30 | 29 | 3.75%, 07/15/2042 | 100 | 78 | ||||||
2.90%, 03/03/2021 | 65 | 64 | 4.44%, 10/06/2048 | 676 | 584 | ||||||
8.20%, 01/15/2039 | 51 | 66 | |||||||||
See accompanying notes. | 110 |
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Beverages (continued) | Biotechnology (continued) | ||||||||||
Coca-Cola Co/The | Gilead Sciences Inc (continued) | ||||||||||
2.50%, 04/01/2023 | $ | 10 | $ | 10 | 3.25%, 09/01/2022 | $ | 60 | $ | 60 | ||
2.88%, 10/27/2025 | 520 | 501 | 4.00%, 09/01/2036 | 300 | 274 | ||||||
3.15%, 11/15/2020 | 528 | 532 | 4.15%, 03/01/2047 | 70 | 64 | ||||||
3.20%, 11/01/2023 | 60 | 60 | 4.40%, 12/01/2021 | 127 | 131 | ||||||
3.30%, 09/01/2021 | 30 | 30 | 4.50%, 04/01/2021 | 35 | 36 | ||||||
Constellation Brands Inc | 4.60%, 09/01/2035 | 500 | 505 | ||||||||
3.60%, 02/15/2028 | 500 | 460 | 4.75%, 03/01/2046 | 195 | 193 | ||||||
3.75%, 05/01/2021 | 500 | 504 | 4.80%, 04/01/2044 | 500 | 501 | ||||||
Diageo Capital PLC | $ | 9,001 | |||||||||
2.63%, 04/29/2023 | 10 | 10 | Building Materials - 0.07% | ||||||||
4.83%, 07/15/2020 | 51 | 52 | Johnson Controls International plc | ||||||||
5.88%, 09/30/2036 | 139 | 168 | 3.75%, 12/01/2021 | 477 | 481 | ||||||
Diageo Investment Corp | 5.00%, 03/30/2020 | 64 | 65 | ||||||||
2.88%, 05/11/2022 | 200 | 198 | Masco Corp | ||||||||
KeurigDr Pepper Inc | 4.45%, 04/01/2025 | 300 | 301 | ||||||||
3.13%, 12/15/2023 | 500 | 477 | Owens Corning | ||||||||
3.55%, 05/25/2021(g) | 500 | 499 | 4.20%, 12/15/2022 | 500 | 496 | ||||||
4.06%, 05/25/2023(g) | 425 | 423 | 4.40%, 01/30/2048 | 300 | 227 | ||||||
4.42%, 12/15/2046 | 500 | 441 | $ | 1,570 | |||||||
Molson Coors Brewing Co | Chemicals - 0.30% | ||||||||||
3.00%, 07/15/2026 | 530 | 472 | Albemarle Corp | ||||||||
5.00%, 05/01/2042 | 50 | 47 | 5.45%, 12/01/2044 | 150 | 150 | ||||||
PepsiCo Inc | Dow Chemical Co/The | ||||||||||
1.70%, 10/06/2021 | 30 | 29 | 3.50%, 10/01/2024 | 5 | 5 | ||||||
1.85%, 04/30/2020 | 500 | 493 | 4.13%, 11/15/2021 | 256 | 260 | ||||||
2.15%, 10/14/2020 | 500 | 494 | 4.38%, 11/15/2042 | 230 | 202 | ||||||
2.38%, 10/06/2026 | 20 | 18 | 5.25%, 11/15/2041 | 30 | 30 | ||||||
2.75%, 03/05/2022 | 593 | 587 | 7.38%, 11/01/2029 | 850 | 1,036 | ||||||
2.85%, 02/24/2026 | 500 | 478 | 9.40%, 05/15/2039 | 51 | 74 | ||||||
3.10%, 07/17/2022 | 15 | 15 | DowDuPont Inc | ||||||||
3.13%, 11/01/2020 | 128 | 129 | 5.32%, 11/15/2038 | 190 | 196 | ||||||
3.45%, 10/06/2046 | 545 | 484 | 5.42%, 11/15/2048 | 245 | 254 | ||||||
4.25%, 10/22/2044 | 500 | 505 | Eastman Chemical Co | ||||||||
4.45%, 04/14/2046 | 20 | 21 | 2.70%, 01/15/2020 | 124 | 123 | ||||||
4.50%, 01/15/2020 | 51 | 52 | 3.60%, 08/15/2022 | 49 | 49 | ||||||
$ | 14,495 | 4.80%, 09/01/2042 | 100 | 92 | |||||||
Biotechnology- 0.41% | LYB International Finance BV | ||||||||||
AmgenInc | 5.25%, 07/15/2043 | 515 | 491 | ||||||||
1.85%, 08/19/2021 | 65 | 63 | LYB International Finance II BV | ||||||||
2.60%, 08/19/2026 | 1,000 | 909 | 3.50%, 03/02/2027 | 35 | 32 | ||||||
2.65%, 05/11/2022 | 40 | 39 | LyondellBasell Industries NV | ||||||||
3.88%, 11/15/2021 | 25 | 25 | 4.63%, 02/26/2055 | 20 | 17 | ||||||
4.10%, 06/15/2021 | 501 | 511 | 5.75%, 04/15/2024 | 130 | 139 | ||||||
4.40%, 05/01/2045 | 40 | 37 | MethanexCorp | ||||||||
4.56%, 06/15/2048 | 485 | 464 | 3.25%, 12/15/2019 | 300 | 298 | ||||||
4.66%, 06/15/2051 | 810 | 763 | Mosaic Co/The | ||||||||
Baxalta Inc | 4.25%, 11/15/2023 | 496 | 498 | ||||||||
4.00%, 06/23/2025 | 50 | 49 | 4.88%, 11/15/2041 | 520 | 474 | ||||||
5.25%, 06/23/2045 | 130 | 132 | Nutrien Ltd | ||||||||
BiogenInc | 3.63%, 03/15/2024 | 500 | 486 | ||||||||
5.20%, 09/15/2045 | 540 | 558 | 4.88%, 03/30/2020 | 51 | 52 | ||||||
Celgene Corp | 4.90%, 06/01/2043 | 200 | 191 | ||||||||
2.88%, 08/15/2020 | 500 | 497 | 6.13%, 01/15/2041 | 250 | 274 | ||||||
3.25%, 08/15/2022 | 25 | 25 | PPG IndustriesInc | ||||||||
3.25%, 02/20/2023 | 400 | 391 | 3.60%, 11/15/2020 | 251 | 253 | ||||||
3.55%, 08/15/2022 | 20 | 20 | Praxair Inc | ||||||||
3.88%, 08/15/2025 | 470 | 452 | 2.20%, 08/15/2022 | 300 | 290 | ||||||
3.90%, 02/20/2028 | 185 | 174 | Sherwin-Williams Co/The | ||||||||
3.95%, 10/15/2020 | 400 | 404 | 2.75%, 06/01/2022 | 35 | 34 | ||||||
4.35%, 11/15/2047 | 150 | 126 | 3.45%, 06/01/2027 | 330 | 308 | ||||||
4.55%, 02/20/2048 | 185 | 160 | 4.50%, 06/01/2047 | 25 | 22 | ||||||
4.63%, 05/15/2044 | 355 | 312 | Westlake Chemical Corp | ||||||||
5.00%, 08/15/2045 | 30 | 28 | 3.60%, 08/15/2026 | 350 | 321 | ||||||
Gilead SciencesInc | $ | 6,651 | |||||||||
2.50%, 09/01/2023 | 10 | 10 | Commercial Mortgage Backed Securities - 2.19% | ||||||||
2.55%, 09/01/2020 | 600 | 595 | CFCRE Commercial Mortgage Trust 2016-C4 | ||||||||
2.95%, 03/01/2027 | 530 | 493 | 3.28%, 05/10/2058 | 1,300 | 1,269 |
See accompanying notes.
111
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Commercial Mortgage Backed Securities (continued) | Commercial Mortgage Backed Securities (continued) | ||||||||||
Citigroup Commercial Mortgage Trust | JPMBB Commercial Mortgage Securities Trust | ||||||||||
2013-GC15 | 2014-C22 | ||||||||||
4.37%, 09/10/2046(h) | $ | 1,000 | $ | 1,044 | 3.80%, 09/15/2047 | $ | 1,000 | $ | 1,016 | ||
Citigroup Commercial Mortgage Trust | Morgan Stanley Bank of America Merrill Lynch | ||||||||||
2016-GC36 | Trust 2013-C11 | ||||||||||
3.62%, 02/10/2049 | 1,000 | 1,002 | 3.09%, 08/15/2046 | 73 | 73 | ||||||
COMM 2012-CCRE3 Mortgage Trust | Morgan Stanley Bank of America Merrill Lynch | ||||||||||
2.82%, 10/15/2045 | 490 | 482 | Trust 2015-C24 | ||||||||
COMM 2013-CCRE8 Mortgage Trust | 3.48%, 05/15/2048 | 1,000 | 998 | ||||||||
3.61%, 06/10/2046(h) | 500 | 506 | Morgan Stanley Capital I Trust 2017-H1 | ||||||||
COMM 2013-LC6 Mortgage Trust | 3.26%, 06/15/2050 | 2,500 | 2,429 | ||||||||
2.94%, 01/10/2046 | 500 | 495 | SG Commercial Mortgage Securities Trust | ||||||||
COMM 2014-UBS3 Mortgage Trust | 2016- | C5 | |||||||||
3.82%, 06/10/2047 | 500 | 510 | 3.06%, 10/10/2048 | 1,000 | 962 | ||||||
COMM 2015-DC1 Mortgage Trust | UBS Commercial Mortgage Trust 2012-C1 | ||||||||||
3.35%, 02/10/2048 | 1,000 | 992 | 3.40%, 05/10/2045 | 486 | 489 | ||||||
COMM 2015-LC19 Mortgage Trust | UBS-Barclays Commercial Mortgage Trust | ||||||||||
3.18%, 02/10/2048 | 1,000 | 986 | 2012- | C3 | |||||||
Commercial Mortgage Pass Through Certificates | 3.09%, 08/10/2049 | 550 | 549 | ||||||||
3.76%, 02/10/2049 | 1,000 | 1,012 | UBS-Barclays Commercial Mortgage Trust | ||||||||
CSAIL 2015-C1 Commercial Mortgage Trust | 2013- | C6 | |||||||||
2.97%, 04/15/2050 | 1,000 | 996 | 3.24%, 04/10/2046 | 500 | 501 | ||||||
CSAIL 2016-C7 Commercial Mortgage Trust | Wells Fargo Commercial Mortgage Trust | ||||||||||
3.31%, 11/15/2049 | 1,000 | 1,000 | 2012-LC5 | ||||||||
Fannie Mae-Aces | 2.92%, 10/15/2045 | 496 | 491 | ||||||||
2.42%, 10/25/2026(h) | 1,000 | 941 | Wells Fargo Commercial Mortgage Trust | ||||||||
2.53%, 09/25/2024 | 1,000 | 976 | 2015-C28 | ||||||||
2.64%, 04/25/2023(h) | 418 | 416 | 3.29%, 05/15/2048 | 1,845 | 1,823 | ||||||
2.71%, 06/25/2025(h) | 2,000 | 1,955 | WFRBS Commercial Mortgage Trust 2012-C7 | ||||||||
2.72%, 02/25/2022 | 955 | 949 | 2.30%, 06/15/2045 | 123 | 122 | ||||||
2.78%, 02/25/2027(h) | 1,100 | 1,062 | WFRBS Commercial Mortgage Trust 2013-C14 | ||||||||
2.96%, 02/25/2027(h) | 1,000 | 973 | 2.98%, 06/15/2046 | 916 | 913 | ||||||
2.99%, 12/25/2027(h) | 1,000 | 978 | $ | 48,373 | |||||||
3.12%, 08/25/2024(h) | 958 | 976 | Commercial Services - 0.22% | ||||||||
3.38%, 07/25/2028(h) | 2,025 | 2,022 | Automatic Data ProcessingInc | ||||||||
3.51%, 12/25/2023(h) | 979 | 1,002 | 2.25%, 09/15/2020 | 20 | 20 | ||||||
Freddie Mac Multifamily Structured Pass | 3.38%, 09/15/2025 | 500 | 496 | ||||||||
Through Certificates | Board of Trustees of The Leland Stanford Junior | ||||||||||
2.34%, 07/25/2026 | 378 | 367 | University/The | ||||||||
2.67%, 03/25/2026 | 1,050 | 1,018 | 3.65%, 05/01/2048 | 287 | 280 | ||||||
2.87%, 12/25/2021 | 539 | 538 | California Institute of Technology | ||||||||
3.02%, 02/25/2023 | 243 | 245 | 4.32%, 08/01/2045 | 80 | 85 | ||||||
3.06%, 07/25/2023(h) | 750 | 753 | EcolabInc | ||||||||
3.06%, 12/25/2024 | 500 | 500 | 4.35%, 12/08/2021 | 112 | 115 | ||||||
3.31%, 05/25/2023(h) | 810 | 822 | 5.50%, 12/08/2041 | 307 | 354 | ||||||
3.32%, 02/25/2023(h) | 1,000 | 1,015 | Massachusetts Institute of Technology | ||||||||
3.41%, 12/25/2026 | 1,500 | 1,517 | 3.89%, 07/01/2116 | 250 | 228 | ||||||
3.53%, 10/25/2023(h) | 1,050 | 1,075 | 4.68%, 07/01/2114 | 250 | 274 | ||||||
4.18%, 12/25/2020(h) | 850 | 869 | Moody's Corp | ||||||||
GS Mortgage Securities Trust 2012-GC6 | 5.25%, 07/15/2044 | 500 | 539 | ||||||||
3.48%, 01/10/2045 | 273 | 276 | President & Fellows of Harvard College | ||||||||
GS Mortgage Securities Trust 2012-GCJ9 | 3.15%, 07/15/2046 | 350 | 312 | ||||||||
2.77%, 11/10/2045 | 499 | 492 | RELX CapitalInc | ||||||||
GS Mortgage Securities Trust 2014-GC18 | 3.13%, 10/15/2022 | 125 | 123 | ||||||||
3.80%, 01/10/2047 | 500 | 508 | S&P GlobalInc | ||||||||
GS Mortgage Securities Trust 2015-GC34 | 4.40%, 02/15/2026 | 160 | 165 | ||||||||
3.51%, 10/10/2048 | 1,000 | 997 | 6.55%, 11/15/2037 | 51 | 63 | ||||||
GS Mortgage Securities Trust 2017-GS5 | University of Southern California | ||||||||||
3.47%, 03/10/2050 | 2,250 | 2,251 | 3.84%, 10/01/2047 | 500 | 509 | ||||||
GS Mortgage Securities Trust 2018-GS9 | 5.25%, 10/01/2111 | 30 | 35 | ||||||||
3.99%, 03/10/2051(h) | 1,500 | 1,529 | Verisk AnalyticsInc | ||||||||
JP Morgan Chase Commercial Mortgage | 4.00%, 06/15/2025 | 500 | 502 | ||||||||
Securities Trust 2011-C5 | Western Union Co/The | ||||||||||
4.17%, 08/15/2046 | 172 | 175 | 5.25%, 04/01/2020 | 25 | 25 | ||||||
JPMBB Commercial Mortgage Securities Trust | 6.20%, 11/17/2036 | 200 | 193 | ||||||||
2013-C15 | William Marsh Rice University | ||||||||||
4.13%, 11/15/2045 | 500 | 516 | 3.57%, 05/15/2045 | 500 | 473 | ||||||
$ | 4,791 |
See accompanying notes.
112
Schedule of Investments Bond Market Index Account December 31, 2018
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Computers - 0.62% | Cosmetics & Personal Care- 0.06% | ||||||||||
Apple Inc | Procter & Gamble Co/The | ||||||||||
1.55%, 08/04/2021 | $ | 30 | $ | 29 | 1.70%, 11/03/2021 | $ | 30 | $ | 29 | ||
2.00%, 05/06/2020 | 520 | 515 | 2.15%, 08/11/2022 | 30 | 29 | ||||||
2.15%, 02/09/2022 | 50 | 49 | 2.30%, 02/06/2022 | 441 | 434 | ||||||
2.25%, 02/23/2021 | 535 | 529 | 3.10%, 08/15/2023 | 30 | 30 | ||||||
2.30%, 05/11/2022 | 30 | 29 | Unilever Capital Corp | ||||||||
2.40%, 01/13/2023 | 300 | 291 | 2.20%, 05/05/2022 | 100 | 97 | ||||||
2.40%, 05/03/2023 | 330 | 319 | 3.25%, 03/07/2024 | 400 | 398 | ||||||
2.50%, 02/09/2022 | 530 | 522 | 5.90%, 11/15/2032 | 230 | 281 | ||||||
2.70%, 05/13/2022 | 60 | 59 | $ | 1,298 | |||||||
2.85%, 05/06/2021 | 1,285 | 1,287 | Credit Card Asset Backed Securities - 0.42% | ||||||||
2.85%, 02/23/2023 | 30 | 30 | Capital One Multi-Asset Execution Trust | ||||||||
2.90%, 09/12/2027 | 230 | 216 | 1.99%, 07/17/2023 | 1,000 | 984 | ||||||
3.00%, 02/09/2024 | 60 | 59 | 2.43%, 01/15/2025 | 2,000 | 1,978 | ||||||
3.00%, 11/13/2027 | 240 | 228 | Chase Issuance Trust | ||||||||
3.20%, 05/13/2025 | 445 | 438 | 1.84%, 04/15/2022 | 1,500 | 1,478 | ||||||
3.20%, 05/11/2027 | 320 | 309 | Citibank Credit Card Issuance Trust | ||||||||
3.25%, 02/23/2026 | 775 | 756 | 2.19%, 11/20/2023 | 1,000 | 982 | ||||||
3.35%, 02/09/2027 | 535 | 521 | 2.49%, 01/20/2023 | 1,350 | 1,339 | ||||||
3.45%, 05/06/2024 | 405 | 407 | 2.68%, 06/07/2023 | 1,000 | 995 | ||||||
3.45%, 02/09/2045 | 30 | 27 | 2.88%, 01/23/2023 | 500 | 500 | ||||||
3.75%, 09/12/2047 | 115 | 106 | Synchrony Credit Card Master Note Trust | ||||||||
3.75%, 11/13/2047 | 150 | 138 | 2.97%, 03/15/2024 | 1,000 | 999 | ||||||
3.85%, 05/04/2043 | 300 | 284 | $ | 9,255 | |||||||
4.65%, 02/23/2046 | 385 | 407 | Distribution & Wholesale- 0.01% | ||||||||
Dell International LLC / EMC Corp | WW GraingerInc | ||||||||||
4.42%, 06/15/2021(g) | 980 | 978 | 4.60%, 06/15/2045 | 250 | 257 | ||||||
8.10%, 07/15/2036(g) | 255 | 277 | Diversified Financial Services- 0.91% | ||||||||
8.35%, 07/15/2046(g) | 235 | 254 | AerCapIreland Capital DAC /AerCapGlobal | ||||||||
DXC Technology Co | Aviation Trust | ||||||||||
4.75%, 04/15/2027 | 505 | 507 | 3.30%, 01/23/2023 | 500 | 475 | ||||||
Hewlett Packard Enterprise Co | 3.50%, 01/15/2025 | 300 | 274 | ||||||||
3.60%, 10/15/2020 | 470 | 471 | 3.88%, 01/23/2028 | 300 | 262 | ||||||
4.90%, 10/15/2025 | 300 | 302 | 3.95%, 02/01/2022 | 650 | 639 | ||||||
6.20%, 10/15/2035 | 80 | 77 | 4.50%, 05/15/2021 | 150 | 150 | ||||||
6.35%, 10/15/2045 | 195 | 182 | 5.00%, 10/01/2021 | 150 | 152 | ||||||
HPInc | Air Lease Corp | ||||||||||
3.75%, 12/01/2020 | 121 | 122 | 2.50%, 03/01/2021 | 500 | 487 | ||||||
6.00%, 09/15/2041 | 154 | 153 | 3.00%, 09/15/2023 | 20 | 19 | ||||||
IBM Credit LLC | 3.25%, 03/01/2025 | 500 | 459 | ||||||||
2.65%, 02/05/2021 | 100 | 99 | American Express Co | ||||||||
International Business Machines Corp | 2.20%, 10/30/2020 | 500 | 491 | ||||||||
1.63%, 05/15/2020 | 700 | 686 | 2.65%, 12/02/2022 | 400 | 387 | ||||||
2.25%, 02/19/2021 | 300 | 294 | 3.00%, 10/30/2024 | 400 | 383 | ||||||
3.38%, 08/01/2023 | 335 | 331 | 3.38%, 05/17/2021 | 400 | 401 | ||||||
4.00%, 06/20/2042 | 35 | 31 | 3.63%, 12/05/2024 | 500 | 489 | ||||||
4.70%, 02/19/2046 | 185 | 185 | 3.70%, 08/03/2023 | 400 | 401 | ||||||
5.60%, 11/30/2039 | 92 | 102 | 4.05%, 12/03/2042 | 25 | 24 | ||||||
5.88%, 11/29/2032 | 200 | 233 | American Express Credit Corp | ||||||||
6.22%, 08/01/2027 | 351 | 402 | 2.25%, 05/05/2021 | 555 | 543 | ||||||
Seagate HDD Cayman | 3.30%, 05/03/2027 | 30 | 29 | ||||||||
4.75%, 06/01/2023 | 530 | 496 | Ameriprise Financial Inc | ||||||||
4.75%, 01/01/2025 | 30 | 27 | 4.00%, 10/15/2023 | 225 | 231 | ||||||
$ | 13,764 | BlackRock Inc | |||||||||
Consumer Products - 0.05% | 3.38%, 06/01/2022 | 200 | 201 | ||||||||
Church & Dwight CoInc | 3.50%, 03/18/2024 | 500 | 505 | ||||||||
3.15%, 08/01/2027 | 300 | 282 | 4.25%, 05/24/2021 | 500 | 515 | ||||||
3.95%, 08/01/2047 | 300 | 273 | 5.00%, 12/10/2019 | 25 | 25 | ||||||
Clorox Co/The | Brookfield FinanceInc | ||||||||||
3.80%, 11/15/2021 | 128 | 131 | 3.90%, 01/25/2028 | 400 | 378 | ||||||
Kimberly-Clark Corp | Capital One Bank USA NA | ||||||||||
2.40%, 03/01/2022 | 257 | 251 | 3.38%, 02/15/2023 | 340 | 328 | ||||||
2.40%, 06/01/2023 | 150 | 145 | Capital One Financial Corp | ||||||||
$ | 1,082 | 2.50%, 05/12/2020 | 400 | 395 | |||||||
3.05%, 03/09/2022 | 30 | 29 | |||||||||
3.20%, 02/05/2025 | 415 | 387 | |||||||||
3.50%, 06/15/2023 | 114 | 112 | |||||||||
3.75%, 04/24/2024 | 5 | 5 |
See accompanying notes.
113
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Diversified Financial Services (continued) | Electric (continued) | ||||||||||
Capital One Financial Corp (continued) | Ameren Illinois Co | ||||||||||
3.75%, 03/09/2027 | $ | 1,020 | $ | 947 | 2.70%, 09/01/2022 | $ | 300 | $ | 295 | ||
4.20%, 10/29/2025 | 30 | 29 | Appalachian Power Co | ||||||||
4.75%, 07/15/2021 | 30 | 31 | 3.30%, 06/01/2027 | 400 | 382 | ||||||
Charles Schwab Corp/The | 7.00%, 04/01/2038 | 120 | 151 | ||||||||
3.25%, 05/21/2021 | 200 | 201 | Arizona Public Service Co | ||||||||
3.45%, 02/13/2026 | 250 | 248 | 4.50%, 04/01/2042 | 77 | 78 | ||||||
3.85%, 05/21/2025 | 200 | 204 | Baltimore Gas & Electric Co | ||||||||
CME GroupInc | 3.35%, 07/01/2023 | 500 | 501 | ||||||||
3.00%, 09/15/2022 | 25 | 25 | 4.25%, 09/15/2048 | 300 | 298 | ||||||
3.00%, 03/15/2025 | 530 | 516 | Berkshire Hathaway Energy Co | ||||||||
5.30%, 09/15/2043 | 200 | 233 | 3.75%, 11/15/2023 | 500 | 507 | ||||||
Credit Suisse USAInc | 3.80%, 07/15/2048 | 300 | 269 | ||||||||
7.13%, 07/15/2032 | 300 | 377 | 4.50%, 02/01/2045 | 250 | 250 | ||||||
Discover Financial Services | 5.15%, 11/15/2043 | 15 | 16 | ||||||||
4.10%, 02/09/2027 | 500 | 467 | 6.13%, 04/01/2036 | 156 | 187 | ||||||
GE Capital International Funding Co Unlimited | CMS Energy Corp | ||||||||||
Co | 3.45%, 08/15/2027 | 350 | 337 | ||||||||
2.34%, 11/15/2020 | 500 | 483 | 5.05%, 03/15/2022 | 500 | 522 | ||||||
3.37%, 11/15/2025 | 1,025 | 911 | Commonwealth Edison Co | ||||||||
4.42%, 11/15/2035 | 1,000 | 838 | 4.00%, 08/01/2020 | 510 | 517 | ||||||
Intercontinental ExchangeInc | Consolidated Edison Co of New York Inc | ||||||||||
2.75%, 12/01/2020 | 10 | 10 | 3.13%, 11/15/2027 | 300 | 288 | ||||||
3.75%, 12/01/2025 | 50 | 50 | 3.88%, 06/15/2047 | 500 | 461 | ||||||
4.25%, 09/21/2048 | 150 | 147 | 4.20%, 03/15/2042 | 128 | 125 | ||||||
International Lease Finance Corp | 4.30%, 12/01/2056 | 230 | 214 | ||||||||
5.88%, 08/15/2022 | 20 | 21 | 5.50%, 12/01/2039 | 400 | 452 | ||||||
8.25%, 12/15/2020 | 20 | 22 | 5.85%, 03/15/2036 | 51 | 60 | ||||||
Jefferies Group LLC | 6.75%, 04/01/2038 | 125 | 159 | ||||||||
6.50%, 01/20/2043 | 200 | 202 | Delmarva Power & Light Co | ||||||||
6.88%, 04/15/2021 | 27 | 29 | 4.15%, 05/15/2045 | 350 | 342 | ||||||
Jefferies Group LLC / Jefferies Group Capital | Dominion EnergyInc | ||||||||||
Finance Inc | 4.70%, 12/01/2044 | 300 | 299 | ||||||||
4.15%, 01/23/2030 | 400 | 343 | 4.90%, 08/01/2041 | 77 | 76 | ||||||
Mastercard Inc | 5.95%, 06/15/2035 | 800 | 893 | ||||||||
3.38%, 04/01/2024 | 25 | 25 | DTE Electric Co | ||||||||
Nasdaq Inc | 3.45%, 10/01/2020 | 405 | 407 | ||||||||
4.25%, 06/01/2024 | 350 | 353 | DTE Energy Co | ||||||||
National Rural Utilities Cooperative Finance Corp | 3.50%, 06/01/2024 | 500 | 495 | ||||||||
2.40%, 04/25/2022 | 300 | 292 | Duke Energy Carolinas LLC | ||||||||
3.05%, 02/15/2022 | 102 | 102 | 2.50%, 03/15/2023 | 279 | 270 | ||||||
3.05%, 04/25/2027 | 300 | 287 | 3.70%, 12/01/2047 | 300 | 272 | ||||||
3.25%, 11/01/2025 | 500 | 493 | 3.90%, 06/15/2021 | 410 | 416 | ||||||
Nomura HoldingsInc | 4.00%, 09/30/2042 | 100 | 96 | ||||||||
6.70%, 03/04/2020 | 129 | 134 | 5.30%, 02/15/2040 | 512 | 582 | ||||||
ORIX Corp | Duke Energy Corp | ||||||||||
3.70%, 07/18/2027 | 300 | 289 | 1.80%, 09/01/2021 | 45 | 43 | ||||||
Synchrony Financial | 2.65%, 09/01/2026 | 555 | 505 | ||||||||
2.70%, 02/03/2020 | 500 | 492 | 3.15%, 08/15/2027 | 15 | 14 | ||||||
3.75%, 08/15/2021 | 5 | 5 | 3.75%, 09/01/2046 | 600 | 519 | ||||||
4.25%, 08/15/2024 | 300 | 276 | Duke Energy Florida LLC | ||||||||
4.50%, 07/23/2025 | 20 | 18 | 3.40%, 10/01/2046 | 300 | 258 | ||||||
TD Ameritrade Holding Corp | 5.65%, 04/01/2040 | 25 | 29 | ||||||||
2.95%, 04/01/2022 | 20 | 20 | 6.40%, 06/15/2038 | 66 | 84 | ||||||
VisaInc | Duke Energy Indiana LLC | ||||||||||
2.20%, 12/14/2020 | 625 | 618 | 3.75%, 07/15/2020 | 37 | 37 | ||||||
2.80%, 12/14/2022 | 20 | 20 | 6.12%, 10/15/2035 | 77 | 95 | ||||||
3.15%, 12/14/2025 | 600 | 590 | 6.45%, 04/01/2039 | 300 | 381 | ||||||
3.65%, 09/15/2047 | 85 | 80 | Duke Energy Progress LLC | ||||||||
4.15%, 12/14/2035 | 215 | 222 | 4.15%, 12/01/2044 | 300 | 291 | ||||||
4.30%, 12/14/2045 | 375 | 388 | Emera US Finance LP | ||||||||
$ | 20,214 | 3.55%, 06/15/2026 | 25 | 24 | |||||||
Electric - 1.71% | 4.75%, 06/15/2046 | 25 | 24 | ||||||||
AEP Transmission Co LLC | Entergy Arkansas LLC | ||||||||||
4.00%, 12/01/2046 | 600 | 573 | 3.70%, 06/01/2024 | 500 | 508 | ||||||
Alabama Power Co | 3.75%, 02/15/2021 | 25 | 25 | ||||||||
4.30%, 01/02/2046 | 400 | 404 | Entergy Corp | ||||||||
5.13%, 09/15/2020 | 89 | 91 |
See accompanying notes.
114
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Electric (continued) | Electric (continued) | ||||||||||
Entergy Louisiana LLC | PPL Electric Utilities Corp | ||||||||||
3.12%, 09/01/2027 | $ | 300 | $ | 286 | 3.95%, 06/01/2047 | $ | 300 | $ | 291 | ||
EvergyInc | Progress EnergyInc | ||||||||||
4.85%, 06/01/2021 | 77 | 79 | 3.15%, 04/01/2022 | 128 | 126 | ||||||
EversourceEnergy | 7.75%, 03/01/2031 | 136 | 181 | ||||||||
2.50%, 03/15/2021 | 300 | 295 | PSEG Power LLC | ||||||||
Exelon Corp | 5.13%, 04/15/2020 | 300 | 308 | ||||||||
3.95%, 06/15/2025 | 25 | 25 | Public Service Co of Colorado | ||||||||
4.45%, 04/15/2046 | 20 | 19 | 2.25%, 09/15/2022 | 500 | 482 | ||||||
Exelon Generation Co LLC | 3.70%, 06/15/2028 | 300 | 304 | ||||||||
4.25%, 06/15/2022 | 500 | 507 | Public Service Electric & Gas Co | ||||||||
6.25%, 10/01/2039 | 349 | 364 | 3.00%, 05/15/2027 | 400 | 385 | ||||||
FirstEnergy Corp | 3.25%, 09/01/2023 | 400 | 402 | ||||||||
3.90%, 07/15/2027 | 900 | 872 | 3.65%, 09/01/2042 | 200 | 186 | ||||||
Florida Power & Light Co | Puget Sound EnergyInc | ||||||||||
3.70%, 12/01/2047 | 200 | 187 | 5.80%, 03/15/2040 | 351 | 418 | ||||||
5.65%, 02/01/2037 | 478 | 565 | Sempra Energy | ||||||||
5.69%, 03/01/2040 | 48 | 58 | 2.40%, 02/01/2020 | 300 | 296 | ||||||
Fortis Inc/Canada | 2.90%, 02/01/2023 | 300 | 292 | ||||||||
3.06%, 10/04/2026 | 20 | 18 | 3.40%, 02/01/2028 | 300 | 274 | ||||||
Georgia Power Co | 3.80%, 02/01/2038 | 300 | 256 | ||||||||
4.30%, 03/15/2042 | 228 | 210 | 4.00%, 02/01/2048 | 400 | 343 | ||||||
4.75%, 09/01/2040 | 500 | 494 | 6.00%, 10/15/2039 | 112 | 125 | ||||||
Gulf Power Co | South Carolina Electric & Gas Co | ||||||||||
3.30%, 05/30/2027 | 400 | 388 | 4.10%, 06/15/2046 | 300 | 280 | ||||||
Hydro-Quebec | 5.45%, 02/01/2041 | 77 | 89 | ||||||||
8.05%, 07/07/2024 | 102 | 127 | Southern California Edison Co | ||||||||
Iberdrola International BV | 2.40%, 02/01/2022 | 300 | 289 | ||||||||
6.75%, 07/15/2036 | 128 | 152 | 4.00%, 04/01/2047 | 15 | 14 | ||||||
Kentucky Utilities Co | 4.05%, 03/15/2042 | 668 | 626 | ||||||||
5.13%, 11/01/2040 | 500 | 561 | 5.50%, 03/15/2040 | 102 | 109 | ||||||
LG&E & KU Energy LLC | 5.95%, 02/01/2038 | 117 | 132 | ||||||||
3.75%, 11/15/2020 | 77 | 77 | Southern Co/The | ||||||||
Louisville Gas & Electric Co | 2.35%, 07/01/2021 | 520 | 505 | ||||||||
3.30%, 10/01/2025 | 50 | 49 | 3.25%, 07/01/2026 | 570 | 534 | ||||||
MidAmerican Energy Co | 5.50%, 03/15/2057(e) | 400 | 384 | ||||||||
4.25%, 05/01/2046 | 500 | 508 | 3 Month USD LIBOR + 3.63% | ||||||||
Mississippi Power Co | Southern Power Co | ||||||||||
4.25%, 03/15/2042 | 100 | 92 | 5.25%, 07/15/2043 | 200 | 198 | ||||||
Nevada Power Co | Southwestern Electric Power Co | ||||||||||
6.65%, 04/01/2036 | 400 | 519 | 2.75%, 10/01/2026 | 750 | 690 | ||||||
NextEra Energy Capital HoldingsInc | 3.85%, 02/01/2048 | 300 | 266 | ||||||||
4.50%, 06/01/2021 | 351 | 357 | 4.10%, 09/15/2028 | 400 | 401 | ||||||
Northern States Power Co/MN | 6.20%, 03/15/2040 | 51 | 60 | ||||||||
3.40%, 08/15/2042 | 100 | 90 | Tampa Electric Co | ||||||||
5.35%, 11/01/2039 | 82 | 95 | 4.35%, 05/15/2044 | 200 | 192 | ||||||
NorthWesternCorp | TransAlta Corp | ||||||||||
4.18%, 11/15/2044 | 300 | 300 | 6.50%, 03/15/2040 | 25 | 23 | ||||||
NSTAR Electric Co | Union Electric Co | ||||||||||
2.38%, 10/15/2022 | 750 | 723 | 3.50%, 04/15/2024 | 500 | 504 | ||||||
Oncor Electric Delivery Co LLC | Virginia Electric & Power Co | ||||||||||
5.25%, 09/30/2040 | 51 | 58 | 2.75%, 03/15/2023 | 500 | 488 | ||||||
7.25%, 01/15/2033 | 300 | 398 | 3.15%, 01/15/2026 | 30 | 29 | ||||||
Pacific Gas & Electric Co | 3.50%, 03/15/2027 | 30 | 30 | ||||||||
3.25%, 06/15/2023 | 1,000 | 885 | 4.00%, 11/15/2046 | 500 | 473 | ||||||
3.50%, 10/01/2020 | 25 | 24 | 4.65%, 08/15/2043 | 250 | 260 | ||||||
4.45%, 04/15/2042 | 102 | 82 | 6.00%, 05/15/2037 | 77 | 92 | ||||||
5.40%, 01/15/2040 | 143 | 127 | 8.88%, 11/15/2038 | 10 | 15 | ||||||
5.80%, 03/01/2037 | 5 | 5 | WEC Energy GroupInc | ||||||||
6.05%, 03/01/2034 | 982 | 910 | 3.55%, 06/15/2025 | 110 | 109 | ||||||
PacifiCorp | Westar EnergyInc | ||||||||||
6.25%, 10/15/2037 | 92 | 115 | 4.25%, 12/01/2045 | 500 | 490 | ||||||
PECO Energy Co | Wisconsin Electric Power Co | ||||||||||
2.38%, 09/15/2022 | 100 | 97 | 5.70%, 12/01/2036 | 450 | 531 | ||||||
3.90%, 03/01/2048 | 200 | 191 | $ | 37,908 | |||||||
PPL Capital FundingInc | Electrical Components & Equipment- 0.01% | ||||||||||
3.40%, 06/01/2023 | 300 | 297 | Emerson Electric Co | ||||||||
4.70%, 06/01/2043 | 100 | 98 | 2.63%, 02/15/2023 | 100 | 98 |
See accompanying notes.
115
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Electronics - 0.11% | Finance - Mortgage Loan/Banker (continued) | ||||||||||
Allegion US Holding CoInc | Federal Home Loan Banks (continued) | ||||||||||
3.55%, 10/01/2027 | $ | 500 | $ | 465 | 5.63%, 06/11/2021 | $ | 350 | $ | 375 | ||
Arrow Electronics Inc | Freddie Mac | ||||||||||
4.50%, 03/01/2023 | 200 | 203 | 1.38%, 04/20/2020 | 500 | 492 | ||||||
CorningInc | 1.38%, 05/01/2020 | 1,000 | 985 | ||||||||
4.38%, 11/15/2057 | 300 | 252 | 1.40%, 08/22/2019 | 500 | 496 | ||||||
4.75%, 03/15/2042 | 102 | 97 | 1.50%, 01/17/2020 | 1,000 | 989 | ||||||
Fortive Corp | 1.88%, 11/17/2020 | 750 | 741 | ||||||||
3.15%, 06/15/2026 | 535 | 504 | 2.38%, 01/13/2022 | 1,757 | 1,750 | ||||||
Honeywell InternationalInc | 2.75%, 06/19/2023 | 500 | 503 | ||||||||
1.85%, 11/01/2021 | 30 | 29 | 6.25%, 07/15/2032 | 231 | 308 | ||||||
2.50%, 11/01/2026 | 50 | 47 | 6.75%, 03/15/2031 | 577 | 784 | ||||||
3.35%, 12/01/2023 | 265 | 268 | $ | 27,555 | |||||||
3.81%, 11/21/2047 | 77 | 73 | Food - 0.52% | ||||||||
JabilInc | Campbell Soup Co | ||||||||||
3.95%, 01/12/2028 | 300 | 261 | 3.30%, 03/19/2025 | 300 | 277 | ||||||
4.70%, 09/15/2022 | 100 | 99 | 4.15%, 03/15/2028 | 160 | 149 | ||||||
Tyco Electronics Group SA | 4.25%, 04/15/2021 | 51 | 52 | ||||||||
7.13%, 10/01/2037 | 14 | 18 | ConagraBrands Inc | ||||||||
$ | 2,316 | 3.20%, 01/25/2023 | 567 | 550 | |||||||
Environmental Control - 0.08% | 4.85%, 11/01/2028 | 205 | 202 | ||||||||
Republic ServicesInc | 5.30%, 11/01/2038 | 120 | 113 | ||||||||
2.90%, 07/01/2026 | 500 | 472 | 5.40%, 11/01/2048 | 120 | 111 | ||||||
3.95%, 05/15/2028 | 300 | 300 | General MillsInc | ||||||||
4.75%, 05/15/2023 | 51 | 53 | 2.60%, 10/12/2022 | 500 | 482 | ||||||
5.25%, 11/15/2021 | 200 | 212 | 3.15%, 12/15/2021 | 77 | 76 | ||||||
Waste ManagementInc | 3.20%, 04/16/2021 | 500 | 497 | ||||||||
3.90%, 03/01/2035 | 200 | 194 | 3.70%, 10/17/2023 | 300 | 298 | ||||||
4.10%, 03/01/2045 | 210 | 203 | 4.00%, 04/17/2025 | 300 | 295 | ||||||
4.60%, 03/01/2021 | 350 | 361 | 4.55%, 04/17/2038 | 300 | 278 | ||||||
$ | 1,795 | Hershey Co/The | |||||||||
Federal & Federally Sponsored Credit- 0.04% | 2.90%, 05/15/2020 | 200 | 200 | ||||||||
Federal Farm Credit Banks | 3.10%, 05/15/2021 | 200 | 202 | ||||||||
1.55%, 04/13/2020 | 250 | 247 | 3.38%, 05/15/2023 | 200 | 201 | ||||||
1.58%, 02/17/2021 | 175 | 171 | 3.38%, 08/15/2046 | 350 | 315 | ||||||
1.90%, 11/27/2020 | 500 | 494 | Kellogg Co | ||||||||
$ | 912 | 2.65%, 12/01/2023 | 500 | 473 | |||||||
Finance - Mortgage Loan/Banker - 1.25% | 3.25%, 04/01/2026 | 500 | 470 | ||||||||
Fannie Mae | Koninklijke Ahold Delhaize NV | ||||||||||
1.13%, 07/26/2019 | 2,300 | 2,281 | 5.70%, 10/01/2040 | 30 | 33 | ||||||
1.25%, 02/26/2019 | 2,400 | 2,396 | Kraft Heinz Foods Co | ||||||||
1.25%, 05/06/2021 | 500 | 485 | 3.00%, 06/01/2026 | 65 | 58 | ||||||
1.38%, 02/26/2021 | 750 | 732 | 3.38%, 06/15/2021 | 400 | 399 | ||||||
1.38%, 10/07/2021 | 400 | 388 | 3.50%, 06/06/2022 | 330 | 327 | ||||||
1.50%, 02/28/2020 | 750 | 741 | 3.95%, 07/15/2025 | 625 | 605 | ||||||
1.50%, 11/30/2020 | 500 | 490 | 4.00%, 06/15/2023 | 400 | 399 | ||||||
1.63%, 01/21/2020 | 1,000 | 990 | 4.38%, 06/01/2046 | 395 | 325 | ||||||
1.70%, 01/27/2020 | 500 | 495 | 4.63%, 01/30/2029 | 400 | 396 | ||||||
1.88%, 12/28/2020 | 500 | 494 | 5.00%, 06/04/2042 | 200 | 179 | ||||||
1.88%, 04/05/2022 | 1,000 | 980 | 5.20%, 07/15/2045 | 235 | 215 | ||||||
2.00%, 01/05/2022 | 400 | 394 | 5.38%, 02/10/2020 | 95 | 97 | ||||||
2.00%, 10/05/2022 | 500 | 491 | 6.50%, 02/09/2040 | 75 | 80 | ||||||
2.13%, 04/24/2026 | 500 | 476 | 6.88%, 01/26/2039 | 161 | 180 | ||||||
2.38%, 01/19/2023 | 500 | 496 | Kroger Co/The | ||||||||
2.63%, 09/06/2024 | 750 | 747 | 3.30%, 01/15/2021 | 321 | 320 | ||||||
5.63%, 07/15/2037 | 200 | 264 | 3.40%, 04/15/2022 | 154 | 152 | ||||||
6.63%, 11/15/2030 | 602 | 807 | 3.70%, 08/01/2027 | 300 | 283 | ||||||
7.13%, 01/15/2030 | 199 | 274 | 4.45%, 02/01/2047 | 55 | 48 | ||||||
7.25%, 05/15/2030 | 280 | 389 | 5.15%, 08/01/2043 | 300 | 287 | ||||||
Federal Home Loan Banks | 5.40%, 07/15/2040 | 25 | 25 | ||||||||
1.13%, 07/14/2021 | 1,500 | 1,449 | 6.15%, 01/15/2020 | 12 | 12 | ||||||
1.38%, 09/28/2020 | 2,000 | 1,960 | MondelezInternational Inc | ||||||||
1.38%, 02/18/2021 | 250 | 244 | 3.63%, 05/07/2023 | 300 | 300 | ||||||
1.88%, 03/13/2020 | 500 | 496 | 4.13%, 05/07/2028 | 300 | 299 | ||||||
1.88%, 11/29/2021 | 250 | 245 | Sysco Corp | ||||||||
2.13%, 06/09/2023 | 200 | 196 | 4.85%, 10/01/2045 | 250 | 255 | ||||||
2.63%, 05/28/2020 | 500 | 501 | 5.38%, 09/21/2035 | 500 | 546 | ||||||
5.50%, 07/15/2036 | 180 | 231 |
See accompanying notes.
116
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Food (continued) | Healthcare - Products (continued) | ||||||||||
Tyson FoodsInc | Stryker Corp (continued) | ||||||||||
3.55%, 06/02/2027 | $ | 20 | $ | 19 | 4.38%, 01/15/2020 | $ | 25 | $ | 25 | ||
4.55%, 06/02/2047 | 520 | 456 | 4.63%, 03/15/2046 | 20 | 20 | ||||||
$ | 11,536 | Thermo Fisher ScientificInc | |||||||||
Forest Products & Paper- 0.11% | 2.95%, 09/19/2026 | 530 | 489 | ||||||||
Celulosa AraucoyConstitucionSA | 3.00%, 04/15/2023 | 20 | 19 | ||||||||
4.50%, 08/01/2024 | 500 | 494 | 4.15%, 02/01/2024 | 20 | 20 | ||||||
Georgia-Pacific LLC | 4.70%, 05/01/2020 | 51 | 52 | ||||||||
7.75%, 11/15/2029 | 51 | 68 | Zimmer Biomet HoldingsInc | ||||||||
8.00%, 01/15/2024 | 228 | 274 | 3.15%, 04/01/2022 | 500 | 489 | ||||||
International Paper Co | $ | 9,166 | |||||||||
3.00%, 02/15/2027 | 35 | 32 | Healthcare - Services- 0.62% | ||||||||
3.65%, 06/15/2024 | 443 | 445 | Aetna Inc | ||||||||
4.40%, 08/15/2047 | 350 | 294 | 2.80%, 06/15/2023 | 35 | 33 | ||||||
4.75%, 02/15/2022 | 373 | 389 | 4.13%, 06/01/2021 | 102 | 103 | ||||||
4.80%, 06/15/2044 | 300 | 269 | 4.13%, 11/15/2042 | 100 | 87 | ||||||
7.30%, 11/15/2039 | 25 | 29 | 6.63%, 06/15/2036 | 105 | 123 | ||||||
7.50%, 08/15/2021 | 92 | 102 | 6.75%, 12/15/2037 | 112 | 135 | ||||||
$ | 2,396 | AnthemInc | |||||||||
Gas- 0.08% | 2.50%, 11/21/2020 | 700 | 690 | ||||||||
AtmosEnergy Corp | 2.95%, 12/01/2022 | 300 | 293 | ||||||||
4.13%, 10/15/2044 | 400 | 386 | 3.30%, 01/15/2023 | 325 | 320 | ||||||
Dominion Energy Gas Holdings LLC | 3.50%, 08/15/2024 | 15 | 15 | ||||||||
4.80%, 11/01/2043 | 300 | 302 | 3.65%, 12/01/2027 | 300 | 287 | ||||||
NiSourceInc | 4.38%, 12/01/2047 | 300 | 279 | ||||||||
3.49%, 05/15/2027 | 20 | 19 | 4.63%, 05/15/2042 | 30 | 29 | ||||||
5.95%, 06/15/2041 | 525 | 582 | 4.65%, 01/15/2043 | 115 | 112 | ||||||
Southern California Gas Co | Ascension Health | ||||||||||
3.15%, 09/15/2024 | 500 | 496 | 3.95%, 11/15/2046 | 500 | 482 | ||||||
$ | 1,785 | Baylor Scott & White Holdings | |||||||||
Hand & Machine Tools- 0.01% | 3.97%, 11/15/2046 | 232 | 225 | ||||||||
Stanley Black & DeckerInc | Catholic Health Initiatives | ||||||||||
2.90%, 11/01/2022 | 200 | 196 | 4.35%, 11/01/2042 | 200 | 181 | ||||||
Healthcare - Products- 0.41% | Children's Hospital Corp/The | ||||||||||
Abbott Laboratories | 4.12%, 01/01/2047 | 500 | 502 | ||||||||
2.55%, 03/15/2022 | 35 | 34 | Children's Hospital Medical Center/Cincinnati | ||||||||
2.90%, 11/30/2021 | 520 | 516 | OH | ||||||||
3.75%, 11/30/2026 | 266 | 263 | 4.27%, 05/15/2044 | 465 | 472 | ||||||
4.75%, 11/30/2036 | 40 | 42 | Cigna Holding Co | ||||||||
5.30%, 05/27/2040 | 200 | 221 | 3.05%, 10/15/2027 | 500 | 457 | ||||||
Becton Dickinson and Co | 3.25%, 04/15/2025 | 775 | 737 | ||||||||
2.68%, 12/15/2019 | 355 | 352 | 3.88%, 10/15/2047 | 115 | 96 | ||||||
2.89%, 06/06/2022 | 50 | 48 | Coventry Health CareInc | ||||||||
3.25%, 11/12/2020 | 500 | 497 | 5.45%, 06/15/2021 | 500 | 518 | ||||||
3.36%, 06/06/2024 | 20 | 19 | Dignity Health | ||||||||
3.73%, 12/15/2024 | 394 | 381 | 3.13%, 11/01/2022 | 500 | 495 | ||||||
4.67%, 06/06/2047 | 35 | 33 | HumanaInc | ||||||||
4.69%, 12/15/2044 | 250 | 234 | 4.80%, 03/15/2047 | 500 | 500 | ||||||
5.00%, 11/12/2040 | 51 | 50 | 4.95%, 10/01/2044 | 325 | 334 | ||||||
Boston Scientific Corp | Kaiser Foundation Hospitals | ||||||||||
3.85%, 05/15/2025 | 530 | 521 | 4.15%, 05/01/2047 | 670 | 662 | ||||||
4.13%, 10/01/2023 | 350 | 355 | Laboratory Corp of America Holdings | ||||||||
6.00%, 01/15/2020 | 51 | 52 | 4.63%, 11/15/2020 | 500 | 510 | ||||||
7.38%, 01/15/2040 | 51 | 67 | 4.70%, 02/01/2045 | 15 | 14 | ||||||
Koninklijke Philips NV | Memorial Sloan-Kettering Cancer Center | ||||||||||
5.00%, 03/15/2042 | 128 | 138 | 4.13%, 07/01/2052 | 400 | 399 | ||||||
Medtronic Global Holdings SCA | 4.20%, 07/01/2055 | 250 | 251 | ||||||||
3.35%, 04/01/2027 | 45 | 44 | Mount Sinai Hospitals GroupInc | ||||||||
Medtronic Inc | 3.98%, 07/01/2048 | 400 | 374 | ||||||||
2.50%, 03/15/2020 | 400 | 398 | Partners Healthcare SystemInc | ||||||||
3.15%, 03/15/2022 | 560 | 558 | 4.12%, 07/01/2055 | 300 | 292 | ||||||
3.50%, 03/15/2025 | 1,880 | 1,873 | Quest DiagnosticsInc | ||||||||
4.38%, 03/15/2035 | 20 | 20 | 3.50%, 03/30/2025 | 500 | 488 | ||||||
4.63%, 03/15/2045 | 625 | 655 | 4.70%, 04/01/2021 | 102 | 105 | ||||||
Stryker Corp | 4.75%, 01/30/2020 | 3 | 3 | ||||||||
2.63%, 03/15/2021 | 15 | 15 | |||||||||
3.50%, 03/15/2026 | 500 | 481 | |||||||||
4.10%, 04/01/2043 | 200 | 185 |
See accompanying notes.
117
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Healthcare - Services (continued) | Insurance (continued) | ||||||||||
UnitedHealth GroupInc | Chubb INA HoldingsInc | ||||||||||
2.38%, 10/15/2022 | $ | 500 | $ | 485 | 2.30%, 11/03/2020 | $ | 15 | $ | 15 | ||
2.88%, 03/15/2022 | 180 | 179 | 2.88%, 11/03/2022 | 500 | 496 | ||||||
3.35%, 07/15/2022 | 30 | 30 | 3.35%, 05/03/2026 | 30 | 29 | ||||||
3.45%, 01/15/2027 | 540 | 534 | 4.35%, 11/03/2045 | 25 | 26 | ||||||
4.20%, 01/15/2047 | 30 | 30 | 6.70%, 05/15/2036 | 250 | 321 | ||||||
4.25%, 06/15/2048 | 165 | 165 | CNA Financial Corp | ||||||||
4.38%, 03/15/2042 | 750 | 751 | 5.75%, 08/15/2021 | 77 | 81 | ||||||
4.45%, 12/15/2048 | 120 | 123 | Hartford Financial Services GroupInc/The | ||||||||
4.63%, 07/15/2035 | 30 | 32 | 4.30%, 04/15/2043 | 250 | 232 | ||||||
4.70%, 02/15/2021 | 90 | 93 | Lincoln National Corp | ||||||||
6.50%, 06/15/2037 | 77 | 98 | 3.80%, 03/01/2028 | 60 | 58 | ||||||
6.88%, 02/15/2038 | 491 | 641 | 4.00%, 09/01/2023 | 1,000 | 1,019 | ||||||
$ | 13,764 | 4.35%, 03/01/2048 | 55 | 51 | |||||||
Home Furnishings- 0.00% | 6.15%, 04/07/2036 | 6 | 7 | ||||||||
Whirlpool Corp | 7.00%, 06/15/2040 | 47 | 59 | ||||||||
4.85%, 06/15/2021 | 77 | 79 | Loews Corp | ||||||||
Housewares- 0.05% | 2.63%, 05/15/2023 | 200 | 194 | ||||||||
Newell Brands Inc | 4.13%, 05/15/2043 | 200 | 183 | ||||||||
3.85%, 04/01/2023 | 400 | 394 | Manulife Financial Corp | ||||||||
4.20%, 04/01/2026 | 500 | 489 | 5.38%, 03/04/2046 | 250 | 269 | ||||||
5.38%, 04/01/2036 | 270 | 257 | Marsh & McLennan CosInc | ||||||||
$ | 1,140 | 2.35%, 03/06/2020 | 300 | 297 | |||||||
Insurance - 0.75% | 3.75%, 03/14/2026 | 750 | 741 | ||||||||
AflacInc | MetLife Inc | ||||||||||
3.63%, 11/15/2024 | 230 | 230 | 3.00%, 03/01/2025 | 300 | 287 | ||||||
Allied World Assurance Co Holdings Ltd | 3.60%, 04/10/2024 | 250 | 252 | ||||||||
4.35%, 10/29/2025 | 500 | 493 | 4.37%, 09/15/2023 | 235 | 242 | ||||||
Allstate Corp/The | 4.60%, 05/13/2046 | 225 | 225 | ||||||||
3.28%, 12/15/2026 | 500 | 490 | 4.88%, 11/13/2043 | 20 | 21 | ||||||
5.55%, 05/09/2035 | 200 | 227 | 5.70%, 06/15/2035 | 164 | 185 | ||||||
American International GroupInc | 6.40%, 12/15/2066 | 288 | 292 | ||||||||
3.75%, 07/10/2025 | 20 | 19 | 3 Month USD LIBOR + 2.21% | ||||||||
3.88%, 01/15/2035 | 750 | 644 | PartnerRe Finance B LLC | ||||||||
4.20%, 04/01/2028 | 190 | 183 | 5.50%, 06/01/2020 | 115 | 118 | ||||||
4.38%, 01/15/2055 | 30 | 25 | Progressive Corp/The | ||||||||
4.70%, 07/10/2035 | 750 | 711 | 3.75%, 08/23/2021 | 277 | 281 | ||||||
4.80%, 07/10/2045 | 50 | 47 | 4.35%, 04/25/2044 | 200 | 204 | ||||||
4.88%, 06/01/2022 | 280 | 290 | Prudential Financial Inc | ||||||||
Aon Corp | 3.50%, 05/15/2024 | 700 | 704 | ||||||||
5.00%, 09/30/2020 | 128 | 132 | 3.91%, 12/07/2047 | 177 | 158 | ||||||
Aon PLC | 4.50%, 11/16/2021 | 128 | 132 | ||||||||
3.88%, 12/15/2025 | 20 | 20 | 5.20%, 03/15/2044(e) | 350 | 328 | ||||||
Arch Capital Finance LLC | 3 Month USD LIBOR + 3.04% | ||||||||||
5.03%, 12/15/2046 | 250 | 261 | 5.70%, 12/14/2036 | 25 | 28 | ||||||
Arch Capital Group USInc | 5.70%, 09/15/2048(e) | 500 | 465 | ||||||||
5.14%, 11/01/2043 | 375 | 393 | 3 Month USD LIBOR + 2.67% | ||||||||
Athene Holding Ltd | Reinsurance Group of AmericaInc | ||||||||||
4.13%, 01/12/2028 | 500 | 454 | 4.70%, 09/15/2023 | 200 | 209 | ||||||
AXA Equitable HoldingsInc | Travelers Cos Inc/The | ||||||||||
4.35%, 04/20/2028(g) | 205 | 194 | 4.00%, 05/30/2047 | 400 | 384 | ||||||
AXA SA | 6.25%, 06/15/2037 | 12 | 15 | ||||||||
8.60%, 12/15/2030 | 38 | 47 | 6.75%, 06/20/2036 | 51 | 66 | ||||||
Berkshire Hathaway Finance Corp | Trinity Acquisition PLC | ||||||||||
3.00%, 05/15/2022 | 30 | 30 | 4.40%, 03/15/2026 | 500 | 497 | ||||||
4.20%, 08/15/2048 | 285 | 283 | Willis North AmericaInc | ||||||||
4.25%, 01/15/2021 | 102 | 105 | 3.60%, 05/15/2024 | 300 | 293 | ||||||
4.30%, 05/15/2043 | 300 | 305 | XLIT Ltd | ||||||||
5.75%, 01/15/2040 | 115 | 137 | 5.25%, 12/15/2043 | 400 | 427 | ||||||
Berkshire HathawayInc | $ | 16,635 | |||||||||
2.20%, 03/15/2021 | 415 | 409 | Internet - 0.29% | ||||||||
2.75%, 03/15/2023 | 30 | 29 | Alibaba Group Holding Ltd | ||||||||
3.13%, 03/15/2026 | 350 | 339 | 3.13%, 11/28/2021 | 270 | 267 | ||||||
3.40%, 01/31/2022 | 205 | 208 | 3.40%, 12/06/2027 | 325 | 301 | ||||||
4.50%, 02/11/2043 | 25 | 26 | 3.60%, 11/28/2024 | 300 | 294 | ||||||
Chubb Corp/The | 4.40%, 12/06/2057 | 305 | 275 | ||||||||
6.50%, 05/15/2038 | 10 | 13 |
See accompanying notes.
118
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Internet (continued) | Machinery - Diversified (continued) | ||||||||||
AlphabetInc | John Deere Capital Corp | ||||||||||
2.00%, 08/15/2026 | $ | 30 | $ | 27 | 2.80%, 03/06/2023 | $ | 20 | $ | 20 | ||
3.38%, 02/25/2024 | 530 | 538 | 3.05%, 01/06/2028 | 300 | 285 | ||||||
3.63%, 05/19/2021 | 51 | 52 | 3.90%, 07/12/2021 | 500 | 510 | ||||||
Amazon.comInc | Rockwell Automation Inc | ||||||||||
2.40%, 02/22/2023 | 370 | 358 | 2.05%, 03/01/2020 | 250 | 247 | ||||||
2.50%, 11/29/2022 | 130 | 127 | Roper TechnologiesInc | ||||||||
3.15%, 08/22/2027 | 490 | 473 | 2.80%, 12/15/2021 | 500 | 490 | ||||||
3.80%, 12/05/2024 | 20 | 21 | 3.13%, 11/15/2022 | 750 | 735 | ||||||
3.88%, 08/22/2037 | 340 | 328 | XylemInc/NY | ||||||||
4.05%, 08/22/2047 | 30 | 29 | 4.88%, 10/01/2021 | 19 | 20 | ||||||
4.25%, 08/22/2057 | 630 | 612 | $ | 2,989 | |||||||
4.80%, 12/05/2034 | 30 | 32 | Media - 0.97% | ||||||||
4.95%, 12/05/2044 | 515 | 571 | 21st Century Fox AmericaInc | ||||||||
Baidu Inc | 3.70%, 10/15/2025 | 500 | 503 | ||||||||
3.50%, 11/28/2022 | 500 | 495 | 4.50%, 02/15/2021 | 200 | 205 | ||||||
4.13%, 06/30/2025 | 500 | 492 | 4.95%, 10/15/2045 | 350 | 384 | ||||||
eBayInc | 5.65%, 08/15/2020 | 51 | 53 | ||||||||
2.60%, 07/15/2022 | 600 | 580 | 6.15%, 03/01/2037 | 15 | 18 | ||||||
2.75%, 01/30/2023 | 10 | 10 | 6.15%, 02/15/2041 | 577 | 717 | ||||||
2.88%, 08/01/2021 | 5 | 5 | 6.20%, 12/15/2034 | 154 | 187 | ||||||
3.45%, 08/01/2024 | 30 | 29 | 6.40%, 12/15/2035 | 128 | 160 | ||||||
3.80%, 03/09/2022 | 500 | 502 | CBS Corp | ||||||||
4.00%, 07/15/2042 | 100 | 74 | 2.90%, 06/01/2023 | 200 | 191 | ||||||
$ | 6,492 | 4.00%, 01/15/2026 | 515 | 499 | |||||||
Iron & Steel- 0.08% | 4.30%, 02/15/2021 | 535 | 542 | ||||||||
Nucor Corp | 4.85%, 07/01/2042 | 200 | 184 | ||||||||
4.00%, 08/01/2023 | 500 | 508 | 7.88%, 07/30/2030 | 178 | 222 | ||||||
Vale Overseas Ltd | Charter Communications Operating LLC / Charter | ||||||||||
4.38%, 01/11/2022 | 96 | 98 | Communications Operating Capital | ||||||||
6.25%, 08/10/2026 | 400 | 432 | 4.46%, 07/23/2022 | 340 | 343 | ||||||
6.88%, 11/21/2036 | 617 | 705 | 5.75%, 04/01/2048 | 605 | 567 | ||||||
8.25%, 01/17/2034 | 38 | 47 | 6.38%, 10/23/2035 | 800 | 821 | ||||||
$ | 1,790 | 6.48%, 10/23/2045 | 435 | 447 | |||||||
Leisure Products & Services- 0.02% | Comcast Corp | ||||||||||
Royal Caribbean Cruises Ltd | 2.35%, 01/15/2027 | 60 | 54 | ||||||||
7.50%, 10/15/2027 | 400 | 475 | 2.75%, 03/01/2023 | 115 | 112 | ||||||
Lodging - 0.07% | 2.85%, 01/15/2023 | 100 | 98 | ||||||||
Marriott International Inc/MD | 3.13%, 07/15/2022 | 30 | 30 | ||||||||
2.30%, 01/15/2022 | 30 | 29 | 3.15%, 03/01/2026 | 30 | 29 | ||||||
2.88%, 03/01/2021 | 500 | 493 | 3.38%, 08/15/2025 | 525 | 512 | ||||||
3.13%, 10/15/2021 | 500 | 496 | 3.40%, 07/15/2046 | 20 | 17 | ||||||
Sands China Ltd | 3.55%, 05/01/2028 | 125 | 121 | ||||||||
4.60%, 08/08/2023(g) | 200 | 199 | 3.60%, 03/01/2024 | 30 | 30 | ||||||
5.40%, 08/08/2028(g) | 300 | 289 | 3.70%, 04/15/2024 | 640 | 644 | ||||||
$ | 1,506 | 3.90%, 03/01/2038 | 150 | 139 | |||||||
Machinery - Construction & Mining- 0.09% | 4.00%, 08/15/2047 | 30 | 27 | ||||||||
ABB Finance USAInc | 4.00%, 03/01/2048 | 400 | 364 | ||||||||
2.88%, 05/08/2022 | 100 | 98 | 4.00%, 11/01/2049 | 20 | 18 | ||||||
Caterpillar Financial Services Corp | 4.20%, 08/15/2034 | 750 | 723 | ||||||||
1.70%, 08/09/2021 | 380 | 365 | 4.25%, 01/15/2033 | 120 | 119 | ||||||
1.93%, 10/01/2021 | 190 | 184 | 4.40%, 08/15/2035 | 500 | 484 | ||||||
2.95%, 05/15/2020 | 400 | 400 | 4.60%, 10/15/2038 | 385 | 389 | ||||||
3.45%, 05/15/2023 | 300 | 301 | 4.60%, 08/15/2045 | 500 | 487 | ||||||
Caterpillar Inc | 4.65%, 07/15/2042 | 115 | 114 | ||||||||
3.40%, 05/15/2024 | 30 | 30 | 4.75%, 03/01/2044 | 45 | 45 | ||||||
3.80%, 08/15/2042 | 105 | 98 | 5.15%, 03/01/2020 | 774 | 792 | ||||||
3.90%, 05/27/2021 | 60 | 61 | 5.65%, 06/15/2035 | 20 | 22 | ||||||
4.75%, 05/15/2064 | 350 | 355 | 6.40%, 03/01/2040 | 500 | 587 | ||||||
6.05%, 08/15/2036 | 132 | 159 | 6.45%, 03/15/2037 | 85 | 101 | ||||||
$ | 2,051 | 6.95%, 08/15/2037 | 274 | 337 | |||||||
7.05%, 03/15/2033 | 15 | 19 | |||||||||
Machinery - Diversified- 0.14% | Discovery Communications LLC | ||||||||||
Deere & Co | 2.80%, 06/15/2020(g) | 500 | 495 | ||||||||
3.90%, 06/09/2042 | 30 | 29 | 3.25%, 04/01/2023 | 200 | 193 | ||||||
5.38%, 10/16/2029 | 500 | 570 | 3.95%, 03/20/2028 | 500 | 464 | ||||||
Dover Corp | 4.38%, 06/15/2021 | 500 | 509 | ||||||||
5.38%, 03/01/2041 | 77 | 83 | 4.88%, 04/01/2043 | 25 | 22 |
See accompanying notes.
119
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Media (continued) | Mining (continued) | ||||||||||
Discovery Communications LLC (continued) | Rio Tinto Finance USA Ltd | ||||||||||
6.35%, 06/01/2040 | $ | 73 | $ | 76 | 7.13%, 07/15/2028 | $ | 537 | $ | 669 | ||
GrupoTelevisaSAB | Rio Tinto Finance USA PLC | ||||||||||
4.63%, 01/30/2026 | 500 | 494 | 4.75%, 03/22/2042 | 328 | 341 | ||||||
6.63%, 03/18/2025 | 200 | 219 | Southern Copper Corp | ||||||||
NBCUniversalMedia LLC | 5.38%, 04/16/2020 | 25 | 25 | ||||||||
4.38%, 04/01/2021 | 151 | 155 | 5.88%, 04/23/2045 | 350 | 358 | ||||||
4.45%, 01/15/2043 | 15 | 14 | 6.75%, 04/16/2040 | 258 | 285 | ||||||
5.15%, 04/30/2020 | 575 | 590 | $ | 4,053 | |||||||
6.40%, 04/30/2040 | 251 | 295 | Miscellaneous Manufacturers - 0.26% | ||||||||
Thomson Reuters Corp | 3M Co | ||||||||||
5.85%, 04/15/2040 | 25 | 26 | 1.63%, 09/19/2021 | 500 | 485 | ||||||
Time Warner Cable LLC | 3.13%, 09/19/2046 | 300 | 259 | ||||||||
4.00%, 09/01/2021 | 190 | 189 | Crane Co | ||||||||
5.50%, 09/01/2041 | 340 | 310 | 4.45%, 12/15/2023 | 100 | 103 | ||||||
5.88%, 11/15/2040 | 20 | 19 | Eaton Corp | ||||||||
6.55%, 05/01/2037 | 176 | 181 | 2.75%, 11/02/2022 | 100 | 97 | ||||||
6.75%, 06/15/2039 | 77 | 78 | 3.92%, 09/15/2047 | 400 | 358 | ||||||
7.30%, 07/01/2038 | 300 | 325 | 4.00%, 11/02/2032 | 100 | 99 | ||||||
Time Warner Entertainment Co LP | 4.15%, 11/02/2042 | 50 | 47 | ||||||||
8.38%, 07/15/2033 | 95 | 116 | General Electric Co | ||||||||
ViacomInc | 2.70%, 10/09/2022 | 385 | 357 | ||||||||
3.88%, 12/15/2021 | 128 | 129 | 3.10%, 01/09/2023 | 35 | 33 | ||||||
4.38%, 03/15/2043 | 435 | 343 | 3.38%, 03/11/2024 | 20 | 19 | ||||||
6.88%, 04/30/2036 | 181 | 194 | 4.13%, 10/09/2042 | 325 | 254 | ||||||
Walt Disney Co/The | 4.38%, 09/16/2020 | 25 | 25 | ||||||||
2.30%, 02/12/2021 | 500 | 494 | 4.50%, 03/11/2044 | 70 | 57 | ||||||
2.35%, 12/01/2022 | 770 | 748 | 4.63%, 01/07/2021 | 77 | 77 | ||||||
2.75%, 08/16/2021 | 102 | 101 | 4.65%, 10/17/2021 | 30 | 30 | ||||||
3.70%, 12/01/2042 | 100 | 92 | 5.30%, 02/11/2021 | 308 | 308 | ||||||
3.75%, 06/01/2021 | 200 | 204 | 5.50%, 01/08/2020 | 295 | 298 | ||||||
7.00%, 03/01/2032 | 51 | 67 | 6.15%, 08/07/2037 | 155 | 151 | ||||||
Warner Media LLC | 6.75%, 03/15/2032 | 896 | 934 | ||||||||
2.95%, 07/15/2026 | 20 | 18 | Illinois Tool Works Inc | ||||||||
3.60%, 07/15/2025 | 500 | 474 | 2.65%, 11/15/2026 | 500 | 465 | ||||||
3.80%, 02/15/2027 | 40 | 37 | 3.50%, 03/01/2024 | 350 | 355 | ||||||
4.00%, 01/15/2022 | 180 | 182 | Ingersoll-Rand Global Holding Co Ltd | ||||||||
4.05%, 12/15/2023 | 500 | 499 | 3.75%, 08/21/2028 | 70 | 68 | ||||||
4.65%, 06/01/2044 | 500 | 438 | Ingersoll-Rand Luxembourg Finance SA | ||||||||
4.70%, 01/15/2021 | 81 | 83 | 4.65%, 11/01/2044 | 300 | 293 | ||||||
4.85%, 07/15/2045 | 60 | 54 | Parker-Hannifin Corp | ||||||||
5.38%, 10/15/2041 | 128 | 123 | 3.50%, 09/15/2022 | 577 | 580 | ||||||
$ | 21,507 | $ | 5,752 | ||||||||
Metal Fabrication & Hardware- 0.02% | Office & Business Equipment- 0.03% | ||||||||||
Precision Castparts Corp | Xerox Corp | ||||||||||
2.50%, 01/15/2023 | 100 | 97 | 2.75%, 09/01/2020 | 415 | 398 | ||||||
3.25%, 06/15/2025 | 25 | 24 | 4.50%, 05/15/2021 | 226 | 221 | ||||||
4.38%, 06/15/2045 | 250 | 253 | $ | 619 | |||||||
$ | 374 | Oil & Gas- 1.53% | |||||||||
Mining - 0.18% | Anadarko Finance Co | ||||||||||
Barrick Gold Corp | 7.50%, 05/01/2031 | 77 | 91 | ||||||||
5.25%, 04/01/2042 | 20 | 20 | Anadarko Petroleum Corp | ||||||||
Barrick North America Finance LLC | 4.50%, 07/15/2044 | 100 | 85 | ||||||||
5.75%, 05/01/2043 | 355 | 373 | 4.85%, 03/15/2021 | 16 | 16 | ||||||
Barrick PD Australia Finance Pty Ltd | 6.20%, 03/15/2040 | 25 | 26 | ||||||||
5.95%, 10/15/2039 | 90 | 96 | 6.45%, 09/15/2036 | 725 | 783 | ||||||
BHP Billiton Finance USA Ltd | 6.60%, 03/15/2046 | 40 | 44 | ||||||||
4.13%, 02/24/2042 | 328 | 313 | Apache Corp | ||||||||
5.00%, 09/30/2043 | 520 | 568 | 2.63%, 01/15/2023 | 288 | 272 | ||||||
GoldcorpInc | 3.25%, 04/15/2022 | 25 | 25 | ||||||||
3.63%, 06/09/2021 | 300 | 299 | 3.63%, 02/01/2021 | 577 | 576 | ||||||
Newmont Mining Corp | 4.75%, 04/15/2043 | 133 | 114 | ||||||||
3.50%, 03/15/2022 | 30 | 30 | 5.10%, 09/01/2040 | 92 | 83 | ||||||
4.88%, 03/15/2042 | 20 | 19 | BP Capital Markets America Inc | ||||||||
6.25%, 10/01/2039 | 515 | 564 | 3.22%, 11/28/2023 | 30 | 30 | ||||||
Rio Tinto Alcan Inc | 3.22%, 04/14/2024 | 420 | 411 | ||||||||
6.13%, 12/15/2033 | 77 | 93 | 3.59%, 04/14/2027 | 30 | 29 | ||||||
4.50%, 10/01/2020 | 20 | 20 |
See accompanying notes.
120
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Oil & Gas (continued) | Oil & Gas (continued) | ||||||||||
BP Capital Markets America Inc (continued) | Hess Corp | ||||||||||
4.74%, 03/11/2021 | $ | 128 | $ | 132 | 5.60%, 02/15/2041 | $ | 51 | $ | 45 | ||
BP Capital Markets PLC | 7.13%, 03/15/2033 | 221 | 235 | ||||||||
2.32%, 02/13/2020 | 200 | 198 | 7.30%, 08/15/2031 | 25 | 27 | ||||||
2.50%, 11/06/2022 | 1,220 | 1,180 | HollyFrontier Corp | ||||||||
3.06%, 03/17/2022 | 315 | 312 | 5.88%, 04/01/2026 | 475 | 480 | ||||||
3.28%, 09/19/2027 | 175 | 167 | Marathon Oil Corp | ||||||||
3.54%, 11/04/2024 | 20 | 20 | 2.80%, 11/01/2022 | 10 | 9 | ||||||
3.56%, 11/01/2021 | 200 | 202 | 3.85%, 06/01/2025 | 505 | 474 | ||||||
3.72%, 11/28/2028 | 40 | 39 | 6.60%, 10/01/2037 | 223 | 250 | ||||||
3.81%, 02/10/2024 | 400 | 404 | Marathon Petroleum Corp | ||||||||
Canadian Natural Resources Ltd | 3.63%, 09/15/2024 | 400 | 389 | ||||||||
2.95%, 01/15/2023 | 30 | 29 | 4.75%, 12/15/2023(g) | 300 | 308 | ||||||
3.85%, 06/01/2027 | 55 | 52 | 5.00%, 09/15/2054 | 200 | 182 | ||||||
4.95%, 06/01/2047 | 20 | 19 | 5.13%, 03/01/2021 | 77 | 79 | ||||||
6.25%, 03/15/2038 | 664 | 722 | 5.13%, 12/15/2026(g) | 300 | 307 | ||||||
Cenovus EnergyInc | NexenEnergy ULC | ||||||||||
4.25%, 04/15/2027 | 400 | 364 | 5.88%, 03/10/2035 | 500 | 573 | ||||||
5.40%, 06/15/2047 | 480 | 413 | 6.40%, 05/15/2037 | 157 | 191 | ||||||
Chevron Corp | 7.50%, 07/30/2039 | 15 | 21 | ||||||||
2.10%, 05/16/2021 | 80 | 78 | Noble EnergyInc | ||||||||
2.36%, 12/05/2022 | 325 | 315 | 5.05%, 11/15/2044 | 25 | 22 | ||||||
2.41%, 03/03/2022 | 500 | 489 | 5.25%, 11/15/2043 | 350 | 311 | ||||||
2.43%, 06/24/2020 | 450 | 447 | 6.00%, 03/01/2041 | 102 | 100 | ||||||
2.95%, 05/16/2026 | 355 | 342 | Occidental Petroleum Corp | ||||||||
3.19%, 06/24/2023 | 15 | 15 | 2.70%, 02/15/2023 | 330 | 320 | ||||||
CNOOC Finance 2013 Ltd | 3.13%, 02/15/2022 | 30 | 30 | ||||||||
3.00%, 05/09/2023 | 150 | 145 | 3.50%, 06/15/2025 | 500 | 495 | ||||||
4.25%, 05/09/2043 | 100 | 96 | 4.10%, 02/15/2047 | 300 | 280 | ||||||
CNOOCNexenFinance 2014 ULC | 4.40%, 04/15/2046 | 50 | 49 | ||||||||
4.25%, 04/30/2024 | 500 | 507 | 4.63%, 06/15/2045 | 25 | 25 | ||||||
Concho ResourcesInc | Patterson-UTI EnergyInc | ||||||||||
4.30%, 08/15/2028 | 300 | 293 | 3.95%, 02/01/2028 | 300 | 275 | ||||||
4.88%, 10/01/2047 | 120 | 114 | Petro-Canada | ||||||||
Conoco Funding Co | 5.95%, 05/15/2035 | 400 | 449 | ||||||||
7.25%, 10/15/2031 | 200 | 261 | 6.80%, 05/15/2038 | 12 | 14 | ||||||
ConocoPhillips | Petroleos Mexicanos | ||||||||||
6.50%, 02/01/2039 | 169 | 209 | 3.50%, 07/23/2020 | 350 | 342 | ||||||
ConocoPhillips Co | 4.50%, 01/23/2026 | 500 | 431 | ||||||||
4.30%, 11/15/2044 | 420 | 413 | 4.88%, 01/24/2022 | 385 | 375 | ||||||
ConocoPhillips Holding Co | 5.50%, 01/21/2021 | 208 | 207 | ||||||||
6.95%, 04/15/2029 | 202 | 250 | 5.50%, 06/27/2044 | 350 | 265 | ||||||
Devon Energy Corp | 6.38%, 01/23/2045 | 400 | 322 | ||||||||
3.25%, 05/15/2022 | 60 | 58 | 6.50%, 03/13/2027 | 1,790 | 1,683 | ||||||
5.00%, 06/15/2045 | 10 | 9 | 6.63%, 06/15/2035 | 536 | 468 | ||||||
5.60%, 07/15/2041 | 425 | 403 | 6.75%, 09/21/2047 | 1,140 | 943 | ||||||
EcopetrolSA | Phillips 66 | ||||||||||
4.13%, 01/16/2025 | 500 | 475 | 4.30%, 04/01/2022 | 1,143 | 1,173 | ||||||
5.88%, 09/18/2023 | 250 | 261 | 5.88%, 05/01/2042 | 128 | 140 | ||||||
EOG ResourcesInc | Pioneer Natural Resources Co | ||||||||||
2.63%, 03/15/2023 | 200 | 192 | 3.95%, 07/15/2022 | 100 | 100 | ||||||
4.15%, 01/15/2026 | 350 | 359 | Shell International Finance BV | ||||||||
4.40%, 06/01/2020 | 51 | 52 | 1.75%, 09/12/2021 | 65 | 63 | ||||||
EquinorASA | 2.38%, 08/21/2022 | 130 | 127 | ||||||||
2.45%, 01/17/2023 | 30 | 29 | 2.50%, 09/12/2026 | 330 | 306 | ||||||
2.65%, 01/15/2024 | 400 | 387 | 3.40%, 08/12/2023 | 1,530 | 1,543 | ||||||
3.15%, 01/23/2022 | 102 | 102 | 3.63%, 08/21/2042 | 100 | 91 | ||||||
3.95%, 05/15/2043 | 200 | 191 | 3.75%, 09/12/2046 | 30 | 28 | ||||||
5.10%, 08/17/2040 | 263 | 290 | 4.00%, 05/10/2046 | 245 | 237 | ||||||
Exxon Mobil Corp | 4.13%, 05/11/2035 | 410 | 407 | ||||||||
2.22%, 03/01/2021 | 530 | 522 | 4.38%, 03/25/2020 | 25 | 25 | ||||||
2.40%, 03/06/2022 | 30 | 29 | 4.38%, 05/11/2045 | 490 | 502 | ||||||
2.71%, 03/06/2025 | 30 | 29 | 4.55%, 08/12/2043 | 35 | 36 | ||||||
2.73%, 03/01/2023 | 30 | 30 | 5.50%, 03/25/2040 | 25 | 29 | ||||||
3.04%, 03/01/2026 | 280 | 273 | 6.38%, 12/15/2038 | 43 | 54 | ||||||
3.18%, 03/15/2024 | 530 | 531 | |||||||||
3.57%, 03/06/2045 | 300 | 283 | |||||||||
4.11%, 03/01/2046 | 95 | 96 |
See accompanying notes.
121
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Oil & Gas (continued) | Pharmaceuticals (continued) | ||||||||||
Suncor EnergyInc | AstraZeneca PLC (continued) | ||||||||||
4.00%, 11/15/2047 | $ | 90 | $ | 80 | 4.38%, 08/17/2048 | $ | 90 | $ | 85 | ||
6.50%, 06/15/2038 | 428 | 493 | 6.45%, 09/15/2037 | 164 | 196 | ||||||
6.85%, 06/01/2039 | 5 | 6 | Bristol-Myers Squibb Co | ||||||||
Total Capital International SA | 3.25%, 08/01/2042 | 300 | 261 | ||||||||
2.75%, 06/19/2021 | 400 | 397 | Cardinal HealthInc | ||||||||
2.88%, 02/17/2022 | 128 | 126 | 2.62%, 06/15/2022 | 250 | 241 | ||||||
Total Capital SA | 3.08%, 06/15/2024 | 50 | 47 | ||||||||
4.25%, 12/15/2021 | 51 | 53 | 3.20%, 03/15/2023 | 200 | 193 | ||||||
4.45%, 06/24/2020 | 500 | 510 | 3.41%, 06/15/2027 | 200 | 181 | ||||||
Valero Energy Corp | 4.60%, 03/15/2043 | 100 | 87 | ||||||||
3.65%, 03/15/2025 | 500 | 477 | Cigna Corp | ||||||||
6.13%, 02/01/2020 | 138 | 142 | 3.40%, 09/17/2021(g) | 400 | 399 | ||||||
6.63%, 06/15/2037 | 234 | 256 | 4.13%, 11/15/2025(g) | 270 | 270 | ||||||
7.50%, 04/15/2032 | 15 | 19 | 4.80%, 08/15/2038(g) | 400 | 393 | ||||||
$ | 33,829 | 4.90%, 12/15/2048(g) | 360 | 352 | |||||||
Oil & Gas Services- 0.11% | CVS Health Corp | ||||||||||
Baker Hughes a GE Co LLC | 2.13%, 06/01/2021 | 30 | 29 | ||||||||
3.20%, 08/15/2021 | 149 | 147 | 2.80%, 07/20/2020 | 530 | 525 | ||||||
Baker Hughes a GE Co LLC / Baker Hughes Co- | 3.50%, 07/20/2022 | 1,000 | 993 | ||||||||
ObligorInc | 4.00%, 12/05/2023 | 30 | 30 | ||||||||
2.77%, 12/15/2022 | 155 | 149 | 4.13%, 05/15/2021 | 500 | 506 | ||||||
3.34%, 12/15/2027 | 165 | 152 | 4.30%, 03/25/2028 | 500 | 489 | ||||||
4.08%, 12/15/2047 | 170 | 140 | 4.78%, 03/25/2038 | 610 | 585 | ||||||
Halliburton Co | 5.05%, 03/25/2048 | 980 | 953 | ||||||||
3.25%, 11/15/2021 | 651 | 650 | 5.13%, 07/20/2045 | 370 | 360 | ||||||
3.80%, 11/15/2025 | 275 | 267 | 5.30%, 12/05/2043 | 25 | 25 | ||||||
4.50%, 11/15/2041 | 51 | 47 | Eli Lilly & Co | ||||||||
4.85%, 11/15/2035 | 275 | 270 | 2.75%, 06/01/2025 | 10 | 10 | ||||||
7.45%, 09/15/2039 | 10 | 12 | 3.70%, 03/01/2045 | 510 | 479 | ||||||
National Oilwell VarcoInc | Express Scripts Holding Co | ||||||||||
2.60%, 12/01/2022 | 500 | 472 | 3.05%, 11/30/2022 | 300 | 290 | ||||||
$ | 2,306 | 3.50%, 06/15/2024 | 515 | 500 | |||||||
Packaging & Containers- 0.02% | 3.90%, 02/15/2022 | 200 | 201 | ||||||||
WestRockRKT Co | 4.50%, 02/25/2026 | 30 | 30 | ||||||||
4.00%, 03/01/2023 | 500 | 500 | 4.75%, 11/15/2021 | 77 | 79 | ||||||
Pharmaceuticals - 1.28% | 4.80%, 07/15/2046 | 25 | 24 | ||||||||
AbbVieInc | 6.13%, 11/15/2041 | 16 | 18 | ||||||||
2.50%, 05/14/2020 | 580 | 575 | GlaxoSmithKline CapitalInc | ||||||||
2.90%, 11/06/2022 | 200 | 195 | 3.88%, 05/15/2028 | 545 | 554 | ||||||
3.20%, 11/06/2022 | 30 | 30 | 5.38%, 04/15/2034 | 500 | 572 | ||||||
3.20%, 05/14/2026 | 335 | 310 | GlaxoSmithKline Capital PLC | ||||||||
3.38%, 11/14/2021 | 350 | 350 | 2.85%, 05/08/2022 | 143 | 141 | ||||||
3.60%, 05/14/2025 | 500 | 480 | Johnson & Johnson | ||||||||
3.75%, 11/14/2023 | 350 | 348 | 2.25%, 03/03/2022 | 30 | 29 | ||||||
4.25%, 11/14/2028 | 220 | 214 | 2.45%, 03/01/2026 | 30 | 28 | ||||||
4.30%, 05/14/2036 | 170 | 152 | 2.95%, 09/01/2020 | 128 | 128 | ||||||
4.40%, 11/06/2042 | 200 | 176 | 2.95%, 03/03/2027 | 5 | 5 | ||||||
4.45%, 05/14/2046 | 280 | 245 | 3.50%, 01/15/2048 | 90 | 82 | ||||||
4.50%, 05/14/2035 | 300 | 278 | 3.63%, 03/03/2037 | 20 | 19 | ||||||
4.70%, 05/14/2045 | 330 | 300 | 3.70%, 03/01/2046 | 225 | 214 | ||||||
4.88%, 11/14/2048 | 210 | 196 | 3.75%, 03/03/2047 | 30 | 28 | ||||||
Allergan Finance LLC | 4.95%, 05/15/2033 | 201 | 226 | ||||||||
3.25%, 10/01/2022 | 180 | 176 | 5.95%, 08/15/2037 | 775 | 967 | ||||||
4.63%, 10/01/2042 | 100 | 92 | McKesson Corp | ||||||||
Allergan Funding SCS | 3.95%, 02/16/2028 | 75 | 72 | ||||||||
3.00%, 03/12/2020 | 400 | 399 | 4.75%, 03/01/2021 | 250 | 256 | ||||||
3.45%, 03/15/2022 | 30 | 30 | 4.88%, 03/15/2044 | 150 | 144 | ||||||
3.80%, 03/15/2025 | 330 | 322 | Mead Johnson Nutrition Co | ||||||||
3.85%, 06/15/2024 | 445 | 439 | 4.60%, 06/01/2044 | 250 | 257 | ||||||
4.75%, 03/15/2045 | 235 | 223 | Merck & Co Inc | ||||||||
AmerisourceBergen Corp | 2.35%, 02/10/2022 | 800 | 784 | ||||||||
3.40%, 05/15/2024 | 250 | 244 | 2.40%, 09/15/2022 | 130 | 127 | ||||||
AstraZeneca PLC | 2.75%, 02/10/2025 | 385 | 372 | ||||||||
2.38%, 06/12/2022 | 20 | 19 | 2.80%, 05/18/2023 | 230 | 227 | ||||||
3.38%, 11/16/2025 | 305 | 295 | 3.60%, 09/15/2042 | 100 | 94 | ||||||
4.00%, 09/18/2042 | 125 | 111 | 3.70%, 02/10/2045 | 10 | 10 | ||||||
4.38%, 11/16/2045 | 185 | 175 | 3.88%, 01/15/2021 | 40 | 41 |
See accompanying notes.
122
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Pharmaceuticals (continued) | Pipelines (continued) | ||||||||||
Merck & Co Inc (continued) | Enterprise Products Operating LLC | ||||||||||
4.15%, 05/18/2043 | $ | 200 | $ | 203 | 2.80%, 02/15/2021 | $ | 95 | $ | 94 | ||
Mylan NV | 3.35%, 03/15/2023 | 300 | 296 | ||||||||
3.75%, 12/15/2020 | 750 | 750 | 3.70%, 02/15/2026 | 525 | 517 | ||||||
3.95%, 06/15/2026 | 295 | 269 | 3.75%, 02/15/2025 | 500 | 495 | ||||||
5.25%, 06/15/2046 | 170 | 143 | 3.90%, 02/15/2024 | 250 | 252 | ||||||
Novartis Capital Corp | 4.25%, 02/15/2048 | 155 | 137 | ||||||||
3.00%, 11/20/2025 | 500 | 484 | 4.85%, 08/15/2042 | 300 | 289 | ||||||
3.10%, 05/17/2027 | 20 | 19 | 4.85%, 03/15/2044 | 30 | 29 | ||||||
4.40%, 04/24/2020 | 77 | 79 | 4.90%, 05/15/2046 | 400 | 387 | ||||||
4.40%, 05/06/2044 | 350 | 374 | 5.20%, 09/01/2020 | 77 | 79 | ||||||
PfizerInc | 6.13%, 10/15/2039 | 123 | 139 | ||||||||
1.95%, 06/03/2021 | 30 | 29 | 6.45%, 09/01/2040 | 177 | 208 | ||||||
2.20%, 12/15/2021 | 30 | 29 | 6.88%, 03/01/2033 | 15 | 18 | ||||||
2.75%, 06/03/2026 | 35 | 33 | EQM Midstream Partners LP | ||||||||
3.00%, 06/15/2023 | 530 | 528 | 4.75%, 07/15/2023 | 300 | 299 | ||||||
4.13%, 12/15/2046 | 525 | 527 | Kinder Morgan Energy Partners LP | ||||||||
4.20%, 09/15/2048 | 470 | 477 | 3.50%, 03/01/2021 | 750 | 748 | ||||||
4.40%, 05/15/2044 | 30 | 31 | 3.50%, 09/01/2023 | 200 | 194 | ||||||
5.60%, 09/15/2040 | 380 | 461 | 4.15%, 03/01/2022 | 300 | 302 | ||||||
7.20%, 03/15/2039 | 176 | 243 | 4.70%, 11/01/2042 | 200 | 174 | ||||||
Sanofi | 5.00%, 03/01/2043 | 100 | 91 | ||||||||
3.38%, 06/19/2023 | 400 | 403 | 5.40%, 09/01/2044 | 400 | 382 | ||||||
3.63%, 06/19/2028 | 400 | 406 | 6.38%, 03/01/2041 | 128 | 136 | ||||||
Shire Acquisitions Investments Ireland DAC | 6.50%, 09/01/2039 | 112 | 119 | ||||||||
2.40%, 09/23/2021 | 500 | 484 | 6.95%, 01/15/2038 | 112 | 125 | ||||||
2.88%, 09/23/2023 | 35 | 33 | 7.40%, 03/15/2031 | 177 | 205 | ||||||
3.20%, 09/23/2026 | 525 | 475 | Kinder MorganInc/DE | ||||||||
Wyeth LLC | 3.15%, 01/15/2023 | 500 | 486 | ||||||||
5.95%, 04/01/2037 | 91 | 109 | 4.30%, 06/01/2025 | 55 | 55 | ||||||
6.50%, 02/01/2034 | 144 | 183 | 5.05%, 02/15/2046 | 15 | 14 | ||||||
Zoetis Inc | 5.55%, 06/01/2045 | 50 | 50 | ||||||||
3.25%, 02/01/2023 | 100 | 98 | MPLX LP | ||||||||
3.45%, 11/13/2020 | 750 | 752 | 3.38%, 03/15/2023 | 60 | 58 | ||||||
3.95%, 09/12/2047 | 5 | 5 | 4.13%, 03/01/2027 | 425 | 405 | ||||||
$ | 28,209 | 4.50%, 07/15/2023 | 30 | 30 | |||||||
Pipelines - 0.98% | 4.50%, 04/15/2038 | 220 | 192 | ||||||||
AndeavorLogistics LP / Tesoro Logistics Finance | 4.70%, 04/15/2048 | 185 | 161 | ||||||||
Corp | 4.88%, 12/01/2024 | 30 | 31 | ||||||||
4.25%, 12/01/2027 | 400 | 378 | 4.88%, 06/01/2025 | 300 | 303 | ||||||
5.20%, 12/01/2047 | 400 | 360 | 4.90%, 04/15/2058 | 60 | 50 | ||||||
Boardwalk Pipelines LP | 5.20%, 03/01/2047 | 330 | 304 | ||||||||
3.38%, 02/01/2023 | 200 | 194 | 5.50%, 02/15/2049 | 170 | 165 | ||||||
Buckeye Partners LP | ONEOKInc | ||||||||||
4.88%, 02/01/2021 | 850 | 859 | 4.00%, 07/13/2027 | 300 | 286 | ||||||
Columbia Pipeline GroupInc | 4.25%, 02/01/2022 | 300 | 303 | ||||||||
5.80%, 06/01/2045 | 500 | 536 | 4.95%, 07/13/2047 | 300 | 277 | ||||||
Enable Midstream Partners LP | ONEOK Partners LP | ||||||||||
5.00%, 05/15/2044 | 500 | 411 | 5.00%, 09/15/2023 | 250 | 258 | ||||||
Enbridge Energy Partners LP | 6.13%, 02/01/2041 | 128 | 132 | ||||||||
5.20%, 03/15/2020 | 9 | 9 | Plains All American Pipeline LP / PAA Finance | ||||||||
7.38%, 10/15/2045 | 100 | 124 | Corp | ||||||||
EnbridgeInc | 2.85%, 01/31/2023 | 200 | 189 | ||||||||
4.25%, 12/01/2026 | 750 | 742 | 3.65%, 06/01/2022 | 128 | 126 | ||||||
5.50%, 12/01/2046 | 30 | 32 | 4.30%, 01/31/2043 | 200 | 158 | ||||||
Energy Transfer Operating LP | 4.50%, 12/15/2026 | 520 | 501 | ||||||||
3.60%, 02/01/2023 | 15 | 14 | 4.65%, 10/15/2025 | 15 | 15 | ||||||
4.75%, 01/15/2026 | 50 | 49 | 5.75%, 01/15/2020 | 15 | 15 | ||||||
4.90%, 02/01/2024 | 350 | 354 | Sabine Pass Liquefaction LLC | ||||||||
4.90%, 03/15/2035 | 300 | 269 | 5.00%, 03/15/2027 | 360 | 361 | ||||||
5.20%, 02/01/2022 | 102 | 105 | 5.63%, 03/01/2025 | 40 | 42 | ||||||
5.30%, 04/15/2047 | 15 | 13 | 5.75%, 05/15/2024 | 300 | 313 | ||||||
5.95%, 10/01/2043 | 350 | 333 | 5.88%, 06/30/2026 | 345 | 365 | ||||||
6.00%, 06/15/2048 | 300 | 292 | 6.25%, 03/15/2022 | 100 | 105 | ||||||
6.13%, 12/15/2045 | 525 | 513 | Southern Natural Gas Co LLC / Southern Natural | ||||||||
6.50%, 02/01/2042 | 102 | 102 | Issuing Corp | ||||||||
4.40%, 06/15/2021 | 51 | 52 |
See accompanying notes.
123
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Pipelines (continued) | REITs (continued) | ||||||||||
Spectra Energy Partners LP | AvalonBay CommunitiesInc | ||||||||||
5.95%, 09/25/2043 | $ | 200 | $ | 218 | 2.95%, 09/15/2022 | $ | 100 | $ | 98 | ||
Sunoco Logistics Partners Operations LP | 3.63%, 10/01/2020 | 100 | 101 | ||||||||
3.45%, 01/15/2023 | 200 | 193 | 4.20%, 12/15/2023 | 400 | 411 | ||||||
4.95%, 01/15/2043 | 200 | 167 | Boston Properties LP | ||||||||
5.35%, 05/15/2045 | 15 | 13 | 2.75%, 10/01/2026 | 550 | 497 | ||||||
Texas Eastern Transmission LP | 3.85%, 02/01/2023 | 200 | 200 | ||||||||
7.00%, 07/15/2032 | 100 | 121 | 4.13%, 05/15/2021 | 77 | 78 | ||||||
TransCanada PipeLines Ltd | 5.63%, 11/15/2020 | 25 | 26 | ||||||||
3.80%, 10/01/2020 | 128 | 129 | BrixmorOperating Partnership LP | ||||||||
4.25%, 05/15/2028 | 300 | 297 | 3.85%, 02/01/2025 | 300 | 290 | ||||||
4.75%, 05/15/2038 | 300 | 289 | CC Holdings GS V LLC / Crown Castle GS III | ||||||||
4.88%, 05/15/2048 | 420 | 405 | Corp | ||||||||
5.60%, 03/31/2034 | 300 | 317 | 3.85%, 04/15/2023 | 20 | 20 | ||||||
6.10%, 06/01/2040 | 25 | 28 | Crown Castle International Corp | ||||||||
7.25%, 08/15/2038 | 51 | 61 | 3.20%, 09/01/2024 | 400 | 379 | ||||||
Western Gas Partners LP | 3.70%, 06/15/2026 | 765 | 735 | ||||||||
5.50%, 08/15/2048 | 300 | 267 | 5.25%, 01/15/2023 | 30 | 31 | ||||||
Williams Cos Inc/The | Digital Realty Trust LP | ||||||||||
3.35%, 08/15/2022 | 15 | 15 | 4.45%, 07/15/2028 | 250 | 249 | ||||||
3.75%, 06/15/2027 | 400 | 379 | Duke Realty LP | ||||||||
3.90%, 01/15/2025 | 350 | 340 | 3.88%, 10/15/2022 | 100 | 101 | ||||||
4.00%, 09/15/2025 | 595 | 575 | 4.00%, 09/15/2028 | 400 | 397 | ||||||
5.10%, 09/15/2045 | 180 | 166 | ERP Operating LP | ||||||||
5.25%, 03/15/2020 | 180 | 184 | 3.50%, 03/01/2028 | 60 | 58 | ||||||
6.30%, 04/15/2040 | 343 | 365 | 4.63%, 12/15/2021 | 500 | 517 | ||||||
$ | 21,735 | 4.75%, 07/15/2020 | 51 | 52 | |||||||
Private Equity- 0.01% | Essex Portfolio LP | ||||||||||
Brookfield Asset ManagementInc | 4.50%, 03/15/2048 | 300 | 288 | ||||||||
4.00%, 01/15/2025 | 300 | 292 | Federal Realty Investment Trust | ||||||||
Regional Authority- 0.18% | 4.50%, 12/01/2044 | 250 | 248 | ||||||||
Province of Alberta Canada | GLP Capital LP / GLP Financing IIInc | ||||||||||
3.30%, 03/15/2028 | 150 | 151 | 5.38%, 04/15/2026 | 300 | 297 | ||||||
Province of British Columbia Canada | HCPInc | ||||||||||
2.65%, 09/22/2021 | 77 | 77 | 3.40%, 02/01/2025 | 300 | 284 | ||||||
6.50%, 01/15/2026 | 18 | 22 | 4.20%, 03/01/2024 | 250 | 251 | ||||||
Province of Manitoba Canada | 6.75%, 02/01/2041 | 550 | 677 | ||||||||
3.05%, 05/14/2024 | 500 | 502 | Highwoods Realty LP | ||||||||
Province of Ontario Canada | 3.20%, 06/15/2021 | 350 | 346 | ||||||||
2.40%, 02/08/2022 | 500 | 493 | Hospitality Properties Trust | ||||||||
2.50%, 09/10/2021 | 500 | 496 | 5.00%, 08/15/2022 | 100 | 102 | ||||||
3.20%, 05/16/2024 | 750 | 760 | Host Hotels & Resorts LP | ||||||||
3.40%, 10/17/2023 | 305 | 311 | 6.00%, 10/01/2021 | 200 | 210 | ||||||
4.40%, 04/14/2020 | 151 | 154 | Kimco Realty Corp | ||||||||
Province of Quebec Canada | 3.13%, 06/01/2023 | 200 | 193 | ||||||||
2.75%, 08/25/2021 | 231 | 231 | 3.20%, 05/01/2021 | 250 | 249 | ||||||
3.50%, 07/29/2020 | 750 | 760 | 4.13%, 12/01/2046 | 300 | 259 | ||||||
7.50%, 09/15/2029 | 64 | 89 | 4.45%, 09/01/2047 | 300 | 272 | ||||||
Province of Saskatchewan Canada | Liberty Property LP | ||||||||||
8.50%, 07/15/2022 | 6 | 7 | 3.38%, 06/15/2023 | 300 | 296 | ||||||
$ | 4,053 | Mid-America Apartments LP | |||||||||
REITs - 0.80% | 4.00%, 11/15/2025 | 500 | 498 | ||||||||
Alexandria Real Estate Equities Inc | National Retail Properties Inc | ||||||||||
2.75%, 01/15/2020 | 750 | 744 | 4.30%, 10/15/2028 | 400 | 402 | ||||||
4.00%, 01/15/2024 | 250 | 253 | 4.80%, 10/15/2048 | 400 | 388 | ||||||
American Campus Communities Operating | Office Properties Income Trust | ||||||||||
Partnership LP | 4.00%, 07/15/2022 | 400 | 394 | ||||||||
3.63%, 11/15/2027 | 300 | 282 | Omega Healthcare InvestorsInc | ||||||||
American Homes 4 Rent LP | 4.50%, 01/15/2025 | 300 | 295 | ||||||||
4.25%, 02/15/2028 | 60 | 58 | 4.95%, 04/01/2024 | 750 | 761 | ||||||
American Tower Corp | Prologis LP | ||||||||||
3.38%, 10/15/2026 | 500 | 465 | 3.88%, 09/15/2028 | 250 | 255 | ||||||
3.50%, 01/31/2023 | 530 | 521 | Realty Income Corp | ||||||||
3.55%, 07/15/2027 | 20 | 19 | 4.65%, 08/01/2023 | 250 | 260 | ||||||
4.70%, 03/15/2022 | 278 | 286 | Senior Housing Properties Trust | ||||||||
4.75%, 02/15/2028 | 60 | 57 | |||||||||
See accompanying notes. | 124 |
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
REITs (continued) | Retail (continued) | ||||||||||
Simon Property Group LP | McDonald's Corp | ||||||||||
3.25%, 11/30/2026 | $ | 500 | $ | 477 | 2.75%, 12/09/2020 | $ | 20 | $ | 20 | ||
3.38%, 10/01/2024 | 300 | 293 | 3.38%, 05/26/2025 | 500 | 489 | ||||||
3.75%, 02/01/2024 | 500 | 501 | 3.50%, 07/15/2020 | 151 | 153 | ||||||
4.13%, 12/01/2021 | 200 | 205 | 3.70%, 02/15/2042 | 128 | 111 | ||||||
4.25%, 11/30/2046 | 130 | 125 | 4.70%, 12/09/2035 | 25 | 25 | ||||||
6.75%, 02/01/2040 | 25 | 32 | 4.88%, 07/15/2040 | 9 | 9 | ||||||
SITE Centers Corp | 4.88%, 12/09/2045 | 250 | 252 | ||||||||
4.63%, 07/15/2022 | 63 | 65 | 6.30%, 10/15/2037 | 262 | 306 | ||||||
SL Green Operating Partnership LP | Nordstrom Inc | ||||||||||
3.25%, 10/15/2022 | 300 | 290 | 4.75%, 05/01/2020 | 36 | 37 | ||||||
UDRInc | O'Reilly AutomotiveInc | ||||||||||
4.00%, 10/01/2025 | 200 | 199 | 3.85%, 06/15/2023 | 300 | 301 | ||||||
Ventas Realty LP | 4.35%, 06/01/2028 | 300 | 299 | ||||||||
4.00%, 03/01/2028 | 80 | 78 | QVCInc | ||||||||
5.70%, 09/30/2043 | 300 | 326 | 4.38%, 03/15/2023 | 250 | 240 | ||||||
Ventas Realty LP / Ventas Capital Corp | Starbucks Corp | ||||||||||
4.25%, 03/01/2022 | 128 | 130 | 3.80%, 08/15/2025 | 200 | 198 | ||||||
Weingarten Realty Investors | 3.85%, 10/01/2023 | 530 | 538 | ||||||||
3.38%, 10/15/2022 | 180 | 177 | 4.50%, 11/15/2048 | 200 | 186 | ||||||
Welltower Inc | Target Corp | ||||||||||
3.75%, 03/15/2023 | 200 | 200 | 2.50%, 04/15/2026 | 500 | 467 | ||||||
6.13%, 04/15/2020 | 115 | 119 | 2.90%, 01/15/2022 | 25 | 25 | ||||||
Weyerhaeuser Co | 3.50%, 07/01/2024 | 30 | 30 | ||||||||
4.70%, 03/15/2021 | 51 | 52 | 3.63%, 04/15/2046 | 35 | 31 | ||||||
7.38%, 03/15/2032 | 300 | 367 | TJX CosInc/The | ||||||||
$ | 17,786 | 2.50%, 05/15/2023 | 500 | 485 | |||||||
Retail - 0.71% | Walgreens Boots AllianceInc | ||||||||||
AutoZone Inc | 3.45%, 06/01/2026 | 420 | 395 | ||||||||
3.75%, 06/01/2027 | 250 | 240 | 3.80%, 11/18/2024 | 300 | 295 | ||||||
4.00%, 11/15/2020 | 251 | 253 | 4.80%, 11/18/2044 | 355 | 323 | ||||||
Costco Wholesale Corp | Walmart Inc | ||||||||||
2.15%, 05/18/2021 | 35 | 34 | 2.35%, 12/15/2022 | 500 | 487 | ||||||
2.30%, 05/18/2022 | 310 | 303 | 2.65%, 12/15/2024 | 500 | 486 | ||||||
2.75%, 05/18/2024 | 50 | 49 | 3.25%, 10/25/2020 | 71 | 72 | ||||||
3.00%, 05/18/2027 | 150 | 145 | 3.40%, 06/26/2023 | 530 | 535 | ||||||
Dollar General Corp | 3.63%, 07/08/2020 | 81 | 82 | ||||||||
4.15%, 11/01/2025 | 500 | 499 | 3.63%, 12/15/2047 | 120 | 110 | ||||||
Dollar Tree Inc | 3.70%, 06/26/2028 | 390 | 396 | ||||||||
4.20%, 05/15/2028 | 185 | 175 | 3.95%, 06/28/2038 | 185 | 183 | ||||||
Home DepotInc/The | 4.05%, 06/29/2048 | 365 | 363 | ||||||||
2.13%, 09/15/2026 | 250 | 225 | 5.63%, 04/01/2040 | 38 | 46 | ||||||
2.63%, 06/01/2022 | 30 | 30 | 5.63%, 04/15/2041 | 280 | 338 | ||||||
2.70%, 04/01/2023 | 30 | 30 | 7.55%, 02/15/2030 | 628 | 851 | ||||||
3.50%, 09/15/2056 | 305 | 256 | $ | 15,706 | |||||||
3.75%, 02/15/2024 | 380 | 389 | Semiconductors - 0.42% | ||||||||
3.90%, 06/15/2047 | 30 | 28 | Analog DevicesInc | ||||||||
4.20%, 04/01/2043 | 20 | 20 | 2.50%, 12/05/2021 | 750 | 732 | ||||||
4.25%, 04/01/2046 | 15 | 15 | 2.95%, 01/12/2021 | 300 | 297 | ||||||
4.40%, 03/15/2045 | 20 | 20 | Applied Materials Inc | ||||||||
5.88%, 12/16/2036 | 987 | 1,186 | 3.30%, 04/01/2027 | 35 | 34 | ||||||
5.95%, 04/01/2041 | 351 | 431 | 3.90%, 10/01/2025 | 500 | 503 | ||||||
Kohl's Corp | 4.35%, 04/01/2047 | 40 | 39 | ||||||||
5.55%, 07/17/2045 | 250 | 234 | 5.10%, 10/01/2035 | 250 | 266 | ||||||
Lowe's CosInc | Broadcom Corp / Broadcom Cayman Finance Ltd | ||||||||||
3.10%, 05/03/2027 | 530 | 484 | 3.00%, 01/15/2022 | 550 | 529 | ||||||
3.12%, 04/15/2022 | 30 | 29 | 3.63%, 01/15/2024 | 75 | 71 | ||||||
3.70%, 04/15/2046 | 40 | 33 | 3.88%, 01/15/2027 | 660 | 592 | ||||||
3.80%, 11/15/2021 | 102 | 103 | Intel Corp | ||||||||
4.05%, 05/03/2047 | 30 | 26 | 2.35%, 05/11/2022 | 5 | 5 | ||||||
4.38%, 09/15/2045 | 500 | 449 | 2.45%, 07/29/2020 | 500 | 498 | ||||||
4.63%, 04/15/2020 | 77 | 78 | 2.60%, 05/19/2026 | 530 | 496 | ||||||
Macy's Retail HoldingsInc | 2.70%, 12/15/2022 | 25 | 25 | ||||||||
2.88%, 02/15/2023 | 305 | 282 | 3.15%, 05/11/2027 | 540 | 524 | ||||||
3.45%, 01/15/2021 | 500 | 496 | 3.30%, 10/01/2021 | 207 | 209 | ||||||
3.73%, 12/08/2047 | 240 | 222 | |||||||||
4.00%, 12/15/2032 | 200 | 205 | |||||||||
4.25%, 12/15/2042 | 200 | 196 |
See accompanying notes.
125
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Semiconductors (continued) | Software (continued) | ||||||||||
Intel Corp (continued) | Oracle Corp (continued) | ||||||||||
4.80%, 10/01/2041 | $ | 77 | $ | 84 | 4.00%, 07/15/2046 | $ | 780 | $ | 728 | ||
4.90%, 07/29/2045 | 25 | 27 | 4.30%, 07/08/2034 | 1,015 | 1,019 | ||||||
KLA-Tencor Corp | 4.38%, 05/15/2055 | 610 | 598 | ||||||||
4.65%, 11/01/2024 | 500 | 512 | $ | 14,363 | |||||||
Lam Research Corp | Sovereign - 1.35% | ||||||||||
2.75%, 03/15/2020 | 300 | 297 | Chile Government International Bond | ||||||||
Marvell Technology Group Ltd | 3.13%, 03/27/2025 | 250 | 243 | ||||||||
4.88%, 06/22/2028 | 300 | 292 | 3.25%, 09/14/2021 | 180 | 180 | ||||||
NVIDIA Corp | 3.88%, 08/05/2020 | 500 | 506 | ||||||||
2.20%, 09/16/2021 | 500 | 489 | Colombia Government International Bond | ||||||||
QUALCOMMInc | 2.63%, 03/15/2023 | 500 | 470 | ||||||||
2.25%, 05/20/2020 | 370 | 365 | 4.38%, 07/12/2021 | 100 | 102 | ||||||
2.60%, 01/30/2023 | 360 | 346 | 4.50%, 01/28/2026 | 200 | 200 | ||||||
2.90%, 05/20/2024 | 20 | 19 | 5.63%, 02/26/2044 | 1,000 | 1,031 | ||||||
3.00%, 05/20/2022 | 30 | 29 | 6.13%, 01/18/2041 | 200 | 216 | ||||||
3.25%, 05/20/2027 | 320 | 298 | 8.13%, 05/21/2024 | 201 | 234 | ||||||
3.45%, 05/20/2025 | 300 | 289 | 11.75%, 02/25/2020 | 180 | 197 | ||||||
4.65%, 05/20/2035 | 115 | 111 | 10.38%, 01/28/2033 | 100 | 149 | ||||||
4.80%, 05/20/2045 | 175 | 167 | Export Development Canada | ||||||||
Texas Instruments Inc | 1.63%, 01/17/2020 | 400 | 396 | ||||||||
2.75%, 03/12/2021 | 400 | 398 | Export-Import Bank of Korea | ||||||||
4.15%, 05/15/2048 | 205 | 205 | 2.25%, 01/21/2020 | 300 | 297 | ||||||
$ | 9,371 | 3.00%, 11/01/2022 | 500 | 493 | |||||||
Software - 0.65% | 3.25%, 11/10/2025 | 500 | 485 | ||||||||
AdobeInc | 3.25%, 08/12/2026 | 500 | 483 | ||||||||
4.75%, 02/01/2020 | 51 | 52 | 5.00%, 04/11/2022 | 200 | 210 | ||||||
CA Inc | Hungary Government International Bond | ||||||||||
3.60%, 08/15/2022 | 300 | 293 | 7.63%, 03/29/2041 | 500 | 700 | ||||||
Fidelity National Information ServicesInc | Indonesia Government International Bond | ||||||||||
3.00%, 08/15/2026 | 40 | 37 | 3.50%, 01/11/2028 | 200 | 185 | ||||||
3.50%, 04/15/2023 | 30 | 30 | Israel Government AID Bond | ||||||||
3.63%, 10/15/2020 | 340 | 342 | 5.50%, 09/18/2023 | 25 | 28 | ||||||
4.75%, 05/15/2048 | 300 | 279 | 5.50%, 04/26/2024 | 125 | 142 | ||||||
5.00%, 10/15/2025 | 242 | 252 | 5.50%, 09/18/2033 | 12 | 15 | ||||||
Fiserv Inc | Israel Government International Bond | ||||||||||
3.50%, 10/01/2022 | 600 | 596 | 3.25%, 01/17/2028 | 300 | 294 | ||||||
3.80%, 10/01/2023 | 400 | 402 | 4.00%, 06/30/2022 | 500 | 511 | ||||||
Microsoft Corp | 4.13%, 01/17/2048 | 300 | 293 | ||||||||
1.55%, 08/08/2021 | 670 | 651 | Japan Bank for International Cooperation | ||||||||
2.00%, 11/03/2020 | 210 | 208 | 2.13%, 06/01/2020 | 500 | 495 | ||||||
2.38%, 02/12/2022 | 380 | 375 | 2.38%, 04/20/2026 | 300 | 287 | ||||||
2.38%, 05/01/2023 | 25 | 24 | 2.50%, 06/01/2022 | 500 | 493 | ||||||
2.40%, 02/06/2022 | 690 | 682 | 3.00%, 05/29/2024 | 1,000 | 1,003 | ||||||
2.40%, 08/08/2026 | 55 | 51 | 3.38%, 07/31/2023 | 1,000 | 1,018 | ||||||
2.65%, 11/03/2022 | 55 | 54 | Korea International Bond | ||||||||
2.70%, 02/12/2025 | 30 | 29 | 3.88%, 09/11/2023 | 250 | 257 | ||||||
2.88%, 02/06/2024 | 40 | 40 | Mexico Government International Bond | ||||||||
3.00%, 10/01/2020 | 600 | 604 | 3.50%, 01/21/2021 | 1,000 | 995 | ||||||
3.13%, 11/03/2025 | 700 | 692 | 3.60%, 01/30/2025 | 210 | 200 | ||||||
3.30%, 02/06/2027 | 920 | 911 | 3.63%, 03/15/2022 | 300 | 297 | ||||||
3.45%, 08/08/2036 | 750 | 706 | 3.75%, 01/11/2028 | 500 | 468 | ||||||
3.63%, 12/15/2023 | 30 | 31 | 4.60%, 01/23/2046 | 670 | 593 | ||||||
3.70%, 08/08/2046 | 45 | 43 | 4.60%, 02/10/2048 | 700 | 621 | ||||||
4.00%, 02/12/2055 | 850 | 835 | 4.75%, 03/08/2044 | 506 | 460 | ||||||
4.10%, 02/06/2037 | 180 | 185 | 5.55%, 01/21/2045 | 300 | 303 | ||||||
4.20%, 11/03/2035 | 430 | 446 | 6.05%, 01/11/2040 | 464 | 491 | ||||||
4.25%, 02/06/2047 | 50 | 52 | 8.30%, 08/15/2031 | 738 | 953 | ||||||
4.50%, 02/06/2057 | 625 | 666 | Panama Government International Bond | ||||||||
5.30%, 02/08/2041 | 77 | 92 | 3.88%, 03/17/2028 | 500 | 493 | ||||||
Oracle Corp | 4.50%, 04/16/2050 | 200 | 192 | ||||||||
2.40%, 09/15/2023 | 30 | 29 | 6.70%, 01/26/2036 | 224 | 273 | ||||||
2.50%, 05/15/2022 | 30 | 29 | 8.88%, 09/30/2027 | 77 | 102 | ||||||
2.50%, 10/15/2022 | 1,570 | 1,528 | Peruvian Government International Bond | ||||||||
2.63%, 02/15/2023 | 390 | 380 | 5.63%, 11/18/2050 | 528 | 620 | ||||||
2.80%, 07/08/2021 | 80 | 80 | 6.55%, 03/14/2037 | 126 | 159 | ||||||
3.80%, 11/15/2037 | 250 | 234 | 7.35%, 07/21/2025 | 180 | 219 | ||||||
3.88%, 07/15/2020 | 77 | 78 | 8.75%, 11/21/2033 | 192 | 283 |
See accompanying notes.
126
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Sovereign (continued) | Supranational Bank (continued) | ||||||||||
Philippine Government International Bond | European Investment Bank (continued) | ||||||||||
3.00%, 02/01/2028 | $ | 300 | $ | 284 | 2.50%, 04/15/2021 | $ | 1,500 | $ | 1,497 | ||
3.70%, 02/02/2042 | 230 | 218 | 2.50%, 03/15/2023 | 600 | 596 | ||||||
3.95%, 01/20/2040 | 300 | 293 | 3.25%, 01/29/2024 | 1,000 | 1,025 | ||||||
5.00%, 01/13/2037 | 300 | 333 | 4.88%, 02/15/2036 | 25 | 31 | ||||||
6.38%, 10/23/2034 | 210 | 263 | FMS Wertmanagement | ||||||||
6.50%, 01/20/2020 | 200 | 207 | 1.75%, 01/24/2020 | 500 | 496 | ||||||
9.50%, 02/02/2030 | 400 | 588 | 1.75%, 03/17/2020 | 300 | 297 | ||||||
10.63%, 03/16/2025 | 400 | 553 | Inter-American Development Bank | ||||||||
Republic of Italy Government International Bond | 1.63%, 05/12/2020 | 800 | 790 | ||||||||
5.38%, 06/15/2033 | 64 | 67 | 1.75%, 04/14/2022 | 1,000 | 973 | ||||||
6.88%, 09/27/2023 | 712 | 774 | 1.88%, 03/15/2021 | 500 | 493 | ||||||
Republic of Poland Government International | 2.13%, 11/09/2020 | 250 | 248 | ||||||||
Bond | 2.13%, 01/18/2022 | 340 | 335 | ||||||||
4.00%, 01/22/2024 | 1,000 | 1,023 | 2.50%, 01/18/2023 | 450 | 447 | ||||||
5.00%, 03/23/2022 | 528 | 555 | 3.00%, 02/21/2024 | 250 | 254 | ||||||
5.13%, 04/21/2021 | 51 | 53 | 3.88%, 02/14/2020 | 477 | 483 | ||||||
SvenskExportkredit AB | International Bank for Reconstruction & | ||||||||||
2.88%, 05/22/2021 | 400 | 402 | Development | ||||||||
Tennessee Valley Authority | 1.38%, 05/24/2021 | 345 | 335 | ||||||||
2.88%, 02/01/2027 | 250 | 247 | 1.38%, 09/20/2021 | 500 | 484 | ||||||
3.50%, 12/15/2042 | 400 | 393 | 1.63%, 02/10/2022 | 1,000 | 969 | ||||||
3.88%, 02/15/2021 | 500 | 513 | 2.13%, 11/01/2020 | 750 | 744 | ||||||
4.25%, 09/15/2065 | 200 | 228 | 2.25%, 06/24/2021 | 500 | 496 | ||||||
5.25%, 09/15/2039 | 251 | 314 | 2.50%, 11/25/2024 | 500 | 495 | ||||||
5.38%, 04/01/2056 | 154 | 210 | 2.50%, 07/29/2025 | 1,700 | 1,673 | ||||||
6.75%, 11/01/2025 | 102 | 125 | 2.50%, 11/22/2027 | 1,500 | 1,461 | ||||||
Uruguay Government International Bond | 7.63%, 01/19/2023 | 12 | 14 | ||||||||
4.13%, 11/20/2045 | 100 | 89 | International Finance Corp | ||||||||
4.38%, 10/27/2027 | 940 | 940 | 1.13%, 07/20/2021 | 1,500 | 1,446 | ||||||
4.98%, 04/20/2055 | 210 | 200 | 2.25%, 01/25/2021 | 500 | 497 | ||||||
5.10%, 06/18/2050 | 500 | 491 | Nordic Investment Bank | ||||||||
8.00%, 11/18/2022 | 1,015 | 1,143 | 2.25%, 02/01/2021 | 500 | 496 | ||||||
$ | 29,841 | $ | 32,241 | ||||||||
Supranational Bank - 1.46% | Telecommunications - 1.22% | ||||||||||
African Development Bank | America MovilSAB de CV | ||||||||||
1.88%, 03/16/2020 | 500 | 495 | 3.13%, 07/16/2022 | 600 | 588 | ||||||
2.38%, 09/23/2021 | 400 | 397 | 6.13%, 03/30/2040 | 102 | 120 | ||||||
Asian Development Bank | 6.38%, 03/01/2035 | 200 | 235 | ||||||||
1.50%, 01/22/2020 | 300 | 297 | AT&T Inc | ||||||||
1.75%, 01/10/2020 | 1,400 | 1,388 | 2.45%, 06/30/2020 | 600 | 592 | ||||||
1.75%, 06/08/2021 | 500 | 490 | 2.63%, 12/01/2022 | 630 | 605 | ||||||
1.75%, 09/13/2022 | 465 | 450 | 3.00%, 06/30/2022 | 200 | 195 | ||||||
1.75%, 08/14/2026 | 500 | 465 | 3.40%, 05/15/2025 | 200 | 188 | ||||||
1.88%, 02/18/2022 | 1,250 | 1,223 | 3.80%, 03/01/2024 | 25 | 25 | ||||||
2.13%, 11/24/2021 | 750 | 740 | 4.10%, 02/15/2028 | 81 | 78 | ||||||
2.13%, 03/19/2025 | 300 | 289 | 4.13%, 02/17/2026 | 30 | 29 | ||||||
2.25%, 01/20/2021 | 500 | 497 | 4.25%, 03/01/2027 | 530 | 519 | ||||||
2.75%, 03/17/2023 | 400 | 401 | 4.30%, 02/15/2030 | 1,101 | 1,040 | ||||||
2.75%, 01/19/2028 | 300 | 296 | 4.30%, 12/15/2042 | 221 | 188 | ||||||
5.82%, 06/16/2028 | 15 | 18 | 4.35%, 06/15/2045 | 1,005 | 849 | ||||||
6.38%, 10/01/2028 | 51 | 64 | 4.50%, 05/15/2035 | 1,225 | 1,100 | ||||||
Corp Andina de Fomento | 4.50%, 03/09/2048 | 572 | 489 | ||||||||
2.20%, 07/18/2020 | 1,000 | 984 | 4.55%, 03/09/2049 | 247 | 213 | ||||||
4.38%, 06/15/2022 | 22 | 23 | 4.60%, 02/15/2021 | 171 | 175 | ||||||
Council Of Europe Development Bank | 4.75%, 05/15/2046 | 230 | 204 | ||||||||
1.63%, 03/10/2020 | 300 | 297 | 5.15%, 03/15/2042 | 30 | 28 | ||||||
European Bank for Reconstruction & | 5.15%, 11/15/2046 | 20 | 19 | ||||||||
Development | 5.35%, 09/01/2040 | 30 | 29 | ||||||||
1.13%, 08/24/2020 | 500 | 488 | 5.45%, 03/01/2047 | 30 | 29 | ||||||
1.88%, 02/23/2022 | 250 | 244 | 5.65%, 02/15/2047 | 15 | 15 | ||||||
European Investment Bank | 5.70%, 03/01/2057 | 530 | 521 | ||||||||
1.38%, 09/15/2021 | 1,350 | 1,307 | 6.00%, 08/15/2040 | 663 | 670 | ||||||
1.63%, 03/16/2020 | 900 | 890 | British Telecommunications PLC | ||||||||
2.00%, 03/15/2021 | 1,775 | 1,753 | 9.62%, 12/15/2030 | 77 | 104 | ||||||
2.25%, 03/15/2022 | 400 | 395 | |||||||||
2.25%, 08/15/2022 | 1,000 | 987 | |||||||||
2.38%, 05/24/2027 | 300 | 288 |
See accompanying notes.
127
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Telecommunications (continued) | Transportation (continued) | ||||||||||
Cisco SystemsInc | Burlington Northern Santa Fe LLC (continued) | ||||||||||
1.85%, 09/20/2021 | $ | 350 | $ | 340 | 4.55%, 09/01/2044 | $ | 15 | $ | 16 | ||
2.20%, 02/28/2021 | 565 | 557 | 5.15%, 09/01/2043 | 350 | 392 | ||||||
2.20%, 09/20/2023 | 30 | 29 | 6.20%, 08/15/2036 | 500 | 609 | ||||||
2.50%, 09/20/2026 | 30 | 28 | Canadian National Railway Co | ||||||||
2.95%, 02/28/2026 | 500 | 477 | 3.20%, 08/02/2046 | 400 | 343 | ||||||
3.63%, 03/04/2024 | 30 | 31 | 3.65%, 02/03/2048 | 75 | 69 | ||||||
4.45%, 01/15/2020 | 102 | 104 | Canadian Pacific Railway Co | ||||||||
5.90%, 02/15/2039 | 680 | 837 | 4.00%, 06/01/2028 | 300 | 305 | ||||||
Deutsche Telekom International Finance BV | 4.45%, 03/15/2023 | 128 | 133 | ||||||||
8.75%, 06/15/2030 | 641 | 836 | 4.80%, 09/15/2035 | 500 | 519 | ||||||
Juniper NetworksInc | CSX Corp | ||||||||||
4.60%, 03/15/2021 | 500 | 511 | 2.60%, 11/01/2026 | 300 | 273 | ||||||
Motorola SolutionsInc | 3.25%, 06/01/2027 | 40 | 38 | ||||||||
4.00%, 09/01/2024 | 500 | 487 | 3.35%, 11/01/2025 | 500 | 486 | ||||||
Orange SA | 3.70%, 11/01/2023 | 500 | 507 | ||||||||
4.13%, 09/14/2021 | 128 | 131 | 3.80%, 03/01/2028 | 100 | 98 | ||||||
5.38%, 01/13/2042 | 102 | 107 | 3.80%, 11/01/2046 | 30 | 26 | ||||||
Rogers CommunicationsInc | 4.25%, 11/01/2066 | 400 | 346 | ||||||||
3.00%, 03/15/2023 | 400 | 393 | 4.30%, 03/01/2048 | 105 | 100 | ||||||
4.30%, 02/15/2048 | 95 | 90 | 4.75%, 05/30/2042 | 277 | 276 | ||||||
5.00%, 03/15/2044 | 500 | 520 | FedEx Corp | ||||||||
Telefonica EmisionesSA | 2.63%, 08/01/2022 | 100 | 98 | ||||||||
5.13%, 04/27/2020 | 918 | 937 | 3.25%, 04/01/2026 | 400 | 380 | ||||||
5.21%, 03/08/2047 | 530 | 485 | 3.88%, 08/01/2042 | 100 | 83 | ||||||
7.05%, 06/20/2036 | 295 | 336 | 4.40%, 01/15/2047 | 55 | 49 | ||||||
TELUS Corp | 4.55%, 04/01/2046 | 400 | 364 | ||||||||
4.60%, 11/16/2048 | 300 | 297 | 4.75%, 11/15/2045 | 525 | 495 | ||||||
Verizon CommunicationsInc | Kansas City Southern | ||||||||||
1.75%, 08/15/2021 | 1,000 | 966 | 4.70%, 05/01/2048 | 300 | 293 | ||||||
2.45%, 11/01/2022 | 130 | 126 | Norfolk Southern Corp | ||||||||
2.63%, 08/15/2026 | 25 | 23 | 3.25%, 12/01/2021 | 251 | 252 | ||||||
2.95%, 03/15/2022 | 746 | 738 | 3.85%, 01/15/2024 | 200 | 202 | ||||||
3.00%, 11/01/2021 | 60 | 60 | 3.94%, 11/01/2047 | 398 | 361 | ||||||
3.13%, 03/16/2022 | 260 | 258 | 4.84%, 10/01/2041 | 100 | 104 | ||||||
3.38%, 02/15/2025 | 40 | 39 | Union Pacific Corp | ||||||||
3.50%, 11/01/2021 | 30 | 30 | 3.80%, 10/01/2051 | 577 | 489 | ||||||
3.85%, 11/01/2042 | 25 | 22 | 3.95%, 09/10/2028 | 210 | 210 | ||||||
4.13%, 03/16/2027 | 500 | 500 | 4.15%, 01/15/2045 | 350 | 328 | ||||||
4.27%, 01/15/2036 | 1,000 | 934 | 4.16%, 07/15/2022 | 256 | 262 | ||||||
4.33%, 09/21/2028 | 500 | 502 | 4.80%, 09/10/2058 | 225 | 224 | ||||||
4.40%, 11/01/2034 | 750 | 723 | United Parcel ServiceInc | ||||||||
4.50%, 08/10/2033 | 360 | 355 | 2.45%, 10/01/2022 | 10 | 10 | ||||||
4.60%, 04/01/2021 | 77 | 79 | 3.05%, 11/15/2027 | 500 | 476 | ||||||
4.81%, 03/15/2039 | 25 | 24 | 3.13%, 01/15/2021 | 1,128 | 1,137 | ||||||
4.86%, 08/21/2046 | 2,140 | 2,103 | 3.75%, 11/15/2047 | 140 | 126 | ||||||
5.01%, 04/15/2049 | 540 | 538 | 4.88%, 11/15/2040 | 25 | 27 | ||||||
5.01%, 08/21/2054 | 50 | 48 | 6.20%, 01/15/2038 | 23 | 28 | ||||||
5.15%, 09/15/2023 | 615 | 655 | $ | 11,552 | |||||||
5.50%, 03/16/2047 | 25 | 27 | Water - 0.01% | ||||||||
Vodafone Group PLC | American Water Capital Corp | ||||||||||
2.95%, 02/19/2023 | 200 | 193 | 3.75%, 09/01/2047 | 180 | 162 | ||||||
4.38%, 05/30/2028 | 560 | 543 | 6.59%, 10/15/2037 | 5 | 6 | ||||||
5.00%, 05/30/2038 | 420 | 394 | $ | 168 | |||||||
6.15%, 02/27/2037 | 201 | 211 | TOTAL BONDS | $ | 728,781 | ||||||
6.25%, 11/30/2032 | 500 | 552 | Principal | ||||||||
$ | 27,023 | MUNICIPAL BONDS - 0.84% | Amount (000's) Value (000's) | ||||||||
Toys, Games & Hobbies- 0.01% | California - 0.24% | ||||||||||
HasbroInc | Bay Area Toll Authority | ||||||||||
3.15%, 05/15/2021 | 250 | 246 | 6.26%, 04/01/2049 | $ | 300 | $ | 408 | ||||
6.35%, 03/15/2040 | 25 | 26 | 6.92%, 04/01/2040 | 120 | 160 | ||||||
$ | 272 | East Bay Municipal Utility District Water System | |||||||||
Transportation - 0.52% | Revenue | ||||||||||
Burlington Northern Santa Fe LLC | 5.87%, 06/01/2040 | 60 | 77 | ||||||||
3.00%, 04/01/2025 | 500 | 484 | Los Angeles Department of Water & PowerPower | ||||||||
4.13%, 06/15/2047 | 30 | 29 | System Revenue | ||||||||
4.15%, 04/01/2045 | 500 | 485 | 6.57%, 07/01/2045 | 150 | 208 | ||||||
4.45%, 03/15/2043 | 20 | 20 | |||||||||
See accompanying notes. | 128 |
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
MUNICIPAL BONDS (continued) | Amount (000’s) Value (000’s) | MUNICIPAL BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
California (continued) | New Jersey (continued) | ||||||||||
Los Angeles Unified School District/CA | New Jersey Transportation Trust Fund Authority | ||||||||||
5.75%, 07/01/2034 | $ | 80 | $ | 95 | 5.75%, 12/15/2028 | $ | 190 | $ | 206 | ||
5.76%, 07/01/2029 | 50 | 58 | 6.56%, 12/15/2040 | 210 | 257 | ||||||
6.76%, 07/01/2034 | 530 | 682 | New Jersey Turnpike Authority | ||||||||
Regents of the University of California Medical | 7.10%, 01/01/2041 | 147 | 201 | ||||||||
Center Pooled Revenue | Rutgers The State University of New | ||||||||||
6.55%, 05/15/2048 | 250 | 330 | Jersey (credit support fromGO OF UNIV) | ||||||||
San Diego County Water Authority Financing | 5.67%, 05/01/2040(i) | 130 | 153 | ||||||||
Corp | $ | 2,072 | |||||||||
6.14%, 05/01/2049 | 460 | 603 | New York - 0.10% | ||||||||
Santa Clara Valley Transportation Authority | City of New York NY | ||||||||||
5.88%, 04/01/2032 | 25 | 29 | 5.52%, 10/01/2037 | 25 | 29 | ||||||
State of California | Metropolitan Transportation Authority | ||||||||||
3.50%, 04/01/2028 | 165 | 165 | 6.81%, 11/15/2040 | 135 | 179 | ||||||
7.30%, 10/01/2039 | 375 | 515 | New York City Transitional Finance Authority | ||||||||
7.35%, 11/01/2039 | 500 | 690 | Future Tax Secured Revenue | ||||||||
7.60%, 11/01/2040 | 180 | 262 | 5.51%, 08/01/2037 | 250 | 294 | ||||||
7.63%, 03/01/2040 | 280 | 399 | New York City Water & Sewer System | ||||||||
7.95%, 03/01/2036 | 500 | 528 | 5.72%, 06/15/2042 | 270 | 338 | ||||||
University of California | 5.95%, 06/15/2042 | 125 | 162 | ||||||||
5.77%, 05/15/2043 | 200 | 241 | New York State Dormitory Authority | ||||||||
$ | 5,450 | 5.60%, 03/15/2040 | 435 | 527 | |||||||
Connecticut - 0.05% | Port Authority of New York & New Jersey | ||||||||||
State of Connecticut | 4.46%, 10/01/2062 | 100 | 102 | ||||||||
5.85%, 03/15/2032 | 1,025 | 1,173 | 4.96%, 08/01/2046 | 300 | 344 | ||||||
District of Columbia - 0.02% | Port Authority of New York & New Jersey (credit | ||||||||||
District of Columbia Water & Sewer Authority | support fromGO OF AUTH) | ||||||||||
4.81%, 10/01/2114 | 450 | 498 | 6.04%, 12/01/2029(i) | 50 | 61 | ||||||
Florida - 0.06% | $ | 2,036 | |||||||||
State Board of Administration Finance Corp | Ohio - 0.01% | ||||||||||
3.00%, 07/01/2020 | 1,305 | 1,307 | American Municipal Power Inc | ||||||||
Georgia- 0.02% | 6.27%, 02/15/2050 | 69 | 86 | ||||||||
Municipal Electric Authority of Georgia | Ohio State University/The | ||||||||||
6.64%, 04/01/2057 | 151 | 160 | 4.91%, 06/01/2040 | 125 | 145 | ||||||
7.06%, 04/01/2057 | 200 | 225 | $ | 231 | |||||||
$ | 385 | Pennsylvania- 0.03% | |||||||||
Illinois - 0.06% | State Public School Building Authority | ||||||||||
Chicago Transit Authority | 5.00%, 09/15/2027 | 500 | 548 | ||||||||
6.20%, 12/01/2040 | 70 | 85 | Texas - 0.10% | ||||||||
6.90%, 12/01/2040 | 200 | 255 | City of San Antonio TX Electric & Gas Systems | ||||||||
City of Chicago IL | Revenue | ||||||||||
6.31%, 01/01/2044 | 250 | 246 | 5.81%, 02/01/2041 | 135 | 171 | ||||||
County of Cook IL | Dallas Area Rapid Transit | ||||||||||
6.23%, 11/15/2034 | 102 | 123 | 5.02%, 12/01/2048 | 50 | 58 | ||||||
State of Illinois | Dallas Convention Center Hotel Development | ||||||||||
4.95%, 06/01/2023 | 30 | 30 | Corp | ||||||||
5.10%, 06/01/2033 | 735 | 701 | 7.09%, 01/01/2042 | 70 | 90 | ||||||
7.35%, 07/01/2035 | 70 | 78 | Dallas County Hospital District | ||||||||
$ | 1,518 | 5.62%, 08/15/2044 | 83 | 100 | |||||||
Kansas - 0.01% | Dallas Independent School District (credit | ||||||||||
State of Kansas Department of Transportation | support fromPSF-GTD) | ||||||||||
4.60%, 09/01/2035 | 115 | 125 | 6.45%, 02/15/2035(i) | 50 | 53 | ||||||
Massachusetts - 0.01% | Grand Parkway Transportation Corp | ||||||||||
Commonwealth of Massachusetts | 5.18%, 10/01/2042 | 300 | 352 | ||||||||
4.20%, 12/01/2021 | 300 | 307 | State of Texas | ||||||||
4.68%, 04/01/2040 | 100 | 112 | |||||||||
Nevada - 0.00% | 5.52%, 04/01/2039 | 405 | 503 | ||||||||
County of Clark Department of Aviation | Texas Transportation Commission State Highway | ||||||||||
6.82%, 07/01/2045 | 25 | 36 | Fund | ||||||||
6.88%, 07/01/2042 | 70 | 71 | 5.18%, 04/01/2030 | 625 | 710 | ||||||
$ | 107 | $ | 2,149 | ||||||||
New Jersey- 0.10% | Utah - 0.01% | ||||||||||
New Jersey Economic Development | State of Utah | ||||||||||
Authority (credit support fromAGM) | 3.54%, 07/01/2025 | 300 | 307 | ||||||||
0.00%, 02/15/2023(f),(i) | 51 | 44 | |||||||||
New Jersey Economic Development | |||||||||||
Authority (credit support from NATL) | |||||||||||
7.43%, 02/15/2029(i) | 1,000 | 1,211 |
See accompanying notes.
129
Schedule of Investments Bond Market Index Account December 31, 2018
Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | |||||||||
MUNICIPAL BONDS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Wisconsin - 0.02% | Federal Home Loan Mortgage Corporation (FHLMC) (continued) | ||||||||||
State of Wisconsin (credit support fromAGM) | 3.00%, 11/01/2029 | $ | 138 | $ | 138 | ||||||
5.70%, 05/01/2026(i) | $ | 400 | $ | 445 | 3.00%, 11/01/2029 | 223 | 224 | ||||
TOTAL MUNICIPAL BONDS | $ | 18,658 | 3.00%, 12/01/2029 | 46 | 46 | ||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | 3.00%, 07/01/2030 | 503 | 502 | |||||||
AGENCY OBLIGATIONS- 66.41% | Amount (000's) Value (000's) | 3.00%, 09/01/2030 | 670 | 669 | |||||||
Federal Home Loan Mortgage Corporation (FHLMC)- 8.05% | 3.00%, 11/01/2030 | 113 | 112 | ||||||||
2.00%, 09/01/2028 | $ | 141 | $ | 139 | 3.00%, 11/01/2030 | 194 | 194 | ||||
2.00%, 08/01/2029 | 670 | 653 | 3.00%, 11/01/2030 | 344 | 343 | ||||||
2.00%, 10/01/2031 | 119 | 114 | 3.00%, 01/01/2031 | 242 | 241 | ||||||
2.00%, 03/01/2032 | 224 | 214 | 3.00%, 02/01/2031 | 250 | 249 | ||||||
2.50%, 08/01/2027 | 97 | 96 | 3.00%, 04/01/2031 | 279 | 279 | ||||||
2.50%, 08/01/2027 | 98 | 97 | 3.00%, 02/01/2032 | 92 | 92 | ||||||
2.50%, 10/01/2027 | 182 | 180 | 3.00%, 05/01/2032 | 151 | 150 | ||||||
2.50%, 03/01/2028 | 409 | 405 | 3.00%, 12/01/2032 | 886 | 883 | ||||||
2.50%, 04/01/2028 | 83 | 82 | 3.00%, 12/01/2032 | 768 | 766 | ||||||
2.50%, 04/01/2028 | 30 | 29 | 3.00%, 01/01/2033 | 1,278 | 1,273 | ||||||
2.50%, 06/01/2028 | 214 | 212 | 3.00%, 02/01/2033 | 743 | 740 | ||||||
2.50%, 06/01/2028 | 534 | 528 | 3.00%, 03/01/2033 | 479 | 477 | ||||||
2.50%, 06/01/2028 | 109 | 108 | 3.00%, 04/01/2033 | 257 | 255 | ||||||
2.50%, 06/01/2028 | 95 | 94 | 3.00%, 04/01/2033 | 240 | 239 | ||||||
2.50%, 07/01/2028 | 362 | 358 | 3.00%, 06/01/2033 | 158 | 157 | ||||||
2.50%, 10/01/2028 | 182 | 180 | 3.00%, 09/01/2033 | 225 | 224 | ||||||
2.50%, 10/01/2028 | 198 | 195 | 3.00%, 09/01/2033 | 218 | 217 | ||||||
2.50%, 10/01/2029 | 480 | 472 | 3.00%, 12/01/2033 | 99 | 99 | ||||||
2.50%, 12/01/2029 | 580 | 570 | 3.00%, 12/01/2034 | 79 | 78 | ||||||
2.50%, 09/01/2030 | 948 | 927 | 3.00%, 01/01/2035 | 53 | 53 | ||||||
2.50%, 01/01/2031 | 1,011 | 987 | 3.00%, 02/01/2035 | 75 | 74 | ||||||
2.50%, 01/01/2031 | 151 | 147 | 3.00%, 05/01/2035 | 646 | 641 | ||||||
2.50%, 01/01/2031 | 84 | 82 | 3.00%, 02/01/2036 | 142 | 140 | ||||||
2.50%, 02/01/2031 | 110 | 107 | 3.00%, 09/01/2036 | 115 | 114 | ||||||
2.50%, 03/01/2031 | 327 | 319 | 3.00%, 11/01/2036 | 329 | 326 | ||||||
2.50%, 12/01/2031 | 353 | 345 | 3.00%, 02/01/2037 | 170 | 168 | ||||||
2.50%, 12/01/2031 | 314 | 307 | 3.00%, 05/01/2037 | 247 | 244 | ||||||
2.50%, 01/01/2032 | 437 | 427 | 3.00%, 06/01/2037 | 276 | 273 | ||||||
2.50%, 02/01/2032 | 389 | 380 | 3.00%, 07/01/2037 | 443 | 438 | ||||||
2.50%, 03/01/2032 | 508 | 496 | 3.00%, 09/01/2037 | 89 | 88 | ||||||
2.50%, 11/01/2032 | 1,032 | 1,008 | 3.00%, 01/01/2043 | 373 | 366 | ||||||
2.50%, 11/01/2032 | 37 | 36 | 3.00%, 01/01/2043 | 228 | 224 | ||||||
2.50%, 02/01/2033 | 286 | 279 | 3.00%, 01/01/2043 | 533 | 524 | ||||||
2.50%, 03/01/2033 | 921 | 900 | 3.00%, 02/01/2043 | 1,449 | 1,424 | ||||||
2.50%, 03/01/2033 | 415 | 405 | 3.00%, 03/01/2043 | 943 | 926 | ||||||
2.50%, 04/01/2033 | 380 | 371 | 3.00%, 04/01/2043 | 337 | 331 | ||||||
2.50%, 05/01/2033 | 188 | 184 | 3.00%, 05/01/2043 | 347 | 340 | ||||||
2.50%, 06/01/2033 | 292 | 285 | 3.00%, 06/01/2043 | 659 | 647 | ||||||
2.50%, 11/01/2036 | 210 | 202 | 3.00%, 06/01/2043 | 198 | 194 | ||||||
2.50%, 02/01/2043 | 194 | 183 | 3.00%, 07/01/2043 | 1,029 | 1,011 | ||||||
2.50%, 03/01/2043 | 150 | 142 | 3.00%, 07/01/2043 | 1,063 | 1,045 | ||||||
2.50%, 07/01/2045 | 176 | 167 | 3.00%, 07/01/2043 | 535 | 525 | ||||||
2.50%, 11/01/2046 | 88 | 83 | 3.00%, 07/01/2043 | 589 | 579 | ||||||
2.50%, 01/01/2047 | 92 | 87 | 3.00%, 07/01/2043 | 59 | 58 | ||||||
2.50%, 02/01/2047 | 41 | 39 | 3.00%, 08/01/2043 | 205 | 201 | ||||||
3.00%, 01/01/2021 | 66 | 66 | 3.00%, 08/01/2043 | 269 | 264 | ||||||
3.00%, 01/01/2026 | 59 | 59 | 3.00%, 08/01/2043 | 122 | 119 | ||||||
3.00%, 01/01/2027 | 180 | 181 | 3.00%, 08/01/2043 | 269 | 265 | ||||||
3.00%, 02/01/2027 | 112 | 112 | 3.00%, 08/01/2043 | 1,781 | 1,750 | ||||||
3.00%, 02/01/2027 | 162 | 162 | 3.00%, 08/01/2043 | 316 | 310 | ||||||
3.00%, 02/01/2027 | 70 | 71 | 3.00%, 08/01/2043 | 29 | 28 | ||||||
3.00%, 03/01/2027 | 29 | 29 | 3.00%, 09/01/2043 | 90 | 88 | ||||||
3.00%, 03/01/2027 | 139 | 140 | 3.00%, 09/01/2043 | 283 | 278 | ||||||
3.00%, 05/01/2027 | 123 | 123 | 3.00%, 09/01/2043 | 641 | 630 | ||||||
3.00%, 06/01/2027 | 110 | 110 | 3.00%, 09/01/2043 | 401 | 394 | ||||||
3.00%, 09/01/2028 | 57 | 57 | 3.00%, 10/01/2043 | 547 | 538 | ||||||
3.00%, 10/01/2028 | 412 | 413 | 3.00%, 10/01/2043 | 149 | 146 | ||||||
3.00%, 07/01/2029 | 508 | 509 | 3.00%, 03/01/2045 | 845 | 827 | ||||||
3.00%, 07/01/2029 | 294 | 294 | 3.00%, 04/01/2045 | 275 | 269 | ||||||
3.00%, 08/01/2029 | 222 | 222 | 3.00%, 06/01/2045 | 959 | 938 | ||||||
3.00%, 09/01/2029 | 89 | 89 | 3.00%, 07/01/2045 | 545 | 534 | ||||||
3.00%, 10/01/2029 | 133 | 133 | 3.00%, 07/01/2045 | 570 | 557 |
See accompanying notes.
130
Schedule of Investments Bond Market Index Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (continued) | Federal Home Loan Mortgage Corporation (FHLMC) (continued) | ||||||||||
3.00%, 08/01/2045 | $ | 1,063 | $ | 1,039 | 3.50%, 09/01/2033 | $ | 588 | $ | 595 | ||
3.00%, 08/01/2045 | 345 | 337 | 3.50%, 01/01/2034 | 85 | 87 | ||||||
3.00%, 08/01/2045 | 275 | 269 | 3.50%, 01/01/2035 | 177 | 180 | ||||||
3.00%, 12/01/2045 | 1,587 | 1,549 | 3.50%, 02/01/2035 | 163 | 165 | ||||||
3.00%, 03/01/2046 | 314 | 307 | 3.50%, 07/01/2035 | 200 | 203 | ||||||
3.00%, 03/01/2046 | 740 | 722 | 3.50%, 09/01/2035 | 412 | 417 | ||||||
3.00%, 04/01/2046 | 125 | 122 | 3.50%, 04/01/2037 | 125 | 126 | ||||||
3.00%, 04/01/2046 | 1,067 | 1,041 | 3.50%, 06/01/2037 | 296 | 299 | ||||||
3.00%, 05/01/2046 | 236 | 230 | 3.50%, 02/01/2041 | 34 | 34 | ||||||
3.00%, 07/01/2046 | 64 | 63 | 3.50%, 05/01/2041 | 380 | 383 | ||||||
3.00%, 09/01/2046 | 1,157 | 1,129 | 3.50%, 10/01/2041 | 33 | 33 | ||||||
3.00%, 10/01/2046 | 906 | 884 | 3.50%, 11/01/2041 | 36 | 36 | ||||||
3.00%, 11/01/2046 | 1,264 | 1,233 | 3.50%, 01/01/2042 | 84 | 84 | ||||||
3.00%, 11/01/2046 | 172 | 168 | 3.50%, 01/01/2042(j) | 12,100 | 12,093 | ||||||
3.00%, 11/01/2046 | 1,004 | 980 | 3.50%, 02/01/2042(j) | 1,000 | 999 | ||||||
3.00%, 11/01/2046 | 1,730 | 1,687 | 3.50%, 02/01/2042 | 500 | 504 | ||||||
3.00%, 12/01/2046 | 1,221 | 1,190 | 3.50%, 02/01/2042 | 32 | 33 | ||||||
3.00%, 12/01/2046 | 1,498 | 1,462 | 3.50%, 03/01/2042 | 12 | 12 | ||||||
3.00%, 01/01/2047 | 1,974 | 1,925 | 3.50%, 03/01/2042 | 44 | 44 | ||||||
3.00%, 01/01/2047 | 27 | 26 | 3.50%, 04/01/2042 | 126 | 126 | ||||||
3.00%, 03/01/2047 | 1,798 | 1,754 | 3.50%, 04/01/2042 | 130 | 131 | ||||||
3.00%, 03/01/2048 | 987 | 962 | 3.50%, 04/01/2042 | 87 | 88 | ||||||
3.00%, 06/01/2048 | 222 | 217 | 3.50%, 04/01/2042 | 28 | 28 | ||||||
3.00%, 09/01/2048 | 169 | 165 | 3.50%, 04/01/2042 | 99 | 100 | ||||||
3.00%, 10/01/2048 | 100 | 97 | 3.50%, 06/01/2042 | 300 | 302 | ||||||
3.50%, 04/01/2021 | 75 | 76 | 3.50%, 06/01/2042 | 78 | 79 | ||||||
3.50%, 10/01/2023 | 53 | 53 | 3.50%, 06/01/2042 | 82 | 82 | ||||||
3.50%, 10/01/2025 | 9 | 10 | 3.50%, 07/01/2042 | 416 | 420 | ||||||
3.50%, 10/01/2025 | 157 | 159 | 3.50%, 07/01/2042 | 501 | 505 | ||||||
3.50%, 10/01/2025 | 7 | 7 | 3.50%, 08/01/2042 | 491 | 495 | ||||||
3.50%, 11/01/2025 | 218 | 221 | 3.50%, 08/01/2042 | 108 | 109 | ||||||
3.50%, 11/01/2025 | 5 | 5 | 3.50%, 08/01/2042 | 216 | 218 | ||||||
3.50%, 11/01/2025 | 3 | 3 | 3.50%, 02/01/2043 | 499 | 503 | ||||||
3.50%, 11/01/2025 | 8 | 8 | 3.50%, 08/01/2043 | 43 | 43 | ||||||
3.50%, 11/01/2025 | 18 | 19 | 3.50%, 02/01/2044 | 594 | 597 | ||||||
3.50%, 11/01/2025 | 23 | 23 | 3.50%, 06/01/2044 | 847 | 853 | ||||||
3.50%, 12/01/2025 | 18 | 18 | 3.50%, 08/01/2044 | 535 | 538 | ||||||
3.50%, 12/01/2025 | 7 | 7 | 3.50%, 09/01/2044 | 459 | 461 | ||||||
3.50%, 01/01/2026 | 348 | 352 | 3.50%, 02/01/2045 | 502 | 504 | ||||||
3.50%, 01/01/2026 | 13 | 13 | 3.50%, 03/01/2045 | 718 | 721 | ||||||
3.50%, 02/01/2026 | 11 | 11 | 3.50%, 06/01/2045 | 797 | 799 | ||||||
3.50%, 04/01/2026 | 30 | 30 | 3.50%, 07/01/2045 | 1,369 | 1,374 | ||||||
3.50%, 05/01/2026 | 48 | 49 | 3.50%, 09/01/2045 | 37 | 37 | ||||||
3.50%, 06/01/2026 | 8 | 8 | 3.50%, 09/01/2045 | 785 | 788 | ||||||
3.50%, 06/01/2026 | 5 | 5 | 3.50%, 10/01/2045 | 873 | 876 | ||||||
3.50%, 07/01/2026 | 27 | 28 | 3.50%, 11/01/2045 | 1,393 | 1,398 | ||||||
3.50%, 07/01/2026 | 5 | 5 | 3.50%, 12/01/2045 | 775 | 778 | ||||||
3.50%, 07/01/2026 | 18 | 18 | 3.50%, 12/01/2045 | 1,115 | 1,119 | ||||||
3.50%, 08/01/2026 | 18 | 18 | 3.50%, 12/01/2045 | 133 | 133 | ||||||
3.50%, 08/01/2026 | 66 | 67 | 3.50%, 01/01/2046 | 153 | 154 | ||||||
3.50%, 09/01/2026 | 24 | 25 | 3.50%, 01/01/2046 | 397 | 398 | ||||||
3.50%, 10/01/2026 | 15 | 15 | 3.50%, 03/01/2046 | 301 | 302 | ||||||
3.50%, 12/01/2026 | 225 | 228 | 3.50%, 03/01/2046 | 3,784 | 3,796 | ||||||
3.50%, 01/01/2027(j) | 500 | 506 | 3.50%, 03/01/2046 | 729 | 731 | ||||||
3.50%, 01/01/2027 | 28 | 28 | 3.50%, 04/01/2046 | 913 | 916 | ||||||
3.50%, 12/01/2028 | 65 | 66 | 3.50%, 05/01/2046 | 1,003 | 1,006 | ||||||
3.50%, 01/01/2029 | 189 | 192 | 3.50%, 06/01/2046 | 1,127 | 1,127 | ||||||
3.50%, 03/01/2029 | 34 | 35 | 3.50%, 08/01/2046 | 774 | 774 | ||||||
3.50%, 06/01/2029 | 223 | 226 | 3.50%, 04/01/2047 | 1,381 | 1,383 | ||||||
3.50%, 07/01/2029 | 87 | 89 | 3.50%, 08/01/2047 | 1,349 | 1,350 | ||||||
3.50%, 08/01/2029 | 40 | 41 | 3.50%, 11/01/2047 | 974 | 974 | ||||||
3.50%, 09/01/2029 | 56 | 57 | 3.50%, 11/01/2047 | 1,286 | 1,286 | ||||||
3.50%, 01/01/2030 | 31 | 31 | 3.50%, 01/01/2048 | 500 | 500 | ||||||
3.50%, 01/01/2032 | 127 | 129 | 3.50%, 05/01/2048 | 195 | 195 | ||||||
3.50%, 02/01/2032 | 79 | 81 | 3.50%, 06/01/2048 | 491 | 491 | ||||||
3.50%, 03/01/2032 | 98 | 100 | 3.50%, 06/01/2048 | 972 | 972 | ||||||
3.50%, 04/01/2032 | 91 | 93 | 3.50%, 06/01/2048 | 495 | 494 | ||||||
3.50%, 08/01/2032 | 77 | 79 | 3.50%, 09/01/2048 | 376 | 376 |
See accompanying notes.
131
Schedule of Investments Bond Market Index Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (continued) | Federal Home Loan Mortgage Corporation (FHLMC) (continued) | ||||||||||
3.50%, 09/01/2048 | $ | 593 | $ | 593 | 4.00%, 03/01/2042 | $ | 87 | $ | 89 | ||
3.50%, 10/01/2048 | 498 | 498 | 4.00%, 06/01/2042 | 136 | 140 | ||||||
3.50%, 11/01/2048 | 572 | 572 | 4.00%, 06/01/2042 | 166 | 170 | ||||||
4.00%, 10/01/2020 | 8 | 8 | 4.00%, 02/01/2043(j) | 1,700 | 1,732 | ||||||
4.00%, 05/01/2024 | 47 | 49 | 4.00%, 08/01/2043 | 808 | 829 | ||||||
4.00%, 05/01/2024 | 22 | 22 | 4.00%, 11/01/2043 | 15 | 15 | ||||||
4.00%, 12/01/2024 | 8 | 8 | 4.00%, 01/01/2044 | 182 | 186 | ||||||
4.00%, 01/01/2025 | 14 | 14 | 4.00%, 02/01/2044 | 432 | 443 | ||||||
4.00%, 02/01/2025 | 5 | 6 | 4.00%, 02/01/2044 | 68 | 70 | ||||||
4.00%, 03/01/2025 | 5 | 5 | 4.00%, 02/01/2044 | 215 | 220 | ||||||
4.00%, 03/01/2025 | 11 | 11 | 4.00%, 03/01/2044 | 132 | 136 | ||||||
4.00%, 04/01/2025 | 8 | 9 | 4.00%, 04/01/2044 | 566 | 578 | ||||||
4.00%, 06/01/2025 | 14 | 14 | 4.00%, 05/01/2044 | 150 | 153 | ||||||
4.00%, 06/01/2025 | 7 | 7 | 4.00%, 05/01/2044 | 59 | 61 | ||||||
4.00%, 06/01/2025 | 7 | 7 | 4.00%, 07/01/2044 | 449 | 459 | ||||||
4.00%, 06/01/2025 | 140 | 143 | 4.00%, 07/01/2044 | 87 | 89 | ||||||
4.00%, 07/01/2025 | 4 | 4 | 4.00%, 07/01/2044 | 379 | 388 | ||||||
4.00%, 07/01/2025 | 195 | 200 | 4.00%, 10/01/2044 | 400 | 409 | ||||||
4.00%, 08/01/2025 | 8 | 8 | 4.00%, 11/01/2044 | 746 | 763 | ||||||
4.00%, 08/01/2025 | 13 | 13 | 4.00%, 12/01/2044 | 14 | 14 | ||||||
4.00%, 09/01/2025 | 2 | 2 | 4.00%, 12/01/2044 | 869 | 888 | ||||||
4.00%, 10/01/2025 | 27 | 28 | 4.00%, 01/01/2045 | 241 | 246 | ||||||
4.00%, 02/01/2026 | 13 | 14 | 4.00%, 02/01/2045 | 371 | 379 | ||||||
4.00%, 05/01/2026 | 37 | 38 | 4.00%, 02/01/2045 | 24 | 24 | ||||||
4.00%, 07/01/2026 | 27 | 28 | 4.00%, 04/01/2045 | 308 | 314 | ||||||
4.00%, 01/01/2027(j) | 425 | 435 | 4.00%, 04/01/2045 | 13 | 13 | ||||||
4.00%, 12/01/2030 | 41 | 42 | 4.00%, 05/01/2045 | 151 | 155 | ||||||
4.00%, 08/01/2031 | 44 | 46 | 4.00%, 06/01/2045 | 336 | 344 | ||||||
4.00%, 10/01/2031 | 59 | 61 | 4.00%, 07/01/2045 | 353 | 360 | ||||||
4.00%, 11/01/2031 | 19 | 19 | 4.00%, 08/01/2045 | 66 | 67 | ||||||
4.00%, 12/01/2031 | 30 | 31 | 4.00%, 08/01/2045 | 116 | 119 | ||||||
4.00%, 11/01/2033 | 84 | 87 | 4.00%, 08/01/2045 | 129 | 132 | ||||||
4.00%, 01/01/2034 | 139 | 144 | 4.00%, 08/01/2045 | 1,216 | 1,242 | ||||||
4.00%, 07/01/2035 | 59 | 61 | 4.00%, 09/01/2045 | 14 | 14 | ||||||
4.00%, 03/01/2037 | 264 | 272 | 4.00%, 09/01/2045 | 1,432 | 1,462 | ||||||
4.00%, 05/01/2038 | 139 | 143 | 4.00%, 09/01/2045 | 396 | 405 | ||||||
4.00%, 06/01/2039 | 3 | 3 | 4.00%, 10/01/2045 | 1,522 | 1,554 | ||||||
4.00%, 07/01/2039 | 29 | 30 | 4.00%, 11/01/2045 | 877 | 895 | ||||||
4.00%, 09/01/2039 | 18 | 19 | 4.00%, 12/01/2045 | 389 | 397 | ||||||
4.00%, 12/01/2039 | 20 | 21 | 4.00%, 01/01/2046 | 104 | 106 | ||||||
4.00%, 12/01/2039 | 14 | 14 | 4.00%, 02/01/2046 | 18 | 19 | ||||||
4.00%, 01/01/2040 | 22 | 23 | 4.00%, 03/01/2047 | 1,362 | 1,390 | ||||||
4.00%, 03/01/2040 | 10 | 11 | 4.00%, 08/01/2047 | 1,459 | 1,488 | ||||||
4.00%, 09/01/2040 | 28 | 29 | 4.00%, 07/01/2048 | 475 | 484 | ||||||
4.00%, 09/01/2040 | 5 | 5 | 4.00%, 08/01/2048 | 978 | 997 | ||||||
4.00%, 10/01/2040 | 46 | 47 | 4.00%, 09/01/2048 | 859 | 876 | ||||||
4.00%, 10/01/2040 | 23 | 23 | 4.00%, 09/01/2048 | 46 | 47 | ||||||
4.00%, 12/01/2040 | 39 | 40 | 4.00%, 09/01/2048 | 41 | 42 | ||||||
4.00%, 12/01/2040 | 74 | 76 | 4.50%, 04/01/2023 | 5 | 5 | ||||||
4.00%, 12/01/2040 | 43 | 45 | 4.50%, 08/01/2023 | 84 | 86 | ||||||
4.00%, 12/01/2040 | 35 | 36 | 4.50%, 01/01/2024 | 3 | 3 | ||||||
4.00%, 12/01/2040 | 28 | 28 | 4.50%, 01/01/2024 | 4 | 4 | ||||||
4.00%, 02/01/2041 | 88 | 91 | 4.50%, 04/01/2024 | 45 | 47 | ||||||
4.00%, 02/01/2041 | 62 | 64 | 4.50%, 05/01/2024 | 78 | 81 | ||||||
4.00%, 02/01/2041 | 273 | 281 | 4.50%, 07/01/2024 | 5 | 5 | ||||||
4.00%, 04/01/2041 | 32 | 33 | 4.50%, 09/01/2024 | 11 | 11 | ||||||
4.00%, 07/01/2041 | 25 | 26 | 4.50%, 09/01/2024 | 12 | 13 | ||||||
4.00%, 08/01/2041 | 52 | 54 | 4.50%, 11/01/2024 | 66 | 68 | ||||||
4.00%, 08/01/2041 | 23 | 24 | 4.50%, 04/01/2025 | 12 | 12 | ||||||
4.00%, 10/01/2041 | 9 | 10 | 4.50%, 05/01/2025 | 5 | 5 | ||||||
4.00%, 10/01/2041 | 29 | 30 | 4.50%, 07/01/2025 | 13 | 13 | ||||||
4.00%, 10/01/2041 | 74 | 76 | 4.50%, 09/01/2026 | 66 | 68 | ||||||
4.00%, 10/01/2041 | 35 | 36 | 4.50%, 02/01/2030 | 14 | 14 | ||||||
4.00%, 10/01/2041 | 79 | 81 | 4.50%, 08/01/2030 | 10 | 11 | ||||||
4.00%, 11/01/2041 | 95 | 98 | 4.50%, 05/01/2031 | 13 | 14 | ||||||
4.00%, 11/01/2041 | 52 | 54 | 4.50%, 06/01/2031 | 88 | 92 | ||||||
4.00%, 11/01/2041 | 158 | 162 | 4.50%, 08/01/2035 | 37 | 39 | ||||||
4.00%, 01/01/2042(j) | 13,200 | 13,457 | 4.50%, 08/01/2035 | 91 | 94 |
See accompanying notes.
132
Schedule of Investments Bond Market Index Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (continued) | Federal Home Loan Mortgage Corporation (FHLMC) (continued) | ||||||||||
4.50%, 08/01/2036 | $ | 15 | $ | 15 | 4.50%, 03/01/2044 | $ | 191 | $ | 197 | ||
4.50%, 02/01/2039 | 33 | 34 | 4.50%, 03/01/2044 | 72 | 74 | ||||||
4.50%, 02/01/2039 | 1 | 1 | 4.50%, 05/01/2044 | 308 | 319 | ||||||
4.50%, 03/01/2039 | 25 | 26 | 4.50%, 05/01/2044 | 38 | 39 | ||||||
4.50%, 04/01/2039 | 46 | 48 | 4.50%, 05/01/2044 | 34 | 35 | ||||||
4.50%, 05/01/2039 | 60 | 63 | 4.50%, 07/01/2044 | 78 | 81 | ||||||
4.50%, 05/01/2039 | 120 | 125 | 4.50%, 07/01/2044 | 121 | 125 | ||||||
4.50%, 06/01/2039 | 27 | 28 | 4.50%, 09/01/2044 | 120 | 124 | ||||||
4.50%, 06/01/2039 | 146 | 152 | 4.50%, 07/01/2045 | 16 | 16 | ||||||
4.50%, 09/01/2039 | 250 | 261 | 4.50%, 09/01/2045 | 88 | 91 | ||||||
4.50%, 10/01/2039 | 61 | 64 | 4.50%, 10/01/2045 | 151 | 157 | ||||||
4.50%, 10/01/2039 | 105 | 109 | 4.50%, 02/01/2046 | 605 | 627 | ||||||
4.50%, 11/01/2039 | 25 | 26 | 4.50%, 03/01/2047 | 726 | 752 | ||||||
4.50%, 11/01/2039 | 40 | 42 | 4.50%, 03/01/2047 | 159 | 165 | ||||||
4.50%, 11/01/2039 | 42 | 44 | 4.50%, 04/01/2047 | 195 | 202 | ||||||
4.50%, 11/01/2039 | 16 | 17 | 4.50%, 06/01/2047 | 423 | 438 | ||||||
4.50%, 12/01/2039 | 68 | 71 | 4.50%, 09/01/2047 | 397 | 411 | ||||||
4.50%, 12/01/2039 | 20 | 21 | 4.50%, 11/01/2047 | 93 | 96 | ||||||
4.50%, 02/01/2040 | 37 | 39 | 4.50%, 05/01/2048 | 499 | 516 | ||||||
4.50%, 02/01/2040 | 72 | 76 | 4.50%, 07/01/2048 | 966 | 1,000 | ||||||
4.50%, 02/01/2040 | 9 | 9 | 4.50%, 09/01/2048 | 547 | 567 | ||||||
4.50%, 02/01/2040 | 64 | 67 | 4.50%, 12/01/2048 | 449 | 465 | ||||||
4.50%, 04/01/2040 | 40 | 42 | 5.00%, 12/01/2019 | 2 | 2 | ||||||
4.50%, 05/01/2040 | 15 | 15 | 5.00%, 12/01/2021 | 2 | 2 | ||||||
4.50%, 05/01/2040 | 50 | 52 | 5.00%, 02/01/2022 | 2 | 2 | ||||||
4.50%, 07/01/2040 | 42 | 44 | 5.00%, 09/01/2022 | 3 | 4 | ||||||
4.50%, 07/01/2040 | 38 | 39 | 5.00%, 06/01/2023 | 70 | 73 | ||||||
4.50%, 08/01/2040 | 16 | 17 | 5.00%, 06/01/2023 | 3 | 3 | ||||||
4.50%, 08/01/2040 | 23 | 24 | 5.00%, 09/01/2023 | 69 | 72 | ||||||
4.50%, 08/01/2040 | 17 | 17 | 5.00%, 12/01/2023 | 36 | 37 | ||||||
4.50%, 08/01/2040 | 32 | 34 | 5.00%, 04/01/2024 | 30 | 31 | ||||||
4.50%, 08/01/2040 | 74 | 77 | 5.00%, 07/01/2024 | 4 | 4 | ||||||
4.50%, 09/01/2040 | 16 | 17 | 5.00%, 01/01/2025 | 101 | 106 | ||||||
4.50%, 09/01/2040 | 15 | 16 | 5.00%, 06/01/2025 | 4 | 5 | ||||||
4.50%, 09/01/2040 | 9 | 10 | 5.00%, 06/01/2026 | 19 | 19 | ||||||
4.50%, 10/01/2040 | 160 | 167 | 5.00%, 12/01/2027 | 33 | 35 | ||||||
4.50%, 02/01/2041 | 29 | 30 | 5.00%, 02/01/2030 | 6 | 7 | ||||||
4.50%, 03/01/2041 | 256 | 267 | 5.00%, 03/01/2030 | 4 | 4 | ||||||
4.50%, 03/01/2041 | 395 | 414 | 5.00%, 08/01/2033 | 5 | 5 | ||||||
4.50%, 03/01/2041 | 335 | 348 | 5.00%, 08/01/2033 | 34 | 36 | ||||||
4.50%, 03/01/2041 | 47 | 50 | 5.00%, 09/01/2033 | 10 | 11 | ||||||
4.50%, 04/01/2041 | 43 | 45 | 5.00%, 09/01/2033 | 5 | 6 | ||||||
4.50%, 04/01/2041 | 63 | 66 | 5.00%, 03/01/2034 | 9 | 9 | ||||||
4.50%, 05/01/2041 | 71 | 73 | 5.00%, 04/01/2034 | 99 | 105 | ||||||
4.50%, 05/01/2041 | 22 | 23 | 5.00%, 04/01/2034 | 13 | 14 | ||||||
4.50%, 05/01/2041 | 66 | 69 | 5.00%, 05/01/2034 | 28 | 29 | ||||||
4.50%, 06/01/2041 | 24 | 25 | 5.00%, 05/01/2035 | 25 | 26 | ||||||
4.50%, 06/01/2041 | 31 | 33 | 5.00%, 06/01/2035 | 138 | 147 | ||||||
4.50%, 06/01/2041 | 15 | 16 | 5.00%, 08/01/2035 | 3 | 4 | ||||||
4.50%, 06/01/2041 | 34 | 35 | 5.00%, 08/01/2035 | 8 | 9 | ||||||
4.50%, 07/01/2041 | 43 | 45 | 5.00%, 09/01/2035 | 8 | 9 | ||||||
4.50%, 07/01/2041 | 40 | 42 | 5.00%, 09/01/2035 | 22 | 23 | ||||||
4.50%, 08/01/2041 | 24 | 25 | 5.00%, 10/01/2035 | 10 | 10 | ||||||
4.50%, 09/01/2041 | 183 | 189 | 5.00%, 11/01/2035 | 41 | 43 | ||||||
4.50%, 10/01/2041 | 63 | 66 | 5.00%, 12/01/2035 | 23 | 25 | ||||||
4.50%, 11/01/2041 | 283 | 295 | 5.00%, 12/01/2035 | 36 | 38 | ||||||
4.50%, 03/01/2042 | 52 | 54 | 5.00%, 04/01/2036 | 1 | 2 | ||||||
4.50%, 01/01/2043(j) | 1,775 | 1,837 | 5.00%, 06/01/2036 | 4 | 4 | ||||||
4.50%, 02/01/2043(j) | 900 | 931 | 5.00%, 08/01/2036 | 20 | 21 | ||||||
4.50%, 09/01/2043 | 39 | 40 | 5.00%, 10/01/2036 | 79 | 84 | ||||||
4.50%, 09/01/2043 | 232 | 241 | 5.00%, 01/01/2037 | 40 | 43 | ||||||
4.50%, 10/01/2043 | 17 | 18 | 5.00%, 01/01/2038 | 248 | 263 | ||||||
4.50%, 11/01/2043 | 142 | 148 | 5.00%, 02/01/2038 | 11 | 12 | ||||||
4.50%, 11/01/2043 | 14 | 14 | 5.00%, 02/01/2038 | 108 | 114 | ||||||
4.50%, 11/01/2043 | 67 | 69 | 5.00%, 03/01/2038 | 1 | 1 | ||||||
4.50%, 11/01/2043 | 129 | 134 | 5.00%, 06/01/2038 | 4 | 4 | ||||||
4.50%, 01/01/2044 | 111 | 115 | 5.00%, 09/01/2038 | 8 | 8 | ||||||
4.50%, 01/01/2044 | 170 | 176 | 5.00%, 09/01/2038 | 1 | 1 |
See accompanying notes.
133
Schedule of Investments Bond Market Index Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (continued) | Federal Home Loan Mortgage Corporation (FHLMC) (continued) | ||||||||||
5.00%, 11/01/2038 | $ | 14 | $ | 15 | 5.50%, 01/01/2038 | $ | 28 | $ | 30 | ||
5.00%, 11/01/2038 | 211 | 223 | 5.50%, 04/01/2038 | 3 | 3 | ||||||
5.00%, 12/01/2038 | 215 | 227 | 5.50%, 04/01/2038 | 17 | 18 | ||||||
5.00%, 01/01/2039 | 21 | 23 | 5.50%, 04/01/2038 | 1 | 1 | ||||||
5.00%, 01/01/2039 | 230 | 244 | 5.50%, 05/01/2038 | 5 | 5 | ||||||
5.00%, 02/01/2039 | 12 | 13 | 5.50%, 05/01/2038 | 3 | 4 | ||||||
5.00%, 03/01/2039 | 22 | 23 | 5.50%, 06/01/2038 | 8 | 9 | ||||||
5.00%, 06/01/2039 | 5 | 6 | 5.50%, 06/01/2038 | 52 | 55 | ||||||
5.00%, 07/01/2039 | 17 | 18 | 5.50%, 06/01/2038 | 1 | 1 | ||||||
5.00%, 09/01/2039 | 337 | 357 | 5.50%, 07/01/2038 | 17 | 18 | ||||||
5.00%, 09/01/2039 | 47 | 50 | 5.50%, 07/01/2038 | 73 | 78 | ||||||
5.00%, 10/01/2039 | 37 | 40 | 5.50%, 07/01/2038 | 1 | 1 | ||||||
5.00%, 01/01/2040 | 61 | 65 | 5.50%, 07/01/2038 | 3 | 3 | ||||||
5.00%, 01/01/2040 | 228 | 241 | 5.50%, 08/01/2038 | 19 | 20 | ||||||
5.00%, 03/01/2040 | 9 | 10 | 5.50%, 09/01/2038 | 5 | 6 | ||||||
5.00%, 05/01/2040 | 152 | 162 | 5.50%, 09/01/2038 | 89 | 95 | ||||||
5.00%, 07/01/2040 | 36 | 38 | 5.50%, 10/01/2038 | 3 | 3 | ||||||
5.00%, 07/01/2040 | 32 | 34 | 5.50%, 10/01/2038 | 77 | 82 | ||||||
5.00%, 08/01/2040 | 102 | 108 | 5.50%, 11/01/2038 | 3 | 3 | ||||||
5.00%, 08/01/2040 | 76 | 80 | 5.50%, 11/01/2038 | 1 | 1 | ||||||
5.00%, 08/01/2040 | 24 | 25 | 5.50%, 12/01/2038 | 71 | 77 | ||||||
5.00%, 09/01/2040 | 78 | 81 | 5.50%, 01/01/2039 | 10 | 11 | ||||||
5.00%, 02/01/2041 | 476 | 504 | 5.50%, 02/01/2039 | 93 | 100 | ||||||
5.00%, 04/01/2041 | 152 | 161 | 5.50%, 03/01/2039 | 197 | 212 | ||||||
5.00%, 04/01/2041 | 32 | 34 | 5.50%, 04/01/2039 | 117 | 126 | ||||||
5.00%, 05/01/2041 | 6 | 6 | 5.50%, 04/01/2039 | 10 | 10 | ||||||
5.00%, 06/01/2041 | 114 | 120 | 5.50%, 09/01/2039 | 34 | 36 | ||||||
5.00%, 07/01/2041 | 32 | 33 | 5.50%, 12/01/2039 | 21 | 23 | ||||||
5.00%, 09/01/2041 | 40 | 42 | 5.50%, 01/01/2040 | 22 | 23 | ||||||
5.00%, 10/01/2041 | 73 | 77 | 5.50%, 02/01/2040 | 189 | 204 | ||||||
5.00%, 10/01/2041 | 96 | 102 | 5.50%, 03/01/2040 | 3 | 3 | ||||||
5.00%, 10/01/2041 | 48 | 51 | 5.50%, 06/01/2040 | 27 | 28 | ||||||
5.00%, 11/01/2041 | 304 | 318 | 5.50%, 06/01/2041 | 269 | 290 | ||||||
5.00%, 11/01/2041 | 128 | 136 | 5.50%, 06/01/2041 | 26 | 28 | ||||||
5.50%, 01/01/2022 | 2 | 2 | 6.00%, 11/01/2022 | 2 | 2 | ||||||
5.50%, 04/01/2023 | 11 | 11 | 6.00%, 02/01/2027 | 10 | 11 | ||||||
5.50%, 01/01/2028 | 83 | 88 | 6.00%, 07/01/2029 | 1 | 1 | ||||||
5.50%, 12/01/2032 | 34 | 36 | 6.00%, 07/01/2029 | 3 | 4 | ||||||
5.50%, 03/01/2033 | 2 | 2 | 6.00%, 12/01/2031 | 2 | 2 | ||||||
5.50%, 12/01/2033 | 1 | 2 | 6.00%, 01/01/2032 | 16 | 17 | ||||||
5.50%, 01/01/2034 | 54 | 58 | 6.00%, 11/01/2033 | 28 | 31 | ||||||
5.50%, 01/01/2034 | 10 | 11 | 6.00%, 06/01/2034 | 22 | 24 | ||||||
5.50%, 02/01/2034 | 80 | 85 | 6.00%, 08/01/2034 | 2 | 3 | ||||||
5.50%, 03/01/2034 | 20 | 21 | 6.00%, 05/01/2036 | 11 | 12 | ||||||
5.50%, 10/01/2034 | 1 | 1 | 6.00%, 06/01/2036 | 29 | 31 | ||||||
5.50%, 10/01/2034 | 7 | 8 | 6.00%, 11/01/2036 | 20 | 22 | ||||||
5.50%, 02/01/2035 | 17 | 18 | 6.00%, 12/01/2036 | 114 | 125 | ||||||
5.50%, 03/01/2035 | 12 | 12 | 6.00%, 02/01/2037 | 2 | 2 | ||||||
5.50%, 05/01/2035 | 12 | 13 | 6.00%, 03/01/2037 | 1 | 1 | ||||||
5.50%, 11/01/2035 | 18 | 20 | 6.00%, 05/01/2037 | 1 | 1 | ||||||
5.50%, 04/01/2036 | 189 | 204 | 6.00%, 10/01/2037 | 9 | 10 | ||||||
5.50%, 05/01/2036 | 6 | 6 | 6.00%, 11/01/2037 | 13 | 14 | ||||||
5.50%, 05/01/2036 | 25 | 27 | 6.00%, 12/01/2037 | 45 | 49 | ||||||
5.50%, 07/01/2036 | 65 | 70 | 6.00%, 12/01/2037 | 2 | 2 | ||||||
5.50%, 07/01/2036 | 18 | 19 | 6.00%, 01/01/2038 | 1 | 1 | ||||||
5.50%, 11/01/2036 | 8 | 8 | 6.00%, 01/01/2038 | 42 | 46 | ||||||
5.50%, 12/01/2036 | 3 | 3 | 6.00%, 01/01/2038 | 3 | 3 | ||||||
5.50%, 12/01/2036 | 131 | 142 | 6.00%, 01/01/2038 | 11 | 12 | ||||||
5.50%, 12/01/2036 | 1 | 1 | 6.00%, 01/01/2038 | 9 | 10 | ||||||
5.50%, 12/01/2036 | 119 | 129 | 6.00%, 01/01/2038 | 12 | 13 | ||||||
5.50%, 01/01/2037 | 122 | 131 | 6.00%, 04/01/2038 | 69 | 75 | ||||||
5.50%, 02/01/2037 | 1 | 1 | 6.00%, 05/01/2038 | 17 | 19 | ||||||
5.50%, 02/01/2037 | 36 | 38 | 6.00%, 07/01/2038 | 4 | 4 | ||||||
5.50%, 07/01/2037 | 8 | 8 | 6.00%, 07/01/2038 | 10 | 11 | ||||||
5.50%, 07/01/2037 | 2 | 2 | 6.00%, 08/01/2038 | 6 | 7 | ||||||
5.50%, 09/01/2037 | 5 | 5 | 6.00%, 09/01/2038 | 6 | 7 | ||||||
5.50%, 11/01/2037 | 5 | 6 | 6.00%, 09/01/2038 | 4 | 4 | ||||||
5.50%, 01/01/2038 | 4 | 5 | 6.00%, 12/01/2039 | 2 | 2 |
See accompanying notes.
134
Schedule of Investments Bond Market Index Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (continued) | Federal National Mortgage Association (FNMA) (continued) | ||||||||||
6.50%, 04/01/2028 | $ | 1 | $ | 1 | 2.50%, 05/01/2031 | $ | 193 | $ | 189 | ||
6.50%, 05/01/2031 | 3 | 4 | 2.50%, 06/01/2031 | 325 | 317 | ||||||
6.50%, 10/01/2031 | 1 | 1 | 2.50%, 09/01/2031 | 91 | 89 | ||||||
6.50%, 04/01/2035 | 1 | 1 | 2.50%, 11/01/2031 | 1,099 | 1,073 | ||||||
6.50%, 09/01/2036 | 6 | 7 | 2.50%, 12/01/2031 | 478 | 467 | ||||||
6.50%, 10/01/2037 | 14 | 16 | 2.50%, 12/01/2031 | 549 | 536 | ||||||
6.50%, 11/01/2037 | 5 | 6 | 2.50%, 01/01/2032 | 555 | 542 | ||||||
6.50%, 12/01/2037 | 1 | 1 | 2.50%, 01/01/2032 | 1,036 | 1,012 | ||||||
6.50%, 02/01/2038 | 2 | 3 | 2.50%, 02/01/2032 | 626 | 611 | ||||||
6.50%, 09/01/2038 | 8 | 9 | 2.50%, 03/01/2032 | 263 | 257 | ||||||
6.50%, 10/01/2038 | 3 | 4 | 2.50%, 03/01/2032 | 277 | 271 | ||||||
6.50%, 01/01/2039 | 5 | 6 | 2.50%, 04/01/2032 | 378 | 369 | ||||||
6.50%, 09/01/2039 | 12 | 13 | 2.50%, 08/01/2032 | 41 | 40 | ||||||
7.00%, 10/01/2029 | 1 | 1 | 2.50%, 11/01/2032 | 49 | 48 | ||||||
7.00%, 09/01/2031 | 3 | 4 | 2.50%, 12/01/2032 | 141 | 138 | ||||||
7.00%, 09/01/2038 | 4 | 5 | 2.50%, 01/01/2033 | 24 | 23 | ||||||
7.50%, 07/01/2029 | 12 | 13 | 2.50%, 01/01/2033 | 555 | 543 | ||||||
7.50%, 10/01/2030 | 1 | 2 | 2.50%, 01/01/2033 | 37 | 36 | ||||||
$ | 178,226 | 2.50%, 01/01/2033 | 53 | 52 | |||||||
Federal National Mortgage Association (FNMA) - 12.23% | 2.50%, 02/01/2033 | 837 | 818 | ||||||||
2.00%, 08/01/2028 | 129 | 126 | 2.50%, 07/01/2033 | 110 | 107 | ||||||
2.00%, 09/01/2028 | 152 | 148 | 2.50%, 10/01/2036 | 62 | 60 | ||||||
2.00%, 11/01/2028 | 37 | 37 | 2.50%, 10/01/2036 | 163 | 157 | ||||||
2.00%, 01/01/2029 | 13 | 13 | 2.50%, 12/01/2036 | 260 | 249 | ||||||
2.00%, 05/01/2029 | 625 | 611 | 2.50%, 01/01/2043 | 582 | 552 | ||||||
2.00%, 05/01/2030 | 309 | 295 | 2.50%, 07/01/2043 | 64 | 60 | ||||||
2.00%, 01/01/2032 | 196 | 188 | 2.50%, 08/01/2043 | 125 | 119 | ||||||
2.00%, 03/01/2032 | 286 | 273 | 2.50%, 10/01/2043 | 349 | 331 | ||||||
2.00%, 04/01/2032 | 227 | 217 | 2.50%, 05/01/2046 | 79 | 75 | ||||||
2.00%, 11/01/2032 | 22 | 21 | 2.50%, 05/01/2046 | 45 | 42 | ||||||
2.50%, 12/01/2027 | 11 | 11 | 2.50%, 11/01/2046 | 17 | 16 | ||||||
2.50%, 01/01/2028 | 192 | 190 | 2.50%, 12/01/2046 | 154 | 146 | ||||||
2.50%, 02/01/2028 | 45 | 45 | 3.00%, 09/01/2026 | 45 | 45 | ||||||
2.50%, 06/01/2028 | 14 | 14 | 3.00%, 11/01/2026 | 54 | 54 | ||||||
2.50%, 06/01/2028 | 311 | 307 | 3.00%, 11/01/2026 | 155 | 155 | ||||||
2.50%, 07/01/2028 | 214 | 210 | 3.00%, 01/01/2027 | 44 | 44 | ||||||
2.50%, 08/01/2028 | 13 | 12 | 3.00%, 02/01/2027 | 272 | 273 | ||||||
2.50%, 08/01/2028 | 215 | 212 | 3.00%, 02/01/2027 | 40 | 40 | ||||||
2.50%, 08/01/2028 | 117 | 116 | 3.00%, 04/01/2027 | 64 | 64 | ||||||
2.50%, 08/01/2028 | 235 | 231 | 3.00%, 04/01/2027 | 1,276 | 1,280 | ||||||
2.50%, 09/01/2028 | 256 | 253 | 3.00%, 04/01/2027 | 65 | 65 | ||||||
2.50%, 09/01/2028 | 88 | 87 | 3.00%, 07/01/2027 | 182 | 183 | ||||||
2.50%, 10/01/2028 | 304 | 300 | 3.00%, 08/01/2027 | 205 | 205 | ||||||
2.50%, 05/01/2029 | 43 | 42 | 3.00%, 09/01/2027 | 10 | 10 | ||||||
2.50%, 06/01/2029 | 439 | 433 | 3.00%, 10/01/2027 | 171 | 172 | ||||||
2.50%, 07/01/2029 | 167 | 163 | 3.00%, 01/01/2028(j) | 200 | 200 | ||||||
2.50%, 07/01/2029 | 136 | 133 | 3.00%, 08/01/2028 | 33 | 33 | ||||||
2.50%, 07/01/2029 | 254 | 249 | 3.00%, 10/01/2028 | 396 | 396 | ||||||
2.50%, 09/01/2029 | 295 | 288 | 3.00%, 11/01/2028 | 231 | 232 | ||||||
2.50%, 09/01/2029 | 44 | 43 | 3.00%, 12/01/2028 | 35 | 35 | ||||||
2.50%, 12/01/2029 | 62 | 61 | 3.00%, 12/01/2028 | 24 | 24 | ||||||
2.50%, 12/01/2029 | 182 | 179 | 3.00%, 02/01/2029 | 174 | 175 | ||||||
2.50%, 12/01/2029 | 55 | 54 | 3.00%, 03/01/2029 | 160 | 160 | ||||||
2.50%, 01/01/2030 | 231 | 227 | 3.00%, 03/01/2029 | 281 | 281 | ||||||
2.50%, 02/01/2030 | 109 | 107 | 3.00%, 04/01/2029 | 42 | 42 | ||||||
2.50%, 04/01/2030 | 298 | 292 | 3.00%, 04/01/2029 | 224 | 224 | ||||||
2.50%, 04/01/2030 | 15 | 15 | 3.00%, 05/01/2029 | 81 | 81 | ||||||
2.50%, 05/01/2030 | 613 | 600 | 3.00%, 05/01/2029 | 205 | 205 | ||||||
2.50%, 06/01/2030 | 65 | 64 | 3.00%, 05/01/2029 | 48 | 48 | ||||||
2.50%, 06/01/2030 | 376 | 367 | 3.00%, 06/01/2029 | 140 | 140 | ||||||
2.50%, 06/01/2030 | 71 | 69 | 3.00%, 07/01/2029 | 91 | 91 | ||||||
2.50%, 06/01/2030 | 108 | 106 | 3.00%, 07/01/2029 | 10 | 10 | ||||||
2.50%, 08/01/2030 | 151 | 147 | 3.00%, 08/01/2029 | 22 | 22 | ||||||
2.50%, 08/01/2030 | 746 | 730 | 3.00%, 08/01/2029 | 186 | 186 | ||||||
2.50%, 01/01/2031 | 249 | 244 | 3.00%, 08/01/2029 | 191 | 192 | ||||||
2.50%, 01/01/2031 | 271 | 265 | 3.00%, 08/01/2029 | 204 | 204 | ||||||
2.50%, 02/01/2031 | 320 | 313 | 3.00%, 10/01/2029 | 130 | 130 | ||||||
2.50%, 02/01/2031 | 298 | 292 | 3.00%, 10/01/2029 | 94 | 94 |
See accompanying notes.
135
Schedule of Investments Bond Market Index Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal National Mortgage Association (FNMA) (continued) | Federal National Mortgage Association (FNMA) (continued) | ||||||||||
3.00%, 10/01/2029 | $ | 130 | $ | 130 | 3.00%, 06/01/2043 | $ | 1,028 | $ | 1,007 | ||
3.00%, 10/01/2029 | 144 | 144 | 3.00%, 06/01/2043 | 405 | 398 | ||||||
3.00%, 11/01/2029 | 120 | 120 | 3.00%, 06/01/2043 | 29 | 28 | ||||||
3.00%, 01/01/2030 | 633 | 633 | 3.00%, 06/01/2043 | 565 | 555 | ||||||
3.00%, 01/01/2030 | 264 | 264 | 3.00%, 06/01/2043 | 711 | 698 | ||||||
3.00%, 01/01/2030 | 68 | 68 | 3.00%, 06/01/2043 | 530 | 521 | ||||||
3.00%, 01/01/2030 | 582 | 582 | 3.00%, 07/01/2043 | 187 | 183 | ||||||
3.00%, 03/01/2030 | 344 | 344 | 3.00%, 07/01/2043 | 744 | 731 | ||||||
3.00%, 06/01/2030 | 341 | 341 | 3.00%, 07/01/2043 | 302 | 297 | ||||||
3.00%, 06/01/2030 | 370 | 371 | 3.00%, 07/01/2043 | 438 | 430 | ||||||
3.00%, 08/01/2030 | 273 | 273 | 3.00%, 07/01/2043 | 245 | 241 | ||||||
3.00%, 09/01/2030 | 128 | 128 | 3.00%, 07/01/2043 | 44 | 43 | ||||||
3.00%, 09/01/2030 | 638 | 638 | 3.00%, 07/01/2043 | 35 | 35 | ||||||
3.00%, 10/01/2030 | 366 | 366 | 3.00%, 08/01/2043 | 76 | 75 | ||||||
3.00%, 11/01/2030 | 174 | 174 | 3.00%, 08/01/2043 | 126 | 124 | ||||||
3.00%, 11/01/2030 | 57 | 57 | 3.00%, 08/01/2043 | 190 | 187 | ||||||
3.00%, 02/01/2031 | 169 | 169 | 3.00%, 08/01/2043 | 546 | 536 | ||||||
3.00%, 09/01/2031 | 83 | 83 | 3.00%, 08/01/2043 | 199 | 195 | ||||||
3.00%, 04/01/2032 | 40 | 40 | 3.00%, 08/01/2043 | 308 | 303 | ||||||
3.00%, 04/01/2032 | 1,456 | 1,454 | 3.00%, 08/01/2043 | 603 | 593 | ||||||
3.00%, 05/01/2032 | 200 | 199 | 3.00%, 08/01/2043 | 917 | 901 | ||||||
3.00%, 08/01/2032 | 316 | 315 | 3.00%, 09/01/2043 | 16 | 15 | ||||||
3.00%, 10/01/2032 | 347 | 345 | 3.00%, 09/01/2043 | 760 | 746 | ||||||
3.00%, 01/01/2033 | 68 | 68 | 3.00%, 09/01/2043 | 23 | 22 | ||||||
3.00%, 02/01/2033 | 1,353 | 1,351 | 3.00%, 09/01/2043 | 337 | 331 | ||||||
3.00%, 08/01/2033 | 824 | 819 | 3.00%, 09/01/2043 | 15 | 15 | ||||||
3.00%, 05/01/2034 | 174 | 173 | 3.00%, 10/01/2043 | 972 | 955 | ||||||
3.00%, 10/01/2034 | 86 | 85 | 3.00%, 10/01/2043 | 180 | 175 | ||||||
3.00%, 11/01/2034 | 229 | 228 | 3.00%, 11/01/2043 | 192 | 188 | ||||||
3.00%, 02/01/2035 | 211 | 210 | 3.00%, 11/01/2043 | 117 | 115 | ||||||
3.00%, 02/01/2035 | 252 | 250 | 3.00%, 11/01/2043 | 282 | 277 | ||||||
3.00%, 03/01/2035 | 109 | 108 | 3.00%, 11/01/2043 | 108 | 106 | ||||||
3.00%, 04/01/2035 | 116 | 115 | 3.00%, 12/01/2043 | 19 | 18 | ||||||
3.00%, 06/01/2035 | 256 | 254 | 3.00%, 01/01/2044 | 136 | 134 | ||||||
3.00%, 07/01/2035 | 96 | 95 | 3.00%, 01/01/2045 | 26 | 26 | ||||||
3.00%, 11/01/2035 | 147 | 146 | 3.00%, 01/01/2045 | 719 | 705 | ||||||
3.00%, 07/01/2036 | 231 | 228 | 3.00%, 05/01/2045 | 902 | 884 | ||||||
3.00%, 12/01/2036 | 474 | 469 | 3.00%, 06/01/2045 | 66 | 65 | ||||||
3.00%, 12/01/2036 | 329 | 325 | 3.00%, 06/01/2045 | 26 | 26 | ||||||
3.00%, 12/01/2036 | 661 | 654 | 3.00%, 09/01/2045 | 161 | 157 | ||||||
3.00%, 02/01/2037 | 276 | 273 | 3.00%, 09/01/2045 | 168 | 165 | ||||||
3.00%, 02/01/2037 | 43 | 42 | 3.00%, 10/01/2045 | 571 | 559 | ||||||
3.00%, 04/01/2037 | 147 | 145 | 3.00%, 11/01/2045 | 151 | 148 | ||||||
3.00%, 04/01/2037 | 171 | 169 | 3.00%, 11/01/2045 | 334 | 326 | ||||||
3.00%, 07/01/2037 | 108 | 107 | 3.00%, 12/01/2045 | 768 | 750 | ||||||
3.00%, 08/01/2037 | 178 | 176 | 3.00%, 12/01/2045 | 53 | 52 | ||||||
3.00%, 09/01/2037 | 447 | 442 | 3.00%, 12/01/2045 | 53 | 52 | ||||||
3.00%, 04/01/2042 | 235 | 231 | 3.00%, 12/01/2045 | 96 | 94 | ||||||
3.00%, 09/01/2042 | 125 | 123 | 3.00%, 01/01/2046 | 500 | 488 | ||||||
3.00%, 11/01/2042 | 819 | 805 | 3.00%, 01/01/2046 | 25 | 24 | ||||||
3.00%, 12/01/2042 | 124 | 122 | 3.00%, 02/01/2046 | 927 | 904 | ||||||
3.00%, 02/01/2043 | 535 | 526 | 3.00%, 02/01/2046 | 278 | 271 | ||||||
3.00%, 02/01/2043 | 878 | 863 | 3.00%, 02/01/2046 | 548 | 534 | ||||||
3.00%, 02/01/2043 | 522 | 513 | 3.00%, 02/01/2046 | 30 | 29 | ||||||
3.00%, 04/01/2043 | 1,188 | 1,168 | 3.00%, 03/01/2046 | 72 | 70 | ||||||
3.00%, 04/01/2043 | 414 | 407 | 3.00%, 04/01/2046 | 135 | 132 | ||||||
3.00%, 04/01/2043 | 315 | 309 | 3.00%, 04/01/2046 | 871 | 849 | ||||||
3.00%, 04/01/2043 | 289 | 284 | 3.00%, 05/01/2046 | 362 | 353 | ||||||
3.00%, 04/01/2043 | 536 | 527 | 3.00%, 05/01/2046 | 503 | 491 | ||||||
3.00%, 04/01/2043 | 425 | 417 | 3.00%, 05/01/2046 | 129 | 126 | ||||||
3.00%, 04/01/2043 | 443 | 436 | 3.00%, 05/01/2046 | 85 | 83 | ||||||
3.00%, 04/01/2043 | 718 | 706 | 3.00%, 06/01/2046 | 185 | 180 | ||||||
3.00%, 04/01/2043 | 536 | 527 | 3.00%, 07/01/2046 | 74 | 72 | ||||||
3.00%, 05/01/2043 | 598 | 588 | 3.00%, 07/01/2046 | 912 | 890 | ||||||
3.00%, 05/01/2043 | 325 | 320 | 3.00%, 08/01/2046 | 257 | 251 | ||||||
3.00%, 05/01/2043 | 63 | 62 | 3.00%, 08/01/2046 | 922 | 899 | ||||||
3.00%, 05/01/2043 | 397 | 391 | 3.00%, 09/01/2046 | 439 | 428 | ||||||
3.00%, 06/01/2043 | 20 | 19 | 3.00%, 09/01/2046 | 1,160 | 1,131 |
See accompanying notes.
136
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal National Mortgage Association (FNMA) (continued) | Federal National Mortgage Association (FNMA) (continued) | ||||||||||
3.00%, 09/01/2046 | $ | 1,169 | $ | 1,140 | 3.50%, 12/01/2028 | $ | 130 | $ | 132 | ||
3.00%, 09/01/2046 | 298 | 290 | 3.50%, 01/01/2029 | 121 | 123 | ||||||
3.00%, 10/01/2046 | 201 | 196 | 3.50%, 03/01/2029 | 218 | 221 | ||||||
3.00%, 10/01/2046 | 1,637 | 1,596 | 3.50%, 03/01/2029 | 14 | 14 | ||||||
3.00%, 11/01/2046 | 850 | 829 | 3.50%, 12/01/2029 | 55 | 56 | ||||||
3.00%, 11/01/2046 | 872 | 850 | 3.50%, 12/01/2029 | 101 | 102 | ||||||
3.00%, 11/01/2046 | 137 | 134 | 3.50%, 04/01/2030 | 113 | 114 | ||||||
3.00%, 11/01/2046 | 929 | 905 | 3.50%, 11/01/2030 | 32 | 33 | ||||||
3.00%, 11/01/2046 | 23 | 22 | 3.50%, 01/01/2031 | 9 | 10 | ||||||
3.00%, 11/01/2046 | 1,170 | 1,141 | 3.50%, 01/01/2031(j) | 250 | 253 | ||||||
3.00%, 11/01/2046 | 1,208 | 1,178 | 3.50%, 02/01/2031 | 89 | 90 | ||||||
3.00%, 11/01/2046 | 201 | 196 | 3.50%, 04/01/2031 | 19 | 20 | ||||||
3.00%, 12/01/2046 | 2,402 | 2,342 | 3.50%, 02/01/2032 | 130 | 131 | ||||||
3.00%, 12/01/2046 | 36 | 35 | 3.50%, 04/01/2032 | 83 | 84 | ||||||
3.00%, 12/01/2046 | 1,224 | 1,194 | 3.50%, 05/01/2032 | 179 | 183 | ||||||
3.00%, 01/01/2047 | 439 | 428 | 3.50%, 06/01/2032 | 318 | 324 | ||||||
3.00%, 01/01/2047 | 1,307 | 1,275 | 3.50%, 07/01/2032 | 115 | 117 | ||||||
3.00%, 01/01/2047 | 25 | 24 | 3.50%, 09/01/2032 | 179 | 182 | ||||||
3.00%, 02/01/2047 | 1,316 | 1,283 | 3.50%, 09/01/2033 | 87 | 88 | ||||||
3.00%, 02/01/2047 | 1,047 | 1,021 | 3.50%, 09/01/2033 | 300 | 304 | ||||||
3.00%, 02/01/2047 | 229 | 223 | 3.50%, 10/01/2033 | 178 | 182 | ||||||
3.00%, 04/01/2047 | 305 | 298 | 3.50%, 10/01/2033 | 672 | 680 | ||||||
3.00%, 05/01/2047 | 448 | 437 | 3.50%, 11/01/2033 | 181 | 185 | ||||||
3.00%, 09/01/2047 | 149 | 146 | 3.50%, 01/01/2034 | 129 | 132 | ||||||
3.00%, 11/01/2047 | 30 | 29 | 3.50%, 06/01/2034 | 232 | 237 | ||||||
3.00%, 11/01/2047 | 982 | 957 | 3.50%, 08/01/2034 | 60 | 61 | ||||||
3.00%, 12/01/2047 | 25 | 24 | 3.50%, 11/01/2034 | 144 | 147 | ||||||
3.00%, 12/01/2047 | 25 | 24 | 3.50%, 12/01/2035 | 332 | 336 | ||||||
3.00%, 02/01/2048 | 29 | 29 | 3.50%, 07/01/2036 | 362 | 367 | ||||||
3.00%, 03/01/2048 | 49 | 48 | 3.50%, 02/01/2037 | 242 | 244 | ||||||
3.00%, 04/01/2048 | 489 | 477 | 3.50%, 03/01/2037 | 303 | 306 | ||||||
3.00%, 05/01/2048 | 25 | 24 | 3.50%, 05/01/2037 | 63 | 64 | ||||||
3.00%, 10/01/2048 | 125 | 122 | 3.50%, 07/01/2037 | 150 | 152 | ||||||
3.00%, 11/01/2048 | 100 | 98 | 3.50%, 10/01/2037 | 176 | 178 | ||||||
3.50%, 01/01/2020 | 10 | 10 | 3.50%, 11/01/2037 | 360 | 365 | ||||||
3.50%, 03/01/2023 | 12 | 12 | 3.50%, 01/01/2038 | 438 | 443 | ||||||
3.50%, 08/01/2025 | 15 | 15 | 3.50%, 10/01/2040 | 8 | 8 | ||||||
3.50%, 10/01/2025 | 287 | 291 | 3.50%, 11/01/2040 | 34 | 35 | ||||||
3.50%, 10/01/2025 | 224 | 227 | 3.50%, 12/01/2040 | 39 | 40 | ||||||
3.50%, 10/01/2025 | 10 | 10 | 3.50%, 01/01/2041 | 1,225 | 1,235 | ||||||
3.50%, 11/01/2025 | 152 | 154 | 3.50%, 01/01/2041 | 26 | 26 | ||||||
3.50%, 11/01/2025 | 346 | 350 | 3.50%, 02/01/2041 | 18 | 18 | ||||||
3.50%, 11/01/2025 | 12 | 12 | 3.50%, 02/01/2041 | 15 | 15 | ||||||
3.50%, 12/01/2025 | 23 | 23 | 3.50%, 03/01/2041 | 1,659 | 1,672 | ||||||
3.50%, 12/01/2025 | 12 | 12 | 3.50%, 03/01/2041 | 63 | 64 | ||||||
3.50%, 12/01/2025 | 72 | 73 | 3.50%, 10/01/2041 | 162 | 163 | ||||||
3.50%, 01/01/2026 | 42 | 43 | 3.50%, 12/01/2041 | 164 | 166 | ||||||
3.50%, 01/01/2026 | 15 | 16 | 3.50%, 12/01/2041 | 501 | 505 | ||||||
3.50%, 01/01/2026 | 345 | 349 | 3.50%, 12/01/2041 | 457 | 460 | ||||||
3.50%, 02/01/2026 | 114 | 115 | 3.50%, 01/01/2042 | 84 | 84 | ||||||
3.50%, 03/01/2026 | 110 | 112 | 3.50%, 01/01/2042 | 94 | 94 | ||||||
3.50%, 03/01/2026 | 304 | 307 | 3.50%, 01/01/2042 | 170 | 171 | ||||||
3.50%, 03/01/2026 | 4 | 5 | 3.50%, 02/01/2042 | 42 | 43 | ||||||
3.50%, 05/01/2026 | 7 | 7 | 3.50%, 02/01/2042 | 18 | 18 | ||||||
3.50%, 06/01/2026 | 37 | 38 | 3.50%, 03/01/2042 | 96 | 97 | ||||||
3.50%, 06/01/2026 | 27 | 27 | 3.50%, 03/01/2042 | 54 | 55 | ||||||
3.50%, 07/01/2026 | 8 | 9 | 3.50%, 03/01/2042 | 363 | 366 | ||||||
3.50%, 08/01/2026 | 52 | 52 | 3.50%, 03/01/2042 | 42 | 42 | ||||||
3.50%, 08/01/2026 | 5 | 5 | 3.50%, 03/01/2042 | 114 | 115 | ||||||
3.50%, 09/01/2026 | 213 | 216 | 3.50%, 03/01/2042 | 174 | 175 | ||||||
3.50%, 10/01/2026 | 13 | 14 | 3.50%, 04/01/2042 | 99 | 99 | ||||||
3.50%, 12/01/2026 | 60 | 60 | 3.50%, 04/01/2042 | 66 | 66 | ||||||
3.50%, 12/01/2026 | 251 | 254 | 3.50%, 04/01/2042 | 80 | 80 | ||||||
3.50%, 01/01/2027 | 42 | 43 | 3.50%, 04/01/2042 | 77 | 78 | ||||||
3.50%, 01/01/2027 | 76 | 77 | 3.50%, 05/01/2042 | 120 | 121 | ||||||
3.50%, 02/01/2027 | 157 | 159 | 3.50%, 05/01/2042 | 816 | 822 | ||||||
3.50%, 11/01/2028 | 233 | 237 | 3.50%, 07/01/2042 | 210 | 212 | ||||||
3.50%, 12/01/2028 | 12 | 12 | 3.50%, 07/01/2042 | 119 | 120 |
See accompanying notes.
137
Schedule of Investments Bond Market Index Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal National Mortgage Association (FNMA) (continued) | Federal National Mortgage Association (FNMA) (continued) | ||||||||||
3.50%, 08/01/2042 | $ | 153 | $ | 154 | 3.50%, 07/01/2046 | $ | 791 | $ | 793 | ||
3.50%, 09/01/2042 | 48 | 49 | 3.50%, 09/01/2046 | 757 | 758 | ||||||
3.50%, 09/01/2042 | 120 | 121 | 3.50%, 11/01/2046 | 1,154 | 1,158 | ||||||
3.50%, 10/01/2042 | 409 | 412 | 3.50%, 12/01/2046 | 886 | 889 | ||||||
3.50%, 10/01/2042 | 884 | 891 | 3.50%, 01/01/2047 | 1,567 | 1,570 | ||||||
3.50%, 10/01/2042 | 13 | 13 | 3.50%, 02/01/2047 | 1,353 | 1,356 | ||||||
3.50%, 01/01/2043(j) | 14,950 | 14,947 | 3.50%, 07/01/2047 | 30 | 30 | ||||||
3.50%, 02/01/2043(j) | 800 | 800 | 3.50%, 01/01/2048 | 1,612 | 1,612 | ||||||
3.50%, 04/01/2043 | 211 | 213 | 3.50%, 02/01/2048 | 239 | 239 | ||||||
3.50%, 04/01/2043 | 96 | 96 | 3.50%, 03/01/2048 | 30 | 30 | ||||||
3.50%, 05/01/2043 | 267 | 269 | 3.50%, 03/01/2048 | 1,187 | 1,187 | ||||||
3.50%, 05/01/2043 | 546 | 550 | 3.50%, 04/01/2048 | 737 | 737 | ||||||
3.50%, 05/01/2043 | 700 | 706 | 3.50%, 07/01/2048 | 959 | 959 | ||||||
3.50%, 06/01/2043 | 561 | 565 | 3.50%, 10/01/2048 | 499 | 499 | ||||||
3.50%, 06/01/2043 | 311 | 313 | 3.50%, 10/01/2048 | 249 | 249 | ||||||
3.50%, 07/01/2043 | 295 | 297 | 3.50%, 10/01/2048 | 700 | 700 | ||||||
3.50%, 07/01/2043 | 885 | 891 | 3.50%, 11/01/2048 | 1,095 | 1,095 | ||||||
3.50%, 08/01/2043 | 679 | 684 | 3.50%, 01/01/2049 | 100 | 100 | ||||||
3.50%, 08/01/2043 | 162 | 163 | 4.00%, 05/01/2019 | 4 | 4 | ||||||
3.50%, 09/01/2043 | 564 | 568 | 4.00%, 03/01/2024 | 37 | 38 | ||||||
3.50%, 09/01/2043 | 207 | 209 | 4.00%, 05/01/2024 | 9 | 9 | ||||||
3.50%, 12/01/2043 | 220 | 221 | 4.00%, 05/01/2024 | 10 | 10 | ||||||
3.50%, 01/01/2044 | 45 | 46 | 4.00%, 06/01/2024 | 14 | 15 | ||||||
3.50%, 02/01/2044 | 435 | 437 | 4.00%, 07/01/2024 | 15 | 16 | ||||||
3.50%, 02/01/2044 | 222 | 224 | 4.00%, 09/01/2024 | 6 | 7 | ||||||
3.50%, 04/01/2044 | 48 | 48 | 4.00%, 10/01/2024 | 52 | 53 | ||||||
3.50%, 07/01/2044 | 1,265 | 1,275 | 4.00%, 11/01/2024 | 4 | 4 | ||||||
3.50%, 10/01/2044 | 70 | 70 | 4.00%, 01/01/2025 | 13 | 14 | ||||||
3.50%, 10/01/2044 | 679 | 681 | 4.00%, 03/01/2025 | 14 | 14 | ||||||
3.50%, 10/01/2044 | 257 | 258 | 4.00%, 04/01/2025 | 77 | 79 | ||||||
3.50%, 10/01/2044 | 33 | 33 | 4.00%, 04/01/2025 | 4 | 4 | ||||||
3.50%, 11/01/2044 | 692 | 694 | 4.00%, 05/01/2025 | 15 | 15 | ||||||
3.50%, 12/01/2044 | 594 | 596 | 4.00%, 05/01/2025 | 1 | 1 | ||||||
3.50%, 12/01/2044 | 116 | 117 | 4.00%, 05/01/2025 | 11 | 12 | ||||||
3.50%, 12/01/2044 | 647 | 650 | 4.00%, 05/01/2025 | 14 | 14 | ||||||
3.50%, 01/01/2045 | 767 | 770 | 4.00%, 05/01/2025 | 4 | 4 | ||||||
3.50%, 02/01/2045 | 100 | 101 | 4.00%, 06/01/2025 | 4 | 4 | ||||||
3.50%, 04/01/2045 | 725 | 728 | 4.00%, 06/01/2025 | 14 | 15 | ||||||
3.50%, 05/01/2045 | 261 | 262 | 4.00%, 07/01/2025 | 22 | 23 | ||||||
3.50%, 05/01/2045 | 33 | 33 | 4.00%, 08/01/2025 | 9 | 9 | ||||||
3.50%, 07/01/2045 | 667 | 670 | 4.00%, 09/01/2025 | 14 | 14 | ||||||
3.50%, 07/01/2045 | 137 | 138 | 4.00%, 11/01/2025 | 19 | 19 | ||||||
3.50%, 08/01/2045 | 782 | 785 | 4.00%, 12/01/2025 | 25 | 25 | ||||||
3.50%, 08/01/2045 | 832 | 834 | 4.00%, 01/01/2026 | 40 | 41 | ||||||
3.50%, 09/01/2045 | 855 | 858 | 4.00%, 01/01/2026 | 28 | 28 | ||||||
3.50%, 09/01/2045 | 430 | 431 | 4.00%, 01/01/2026 | 16 | 17 | ||||||
3.50%, 09/01/2045 | 768 | 770 | 4.00%, 03/01/2026 | 62 | 64 | ||||||
3.50%, 10/01/2045 | 20 | 20 | 4.00%, 03/01/2026 | 2 | 3 | ||||||
3.50%, 11/01/2045 | 19 | 19 | 4.00%, 03/01/2026 | 31 | 32 | ||||||
3.50%, 11/01/2045 | 657 | 659 | 4.00%, 05/01/2026 | 14 | 14 | ||||||
3.50%, 11/01/2045 | 811 | 814 | 4.00%, 06/01/2026 | 17 | 17 | ||||||
3.50%, 11/01/2045 | 340 | 341 | 4.00%, 07/01/2026 | 17 | 17 | ||||||
3.50%, 12/01/2045 | 759 | 761 | 4.00%, 08/01/2026 | 67 | 68 | ||||||
3.50%, 12/01/2045 | 1,178 | 1,182 | 4.00%, 09/01/2026 | 37 | 38 | ||||||
3.50%, 12/01/2045 | 674 | 676 | 4.00%, 04/01/2029 | 5 | 5 | ||||||
3.50%, 01/01/2046 | 989 | 992 | 4.00%, 10/01/2030 | 15 | 15 | ||||||
3.50%, 01/01/2046 | 1,409 | 1,414 | 4.00%, 12/01/2030 | 128 | 132 | ||||||
3.50%, 02/01/2046 | 595 | 597 | 4.00%, 01/01/2031(j) | 1,000 | 1,024 | ||||||
3.50%, 02/01/2046 | 82 | 83 | 4.00%, 02/01/2031 | 43 | 44 | ||||||
3.50%, 02/01/2046 | 302 | 303 | 4.00%, 07/01/2031 | 27 | 28 | ||||||
3.50%, 03/01/2046 | 926 | 929 | 4.00%, 10/01/2031 | 110 | 113 | ||||||
3.50%, 03/01/2046 | 680 | 681 | 4.00%, 11/01/2031 | 26 | 27 | ||||||
3.50%, 03/01/2046 | 633 | 635 | 4.00%, 12/01/2031 | 22 | 22 | ||||||
3.50%, 03/01/2046 | 876 | 877 | 4.00%, 01/01/2032 | 32 | 33 | ||||||
3.50%, 04/01/2046 | 59 | 60 | 4.00%, 09/01/2033 | 234 | 243 | ||||||
3.50%, 05/01/2046 | 1,088 | 1,091 | 4.00%, 01/01/2036 | 240 | 248 | ||||||
3.50%, 06/01/2046 | 1,084 | 1,087 | 4.00%, 02/01/2036 | 155 | 160 | ||||||
3.50%, 06/01/2046 | 172 | 173 | 4.00%, 06/01/2036 | 136 | 140 |
See accompanying notes.
138
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal National Mortgage Association (FNMA) (continued) | Federal National Mortgage Association (FNMA) (continued) | ||||||||||
4.00%, 01/01/2037 | $ | 184 | $ | 190 | 4.00%, 02/01/2044 | $ | 39 | $ | 40 | ||
4.00%, 02/01/2037 | 481 | 496 | 4.00%, 04/01/2044 | 526 | 537 | ||||||
4.00%, 07/01/2038 | 553 | 569 | 4.00%, 06/01/2044 | 76 | 77 | ||||||
4.00%, 03/01/2039 | 7 | 7 | 4.00%, 06/01/2044 | 452 | 464 | ||||||
4.00%, 08/01/2039 | 5 | 5 | 4.00%, 06/01/2044 | 293 | 299 | ||||||
4.00%, 08/01/2039 | 26 | 27 | 4.00%, 07/01/2044 | 423 | 432 | ||||||
4.00%, 10/01/2039 | 257 | 262 | 4.00%, 07/01/2044 | 577 | 590 | ||||||
4.00%, 10/01/2039 | 8 | 8 | 4.00%, 09/01/2044 | 211 | 215 | ||||||
4.00%, 11/01/2039 | 34 | 35 | 4.00%, 10/01/2044 | 160 | 164 | ||||||
4.00%, 12/01/2039 | 9 | 9 | 4.00%, 10/01/2044 | 91 | 93 | ||||||
4.00%, 02/01/2040 | 23 | 24 | 4.00%, 10/01/2044 | 783 | 800 | ||||||
4.00%, 05/01/2040 | 6 | 6 | 4.00%, 10/01/2044 | 300 | 306 | ||||||
4.00%, 05/01/2040 | 22 | 22 | 4.00%, 10/01/2044 | 300 | 306 | ||||||
4.00%, 08/01/2040 | 21 | 22 | 4.00%, 11/01/2044 | 76 | 78 | ||||||
4.00%, 10/01/2040 | 11 | 11 | 4.00%, 11/01/2044 | 305 | 312 | ||||||
4.00%, 10/01/2040 | 17 | 17 | 4.00%, 11/01/2044 | 86 | 87 | ||||||
4.00%, 10/01/2040 | 37 | 38 | 4.00%, 12/01/2044 | 105 | 107 | ||||||
4.00%, 10/01/2040 | 34 | 35 | 4.00%, 12/01/2044 | 68 | 69 | ||||||
4.00%, 10/01/2040 | 58 | 60 | 4.00%, 12/01/2044 | 396 | 404 | ||||||
4.00%, 10/01/2040 | 19 | 20 | 4.00%, 12/01/2044 | 331 | 338 | ||||||
4.00%, 10/01/2040 | 10 | 10 | 4.00%, 12/01/2044 | 63 | 65 | ||||||
4.00%, 11/01/2040 | 14 | 14 | 4.00%, 01/01/2045 | 187 | 191 | ||||||
4.00%, 12/01/2040 | 36 | 37 | 4.00%, 01/01/2045 | 42 | 43 | ||||||
4.00%, 12/01/2040 | 62 | 63 | 4.00%, 01/01/2045 | 12 | 12 | ||||||
4.00%, 12/01/2040 | 46 | 48 | 4.00%, 01/01/2045 | 29 | 30 | ||||||
4.00%, 12/01/2040 | 13 | 13 | 4.00%, 02/01/2045 | 256 | 261 | ||||||
4.00%, 12/01/2040 | 64 | 65 | 4.00%, 02/01/2045 | 528 | 539 | ||||||
4.00%, 01/01/2041 | 418 | 430 | 4.00%, 02/01/2045 | 198 | 202 | ||||||
4.00%, 01/01/2041 | 74 | 76 | 4.00%, 03/01/2045 | 20 | 20 | ||||||
4.00%, 01/01/2041 | 47 | 48 | 4.00%, 07/01/2045 | 422 | 430 | ||||||
4.00%, 01/01/2041 | 30 | 31 | 4.00%, 07/01/2045 | 329 | 336 | ||||||
4.00%, 02/01/2041 | 38 | 39 | 4.00%, 07/01/2045 | 29 | 29 | ||||||
4.00%, 02/01/2041 | 120 | 123 | 4.00%, 08/01/2045 | 12 | 13 | ||||||
4.00%, 02/01/2041 | 47 | 48 | 4.00%, 08/01/2045 | 46 | 47 | ||||||
4.00%, 02/01/2041 | 65 | 66 | 4.00%, 09/01/2045 | 543 | 554 | ||||||
4.00%, 02/01/2041 | 70 | 72 | 4.00%, 10/01/2045 | 528 | 539 | ||||||
4.00%, 02/01/2041 | 339 | 348 | 4.00%, 10/01/2045 | 133 | 136 | ||||||
4.00%, 03/01/2041 | 43 | 45 | 4.00%, 11/01/2045 | 217 | 222 | ||||||
4.00%, 03/01/2041 | 68 | 70 | 4.00%, 11/01/2045 | 674 | 688 | ||||||
4.00%, 03/01/2041 | 359 | 369 | 4.00%, 11/01/2045 | 111 | 113 | ||||||
4.00%, 04/01/2041 | 5 | 5 | 4.00%, 11/01/2045 | 20 | 20 | ||||||
4.00%, 09/01/2041 | 156 | 160 | 4.00%, 12/01/2045 | 255 | 260 | ||||||
4.00%, 09/01/2041 | 17 | 18 | 4.00%, 12/01/2045 | 160 | 164 | ||||||
4.00%, 09/01/2041 | 101 | 104 | 4.00%, 01/01/2046 | 496 | 506 | ||||||
4.00%, 10/01/2041 | 10 | 10 | 4.00%, 02/01/2046 | 97 | 99 | ||||||
4.00%, 10/01/2041 | 56 | 57 | 4.00%, 02/01/2046 | 153 | 156 | ||||||
4.00%, 10/01/2041 | 125 | 128 | 4.00%, 02/01/2046 | 564 | 576 | ||||||
4.00%, 11/01/2041 | 100 | 103 | 4.00%, 03/01/2046 | 184 | 187 | ||||||
4.00%, 11/01/2041 | 66 | 68 | 4.00%, 03/01/2046 | 104 | 106 | ||||||
4.00%, 11/01/2041 | 8 | 8 | 4.00%, 03/01/2046 | 245 | 250 | ||||||
4.00%, 11/01/2041 | 46 | 47 | 4.00%, 03/01/2046 | 229 | 234 | ||||||
4.00%, 11/01/2041 | 21 | 21 | 4.00%, 04/01/2046 | 42 | 43 | ||||||
4.00%, 12/01/2041 | 60 | 61 | 4.00%, 04/01/2046 | 473 | 483 | ||||||
4.00%, 12/01/2041 | 62 | 64 | 4.00%, 07/01/2046 | 796 | 812 | ||||||
4.00%, 12/01/2041 | 62 | 63 | 4.00%, 08/01/2046 | 31 | 32 | ||||||
4.00%, 12/01/2041 | 91 | 93 | 4.00%, 04/01/2047 | 1,362 | 1,389 | ||||||
4.00%, 12/01/2041 | 166 | 170 | 4.00%, 06/01/2047 | 1,358 | 1,385 | ||||||
4.00%, 01/01/2042 | 64 | 66 | 4.00%, 08/01/2047 | 1,452 | 1,480 | ||||||
4.00%, 01/01/2042 | 20 | 21 | 4.00%, 08/01/2047 | 799 | 815 | ||||||
4.00%, 01/01/2042 | 73 | 75 | 4.00%, 08/01/2047 | 184 | 188 | ||||||
4.00%, 02/01/2042 | 47 | 48 | 4.00%, 08/01/2047 | 1,262 | 1,287 | ||||||
4.00%, 05/01/2042 | 454 | 467 | 4.00%, 09/01/2047 | 1,374 | 1,401 | ||||||
4.00%, 02/01/2043 | 160 | 164 | 4.00%, 01/01/2048(j) | 24,850 | 25,331 | ||||||
4.00%, 08/01/2043 | 103 | 105 | 4.00%, 02/01/2048 | 971 | 991 | ||||||
4.00%, 09/01/2043 | 83 | 85 | 4.00%, 02/01/2048(j) | 2,400 | 2,445 | ||||||
4.00%, 09/01/2043 | 21 | 21 | 4.00%, 03/01/2048 | 473 | 483 | ||||||
4.00%, 12/01/2043 | 168 | 172 | 4.00%, 06/01/2048 | 968 | 987 | ||||||
4.00%, 01/01/2044 | 477 | 490 | 4.00%, 07/01/2048 | 791 | 807 |
See accompanying notes.
139
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal National Mortgage Association (FNMA) (continued) | Federal National Mortgage Association (FNMA) (continued) | ||||||||||
4.00%, 08/01/2048 | $ | 539 | $ | 550 | 4.50%, 06/01/2040 | $ | 20 | $ | 21 | ||
4.00%, 08/01/2048 | 459 | 468 | 4.50%, 07/01/2040 | 25 | 26 | ||||||
4.50%, 03/01/2019 | 2 | 2 | 4.50%, 07/01/2040 | 1 | 1 | ||||||
4.50%, 05/01/2019 | 1 | 1 | 4.50%, 08/01/2040 | 116 | 121 | ||||||
4.50%, 01/01/2020 | 3 | 3 | 4.50%, 08/01/2040 | 39 | 41 | ||||||
4.50%, 05/01/2022 | 3 | 3 | 4.50%, 08/01/2040 | 61 | 64 | ||||||
4.50%, 02/01/2024 | 2 | 2 | 4.50%, 08/01/2040 | 222 | 232 | ||||||
4.50%, 04/01/2024 | 1 | 1 | 4.50%, 09/01/2040 | 17 | 18 | ||||||
4.50%, 04/01/2024 | 1 | 1 | 4.50%, 09/01/2040 | 21 | 22 | ||||||
4.50%, 11/01/2024 | 6 | 6 | 4.50%, 09/01/2040 | 14 | 14 | ||||||
4.50%, 12/01/2024 | 10 | 11 | 4.50%, 10/01/2040 | 89 | 93 | ||||||
4.50%, 12/01/2024 | 16 | 16 | 4.50%, 12/01/2040 | 200 | 210 | ||||||
4.50%, 02/01/2025 | 21 | 22 | 4.50%, 12/01/2040 | 15 | 16 | ||||||
4.50%, 02/01/2025 | 21 | 21 | 4.50%, 03/01/2041 | 35 | 37 | ||||||
4.50%, 04/01/2025 | 2 | 2 | 4.50%, 03/01/2041 | 119 | 125 | ||||||
4.50%, 05/01/2025 | 17 | 18 | 4.50%, 03/01/2041 | 26 | 27 | ||||||
4.50%, 04/01/2026 | 23 | 24 | 4.50%, 03/01/2041 | 36 | 38 | ||||||
4.50%, 07/01/2029 | 2 | 2 | 4.50%, 04/01/2041 | 5 | 5 | ||||||
4.50%, 02/01/2030 | 12 | 13 | 4.50%, 04/01/2041 | 30 | 32 | ||||||
4.50%, 04/01/2030 | 4 | 5 | 4.50%, 05/01/2041 | 41 | 43 | ||||||
4.50%, 08/01/2030 | 90 | 94 | 4.50%, 05/01/2041 | 111 | 117 | ||||||
4.50%, 09/01/2030 | 71 | 75 | 4.50%, 05/01/2041 | 75 | 79 | ||||||
4.50%, 01/01/2031 | 15 | 16 | 4.50%, 06/01/2041 | 78 | 81 | ||||||
4.50%, 04/01/2031 | 8 | 9 | 4.50%, 06/01/2041 | 23 | 24 | ||||||
4.50%, 05/01/2031 | 13 | 14 | 4.50%, 06/01/2041 | 33 | 35 | ||||||
4.50%, 07/01/2031 | 55 | 57 | 4.50%, 06/01/2041 | 93 | 97 | ||||||
4.50%, 08/01/2031 | 30 | 31 | 4.50%, 06/01/2041 | 149 | 156 | ||||||
4.50%, 08/01/2033 | 16 | 17 | 4.50%, 07/01/2041 | 37 | 39 | ||||||
4.50%, 08/01/2033 | 1 | 1 | 4.50%, 07/01/2041 | 46 | 48 | ||||||
4.50%, 11/01/2033 | 37 | 38 | 4.50%, 07/01/2041 | 30 | 32 | ||||||
4.50%, 02/01/2035 | 121 | 126 | 4.50%, 08/01/2041 | 46 | 49 | ||||||
4.50%, 12/01/2035 | 90 | 94 | 4.50%, 09/01/2041 | 234 | 244 | ||||||
4.50%, 01/01/2036 | 1 | 1 | 4.50%, 09/01/2041 | 47 | 49 | ||||||
4.50%, 03/01/2036 | 5 | 5 | 4.50%, 09/01/2041 | 58 | 61 | ||||||
4.50%, 04/01/2038 | 26 | 27 | 4.50%, 10/01/2041 | 48 | 50 | ||||||
4.50%, 06/01/2038 | 21 | 22 | 4.50%, 11/01/2041 | 48 | 50 | ||||||
4.50%, 01/01/2039 | 3 | 3 | 4.50%, 11/01/2041 | 44 | 46 | ||||||
4.50%, 02/01/2039 | 10 | 11 | 4.50%, 11/01/2041 | 60 | 62 | ||||||
4.50%, 04/01/2039 | 8 | 8 | 4.50%, 11/01/2041 | 59 | 61 | ||||||
4.50%, 04/01/2039 | 39 | 40 | 4.50%, 12/01/2041 | 55 | 57 | ||||||
4.50%, 04/01/2039 | 50 | 52 | 4.50%, 01/01/2042(j) | 2,200 | 2,278 | ||||||
4.50%, 06/01/2039 | 19 | 20 | 4.50%, 04/01/2042 | 21 | 22 | ||||||
4.50%, 06/01/2039 | 66 | 69 | 4.50%, 09/01/2042 | 92 | 96 | ||||||
4.50%, 06/01/2039 | 36 | 38 | 4.50%, 02/01/2043(j) | 1,000 | 1,035 | ||||||
4.50%, 06/01/2039 | 11 | 12 | 4.50%, 09/01/2043 | 285 | 296 | ||||||
4.50%, 07/01/2039 | 50 | 52 | 4.50%, 09/01/2043 | 139 | 144 | ||||||
4.50%, 07/01/2039 | 34 | 35 | 4.50%, 09/01/2043 | 339 | 353 | ||||||
4.50%, 07/01/2039 | 22 | 23 | 4.50%, 10/01/2043 | 334 | 348 | ||||||
4.50%, 08/01/2039 | 25 | 27 | 4.50%, 11/01/2043 | 13 | 13 | ||||||
4.50%, 09/01/2039 | 21 | 22 | 4.50%, 12/01/2043 | 128 | 134 | ||||||
4.50%, 10/01/2039 | 63 | 66 | 4.50%, 12/01/2043 | 17 | 18 | ||||||
4.50%, 10/01/2039 | 14 | 14 | 4.50%, 01/01/2044 | 555 | 578 | ||||||
4.50%, 10/01/2039 | 39 | 40 | 4.50%, 01/01/2044 | 628 | 654 | ||||||
4.50%, 12/01/2039 | 83 | 87 | 4.50%, 02/01/2044 | 301 | 313 | ||||||
4.50%, 12/01/2039 | 51 | 53 | 4.50%, 03/01/2044 | 262 | 272 | ||||||
4.50%, 12/01/2039 | 13 | 14 | 4.50%, 03/01/2044 | 164 | 171 | ||||||
4.50%, 12/01/2039 | 16 | 17 | 4.50%, 04/01/2044 | 101 | 105 | ||||||
4.50%, 12/01/2039 | 39 | 41 | 4.50%, 04/01/2044 | 38 | 39 | ||||||
4.50%, 01/01/2040 | 83 | 87 | 4.50%, 05/01/2044 | 138 | 144 | ||||||
4.50%, 01/01/2040 | 72 | 76 | 4.50%, 05/01/2044 | 211 | 219 | ||||||
4.50%, 02/01/2040 | 29 | 30 | 4.50%, 05/01/2044 | 214 | 223 | ||||||
4.50%, 02/01/2040 | 49 | 51 | 4.50%, 05/01/2044 | 706 | 736 | ||||||
4.50%, 03/01/2040 | 31 | 33 | 4.50%, 05/01/2044 | 77 | 80 | ||||||
4.50%, 04/01/2040 | 42 | 44 | 4.50%, 06/01/2044 | 183 | 190 | ||||||
4.50%, 05/01/2040 | 28 | 30 | 4.50%, 06/01/2044 | 369 | 384 | ||||||
4.50%, 05/01/2040 | 70 | 74 | 4.50%, 06/01/2044 | 169 | 176 | ||||||
4.50%, 05/01/2040 | 116 | 121 | 4.50%, 06/01/2044 | 411 | 428 | ||||||
4.50%, 05/01/2040 | 33 | 34 | 4.50%, 06/01/2044 | 243 | 253 |
See accompanying notes.
140
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal National Mortgage Association (FNMA) (continued) | Federal National Mortgage Association (FNMA) (continued) | ||||||||||
4.50%, 07/01/2044 | $ | 151 | $ | 157 | 5.00%, 01/01/2036 | $ | 28 | $ | 30 | ||
4.50%, 07/01/2044 | 6 | 7 | 5.00%, 03/01/2036 | 18 | 20 | ||||||
4.50%, 07/01/2044 | 272 | 282 | 5.00%, 03/01/2036 | 29 | 31 | ||||||
4.50%, 08/01/2044 | 294 | 306 | 5.00%, 04/01/2036 | 1 | 1 | ||||||
4.50%, 08/01/2044 | 264 | 275 | 5.00%, 06/01/2036 | 66 | 70 | ||||||
4.50%, 08/01/2044 | 38 | 39 | 5.00%, 07/01/2036 | 40 | 43 | ||||||
4.50%, 08/01/2044 | 101 | 105 | 5.00%, 04/01/2037 | 265 | 278 | ||||||
4.50%, 10/01/2044 | 20 | 21 | 5.00%, 07/01/2037 | 11 | 12 | ||||||
4.50%, 12/01/2044 | 362 | 377 | 5.00%, 02/01/2038 | 75 | 80 | ||||||
4.50%, 03/01/2046 | 61 | 63 | 5.00%, 04/01/2038 | 27 | 29 | ||||||
4.50%, 04/01/2046 | 301 | 312 | 5.00%, 05/01/2038 | 1 | 1 | ||||||
4.50%, 07/01/2046 | 30 | 31 | 5.00%, 06/01/2038 | 3 | 3 | ||||||
4.50%, 08/01/2046 | 28 | 29 | 5.00%, 12/01/2038 | 9 | 9 | ||||||
4.50%, 08/01/2046 | 261 | 271 | 5.00%, 01/01/2039 | 334 | 354 | ||||||
4.50%, 01/01/2047 | 97 | 101 | 5.00%, 01/01/2039 | 25 | 27 | ||||||
4.50%, 01/01/2047 | 259 | 268 | 5.00%, 02/01/2039 | 39 | 41 | ||||||
4.50%, 01/01/2047 | 200 | 207 | 5.00%, 03/01/2039 | 1 | 1 | ||||||
4.50%, 02/01/2047 | 178 | 184 | 5.00%, 03/01/2039 | 15 | 16 | ||||||
4.50%, 02/01/2047 | 357 | 370 | 5.00%, 04/01/2039 | 24 | 25 | ||||||
4.50%, 03/01/2047 | 273 | 283 | 5.00%, 04/01/2039 | 33 | 35 | ||||||
4.50%, 03/01/2047 | 835 | 866 | 5.00%, 04/01/2039 | 11 | 12 | ||||||
4.50%, 10/01/2047 | 348 | 361 | 5.00%, 06/01/2039 | 62 | 65 | ||||||
4.50%, 11/01/2047 | 621 | 644 | 5.00%, 07/01/2039 | 142 | 149 | ||||||
4.50%, 01/01/2048 | 95 | 98 | 5.00%, 07/01/2039 | 37 | 40 | ||||||
4.50%, 02/01/2048 | 486 | 503 | 5.00%, 07/01/2039 | 147 | 154 | ||||||
4.50%, 05/01/2048 | 973 | 1,008 | 5.00%, 10/01/2039 | 29 | 31 | ||||||
4.50%, 06/01/2048 | 700 | 725 | 5.00%, 12/01/2039 | 66 | 70 | ||||||
4.50%, 08/01/2048 | 297 | 307 | 5.00%, 12/01/2039 | 25 | 27 | ||||||
4.50%, 08/01/2048 | 998 | 1,034 | 5.00%, 01/01/2040 | 54 | 58 | ||||||
4.50%, 08/01/2048 | 100 | 104 | 5.00%, 02/01/2040 | 79 | 85 | ||||||
5.00%, 06/01/2019 | 1 | 1 | 5.00%, 05/01/2040 | 103 | 109 | ||||||
5.00%, 11/01/2020 | 37 | 38 | 5.00%, 05/01/2040 | 16 | 17 | ||||||
5.00%, 11/01/2021 | 1 | 1 | 5.00%, 06/01/2040 | 47 | 50 | ||||||
5.00%, 02/01/2023 | 8 | 8 | 5.00%, 06/01/2040 | 38 | 40 | ||||||
5.00%, 07/01/2023 | 1 | 1 | 5.00%, 06/01/2040 | 6 | 7 | ||||||
5.00%, 09/01/2023 | 32 | 32 | 5.00%, 08/01/2040 | 75 | 80 | ||||||
5.00%, 12/01/2023 | 6 | 6 | 5.00%, 08/01/2040 | 21 | 23 | ||||||
5.00%, 12/01/2023 | 2 | 2 | 5.00%, 08/01/2040 | 16 | 17 | ||||||
5.00%, 01/01/2024 | 5 | 5 | 5.00%, 09/01/2040 | 7 | 8 | ||||||
5.00%, 01/01/2024 | 11 | 11 | 5.00%, 09/01/2040 | 65 | 69 | ||||||
5.00%, 02/01/2024 | 37 | 38 | 5.00%, 11/01/2040 | 26 | 28 | ||||||
5.00%, 07/01/2024 | 5 | 5 | 5.00%, 02/01/2041 | 191 | 203 | ||||||
5.00%, 12/01/2024 | 21 | 22 | 5.00%, 02/01/2041 | 303 | 322 | ||||||
5.00%, 04/01/2029 | 10 | 10 | 5.00%, 04/01/2041 | 21 | 22 | ||||||
5.00%, 09/01/2029 | 119 | 124 | 5.00%, 05/01/2041 | 14 | 15 | ||||||
5.00%, 03/01/2030 | 16 | 17 | 5.00%, 05/01/2041 | 29 | 31 | ||||||
5.00%, 08/01/2030 | 21 | 22 | 5.00%, 05/01/2041 | 27 | 29 | ||||||
5.00%, 05/01/2033 | 11 | 12 | 5.00%, 05/01/2041 | 28 | 30 | ||||||
5.00%, 05/01/2033 | 7 | 8 | 5.00%, 07/01/2041 | 286 | 303 | ||||||
5.00%, 07/01/2033 | 51 | 54 | 5.00%, 07/01/2041 | 6 | 6 | ||||||
5.00%, 08/01/2033 | 3 | 3 | 5.00%, 05/01/2042 | 419 | 445 | ||||||
5.00%, 09/01/2033 | 33 | 35 | 5.00%, 09/01/2043 | 334 | 355 | ||||||
5.00%, 09/01/2033 | 24 | 26 | 5.00%, 12/01/2043 | 300 | 317 | ||||||
5.00%, 11/01/2033 | 32 | 34 | 5.00%, 01/01/2044 | 74 | 78 | ||||||
5.00%, 02/01/2034 | 4 | 4 | 5.00%, 01/01/2044 | 90 | 96 | ||||||
5.00%, 03/01/2034 | 5 | 6 | 5.00%, 03/01/2044 | 308 | 325 | ||||||
5.00%, 05/01/2034 | 48 | 51 | 5.00%, 03/01/2044 | 189 | 198 | ||||||
5.00%, 02/01/2035 | 38 | 40 | 5.00%, 05/01/2044 | 170 | 179 | ||||||
5.00%, 03/01/2035 | 5 | 5 | 5.00%, 07/01/2044 | 145 | 151 | ||||||
5.00%, 04/01/2035 | 5 | 6 | 5.00%, 08/01/2044 | 95 | 100 | ||||||
5.00%, 06/01/2035 | 70 | 75 | 5.00%, 11/01/2044 | 286 | 301 | ||||||
5.00%, 07/01/2035 | 86 | 91 | 5.00%, 09/01/2047 | 393 | 412 | ||||||
5.00%, 07/01/2035 | 8 | 8 | 5.00%, 08/01/2048 | 75 | 79 | ||||||
5.00%, 07/01/2035 | 166 | 176 | 5.50%, 08/01/2019 | 2 | 2 | ||||||
5.00%, 07/01/2035 | 3 | 3 | 5.50%, 05/01/2021 | 2 | 2 | ||||||
5.00%, 07/01/2035 | 33 | 35 | 5.50%, 11/01/2022 | 6 | 6 | ||||||
5.00%, 09/01/2035 | 5 | 5 | 5.50%, 11/01/2022 | 2 | 2 | ||||||
5.00%, 10/01/2035 | 16 | 17 | 5.50%, 02/01/2023 | 5 | 5 |
See accompanying notes.
141
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal National Mortgage Association (FNMA) (continued) | Federal National Mortgage Association (FNMA) (continued) | ||||||||||
5.50%, 03/01/2023 | $ | 4 | $ | 4 | 5.50%, 05/01/2038 | $ | 238 | $ | 254 | ||
5.50%, 04/01/2023 | 7 | 7 | 5.50%, 06/01/2038 | 125 | 133 | ||||||
5.50%, 07/01/2023 | 5 | 5 | 5.50%, 06/01/2038 | 2 | 2 | ||||||
5.50%, 09/01/2023 | 4 | 4 | 5.50%, 06/01/2038 | 11 | 12 | ||||||
5.50%, 12/01/2023 | 3 | 3 | 5.50%, 06/01/2038 | 93 | 99 | ||||||
5.50%, 05/01/2025 | 2 | 2 | 5.50%, 06/01/2038 | 1 | 1 | ||||||
5.50%, 06/01/2028 | 5 | 6 | 5.50%, 07/01/2038 | 9 | 10 | ||||||
5.50%, 09/01/2028 | 2 | 2 | 5.50%, 07/01/2038 | 6 | 7 | ||||||
5.50%, 01/01/2029 | 4 | 4 | 5.50%, 08/01/2038 | 134 | 142 | ||||||
5.50%, 12/01/2029 | 21 | 22 | 5.50%, 11/01/2038 | 3 | 4 | ||||||
5.50%, 06/01/2033 | 9 | 9 | 5.50%, 11/01/2038 | 127 | 136 | ||||||
5.50%, 10/01/2033 | 163 | 175 | 5.50%, 11/01/2038 | 54 | 57 | ||||||
5.50%, 04/01/2034 | 21 | 22 | 5.50%, 11/01/2038 | 4 | 4 | ||||||
5.50%, 04/01/2034 | 29 | 31 | 5.50%, 11/01/2038 | 6 | 6 | ||||||
5.50%, 04/01/2034 | 39 | 42 | 5.50%, 11/01/2038 | 3 | 4 | ||||||
5.50%, 05/01/2034 | 25 | 27 | 5.50%, 12/01/2038 | 10 | 11 | ||||||
5.50%, 06/01/2034 | 2 | 3 | 5.50%, 12/01/2038 | 10 | 11 | ||||||
5.50%, 11/01/2034 | 22 | 23 | 5.50%, 12/01/2038 | 7 | 8 | ||||||
5.50%, 01/01/2035 | 22 | 24 | 5.50%, 01/01/2039 | 12 | 13 | ||||||
5.50%, 01/01/2035 | 6 | 6 | 5.50%, 04/01/2039 | 4 | 4 | ||||||
5.50%, 03/01/2035 | 9 | 10 | 5.50%, 06/01/2039 | 131 | 141 | ||||||
5.50%, 04/01/2035 | 1 | 1 | 5.50%, 07/01/2039 | 30 | 33 | ||||||
5.50%, 04/01/2035 | 13 | 14 | 5.50%, 09/01/2039 | 23 | 24 | ||||||
5.50%, 08/01/2035 | 3 | 4 | 5.50%, 10/01/2039 | 7 | 7 | ||||||
5.50%, 09/01/2035 | 1 | 1 | 5.50%, 12/01/2039 | 14 | 15 | ||||||
5.50%, 10/01/2035 | 5 | 5 | 5.50%, 12/01/2039 | 36 | 39 | ||||||
5.50%, 10/01/2035 | 2 | 2 | 5.50%, 05/01/2040 | 72 | 77 | ||||||
5.50%, 11/01/2035 | 190 | 204 | 5.50%, 06/01/2040 | 5 | 5 | ||||||
5.50%, 12/01/2035 | 7 | 8 | 5.50%, 07/01/2040 | 23 | 25 | ||||||
5.50%, 01/01/2036 | 2 | 3 | 5.50%, 07/01/2041 | 101 | 108 | ||||||
5.50%, 02/01/2036 | 17 | 18 | 5.50%, 09/01/2041 | 41 | 44 | ||||||
5.50%, 04/01/2036 | 26 | 28 | 5.50%, 09/01/2041 | 30 | 33 | ||||||
5.50%, 04/01/2036 | 1 | 1 | 5.50%, 11/01/2041(d),(j) | 500 | 533 | ||||||
5.50%, 05/01/2036 | 105 | 113 | 5.50%, 06/01/2048 | 120 | 127 | ||||||
5.50%, 07/01/2036 | 13 | 14 | 6.00%, 12/01/2032 | 13 | 14 | ||||||
5.50%, 08/01/2036 | 37 | 40 | 6.00%, 01/01/2033 | 4 | 4 | ||||||
5.50%, 09/01/2036 | 15 | 16 | 6.00%, 10/01/2033 | 4 | 5 | ||||||
5.50%, 09/01/2036 | 36 | 39 | 6.00%, 12/01/2033 | 10 | 10 | ||||||
5.50%, 10/01/2036 | 29 | 31 | 6.00%, 10/01/2034 | 15 | 16 | ||||||
5.50%, 11/01/2036 | 8 | 9 | 6.00%, 12/01/2034 | 6 | 7 | ||||||
5.50%, 11/01/2036 | 11 | 12 | 6.00%, 01/01/2035 | 35 | 38 | ||||||
5.50%, 11/01/2036 | 5 | 5 | 6.00%, 07/01/2035 | 51 | 56 | ||||||
5.50%, 12/01/2036 | 106 | 114 | 6.00%, 07/01/2035 | 26 | 28 | ||||||
5.50%, 01/01/2037 | 12 | 13 | 6.00%, 10/01/2035 | 26 | 28 | ||||||
5.50%, 02/01/2037 | 24 | 26 | 6.00%, 05/01/2036 | 1 | 2 | ||||||
5.50%, 03/01/2037 | 156 | 167 | 6.00%, 05/01/2036 | 2 | 2 | ||||||
5.50%, 03/01/2037 | 80 | 86 | 6.00%, 06/01/2036 | 16 | 17 | ||||||
5.50%, 05/01/2037 | 99 | 107 | 6.00%, 02/01/2037 | 17 | 19 | ||||||
5.50%, 05/01/2037 | 1 | 1 | 6.00%, 02/01/2037 | 2 | 2 | ||||||
5.50%, 05/01/2037 | 10 | 11 | 6.00%, 03/01/2037 | 36 | 39 | ||||||
5.50%, 05/01/2037 | 331 | 356 | 6.00%, 03/01/2037 | 15 | 17 | ||||||
5.50%, 06/01/2037 | 26 | 28 | 6.00%, 06/01/2037 | 8 | 9 | ||||||
5.50%, 07/01/2037 | 1 | 1 | 6.00%, 07/01/2037 | 3 | 3 | ||||||
5.50%, 07/01/2037 | 3 | 3 | 6.00%, 09/01/2037 | 19 | 21 | ||||||
5.50%, 08/01/2037 | 125 | 135 | 6.00%, 10/01/2037 | 2 | 2 | ||||||
5.50%, 08/01/2037 | 128 | 138 | 6.00%, 11/01/2037 | 5 | 5 | ||||||
5.50%, 08/01/2037 | 160 | 172 | 6.00%, 11/01/2037 | 4 | 5 | ||||||
5.50%, 01/01/2038 | 6 | 6 | 6.00%, 12/01/2037 | 6 | 7 | ||||||
5.50%, 01/01/2038 | 5 | 5 | 6.00%, 01/01/2038 | 4 | 4 | ||||||
5.50%, 02/01/2038 | 34 | 36 | 6.00%, 01/01/2038 | 8 | 9 | ||||||
5.50%, 02/01/2038 | 12 | 13 | 6.00%, 01/01/2038 | 126 | 137 | ||||||
5.50%, 02/01/2038 | 13 | 14 | 6.00%, 02/01/2038 | 4 | 4 | ||||||
5.50%, 03/01/2038 | 16 | 18 | 6.00%, 03/01/2038 | 8 | 9 | ||||||
5.50%, 03/01/2038 | 7 | 7 | 6.00%, 03/01/2038 | 41 | 45 | ||||||
5.50%, 03/01/2038 | 8 | 8 | 6.00%, 05/01/2038 | 5 | 6 | ||||||
5.50%, 03/01/2038 | 49 | 53 | 6.00%, 05/01/2038 | 4 | 4 | ||||||
5.50%, 05/01/2038 | 13 | 14 | 6.00%, 08/01/2038 | 8 | 9 | ||||||
5.50%, 05/01/2038 | 4 | 4 | 6.00%, 09/01/2038 | 30 | 33 |
See accompanying notes.
142
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal National Mortgage Association (FNMA) (continued) | Government National Mortgage Association (GNMA) (continued) | ||||||||||
6.00%, 10/01/2038 | $ | 17 | $ | 19 | 3.00%, 04/15/2042 | $ | 19 | $ | 19 | ||
6.00%, 11/01/2038 | 27 | 29 | 3.00%, 08/20/2042 | 10 | 10 | ||||||
6.00%, 12/01/2038 | 4 | 4 | 3.00%, 09/20/2042 | 1,494 | 1,484 | ||||||
6.00%, 10/01/2039 | 10 | 11 | 3.00%, 10/15/2042 | 258 | 255 | ||||||
6.00%, 10/01/2039 | 9 | 10 | 3.00%, 12/20/2042 | 421 | 418 | ||||||
6.00%, 04/01/2040 | 21 | 23 | 3.00%, 01/20/2043 | 600 | 596 | ||||||
6.00%, 09/01/2040 | 6 | 7 | 3.00%, 03/20/2043 | 806 | 800 | ||||||
6.00%, 10/01/2040 | 24 | 26 | 3.00%, 03/20/2043 | 262 | 258 | ||||||
6.00%, 10/01/2040 | 10 | 11 | 3.00%, 04/15/2043 | 45 | 45 | ||||||
6.00%, 05/01/2041 | 216 | 236 | 3.00%, 04/20/2043 | 1,055 | 1,047 | ||||||
6.50%, 12/01/2031 | 1 | 1 | 3.00%, 05/15/2043 | 12 | 12 | ||||||
6.50%, 03/01/2032 | 1 | 1 | 3.00%, 05/15/2043 | 37 | 37 | ||||||
6.50%, 07/01/2032 | 4 | 5 | 3.00%, 05/15/2043 | 18 | 17 | ||||||
6.50%, 11/01/2033 | 7 | 7 | 3.00%, 06/15/2043 | 379 | 376 | ||||||
6.50%, 08/01/2034 | 15 | 17 | 3.00%, 06/20/2043 | 232 | 230 | ||||||
6.50%, 09/01/2034 | 10 | 12 | 3.00%, 07/15/2043 | 121 | 119 | ||||||
6.50%, 10/01/2034 | 4 | 4 | 3.00%, 08/15/2043 | 252 | 250 | ||||||
6.50%, 07/01/2037 | 4 | 4 | 3.00%, 08/15/2043 | 237 | 235 | ||||||
6.50%, 07/01/2037 | 6 | 7 | 3.00%, 08/20/2043 | 109 | 109 | ||||||
6.50%, 08/01/2037 | 3 | 3 | 3.00%, 09/20/2043 | 408 | 406 | ||||||
6.50%, 10/01/2037 | 29 | 32 | 3.00%, 10/20/2043 | 205 | 204 | ||||||
6.50%, 01/01/2038 | 123 | 140 | 3.00%, 11/20/2043 | 153 | 152 | ||||||
6.50%, 01/01/2038 | 4 | 4 | 3.00%, 03/20/2044 | 310 | 308 | ||||||
6.50%, 02/01/2038 | 6 | 6 | 3.00%, 05/15/2044 | 31 | 31 | ||||||
6.50%, 02/01/2038 | 7 | 8 | 3.00%, 08/20/2044 | 1,226 | 1,218 | ||||||
6.50%, 03/01/2038 | 2 | 2 | 3.00%, 11/15/2044 | 282 | 278 | ||||||
6.50%, 03/01/2038 | 23 | 26 | 3.00%, 11/20/2044 | 480 | 475 | ||||||
6.50%, 05/01/2038 | 6 | 7 | 3.00%, 12/20/2044 | 574 | 569 | ||||||
6.50%, 05/01/2038 | 72 | 82 | 3.00%, 02/15/2045 | 316 | 312 | ||||||
6.50%, 09/01/2038 | 3 | 4 | 3.00%, 03/15/2045 | 69 | 68 | ||||||
6.50%, 10/01/2039 | 7 | 8 | 3.00%, 04/20/2045 | 55 | 55 | ||||||
7.00%, 12/01/2037 | 5 | 5 | 3.00%, 05/20/2045 | 510 | 504 | ||||||
7.00%, 12/01/2037 | 10 | 11 | 3.00%, 07/15/2045 | 241 | 238 | ||||||
7.50%, 05/01/2031 | 8 | 9 | 3.00%, 07/20/2045 | 1,605 | 1,586 | ||||||
$ | 270,742 | 3.00%, 08/15/2045 | 251 | 248 | |||||||
Government National Mortgage Association (GNMA)- 8.45% | 3.00%, 08/20/2045 | 1,090 | 1,077 | ||||||||
2.50%, 08/20/2027 | 64 | 63 | 3.00%, 10/20/2045 | 1,036 | 1,023 | ||||||
2.50%, 09/20/2027 | 135 | 133 | 3.00%, 11/20/2045 | 592 | 584 | ||||||
2.50%, 01/20/2028 | 163 | 161 | 3.00%, 12/20/2045 | 856 | 845 | ||||||
2.50%, 03/20/2028 | 122 | 120 | 3.00%, 01/20/2046 | 218 | 215 | ||||||
2.50%, 04/20/2028 | 124 | 122 | 3.00%, 02/20/2046 | 278 | 274 | ||||||
2.50%, 07/20/2028 | 120 | 118 | 3.00%, 03/20/2046 | 1,455 | 1,436 | ||||||
2.50%, 11/20/2030 | 58 | 57 | 3.00%, 04/20/2046 | 1,009 | 996 | ||||||
2.50%, 03/20/2031 | 148 | 145 | 3.00%, 05/20/2046 | 884 | 873 | ||||||
2.50%, 04/20/2032 | 80 | 79 | 3.00%, 06/20/2046 | 366 | 361 | ||||||
2.50%, 05/20/2032 | 183 | 179 | 3.00%, 07/20/2046 | 1,329 | 1,311 | ||||||
2.50%, 03/15/2043 | 87 | 84 | 3.00%, 08/20/2046 | 1,725 | 1,701 | ||||||
2.50%, 07/20/2043 | 217 | 211 | 3.00%, 09/20/2046 | 1,570 | 1,549 | ||||||
2.50%, 06/20/2045 | 140 | 134 | 3.00%, 10/20/2046 | 1,032 | 1,017 | ||||||
2.50%, 10/15/2046 | 92 | 88 | 3.00%, 11/15/2046 | 93 | 91 | ||||||
2.50%, 11/20/2046 | 69 | 66 | 3.00%, 11/20/2046 | 1,559 | 1,536 | ||||||
2.50%, 12/20/2046 | 393 | 376 | 3.00%, 11/20/2046 | 419 | 413 | ||||||
2.50%, 01/20/2047 | 543 | 520 | 3.00%, 12/20/2046 | 1,222 | 1,205 | ||||||
3.00%, 01/20/2027 | 16 | 16 | 3.00%, 01/20/2047 | 1,236 | 1,218 | ||||||
3.00%, 04/15/2027 | 66 | 66 | 3.00%, 07/20/2047 | 64 | 63 | ||||||
3.00%, 04/20/2027 | 112 | 112 | 3.00%, 10/20/2047 | 1,472 | 1,450 | ||||||
3.00%, 09/20/2027 | 117 | 117 | 3.00%, 11/20/2047 | 707 | 696 | ||||||
3.00%, 11/20/2027 | 60 | 61 | 3.00%, 12/20/2047 | 2,237 | 2,204 | ||||||
3.00%, 09/20/2028 | 74 | 75 | 3.00%, 01/20/2048 | 974 | 960 | ||||||
3.00%, 10/20/2028 | 105 | 106 | 3.00%, 02/01/2048 | 600 | 590 | ||||||
3.00%, 11/20/2028 | 42 | 42 | 3.00%, 02/20/2048 | 1,046 | 1,031 | ||||||
3.00%, 01/20/2029 | 32 | 32 | 3.00%, 03/20/2048 | 972 | 957 | ||||||
3.00%, 05/20/2029 | 126 | 127 | 3.50%, 12/15/2025 | 8 | 8 | ||||||
3.00%, 07/20/2030 | 260 | 261 | 3.50%, 02/15/2026 | 28 | 29 | ||||||
3.00%, 01/20/2031 | 162 | 163 | 3.50%, 05/15/2026 | 12 | 13 | ||||||
3.00%, 07/20/2032 | 223 | 223 | 3.50%, 03/20/2027 | 27 | 28 | ||||||
3.00%, 01/20/2033 | 112 | 112 | 3.50%, 04/20/2027 | 45 | 46 | ||||||
3.00%, 01/01/2041 | 4,925 | 4,850 | 3.50%, 09/20/2028 | 170 | 174 |
See accompanying notes.
143
Schedule of Investments Bond Market Index Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Government National Mortgage Association (GNMA) (continued) | Government National Mortgage Association (GNMA) (continued) | ||||||||||
3.50%, 01/20/2041 | $ | 47 | $ | 47 | 3.50%, 11/20/2046 | $ | 1,112 | $ | 1,119 | ||
3.50%, 11/15/2041 | 34 | 34 | 3.50%, 12/20/2046 | 1,147 | 1,154 | ||||||
3.50%, 11/20/2041 | 14 | 15 | 3.50%, 01/20/2047 | 1,271 | 1,279 | ||||||
3.50%, 01/15/2042 | 42 | 43 | 3.50%, 02/20/2047 | 790 | 795 | ||||||
3.50%, 01/20/2042 | 68 | 69 | 3.50%, 03/20/2047 | 1,122 | 1,129 | ||||||
3.50%, 02/15/2042 | 67 | 68 | 3.50%, 04/20/2047 | 287 | 288 | ||||||
3.50%, 02/15/2042 | 276 | 280 | 3.50%, 05/20/2047 | 833 | 838 | ||||||
3.50%, 02/20/2042 | 64 | 65 | 3.50%, 06/20/2047 | 1,289 | 1,298 | ||||||
3.50%, 03/15/2042 | 55 | 56 | 3.50%, 07/20/2047 | 1,324 | 1,333 | ||||||
3.50%, 03/15/2042 | 56 | 56 | 3.50%, 08/20/2047 | 897 | 903 | ||||||
3.50%, 03/20/2042 | 73 | 74 | 3.50%, 09/20/2047 | 285 | 287 | ||||||
3.50%, 04/15/2042 | 144 | 146 | 3.50%, 10/15/2047 | 94 | 95 | ||||||
3.50%, 04/15/2042 | 337 | 341 | 3.50%, 10/20/2047 | 215 | 216 | ||||||
3.50%, 04/20/2042 | 1,066 | 1,078 | 3.50%, 11/20/2047 | 1,213 | 1,221 | ||||||
3.50%, 05/15/2042 | 6 | 6 | 3.50%, 12/20/2047 | 1,402 | 1,411 | ||||||
3.50%, 05/15/2042 | 96 | 97 | 3.50%, 01/01/2048 | 15,750 | 15,847 | ||||||
3.50%, 05/20/2042 | 1,117 | 1,130 | 3.50%, 01/20/2048 | 72 | 73 | ||||||
3.50%, 06/20/2042 | 312 | 316 | 3.50%, 02/01/2048 | 1,500 | 1,509 | ||||||
3.50%, 07/20/2042 | 1,238 | 1,252 | 3.50%, 02/20/2048 | 313 | 315 | ||||||
3.50%, 08/15/2042 | 66 | 67 | 3.50%, 07/20/2048 | 634 | 638 | ||||||
3.50%, 08/20/2042 | 239 | 242 | 4.00%, 07/15/2024 | 42 | 43 | ||||||
3.50%, 10/20/2042 | 729 | 737 | 4.00%, 08/15/2024 | 11 | 11 | ||||||
3.50%, 01/15/2043 | 423 | 429 | 4.00%, 12/15/2024 | 9 | 9 | ||||||
3.50%, 01/15/2043 | 240 | 242 | 4.00%, 11/15/2025 | 8 | 9 | ||||||
3.50%, 01/20/2043 | 370 | 374 | 4.00%, 05/15/2026 | 11 | 11 | ||||||
3.50%, 02/20/2043 | 1,121 | 1,139 | 4.00%, 06/15/2039 | 7 | 7 | ||||||
3.50%, 03/20/2043 | 465 | 469 | 4.00%, 07/20/2040 | 27 | 27 | ||||||
3.50%, 03/20/2043 | 1,083 | 1,100 | 4.00%, 08/15/2040 | 107 | 111 | ||||||
3.50%, 04/15/2043 | 125 | 127 | 4.00%, 08/15/2040 | 25 | 26 | ||||||
3.50%, 04/15/2043 | 58 | 58 | 4.00%, 09/15/2040 | 5 | 5 | ||||||
3.50%, 04/20/2043 | 758 | 767 | 4.00%, 09/15/2040 | 47 | 49 | ||||||
3.50%, 04/20/2043 | 1,066 | 1,079 | 4.00%, 09/15/2040 | 22 | 22 | ||||||
3.50%, 06/15/2043 | 48 | 48 | 4.00%, 10/15/2040 | 36 | 38 | ||||||
3.50%, 06/15/2043 | 47 | 48 | 4.00%, 11/15/2040 | 29 | 30 | ||||||
3.50%, 07/20/2043 | 740 | 749 | 4.00%, 11/15/2040 | 5 | 5 | ||||||
3.50%, 08/15/2043 | 128 | 130 | 4.00%, 11/20/2040 | 22 | 23 | ||||||
3.50%, 08/20/2043 | 1,043 | 1,055 | 4.00%, 12/20/2040 | 45 | 46 | ||||||
3.50%, 09/20/2043 | 676 | 684 | 4.00%, 01/15/2041 | 41 | 42 | ||||||
3.50%, 01/20/2044 | 9 | 9 | 4.00%, 01/15/2041 | 64 | 66 | ||||||
3.50%, 02/20/2044 | 80 | 80 | 4.00%, 01/15/2041 | 25 | 26 | ||||||
3.50%, 04/20/2044 | 334 | 338 | 4.00%, 01/20/2041 | 71 | 74 | ||||||
3.50%, 07/20/2044 | 910 | 918 | 4.00%, 05/15/2041 | 41 | 42 | ||||||
3.50%, 08/20/2044 | 947 | 956 | 4.00%, 05/15/2041 | 20 | 20 | ||||||
3.50%, 09/15/2044 | 24 | 24 | 4.00%, 07/20/2041 | 23 | 24 | ||||||
3.50%, 09/20/2044 | 351 | 355 | 4.00%, 08/15/2041 | 110 | 113 | ||||||
3.50%, 10/20/2044 | 381 | 385 | 4.00%, 08/15/2041 | 38 | 39 | ||||||
3.50%, 11/20/2044 | 418 | 421 | 4.00%, 08/15/2041 | 17 | 18 | ||||||
3.50%, 12/20/2044 | 470 | 475 | 4.00%, 09/15/2041 | 26 | 27 | ||||||
3.50%, 02/20/2045 | 471 | 475 | 4.00%, 09/15/2041 | 34 | 35 | ||||||
3.50%, 05/20/2045 | 662 | 667 | 4.00%, 09/15/2041 | 62 | 64 | ||||||
3.50%, 06/20/2045 | 132 | 133 | 4.00%, 09/15/2041 | 82 | 84 | ||||||
3.50%, 07/20/2045 | 954 | 962 | 4.00%, 09/20/2041 | 118 | 122 | ||||||
3.50%, 08/20/2045 | 434 | 438 | 4.00%, 10/15/2041 | 23 | 24 | ||||||
3.50%, 09/20/2045 | 234 | 236 | 4.00%, 10/15/2041 | 35 | 37 | ||||||
3.50%, 10/20/2045 | 1,760 | 1,775 | 4.00%, 11/15/2041 | 131 | 135 | ||||||
3.50%, 11/20/2045 | 1,415 | 1,429 | 4.00%, 11/20/2041 | 43 | 45 | ||||||
3.50%, 12/20/2045 | 883 | 889 | 4.00%, 12/15/2041 | 8 | 9 | ||||||
3.50%, 01/20/2046 | 1,726 | 1,740 | 4.00%, 12/15/2041 | 36 | 37 | ||||||
3.50%, 02/20/2046 | 127 | 128 | 4.00%, 12/20/2041 | 41 | 43 | ||||||
3.50%, 03/20/2046 | 1,528 | 1,540 | 4.00%, 01/15/2042 | 64 | 65 | ||||||
3.50%, 04/20/2046 | 935 | 943 | 4.00%, 01/15/2042 | 16 | 17 | ||||||
3.50%, 05/20/2046 | 1,298 | 1,308 | 4.00%, 01/20/2042 | 226 | 233 | ||||||
3.50%, 06/20/2046 | 1,085 | 1,093 | 4.00%, 02/01/2042 | 1,200 | 1,228 | ||||||
3.50%, 07/15/2046 | 169 | 171 | 4.00%, 02/20/2042 | 177 | 183 | ||||||
3.50%, 07/20/2046 | 694 | 699 | 4.00%, 03/15/2042 | 75 | 77 | ||||||
3.50%, 08/20/2046 | 1,073 | 1,081 | 4.00%, 03/15/2042 | 134 | 137 | ||||||
3.50%, 09/20/2046 | 1,220 | 1,228 | 4.00%, 03/20/2042 | 216 | 223 | ||||||
3.50%, 10/20/2046 | 1,448 | 1,458 | 4.00%, 04/20/2042 | 186 | 192 |
See accompanying notes.
144
Schedule of Investments Bond Market Index Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Government National Mortgage Association (GNMA) (continued) | Government National Mortgage Association (GNMA) (continued) | ||||||||||
4.00%, 05/15/2042 | $ | 373 | $ | 383 | 4.50%, 11/15/2039 | $ | 268 | $ | 282 | ||
4.00%, 05/20/2042 | 18 | 18 | 4.50%, 12/15/2039 | 54 | 57 | ||||||
4.00%, 07/20/2042 | 434 | 448 | 4.50%, 01/15/2040 | 65 | 68 | ||||||
4.00%, 06/20/2043 | 59 | 61 | 4.50%, 02/15/2040 | 10 | 11 | ||||||
4.00%, 08/15/2043 | 12 | 13 | 4.50%, 02/15/2040 | 9 | 9 | ||||||
4.00%, 09/15/2043 | 273 | 280 | 4.50%, 02/15/2040 | 27 | 28 | ||||||
4.00%, 09/20/2043 | 77 | 79 | 4.50%, 02/15/2040 | 8 | 9 | ||||||
4.00%, 10/20/2043 | 118 | 121 | 4.50%, 02/15/2040 | 12 | 13 | ||||||
4.00%, 11/20/2043 | 271 | 279 | 4.50%, 02/15/2040 | 6 | 6 | ||||||
4.00%, 02/20/2044 | 644 | 665 | 4.50%, 04/15/2040 | 417 | 435 | ||||||
4.00%, 03/15/2044 | 257 | 263 | 4.50%, 05/15/2040 | 16 | 17 | ||||||
4.00%, 04/20/2044 | 313 | 323 | 4.50%, 06/15/2040 | 19 | 20 | ||||||
4.00%, 05/20/2044 | 421 | 434 | 4.50%, 06/15/2040 | 13 | 13 | ||||||
4.00%, 06/20/2044 | 312 | 321 | 4.50%, 07/15/2040 | 18 | 19 | ||||||
4.00%, 07/20/2044 | 1,250 | 1,290 | 4.50%, 07/15/2040 | 15 | 16 | ||||||
4.00%, 08/20/2044 | 878 | 902 | 4.50%, 08/15/2040 | 28 | 29 | ||||||
4.00%, 09/20/2044 | 784 | 809 | 4.50%, 08/15/2040 | 87 | 91 | ||||||
4.00%, 10/20/2044 | 1,046 | 1,074 | 4.50%, 08/15/2040 | 22 | 23 | ||||||
4.00%, 11/20/2044 | 480 | 495 | 4.50%, 08/15/2040 | 32 | 33 | ||||||
4.00%, 12/20/2044 | 833 | 859 | 4.50%, 08/15/2040 | 38 | 40 | ||||||
4.00%, 01/15/2045 | 63 | 65 | 4.50%, 09/15/2040 | 32 | 33 | ||||||
4.00%, 01/20/2045 | 692 | 714 | 4.50%, 09/15/2040 | 34 | 35 | ||||||
4.00%, 03/15/2045 | 54 | 56 | 4.50%, 10/15/2040 | 38 | 40 | ||||||
4.00%, 04/15/2045 | 40 | 41 | 4.50%, 12/15/2040 | 16 | 16 | ||||||
4.00%, 04/20/2045 | 451 | 465 | 4.50%, 01/20/2041 | 49 | 52 | ||||||
4.00%, 05/15/2045 | 297 | 305 | 4.50%, 01/20/2041 | 34 | 35 | ||||||
4.00%, 07/15/2045 | 53 | 54 | 4.50%, 02/20/2041 | 37 | 39 | ||||||
4.00%, 07/20/2045 | 189 | 194 | 4.50%, 02/20/2041 | 47 | 50 | ||||||
4.00%, 08/15/2045 | 42 | 43 | 4.50%, 03/15/2041 | 15 | 15 | ||||||
4.00%, 08/20/2045 | 531 | 546 | 4.50%, 03/15/2041 | 79 | 83 | ||||||
4.00%, 09/20/2045 | 768 | 790 | 4.50%, 03/20/2041 | 37 | 39 | ||||||
4.00%, 10/20/2045 | 400 | 411 | 4.50%, 03/20/2041 | 21 | 22 | ||||||
4.00%, 11/20/2045 | 142 | 146 | 4.50%, 04/15/2041 | 14 | 15 | ||||||
4.00%, 12/15/2045 | 180 | 185 | 4.50%, 04/15/2041 | 34 | 35 | ||||||
4.00%, 12/20/2045 | 349 | 360 | 4.50%, 04/20/2041 | 38 | 40 | ||||||
4.00%, 01/20/2046 | 225 | 231 | 4.50%, 05/15/2041 | 20 | 21 | ||||||
4.00%, 02/20/2046 | 328 | 337 | 4.50%, 05/15/2041 | 28 | 29 | ||||||
4.00%, 04/20/2046 | 550 | 564 | 4.50%, 06/15/2041 | 86 | 90 | ||||||
4.00%, 05/20/2046 | 279 | 287 | 4.50%, 06/20/2041 | 125 | 131 | ||||||
4.00%, 07/20/2046 | 598 | 614 | 4.50%, 07/15/2041 | 172 | 179 | ||||||
4.00%, 01/20/2047 | 1,254 | 1,285 | 4.50%, 07/15/2041 | 55 | 57 | ||||||
4.00%, 02/20/2047 | 1,091 | 1,117 | 4.50%, 07/15/2041 | 14 | 15 | ||||||
4.00%, 03/20/2047 | 1,082 | 1,110 | 4.50%, 07/20/2041 | 10 | 10 | ||||||
4.00%, 05/20/2047 | 1,474 | 1,511 | 4.50%, 07/20/2041 | 244 | 256 | ||||||
4.00%, 06/20/2047 | 1,460 | 1,496 | 4.50%, 08/15/2041 | 89 | 93 | ||||||
4.00%, 07/20/2047 | 2,135 | 2,188 | 4.50%, 08/20/2041 | 91 | 96 | ||||||
4.00%, 08/20/2047 | 170 | 174 | 4.50%, 09/20/2041 | 23 | 24 | ||||||
4.00%, 01/01/2048 | 12,025 | 12,312 | 4.50%, 11/20/2041 | 339 | 356 | ||||||
4.50%, 04/20/2026 | 7 | 7 | 4.50%, 12/20/2041 | 25 | 26 | ||||||
4.50%, 11/20/2033 | 5 | 5 | 4.50%, 01/20/2042 | 173 | 182 | ||||||
4.50%, 02/15/2039 | 148 | 155 | 4.50%, 02/01/2042 | 1,000 | 1,034 | ||||||
4.50%, 03/15/2039 | 16 | 17 | 4.50%, 02/20/2042 | 89 | 93 | ||||||
4.50%, 03/15/2039 | 29 | 30 | 4.50%, 03/20/2042 | 22 | 23 | ||||||
4.50%, 03/15/2039 | 62 | 65 | 4.50%, 04/20/2042 | 40 | 42 | ||||||
4.50%, 03/15/2039 | 21 | 22 | 4.50%, 05/20/2042 | 47 | 49 | ||||||
4.50%, 03/20/2039 | 31 | 33 | 4.50%, 05/20/2043 | 199 | 208 | ||||||
4.50%, 04/15/2039 | 44 | 46 | 4.50%, 06/20/2043 | 187 | 196 | ||||||
4.50%, 04/15/2039 | 46 | 48 | 4.50%, 08/20/2043 | 29 | 31 | ||||||
4.50%, 04/15/2039 | 23 | 24 | 4.50%, 09/20/2043 | 92 | 97 | ||||||
4.50%, 05/15/2039 | 6 | 6 | 4.50%, 10/20/2043 | 172 | 181 | ||||||
4.50%, 05/15/2039 | 151 | 157 | 4.50%, 11/20/2043 | 558 | 585 | ||||||
4.50%, 05/15/2039 | 54 | 57 | 4.50%, 03/20/2044 | 756 | 793 | ||||||
4.50%, 05/15/2039 | 7 | 7 | 4.50%, 04/20/2044 | 34 | 35 | ||||||
4.50%, 05/15/2039 | 59 | 62 | 4.50%, 05/20/2044 | 544 | 571 | ||||||
4.50%, 06/15/2039 | 55 | 57 | 4.50%, 07/20/2044 | 281 | 295 | ||||||
4.50%, 07/15/2039 | 12 | 12 | 4.50%, 09/20/2044 | 18 | 19 | ||||||
4.50%, 08/15/2039 | 63 | 66 | 4.50%, 10/20/2044 | 39 | 41 | ||||||
4.50%, 11/15/2039 | 10 | 11 | 4.50%, 11/20/2044 | 76 | 79 |
See accompanying notes.
145
Schedule of Investments Bond Market Index Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Government National Mortgage Association (GNMA) (continued) | Government National Mortgage Association (GNMA) (continued) | ||||||||||
4.50%, 12/20/2044 | $ | 121 | $ | 127 | 5.00%, 06/20/2041 | $ | 10 | $ | 11 | ||
4.50%, 02/20/2045 | 320 | 335 | 5.00%, 07/20/2041 | 16 | 17 | ||||||
4.50%, 03/20/2045 | 143 | 150 | 5.00%, 08/20/2041 | 107 | 113 | ||||||
4.50%, 04/20/2045 | 178 | 186 | 5.00%, 10/20/2041 | 14 | 15 | ||||||
4.50%, 06/20/2045 | 50 | 53 | 5.00%, 11/20/2041 | 43 | 45 | ||||||
4.50%, 10/20/2045 | 96 | 100 | 5.00%, 12/20/2041 | 32 | 33 | ||||||
4.50%, 12/20/2045 | 83 | 87 | 5.00%, 02/20/2042 | 150 | 159 | ||||||
4.50%, 06/20/2046 | 197 | 206 | 5.00%, 03/20/2042 | 33 | 35 | ||||||
4.50%, 09/15/2046 | 165 | 172 | 5.00%, 04/20/2042 | 103 | 109 | ||||||
4.50%, 12/20/2046 | 544 | 572 | 5.00%, 12/20/2042 | 277 | 293 | ||||||
4.50%, 02/20/2047 | 410 | 429 | 5.00%, 01/20/2043 | 52 | 55 | ||||||
4.50%, 04/20/2047 | 327 | 340 | 5.00%, 05/20/2043 | 58 | 61 | ||||||
4.50%, 06/15/2047 | 275 | 287 | 5.00%, 07/20/2043 | 155 | 163 | ||||||
4.50%, 06/15/2047 | 104 | 108 | 5.00%, 11/20/2043 | 172 | 181 | ||||||
4.50%, 08/20/2047 | 753 | 780 | 5.00%, 01/20/2044 | 117 | 124 | ||||||
4.50%, 10/20/2047 | 391 | 405 | 5.00%, 02/20/2044 | 161 | 170 | ||||||
4.50%, 01/01/2048 | 6,500 | 6,726 | 5.00%, 03/20/2044 | 108 | 114 | ||||||
4.50%, 05/20/2048 | 300 | 311 | 5.00%, 05/20/2044 | 46 | 49 | ||||||
5.00%, 08/15/2033 | 39 | 41 | 5.00%, 07/20/2044 | 88 | 93 | ||||||
5.00%, 02/15/2034 | 46 | 49 | 5.00%, 08/20/2044 | 40 | 43 | ||||||
5.00%, 07/15/2035 | 117 | 124 | 5.00%, 12/20/2044 | 69 | 73 | ||||||
5.00%, 08/15/2035 | 28 | 29 | 5.00%, 10/20/2045 | 86 | 90 | ||||||
5.00%, 04/20/2037 | 3 | 3 | 5.00%, 12/20/2045 | 146 | 155 | ||||||
5.00%, 04/20/2038 | 218 | 231 | 5.00%, 04/20/2046 | 239 | 253 | ||||||
5.00%, 05/15/2038 | 52 | 55 | 5.00%, 01/01/2048 | 1,900 | 1,977 | ||||||
5.00%, 06/20/2038 | 22 | 23 | 5.00%, 03/20/2048 | 328 | 342 | ||||||
5.00%, 08/15/2038 | 70 | 74 | 5.50%, 01/15/2024 | 4 | 4 | ||||||
5.00%, 10/15/2038 | 14 | 14 | 5.50%, 11/15/2033 | 27 | 29 | ||||||
5.00%, 01/15/2039 | 59 | 63 | 5.50%, 03/15/2034 | 7 | 7 | ||||||
5.00%, 01/15/2039 | 85 | 90 | 5.50%, 04/15/2034 | 7 | 8 | ||||||
5.00%, 02/15/2039 | 72 | 76 | 5.50%, 07/15/2034 | 5 | 6 | ||||||
5.00%, 02/15/2039 | 67 | 71 | 5.50%, 11/15/2034 | 21 | 23 | ||||||
5.00%, 03/15/2039 | 110 | 116 | 5.50%, 02/15/2035 | 14 | 15 | ||||||
5.00%, 04/15/2039 | 106 | 112 | 5.50%, 03/15/2036 | 6 | 6 | ||||||
5.00%, 05/15/2039 | 8 | 9 | 5.50%, 04/15/2036 | 6 | 7 | ||||||
5.00%, 06/15/2039 | 24 | 25 | 5.50%, 12/15/2036 | 9 | 9 | ||||||
5.00%, 06/15/2039 | 43 | 46 | 5.50%, 04/15/2037 | 25 | 27 | ||||||
5.00%, 06/20/2039 | 27 | 29 | 5.50%, 05/15/2038 | 9 | 10 | ||||||
5.00%, 07/15/2039 | 20 | 21 | 5.50%, 06/15/2038 | 16 | 17 | ||||||
5.00%, 07/15/2039 | 48 | 51 | 5.50%, 08/15/2038 | 90 | 95 | ||||||
5.00%, 07/15/2039 | 16 | 17 | 5.50%, 08/15/2038 | 29 | 31 | ||||||
5.00%, 07/15/2039 | 18 | 19 | 5.50%, 09/15/2038 | 12 | 13 | ||||||
5.00%, 08/15/2039 | 30 | 32 | 5.50%, 10/20/2038 | 26 | 28 | ||||||
5.00%, 09/15/2039 | 25 | 26 | 5.50%, 11/15/2038 | 8 | 9 | ||||||
5.00%, 09/15/2039 | 21 | 23 | 5.50%, 12/20/2038 | 10 | 11 | ||||||
5.00%, 09/15/2039 | 9 | 10 | 5.50%, 01/15/2039 | 39 | 41 | ||||||
5.00%, 09/15/2039 | 26 | 28 | 5.50%, 01/15/2039 | 3 | 3 | ||||||
5.00%, 09/15/2039 | 32 | 34 | 5.50%, 01/15/2039 | 15 | 16 | ||||||
5.00%, 11/15/2039 | 39 | 42 | 5.50%, 01/15/2039 | 6 | 6 | ||||||
5.00%, 12/15/2039 | 42 | 44 | 5.50%, 02/15/2039 | 7 | 8 | ||||||
5.00%, 02/15/2040 | 43 | 46 | 5.50%, 02/20/2039 | 61 | 65 | ||||||
5.00%, 02/15/2040 | 28 | 29 | 5.50%, 05/15/2039 | 3 | 3 | ||||||
5.00%, 02/15/2040 | 41 | 44 | 5.50%, 12/15/2039 | 14 | 15 | ||||||
5.00%, 04/15/2040 | 24 | 25 | 5.50%, 01/15/2040 | 120 | 130 | ||||||
5.00%, 05/15/2040 | 12 | 13 | 5.50%, 03/15/2040 | 54 | 58 | ||||||
5.00%, 05/15/2040 | 26 | 28 | 5.50%, 04/15/2040 | 176 | 189 | ||||||
5.00%, 05/20/2040 | 7 | 8 | 5.50%, 06/20/2040 | 71 | 75 | ||||||
5.00%, 06/15/2040 | 36 | 38 | 5.50%, 07/20/2040 | 20 | 21 | ||||||
5.00%, 06/15/2040 | 3 | 4 | 5.50%, 11/15/2040 | 18 | 20 | ||||||
5.00%, 06/15/2040 | 24 | 25 | 5.50%, 12/20/2040 | 15 | 16 | ||||||
5.00%, 06/15/2040 | 50 | 52 | 5.50%, 01/20/2041 | 221 | 235 | ||||||
5.00%, 06/20/2040 | 35 | 37 | 5.50%, 04/20/2041 | 41 | 44 | ||||||
5.00%, 07/15/2040 | 18 | 19 | 5.50%, 10/20/2041 | 37 | 39 | ||||||
5.00%, 07/20/2040 | 34 | 37 | 5.50%, 11/20/2041 | 39 | 41 | ||||||
5.00%, 01/20/2041 | 20 | 21 | 5.50%, 10/20/2042 | 102 | 110 | ||||||
5.00%, 02/20/2041 | 44 | 47 | 5.50%, 11/20/2042 | 92 | 99 | ||||||
5.00%, 04/15/2041 | 257 | 269 | 5.50%, 06/20/2043 | 94 | 100 | ||||||
5.00%, 05/20/2041 | 38 | 40 | 5.50%, 09/20/2043 | 128 | 137 |
See accompanying notes.
146
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Government National Mortgage Association (GNMA) (continued) | U.S. Treasury (continued) | ||||||||||
5.50%, 01/20/2047 | $ | 61 | $ | 65 | 1.63%, 08/15/2022 | $ | 1,990 | $ | 1,931 | ||
6.00%, 07/15/2032 | 1 | 1 | 1.63%, 08/31/2022 | 3,960 | 3,841 | ||||||
6.00%, 12/15/2032 | 1 | 1 | 1.63%, 11/15/2022 | 3,840 | 3,717 | ||||||
6.00%, 10/15/2034 | 20 | 21 | 1.63%, 04/30/2023 | 3,000 | 2,893 | ||||||
6.00%, 04/15/2035 | 14 | 16 | 1.63%, 05/31/2023 | 3,540 | 3,410 | ||||||
6.00%, 04/15/2036 | 8 | 8 | 1.63%, 10/31/2023 | 3,035 | 2,913 | ||||||
6.00%, 06/15/2036 | 14 | 15 | 1.63%, 02/15/2026 | 7,092 | 6,639 | ||||||
6.00%, 04/15/2037 | 27 | 29 | 1.63%, 05/15/2026 | 8,795 | 8,213 | ||||||
6.00%, 05/15/2037 | 21 | 23 | 1.75%, 10/31/2020 | 2,250 | 2,219 | ||||||
6.00%, 10/20/2037 | 34 | 38 | 1.75%, 11/15/2020 | 1,000 | 986 | ||||||
6.00%, 11/20/2037 | 13 | 14 | 1.75%, 12/31/2020 | 2,475 | 2,440 | ||||||
6.00%, 01/15/2038 | 13 | 14 | 1.75%, 02/28/2022 | 3,615 | 3,536 | ||||||
6.00%, 08/15/2038 | 9 | 10 | 1.75%, 03/31/2022 | 4,435 | 4,336 | ||||||
6.00%, 01/15/2039 | 73 | 78 | 1.75%, 04/30/2022 | 3,335 | 3,258 | ||||||
6.00%, 09/15/2039 | 19 | 20 | 1.75%, 05/15/2022 | 3,430 | 3,349 | ||||||
6.00%, 09/15/2039 | 44 | 47 | 1.75%, 05/31/2022 | 5,280 | 5,155 | ||||||
6.00%, 11/15/2039 | 57 | 61 | 1.75%, 06/30/2022 | 3,860 | 3,767 | ||||||
6.00%, 01/20/2042 | 34 | 36 | 1.75%, 09/30/2022 | 1,640 | 1,597 | ||||||
6.50%, 10/20/2028 | 1 | 1 | 1.75%, 01/31/2023 | 3,100 | 3,010 | ||||||
6.50%, 05/20/2029 | 1 | 1 | 1.75%, 05/15/2023 | 2,517 | 2,439 | ||||||
6.50%, 05/20/2032 | 4 | 5 | 1.88%, 06/30/2020 | 3,290 | 3,257 | ||||||
6.50%, 05/15/2037 | 29 | 31 | 1.88%, 12/15/2020 | 2,905 | 2,870 | ||||||
6.50%, 08/20/2038 | 11 | 13 | 1.88%, 11/30/2021 | 3,107 | 3,056 | ||||||
7.00%, 03/15/2029 | 2 | 2 | 1.88%, 01/31/2022 | 3,580 | 3,516 | ||||||
7.00%, 07/15/2031 | 1 | 1 | 1.88%, 02/28/2022 | 3,000 | 2,946 | ||||||
$ | 186,977 | 1.88%, 03/31/2022 | 3,700 | 3,631 | |||||||
U.S. Treasury- 37.68% | 1.88%, 04/30/2022 | 3,640 | 3,570 | ||||||||
1.13%, 03/31/2020 | 1,895 | 1,862 | 1.88%, 05/31/2022 | 4,785 | 4,691 | ||||||
1.13%, 04/30/2020 | 2,442 | 2,396 | 1.88%, 07/31/2022 | 3,640 | 3,565 | ||||||
1.13%, 02/28/2021 | 2,435 | 2,365 | 1.88%, 08/31/2022 | 3,810 | 3,728 | ||||||
1.13%, 06/30/2021 | 2,000 | 1,936 | 1.88%, 09/30/2022 | 4,005 | 3,918 | ||||||
1.13%, 07/31/2021 | 3,500 | 3,382 | 1.88%, 10/31/2022 | 4,000 | 3,911 | ||||||
1.13%, 08/31/2021 | 4,435 | 4,281 | 1.88%, 08/31/2024 | 3,265 | 3,151 | ||||||
1.13%, 09/30/2021 | 3,830 | 3,694 | 2.00%, 07/31/2020 | 2,464 | 2,444 | ||||||
1.25%, 02/29/2020 | 2,120 | 2,087 | 2.00%, 09/30/2020 | 3,000 | 2,973 | ||||||
1.25%, 03/31/2021 | 1,740 | 1,694 | 2.00%, 11/30/2020 | 500 | 495 | ||||||
1.25%, 10/31/2021 | 3,270 | 3,161 | 2.00%, 01/15/2021 | 1,990 | 1,970 | ||||||
1.25%, 07/31/2023 | 3,000 | 2,837 | 2.00%, 02/28/2021 | 3,720 | 3,681 | ||||||
1.38%, 02/15/2020 | 160 | 158 | 2.00%, 05/31/2021 | 3,800 | 3,758 | ||||||
1.38%, 02/29/2020 | 4,180 | 4,122 | 2.00%, 08/31/2021 | 3,105 | 3,066 | ||||||
1.38%, 03/31/2020 | 4,965 | 4,892 | 2.00%, 10/31/2021 | 3,120 | 3,080 | ||||||
1.38%, 04/30/2020 | 4,370 | 4,303 | 2.00%, 11/15/2021 | 4,985 | 4,921 | ||||||
1.38%, 05/31/2020 | 2,250 | 2,214 | 2.00%, 12/31/2021 | 2,890 | 2,850 | ||||||
1.38%, 08/31/2020 | 4,485 | 4,400 | 2.00%, 02/15/2022 | 1,545 | 1,523 | ||||||
1.38%, 09/15/2020 | 4,230 | 4,150 | 2.00%, 07/31/2022 | 3,331 | 3,276 | ||||||
1.38%, 09/30/2020 | 3,400 | 3,333 | 2.00%, 10/31/2022 | 4,050 | 3,978 | ||||||
1.38%, 10/31/2020 | 2,285 | 2,239 | 2.00%, 11/30/2022 | 7,770 | 7,629 | ||||||
1.38%, 01/31/2021 | 3,650 | 3,566 | 2.00%, 02/15/2023 | 3,897 | 3,821 | ||||||
1.38%, 04/30/2021 | 2,510 | 2,448 | 2.00%, 04/30/2024 | 1,250 | 1,217 | ||||||
1.38%, 05/31/2021 | 3,165 | 3,084 | 2.00%, 05/31/2024 | 1,725 | 1,678 | ||||||
1.38%, 06/30/2023 | 4,050 | 3,856 | 2.00%, 06/30/2024 | 3,295 | 3,204 | ||||||
1.38%, 08/31/2023 | 3,000 | 2,852 | 2.00%, 02/15/2025 | 5,570 | 5,388 | ||||||
1.38%, 09/30/2023 | 2,220 | 2,108 | 2.00%, 08/15/2025 | 4,000 | 3,856 | ||||||
1.50%, 04/15/2020 | 2,765 | 2,728 | 2.00%, 11/15/2026 | 8,280 | 7,904 | ||||||
1.50%, 05/15/2020 | 4,175 | 4,116 | 2.13%, 08/31/2020 | 3,300 | 3,278 | ||||||
1.50%, 05/31/2020 | 4,230 | 4,168 | 2.13%, 01/31/2021 | 2,105 | 2,089 | ||||||
1.50%, 06/15/2020 | 3,575 | 3,523 | 2.13%, 06/30/2021 | 5,690 | 5,643 | ||||||
1.50%, 07/15/2020 | 1,440 | 1,417 | 2.13%, 08/15/2021 | 4,040 | 4,003 | ||||||
1.50%, 08/15/2020 | 4,795 | 4,717 | 2.13%, 09/30/2021 | 3,055 | 3,026 | ||||||
1.50%, 01/31/2022 | 3,104 | 3,015 | 2.13%, 12/31/2021 | 3,105 | 3,074 | ||||||
1.50%, 02/28/2023 | 2,995 | 2,877 | 2.13%, 06/30/2022 | 365 | 361 | ||||||
1.50%, 03/31/2023 | 3,340 | 3,206 | 2.13%, 12/31/2022 | 5,110 | 5,038 | ||||||
1.50%, 08/15/2026 | 6,725 | 6,204 | 2.13%, 11/30/2023 | 3,080 | 3,024 | ||||||
1.63%, 03/15/2020 | 3,115 | 3,080 | 2.13%, 02/29/2024 | 5,970 | 5,856 | ||||||
1.63%, 06/30/2020 | 4,050 | 3,995 | 2.13%, 03/31/2024 | 3,880 | 3,803 | ||||||
1.63%, 07/31/2020 | 4,500 | 4,436 | 2.13%, 07/31/2024 | 3,310 | 3,238 | ||||||
1.63%, 10/15/2020 | 2,858 | 2,813 | 2.13%, 09/30/2024 | 3,770 | 3,684 | ||||||
1.63%, 11/30/2020 | 4,280 | 4,209 | 2.13%, 11/30/2024 | 2,460 | 2,401 |
See accompanying notes.
147
Schedule of Investments | |||||||||||
Bond Market Index Account | |||||||||||
December 31, 2018 | |||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
U.S. Treasury (continued) | U.S. Treasury (continued) | ||||||||||
2.13%, 05/15/2025 | $ | 8,950 | $ | 8,709 | 2.88%, 04/30/2025 | $ | 2,475 | $ | 2,518 | ||
2.25%, 02/29/2020 | 5,215 | 5,194 | 2.88%, 05/31/2025 | 4,120 | 4,191 | ||||||
2.25%, 03/31/2020 | 3,590 | 3,575 | 2.88%, 07/31/2025 | 2,000 | 2,035 | ||||||
2.25%, 02/15/2021 | 2,870 | 2,854 | 2.88%, 11/30/2025 | 3,630 | 3,695 | ||||||
2.25%, 03/31/2021 | 340 | 338 | 2.88%, 05/15/2028 | 7,570 | 7,686 | ||||||
2.25%, 04/30/2021 | 3,537 | 3,520 | 2.88%, 08/15/2028 | 2,325 | 2,361 | ||||||
2.25%, 07/31/2021 | 1,610 | 1,601 | 2.88%, 05/15/2043 | 5,703 | 5,567 | ||||||
2.25%, 12/31/2023 | 3,655 | 3,609 | 2.88%, 08/15/2045 | 1,505 | 1,466 | ||||||
2.25%, 01/31/2024 | 2,850 | 2,813 | 2.88%, 11/15/2046 | 4,690 | 4,560 | ||||||
2.25%, 10/31/2024 | 3,336 | 3,280 | 3.00%, 09/30/2025 | 2,220 | 2,277 | ||||||
2.25%, 11/15/2024 | 6,663 | 6,548 | 3.00%, 05/15/2042 | 1,500 | 1,502 | ||||||
2.25%, 12/31/2024 | 3,000 | 2,948 | 3.00%, 11/15/2044 | 4,745 | 4,738 | ||||||
2.25%, 11/15/2025 | 6,755 | 6,606 | 3.00%, 05/15/2045 | 4,260 | 4,252 | ||||||
2.25%, 02/15/2027 | 8,080 | 7,846 | 3.00%, 11/15/2045 | 4,735 | 4,725 | ||||||
2.25%, 08/15/2027 | 7,535 | 7,292 | 3.00%, 02/15/2047 | 4,540 | 4,527 | ||||||
2.25%, 11/15/2027 | 6,990 | 6,752 | 3.00%, 05/15/2047 | 2,900 | 2,888 | ||||||
2.25%, 08/15/2046 | 5,560 | 4,752 | 3.00%, 02/15/2048 | 4,050 | 4,028 | ||||||
2.38%, 04/30/2020 | 3,845 | 3,835 | 3.00%, 08/15/2048 | 4,335 | 4,315 | ||||||
2.38%, 12/31/2020 | 2,309 | 2,304 | 3.13%, 05/15/2021 | 2,420 | 2,456 | ||||||
2.38%, 03/15/2021 | 3,000 | 2,992 | 3.13%, 11/15/2028 | 3,100 | 3,216 | ||||||
2.38%, 04/15/2021 | 3,600 | 3,591 | 3.13%, 02/15/2042 | 688 | 705 | ||||||
2.38%, 01/31/2023 | 4,235 | 4,215 | 3.13%, 02/15/2043 | 4,020 | 4,101 | ||||||
2.38%, 08/15/2024 | 9,395 | 9,309 | 3.13%, 08/15/2044 | 5,100 | 5,206 | ||||||
2.38%, 05/15/2027 | 8,095 | 7,926 | 3.13%, 05/15/2048 | 4,020 | 4,096 | ||||||
2.50%, 05/31/2020 | 4,020 | 4,016 | 3.38%, 05/15/2044 | 5,540 | 5,901 | ||||||
2.50%, 06/30/2020 | 4,120 | 4,117 | 3.38%, 11/15/2048 | 2,155 | 2,305 | ||||||
2.50%, 12/31/2020 | 4,255 | 4,255 | 3.50%, 05/15/2020 | 3,097 | 3,135 | ||||||
2.50%, 03/31/2023 | 4,190 | 4,191 | 3.50%, 02/15/2039 | 100 | 109 | ||||||
2.50%, 08/15/2023 | 482 | 482 | 3.63%, 02/15/2020 | 4,696 | 4,747 | ||||||
2.50%, 05/15/2024 | 8,441 | 8,426 | 3.63%, 02/15/2021 | 4,415 | 4,517 | ||||||
2.50%, 01/31/2025 | 3,485 | 3,471 | 3.63%, 08/15/2043 | 3,390 | 3,752 | ||||||
2.50%, 02/15/2045 | 5,395 | 4,889 | 3.63%, 02/15/2044 | 5,760 | 6,381 | ||||||
2.50%, 02/15/2046 | 4,075 | 3,679 | 3.75%, 11/15/2043 | 5,670 | 6,404 | ||||||
2.50%, 05/15/2046 | 4,425 | 3,991 | 3.88%, 08/15/2040 | 3,839 | 4,409 | ||||||
2.63%, 07/31/2020 | 5,000 | 5,006 | 4.25%, 11/15/2040 | 2,060 | 2,489 | ||||||
2.63%, 08/15/2020 | 3,660 | 3,665 | 4.38%, 02/15/2038 | 860 | 1,053 | ||||||
2.63%, 08/31/2020 | 4,375 | 4,381 | 4.38%, 05/15/2040 | 2,159 | 2,650 | ||||||
2.63%, 05/15/2021 | 3,320 | 3,331 | 4.38%, 05/15/2041 | 2,440 | 3,003 | ||||||
2.63%, 06/15/2021 | 3,875 | 3,888 | 4.50%, 02/15/2036 | 1,240 | 1,528 | ||||||
2.63%, 07/15/2021 | 4,100 | 4,115 | 4.50%, 05/15/2038 | 100 | 124 | ||||||
2.63%, 12/15/2021 | 4,045 | 4,063 | 4.50%, 08/15/2039 | 666 | 830 | ||||||
2.63%, 02/28/2023 | 4,265 | 4,287 | 4.63%, 02/15/2040 | 2,900 | 3,675 | ||||||
2.63%, 06/30/2023 | 4,360 | 4,383 | 4.75%, 02/15/2037 | 790 | 1,007 | ||||||
2.63%, 12/31/2023 | 4,360 | 4,383 | 4.75%, 02/15/2041 | 2,628 | 3,396 | ||||||
2.63%, 03/31/2025 | 1,805 | 1,810 | 5.00%, 05/15/2037 | 350 | 459 | ||||||
2.63%, 12/31/2025 | 3,405 | 3,415 | 5.25%, 11/15/2028 | 1,715 | 2,089 | ||||||
2.75%, 09/30/2020 | 4,530 | 4,547 | 5.25%, 02/15/2029 | 2,000 | 2,445 | ||||||
2.75%, 11/30/2020 | 4,425 | 4,445 | 5.38%, 02/15/2031 | 3,146 | 3,997 | ||||||
2.75%, 08/15/2021 | 4,130 | 4,158 | 5.50%, 08/15/2028 | 1,000 | 1,235 | ||||||
2.75%, 09/15/2021 | 4,285 | 4,315 | 6.13%, 11/15/2027 | 1,225 | 1,556 | ||||||
2.75%, 04/30/2023 | 4,205 | 4,248 | 6.13%, 08/15/2029 | 1,000 | 1,312 | ||||||
2.75%, 05/31/2023 | 5,000 | 5,055 | 6.25%, 05/15/2030 | 2,590 | 3,474 | ||||||
2.75%, 08/31/2023 | 4,495 | 4,545 | 6.38%, 08/15/2027 | 1,830 | 2,351 | ||||||
2.75%, 11/15/2023 | 5,656 | 5,718 | 6.63%, 02/15/2027 | 1,000 | 1,291 | ||||||
2.75%, 02/15/2024 | 5,336 | 5,393 | 6.88%, 08/15/2025 | 1,000 | 1,259 | ||||||
2.75%, 02/28/2025 | 3,535 | 3,571 | 8.00%, 11/15/2021 | 510 | 588 | ||||||
2.75%, 06/30/2025 | 570 | 576 | $ | 833,844 | |||||||
2.75%, 02/15/2028 | 7,605 | 7,644 | TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY | ||||||||
2.75%, 08/15/2042 | 1,591 | 1,523 | OBLIGATIONS | $ | 1,469,789 | ||||||
2.75%, 11/15/2042 | 2,610 | 2,496 | Total Investments | $ | 2,338,350 | ||||||
2.75%, 08/15/2047 | 4,280 | 4,053 | Other Assets and Liabilities - (5.65)% | (124,995 | ) | ||||||
2.75%, 11/15/2047 | 5,265 | 4,982 | TOTAL NET ASSETS - 100.00% | $ | 2,213,355 | ||||||
2.88%, 10/31/2020 | 4,340 | 4,367 | |||||||||
2.88%, 10/15/2021 | 4,110 | 4,153 | |||||||||
2.88%, 11/15/2021 | 4,195 | 4,242 | |||||||||
2.88%, 09/30/2023 | 4,750 | 4,827 | |||||||||
2.88%, 10/31/2023 | 4,450 | 4,524 | |||||||||
2.88%, 11/30/2023 | 4,535 | 4,614 |
See accompanying notes.
148
Schedule of Investments Bond Market Index Account December 31, 2018
(a) | Current yield shown is as of period end. |
(b) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. | |
(c) | The value of these investments was determined using significant unobservableinputs. |
(d) | Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Board of Directors. Certain inputs used in the valuation may be unobservable; however, each security is evaluated individually for purposes of ASC 820 which resultsin 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 $594 or 0.03%of net assets. |
(e) | 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. |
(f) | Non-income producing security |
(g) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value ofthese securities totaled $9,996 or 0.45% of net assets. |
(h) | Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. Rate shown is the rate in effect as of period end. |
(i) | Credit support indicates investments that benefit from credit enhancement orliquidity support provided by a third party bank, institution, or government agency. |
(j) | Security was purchased in a "to-be-announced" ("TBA") transaction. See Notes to Financial Statements for additional information. |
Portfolio Summary (unaudited) | |||
Sector | Percent | ||
Government | 41.96 | % | |
Mortgage Securities | 30.92 | % | |
Financial | 8.62 | % | |
Investment Companies | 5.47 | % | |
Consumer, Non-cyclical | 4.50 | % | |
Energy | 2.62 | % | |
Communications | 2.51 | % | |
Industrial | 1.88 | % | |
Utilities | 1.80 | % | |
Technology | 1.72 | % | |
Consumer, Cyclical | 1.50 | % | |
Basic Materials | 0.67 | % | |
Asset Backed Securities | 0.64 | % | |
Revenue Bonds | 0.45 | % | |
General Obligation Unlimited | 0.28 | % | |
Insured | 0.09 | % | |
General Obligation Limited | 0.02 | % | |
Investments Sold Short | (0.51 | )% | |
Other Assets and Liabilities | (5.14 | )% | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 193,575 | $ | 534,088 | $ | 607,151 | $ | 120,512 | |||
$ | 193,575 | $ | 534,088 | $ | 607,151 | $ | 120,512 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 2,952 | $ | — | $ | — | $ | — | |||
$ | 2,952 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
149
Schedule of Investments | |||||
Bond Market Index Account | |||||
December 31, 2018 | |||||
Short Sales Outstanding | |||||
U.S. GOVERNMENT & GOVERNMENT | Principal | ||||
AGENCY OBLIGATIONS- (0.51)% | Amount (000's) | Value (000's) | |||
Federal Home Loan Mortgage Corporation (FHLMC)- (0.21)% | |||||
2.00%, 02/01/2033 | $ | 150 | 143 | ||
2.50%, 01/01/2034 | 1,000 | 976 | |||
2.50%, 01/01/2046 | 100 | 95 | |||
2.50%, 02/01/2048 | 100 | 95 | |||
3.00%, 01/15/2027 | 700 | 698 | |||
3.00%, 01/01/2043 | 2,300 | 2,241 | |||
3.00%, 02/01/2048 | 100 | 97 | |||
5.00%, 01/01/2042 | 200 | 209 | |||
5.00%, 02/01/2043 | 100 | 105 | |||
$ | 4,659 | ||||
Federal National Mortgage Association (FNMA) - (0.22)% | |||||
2.00%, 02/01/2033 | 200 | 191 | |||
2.50%, 02/01/2033 | 100 | 98 | |||
2.50%, 01/01/2034 | 800 | 781 | |||
2.50%, 01/01/2046 | 100 | 94 | |||
3.00%, 01/01/2046 | 3,400 | 3,314 | |||
5.00%, 01/01/2048 | 200 | 210 | |||
5.50%, 02/01/2043 | 200 | 212 | |||
$ | 4,900 | ||||
Government National Mortgage Association (GNMA)- (0.08)% | |||||
2.50%, 02/01/2048 | 100 | 96 | |||
3.00%, 01/01/2043 | 200 | 197 | |||
3.00%, 02/01/2046 | 200 | 197 | |||
3.50%, 01/15/2042 | 100 | 101 | |||
3.50%, 02/01/2042 | 200 | 201 | |||
4.00%, 01/01/2042 | 300 | 307 | |||
4.00%, 02/01/2043 | 200 | 204 | |||
4.50%, 02/01/2042 | 100 | 103 | |||
4.50%, 02/01/2043 | 200 | 207 | |||
5.50%, 02/01/2048 | 200 | 209 | |||
$ | 1,822 | ||||
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY | |||||
OBLIGATIONS (proceeds $11,331) | $ | 11,381 | |||
TOTAL SHORT SALES (proceeds $11,331) | $ | 11,381 |
See accompanying notes.
150
Schedule of Investments | ||||||||||||
Core Plus Bond Account | ||||||||||||
December 31, 2018 | ||||||||||||
COMMON STOCKS - 0.01% | Shares Held Value (000's) | Principal | ||||||||||
Oil & Gas- 0.01% | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||||
Patterson-UTI EnergyInc | 3,386 | $ | 35 | Airlines (continued) | ||||||||
TOTAL COMMON STOCKS | $ | 35 | American Airlines 2014-1 Class A Pass Through | |||||||||
INVESTMENT COMPANIES - 1.38% | Shares Held Value (000's) | Trust | ||||||||||
Money Market Funds- 1.38% | 3.70%, 04/01/2028 | $ | 128 | $ | 124 | |||||||
Principal Government Money Market Fund | 3,893,898 | 3,894 | American Airlines 2015-1 Class A Pass Through | |||||||||
2.11%(a),(b) | Trust | |||||||||||
TOTAL INVESTMENT COMPANIES | $ | 3,894 | 3.38%, 11/01/2028 | 25 | 24 | |||||||
PREFERRED STOCKS - 0.05% | Shares Held Value (000's) | American Airlines 2015-1 Class B Pass Through | ||||||||||
Agriculture - 0.00% | Trust | |||||||||||
Pinnacle Operating Corp 0.00%(c),(d),(e) | 81,952 | $ | 8 | 3.70%, 11/01/2024 | 14 | 13 | ||||||
Telecommunications - 0.05% | American Airlines 2016-3 Class A Pass Through | |||||||||||
Verizon CommunicationsInc5.90%, 02/15/2054 | 5,000 | 127 | Trust | |||||||||
TOTAL PREFERRED STOCKS | $ | 135 | 3.25%, 04/15/2030 | 212 | 202 | |||||||
Principal | American Airlines 2017-1 Class AA Pass Through | |||||||||||
BONDS - 66.33% | Amount (000's) Value (000's) | Trust | ||||||||||
Aerospace & Defense- 0.96% | 3.65%, 08/15/2030 | 152 | 150 | |||||||||
Air 2 US | Continental Airlines 2007-1 Class A Pass Through | |||||||||||
8.63%, 10/01/2020(f) | $ | 4 | $ | 4 | Trust | |||||||
BBA US HoldingsInc | 5.98%, 10/19/2023 | 96 | 100 | |||||||||
5.38%, 05/01/2026(f) | 25 | 24 | Continental Airlines 2012-1 Class A Pass Through | |||||||||
BombardierInc | Trust | |||||||||||
6.13%, 01/15/2023(f) | 30 | 28 | 4.15%, 10/11/2025 | 339 | 338 | |||||||
7.50%, 03/15/2025(f) | 355 | 335 | United Airlines 2014-2 Class A Pass Through | |||||||||
Triumph GroupInc | Trust | |||||||||||
7.75%, 08/15/2025 | 220 | 194 | 3.75%, 03/03/2028 | 249 | 243 | |||||||
United Technologies Corp | United Airlines 2018-1 Class A Pass Through | |||||||||||
2.80%, 05/04/2024 | 420 | 396 | Trust | |||||||||
3.10%, 06/01/2022 | 215 | 210 | 3.70%, 09/01/2031 | 205 | 200 | |||||||
3.95%, 08/16/2025 | 390 | 387 | United Airlines 2018-1 Class AA Pass Through | |||||||||
4.13%, 11/16/2028 | 890 | 882 | Trust | |||||||||
4.45%, 11/16/2038 | 115 | 112 | 3.50%, 09/01/2031 | 200 | 196 | |||||||
4.63%, 11/16/2048 | 100 | 97 | US Airways 2001-1G Pass Through Trust | |||||||||
5.40%, 05/01/2035 | 40 | 42 | 7.08%, 09/20/2022 | 10 | 11 | |||||||
$ | 2,711 | US Airways 2013-1 Class A Pass Through Trust | ||||||||||
3.95%, 05/15/2027 | 108 | 109 | ||||||||||
Agriculture - 1.26% | $ | 2,604 | ||||||||||
Altria GroupInc | ||||||||||||
2.85%, 08/09/2022 | 480 | 461 | Automobile Asset Backed Securities - 6.94% | |||||||||
4.00%, 01/31/2024 | 235 | 231 | Ally Auto Receivables Trust 2016-2 | |||||||||
4.50%, 05/02/2043 | 240 | 200 | 1.35%, 05/15/2020 | 78 | 78 | |||||||
5.38%, 01/31/2044 | 530 | 494 | AmeriCredit Automobile Receivables 2015-4 | |||||||||
BAT Capital Corp | 2.11%, 01/08/2021 | 283 | 283 | |||||||||
2.76%, 08/15/2022 | 140 | 132 | AmeriCredit Automobile Receivables Trust | |||||||||
3.20%, 08/14/2020 | 200 | 198 | 2017-4 | |||||||||
3 Month USD LIBOR + 0.59% | 2.63%, 05/18/2021 | 856 | 855 | |||||||||
3.22%, 08/15/2024 | 170 | 157 | 1.00 x 1 Month USD LIBOR + 0.18% | |||||||||
4.54%, 08/15/2047 | 90 | 72 | AmericreditAutomobile Receivables Trust 2018-2 | |||||||||
Imperial Brands Finance PLC | 2.86%, 11/18/2021 | 1,240 | 1,238 | |||||||||
3.75%, 07/21/2022(f) | 220 | 218 | Capital Auto Receivables Asset Trust 2017-1 | |||||||||
Philip Morris InternationalInc | 2.70%, 09/20/2022(f) | 585 | 579 | |||||||||
1.88%, 02/25/2021 | 80 | 78 | CarmaxAuto Owner Trust 2018-4 | |||||||||
2.38%, 08/17/2022 | 120 | 115 | 2.66%, 02/15/2022 | 2,000 | 2,000 | |||||||
4.38%, 11/15/2041 | 20 | 18 | 1.00 x 1 Month USD LIBOR + 0.20% | |||||||||
Pinnacle Operating Corp | Drive Auto Receivables Trust 2017-2 | |||||||||||
9.00%, 05/15/2023(f) | 118 | 76 | 2.25%, 06/15/2021 | 97 | 97 | |||||||
Reynolds AmericanInc | Drive Auto Receivables Trust 2017-3 | |||||||||||
5.70%, 08/15/2035 | 300 | 293 | 2.30%, 05/17/2021 | 280 | 280 | |||||||
5.85%, 08/15/2045 | 90 | 84 | Drive Auto Receivables Trust 2018-2 | |||||||||
6.88%, 05/01/2020 | 580 | 603 | 2.83%, 09/15/2020 | 394 | 394 | |||||||
7.00%, 08/04/2041 | 120 | 129 | Drive Auto Receivables Trust 2018-5 | |||||||||
$ | 3,559 | 2.78%, 07/15/2021 | 750 | 749 | ||||||||
1.00 x 1 Month USD LIBOR + 0.32% | ||||||||||||
Airlines - 0.92% | Ford Credit Auto Owner Trust 2016-A | |||||||||||
American Airlines 2013-1 Class B Pass Through | 1.39%, 07/15/2020 | 85 | 85 | |||||||||
Trust | GM Financial Automobile Leasing Trust 2016-3 | |||||||||||
5.63%, 07/15/2022(f) | 146 | 147 | 1.97%, 05/20/2020 | 300 | 299 | |||||||
American Airlines 2013-2 Class A Pass Through | 2.38%, 05/20/2020 | 300 | 299 | |||||||||
Trust | GM Financial Automobile Leasing Trust 2017-1 | |||||||||||
4.95%, 07/15/2024 | 736 | 747 | 2.48%, 08/20/2020 | 300 | 298 | |||||||
2.74%, 08/20/2020 | 200 | 199 |
See accompanying notes.
151
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Automobile Asset Backed Securities (continued) | Automobile Parts & Equipment (continued) | ||||||||||
GM Financial Automobile Leasing Trust 2017-2 | Schaeffler Finance BV | ||||||||||
1.72%, 01/21/2020 | $ | 269 | $ | 269 | 4.75%, 05/15/2023(f) | $ | 200 | $ | 191 | ||
GM Financial Automobile Leasing Trust 2017-3 | $ | 438 | |||||||||
2.71%, 01/21/2020 | 207 | 207 | Banks - 7.93% | ||||||||
1.00 x 1 Month USD LIBOR + 0.24% | Banco General SA | ||||||||||
GM Financial Automobile Leasing Trust 2018-2 | 4.13%, 08/07/2027(f) | 200 | 184 | ||||||||
2.69%, 07/20/2020 | 2,978 | 2,977 | Bank of America Corp | ||||||||
1.00 x 1 Month USD LIBOR + 0.22% | 3.50%, 05/17/2022(i) | 200 | 200 | ||||||||
GM Financial Automobile Leasing Trust 2018-3 | 3 Month USD LIBOR + 0.63% | ||||||||||
3.18%, 06/21/2021 | 600 | 601 | 4.20%, 08/26/2024 | 695 | 689 | ||||||
Hertz Fleet Lease Funding LP | 4.25%, 10/22/2026 | 611 | 594 | ||||||||
2.89%, 05/10/2032(f) | 500 | 501 | Bank of New York Mellon Corp/The | ||||||||
1.00 x 1 Month USD LIBOR + 0.50% | 4.62%, 12/31/2049(i),(j) | 400 | 359 | ||||||||
Hyundai Auto Lease Securitization Trust 2017-C | 3 Month USD LIBOR + 3.13% | ||||||||||
2.46%, 07/15/2022(f) | 650 | 644 | Barclays PLC | ||||||||
Hyundai Auto Receivables Trust 2017-A | 7.75%, 12/31/2049(i),(j) | 200 | 192 | ||||||||
1.48%, 02/18/2020 | 14 | 13 | USD Swap Semi-Annual 5 Year + 4.84% | ||||||||
Mercedes-Benz Auto Lease Trust 2018-A | BNP Paribas SA | ||||||||||
2.41%, 02/16/2021 | 400 | 398 | 6.75%, 12/31/2049(f),(i),(j) | 400 | 390 | ||||||
Nissan Auto Lease Trust 2017-A | USD Swap Semi-Annual 5 Year + 4.92% | ||||||||||
2.66%, 09/16/2019 | 350 | 350 | BPCE SA | ||||||||
1.00 x 1 Month USD LIBOR + 0.20% | 2.50%, 07/15/2019 | 450 | 448 | ||||||||
Santander Drive Auto Receivables Trust 2016-2 | CIT GroupInc | ||||||||||
2.08%, 02/16/2021 | 22 | 22 | 4.13%, 03/09/2021 | 75 | 74 | ||||||
Santander Drive Auto Receivables Trust 2018-2 | 5.25%, 03/07/2025 | 20 | 20 | ||||||||
2.71%, 10/15/2020 | 605 | 605 | 5.80%, 12/31/2049(i),(j) | 40 | 36 | ||||||
1.00 x 1 Month USD LIBOR + 0.25% | 3 Month USD LIBOR + 3.97% | ||||||||||
3.35%, 07/17/2023 | 500 | 500 | 6.13%, 03/09/2028 | 40 | 40 | ||||||
Santander Drive Auto Receivables Trust 2018-3 | CitigroupInc | ||||||||||
2.73%, 03/15/2021 | 1,162 | 1,162 | 3.44%, 07/24/2023 | 215 | 210 | ||||||
1.00 x 1 Month USD LIBOR + 0.27% | 3 Month USD LIBOR + 0.95% | ||||||||||
Santander Drive Auto Receivables Trust 2018-5 | 3.52%, 10/27/2028(i) | 940 | 877 | ||||||||
2.69%, 07/15/2021 | 3,000 | 3,000 | 3 Month USD LIBOR + 1.15% | ||||||||
1.00 x 1 Month USD LIBOR + 0.23% | 4.13%, 07/25/2028 | 745 | 699 | ||||||||
Santander Retail Auto Lease Trust 2017-A | 4.45%, 09/29/2027 | 195 | 188 | ||||||||
2.02%, 03/20/2020(f) | 297 | 296 | 4.65%, 07/23/2048 | 245 | 239 | ||||||
Wheels SPV 2 LLC | 4.75%, 05/18/2046 | 155 | 143 | ||||||||
1.88%, 04/20/2026(f) | 264 | 262 | CooperatieveRabobank UA | ||||||||
$ | 19,540 | 4.75%, 01/15/2020(f) | 490 | 498 | |||||||
Automobile Floor Plan Asset Backed Securities - 0.11% | Credit Suisse Group AG | ||||||||||
GMF Floorplan Owner Revolving Trust | 3.98%, 12/14/2023(f) | 250 | 249 | ||||||||
3.50%, 09/15/2023(f) | 300 | 304 | 3 Month USD LIBOR + 1.20% | ||||||||
Automobile Manufacturers - 0.77% | 7.13%, 12/31/2049(i),(j) | 500 | 494 | ||||||||
Allison Transmission Inc | USD Swap Semi-Annual 5 Year + 5.11% | ||||||||||
5.00%, 10/01/2024(f) | 50 | 48 | 7.50%, 12/31/2049(f),(i),(j) | 200 | 195 | ||||||
Daimler Finance North America LLC | USD Swap Semi-Annual 5 Year + 4.60% | ||||||||||
2.25%, 03/02/2020(f) | 445 | 439 | DBS Group Holdings Ltd | ||||||||
2.70%, 08/03/2020(f) | 450 | 444 | 4.52%, 12/11/2028(f),(i) | 515 | 526 | ||||||
2.85%, 01/06/2022(f) | 180 | 176 | USD Swap Rate NY 5 Year + 1.59% | ||||||||
General Motors Co | Discover Bank | ||||||||||
6.25%, 10/02/2043 | 30 | 28 | 3.10%, 06/04/2020 | 345 | 343 | ||||||
6.60%, 04/01/2036 | 275 | 268 | First Republic Bank/CA | ||||||||
General Motors Financial CoInc | 2.50%, 06/06/2022 | 250 | 242 | ||||||||
3.40%, 01/05/2023 | 450 | 427 | 4.63%, 02/13/2047 | 500 | 482 | ||||||
3 Month USD LIBOR + 0.99% | Goldman Sachs GroupInc/The | ||||||||||
3.85%, 01/05/2028 | 100 | 87 | 3.49%, 07/24/2023 | 1,160 | 1,127 | ||||||
Navistar International Corp | 3 Month USD LIBOR + 1.00% | ||||||||||
6.63%, 11/01/2025(f) | 270 | 260 | 3.85%, 01/26/2027 | 1,125 | 1,058 | ||||||
$ | 2,177 | 5.38%, 12/31/2049(i),(j) | 580 | 560 | |||||||
Automobile Parts & Equipment- 0.16% | 3 Month USD LIBOR + 3.92% | ||||||||||
American Axle & ManufacturingInc | 5.95%, 01/15/2027 | 140 | 147 | ||||||||
6.25%, 04/01/2025 | 160 | 146 | 6.75%, 10/01/2037 | 375 | 423 | ||||||
Dana Inc | JPMorgan Chase & Co | ||||||||||
5.50%, 12/15/2024 | 85 | 79 | 3.26%, 01/10/2025 | 175 | 168 | ||||||
IHO Verwaltungs GmbH | 3 Month USD LIBOR + 0.85% | ||||||||||
4.75%, PIK 5.50%, 09/15/2026(f),(g),(h) | 25 | 22 | 3.63%, 12/01/2027 | 400 | 372 | ||||||
4.62%, 12/31/2049(i),(j) | 75 | 64 | |||||||||
3 Month USD LIBOR + 2.58% |
See accompanying notes.
152
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Banks (continued) | Beverages (continued) | ||||||||||
JPMorgan Chase & Co (continued) | Corp Lindley SA | ||||||||||
4.95%, 06/01/2045 | $ | 290 | $ | 294 | 6.75%, 11/23/2021(f) | $ | 44 | $ | 46 | ||
5.63%, 08/16/2043 | 260 | 286 | 6.75%, 11/23/2021 | 66 | 69 | ||||||
Morgan Stanley | KeurigDr Pepper Inc | ||||||||||
3.95%, 04/23/2027 | 440 | 415 | 3.55%, 05/25/2021(f) | 275 | 275 | ||||||
5.00%, 11/24/2025 | 285 | 291 | 4.06%, 05/25/2023(f) | 490 | 488 | ||||||
5.55%, 12/31/2049(i),(j) | 405 | 393 | 4.42%, 05/25/2025(f) | 170 | 169 | ||||||
3 Month USD LIBOR + 3.81% | $ | 2,737 | |||||||||
6.38%, 07/24/2042 | 270 | 330 | Biotechnology- 0.21% | ||||||||
Popular Inc | AmgenInc | ||||||||||
6.13%, 09/14/2023 | 70 | 69 | 2.20%, 05/11/2020 | 315 | 311 | ||||||
Royal Bank of Canada | Celgene Corp | ||||||||||
3.70%, 10/05/2023 | 555 | 557 | 5.00%, 08/15/2045 | 220 | 204 | ||||||
Royal Bank of Scotland Group PLC | 5.25%, 08/15/2043 | 30 | 29 | ||||||||
4.09%, 05/15/2023 | 685 | 664 | Gilead SciencesInc | ||||||||
3 Month USD LIBOR + 1.47% | 2.50%, 09/01/2023 | 50 | 48 | ||||||||
5.13%, 05/28/2024 | 805 | 781 | $ | 592 | |||||||
7.50%, 12/31/2049(i),(j) | 425 | 421 | Building Materials - 0.09% | ||||||||
USD Swap Semi-Annual 5 Year + 5.80% | BMC East LLC | ||||||||||
Santander UK PLC | 5.50%, 10/01/2024(f) | 105 | 98 | ||||||||
5.00%, 11/07/2023(f) | 460 | 449 | Owens Corning | ||||||||
SkandinaviskaEnskilda Banken AB | 7.00%, 12/01/2036 | 75 | 83 | ||||||||
5.75%, 12/31/2049(i),(j) | 485 | 472 | Standard IndustriesInc/NJ | ||||||||
USD Swap Semi-Annual 5 Year + 3.85% | 4.75%, 01/15/2028(f) | 75 | 63 | ||||||||
State Street Corp | $ | 244 | |||||||||
4.14%, 12/03/2029(i) | 350 | 361 | Chemicals - 1.08% | ||||||||
3 Month USD LIBOR + 1.03% | Aruba InvestmentsInc | ||||||||||
SunTrust Bank/Atlanta GA | 8.75%, 02/15/2023(f) | 105 | 104 | ||||||||
4.05%, 11/03/2025 | 165 | 168 | Blue Cube SpincoLLC | ||||||||
Svenska HandelsbankenAB | 9.75%, 10/15/2023 | 40 | 44 | ||||||||
3.90%, 11/20/2023 | 345 | 348 | Braskem Finance Ltd | ||||||||
Synchrony Bank | 6.45%, 02/03/2024 | 200 | 210 | ||||||||
3.00%, 06/15/2022 | 650 | 607 | CF Industries Inc | ||||||||
UBS AG/London | 5.15%, 03/15/2034 | 110 | 92 | ||||||||
4.50%, 06/26/2048(f) | 200 | 207 | Consolidated Energy Finance SA | ||||||||
UBS AG/Stamford CT | 6.50%, 05/15/2026(f) | 165 | 158 | ||||||||
2.35%, 03/26/2020 | 450 | 446 | 6.88%, 06/15/2025(f) | 150 | 143 | ||||||
UBS Group Funding Switzerland AG | Dow Chemical Co/The | ||||||||||
3.57%, 08/15/2023(f) | 390 | 382 | 5.55%, 11/30/2048(f) | 55 | 56 | ||||||
3 Month USD LIBOR + 0.95% | DowDuPont Inc | ||||||||||
6.87%, 12/31/2049(i),(j) | 440 | 440 | 5.32%, 11/15/2038 | 190 | 196 | ||||||
USD Swap Rate NY 5 Year + 5.50% | 5.42%, 11/15/2048 | 130 | 135 | ||||||||
6.88%, 12/31/2049(i),(j) | 450 | 432 | GCP Applied TechnologiesInc | ||||||||
USD Swap Semi-Annual 5 Year + 4.59% | 5.50%, 04/15/2026(f) | 35 | 34 | ||||||||
Wells Fargo & Co | Israel Chemicals Ltd | ||||||||||
4.40%, 06/14/2046 | 140 | 128 | 6.38%, 05/31/2038(f) | 95 | 95 | ||||||
6.56%, 12/31/2049(j) | 65 | 65 | Mexichem SAB de CV | ||||||||
3 Month USD LIBOR + 3.77% | 4.00%, 10/04/2027(f) | 200 | 182 | ||||||||
Zions Bancorp NA | NOVA Chemicals Corp | ||||||||||
3.50%, 08/27/2021 | 790 | 788 | 5.25%, 06/01/2027(f) | 115 | 102 | ||||||
$ | 22,324 | Olin Corp | |||||||||
Beverages - 0.97% | 5.00%, 02/01/2030 | 110 | 96 | ||||||||
Anheuser-Busch Cos LLC / Anheuser-Busch | SABIC Capital II BV | ||||||||||
InBev Worldwide Inc | 4.00%, 10/10/2023(f) | 570 | 567 | ||||||||
4.70%, 02/01/2036(f) | 5 | 5 | SASOL Financing USA LLC | ||||||||
4.90%, 02/01/2046(f) | 725 | 672 | 5.88%, 03/27/2024 | 200 | 200 | ||||||
Anheuser-BuschInBev Finance Inc | 6.50%, 09/27/2028 | 200 | 200 | ||||||||
2.65%, 02/01/2021 | 301 | 296 | StarfruitFincoBV / Starfruit US Holdco LLC | ||||||||
Anheuser-BuschInBev Worldwide Inc | 8.00%, 10/01/2026(f) | 160 | 148 | ||||||||
4.38%, 04/15/2038 | 145 | 129 | Syngenta Finance NV | ||||||||
4.75%, 04/15/2058 | 70 | 61 | 5.18%, 04/24/2028(f) | 310 | 287 | ||||||
Bacardi Ltd | $ | 3,049 | |||||||||
4.70%, 05/15/2028(f) | 140 | 135 | Coal - 0.03% | ||||||||
Central American Bottling Corp | Alliance Resource Operating Partners LP / | ||||||||||
5.75%, 01/31/2027 | 165 | 162 | Alliance Resource Finance Corp | ||||||||
Constellation Brands Inc | 7.50%, 05/01/2025(f) | 75 | 75 | ||||||||
4.40%, 11/15/2025 | 230 | 230 |
See accompanying notes.
153
Schedule of Investments | |||||||||||||
Core Plus Bond Account | |||||||||||||
December 31, 2018 | |||||||||||||
Principal | Principal | ||||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||||
Commercial Mortgage Backed Securities - 5.59% | Commercial Mortgage Backed Securities (continued) | ||||||||||||
Banc of America Commercial Mortgage Trust | Morgan Stanley Bank of America Merrill Lynch | ||||||||||||
2015-UBS7 | Trust 2012-C5 | ||||||||||||
3.71%, 09/15/2048 | $ | 500 | $ | 505 | 1.47%, 08/15/2045(f),(g),(k) | $ | 3,400 | $ | 140 | ||||
BANK 2017-BNK9 | Morgan Stanley Bank of America Merrill Lynch | ||||||||||||
4.03%, 11/15/2054(g) | 500 | 498 | Trust 2014-C14 | ||||||||||
BBCMS MORTGAGE TRUST 2017-C1 | 1.09%, 02/15/2047(g),(k) | 7,749 | 249 | ||||||||||
3.67%, 02/15/2050 | 500 | 498 | Morgan Stanley Bank of America Merrill Lynch | ||||||||||
BENCHMARK 2018-B4 | Trust 2014-C16 | ||||||||||||
4.12%, 07/15/2051 | 500 | 517 | 1.12%, 06/15/2047(g),(k) | 4,214 | 158 | ||||||||
Citigroup Commercial Mortgage Trust | Morgan Stanley Bank of America Merrill Lynch | ||||||||||||
2015-GC27 | Trust 2015-C26 | ||||||||||||
3.57%, 02/10/2048 | 900 | 897 | 3.89%, 10/15/2048(g) | 250 | 251 | ||||||||
Citigroup Commercial Mortgage Trust | Morgan Stanley Bank of America Merrill Lynch | ||||||||||||
2015-GC29 | Trust 2015-C27 | ||||||||||||
4.14%, 04/10/2048(g) | 500 | 492 | 3.75%, 12/15/2047 | 100 | 101 | ||||||||
Citigroup Commercial Mortgage Trust | Morgan Stanley Bank of America Merrill Lynch | ||||||||||||
2016-GC37 | Trust 2016-C30 | ||||||||||||
3.58%, 04/10/2049 | 350 | 349 | 3.18%, 09/15/2049 | 500 | 480 | ||||||||
Citigroup Commercial Mortgage Trust 2018-B2 | MSBAM Commercial Mortgage Securities Trust | ||||||||||||
4.01%, 03/10/2051 | 350 | 357 | 2012-CKSV | ||||||||||
COMM 2013-CCRE11 Mortgage Trust | 1.08%, 10/15/2030(f),(g),(k) | 3,583 | 119 | ||||||||||
1.10%, 08/10/2050(g),(k) | 6,712 | 233 | UBS Commercial Mortgage Trust 2012-C1 | ||||||||||
COMM 2013-CCRE8 Mortgage Trust | 3.40%, 05/10/2045 | 146 | 147 | ||||||||||
3.96%, 06/10/2046(f),(g) | 350 | 355 | UBS-Barclays Commercial Mortgage Trust | ||||||||||
COMM 2015-PC1 Mortgage Trust | 2012- | C3 | |||||||||||
4.29%, 07/10/2050(g) | 250 | 256 | 3.09%, 08/10/2049 | 255 | 254 | ||||||||
COMM 2018-COR3 Mortgage Trust | UBS-Barclays Commercial Mortgage Trust | ||||||||||||
4.23%, 05/10/2051 | 1,000 | 1,032 | 2012- | C4 | |||||||||
Credit Suisse Commercial Mortgage Trust Series | 1.64%, 12/10/2045(f),(g),(k) | 1,243 | 62 | ||||||||||
2006- | C5 | 3.32%, 12/10/2045(f) | 500 | 498 | |||||||||
0.87%, 12/15/2039(g),(k) | 137 | — | UBS-Barclays Commercial Mortgage Trust | ||||||||||
DBUBS 2011-LC2 Mortgage Trust | 2013- | C5 | |||||||||||
4.54%, 07/10/2044(f) | 750 | 771 | 3.18%, 03/10/2046 | 335 | 335 | ||||||||
GS Mortgage Securities Trust 2011-GC5 | 4.08%, 03/10/2046(f),(g) | 175 | 159 | ||||||||||
1.34%, 08/10/2044(f),(g),(k) | 9,412 | 255 | Wells Fargo Commercial Mortgage Trust | ||||||||||
GS Mortgage Securities Trust 2012-GCJ7 | 2015-NXS1 | ||||||||||||
2.21%, 05/10/2045(g),(k) | 1,929 | 81 | 3.66%, 05/15/2048(g) | 500 | 491 | ||||||||
GS Mortgage Securities Trust 2013-GC16 | Wells Fargo Commercial Mortgage Trust | ||||||||||||
1.05%, 11/10/2046(g),(k) | 1,972 | 83 | 2017-C38 | ||||||||||
GS Mortgage Securities Trust 2013-GCJ12 | 3.45%, 07/15/2050 | 500 | 490 | ||||||||||
3.78%, 06/10/2046(g) | 250 | 249 | WFRBS Commercial Mortgage Trust 2013-C12 | ||||||||||
GS Mortgage Securities Trust 2014-GC26 | 1.28%, 03/15/2048(f),(g),(k) | 3,007 | 127 | ||||||||||
1.01%, 11/10/2047(g),(k) | 4,769 | 213 | WFRBS Commercial Mortgage Trust 2014-C22 | ||||||||||
GS Mortgage Securities Trust 2015-GC34 | 4.07%, 09/15/2057(g) | 500 | 512 | ||||||||||
3.51%, 10/10/2048 | 375 | 374 | $ | 15,749 | |||||||||
GS Mortgage Securities Trust 2015-GS1 | Commercial Services - 0.26% | ||||||||||||
3.73%, 11/10/2048 | 1,000 | 1,011 | Ahern RentalsInc | ||||||||||
JP Morgan Chase Commercial Mortgage | 7.38%, 05/15/2023(f) | 170 | 136 | ||||||||||
Securities Trust 2010-C1 | DP World Ltd | ||||||||||||
5.95%, 06/15/2043(f) | 400 | 403 | 6.85%, 07/02/2037 | 100 | 111 | ||||||||
JP Morgan Chase Commercial Mortgage | Garda World Security Corp | ||||||||||||
Securities Trust 2011-C5 | 8.75%, 05/15/2025(f) | 130 | 119 | ||||||||||
5.41%, 08/15/2046(f),(g) | 350 | 361 | Refinitiv US HoldingsInc | ||||||||||
JP Morgan Chase Commercial Mortgage | 6.25%, 05/15/2026(f) | 30 | 29 | ||||||||||
Securities Trust 2012-LC9 | 8.25%, 11/15/2026(f) | 45 | 41 | ||||||||||
1.53%, 12/15/2047(g),(k) | 2,424 | 105 | TMS International Corp | ||||||||||
JP Morgan Chase Commercial Mortgage | 7.25%, 08/15/2025(f) | 90 | 84 | ||||||||||
Securities Trust 2013-C16 | United Rentals North AmericaInc | ||||||||||||
0.95%, 12/15/2046(g),(k) | 8,254 | 313 | 4.63%, 10/15/2025 | 75 | 67 | ||||||||
JP Morgan Chase Commercial Mortgage | 4.88%, 01/15/2028 | 25 | 22 | ||||||||||
Securities Trust 2016-JP3 | 5.75%, 11/15/2024 | 100 | 96 | ||||||||||
3.14%, 08/15/2049 | 500 | 471 | 5.88%, 09/15/2026 | 15 | 14 | ||||||||
JPMBB Commercial Mortgage Securities Trust | $ | 719 | |||||||||||
2014-C24 | Computers - 1.19% | ||||||||||||
4.39%, 11/15/2047(g) | 500 | 497 | Apple Inc | ||||||||||
LB-UBS Commercial Mortgage Trust 2007-C1 | 2.75%, 01/13/2025 | 220 | 212 | ||||||||||
0.28%, 02/15/2040(g),(k) | 511 | — | 2.85%, 05/11/2024 | 665 | 649 | ||||||||
3.00%, 02/09/2024 | 445 | 440 |
See accompanying notes.
154
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Computers (continued) | Electric - 2.62% | ||||||||||
Apple Inc (continued) | Alabama Power Co | ||||||||||
3.35%, 02/09/2027 | $ | 1,095 | $ | 1,067 | 4.15%, 08/15/2044 | $ | 120 | $ | 117 | ||
Dell International LLC / EMC Corp | Clearway Energy Operating LLC | ||||||||||
7.13%, 06/15/2024(f) | 415 | 422 | 5.75%, 10/15/2025(f) | 75 | 72 | ||||||
8.35%, 07/15/2046(f) | 500 | 541 | CMS Energy Corp | ||||||||
West Corp | 4.70%, 03/31/2043 | 135 | 137 | ||||||||
8.50%, 10/15/2025(f) | 20 | 16 | 4.88%, 03/01/2044 | 130 | 136 | ||||||
$ | 3,347 | Consolidated Edison Co of New York Inc | |||||||||
Consumer Products - 0.05% | 4.00%, 12/01/2028 | 150 | 154 | ||||||||
Prestige BrandsInc | 4.63%, 12/01/2054 | 150 | 147 | ||||||||
6.38%, 03/01/2024(f) | 85 | 82 | Dominion EnergyInc | ||||||||
Spectrum BrandsInc | 2.58%, 07/01/2020 | 900 | 886 | ||||||||
5.75%, 07/15/2025 | 75 | 71 | 3.90%, 10/01/2025 | 115 | 115 | ||||||
$ | 153 | 4.25%, 06/01/2028 | 160 | 160 | |||||||
Credit Card Asset Backed Securities - 0.73% | DTE Energy Co | ||||||||||
Capital One Multi-Asset Execution Trust | 6.38%, 04/15/2033 | 85 | 101 | ||||||||
2.00%, 01/17/2023 | 500 | 495 | Duke Energy Florida LLC | ||||||||
Chase Issuance Trust | 3.80%, 07/15/2028 | 295 | 298 | ||||||||
2.76%, 01/15/2022 | 1,000 | 1,000 | Electricitede France SA | ||||||||
1.00 x 1 Month USD LIBOR + 0.30% | 5.63%, 12/31/2049(f),(i),(j) | 280 | 258 | ||||||||
2.87%, 05/15/2021 | 550 | 550 | USD Swap Semi-Annual 10 Year + 3.04% | ||||||||
1.00 x 1 Month USD LIBOR + 0.41% | Elwood Energy LLC | ||||||||||
$ | 2,045 | 8.16%, 07/05/2026 | 115 | 126 | |||||||
Distribution & Wholesale- 0.23% | Enel Chile SA | ||||||||||
American Builders & Contractors Supply CoInc | 4.88%, 06/12/2028 | 150 | 150 | ||||||||
5.75%, 12/15/2023(f) | 95 | 94 | Enel Finance International NV | ||||||||
5.88%, 05/15/2026(f) | 55 | 52 | 2.88%, 05/25/2022(f) | 200 | 188 | ||||||
Ferguson Finance PLC | Exelon Corp | ||||||||||
4.50%, 10/24/2028(f) | 340 | 340 | 2.85%, 06/15/2020 | 330 | 327 | ||||||
Global Partners LP / GLP Finance Corp | 3.50%, 06/01/2022 | 125 | 122 | ||||||||
7.00%, 06/15/2023 | 80 | 76 | Florida Power & Light Co | ||||||||
H&E Equipment ServicesInc | 3.95%, 03/01/2048 | 145 | 142 | ||||||||
5.63%, 09/01/2025 | 90 | 82 | 4.13%, 06/01/2048 | 105 | 105 | ||||||
$ | 644 | Fortis Inc/Canada | |||||||||
2.10%, 10/04/2021 | 185 | 178 | |||||||||
Diversified Financial Services- 1.23% | 3.06%, 10/04/2026 | 165 | 151 | ||||||||
Ally FinancialInc | Georgia Power Co | ||||||||||
5.75%, 11/20/2025 | 360 | 358 | 4.30%, 03/15/2042 | 100 | 92 | ||||||
Brookfield FinanceInc | 4.30%, 03/15/2043 | 80 | 73 | ||||||||
3.90%, 01/25/2028 | 245 | 231 | Indiantown Cogeneration LP | ||||||||
4.70%, 09/20/2047 | 390 | 359 | 9.77%, 12/15/2020 | 50 | 52 | ||||||
Brookfield Finance LLC | Kentucky Utilities Co | ||||||||||
4.00%, 04/01/2024 | 750 | 741 | 3.30%, 10/01/2025 | 190 | 185 | ||||||
Credit Acceptance Corp | Louisville Gas & Electric Co | ||||||||||
6.13%, 02/15/2021 | 105 | 105 | 3.30%, 10/01/2025 | 115 | 113 | ||||||
7.38%, 03/15/2023 | 115 | 117 | NRG EnergyInc | ||||||||
E*TRADE Financial Corp | 6.25%, 05/01/2024 | 105 | 107 | ||||||||
5.30%, 12/31/2049(i),(j) | 280 | 232 | 6.63%, 01/15/2027 | 110 | 111 | ||||||
3 Month USD LIBOR + 3.16% | Oncor Electric Delivery Co LLC | ||||||||||
Lions Gate Capital Holdings LLC | 5.25%, 09/30/2040 | 120 | 137 | ||||||||
5.88%, 11/01/2024(f) | 90 | 89 | Pacific Gas & Electric Co | ||||||||
National Rural Utilities Cooperative Finance Corp | 3.30%, 03/15/2027 | 295 | 243 | ||||||||
2.40%, 04/25/2022 | 255 | 248 | 3.30%, 12/01/2027 | 345 | 281 | ||||||
4.75%, 04/30/2043(i) | 125 | 119 | 4.45%, 04/15/2042 | 80 | 64 | ||||||
3 Month USD LIBOR + 2.91% | 5.13%, 11/15/2043 | 45 | 39 | ||||||||
Navient Corp | PacifiCorp | ||||||||||
6.13%, 03/25/2024 | 130 | 111 | 3.85%, 06/15/2021 | 150 | 152 | ||||||
6.63%, 07/26/2021 | 40 | 39 | PPL Electric Utilities Corp | ||||||||
6.75%, 06/15/2026 | 70 | 58 | 3.95%, 06/01/2047 | 85 | 82 | ||||||
Nuveen LLC | 4.75%, 07/15/2043 | 115 | 125 | ||||||||
4.00%, 11/01/2028(f) | 320 | 330 | PPL WEM Ltd / Western Power Distribution Ltd | ||||||||
Springleaf Finance Corp | 5.38%, 05/01/2021(f) | 440 | 454 | ||||||||
6.88%, 03/15/2025 | 115 | 103 | Southern Co/The | ||||||||
7.13%, 03/15/2026 | 115 | 103 | 2.95%, 07/01/2023 | 145 | 140 | ||||||
SURA Asset Management SA | 5.50%, 03/15/2057(i) | 50 | 48 | ||||||||
4.88%, 04/17/2024(f) | 125 | 124 | 3 Month USD LIBOR + 3.63% | ||||||||
$ | 3,467 | State Grid Overseas Investment 2016 Ltd | |||||||||
3.50%, 05/04/2027 | 250 | 241 |
See accompanying notes.
155
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Electric (continued) | Food (continued) | ||||||||||
Tucson Electric Power Co | Want WantChina Finance Ltd | ||||||||||
4.85%, 12/01/2048 | $ | 65 | $ | 68 | 2.88%, 04/27/2022 | $ | 200 | $ | 195 | ||
Virginia Electric & Power Co | Wm Wrigley Jr Co | ||||||||||
3.80%, 04/01/2028 | 180 | 181 | 3.38%, 10/21/2020(f) | 415 | 416 | ||||||
4.60%, 12/01/2048 | 95 | 99 | $ | 4,246 | |||||||
4.65%, 08/15/2043 | 65 | 67 | Forest Products & Paper- 0.17% | ||||||||
Vistra Energy Corp | Domtar Corp | ||||||||||
8.13%, 01/30/2026(f) | 35 | 38 | 6.25%, 09/01/2042 | 225 | 220 | ||||||
Vistra Operations Co LLC | International Paper Co | ||||||||||
5.50%, 09/01/2026(f) | 120 | 115 | 4.35%, 08/15/2048 | 250 | 214 | ||||||
$ | 7,377 | Sappi Papier Holding GmbH | |||||||||
Electrical Components & Equipment- 0.01% | 7.50%, 06/15/2032(f) | 50 | 47 | ||||||||
Energizer Gamma AcquisitionInc | $ | 481 | |||||||||
6.38%, 07/15/2026(f) | 45 | 41 | Gas- 0.11% | ||||||||
Electronics - 0.05% | Dominion Energy Gas Holdings LLC | ||||||||||
Sensata Technologies BV | 4.80%, 11/01/2043 | 10 | 10 | ||||||||
5.00%, 10/01/2025(f) | 155 | 146 | NGL Energy Partners LP / NGL Energy Finance | ||||||||
Engineering & Construction- 0.04% | Corp | ||||||||||
MasTec Inc | 7.50%, 11/01/2023 | 165 | 159 | ||||||||
4.88%, 03/15/2023 | 70 | 68 | Southern Co Gas Capital Corp | ||||||||
Tutor Perini Corp | 4.40%, 05/30/2047 | 165 | 154 | ||||||||
6.88%, 05/01/2025(f) | 60 | 56 | $ | 323 | |||||||
$ | 124 | Healthcare - Products- 0.68% | |||||||||
Entertainment - 0.29% | Abbott Laboratories | ||||||||||
Boyne USAInc | 2.90%, 11/30/2021 | 195 | 193 | ||||||||
7.25%, 05/01/2025(f) | 110 | 114 | 3.75%, 11/30/2026 | 170 | 168 | ||||||
Caesars Resort Collection LLC / CRCFinco Inc | 4.90%, 11/30/2046 | 195 | 205 | ||||||||
5.25%, 10/15/2025(f) | 160 | 138 | Agiliti HealthInc | ||||||||
CCM MergerInc | 7.63%, 08/15/2020 | 165 | 164 | ||||||||
6.00%, 03/15/2022(f) | 85 | 86 | Becton Dickinson and Co | ||||||||
Eldorado Resorts Inc | 3.77%, 06/06/2022 | 165 | 162 | ||||||||
6.00%, 04/01/2025 | 35 | 34 | 3 Month USD LIBOR + 1.03% | ||||||||
6.00%, 09/15/2026(f) | 95 | 90 | Covidien International Finance SA | ||||||||
7.00%, 08/01/2023 | 50 | 51 | 4.20%, 06/15/2020 | 480 | 488 | ||||||
Enterprise Development Authority/The | DJO Finance LLC / DJO Finance Corp | ||||||||||
12.00%, 07/15/2024(f) | 130 | 118 | 8.13%, 06/15/2021(f) | 75 | 77 | ||||||
International Game Technology PLC | Hill-Rom HoldingsInc | ||||||||||
6.50%, 02/15/2025(f) | 200 | 197 | 5.75%, 09/01/2023(f) | 60 | 60 | ||||||
$ | 828 | Kinetic ConceptsInc/ KCI USAInc | |||||||||
Environmental Control - 0.09% | 7.88%, 02/15/2021(f) | 70 | 71 | ||||||||
Waste Connections Inc | Medtronic Inc | ||||||||||
4.25%, 12/01/2028 | 255 | 261 | 2.50%, 03/15/2020 | 65 | 64 | ||||||
Food - 1.51% | 4.38%, 03/15/2035 | 245 | 251 | ||||||||
CencosudSA | $ | 1,903 | |||||||||
4.38%, 07/17/2027(f) | 220 | 191 | Healthcare - Services- 0.64% | ||||||||
General MillsInc | AHP Health PartnersInc | ||||||||||
4.55%, 04/17/2038 | 240 | 223 | 9.75%, 07/15/2026(f) | 80 | 81 | ||||||
4.70%, 04/17/2048 | 295 | 270 | Centene Corp | ||||||||
Gruma SAB de CV | 4.75%, 05/15/2022 | 40 | 40 | ||||||||
4.88%, 12/01/2024(f) | 350 | 351 | 5.38%, 06/01/2026(f) | 100 | 97 | ||||||
Ingles MarketsInc | 5.63%, 02/15/2021 | 40 | 40 | ||||||||
5.75%, 06/15/2023 | 145 | 143 | 6.13%, 02/15/2024 | 60 | 62 | ||||||
JBS USA LUX SA / JBS USA FinanceInc | HCAInc | ||||||||||
5.75%, 06/15/2025(f) | 125 | 119 | 4.75%, 05/01/2023 | 245 | 241 | ||||||
7.25%, 06/01/2021(f) | 95 | 96 | 5.00%, 03/15/2024 | 125 | 124 | ||||||
Kraft Heinz Foods Co | 5.25%, 04/15/2025 | 105 | 105 | ||||||||
2.80%, 07/02/2020 | 460 | 457 | 5.38%, 09/01/2026 | 35 | 34 | ||||||
McCormick & Co Inc/MD | 5.50%, 06/15/2047 | 50 | 47 | ||||||||
3.15%, 08/15/2024 | 325 | 313 | 5.88%, 03/15/2022 | 10 | 10 | ||||||
3.40%, 08/15/2027 | 220 | 208 | MPH Acquisition Holdings LLC | ||||||||
Nestle HoldingsInc | 7.13%, 06/01/2024(f) | 75 | 70 | ||||||||
3.35%, 09/24/2023(f) | 525 | 530 | Polaris Intermediate Corp | ||||||||
3.50%, 09/24/2025(f) | 540 | 542 | 8.50%, PIK 9.25%, 12/01/2022(f),(g),(h) | 155 | 141 | ||||||
Post HoldingsInc | Tenet Healthcare Corp | ||||||||||
5.00%, 08/15/2026(f) | 180 | 164 | 4.63%, 07/15/2024 | 95 | 88 | ||||||
5.75%, 03/01/2027(f) | 30 | 28 | UnitedHealth GroupInc | ||||||||
3.88%, 12/15/2028 | 425 | 431 | |||||||||
See accompanying notes. | 156 |
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Healthcare - Services (continued) | Insurance (continued) | ||||||||||
WellCareHealth PlansInc | XLIT Ltd (continued) | ||||||||||
5.25%, 04/01/2025 | $ | 155 | $ | 149 | 5.50%, 03/31/2045 | $ | 375 | $ | 388 | ||
5.38%, 08/15/2026(f) | 30 | 29 | $ | 6,599 | |||||||
$ | 1,789 | Internet - 0.37% | |||||||||
Home Builders- 0.20% | Alibaba Group Holding Ltd | ||||||||||
Century CommunitiesInc | 3.40%, 12/06/2027 | 200 | 185 | ||||||||
5.88%, 07/15/2025 | 165 | 145 | Baidu Inc | ||||||||
Lennar Corp | 4.38%, 05/14/2024 | 400 | 403 | ||||||||
4.50%, 04/30/2024 | 151 | 143 | NetflixInc | ||||||||
4.88%, 12/15/2023 | 40 | 38 | 4.38%, 11/15/2026 | 130 | 118 | ||||||
LGI HomesInc | TencentHoldings Ltd | ||||||||||
6.88%, 07/15/2026(f) | 75 | 67 | 2.99%, 01/19/2023(f) | 200 | 194 | ||||||
Taylor Morrison CommunitiesInc/ Taylor | Zayo Group LLC / ZayoCapital Inc | ||||||||||
Morrison Holdings IIInc | 6.00%, 04/01/2023 | 140 | 133 | ||||||||
5.63%, 03/01/2024(f) | 70 | 67 | $ | 1,033 | |||||||
Williams Scotsman InternationalInc | Iron & Steel- 0.20% | ||||||||||
7.88%, 12/15/2022(f) | 95 | 93 | AK Steel Corp | ||||||||
$ | 553 | 6.38%, 10/15/2025 | 140 | 108 | |||||||
Home Equity Asset Backed Securities- 0.07% | 7.50%, 07/15/2023 | 50 | 50 | ||||||||
Saxon Asset Securities Trust 2004-1 | 7.63%, 10/01/2021 | 25 | 22 | ||||||||
3.26%, 03/25/2035 | 124 | 67 | Cleveland-Cliffs Inc | ||||||||
1.00 x 1 Month USD LIBOR + 1.70% | 4.88%, 01/15/2024(f) | 40 | 37 | ||||||||
Specialty Underwriting & Residential Finance | Commercial Metals Co | ||||||||||
Trust Series 2004-BC1 | 4.88%, 05/15/2023 | 77 | 73 | ||||||||
3.27%, 02/25/2035 | 123 | 122 | Vale Overseas Ltd | ||||||||
1.00 x 1 Month USD LIBOR + 0.77% | 4.38%, 01/11/2022 | 35 | 36 | ||||||||
$ | 189 | 6.25%, 08/10/2026 | 120 | 129 | |||||||
Insurance - 2.34% | 6.88%, 11/21/2036 | 96 | 110 | ||||||||
AIA Group Ltd | $ | 565 | |||||||||
3.20%, 03/11/2025(f) | 410 | 395 | Leisure Products & Services- 0.07% | ||||||||
3.90%, 04/06/2028(f) | 625 | 625 | Constellation Merger SubInc | ||||||||
American International GroupInc | 8.50%, 09/15/2025(f) | 80 | 72 | ||||||||
3.90%, 04/01/2026 | 805 | 774 | Silversea Cruise Finance Ltd | ||||||||
4.50%, 07/16/2044 | 305 | 272 | 7.25%, 02/01/2025(f) | 120 | 127 | ||||||
Arch Capital Finance LLC | $ | 199 | |||||||||
4.01%, 12/15/2026 | 265 | 265 | Lodging - 0.10% | ||||||||
5.03%, 12/15/2046 | 115 | 120 | Jack Ohio Finance LLC / Jack Ohio Finance 1 | ||||||||
AssuredPartners Inc | Corp | ||||||||||
7.00%, 08/15/2025(f) | 60 | 54 | 6.75%, 11/15/2021(f) | 140 | 141 | ||||||
AXA Equitable HoldingsInc | Wynn Las Vegas LLC / Wynn Las Vegas Capital | ||||||||||
5.00%, 04/20/2048(f) | 460 | 408 | Corp | ||||||||
AXA SA | 5.25%, 05/15/2027(f) | 110 | 97 | ||||||||
5.12%, 01/17/2047(i) | 300 | 284 | 5.50%, 03/01/2025(f) | 50 | 47 | ||||||
3 Month USD LIBOR + 3.88% | $ | 285 | |||||||||
HUB International Ltd | Machinery - Construction & Mining- 0.03% | ||||||||||
7.00%, 05/01/2026(f) | 25 | 23 | BWX TechnologiesInc | ||||||||
Liberty Mutual GroupInc | 5.38%, 07/15/2026(f) | 75 | 72 | ||||||||
5.69%, 03/07/2067(f) | 260 | 242 | Machinery - Diversified- 0.05% | ||||||||
3 Month USD LIBOR + 2.91% | Cloud Crane LLC | ||||||||||
Markel Corp | 10.13%, 08/01/2024(f) | 130 | 134 | ||||||||
3.50%, 11/01/2027 | 130 | 123 | |||||||||
4.30%, 11/01/2047 | 95 | 83 | Media - 2.88% | ||||||||
5.00%, 04/05/2046 | 280 | 278 | 21st Century Fox AmericaInc | ||||||||
Nuveen Finance LLC | 3.00%, 09/15/2022 | 170 | 168 | ||||||||
4.13%, 11/01/2024(f) | 640 | 652 | 5.40%, 10/01/2043 | 230 | 265 | ||||||
Prudential Financial Inc | 6.15%, 02/15/2041 | 35 | 44 | ||||||||
5.63%, 06/15/2043(i) | 225 | 220 | 6.20%, 12/15/2034 | 80 | 97 | ||||||
3 Month USD LIBOR + 3.92% | 6.40%, 12/15/2035 | 405 | 505 | ||||||||
Voya FinancialInc | Altice Financing SA | ||||||||||
5.65%, 05/15/2053(i) | 475 | 446 | 6.63%, 02/15/2023(f) | 200 | 192 | ||||||
3 Month USD LIBOR + 3.58% | AMC Networks Inc | ||||||||||
6.13%, 12/31/2049(i),(j) | 50 | 47 | 4.75%, 08/01/2025 | 115 | 104 | ||||||
US Treasury Yield Curve Rate T Note | 5.00%, 04/01/2024 | 60 | 57 | ||||||||
Constant Maturity 5 Year + 3.36% | CCO Holdings LLC / CCO Holdings Capital Corp | ||||||||||
XLIT Ltd | 5.13%, 05/01/2023(f) | 430 | 418 | ||||||||
4.45%, 03/31/2025 | 685 | 681 | 5.50%, 05/01/2026(f) | 35 | 34 | ||||||
4.89%, 12/31/2049(j) | 235 | 219 | |||||||||
3 Month USD LIBOR + 2.46% |
See accompanying notes.
157
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Media (continued) | Mining (continued) | ||||||||||
Charter Communications Operating LLC / Charter | IAMGOLD Corp | ||||||||||
Communications Operating Capital | 7.00%, 04/15/2025(f) | $ | 230 | $ | 216 | ||||||
3.58%, 07/23/2020 | $ | 305 | $ | 305 | Newmont Mining Corp | ||||||
5.75%, 04/01/2048 | 250 | 234 | 5.13%, 10/01/2019 | 150 | 152 | ||||||
6.48%, 10/23/2045 | 150 | 154 | Northwest Acquisitions ULC / DominionFinco | ||||||||
Comcast Corp | Inc | ||||||||||
3.38%, 02/15/2025 | 335 | 328 | 7.13%, 11/01/2022(f) | 35 | 35 | ||||||
3.95%, 10/15/2025 | 200 | 202 | Taseko Mines Ltd | ||||||||
4.15%, 10/15/2028 | 405 | 411 | 8.75%, 06/15/2022(f) | 150 | 135 | ||||||
4.20%, 08/15/2034 | 160 | 154 | Teck Resources Ltd | ||||||||
4.60%, 10/15/2038 | 405 | 409 | 3.75%, 02/01/2023 | 15 | 14 | ||||||
4.60%, 08/15/2045 | 160 | 156 | 6.25%, 07/15/2041 | 125 | 118 | ||||||
4.70%, 10/15/2048 | 330 | 334 | 8.50%, 06/01/2024(f) | 15 | 16 | ||||||
CSC Holdings LLC | $ | 1,917 | |||||||||
10.13%, 01/15/2023(f) | 215 | 231 | Miscellaneous Manufacturers - 0.14% | ||||||||
Discovery Communications LLC | General Electric Co | ||||||||||
5.00%, 09/20/2037 | 205 | 190 | 4.50%, 03/11/2044 | 90 | 73 | ||||||
DISH DBS Corp | 5.55%, 01/05/2026 | 180 | 176 | ||||||||
5.88%, 07/15/2022 | 300 | 276 | 6.88%, 01/10/2039 | 145 | 152 | ||||||
5.88%, 11/15/2024 | 90 | 73 | $ | 401 | |||||||
7.75%, 07/01/2026 | 20 | 17 | Mortgage Backed Securities - 1.75% | ||||||||
GrupoTelevisaSAB | Fannie Mae REMIC Trust 2005-W2 | ||||||||||
5.00%, 05/13/2045 | 200 | 175 | 2.71%, 05/25/2035 | 47 | 47 | ||||||
Meredith Corp | 1.00 x 1 Month USD LIBOR + 0.20% | ||||||||||
6.88%, 02/01/2026(f) | 220 | 215 | Fannie Mae REMICS | ||||||||
Myriad International Holdings BV | 2.25%, 07/25/2040 | 106 | 103 | ||||||||
4.85%, 07/06/2027(f) | 200 | 192 | 3.00%, 04/25/2022(k) | 357 | 13 | ||||||
NBCUniversalMedia LLC | 3.00%, 04/25/2027(k) | 267 | 23 | ||||||||
4.45%, 01/15/2043 | 145 | 140 | 3.50%, 11/25/2027(k) | 188 | 17 | ||||||
5.15%, 04/30/2020 | 505 | 519 | 3.50%, 07/25/2028(k) | 360 | 34 | ||||||
Radiate Holdco LLC / Radiate FinanceInc | 3.50%, 03/25/2031(k) | 432 | 32 | ||||||||
6.63%, 02/15/2025(f) | 35 | 30 | 3.59%, 02/25/2043(k) | 386 | 61 | ||||||
6.88%, 02/15/2023(f) | 40 | 36 | (1.00) x 1 Month USD LIBOR + 6.10% | ||||||||
Time Warner Cable LLC | 3.59%, 09/25/2046(k) | 332 | 49 | ||||||||
5.88%, 11/15/2040 | 135 | 129 | (1.00) x 1 Month USD LIBOR + 6.10% | ||||||||
ViacomInc | 3.64%, 09/25/2047(k) | 873 | 163 | ||||||||
4.25%, 09/01/2023 | 110 | 110 | (1.00) x 1 Month USD LIBOR + 6.15% | ||||||||
4.38%, 03/15/2043 | 250 | 197 | 3.99%, 03/25/2022(k) | 31 | 1 | ||||||
Virgin Media Finance PLC | (1.00) x 1 Month USD LIBOR + 6.50% | ||||||||||
6.00%, 10/15/2024(f) | 200 | 192 | Freddie Mac REMICS | ||||||||
Warner Media LLC | 3.00%, 09/15/2025(k) | 92 | 3 | ||||||||
2.10%, 06/01/2019 | 135 | 134 | 3.00%, 03/15/2026(k) | 265 | 10 | ||||||
3.88%, 01/15/2026 | 175 | 167 | 3.00%, 05/15/2027(k) | 256 | 17 | ||||||
4.05%, 12/15/2023 | 135 | 135 | 3.00%, 10/15/2027(k) | 115 | 10 | ||||||
5.38%, 10/15/2041 | 130 | 125 | 3.50%, 11/15/2020(k) | 224 | 6 | ||||||
Ziggo Bond Co BV | 3.50%, 09/15/2026(k) | 618 | 54 | ||||||||
6.00%, 01/15/2027(f) | 150 | 131 | 4.00%, 11/15/2038(k) | 571 | 44 | ||||||
Ziggo BV | GinnieMae | ||||||||||
5.50%, 01/15/2027(f) | 150 | 134 | 3.63%, 06/20/2046(k) | 790 | 136 | ||||||
$ | 8,119 | (1.00) x 1 Month USD LIBOR + 6.10% | |||||||||
Metal Fabrication & Hardware- 0.02% | 3.73%, 11/20/2045(k) | 2,098 | 350 | ||||||||
Park-Ohio IndustriesInc | (1.00) x 1 Month USD LIBOR + 6.20% | ||||||||||
6.63%, 04/15/2027 | 60 | 57 | 3.73%, 08/20/2047(k) | 953 | 191 | ||||||
Mining - 0.68% | (1.00) x 1 Month USD LIBOR + 6.20% | ||||||||||
Corp Nacional delCobre de Chile | 3.73%, 09/20/2047(k) | 3,246 | 657 | ||||||||
4.50%, 09/16/2025(f) | 450 | 456 | (1.00) x 1 Month USD LIBOR + 6.20% | ||||||||
First Quantum Minerals Ltd | 3.78%, 06/20/2044(k) | 1,168 | 134 | ||||||||
7.50%, 04/01/2025(f) | 200 | 165 | (1.00) x 1 Month USD LIBOR + 6.25% | ||||||||
FMG Resources August 2006 Pty Ltd | 4.19%, 04/16/2042(k) | 1,312 | 261 | ||||||||
5.13%, 03/15/2023(f) | 80 | 75 | (1.00) x 1 Month USD LIBOR + 6.65% | ||||||||
5.13%, 05/15/2024(f) | 25 | 23 | 4.50%, 04/16/2044(k) | 316 | 62 | ||||||
Glencore Finance Canada Ltd | HomeBanc Mortgage Trust 2005-5 | ||||||||||
5.55%, 10/25/2042(f) | 255 | 230 | 2.85%, 01/25/2036 | 324 | 322 | ||||||
Glencore Funding LLC | 1.00 x 1 Month USD LIBOR + 0.34% | ||||||||||
3.88%, 10/27/2027(f) | 250 | 223 | JP Morgan Mortgage Trust 2016-2 | ||||||||
HudbayMinerals Inc | 2.83%, 06/25/2046(f),(g) | 485 | 480 | ||||||||
7.63%, 01/15/2025(f) | 60 | 59 | JP Morgan Mortgage Trust 2016-3 | ||||||||
3.50%, 10/25/2046(f),(g) | 425 | 420 |
See accompanying notes.
158
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Mortgage Backed Securities (continued) | Oil & Gas (continued) | ||||||||||
Sequoia Mortgage Trust 2016-3 | Nabors IndustriesInc | ||||||||||
3.50%, 11/25/2046(f),(g) | $ | 1,157 | $ | 1,142 | 5.75%, 02/01/2025 | $ | 70 | $ | 53 | ||
Washington Mutual Mortgage Pass-Through | Newfield Exploration Co | ||||||||||
Certificates WMALT Series 2006-AR1 Trust | 5.38%, 01/01/2026 | 480 | 470 | ||||||||
2.76%, 02/25/2036 | 91 | 80 | 5.63%, 07/01/2024 | 140 | 142 | ||||||
1.00 x 1 Month USD LIBOR + 0.25% | Oasis PetroleumInc | ||||||||||
$ | 4,922 | 6.25%, 05/01/2026(f) | 40 | 34 | |||||||
Oil & Gas- 3.23% | 6.88%, 01/15/2023 | 140 | 129 | ||||||||
Ascent Resources Utica Holdings LLC / ARU | Petrobras Global Finance BV | ||||||||||
Finance Corp | 6.25%, 03/17/2024 | 155 | 157 | ||||||||
7.00%, 11/01/2026(f) | 55 | 50 | 7.38%, 01/17/2027 | 220 | 226 | ||||||
10.00%, 04/01/2022(f) | 78 | 80 | Petroleos Mexicanos | ||||||||
BP Capital Markets America Inc | 6.50%, 03/13/2027 | 325 | 305 | ||||||||
3.02%, 01/16/2027 | 165 | 155 | 6.50%, 01/23/2029 | 70 | 65 | ||||||
BP Capital Markets PLC | Sanchez Energy Corp | ||||||||||
3.16%, 05/10/2019 | 650 | 650 | 7.25%, 02/15/2023(f) | 80 | 65 | ||||||
3 Month USD LIBOR + 0.54% | Shell International Finance BV | ||||||||||
Canadian Natural Resources Ltd | 4.00%, 05/10/2046 | 80 | 77 | ||||||||
3.85%, 06/01/2027 | 360 | 340 | Sinopec Group Overseas Development 2017 Ltd | ||||||||
3.90%, 02/01/2025 | 145 | 141 | 2.50%, 09/13/2022(f) | 325 | 312 | ||||||
4.95%, 06/01/2047 | 85 | 82 | Southwestern Energy Co | ||||||||
Chesapeake Energy Corp | 7.75%, 10/01/2027 | 150 | 142 | ||||||||
7.00%, 10/01/2024 | 115 | 99 | Suncor EnergyInc | ||||||||
8.00%, 01/15/2025 | 95 | 84 | 4.00%, 11/15/2047 | 85 | 76 | ||||||
8.00%, 06/15/2027 | 90 | 76 | Sunoco LP / Sunoco Finance Corp | ||||||||
Chesapeake Oil Op/Fin Escrow Shares | 4.88%, 01/15/2023 | 100 | 97 | ||||||||
0.00%, 11/15/2019(c),(e),(l) | 90 | — | 5.50%, 02/15/2026 | 55 | 52 | ||||||
Concho ResourcesInc | Ultra ResourcesInc | ||||||||||
4.38%, 01/15/2025 | 250 | 247 | 6.88%, 04/15/2022(f) | 65 | 23 | ||||||
Continental Resources Inc/OK | Unit Corp | ||||||||||
3.80%, 06/01/2024 | 770 | 729 | 6.63%, 05/15/2021 | 80 | 73 | ||||||
4.38%, 01/15/2028 | 360 | 339 | Valero Energy Corp | ||||||||
4.90%, 06/01/2044 | 470 | 416 | 4.35%, 06/01/2028 | 90 | 89 | ||||||
CrownRockLP /CrownRock Finance Inc | Whiting Petroleum Corp | ||||||||||
5.63%, 10/15/2025(f) | 95 | 85 | 5.75%, 03/15/2021 | 60 | 57 | ||||||
EcopetrolSA | 6.25%, 04/01/2023 | 75 | 68 | ||||||||
7.38%, 09/18/2043 | 65 | 72 | 6.63%, 01/15/2026 | 30 | 26 | ||||||
Encana Corp | WildHorseResource Development Corp | ||||||||||
5.15%, 11/15/2041 | 115 | 114 | 6.88%, 02/01/2025 | 105 | 99 | ||||||
6.50%, 05/15/2019 | 810 | 818 | $ | 9,095 | |||||||
6.50%, 02/01/2038 | 45 | 49 | Oil & Gas Services- 0.43% | ||||||||
Endeavor Energy Resources LP / EER Finance | Archrock Partners LP / ArchrockPartners Finance | ||||||||||
Inc | Corp | ||||||||||
5.50%, 01/30/2026(f) | 75 | 77 | 6.00%, 10/01/2022 | 80 | 75 | ||||||
EP Energy LLC / Everest Acquisition FinanceInc | Baker Hughes a GE Co LLC / Baker Hughes Co- | ||||||||||
7.75%, 05/15/2026(f) | 25 | 22 | ObligorInc | ||||||||
8.00%, 11/29/2024(f) | 155 | 115 | 3.34%, 12/15/2027 | 150 | 138 | ||||||
Extraction Oil & GasInc | 4.08%, 12/15/2047 | 540 | 445 | ||||||||
7.38%, 05/15/2024(f) | 95 | 78 | CalfracHoldings LP | ||||||||
Gulfport Energy Corp | 8.50%, 06/15/2026(f) | 115 | 82 | ||||||||
6.38%, 05/15/2025 | 155 | 137 | Halliburton Co | ||||||||
HalconResources Corp | 3.80%, 11/15/2025 | 125 | 121 | ||||||||
6.75%, 02/15/2025 | 65 | 47 | 4.75%, 08/01/2043 | 115 | 110 | ||||||
Hess Infrastructure Partners LP / Hess | PHIInc | ||||||||||
Infrastructure Partners Finance Corp | 5.25%, 03/15/2019 | 25 | 17 | ||||||||
5.63%, 02/15/2026(f) | 100 | 97 | Schlumberger Investment SA | ||||||||
Jagged Peak Energy LLC | 3.30%, 09/14/2021(f) | 85 | 85 | ||||||||
5.88%, 05/01/2026(f) | 75 | 70 | USA Compression Partners LP / USA | ||||||||
Kerr-McGee Corp | Compression Finance Corp | ||||||||||
7.88%, 09/15/2031 | 115 | 138 | 6.88%, 04/01/2026(f) | 70 | 67 | ||||||
Marathon Oil Corp | Weatherford International Ltd | ||||||||||
4.40%, 07/15/2027 | 250 | 238 | 4.50%, 04/15/2022 | 30 | 18 | ||||||
5.20%, 06/01/2045 | 135 | 125 | 8.25%, 06/15/2023 | 45 | 27 | ||||||
6.60%, 10/01/2037 | 330 | 370 | 9.88%, 02/15/2024 | 50 | 30 | ||||||
Marathon Petroleum Corp | $ | 1,215 | |||||||||
4.75%, 09/15/2044 | 36 | 32 | Other Asset Backed Securities - 3.05% | ||||||||
MEG Energy Corp | CNH Equipment Trust 2014-C | ||||||||||
6.50%, 01/15/2025(f) | 85 | 86 | 1.65%, 09/15/2021 | 216 | 216 |
See accompanying notes.
159
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Other Asset Backed Securities (continued) | Pharmaceuticals (continued) | ||||||||||
Dell Equipment Finance Trust 2017-2 | Valeant Pharmaceuticals International | ||||||||||
2.47%, 10/24/2022(f) | $ | 500 | $ | 495 | 8.50%, 01/31/2027(f) | $ | 30 | $ | 29 | ||
Dell Equipment Finance Trust 2018-1 | Zoetis Inc | ||||||||||
2.80%, 10/22/2020(f) | 2,450 | 2,453 | 3.90%, 08/20/2028 | 320 | 314 | ||||||
1.00 x 1 Month USD LIBOR + 0.30% | 4.45%, 08/20/2048 | 95 | 93 | ||||||||
MMAF Equipment Finance LLC 2017-B | $ | 4,358 | |||||||||
1.93%, 10/15/2020(f) | 270 | 269 | Pipelines - 2.13% | ||||||||
Verizon Owner Trust 2017-1 | Abu Dhabi Crude Oil Pipeline LLC | ||||||||||
2.06%, 09/20/2021(f) | 1,500 | 1,489 | 3.65%, 11/02/2029(f) | 200 | 190 | ||||||
Verizon Owner Trust 2017-2 | AndeavorLogistics LP / Tesoro Logistics Finance | ||||||||||
1.92%, 12/20/2021(f) | 500 | 495 | Corp | ||||||||
Verizon Owner Trust 2017-3 | 4.25%, 12/01/2027 | 160 | 151 | ||||||||
2.74%, 04/20/2022(f) | 2,350 | 2,349 | Antero Midstream Partners LP / Antero | ||||||||
1.00 x 1 Month USD LIBOR + 0.27% | Midstream Finance Corp | ||||||||||
Verizon Owner Trust 2018-1 | 5.38%, 09/15/2024 | 75 | 70 | ||||||||
2.82%, 09/20/2022(f) | 822 | 820 | Cheniere Corpus Christi Holdings LLC | ||||||||
$ | 8,586 | 5.13%, 06/30/2027 | 75 | 71 | |||||||
Packaging & Containers- 0.52% | Columbia Pipeline GroupInc | ||||||||||
ARD Securities Finance SARL | 3.30%, 06/01/2020 | 400 | 399 | ||||||||
8.75%, PIK 8.75%, 01/31/2023(f),(g),(h) | 16 | 13 | DCP Midstream Operating LP | ||||||||
Ardagh Packaging Finance PLC / Ardagh | 5.35%, 03/15/2020(f) | 450 | 452 | ||||||||
Holdings USAInc | Enable Midstream Partners LP | ||||||||||
6.00%, 02/15/2025(f) | 200 | 185 | 4.40%, 03/15/2027 | 145 | 135 | ||||||
BWAY Holding Co | EnbridgeInc | ||||||||||
7.25%, 04/15/2025(f) | 175 | 157 | 6.00%, 01/15/2077(i) | 165 | 148 | ||||||
Crown Americas LLC / Crown Americas Capital | 3 Month USD LIBOR + 3.89% | ||||||||||
Corp V | Energy Transfer Operating LP | ||||||||||
4.25%, 09/30/2026 | 43 | 39 | 4.90%, 03/15/2035 | 100 | 89 | ||||||
Crown Americas LLC / Crown Americas Capital | 5.15%, 03/15/2045 | 95 | 82 | ||||||||
Corp VI | EnLink Midstream Partners LP | ||||||||||
4.75%, 02/01/2026(f) | 180 | 170 | 4.40%, 04/01/2024 | 320 | 302 | ||||||
Crown Cork & Seal CoInc | Enterprise Products Operating LLC | ||||||||||
7.38%, 12/15/2026 | 132 | 141 | 4.85%, 03/15/2044 | 135 | 131 | ||||||
Flex Acquisition Co Inc | 5.38%, 02/15/2078(i) | 250 | 207 | ||||||||
6.88%, 01/15/2025(f) | 145 | 129 | 3 Month USD LIBOR + 2.57% | ||||||||
Packaging Corp of America | Kinder Morgan Energy Partners LP | ||||||||||
4.50%, 11/01/2023 | 420 | 430 | 4.70%, 11/01/2042 | 300 | 261 | ||||||
Reynolds Group IssuerInc/ Reynolds | Kinder MorganInc/DE | ||||||||||
Group Issuer LLC / Reynolds Group Issuer | 3.05%, 12/01/2019 | 100 | 99 | ||||||||
(Luxembourg) S.A. | 5.63%, 11/15/2023(f) | 215 | 227 | ||||||||
5.13%, 07/15/2023(f) | 140 | 133 | MPLX LP | ||||||||
5.94%, 07/15/2021(f) | 40 | 40 | 4.50%, 07/15/2023 | 290 | 293 | ||||||
3 Month USD LIBOR + 3.50% | 4.80%, 02/15/2029 | 65 | 65 | ||||||||
7.00%, 07/15/2024(f) | 15 | 14 | NuStar Logistics LP | ||||||||
$ | 1,451 | 5.63%, 04/28/2027 | 100 | 93 | |||||||
Pharmaceuticals - 1.55% | ONEOK Partners LP | ||||||||||
AbbVieInc | 3.80%, 03/15/2020 | 390 | 391 | ||||||||
3.38%, 11/14/2021 | 185 | 185 | Plains All American Pipeline LP / PAA Finance | ||||||||
4.25%, 11/14/2028 | 90 | 87 | Corp | ||||||||
Allergan Funding SCS | 4.50%, 12/15/2026 | 95 | 91 | ||||||||
3.85%, 06/15/2024 | 170 | 168 | Sabine Pass Liquefaction LLC | ||||||||
4.55%, 03/15/2035 | 15 | 14 | 4.20%, 03/15/2028 | 150 | 143 | ||||||
Bausch Health CosInc | 5.00%, 03/15/2027 | 190 | 191 | ||||||||
5.63%, 12/01/2021(f) | 40 | 39 | 5.75%, 05/15/2024 | 215 | 224 | ||||||
Bayer US Finance II LLC | Summit Midstream Holdings LLC / Summit | ||||||||||
3.88%, 12/15/2023(f) | 200 | 196 | Midstream Finance Corp | ||||||||
4.38%, 12/15/2028(f) | 795 | 759 | 5.75%, 04/15/2025 | 80 | 74 | ||||||
Cigna Corp | Targa Resources Partners LP / Targa Resources | ||||||||||
3.75%, 07/15/2023(f) | 185 | 184 | Partners Finance Corp | ||||||||
4.13%, 11/15/2025(f) | 350 | 349 | 5.88%, 04/15/2026(f) | 60 | 58 | ||||||
4.38%, 10/15/2028(f) | 645 | 649 | TransCanada PipeLines Ltd | ||||||||
CVS Health Corp | 4.63%, 03/01/2034 | 80 | 76 | ||||||||
4.30%, 03/25/2028 | 290 | 283 | 7.13%, 01/15/2019 | 95 | 95 | ||||||
4.75%, 12/01/2022 | 215 | 222 | Transportadorade GasInternacionalSA ESP | ||||||||
4.78%, 03/25/2038 | 170 | 163 | 5.55%, 11/01/2028(f) | 200 | 202 | ||||||
4.88%, 07/20/2035 | 190 | 184 | |||||||||
5.00%, 12/01/2024 | 410 | 430 | |||||||||
5.05%, 03/25/2048 | 10 | 10 |
See accompanying notes.
160
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Pipelines (continued) | Savings & Loans- 0.21% | ||||||||||
Western Gas Partners LP | Nationwide Building Society | ||||||||||
4.50%, 03/01/2028 | $ | 185 | $ | 173 | 4.12%, 10/18/2032(f),(i) | $ | 660 | $ | 584 | ||
4.65%, 07/01/2026 | 165 | 160 | USD Swap Rate NY 5 Year + 1.85% | ||||||||
5.30%, 03/01/2048 | 45 | 39 | Semiconductors - 0.72% | ||||||||
5.45%, 04/01/2044 | 205 | 184 | NXP BV / NXP Funding LLC | ||||||||
Williams Cos Inc/The | 3.88%, 09/01/2022(f) | 250 | 240 | ||||||||
4.30%, 03/04/2024 | 110 | 110 | 4.63%, 06/15/2022(f) | 470 | 463 | ||||||
5.75%, 06/24/2044 | 320 | 322 | 4.63%, 06/01/2023(f) | 400 | 392 | ||||||
$ | 5,998 | QUALCOMMInc | |||||||||
Private Equity- 0.06% | 3.25%, 01/30/2023 | 170 | 169 | ||||||||
Icahn Enterprises LP / Icahn Enterprises Finance | 3 Month USD LIBOR + 0.73% | ||||||||||
Corp | Texas Instruments Inc | ||||||||||
6.25%, 02/01/2022 | 105 | 104 | 4.15%, 05/15/2048 | 215 | 215 | ||||||
6.38%, 12/15/2025 | 65 | 62 | XilinxInc | ||||||||
$ | 166 | 2.95%, 06/01/2024 | 570 | 544 | |||||||
Regional Authority- 0.04% | $ | 2,023 | |||||||||
Provinciade Buenos Aires/Argentina | Software - 0.60% | ||||||||||
7.88%, 06/15/2027 | 150 | 108 | Epicor Software Corp | ||||||||
REITs - 0.92% | 10.05%, 06/30/2023(f) | 59 | 57 | ||||||||
Alexandria Real Estate Equities Inc | 3 Month USD LIBOR + 7.25% | ||||||||||
3.45%, 04/30/2025 | 865 | 833 | Fiserv Inc | ||||||||
4.70%, 07/01/2030 | 250 | 253 | 3.80%, 10/01/2023 | 200 | 201 | ||||||
Camden Property Trust | 4.20%, 10/01/2028 | 160 | 160 | ||||||||
4.10%, 10/15/2028 | 460 | 466 | Microsoft Corp | ||||||||
CC Holdings GS V LLC / Crown Castle GS III | 3.70%, 08/08/2046 | 185 | 177 | ||||||||
Corp | 4.45%, 11/03/2045 | 110 | 117 | ||||||||
3.85%, 04/15/2023 | 510 | 505 | 4.50%, 02/06/2057 | 90 | 96 | ||||||
Equinix Inc | Oracle Corp | ||||||||||
5.38%, 04/01/2023 | 115 | 114 | 2.95%, 11/15/2024 | 175 | 171 | ||||||
5.88%, 01/15/2026 | 40 | 40 | 3.80%, 11/15/2037 | 275 | 257 | ||||||
Iron Mountain Inc | 4.00%, 11/15/2047 | 260 | 242 | ||||||||
4.38%, 06/01/2021(f) | 115 | 114 | 6.13%, 07/08/2039 | 180 | 216 | ||||||
Iron Mountain US HoldingsInc | $ | 1,694 | |||||||||
5.38%, 06/01/2026(f) | 65 | 59 | Sovereign - 1.73% | ||||||||
MGM Growth Properties Operating Partnership | Argentine Republic Government International | ||||||||||
LP / MGP Finance Co-IssuerInc | Bond | ||||||||||
5.63%, 05/01/2024 | 90 | 89 | 5.63%, 01/26/2022 | 335 | 283 | ||||||
SBA Tower Trust | 5.88%, 01/11/2028 | 115 | 83 | ||||||||
2.90%, 10/11/2044(f) | 125 | 124 | 6.88%, 01/26/2027 | 100 | 76 | ||||||
$ | 2,597 | CoBank ACB | |||||||||
Retail - 0.80% | 6.25%, 12/31/2049(i),(j) | 115 | 115 | ||||||||
1011778 BC ULC / New Red FinanceInc | 3 Month USD LIBOR + 4.66% | ||||||||||
5.00%, 10/15/2025(f) | 145 | 133 | Colombia Government International Bond | ||||||||
Golden NuggetInc | 5.00%, 06/15/2045 | 200 | 190 | ||||||||
6.75%, 10/15/2024(f) | 130 | 123 | Croatia Government International Bond | ||||||||
Home DepotInc/The | 6.00%, 01/26/2024 | 200 | 216 | ||||||||
3.25%, 03/01/2022 | 250 | 253 | 6.38%, 03/24/2021 | 200 | 210 | ||||||
3.90%, 12/06/2028 | 130 | 133 | Dominican Republic International Bond | ||||||||
5.88%, 12/16/2036 | 130 | 156 | 6.00%, 07/19/2028(f) | 150 | 150 | ||||||
IRB Holding Corp | Ecuador Government International Bond | ||||||||||
6.75%, 02/15/2026(f) | 75 | 66 | 10.75%, 03/28/2022 | 200 | 202 | ||||||
JC Penney CorpInc | Egypt Government International Bond | ||||||||||
8.63%, 03/15/2025(f) | 25 | 13 | 5.58%, 02/21/2023(f) | 200 | 190 | ||||||
KFC Holding Co/Pizza Hut Holdings LLC/Taco | Hungary Government International Bond | ||||||||||
Bell of America LLC | 5.38%, 02/21/2023 | 120 | 127 | ||||||||
5.00%, 06/01/2024(f) | 40 | 39 | Indonesia Government International Bond | ||||||||
L Brands Inc | 5.38%, 10/17/2023(f) | 500 | 522 | ||||||||
6.88%, 11/01/2035 | 90 | 75 | Mexico Government International Bond | ||||||||
McDonald's Corp | 4.15%, 03/28/2027 | 200 | 193 | ||||||||
2.75%, 12/09/2020 | 85 | 84 | Panama Government International Bond | ||||||||
3.80%, 04/01/2028 | 235 | 231 | 3.88%, 03/17/2028 | 200 | 197 | ||||||
4.45%, 09/01/2048 | 495 | 471 | Qatar Government International Bond | ||||||||
4.88%, 12/09/2045 | 80 | 81 | 3.25%, 06/02/2026 | 400 | 386 | ||||||
Walmart Inc | 3.88%, 04/23/2023(f) | 200 | 202 | ||||||||
3.40%, 06/26/2023 | 235 | 237 | Russian Foreign Bond - Eurobond | ||||||||
3.95%, 06/28/2038 | 160 | 158 | 4.75%, 05/27/2026 | 200 | 198 | ||||||
4.05%, 06/29/2048 | 10 | 10 | |||||||||
$ | 2,263 |
See accompanying notes.
161
Schedule of Investments | |||||||||||||
Core Plus Bond Account | |||||||||||||
December 31, 2018 | |||||||||||||
Principal | Principal | ||||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||||
Sovereign (continued) | Telecommunications (continued) | ||||||||||||
Saudi Government International Bond | Sprint Capital Corp | ||||||||||||
2.38%, 10/26/2021 | $ | 400 | $ | 385 | 8.75%, 03/15/2032 | $ | 155 | $ | 163 | ||||
4.00%, 04/17/2025(f) | 200 | 198 | Sprint CommunicationsInc | ||||||||||
Turkey Government International Bond | 6.00%, 11/15/2022 | 10 | 10 | ||||||||||
4.88%, 10/09/2026 | 200 | 177 | 7.00%, 08/15/2020 | 135 | 138 | ||||||||
5.75%, 03/22/2024 | 400 | 387 | Sprint Corp | ||||||||||
Ukraine Government International Bond | 7.13%, 06/15/2024 | 140 | 139 | ||||||||||
9.75%, 11/01/2028(f) | 200 | 187 | 7.63%, 03/01/2026 | 35 | 35 | ||||||||
$ | 4,874 | 7.88%, 09/15/2023 | 135 | 138 | |||||||||
Student Loan Asset Backed Securities - 1.84% | Telecom Italia Capital SA | ||||||||||||
NavientPrivate Education Loan Trust 2018-B | 6.38%, 11/15/2033 | 25 | 23 | ||||||||||
2.81%, 12/15/2059(f) | 2,250 | 2,247 | Telefonica EmisionesSA | ||||||||||
1.00 x 1 Month USD LIBOR + 0.35% | 5.21%, 03/08/2047 | 220 | 201 | ||||||||||
NavientPrivate Education Refi Loan Trust | T-Mobile USAInc | ||||||||||||
2018 | -A | 5.13%, 04/15/2025 | 320 | 311 | |||||||||
2.53%, 02/18/2042(f) | 399 | 396 | 6.00%, 04/15/2024 | 95 | 95 | ||||||||
NavientPrivate Education Refi Loan Trust | 6.50%, 01/15/2024 | 30 | 31 | ||||||||||
2018 | -C | 6.50%, 01/15/2026 | 95 | 97 | |||||||||
3.01%, 06/16/2042(f) | 616 | 614 | VEON Holdings BV | ||||||||||
NavientStudent Loan Trust 2017-3 | 3.95%, 06/16/2021(f) | 200 | 193 | ||||||||||
2.81%, 07/26/2066(f) | 574 | 574 | Verizon CommunicationsInc | ||||||||||
1.00 x 1 Month USD LIBOR + 0.30% | 4.50%, 08/10/2033 | 270 | 266 | ||||||||||
NavientStudent Loan Trust 2018-2 | 5.01%, 08/21/2054 | 70 | 68 | ||||||||||
2.75%, 03/25/2067(f) | 193 | 193 | 5.25%, 03/16/2037 | 260 | 271 | ||||||||
1.00 x 1 Month USD LIBOR + 0.24% | $ | 5,449 | |||||||||||
SMB Private Education Loan Trust 2017-B | Transportation - 0.60% | ||||||||||||
2.73%, 06/17/2024(f) | 791 | 791 | Burlington Northern Santa Fe LLC | ||||||||||
1.00 x 1 Month USD LIBOR + 0.27% | 4.15%, 12/15/2048 | 165 | 161 | ||||||||||
SoFi Professional Loan Program 2016-D LLC | 4.38%, 09/01/2042 | 125 | 125 | ||||||||||
1.53%, 04/25/2033(f) | 4 | 4 | Canadian National Railway Co | ||||||||||
Sofi Professional Loan Program 2017-B LLC | 4.45%, 01/20/2049 | 305 | 323 | ||||||||||
1.83%, 05/25/2040(f) | 149 | 148 | CSX Corp | ||||||||||
Sofi Professional Loan Program 2018-A LLC | 4.75%, 11/15/2048 | 180 | 182 | ||||||||||
2.39%, 02/25/2042(f) | 208 | 206 | EletsonHoldingsInc/EletsonFinance US LLC / | ||||||||||
$ | 5,173 | AgathonissosFinance LLC | |||||||||||
Telecommunications - 1.94% | 9.62%, 01/15/2022(g) | 121 | 46 | ||||||||||
AT&T Inc | NaviosMaritime Acquisition Corp /Navios | ||||||||||||
4.30%, 02/15/2030 | 810 | 765 | Acquisition Finance USInc | ||||||||||
4.90%, 08/15/2037 | 325 | 303 | 8.13%, 11/15/2021(f) | 305 | 229 | ||||||||
5.15%, 03/15/2042 | 50 | 47 | NaviosMaritime HoldingsInc/Navios Maritime | ||||||||||
5.45%, 03/01/2047 | 165 | 161 | Finance II USInc | ||||||||||
6.38%, 03/01/2041 | 135 | 146 | 7.38%, 01/15/2022(f) | 140 | 88 | ||||||||
British Telecommunications PLC | 11.25%, 08/15/2022(f) | 105 | 79 | ||||||||||
4.50%, 12/04/2023 | 200 | 203 | NaviosSouth American LogisticsInc/Navios | ||||||||||
5.13%, 12/04/2028 | 305 | 307 | Logistics Finance USInc | ||||||||||
Embarq Corp | 7.25%, 05/01/2022(f) | 185 | 167 | ||||||||||
8.00%, 06/01/2036 | 75 | 68 | Union Pacific Corp | ||||||||||
Empresa Nacional de TelecomunicacionesSA | 3.50%, 06/08/2023 | 220 | 220 | ||||||||||
4.75%, 08/01/2026(f) | 200 | 188 | 4.38%, 11/15/2065 | 60 | 55 | ||||||||
Frontier Communications Corp | $ | 1,675 | |||||||||||
8.50%, 04/01/2026(f) | 170 | 149 | Trucking & Leasing- 0.14% | ||||||||||
11.00%, 09/15/2025 | 130 | 81 | AvolonHoldings Funding Ltd | ||||||||||
Goodman NetworksInc | 5.13%, 10/01/2023(f) | 10 | 9 | ||||||||||
8.00%, 05/11/2022 | 31 | 11 | 5.50%, 01/15/2023(f) | 180 | 175 | ||||||||
GTT CommunicationsInc | DAE Funding LLC | ||||||||||||
7.88%, 12/31/2024(f) | 120 | 104 | 4.50%, 08/01/2022(f) | 50 | 48 | ||||||||
Intelsat Jackson Holdings SA | 5.00%, 08/01/2024(f) | 95 | 92 | ||||||||||
5.50%, 08/01/2023 | 150 | 130 | 5.25%, 11/15/2021(f) | 25 | 24 | ||||||||
8.00%, 02/15/2024(f) | 90 | 93 | Park Aerospace Holdings Ltd | ||||||||||
8.50%, 10/15/2024(f) | 115 | 111 | 5.50%, 02/15/2024(f) | 35 | 34 | ||||||||
Level 3 FinancingInc | $ | 382 | |||||||||||
5.13%, 05/01/2023 | 35 | 34 | TOTAL BONDS | $ | 186,733 | ||||||||
5.38%, 01/15/2024 | 80 | 76 | SENIOR FLOATING RATE INTERESTS | Principal | |||||||||
Level 3 Parent LLC | - 2.07 | % | Amount (000's) Value (000's) | ||||||||||
5.75%, 12/01/2022 | 55 | 54 | Aerospace & Defense- 0.01% | ||||||||||
OoredooInternational Finance Ltd | TransDigmInc | ||||||||||||
3.88%, 01/31/2028 | 250 | 239 | 5.02%, 06/09/2023(m) | $ | 35 | $ | 33 | ||||||
US LIBOR + 2.50% |
See accompanying notes.
162
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
SENIOR FLOATING RATE INTERESTS | Principal | SENIOR FLOATING RATE INTERESTS | Principal | ||||||||
(continued) | Amount (000’s) Value (000’s) | (continued) | Amount (000’s) Value (000’s) | ||||||||
Automobile Manufacturers - 0.07% | Entertainment - 0.13% | ||||||||||
Navistar Financial Corp | CCM MergerInc | ||||||||||
6.31%, 07/30/2025(m) | $ | 160 | $ | 152 | 4.77%, 08/06/2021(m) | $ | 99 | $ | 96 | ||
US LIBOR + 3.75% | US LIBOR + 2.25% | ||||||||||
Navistar Inc | Eldorado Resorts Inc | ||||||||||
5.89%, 11/06/2024(m) | 59 | 57 | 4.50%, 04/17/2024(m) | 20 | 19 | ||||||
US LIBOR + 3.50% | US LIBOR + 2.25% | ||||||||||
$ | 209 | Stars Group Holdings BV | |||||||||
Automobile Parts & Equipment- 0.01% | 6.30%, 06/27/2025(m) | 45 | 43 | ||||||||
American Axle & ManufacturingInc | US LIBOR + 3.50% | ||||||||||
4.75%, 04/06/2024(m) | 43 | 41 | WMG Acquisition Corp | ||||||||
US LIBOR + 2.25% | 4.65%, 11/01/2023(m) | 214 | 205 | ||||||||
Chemicals - 0.10% | US LIBOR + 2.13% | ||||||||||
Aruba InvestmentsInc | $ | 363 | |||||||||
5.77%, 02/02/2022(m) | 34 | 33 | Environmental Control - 0.03% | ||||||||
US LIBOR + 3.25% | Filtration Group Corp | ||||||||||
Consolidated Energy Finance SA | 5.52%, 03/31/2025(m) | 74 | 72 | ||||||||
4.71%, 05/07/2025(m) | 95 | 92 | US LIBOR + 3.00% | ||||||||
US LIBOR + 2.50% | Food - 0.05% | ||||||||||
Emerald Performance Materials LLC | JBS USA LUX SA | ||||||||||
10.27%, 08/01/2022(m) | 105 | 104 | 5.26%, 10/30/2022(m) | 68 | 66 | ||||||
US LIBOR + 6.75% | US LIBOR + 2.50% | ||||||||||
Starfruit US Holdco LLC | Post HoldingsInc | ||||||||||
5.60%, 10/01/2025(m) | 65 | 62 | 4.32%, 05/24/2024(m) | 73 | 70 | ||||||
US LIBOR + 3.25% | US LIBOR + 2.00% | ||||||||||
$ | 291 | $ | 136 | ||||||||
Commercial Services - 0.14% | Healthcare - Products- 0.05% | ||||||||||
Garda World Security Corp | DJO Finance LLC | ||||||||||
6.24%, 05/24/2024(m) | 69 | 66 | 5.71%, 06/08/2020(m) | 44 | 44 | ||||||
US LIBOR + 3.50% | US LIBOR + 3.25% | ||||||||||
Prime Security Services Borrower LLC | Kinetic ConceptsInc | ||||||||||
5.27%, 05/02/2022(m) | 108 | 103 | 6.05%, 02/02/2024(m) | 104 | 99 | ||||||
US LIBOR + 2.75% | US LIBOR + 3.25% | ||||||||||
Refinitiv US HoldingsInc | $ | 143 | |||||||||
6.27%, 09/18/2025(m) | 185 | 175 | Healthcare - Services- 0.14% | ||||||||
US LIBOR + 3.75% | Acadia Healthcare CoInc | ||||||||||
TMS International Corp | 5.02%, 02/16/2023(m) | 43 | 41 | ||||||||
5.28%, 08/14/2024(m) | 64 | 60 | US LIBOR + 2.50% | ||||||||
US LIBOR + 2.75% | AHP Health PartnersInc | ||||||||||
$ | 404 | 7.02%, 06/16/2025(m) | 70 | 69 | |||||||
Computers - 0.07% | US LIBOR + 4.50% | ||||||||||
Dell International LLC | MPH Acquisition Holdings LLC | ||||||||||
4.53%, 09/07/2023(m) | 73 | 70 | 5.55%, 06/07/2023(m) | 78 | 74 | ||||||
US LIBOR + 2.00% | US LIBOR + 3.00% | ||||||||||
McAfee LLC | RegionalCare Hospital Partners HoldingsInc | ||||||||||
11.01%, 09/29/2025(m) | 118 | 117 | 7.13%, 11/14/2025(m) | 225 | 213 | ||||||
US LIBOR + 8.50% | US LIBOR + 4.50% | ||||||||||
$ | 187 | $ | 397 | ||||||||
Consumer Products - 0.03% | Insurance - 0.12% | ||||||||||
Prestige BrandsInc | Asurion LLC | ||||||||||
4.52%, 01/26/2024(m) | 93 | 90 | 5.52%, 11/03/2023(m) | 92 | 88 | ||||||
US LIBOR + 2.00% | US LIBOR + 3.00% | ||||||||||
Diversified Financial Services- 0.13% | 9.02%, 08/04/2025(m) | 30 | 29 | ||||||||
Lions Gate Capital Holdings LLC | US LIBOR + 6.50% | ||||||||||
4.77%, 03/24/2025(m) | 94 | 90 | Genworth HoldingsInc | ||||||||
US LIBOR + 2.25% | 6.71%, 03/07/2023(m) | 149 | 146 | ||||||||
Russell Investments US Institutional HoldcoInc | US LIBOR + 4.50% | ||||||||||
5.77%, 06/01/2023(m) | 286 | 279 | HUB International Ltd | ||||||||
US LIBOR + 3.25% | 5.24%, 04/25/2025(m) | 85 | 80 | ||||||||
$ | 369 | US LIBOR + 3.00% | |||||||||
Electric - 0.03% | $ | 343 | |||||||||
Vistra Operations Co LLC | Leisure Products & Services- 0.03% | ||||||||||
4.47%, 12/14/2025(m) | 75 | 72 | ClubCorp HoldingsInc | ||||||||
US LIBOR + 2.00% | 5.55%, 09/18/2024(m) | 83 | 78 | ||||||||
Electrical Components & Equipment- 0.06% | US LIBOR + 2.75% | ||||||||||
Energizer HoldingsInc | |||||||||||
0.00%, 12/17/2025(m),(n) | 160 | 154 | |||||||||
US LIBOR + 2.25% |
See accompanying notes.
163
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
SENIOR FLOATING RATE INTERESTS | Principal | SENIOR FLOATING RATE INTERESTS | Principal | ||||||||
(continued) | Amount (000’s) Value (000’s) | (continued) | Amount (000’s) Value (000’s) | ||||||||
Lodging - 0.04% | Retail (continued) | ||||||||||
Caesars Resort Collection LLC | JC Penney CorpInc | ||||||||||
5.27%, 12/22/2024(m) | $ | 49 | $ | 47 | 6.96%, 06/23/2023(m) | $ | 42 | $ | 36 | ||
US LIBOR + 2.75% | US LIBOR + 4.25% | ||||||||||
Golden Nugget LLC | KFC Holding Co | ||||||||||
5.20%, 10/04/2023(m) | 14 | 13 | 4.09%, 04/03/2025(m) | 43 | 42 | ||||||
US LIBOR + 2.75% | US LIBOR + 1.75% | ||||||||||
Marriott Ownership ResortsInc | Michaels StoresInc | ||||||||||
4.77%, 08/29/2025(m) | 55 | 54 | 5.01%, 01/28/2023(m) | 38 | 37 | ||||||
US LIBOR + 2.25% | US LIBOR + 2.50% | ||||||||||
$ | 114 | PetSmartInc | |||||||||
Media - 0.02% | 5.38%, 03/11/2022(m) | 174 | 137 | ||||||||
Meredith Corp | US LIBOR + 3.00% | ||||||||||
5.27%, 01/31/2025(m) | 50 | 49 | $ | 533 | |||||||
US LIBOR + 2.75% | Telecommunications - 0.22% | ||||||||||
Oil & Gas- 0.10% | AvayaInc | ||||||||||
California Resources Corp | 6.46%, 12/16/2024(m) | 223 | 214 | ||||||||
7.26%, 12/31/2022(m) | 155 | 150 | US LIBOR + 4.25% | ||||||||
US LIBOR + 4.75% | Level 3 Parent LLC | ||||||||||
12.90%, 12/31/2021(m) | 140 | 137 | 4.69%, 02/22/2024(m) | 45 | 43 | ||||||
US LIBOR + 10.37% | US LIBOR + 2.25% | ||||||||||
$ | 287 | MaxarTechnologies Ltd | |||||||||
Packaging & Containers- 0.07% | 5.15%, 10/05/2024(m) | 307 | 282 | ||||||||
Berry GlobalInc | US LIBOR + 2.75% | ||||||||||
4.39%, 10/01/2022(m) | 30 | 29 | West Corp | ||||||||
US LIBOR + 2.00% | 6.53%, 10/10/2024(m) | 79 | 72 | ||||||||
Caraustar Industries Inc | US LIBOR + 4.00% | ||||||||||
8.30%, 03/14/2022(m) | 98 | 97 | $ | 611 | |||||||
US LIBOR + 5.50% | Transportation - 0.01% | ||||||||||
CROWN Americas LLC | Navios Maritime Partners LP | ||||||||||
4.48%, 04/03/2025(m) | 19 | 19 | 7.78%, 09/14/2020(m) | 27 | 27 | ||||||
US LIBOR + 2.00% | US LIBOR + 5.00% | ||||||||||
Flex Acquisition Co Inc | Trucking & Leasing- 0.03% | ||||||||||
5.35%, 12/29/2023(m) | 34 | 32 | AvolonTLB Borrower 1 US LLC | ||||||||
US LIBOR + 3.00% | 4.47%, 01/15/2025(m) | 87 | 84 | ||||||||
Reynolds Group HoldingsInc | US LIBOR + 2.00% | ||||||||||
5.27%, 02/05/2023(m) | 34 | 33 | TOTAL SENIOR FLOATING RATE INTERESTS | $ | 5,813 | ||||||
US LIBOR + 2.75% | U.S. GOVERNMENT & GOVERNMENT | Principal | |||||||||
$ | 210 | AGENCY OBLIGATIONS- 38.53% | Amount (000's) Value (000's) | ||||||||
Pharmaceuticals - 0.15% | Federal Home Loan Mortgage Corporation (FHLMC)- 3.55% | ||||||||||
Valeant Pharmaceuticals International | 3.00%, 11/01/2042 | $ | 312 | $ | 307 | ||||||
5.13%, 11/14/2025(m) | 173 | 163 | 3.00%, 03/01/2043 | 1,367 | 1,344 | ||||||
US LIBOR + 2.75% | 3.00%, 10/01/2046 | 1,307 | 1,277 | ||||||||
5.38%, 05/19/2025(m) | 257 | 245 | 3.00%, 01/01/2047 | 2,522 | 2,466 | ||||||
US LIBOR + 3.00% | 3.62%, 02/01/2037 | 20 | 21 | ||||||||
$ | 408 | 1.00 x 12 Month USD LIBOR + 1.63% | |||||||||
Pipelines - 0.03% | 3.77%, 02/01/2034 | 2 | 2 | ||||||||
Centurion Pipeline Co LLC | 1.00 x 12 Month USD LIBOR + 1.99% | ||||||||||
6.05%, 09/26/2025(m) | 75 | 71 | 4.00%, 04/01/2047 | 439 | 449 | ||||||
US LIBOR + 3.25% | 4.00%, 11/01/2047 | 693 | 709 | ||||||||
REITs - 0.01% | 4.50%, 07/01/2024 | 20 | 21 | ||||||||
MGM Growth Properties Operating Partnership | 4.50%, 12/01/2043 | 1,083 | 1,127 | ||||||||
LP | 4.50%, 09/01/2044 | 265 | 276 | ||||||||
4.52%, 04/25/2025(m) | 39 | 37 | 4.50%, 03/01/2046 | 326 | 342 | ||||||
US LIBOR + 2.00% | 5.00%, 06/01/2031 | 113 | 119 | ||||||||
Retail - 0.19% | 5.00%, 10/01/2035 | 42 | 44 | ||||||||
Academy Ltd | 5.00%, 06/01/2041 | 1,161 | 1,235 | ||||||||
6.35%, 07/01/2022(m) | 132 | 87 | 6.00%, 06/01/2032 | 25 | 27 | ||||||
US LIBOR + 4.00% | 6.00%, 10/01/2032 | 14 | 15 | ||||||||
Beacon Roofing SupplyInc | 6.00%, 01/01/2038 | 65 | 72 | ||||||||
4.68%, 01/02/2025(m) | 35 | 33 | 6.50%, 03/01/2029 | 4 | 4 | ||||||
US LIBOR + 2.25% | 6.50%, 05/01/2029 | 5 | 6 | ||||||||
GYP Holdings III Corp | 6.50%, 04/01/2031 | 2 | 2 | ||||||||
5.27%, 06/01/2025(m) | 60 | 57 | 6.50%, 02/01/2032 | 5 | 5 | ||||||
US LIBOR + 2.75% | 6.50%, 05/01/2032 | 5 | 5 | ||||||||
IRB Holding Corp | 6.50%, 04/01/2035 | 8 | 9 | ||||||||
5.68%, 01/17/2025(m) | 110 | 104 | 7.00%, 12/01/2029 | 14 | 15 | ||||||
US LIBOR + 3.25% | 7.00%, 06/01/2030 | 4 | 4 | ||||||||
7.00%, 12/01/2030 | 1 | 1 |
See accompanying notes.
164
Schedule of Investments | |||||||||||
Core Plus Bond Account | |||||||||||
December 31, 2018 | |||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal Home Loan Mortgage Corporation (FHLMC) (continued) | Federal National Mortgage Association (FNMA) (continued) | ||||||||||
7.00%, 01/01/2031 | $ | 2 | $ | 2 | 6.00%, 07/01/2035 | $ | 160 | $ | 174 | ||
7.00%, 12/01/2031 | 31 | 32 | 6.00%, 02/01/2037 | 116 | 125 | ||||||
7.50%, 04/01/2030 | 1 | 2 | 6.00%, 02/01/2038 | 59 | 65 | ||||||
7.50%, 03/01/2031 | 9 | 10 | 6.50%, 03/01/2032 | 4 | 4 | ||||||
8.00%, 09/01/2030 | 33 | 35 | 6.50%, 07/01/2037 | 36 | 39 | ||||||
$ | 9,985 | 6.50%, 07/01/2037 | 21 | 24 | |||||||
Federal National Mortgage Association (FNMA) - 16.33% | 6.50%, 02/01/2038 | 39 | 44 | ||||||||
2.50%, 03/01/2030 | 551 | 539 | 6.50%, 03/01/2038 | 15 | 17 | ||||||
3.00%, 01/01/2028(o) | 5,200 | 5,187 | 6.50%, 09/01/2038 | 133 | 149 | ||||||
3.00%, 10/01/2030 | 1,549 | 1,550 | $ | 45,976 | |||||||
3.00%, 03/01/2034 | 335 | 333 | Government National Mortgage Association (GNMA)- 7.32% | ||||||||
3.00%, 11/01/2042 | 887 | 872 | 3.00%, 02/15/2043 | 395 | 390 | ||||||
3.00%, 05/01/2043 | 195 | 192 | 3.00%, 07/20/2044 | 614 | 609 | ||||||
3.00%, 01/01/2046(o) | 2,500 | 2,437 | 3.00%, 01/20/2046 | 462 | 456 | ||||||
3.50%, 04/01/2030 | 399 | 404 | 3.00%, 07/20/2046 | 749 | 739 | ||||||
3.50%, 08/01/2034 | 402 | 409 | 3.00%, 12/20/2046 | 2,037 | 2,008 | ||||||
3.50%, 01/01/2041 | 43 | 43 | 3.50%, 04/20/2046 | 218 | 221 | ||||||
3.50%, 11/01/2042 | 972 | 981 | 3.50%, 10/20/2046 | 339 | 341 | ||||||
3.50%, 01/01/2043(o) | 1,625 | 1,625 | 3.50%, 07/20/2047 | 1,361 | 1,368 | ||||||
3.50%, 07/01/2043 | 316 | 318 | 3.50%, 01/01/2048 | 3,050 | 3,069 | ||||||
3.50%, 07/01/2043 | 929 | 936 | 3.75%, 07/20/2043 | 117 | 120 | ||||||
3.50%, 09/01/2044 | 2,174 | 2,184 | 1.00 x US Treasury Yield Curve Rate T | ||||||||
3.50%, 11/01/2044 | 1,918 | 1,925 | Note Constant Maturity 1 Year + 1.50% | ||||||||
3.50%, 11/01/2045 | 2,998 | 3,018 | 4.00%, 02/15/2042 | 154 | 159 | ||||||
3.50%, 04/01/2046 | 579 | 581 | 4.00%, 06/20/2046 | 87 | 89 | ||||||
3.50%, 08/01/2047 | 1,805 | 1,816 | 4.00%, 01/01/2048 | 2,000 | 2,048 | ||||||
3.50%, 10/01/2047 | 1,841 | 1,849 | 4.00%, 01/20/2048 | 2,067 | 2,137 | ||||||
3.50%, 11/01/2047 | 813 | 815 | 4.50%, 09/15/2039 | 622 | 657 | ||||||
3.50%, 03/01/2048 | 1,192 | 1,196 | 4.50%, 11/15/2040 | 121 | 126 | ||||||
4.00%, 10/01/2019 | 4 | 4 | 4.50%, 01/01/2048 | 3,635 | 3,761 | ||||||
4.00%, 08/01/2020 | 43 | 44 | 4.50%, 06/20/2048 | 49 | 51 | ||||||
4.00%, 03/01/2034 | 447 | 463 | 5.00%, 02/15/2034 | 247 | 261 | ||||||
4.00%, 11/01/2040 | 1,473 | 1,515 | 5.00%, 10/15/2034 | 89 | 94 | ||||||
4.00%, 05/01/2041 | 225 | 231 | 5.00%, 10/20/2039 | 48 | 51 | ||||||
4.00%, 09/01/2043 | 652 | 670 | 5.00%, 07/20/2040 | 27 | 29 | ||||||
4.00%, 06/01/2044 | 310 | 319 | 5.00%, 02/15/2042 | 99 | 105 | ||||||
4.00%, 05/01/2045 | 514 | 526 | 5.00%, 01/01/2048 | 1,000 | 1,041 | ||||||
4.00%, 12/01/2045 | 796 | 814 | 5.50%, 12/20/2033 | 120 | 129 | ||||||
4.00%, 04/01/2047 | 434 | 444 | 5.50%, 05/20/2035 | 14 | 15 | ||||||
4.00%, 05/01/2047 | 893 | 910 | 6.00%, 01/20/2029 | 23 | 25 | ||||||
4.00%, 06/01/2047 | 901 | 922 | 6.00%, 07/20/2029 | 4 | 4 | ||||||
4.00%, 09/01/2047 | 911 | 929 | 6.00%, 12/15/2033 | 29 | 31 | ||||||
4.00%, 10/01/2047 | 464 | 473 | 6.00%, 12/20/2036 | 63 | 68 | ||||||
4.00%, 01/01/2048(o) | 1,500 | 1,529 | 6.50%, 03/20/2028 | 4 | 4 | ||||||
4.00%, 04/01/2048 | 1,427 | 1,462 | 6.50%, 05/20/2029 | 3 | 4 | ||||||
4.33%, 07/01/2034 | 1 | 1 | 6.50%, 12/15/2032 | 349 | 380 | ||||||
1.00 x US Treasury Yield Curve Rate T | 7.00%, 03/15/2031 | 9 | 10 | ||||||||
Note Constant Maturity 1 Year + 2.21% | 7.50%, 05/15/2029 | 15 | 15 | ||||||||
4.50%, 07/01/2025 | 51 | 52 | 8.00%, 12/15/2030 | 6 | 7 | ||||||
4.50%, 11/01/2040 | 876 | 917 | $ | 20,622 | |||||||
4.50%, 09/01/2041 | 270 | 282 | U.S. Treasury- 11.33% | ||||||||
4.50%, 01/01/2042(o) | 1,750 | 1,812 | 1.25%, 10/31/2021 | 1,555 | 1,503 | ||||||
4.50%, 12/01/2044 | 132 | 138 | 1.25%, 07/31/2023 | 1,405 | 1,329 | ||||||
5.00%, 10/01/2041 | 198 | 210 | 1.50%, 08/15/2026 | 1,420 | 1,310 | ||||||
5.00%, 01/01/2048(o) | 500 | 524 | 1.63%, 10/31/2023 | 370 | 355 | ||||||
5.50%, 06/01/2019 | 2 | 2 | 1.75%, 04/30/2022(p) | 3,385 | 3,307 | ||||||
5.50%, 07/01/2019 | 1 | 1 | 1.88%, 11/30/2021 | 2,550 | 2,508 | ||||||
5.50%, 07/01/2019 | 1 | 1 | 2.00%, 05/31/2021 | 720 | 712 | ||||||
5.50%, 08/01/2019 | 2 | 2 | 2.00%, 10/31/2022 | 4,500 | 4,420 | ||||||
5.50%, 10/01/2019 | 4 | 4 | 2.13%, 11/30/2023(q) | 1,140 | 1,119 | ||||||
5.50%, 10/01/2019 | 3 | 3 | 2.25%, 08/15/2046 | 1,090 | 931 | ||||||
5.50%, 12/01/2022 | 14 | 15 | 2.63%, 07/31/2020 | 3,000 | 3,004 | ||||||
5.50%, 07/01/2033 | 257 | 277 | 2.75%, 08/15/2042 | 210 | 201 | ||||||
5.50%, 04/01/2035 | 24 | 25 | 2.88%, 08/15/2045 | 545 | 531 | ||||||
5.50%, 08/01/2036 | 510 | 549 | 3.00%, 11/15/2044 | 1,450 | 1,448 | ||||||
5.50%, 02/01/2037 | 5 | 6 | 3.00%, 05/15/2045 | 2,640 | 2,635 | ||||||
5.50%, 05/01/2040 | 43 | 46 | 3.00%, 11/15/2045 | 2,000 | 1,996 | ||||||
6.00%, 05/01/2031 | 2 | 3 | 3.75%, 11/15/2043 | 1,500 | 1,694 |
See accompanying notes.
165
Schedule of Investments Core Plus Bond Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | (j) | Perpetual security. Perpetual securities pay an indefinite stream of interest, | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) | Value (000’s) | but they may be called by the issuer at an earlier date. Date shown, if any, | ||||||||
U.S. Treasury (continued) | reflects the next call date or final legal maturity date. Rate shown is as of | ||||||||||
4.75%, 02/15/2037 | $ | 2,260 | $ | 2,880 | period end. | ||||||
$ | 31,883 | (k) | Security is an Interest Only Strip. | ||||||||
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY | (l) | The value of these investments was determined using significant unobservable | |||||||||
OBLIGATIONS | $ | 108,466 | inputs. | ||||||||
Total Investments | $ | 305,076 | (m) | Rate information disclosed is based on an average weighted rate of the | |||||||
Other Assets and Liabilities - (8.37)% | (23,556 | ) | underlying tranches as of period end. | ||||||||
TOTAL NET ASSETS - 100.00% | $ | 281,520 | (n) | This Senior Floating Rate Note will settle after December 31, 2018, at which | |||||||
time the interest rate will be determined. | |||||||||||
(o) | Security was purchased in a "to-be-announced" ("TBA") transaction. See | ||||||||||
(a) | Affiliated Security. Security is either an affiliate (and registered under the | Notes to Financial Statements for additional information. | |||||||||
Investment Company Act of 1940) or an affiliate as defined by the Investment | (p) | Security or a portion of the security was pledged to cover margin requirements | |||||||||
Company Act of 1940 (controls 5.0% or more of the outstanding voting | for swap and/or swaption contracts. At the end of the period, the value of these | ||||||||||
shares of the security). Please see affiliated sub-schedule for transactional | securities totaled $576 or 0.20% of net assets. | ||||||||||
information. | (q) | Security or a portion of the security was pledged to cover margin requirements | |||||||||
(b) | Current yield shown is as of period end. | for futures contracts. At the end of the period, the value of these securities | |||||||||
(c) | Non-income producing security | totaled $187 or 0.07% of net assets. | |||||||||
(d) | Restricted Security. Please see Restricted Security Sub-Schedule for more | ||||||||||
information. | |||||||||||
(e) | Fair value of these investments is determined in good faith by the Manager | Portfolio Summary (unaudited) | |||||||||
under procedures established and periodically reviewed by the Board of | Sector | Percent | |||||||||
Directors. Certain inputs used in the valuation may be unobservable; however, | Mortgage Securities | 34.54 | % | ||||||||
each security is evaluated individually for purposes of ASC 820 which results | Government | 13.10 | % | ||||||||
in not all securities being identified as Level 3 of the fair value hierarchy. At | Financial | 12.95 | % | ||||||||
the end of the period, the fair value of these securities totaled $8 or 0.00% of | Asset Backed Securities | 12.74 | % | ||||||||
net assets. | Consumer, Non-cyclical | 7.69 | % | ||||||||
(f) | Security exempt from registration under Rule 144A of the Securities Act of | Energy | 5.96 | % | |||||||
1933. These securities may be resold in transactions exempt from registration, | Communications | 5.48 | % | ||||||||
normally to qualified institutional buyers. At the end of the period, the value of | Consumer, Cyclical | 4.01 | % | ||||||||
these securities totaled $56,762 or 20.16% of net assets. | Industrial | 2.95 | % | ||||||||
(g) | Certain variable rate securities are not based on a published reference rate | Utilities | 2.76 | % | |||||||
and spread but are determined by the issuer or agent and are based on current | Technology | 2.58 | % | ||||||||
market conditions. These securities do not indicate a reference rate and | Basic Materials | 2.23 | % | ||||||||
spread in their description. Rate shown is the rate in effect as of period end. | Investment Companies | 1.38 | % | ||||||||
(h) | Payment in kind; the issuer has the option of paying additional securities in | Other Assets and Liabilities | (8.37 | )% | |||||||
lieu of cash. | TOTAL NET ASSETS | 100.00 | % | ||||||||
(i) | 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. |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||||
Value | Cost | Proceeds | Value | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 4,938 | $ | 118,130 | $ | 119,174 | $ | 3,894 | |||||||
$ | 4,938 | $ | 118,130 | $ | 119,174 | $ | 3,894 | ||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 184 | $ | — | $ | — | $ | — | |||||||
$ | 184 | $ | — | $ | — | $ | — | ||||||||
Amounts in thousands | |||||||||||||||
Restricted Securities | |||||||||||||||
Security Name | Acquisition Date | Cost | Value | Percent of Net Assets | |||||||||||
Pinnacle Operating Corp - 0.00% | 03/09/2017 | $ 40 | $ 8 | 0.00 | % | ||||||||||
Total | $ | 8 | 0.00 | % | |||||||||||
Amounts in thousands. | |||||||||||||||
Futures Contracts | |||||||||||||||
Description and Expiration Date | Type | Contracts | Notional Amount | Value and Unrealized Appreciation/(Depreciation) | |||||||||||
US 10 Year Note; March 2019 | Short | 34 | $ | 4,149 | $ | (104 | ) | ||||||||
US 10 Year Ultra Note; March 2019 | Short | 17 | 2,211 | (70 | ) | ||||||||||
US 2 Year Note; March 2019 | Long | 33 | 7,006 | 47 | |||||||||||
US 5 Year Note; March 2019 | Long | 78 | 8,946 | 150 | |||||||||||
US Long Bond; March 2019 | Long | 15 | 2,190 | 102 | |||||||||||
US Ultra Bond; March 2019 | Long | 23 | 3,695 | 194 | |||||||||||
Total | $ | 319 | |||||||||||||
Amounts in thousands except contracts. |
See accompanying notes.
166
Schedule of Investments | ||||||||||||||||
Core Plus Bond Account | ||||||||||||||||
December 31, 2018 | ||||||||||||||||
Exchange Cleared Credit Default Swaps | ||||||||||||||||
Buy Protection | ||||||||||||||||
Implied Credit | ||||||||||||||||
Spread as of | (Pay)/ | Upfront | Unrealized | |||||||||||||
December 31, | Receive Fixed | Payment | Notional | Payments/ | Appreciation/ | |||||||||||
Reference Entity | 2018 | (a) | Rate | Frequency | Maturity Date | Amount | (Receipts) | (Depreciation) | Fair Value | |||||||
CDX.EM.29 | N/A | (1.00)% Quarterly | 06/20/2023 | $ | 6,500 | $ | 104 | $ | 135 | $ | 239 | |||||
CDX.NA.HY.31 | N/A | (5.00)% Quarterly | 12/20/2023 | 12,300 | (317 | ) | 72 | (245 | ) | |||||||
Total | $ | (213 | )$ | 207 | $ | (6 | ) | |||||||||
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 impliedcredit 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 definedunder the terms of the agreement.
See accompanying notes.
167
Schedule of Investments
Diversified Balanced Account
December 31, 2018
INVESTMENT COMPANIES - 100.03% | Shares HeldValue (000's) | |||||
Principal Funds, Inc. Class R-6 - 15.18% | ||||||
International Equity Index Fund(a) | 7,849,413 | $ | 70,566 | |||
MidCapS&P 400 Index Fund(a) | 2,395,450 | 40,747 | ||||
SmallCap S&P 600 Index Fund(a) | 1,902,972 | 41,218 | ||||
$ | 152,531 | |||||
Principal Variable Contracts Funds, Inc. Class 1 - 84.85% | ||||||
Bond Market Index Account(a) | 48,743,021 | 494,742 | ||||
LargeCap S&P 500 Index Account(a) | 21,854,508 | 358,195 | ||||
$ | 852,937 | |||||
TOTAL INVESTMENT COMPANIES | $ | 1,005,468 | ||||
PREFERRED STOCKS - 0.00% | Shares HeldValue (000's) | |||||
Agriculture - 0.00% | ||||||
Pinnacle Operating Corp 0.00%(b),(c),(d) | 5,058 | $ | 1 | |||
TOTAL PREFERRED STOCKS | $ | 1 | ||||
Principal | ||||||
BONDS - 0.00% | Amount (000's) Value (000's) | |||||
Agriculture - 0.00% | ||||||
Pinnacle Operating Corp | ||||||
9.00%, 05/15/2023(e) | $ | 5 | $ | 3 | ||
Oil & Gas- 0.00% | ||||||
Chesapeake Oil Op/Fin Escrow Shares | ||||||
0.00%, 11/15/2019(b),(d),(f) | 5 | — | ||||
TOTAL BONDS | $ | 3 | ||||
Total Investments | $ | 1,005,472 | ||||
Other Assets and Liabilities - (0.03)% | (260 | ) | ||||
TOTAL NET ASSETS - 100.00% | $ | 1,005,212 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. | |
(b) | Non-income producing security |
(c) | Restricted Security. Please see Restricted Security Sub-Schedule for more information. |
(d) | Fair value of these investments is determined in good faith by the Manager under procedures established and periodically reviewed by the Board of Directors. Certain inputs used in the valuation may be unobservable; however, each security is evaluated individually for purposes of ASC 820 which resultsin not all securities being identified as Level 3 of the fair value hierarchy. Atthe end of the period, the fair value of these securities totaled $1 or 0.00% of net assets. |
(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 or 0.00% of net assets. |
(f) | The value of these investments was determined using significant unobservableinputs. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Fixed Income Funds | 49.22 | % | |
Domestic Equity Funds | 43.79 | % | |
International Equity Funds | 7.02 | % | |
Energy | 0.00 | % | |
Consumer, Non-cyclical | 0.00 | % | |
Other Assets and Liabilities | (0.03 | )% | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | ||||||||||||
Value | Cost | Proceeds | Value | |||||||||||||
Bond Market Index Account | $ | 588,839 | $ | 61,032 | $ | 140,726 | $ | 494,742 | ||||||||
International Equity Index Fund | 82,402 | 18,565 | 17,540 | 70,566 | ||||||||||||
LargeCap S&P 500 Index Account | 408,611 | 68,023 | 87,218 | 358,195 | ||||||||||||
MidCapS&P 400 Index Fund | 47,366 | 12,163 | 10,575 | 40,747 | ||||||||||||
SmallCap S&P 600 Index Fund | 47,143 | 14,419 | 13,044 | 41,218 | ||||||||||||
$ | 1,174,361 | $ | 174,202 | $ | 269,103 | $ | 1,005,468 | |||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | ||||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | |||||||||||||
Bond Market Index Account | $ | 11,770 | $ | (23 | )$ | — $ | (14,380 | ) | ||||||||
International Equity Index Fund | 2,063 | 138 | 606 | (12,999 | ) | |||||||||||
LargeCap S&P 500 Index Account | 6,794 | 19,590 | 12,448 | (50,811 | ) | |||||||||||
MidCapS&P 400 Index Fund | 813 | 741 | 3,143 | (8,948 | ) | |||||||||||
SmallCap S&P 600 Index Fund | 682 | 1,800 | 3,961 | (9,100 | ) | |||||||||||
$ | 22,122 | $ | 22,246 | $ | 20,158 | $ | (96,238 | ) | ||||||||
Amounts in thousands | ||||||||||||||||
Restricted Securities | ||||||||||||||||
Security Name | Acquisition Date | Cost | Value | Percent of Net Assets | ||||||||||||
Pinnacle Operating Corp - 0.00% | 03/09/2017 | $ | 2 | $ | 1 | 0.00 | % | |||||||||
Total | $ | 1 | 0.00 | % | ||||||||||||
Amounts in thousands. |
See accompanying notes.
168
Schedule of Investments
Diversified Balanced Managed Volatility Account
December 31, 2018
INVESTMENT COMPANIES - 100.03% | Shares HeldValue (000's) | ||||
Principal Funds, Inc. Class R-6 - 15.19% | |||||
International Equity Index Fund(a) | 1,267,793 | $ | 11,398 | ||
MidCapS&P 400 Index Fund(a) | 386,915 | 6,581 | |||
SmallCap S&P 600 Index Fund(a) | 307,358 | 6,657 | |||
$ | 24,636 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 84.84% | |||||
Bond Market Index Account(a) | 7,872,755 | 79,909 | |||
LargeCap S&P 500 Managed Volatility Index | 4,526,443 | 57,667 | |||
Account(a) | |||||
$ | 137,576 | ||||
TOTAL INVESTMENT COMPANIES | $ | 162,212 | |||
Total Investments | $ | 162,212 | |||
Other Assets and Liabilities - (0.03)% | (46 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 162,166 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Fixed Income Funds | 49.28 | % | |
Domestic Equity Funds | 43.72 | % | |
International Equity Funds | 7.03 | % | |
Other Assets and Liabilities | (0.03 | )% | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Bond Market Index Account | $ | 90,779 | $ | 11,226 | $ | 19,880 | $ | 79,909 | |||||
International Equity Index Fund | 12,703 | 3,304 | 2,550 | 11,398 | |||||||||
LargeCap S&P 500 Managed Volatility Index Account | 63,004 | 9,089 | 11,966 | 57,667 | |||||||||
MidCapS&P 400 Index Fund | 7,302 | 2,165 | 1,562 | 6,581 | |||||||||
SmallCap S&P 600 Index Fund | 7,268 | 2,526 | 1,945 | 6,657 | |||||||||
$ | 181,056 | $ | 28,310 | $ | 37,903 | $ | 162,212 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Bond Market Index Account | $ | 1,874 | $ | (28 | )$ | — $ | (2,188 | ) | |||||
International Equity Index Fund | 333 | 30 | 97 | (2,089 | ) | ||||||||
LargeCap S&P 500 Managed Volatility Index Account | 868 | 1,119 | — | (3,579 | ) | ||||||||
MidCapS&P 400 Index Fund | 131 | 47 | 505 | (1,371 | ) | ||||||||
SmallCap S&P 600 Index Fund | 110 | 140 | 637 | (1,332 | ) | ||||||||
$ | 3,316 | $ | 1,308 | $ | 1,239 | $ | (10,559 | ) | |||||
Amounts in thousands |
See accompanying notes.
169
Schedule of Investments
Diversified Balanced Volatility Control Account
December 31, 2018
INVESTMENT COMPANIES - 80.39% | Shares HeldValue (000's) | ||||
Principal Funds, Inc. Class R-6 - 15.40% | |||||
International Equity Index Fund(a) | 528,052 | $ | 4,747 | ||
MidCapS&P 400 Index Fund(a) | 163,520 | 2,782 | |||
SmallCap S&P 600 Index Fund(a) | 128,766 | 2,789 | |||
$ | 10,318 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 64.99% | |||||
Bond Market Index Account(a) | 3,254,347 | 33,032 | |||
LargeCap S&P 500 Index Account(a) | 640,670 | 10,500 | |||
$ | 43,532 | ||||
TOTAL INVESTMENT COMPANIES | $ | 53,850 | |||
Total Investments | $ | 53,850 | |||
Other Assets and Liabilities - 19.61% | 13,133 | ||||
TOTAL NET ASSETS - 100.00% | $ | 66,983 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Fixed Income Funds | 49.31 | % | |
Domestic Equity Funds | 23.99 | % | |
International Equity Funds | 7.09 | % | |
Other Assets and Liabilities | 19.61 | % | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||||
Value | Cost | Proceeds | Value | ||||||||||||
Bond Market Index Account | $ | 17,669 | $ | 20,298 | $ | 4,513 | $ | 33,032 | |||||||
International Equity Index Fund | 2,600 | 3,367 | 429 | 4,747 | |||||||||||
LargeCap S&P 500 Index Account | 5,671 | 7,122 | 1,277 | 10,500 | |||||||||||
MidCapS&P 400 Index Fund | 1,508 | 2,216 | 372 | 2,782 | |||||||||||
SmallCap S&P 600 Index Fund | 1,512 | 2,373 | 527 | 2,789 | |||||||||||
$ | 28,960 | $ | 35,376 | $ | 7,118 | $ | 53,850 | ||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||||
Bond Market Index Account | $ | 649 | $ | (4 | )$ | — $ | (418 | ) | |||||||
International Equity Index Fund | 137 | — | 40 | (791 | ) | ||||||||||
LargeCap S&P 500 Index Account | 161 | 2 | 294 | (1,018 | ) | ||||||||||
MidCapS&P 400 Index Fund | 53 | — | 205 | (570 | ) | ||||||||||
SmallCap S&P 600 Index Fund | 45 | 1 | 257 | (570 | ) | ||||||||||
$ | 1,045 | $ | (1 | ) $ | 796 | $ | (3,367 | ) | |||||||
Amounts in thousands | |||||||||||||||
Futures Contracts | |||||||||||||||
Description and Expiration Date | Type | Contracts | Notional Amount | Value and Unrealized Appreciation/(Depreciation) | |||||||||||
S&P 500Emini; March 2019 | Short | 7 | $ | 877 | $ | (48 | ) | ||||||||
Total | $ | (48 | ) | ||||||||||||
Amounts in thousands except contracts. |
See accompanying notes.
170
Schedule of Investments
Diversified Growth Account
December 31, 2018
INVESTMENT COMPANIES - 100.03% | Shares HeldValue (000's) | |||||
Principal Funds, Inc. Class R-6 - 20.13% | ||||||
International Equity Index Fund(a) | 38,738,719 | $ | 348,261 | |||
MidCapS&P 400 Index Fund(a) | 10,341,304 | 175,905 | ||||
SmallCap S&P 600 Index Fund(a) | 8,216,143 | 177,962 | ||||
$ | 702,128 | |||||
Principal Variable Contracts Funds, Inc. Class 1 - 79.90% | ||||||
Bond Market Index Account(a) | 117,891,790 | 1,196,602 | ||||
LargeCap S&P 500 Index Account(a) | 97,041,228 | 1,590,506 | ||||
$ | 2,787,108 | |||||
TOTAL INVESTMENT COMPANIES | $ | 3,489,236 | ||||
Total Investments | $ | 3,489,236 | ||||
Other Assets and Liabilities - (0.03)% | (924 | ) | ||||
TOTAL NET ASSETS - 100.00% | $ | 3,488,312 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 55.74 | % | |
Fixed Income Funds | 34.30 | % | |
International Equity Funds | 9.99 | % | |
Other Assets and Liabilities | (0.03 | )% | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Bond Market Index Account | $ | 1,386,397 | $ | 175,471 | $ | 330,656 | $ | 1,196,602 | |||||
International Equity Index Fund | 395,940 | 79,216 | 61,829 | 348,261 | |||||||||
LargeCap S&P 500 Index Account | 1,767,061 | 235,346 | 265,264 | 1,590,506 | |||||||||
MidCapS&P 400 Index Fund | 199,135 | 47,105 | 33,730 | 175,905 | |||||||||
SmallCap S&P 600 Index Fund | 198,200 | 57,352 | 44,684 | 177,962 | |||||||||
$ | 3,946,733 | $ | 594,490 | $ | 736,163 | $ | 3,489,236 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Bond Market Index Account | $ | 28,980 | $ | (136 | )$ | — $ | (34,474 | ) | |||||
International Equity Index Fund | 10,178 | 104 | 3,036 | (65,170 | ) | ||||||||
LargeCap S&P 500 Index Account | 30,728 | 38,015 | 56,295 | (184,652 | ) | ||||||||
MidCapS&P 400 Index Fund | 3,561 | 1,036 | 13,765 | (37,641 | ) | ||||||||
SmallCap S&P 600 Index Fund | 2,986 | 3,681 | 17,351 | (36,587 | ) | ||||||||
$ | 76,433 | $ | 42,700 | $ | 90,447 | $ | (358,524 | ) | |||||
Amounts in thousands |
See accompanying notes.
171
Schedule of Investments
Diversified Growth Managed Volatility Account
December 31, 2018
INVESTMENT COMPANIES - 100.03% | Shares HeldValue (000's) | ||||
Principal Funds, Inc. Class R-6 - 20.16% | |||||
International Equity Index Fund(a) | 3,617,037 | $ | 32,517 | ||
MidCapS&P 400 Index Fund(a) | 965,523 | 16,424 | |||
SmallCap S&P 600 Index Fund(a) | 766,991 | 16,613 | |||
$ | 65,554 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 79.87% | |||||
Bond Market Index Account(a) | 11,009,419 | 111,746 | |||
LargeCap S&P 500 Managed Volatility Index | 11,618,309 | 148,017 | |||
Account(a) | |||||
$ | 259,763 | ||||
TOTAL INVESTMENT COMPANIES | $ | 325,317 | |||
Total Investments | $ | 325,317 | |||
Other Assets and Liabilities - (0.03)% | (89 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 325,228 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 55.67 | % | |
Fixed Income Funds | 34.36 | % | |
International Equity Funds | 10.00 | % | |
Other Assets and Liabilities | (0.03 | )% | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Bond Market Index Account | $ | 124,750 | $ | 18,924 | $ | 28,819 | $ | 111,746 | |||||
International Equity Index Fund | 35,627 | 8,579 | 5,723 | 32,517 | |||||||||
LargeCap S&P 500 Managed Volatility Index Account | 159,026 | 18,557 | 22,816 | 148,017 | |||||||||
MidCapS&P 400 Index Fund | 17,919 | 5,025 | 3,147 | 16,424 | |||||||||
SmallCap S&P 600 Index Fund | 17,834 | 5,966 | 4,142 | 16,613 | |||||||||
$ | 355,156 | $ | 57,051 | $ | 64,647 | $ | 325,317 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Bond Market Index Account | $ | 2,636 | $ | (42 | )$ | — $ | (3,067 | ) | |||||
International Equity Index Fund | 940 | 50 | 279 | (6,016 | ) | ||||||||
LargeCap S&P 500 Managed Volatility Index Account | 2,245 | 1,794 | — | (8,544 | ) | ||||||||
MidCapS&P 400 Index Fund | 328 | 57 | 1,266 | (3,430 | ) | ||||||||
SmallCap S&P 600 Index Fund | 275 | 268 | 1,595 | (3,313 | ) | ||||||||
$ | 6,424 | $ | 2,127 | $ | 3,140 | $ | (24,370 | ) | |||||
Amounts in thousands |
See accompanying notes.
172
Schedule of Investments
Diversified Growth Volatility Control Account
December 31, 2018
INVESTMENT COMPANIES - 80.82% | Shares HeldValue (000's) | ||||
Principal Funds, Inc. Class R-6 - 20.43% | |||||
International Equity Index Fund(a) | 4,314,397 | $ | 38,786 | ||
MidCapS&P 400 Index Fund(a) | 1,169,115 | 19,887 | |||
SmallCap S&P 600 Index Fund(a) | 920,642 | 19,941 | |||
$ | 78,614 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 60.39% | |||||
Bond Market Index Account(a) | 13,026,205 | 132,215 | |||
LargeCap S&P 500 Index Account(a) | 6,107,466 | 100,102 | |||
$ | 232,317 | ||||
TOTAL INVESTMENT COMPANIES | $ | 310,931 | |||
Total Investments | $ | 310,931 | |||
Other Assets and Liabilities - 19.18% | 73,775 | ||||
TOTAL NET ASSETS - 100.00% | $ | 384,706 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 36.37 | % | |
Fixed Income Funds | 34.37 | % | |
International Equity Funds | 10.08 | % | |
Other Assets and Liabilities | 19.18 | % | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||||
Value | Cost | Proceeds | Value | ||||||||||||
Bond Market Index Account | $ | 57,653 | $ | 92,810 | $ | 16,910 | $ | 132,215 | |||||||
International Equity Index Fund | 17,316 | 29,588 | 1,627 | 38,786 | |||||||||||
LargeCap S&P 500 Index Account | 44,026 | 78,946 | 12,655 | 100,102 | |||||||||||
MidCapS&P 400 Index Fund | 8,772 | 16,879 | 1,581 | 19,887 | |||||||||||
SmallCap S&P 600 Index Fund | 8,789 | 18,022 | 2,601 | 19,941 | |||||||||||
$ | 136,556 | $ | 236,245 | $ | 35,374 | $ | 310,931 | ||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||||
Bond Market Index Account | $ | 2,520 | $ | (20 | )$ | — $ | (1,318 | ) | |||||||
International Equity Index Fund | 1,112 | — | 326 | (6,491 | ) | ||||||||||
LargeCap S&P 500 Index Account | 1,484 | 63 | 2,719 | (10,278 | ) | ||||||||||
MidCapS&P 400 Index Fund | 383 | — | 1,472 | (4,183 | ) | ||||||||||
SmallCap S&P 600 Index Fund | 321 | 2 | 1,857 | (4,271 | ) | ||||||||||
$ | 5,820 | $ | 45 | $ | 6,374 | $ | (26,541 | ) | |||||||
Amounts in thousands | |||||||||||||||
Futures Contracts | |||||||||||||||
Description and Expiration Date | Type | Contracts | Notional Amount | Value and Unrealized Appreciation/(Depreciation) | |||||||||||
S&P 500Emini; March 2019 | Short | 218 | $ | 27,307 | $ | (1,487 | ) | ||||||||
Total | $ | (1,487 | ) | ||||||||||||
Amounts in thousands except contracts. |
See accompanying notes.
173
Schedule of Investments
Diversified Income Account
December 31, 2018
INVESTMENT COMPANIES - 100.03% | Shares HeldValue (000's) | ||||
Principal Funds, Inc. Class R-6 - 10.18% | |||||
International Equity Index Fund(a) | 1,081,947 | $ | 9,727 | ||
MidCapS&P 400 Index Fund(a) | 433,526 | 7,374 | |||
SmallCap S&P 600 Index Fund(a) | 344,388 | 7,459 | |||
$ | 24,560 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 89.85% | |||||
Bond Market Index Account(a) | 15,280,184 | 155,094 | |||
LargeCap S&P 500 Index Account(a) | 3,767,095 | 61,743 | |||
$ | 216,837 | ||||
TOTAL INVESTMENT COMPANIES | $ | 241,397 | |||
Total Investments | $ | 241,397 | |||
Other Assets and Liabilities - (0.03)% | (66 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 241,331 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Fixed Income Funds | 64.27 | % | |
Domestic Equity Funds | 31.73 | % | |
International Equity Funds | 4.03 | % | |
Other Assets and Liabilities | (0.03 | )% | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Bond Market Index Account | $ | 174,685 | $ | 28,781 | $ | 44,281 | $ | 155,094 | |||||
International Equity Index Fund | 10,745 | 3,660 | 2,983 | 9,727 | |||||||||
LargeCap S&P 500 Index Account | 66,606 | 19,260 | 19,005 | 61,743 | |||||||||
MidCapS&P 400 Index Fund | 8,105 | 3,053 | 2,343 | 7,374 | |||||||||
SmallCap S&P 600 Index Fund | 8,066 | 3,418 | 2,731 | 7,459 | |||||||||
$ | 268,207 | $ | 58,172 | $ | 71,343 | $ | 241,397 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Bond Market Index Account | $ | 3,495 | $ | —$ | — $ | (4,091 | ) | ||||||
International Equity Index Fund | 287 | 12 | 83 | (1,707 | ) | ||||||||
LargeCap S&P 500 Index Account | 1,108 | 2,038 | 2,031 | (7,156 | ) | ||||||||
MidCapS&P 400 Index Fund | 145 | 86 | 562 | (1,527 | ) | ||||||||
SmallCap S&P 600 Index Fund | 122 | 220 | 708 | (1,514 | ) | ||||||||
$ | 5,157 | $ | 2,356 | $ | 3,384 | $ | (15,995 | ) | |||||
Amounts in thousands |
See accompanying notes.
174
Schedule of Investments | ||||||||||
Diversified International Account | ||||||||||
December 31, 2018 | ||||||||||
COMMON STOCKS - 98.40% | Shares HeldValue (000's) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | |||||||
Aerospace & Defense- 1.63% | Distribution & Wholesale- 3.62% | |||||||||
Safran SA | 21,247 | $ | 2,548 | Ferguson PLC | 28,016 | $ | 1,790 | |||
Thales SA | 11,025 | 1,289 | ITOCHU Corp | 124,500 | 2,115 | |||||
$ | 3,837 | Mitsubishi Corp | 100,600 | 2,758 | ||||||
Agriculture - 0.45% | Sumitomo Corp | 131,800 | 1,870 | |||||||
Swedish Match AB | 27,131 | 1,068 | $ | 8,533 | ||||||
Apparel - 2.02% | Diversified Financial Services- 1.48% | |||||||||
Kering SA | 2,631 | 1,232 | Housing Development Finance Corp Ltd | 47,726 | 1,344 | |||||
LVMH Moet Hennessy Louis Vuitton SE | 9,429 | 2,761 | ORIX Corp | 146,300 | 2,138 | |||||
MonclerSpA | 23,267 | 774 | $ | 3,482 | ||||||
$ | 4,767 | Electric - 1.67% | ||||||||
Automobile Manufacturers - 4.87% | EnelSpA | 314,905 | 1,825 | |||||||
Ferrari NV | 15,022 | 1,495 | Iberdrola SA | 262,735 | 2,110 | |||||
Fiat Chrysler Automobiles NV(a) | 45,950 | 662 | $ | 3,935 | ||||||
Honda Motor Co Ltd | 57,300 | 1,510 | Electronics - 0.92% | |||||||
Isuzu Motors Ltd | 75,400 | 1,058 | Hoya Corp | 35,896 | 2,164 | |||||
Kia Motors Corp | 29,194 | 880 | Engineering & Construction- 2.15% | |||||||
MarutiSuzuki India Ltd | 12,609 | 1,347 | ACSActividades de Construcciony Servicios SA | 43,144 | 1,670 | |||||
Suzuki Motor Corp | 18,600 | 938 | Larsen & Toubro Ltd | 67,591 | 1,391 | |||||
Toyota Motor Corp | 61,900 | 3,583 | Vinci SA | 24,495 | 2,014 | |||||
$ | 11,473 | $ | 5,075 | |||||||
Banks - 11.36% | Entertainment - 0.43% | |||||||||
Banco do BrasilSA | 77,400 | 927 | GVC Holdings PLC | 117,690 | 1,010 | |||||
Bangkok Bank PCL | 102,100 | 648 | Food - 4.15% | |||||||
Bank Leumi Le-Israel BM | 168,162 | 1,017 | Nestle India Ltd | 3,413 | 542 | |||||
Credicorp Ltd | 8,179 | 1,813 | Nestle SA | 66,019 | 5,358 | |||||
DBS Group Holdings Ltd | 107,600 | 1,871 | Tesco PLC | 671,068 | 1,627 | |||||
DNB ASA | 113,476 | 1,822 | Uni-President Enterprises Corp | 666,000 | 1,511 | |||||
ErsteGroup Bank AG(a) | 48,135 | 1,596 | X5 Retail Group NV | 29,638 | 735 | |||||
HDFC Bank Ltd ADR | 13,527 | 1,401 | $ | 9,773 | ||||||
HDFC Bank Ltd | 7,094 | 216 | Food Service - 0.48% | |||||||
Krung Thai Bank PCL | 1,682,600 | 991 | Compass Group PLC | 54,021 | 1,137 | |||||
Lloyds Banking Group PLC | 3,069,458 | 2,023 | ||||||||
Macquarie Group Ltd | 29,468 | 2,257 | Forest Products & Paper- 1.11% | |||||||
MediobancaBanca di CreditoFinanziario SpA | 213,591 | 1,807 | Mondi PLC | 73,240 | 1,526 | |||||
RaiffeisenBank International AG | 45,236 | 1,154 | SuzanoPapel e CeluloseSA | 70,900 | 697 | |||||
SwedbankAB | 125,762 | 2,811 | UPM-Kymmene OYJ | 15,412 | 390 | |||||
Toronto-Dominion Bank/The | 63,000 | 3,132 | $ | 2,613 | ||||||
United Overseas Bank Ltd | 70,200 | 1,270 | Hand & Machine Tools- 0.39% | |||||||
$ | 26,756 | SandvikAB | 63,492 | 910 | ||||||
Beverages - 3.04% | Healthcare - Products- 1.38% | |||||||||
Coca-Cola Bottlers Japan HoldingsInc | 34,000 | 1,014 | Carl Zeiss MeditecAG | 7,888 | 616 | |||||
Coca-Cola HBC AG(a) | 33,654 | 1,053 | Lonza Group AG(a) | 7,999 | 2,079 | |||||
Diageo PLC | 82,813 | 2,959 | Straumann Holding AG | 872 | 551 | |||||
Jiangsu Yanghe Brewery Joint-Stock Co Ltd | 81,299 | 1,127 | $ | 3,246 | ||||||
Treasury Wine Estates Ltd | 97,007 | 1,012 | Healthcare - Services- 0.76% | |||||||
$ | 7,165 | EvotecAG(a) | 15,058 | 299 | ||||||
Biotechnology- 1.04% | ICON PLC(a) | 11,587 | 1,497 | |||||||
CSL Ltd | 18,807 | 2,456 | $ | 1,796 | ||||||
Building Materials - 0.98% | Home Builders- 0.70% | |||||||||
Anhui Conch Cement Co Ltd | 160,598 | 687 | Persimmon PLC | 35,454 | 873 | |||||
China National Building Material Co Ltd | 1,464,000 | 1,002 | Taylor Wimpey PLC | 445,583 | 775 | |||||
Rockwool International A/S | 2,365 | 619 | $ | 1,648 | ||||||
$ | 2,308 | Home Furnishings- 1.85% | ||||||||
Chemicals - 0.61% | Howden Joinery Group PLC | 181,440 | 1,007 | |||||||
Nutrien Ltd | 30,700 | 1,442 | LG ElectronicsInc | 12,173 | 682 | |||||
Commercial Services - 1.34% | Sony Corp | 55,500 | 2,676 | |||||||
Ashtead Group PLC | 42,362 | 884 | $ | 4,365 | ||||||
Brambles Ltd | 98,568 | 705 | Insurance - 6.39% | |||||||
WirecardAG | 10,422 | 1,571 | ASR Nederland NV | 31,617 | 1,251 | |||||
$ | 3,160 | BBSeguridadeParticipacoesSA | 120,631 | 859 | ||||||
Computers - 1.44% | Fairfax Financial Holdings Ltd | 2,400 | 1,057 | |||||||
Capgemini SE | 7,445 | 741 | HannoverRueckSE | 14,918 | 2,010 | |||||
Logitech International SA | 53,656 | 1,695 | Legal & General Group PLC | 646,783 | 1,906 | |||||
ObicCo Ltd | 12,300 | 949 | NN Group NV | 51,292 | 2,039 | |||||
$ | 3,385 | Prudential PLC | 127,231 | 2,272 | ||||||
Swiss Life Holding AG(a) | 5,754 | 2,221 | ||||||||
TokioMarine HoldingsInc | 30,500 | 1,449 | ||||||||
$ | 15,064 |
See accompanying notes.
175
Schedule of Investments
Diversified International Account
December 31, 2018
COMMON STOCKS (continued) | Shares HeldValue (000’s) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Internet - 2.06% | Software - 3.20% | ||||||||||
Baidu Inc ADR(a) | 9,376 | $ | 1,487 | Amadeus IT Group SA | 27,146 | $ | 1,889 | ||||
TencentHoldings Ltd | 83,793 | 3,358 | Capcom Co Ltd | 58,600 | 1,162 | ||||||
$ | 4,845 | DassaultSystemes SE | 14,191 | 1,685 | |||||||
Investment Companies - 1.40% | Tech Mahindra Ltd | 92,599 | 959 | ||||||||
EXOR NV | 20,947 | 1,137 | Ubisoft Entertainment SA(a) | 22,849 | 1,841 | ||||||
Investor AB | 51,096 | 2,171 | $ | 7,536 | |||||||
$ | 3,308 | Telecommunications - 4.20% | |||||||||
Iron & Steel- 1.68% | Deutsche Telekom AG | 100,972 | 1,716 | ||||||||
POSCO | 5,501 | 1,203 | Nice Ltd ADR(a) | 9,812 | 1,062 | ||||||
Vale SA | 210,411 | 2,759 | Orange SA | 97,860 | 1,586 | ||||||
$ | 3,962 | SK Telecom Co Ltd | 6,261 | 1,510 | |||||||
Machinery - Construction & Mining- 1.10% | SoftBank Group Corp | 26,600 | 1,742 | ||||||||
Hitachi Ltd | 38,800 | 1,029 | TelefonaktiebolagetLM Ericsson | 117,805 | 1,043 | ||||||
Komatsu Ltd | 72,700 | 1,562 | Telenor ASA | 63,838 | 1,240 | ||||||
$ | 2,591 | $ | 9,899 | ||||||||
Machinery - Diversified- 1.13% | Toys, Games & Hobbies- 0.81% | ||||||||||
Harmonic Drive SystemsInc | 20,800 | 567 | Nintendo Co Ltd | 7,200 | 1,912 | ||||||
Keyence Corp | 2,800 | 1,415 | Transportation - 1.30% | ||||||||
Valmet OYJ | 33,058 | 681 | Canadian National Railway Co | 41,428 | 3,068 | ||||||
$ | 2,663 | TOTAL COMMON STOCKS | $ | 231,869 | |||||||
Mining - 1.56% | INVESTMENT COMPANIES - 0.71% | Shares HeldValue (000's) | |||||||||
Glencore PLC(a) | 477,885 | 1,777 | Money Market Funds- 0.71% | ||||||||
Rio Tinto Ltd | 34,473 | 1,908 | Principal Government Money Market Fund | 1,663,621 | 1,664 | ||||||
$ | 3,685 | 2.11%(b),(c) | |||||||||
Oil & Gas- 7.74% | TOTAL INVESTMENT COMPANIES | $ | 1,664 | ||||||||
BP PLC | 573,429 | 3,625 | PREFERRED STOCKS - 0.38% | Shares HeldValue (000's) | |||||||
China Petroleum & Chemical Corp | 2,062,000 | 1,470 | Holding Companies - Diversified- 0.38% | ||||||||
Husky EnergyInc | 68,300 | 706 | Itausa - Investimentos ItauSA 0.08% | 284,046 | $ | 886 | |||||
JXTG HoldingsInc | 292,200 | 1,517 | TOTAL PREFERRED STOCKS | $ | 886 | ||||||
LUKOIL PJSC ADR | 17,056 | 1,221 | Total Investments | $ | 234,419 | ||||||
NesteOyj | 25,985 | 2,012 | Other Assets and Liabilities - 0.51% | 1,213 | |||||||
PTT PCL | 1,124,000 | 1,584 | TOTAL NET ASSETS - 100.00% | $ | 235,632 | ||||||
Reliance Industries Ltd | 160,688 | 2,579 | |||||||||
Royal Dutch Shell PLC - A Shares | 50,922 | 1,501 | (a) | Non-income producing security | |||||||
Suncor EnergyInc | 72,600 | 2,028 | (b) | Affiliated Security. Security is either an affiliate (and registered under the | |||||||
$ | 18,243 | Investment Company Act of 1940) or an affiliate as defined by the Investment | |||||||||
Pharmaceuticals - 4.79% | Company Act of 1940 (controls 5.0% or more of the outstanding voting | ||||||||||
Novartis AG | 42,821 | 3,667 | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||
Novo Nordisk A/S | 48,329 | 2,220 | information. | ||||||||
Roche Holding AG | 19,106 | 4,743 | (c) | Current yield shown is as of period end. | |||||||
TevaPharmaceutical Industries Ltd ADR(a) | 42,160 | 650 | |||||||||
$ | 11,280 | ||||||||||
Private Equity- 2.71% | |||||||||||
3i Group PLC | 206,793 | 2,040 | |||||||||
Brookfield Asset ManagementInc | 92,313 | 3,538 | |||||||||
Intermediate Capital Group PLC | 67,128 | 801 | |||||||||
$ | 6,379 | ||||||||||
Real Estate - 2.21% | |||||||||||
CK Asset Holdings Ltd | 132,500 | 969 | |||||||||
LEG Immobilien AG | 9,191 | 959 | |||||||||
Vonovia SE | 43,152 | 1,945 | |||||||||
Wharf Real Estate Investment Co Ltd | 224,000 | 1,340 | |||||||||
$ | 5,213 | ||||||||||
REITs - 0.40% | |||||||||||
Dexus | 125,538 | 940 | |||||||||
Retail - 2.44% | |||||||||||
Alimentation Couche-TardInc | 59,023 | 2,936 | |||||||||
DonQuijote Holdings Co Ltd | 13,700 | 847 | |||||||||
Wal-Mart de Mexico SAB de CV | 775,322 | 1,972 | |||||||||
$ | 5,755 | ||||||||||
Semiconductors - 3.41% | |||||||||||
Samsung Electronics Co Ltd | 102,751 | 3,577 | |||||||||
Taiwan Semiconductor Manufacturing Co Ltd | 612,140 | 4,445 | |||||||||
$ | 8,022 |
See accompanying notes.
176
Schedule of Investments | |||||||||||
Diversified International Account | |||||||||||
December 31, 2018 | |||||||||||
Portfolio Summary (unaudited) | |||||||||||
Country | Percent | ||||||||||
Japan | 15.26 | % | |||||||||
United Kingdom | 11.04 | % | |||||||||
Switzerland | 10.59 | % | |||||||||
Canada | 7.59 | % | |||||||||
France | 6.66 | % | |||||||||
India | 4.16 | % | |||||||||
China | 3.88 | % | |||||||||
Germany | 3.87 | % | |||||||||
Sweden | 3.39 | % | |||||||||
Korea, Republic Of | 3.33 | % | |||||||||
Australia | 3.13 | % | |||||||||
Brazil | 2.60 | % | |||||||||
Taiwan, Province Of China | 2.53 | % | |||||||||
Netherlands | 2.52 | % | |||||||||
Italy | 2.51 | % | |||||||||
Spain | 2.41 | % | |||||||||
Thailand | 1.37 | % | |||||||||
Singapore | 1.33 | % | |||||||||
Finland | 1.30 | % | |||||||||
Norway | 1.30 | % | |||||||||
Denmark | 1.20 | % | |||||||||
Austria | 1.17 | % | |||||||||
Israel | 1.16 | % | |||||||||
Hong Kong | 0.98 | % | |||||||||
Mexico | 0.84 | % | |||||||||
Russian Federation | 0.83 | % | |||||||||
Peru | 0.77 | % | |||||||||
United States | 0.71 | % | |||||||||
Ireland | 0.63 | % | |||||||||
Isle of Man | 0.43 | % | |||||||||
Other Assets and Liabilities | 0.51 | % | |||||||||
TOTAL NET ASSETS | 100.00 | % | |||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 4,483 | $ | 68,287 | $ | 71,106 | $ | 1,664 | |||
$ | 4,483 | $ | 68,287 | $ | 71,106 | $ | 1,664 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 57 | $ | — | $ | — | $ | — | |||
$ | 57 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
177
Schedule of Investments Equity Income Account December 31, 2018
COMMON STOCKS - 98.23% | Shares HeldValue (000's) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Aerospace & Defense- 0.40% | Miscellaneous Manufacturers - 1.98% | ||||||||||
Boeing Co/The | 8,107 | $ | 2,614 | 3M Co | 21,617 | $ | 4,119 | ||||
Airlines - 1.41% | Parker-Hannifin Corp | 60,200 | 8,978 | ||||||||
Delta Air Lines Inc | 186,642 | 9,313 | $ | 13,097 | |||||||
Apparel - 0.78% | Oil & Gas- 7.22% | ||||||||||
VF Corp | 71,874 | 5,127 | Chevron Corp | 63,454 | 6,903 | ||||||
Automobile Manufacturers - 1.52% | Cimarex Energy Co | 109,868 | 6,773 | ||||||||
PACCAR Inc | 176,236 | 10,070 | Exxon Mobil Corp | 83,092 | 5,666 | ||||||
Automobile Parts & Equipment- 1.80% | Marathon Petroleum Corp | 168,910 | 9,967 | ||||||||
Autoliv Inc | 62,604 | 4,396 | Occidental Petroleum Corp | 104,733 | 6,429 | ||||||
Magna InternationalInc | 164,769 | 7,489 | Royal Dutch Shell PLC - B shares ADR | 200,591 | 12,024 | ||||||
$ | 11,885 | $ | 47,762 | ||||||||
Banks - 9.38% | Pharmaceuticals - 8.72% | ||||||||||
Bank of Nova Scotia/The | 239,675 | 11,953 | Johnson & Johnson | 56,414 | 7,280 | ||||||
JPMorgan Chase & Co | 183,938 | 17,956 | Merck & Co Inc | 197,769 | 15,112 | ||||||
PNC Financial Services GroupInc/The | 134,224 | 15,692 | Novartis AG ADR | 103,850 | 8,911 | ||||||
SunTrust BanksInc | 93,198 | 4,701 | PfizerInc | 285,268 | 12,452 | ||||||
US Bancorp | 256,221 | 11,709 | Roche Holding AG ADR | 448,428 | 13,937 | ||||||
$ | 62,011 | $ | 57,692 | ||||||||
Beverages - 1.01% | Pipelines - 1.98% | ||||||||||
Coca-Cola Co/The | 141,577 | 6,704 | Enterprise Products Partners LP | 533,208 | 13,112 | ||||||
Chemicals - 3.26% | Private Equity- 2.07% | ||||||||||
Air Products & ChemicalsInc | 40,818 | 6,533 | KKR & CoInc | 696,278 | 13,668 | ||||||
Albemarle Corp | 50,000 | 3,854 | REITs - 4.38% | ||||||||
DowDuPont Inc | 118,388 | 6,331 | Alexandria Real Estate Equities Inc | 31,636 | 3,646 | ||||||
PPG IndustriesInc | 47,142 | 4,819 | Digital Realty TrustInc | 112,245 | 11,960 | ||||||
$ | 21,537 | Host Hotels & ResortsInc | 151,840 | 2,531 | |||||||
Computers - 2.89% | Simon Property GroupInc | 64,302 | 10,802 | ||||||||
Accenture PLC - Class A | 32,456 | 4,577 | $ | 28,939 | |||||||
Apple Inc | 92,191 | 14,542 | Retail - 3.39% | ||||||||
$ | 19,119 | Costco Wholesale Corp | 54,982 | 11,200 | |||||||
Diversified Financial Services- 3.94% | Starbucks Corp | 174,484 | 11,237 | ||||||||
BlackRock Inc | 32,011 | 12,575 | $ | 22,437 | |||||||
Discover Financial Services | 228,375 | 13,469 | Semiconductors - 3.81% | ||||||||
$ | 26,044 | Applied Materials Inc | 196,093 | 6,420 | |||||||
Electric - 7.26% | Maxim Integrated ProductsInc | 51,850 | 2,637 | ||||||||
EversourceEnergy | 143,463 | 9,331 | Microchip TechnologyInc | 130,427 | 9,380 | ||||||
NextEra EnergyInc | 49,969 | 8,685 | Taiwan Semiconductor Manufacturing Co Ltd | 184,043 | 6,793 | ||||||
Sempra Energy | 95,053 | 10,284 | ADR | ||||||||
WEC Energy GroupInc | 137,526 | 9,525 | $ | 25,230 | |||||||
Xcel EnergyInc | 206,977 | 10,198 | Software - 2.86% | ||||||||
$ | 48,023 | Fidelity National Information ServicesInc | 66,963 | 6,867 | |||||||
Electronics - 1.04% | Microsoft Corp | 75,757 | 7,695 | ||||||||
Honeywell InternationalInc | 51,895 | 6,856 | SAP SE ADR | 43,615 | 4,342 | ||||||
$ | 18,904 | ||||||||||
Food - 4.16% | Telecommunications - 3.59% | ||||||||||
Hormel Foods Corp | 202,272 | 8,633 | |||||||||
Kraft Heinz Co/The | 116,488 | 5,014 | BCE Inc | 280,845 | 11,102 | ||||||
Kroger Co/The | 331,140 | 9,106 | Verizon CommunicationsInc | 224,382 | 12,615 | ||||||
Tyson FoodsInc | 89,340 | 4,771 | $ | 23,717 | |||||||
$ | 27,524 | Toys, Games & Hobbies- 2.13% | |||||||||
Healthcare - Products- 5.70% | HasbroInc | 173,642 | 14,108 | ||||||||
Abbott Laboratories | 179,480 | 12,982 | Transportation - 1.53% | ||||||||
Becton Dickinson and Co | 44,969 | 10,132 | Union Pacific Corp | 73,273 | 10,129 | ||||||
Medtronic PLC | 160,502 | 14,599 | TOTAL COMMON STOCKS | $ | 649,647 | ||||||
$ | 37,713 | INVESTMENT COMPANIES - 1.33% | Shares HeldValue (000's) | ||||||||
Healthcare - Services- 0.50% | Money Market Funds- 1.33% | ||||||||||
HCA HealthcareInc | 26,763 | 3,331 | Principal Government Money Market Fund | 8,817,405 | 8,817 | ||||||
Insurance - 6.94% | 2.11%(a),(b) | ||||||||||
TOTAL INVESTMENT COMPANIES | $ | 8,817 | |||||||||
Allstate Corp/The | 117,231 | 9,687 | Total Investments | $ | 658,464 | ||||||
Chubb Ltd | 117,339 | 15,158 | Other Assets and Liabilities - 0.44% | 2,920 | |||||||
Fairfax Financial Holdings Ltd | 10,014 | 4,407 | TOTAL NET ASSETS - 100.00% | $ | 661,384 | ||||||
Fidelity National FinancialInc | 337,253 | 10,603 | |||||||||
Swiss Re AG ADR | 264,038 | 6,049 | |||||||||
$ | 45,904 | ||||||||||
Machinery - Diversified- 1.14% | |||||||||||
Deere & Co | 50,483 | 7,531 | |||||||||
Media - 1.44% | |||||||||||
Walt Disney Co/The | 87,056 | 9,546 |
See accompanying notes.
178
Schedule of Investments Equity Income Account December 31, 2018
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. | |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Sector | Percent | ||
Financial | 26.71 | % | |
Consumer, Non-cyclical | 20.09 | % | |
Consumer, Cyclical | 11.03 | % | |
Technology | 9.56 | % | |
Energy | 9.20 | % | |
Utilities | 7.26 | % | |
Industrial | 6.09 | % | |
Communications | 5.03 | % | |
Basic Materials | 3.26 | % | |
Investment Companies | 1.33 | % | |
Other Assets and Liabilities | 0.44 | % | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 10,695 | $ | 90,985 | $ | 92,863 | $ | 8,817 | |||
$ | 10,695 | $ | 90,985 | $ | 92,863 | $ | 8,817 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 133 | $ | — | $ | — | $ | — | |||
$ | 133 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
179
Schedule of Investments | ||||||||||||
Government & High Quality Bond Account | ||||||||||||
December 31, 2018 | ||||||||||||
INVESTMENT COMPANIES - 0.58% | Shares Held Value (000's) | Principal | ||||||||||
Money Market Funds- 0.58% | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||||
Principal Government Money Market Fund | 1,277,532 | $ | 1,278 | Mortgage Backed Securities (continued) | ||||||||
2.11%(a),(b) | Fannie Mae REMICS | |||||||||||
TOTAL INVESTMENT COMPANIES | $ | 1,278 | 1.54%, 06/25/2045(c),(d) | $ | 5,111 | $ | 283 | |||||
Principal | 2.00%, 02/25/2040 | 754 | 735 | |||||||||
BONDS - 29.96% | Amount (000's) Value (000's) | 3.00%, 04/25/2042 | 1,022 | 1,010 | ||||||||
Commercial Mortgage Backed Securities - 12.32% | 3.00%, 02/25/2043 | 483 | 481 | |||||||||
CD 2017-CD3 Mortgage Trust | 3.00%, 01/25/2046 | 805 | 799 | |||||||||
3.98%, 02/10/2050(c) | $ | 1,000 | $ | 985 | 3.50%, 01/25/2040(d) | 2,937 | 321 | |||||
COMM 2014-CCRE19 Mortgage Trust | 3.50%, 11/25/2042 | 2,500 | 2,569 | |||||||||
4.72%, 08/10/2047(c) | 600 | 608 | 4.00%, 12/25/2039(d) | 1,487 | 183 | |||||||
COMM 2014-UBS5 Mortgage Trust | 4.00%, 11/25/2042(d) | 1,974 | 397 | |||||||||
4.61%, 09/10/2047(c) | 1,000 | 995 | 4.00%, 03/25/2045 | 1,000 | 1,068 | |||||||
Freddie Mac Multifamily Structured Pass | 4.00%, 04/25/2047 | 643 | 685 | |||||||||
Through Certificates | 4.50%, 04/25/2045(d) | 3,599 | 841 | |||||||||
2.65%, 08/25/2026 | 1,300 | 1,251 | 7.00%, 04/25/2032 | 125 | 139 | |||||||
3.19%, 09/25/2027(c) | 1,330 | 1,317 | Freddie Mac REMICS | |||||||||
3.29%, 11/25/2027 | 1,100 | 1,096 | 1.33%, 05/15/2038(c),(d) | 4,218 | 161 | |||||||
3.44%, 12/25/2027 | 1,000 | 1,009 | 1.50%, 04/15/2028 | 1,120 | 1,073 | |||||||
3.60%, 01/25/2028 | 1,330 | 1,357 | 2.50%, 11/15/2032 | 1,024 | 993 | |||||||
3.65%, 02/25/2028(c) | 700 | 717 | 2.50%, 02/15/2043 | 1,022 | 989 | |||||||
3.90%, 06/25/2051 | 700 | 730 | 3.00%, 11/15/2030(d) | 2,612 | 165 | |||||||
GinnieMae | 3.00%, 11/15/2035 | 950 | 919 | |||||||||
0.52%, 06/16/2060(c),(d) | 7,466 | 423 | 3.00%, 06/15/2040 | 519 | 519 | |||||||
0.57%, 12/16/2059(c),(d) | 7,850 | 456 | 3.00%, 10/15/2041 | 422 | 422 | |||||||
0.58%, 03/16/2060(c),(d) | 4,943 | 297 | 3.00%, 04/15/2046 | 323 | 321 | |||||||
0.61%, 04/16/2047(c),(d) | 10,952 | 436 | 3.50%, 03/15/2029 | 336 | 346 | |||||||
0.61%, 10/16/2054(c),(d) | 10,910 | 332 | 3.50%, 08/15/2040(d) | 2,914 | 336 | |||||||
0.64%, 11/16/2045(c),(d) | 17,452 | 672 | 3.50%, 05/15/2043 | 885 | 904 | |||||||
0.72%, 11/16/2052(c),(d) | 14,170 | 630 | 3.50%, 09/15/2043 | 1,200 | 1,207 | |||||||
0.80%, 09/16/2053(c),(d) | 9,962 | 414 | 4.00%, 05/15/2039 | 4,200 | 4,312 | |||||||
0.81%, 02/16/2053(c),(d) | 11,960 | 628 | 4.00%, 01/15/2045 | 1,282 | 1,365 | |||||||
0.84%, 02/16/2055(c),(d) | 22,082 | 722 | 4.00%, 04/15/2045 | 579 | 609 | |||||||
0.89%, 02/16/2046(c),(d) | 15,334 | 717 | GinnieMae | |||||||||
0.90%, 03/16/2052(c),(d) | 12,826 | 749 | 3.50%, 12/20/2034(d) | 1,112 | 25 | |||||||
2.60%, 05/16/2059 | 685 | 645 | 3.50%, 05/20/2039 | 114 | 114 | |||||||
2.60%, 03/16/2060 | 1,166 | 1,101 | 3.50%, 05/20/2043(d) | 4,559 | 896 | |||||||
GS Mortgage Securities Trust 2014-GC20 | 3.50%, 10/20/2044(d) | 5,638 | 894 | |||||||||
4.97%, 04/10/2047(c) | 300 | 299 | 3.50%, 11/20/2045 | 930 | 925 | |||||||
JP Morgan Chase Commercial Mortgage | 4.00%, 02/20/2044(d) | 3,549 | 638 | |||||||||
Securities Trust 2011-C5 | 4.00%, 04/20/2044(d) | 1,799 | 313 | |||||||||
5.41%, 08/15/2046(c),(e) | 2,000 | 2,079 | 4.00%, 01/20/2048(d) | 2,035 | 400 | |||||||
JP Morgan Chase Commercial Mortgage | JP Morgan Mortgage Trust 2016-4 | |||||||||||
Securities Trust 2013-C16 | 3.50%, 10/25/2046(c),(e) | 794 | 781 | |||||||||
4.96%, 12/15/2046(c) | 1,800 | 1,871 | JP Morgan Mortgage Trust 2017-3 | |||||||||
JPMDB Commercial Mortgage Securities Trust | 3.86%, 08/25/2047(c),(e) | 581 | 569 | |||||||||
2018- | C8 | JP Morgan Mortgage Trust 2018-8 | ||||||||||
4.75%, 06/15/2051(c) | 500 | 491 | 4.00%, 01/25/2049(c),(e) | 1,076 | 1,065 | |||||||
WFRBS Commercial Mortgage Trust 2013-C14 | New Residential Mortgage Loan Trust 2014-1 | |||||||||||
3.98%, 06/15/2046(c),(e) | 1,000 | 907 | 5.00%, 01/25/2054(c),(e) | 1,596 | 1,657 | |||||||
WFRBS Commercial Mortgage Trust 2014-C23 | New Residential Mortgage Loan Trust 2015-2 | |||||||||||
4.38%, 10/15/2057(c) | 1,000 | 1,028 | 5.55%, 08/25/2055(c),(e) | 1,145 | 1,227 | |||||||
WFRBS Commercial Mortgage Trust 2014-LC14 | Sequoia Mortgage Trust 2013-2 | |||||||||||
4.34%, 03/15/2047(c) | 2,450 | 2,419 | 3.64%, 02/25/2043(c) | 771 | 769 | |||||||
$ | 27,381 | Sequoia Mortgage Trust 2017-5 | ||||||||||
Home Equity Asset Backed Securities- 0.37% | 3.50%, 08/25/2047(c),(e) | 350 | 341 | |||||||||
ACE Securities Corp Mortgage Loan Trust Series | Sequoia Mortgage Trust 2018-5 | |||||||||||
2007- | D1 | 3.50%, 05/25/2048(c),(e) | 670 | 655 | ||||||||
6.93%, 02/25/2038(c),(e) | 873 | 823 | $ | 36,617 | ||||||||
Mortgage Backed Securities - 16.47% | Other Asset Backed Securities - 0.80% | |||||||||||
EverBankMortgage Loan Trust 18-1 | Chase Funding Trust Series 2004-1 | |||||||||||
3.50%, 02/25/2048(c),(e) | 661 | 650 | 2.97%, 12/25/2033 | 97 | 96 | |||||||
Fannie Mae Grantor Trust 2005-T1 | 1.00 x 1 Month USD LIBOR + 0.46% | |||||||||||
2.86%, 05/25/2035 | 236 | 235 | CNH Equipment Trust 2016-C | |||||||||
1.00 x 1 Month USD LIBOR + 0.35% | 1.76%, 09/15/2023 | 500 | 490 | |||||||||
Fannie Mae Interest Strip | TowdPoint Mortgage Trust | |||||||||||
3.50%, 12/25/2043(c),(d) | 1,688 | 311 | 4.25%, 10/25/2053(c),(e) | 550 | 568 |
See accompanying notes.
180
Schedule of Investments Government & High Quality Bond Account December 31, 2018
Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | |||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Other Asset Backed Securities (continued) | Federal Home Loan Mortgage Corporation (FHLMC) (continued) | ||||||||||
TowdPoint Mortgage Trust 2017-6 | 6.50%, 04/01/2024 | $ | 3 | $ | 3 | ||||||
3.25%, 10/25/2057(c),(e) | $ | 700 | $ | 620 | 6.50%, 04/01/2026 | 2 | 2 | ||||
$ | 1,774 | 6.50%, 05/01/2026 | 3 | 3 | |||||||
TOTAL BONDS | $ | 66,595 | 6.50%, 05/01/2026 | 1 | 1 | ||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | 6.50%, 01/01/2028 | 4 | 5 | |||||||
AGENCY OBLIGATIONS- 69.84% | Amount (000's) Value (000's) | 6.50%, 03/01/2028 | 2 | 3 | |||||||
Federal Home Loan Mortgage Corporation (FHLMC)- 15.07% | 6.50%, 10/01/2028 | 17 | 19 | ||||||||
2.00%, 10/01/2031 | $ | 778 | $ | 744 | 6.50%, 11/01/2028 | 4 | 4 | ||||
2.50%, 02/01/2028 | 759 | 750 | 6.50%, 12/01/2028 | 8 | 9 | ||||||
3.00%, 02/01/2027 | 273 | 274 | 6.50%, 03/01/2029 | 4 | 4 | ||||||
3.00%, 01/01/2033 | 1,036 | 1,033 | 6.50%, 07/01/2031 | 19 | 21 | ||||||
3.00%, 08/01/2042 | 770 | 756 | 6.50%, 08/01/2031 | 5 | 6 | ||||||
3.00%, 10/01/2042 | 1,142 | 1,123 | 6.50%, 10/01/2031 | 8 | 9 | ||||||
3.00%, 10/01/2042 | 1,094 | 1,076 | 6.50%, 10/01/2031 | 8 | 9 | ||||||
3.00%, 10/01/2042 | 564 | 555 | 6.50%, 12/01/2031 | 15 | 16 | ||||||
3.00%, 05/01/2043 | 807 | 792 | 6.50%, 02/01/2032 | 14 | 16 | ||||||
3.00%, 10/01/2046 | 838 | 821 | 6.50%, 05/01/2032 | 37 | 43 | ||||||
3.00%, 01/01/2047 | 1,112 | 1,089 | 6.50%, 04/01/2035 | 6 | 7 | ||||||
3.50%, 02/01/2032 | 1,228 | 1,250 | 7.00%, 09/01/2023 | 6 | 6 | ||||||
3.50%, 04/01/2042 | 1,748 | 1,761 | 7.00%, 12/01/2023 | 2 | 2 | ||||||
3.50%, 05/01/2042 | 617 | 622 | 7.00%, 01/01/2024 | 3 | 3 | ||||||
3.50%, 07/01/2042 | 2,260 | 2,277 | 7.00%, 09/01/2027 | 4 | 4 | ||||||
3.50%, 10/01/2042 | 591 | 595 | 7.00%, 01/01/2028 | 32 | 34 | ||||||
3.50%, 02/01/2044 | 915 | 920 | 7.00%, 04/01/2028 | 15 | 17 | ||||||
3.50%, 08/01/2045 | 947 | 954 | 7.00%, 05/01/2028 | 2 | 3 | ||||||
3.50%, 07/01/2046 | 765 | 769 | 7.00%, 10/01/2031 | 12 | 13 | ||||||
3.50%, 01/01/2047 | 2,094 | 2,102 | 7.00%, 10/01/2031 | 7 | 7 | ||||||
3.50%, 01/01/2048 | 1,105 | 1,110 | 7.00%, 04/01/2032 | 53 | 60 | ||||||
4.00%, 07/01/2042 | 801 | 826 | 7.50%, 10/01/2030 | 10 | 11 | ||||||
4.00%, 01/01/2043 | 1,089 | 1,121 | 7.50%, 02/01/2031 | 9 | 10 | ||||||
4.00%, 06/01/2043 | 1,304 | 1,339 | 7.50%, 02/01/2031 | 4 | 4 | ||||||
4.00%, 10/01/2045 | 1,318 | 1,357 | 7.50%, 02/01/2031 | 3 | 3 | ||||||
4.00%, 08/01/2047 | 1,601 | 1,646 | 8.00%, 10/01/2030 | 16 | 19 | ||||||
4.00%, 01/01/2048 | 1,329 | 1,368 | 8.50%, 07/01/2029 | 17 | 18 | ||||||
4.00%, 06/01/2048 | 948 | 975 | $ | 33,499 | |||||||
4.50%, 09/01/2032 | 14 | 14 | Federal National Mortgage Association (FNMA) - 37.24% | ||||||||
1.00 x US Treasury Yield Curve Rate T | 2.00%, 02/01/2032 | 464 | 444 | ||||||||
Note Constant Maturity 1 Year + 2.23% | 2.50%, 06/01/2027 | 1,219 | 1,203 | ||||||||
4.50%, 11/01/2043 | 1,032 | 1,087 | 2.50%, 08/01/2028 | 830 | 819 | ||||||
5.00%, 10/01/2025 | 132 | 138 | 2.50%, 12/01/2028 | 539 | 532 | ||||||
5.00%, 02/01/2033 | 168 | 178 | 2.50%, 12/01/2031 | 923 | 902 | ||||||
5.00%, 06/01/2033 | 183 | 193 | 3.00%, 05/01/2029 | 915 | 916 | ||||||
5.00%, 01/01/2034 | 524 | 557 | 3.00%, 08/01/2031 | 1,790 | 1,791 | ||||||
5.00%, 07/01/2035 | 11 | 12 | 3.00%, 10/01/2036 | 671 | 664 | ||||||
5.00%, 07/01/2035 | 106 | 113 | 3.00%, 10/01/2042 | 1,593 | 1,567 | ||||||
5.00%, 07/01/2035 | 25 | 26 | 3.00%, 11/01/2042 | 1,756 | 1,727 | ||||||
5.00%, 10/01/2035 | 51 | 55 | 3.00%, 12/01/2042 | 1,553 | 1,527 | ||||||
5.50%, 03/01/2033 | 117 | 126 | 3.00%, 02/01/2043 | 1,108 | 1,089 | ||||||
5.50%, 04/01/2038 | 7 | 8 | 3.00%, 04/01/2043 | 1,000 | 982 | ||||||
5.50%, 05/01/2038 | 42 | 45 | 3.00%, 06/01/2043 | 1,970 | 1,937 | ||||||
6.00%, 12/01/2023 | 3 | 3 | 3.00%, 08/01/2043 | 1,377 | 1,354 | ||||||
6.00%, 05/01/2031 | 12 | 14 | 3.00%, 09/01/2046 | 1,607 | 1,574 | ||||||
6.00%, 12/01/2031 | 14 | 15 | 3.00%, 10/01/2046 | 1,100 | 1,075 | ||||||
6.00%, 09/01/2032 | 7 | 7 | 3.00%, 11/01/2046 | 1,677 | 1,643 | ||||||
6.00%, 11/01/2033 | 52 | 56 | 3.00%, 01/01/2047 | 975 | 956 | ||||||
6.00%, 11/01/2033 | 23 | 25 | 3.50%, 08/01/2031 | 900 | 913 | ||||||
6.00%, 09/01/2034 | 53 | 58 | 3.50%, 02/01/2033 | 1,355 | 1,373 | ||||||
6.00%, 02/01/2035 | 50 | 55 | 3.50%, 02/01/2042 | 1,229 | 1,238 | ||||||
6.00%, 10/01/2036 | 50 | 54 | 3.50%, 09/01/2042 | 2,057 | 2,073 | ||||||
6.00%, 03/01/2037 | 40 | 43 | 3.50%, 11/01/2042 | 1,374 | 1,385 | ||||||
6.00%, 01/01/2038 | 91 | 100 | 3.50%, 12/01/2042 | 1,437 | 1,448 | ||||||
6.00%, 01/01/2038 | 8 | 8 | 3.50%, 02/01/2043 | 527 | 532 | ||||||
6.00%, 04/01/2038 | 60 | 66 | 3.50%, 09/01/2044 | 2,164 | 2,184 | ||||||
6.50%, 08/01/2021 | 1 | 1 | 3.50%, 10/01/2044 | 651 | 658 | ||||||
6.50%, 12/01/2021 | 9 | 10 | 3.50%, 11/01/2044 | 638 | 646 | ||||||
6.50%, 04/01/2022 | 12 | 13 | 3.50%, 03/01/2045 | 664 | 669 | ||||||
6.50%, 05/01/2022 | 8 | 8 | 3.50%, 03/01/2045 | 1,501 | 1,508 | ||||||
6.50%, 05/01/2023 | 12 | 12 | 3.50%, 06/01/2045 | 1,130 | 1,140 |
See accompanying notes.
181
Schedule of Investments | |||||||||||
Government & High Quality Bond Account | |||||||||||
December 31, 2018 | |||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal National Mortgage Association (FNMA) (continued) | Federal National Mortgage Association (FNMA) (continued) | ||||||||||
3.50%, 09/01/2045 | $ | 952 | $ | 956 | 6.00%, 01/01/2033 | $ | 55 | $ | 60 | ||
3.50%, 10/01/2045 | 725 | 732 | 6.00%, 05/01/2037 | 167 | 179 | ||||||
3.50%, 11/01/2045 | 750 | 755 | 6.00%, 07/01/2037 | 141 | 153 | ||||||
3.50%, 01/01/2046 | 728 | 735 | 6.00%, 11/01/2037 | 3 | 3 | ||||||
3.50%, 03/01/2046 | 520 | 524 | 6.00%, 12/01/2037 | 8 | 9 | ||||||
3.50%, 04/01/2046 | 1,143 | 1,152 | 6.00%, 03/01/2038 | 63 | 69 | ||||||
3.50%, 03/01/2047 | 1,086 | 1,093 | 6.50%, 11/01/2023 | 18 | 19 | ||||||
3.50%, 10/01/2047 | 811 | 816 | 6.50%, 05/01/2024 | 9 | 9 | ||||||
3.52%, 12/01/2032 | 12 | 12 | 6.50%, 09/01/2024 | 10 | 11 | ||||||
1.00 x 12 Month USD LIBOR + 1.64% | 6.50%, 07/01/2025 | 10 | 11 | ||||||||
4.00%, 01/01/2034 | 566 | 587 | 6.50%, 08/01/2025 | 18 | 19 | ||||||
4.00%, 10/01/2037 | 1,046 | 1,074 | 6.50%, 02/01/2026 | 3 | 3 | ||||||
4.00%, 02/01/2041 | 1,537 | 1,585 | 6.50%, 03/01/2026 | 2 | 2 | ||||||
4.00%, 02/01/2042 | 893 | 919 | 6.50%, 05/01/2026 | 3 | 3 | ||||||
4.00%, 08/01/2043 | 519 | 537 | 6.50%, 06/01/2026 | 1 | 1 | ||||||
4.00%, 10/01/2043 | 441 | 453 | 6.50%, 07/01/2028 | 9 | 10 | ||||||
4.00%, 04/01/2044 | 344 | 355 | 6.50%, 09/01/2028 | 17 | 18 | ||||||
4.00%, 08/01/2044 | 586 | 606 | 6.50%, 02/01/2029 | 3 | 3 | ||||||
4.00%, 10/01/2044 | 1,732 | 1,775 | 6.50%, 03/01/2029 | 5 | 6 | ||||||
4.00%, 11/01/2044 | 555 | 574 | 6.50%, 04/01/2029 | 4 | 5 | ||||||
4.00%, 12/01/2044 | 936 | 967 | 6.50%, 06/01/2031 | 9 | 10 | ||||||
4.00%, 02/01/2045 | 963 | 995 | 6.50%, 06/01/2031 | 10 | 11 | ||||||
4.00%, 08/01/2045 | 901 | 931 | 6.50%, 01/01/2032 | 4 | 4 | ||||||
4.00%, 09/01/2045 | 2,020 | 2,087 | 6.50%, 04/01/2032 | 34 | 37 | ||||||
4.00%, 05/01/2046 | 1,700 | 1,752 | 6.50%, 08/01/2032 | 10 | 11 | ||||||
4.00%, 07/01/2046 | 785 | 810 | 6.50%, 11/01/2032 | 15 | 16 | ||||||
4.00%, 07/01/2047 | 1,134 | 1,167 | 6.50%, 02/01/2033 | 20 | 21 | ||||||
4.00%, 10/01/2047 | 983 | 1,011 | 6.50%, 12/01/2036 | 34 | 37 | ||||||
4.00%, 12/01/2047 | 903 | 930 | 6.50%, 07/01/2037 | 17 | 18 | ||||||
4.33%, 07/01/2034 | 20 | 21 | 6.50%, 07/01/2037 | 28 | 30 | ||||||
1.00 x US Treasury Yield Curve Rate T | 6.50%, 02/01/2038 | 30 | 34 | ||||||||
Note Constant Maturity 1 Year + 2.21% | 7.00%, 08/01/2028 | 17 | 19 | ||||||||
4.48%, 12/01/2033 | 129 | 134 | 7.00%, 12/01/2028 | 14 | 16 | ||||||
1.00 x 12 Month USD LIBOR + 1.60% | 7.00%, 10/01/2029 | 14 | 16 | ||||||||
4.50%, 12/01/2019 | 5 | 5 | 7.00%, 05/01/2031 | 4 | 4 | ||||||
4.50%, 01/01/2020 | 18 | 18 | 7.00%, 11/01/2031 | 21 | 23 | ||||||
4.50%, 08/01/2039 | 1,803 | 1,888 | 7.50%, 04/01/2022 | 1 | 1 | ||||||
4.50%, 03/01/2042 | 472 | 496 | 7.50%, 11/01/2029 | 13 | 13 | ||||||
4.50%, 09/01/2043 | 1,886 | 1,986 | 8.00%, 05/01/2027 | 9 | 9 | ||||||
4.50%, 10/01/2043 | 997 | 1,047 | 8.00%, 09/01/2027 | 4 | 4 | ||||||
4.50%, 11/01/2043 | 1,095 | 1,153 | 8.00%, 06/01/2030 | 2 | 2 | ||||||
4.50%, 09/01/2045 | 816 | 857 | 8.50%, 10/01/2027 | 27 | 27 | ||||||
4.50%, 10/01/2045 | 1,039 | 1,094 | 9.00%, 09/01/2030 | 1 | 1 | ||||||
4.50%, 11/01/2045 | 1,494 | 1,570 | $ | 82,766 | |||||||
4.50%, 09/01/2048 | 1,972 | 2,073 | Government National Mortgage Association (GNMA)- 7.57% | ||||||||
5.00%, 05/01/2033 | 1,309 | 1,401 | 3.00%, 11/15/2042 | 1,005 | 995 | ||||||
5.00%, 04/01/2035 | 125 | 133 | 3.00%, 12/15/2042 | 1,800 | 1,786 | ||||||
5.00%, 04/01/2035 | 98 | 104 | 3.00%, 02/15/2043 | 1,539 | 1,522 | ||||||
5.00%, 07/01/2035 | 6 | 6 | 3.50%, 01/15/2043 | 1,260 | 1,275 | ||||||
5.00%, 02/01/2038 | 407 | 436 | 3.50%, 05/15/2043 | 1,423 | 1,440 | ||||||
5.00%, 02/01/2040 | 1,432 | 1,534 | 3.50%, 06/20/2043 | 864 | 872 | ||||||
5.00%, 07/01/2041 | 1,125 | 1,205 | 3.50%, 04/20/2045 | 847 | 853 | ||||||
5.50%, 07/01/2019 | 1 | 1 | 3.50%, 09/20/2045 | 1,273 | 1,284 | ||||||
5.50%, 08/01/2019 | 1 | 1 | 3.50%, 06/20/2046 | 119 | 120 | ||||||
5.50%, 08/01/2019 | 1 | 1 | 3.50%, 02/20/2047 | 887 | 892 | ||||||
5.50%, 08/01/2019 | 13 | 13 | 3.50%, 05/20/2047 | 1,014 | 1,027 | ||||||
5.50%, 08/01/2019 | 1 | 1 | 3.50%, 11/20/2047 | 782 | 787 | ||||||
5.50%, 08/01/2019 | 1 | 1 | 4.00%, 08/15/2041 | 1,043 | 1,078 | ||||||
5.50%, 09/01/2019 | 5 | 5 | 4.00%, 07/20/2047 | 1,026 | 1,058 | ||||||
5.50%, 10/01/2019 | 1 | 1 | 4.50%, 07/15/2040 | 593 | 619 | ||||||
5.50%, 05/01/2024 | 9 | 10 | 5.00%, 09/15/2033 | 5 | 6 | ||||||
5.50%, 05/01/2033 | 15 | 15 | 5.00%, 02/15/2034 | 320 | 339 | ||||||
5.50%, 06/01/2033 | 66 | 71 | 5.00%, 09/15/2039 | 41 | 43 | ||||||
5.50%, 02/01/2037 | 5 | 5 | 5.50%, 11/15/2033 | 29 | 31 | ||||||
5.50%, 03/01/2038 | 117 | 126 | 5.50%, 05/20/2035 | 136 | 145 | ||||||
6.00%, 06/01/2022 | 13 | 14 | 5.50%, 03/15/2039 | 88 | 93 | ||||||
6.00%, 11/01/2028 | 13 | 14 | 6.00%, 04/20/2026 | 4 | 5 | ||||||
6.00%, 12/01/2031 | 9 | 10 | 6.00%, 05/20/2026 | 4 | 4 |
See accompanying notes.
182
Schedule of Investments
Government & High Quality Bond Account
December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | (a) | Affiliated Security. Security is either an affiliate (and registered under the | ||||||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | Investment Company Act of 1940) or an affiliate as defined by the Investment | |||||||||||||
Government National Mortgage Association (GNMA) (continued) | Company Act of 1940 (controls 5.0% or more of the outstanding voting | ||||||||||||||
6.00%, 03/20/2028 | $ | 3 | $ | 3 | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||||
6.00%, 06/20/2028 | 14 | 15 | information. | ||||||||||||
6.00%, 07/20/2028 | 7 | 8 | (b) | Current yield shown is as of period end. | |||||||||||
6.00%, 02/20/2029 | 8 | 9 | (c) | Certain variable rate securities are not based on a published reference rate | |||||||||||
6.00%, 03/20/2029 | 16 | 17 | and spread but are determined by the issuer or agent and are based on current | ||||||||||||
6.00%, 07/20/2029 | 18 | 19 | market conditions. These securities do not indicate a reference rate and | ||||||||||||
6.00%, 07/20/2033 | 123 | 133 | spread in their description. Rate shown is the rate in effect as of period end. | ||||||||||||
6.50%, 12/20/2025 | 10 | 10 | (d) | Security is an Interest Only Strip. | |||||||||||
6.50%, 01/20/2026 | 6 | 6 | (e) | Security exempt from registration under Rule 144A of the Securities Act of | |||||||||||
6.50%, 02/20/2026 | 7 | 7 | 1933. These securities may be resold in transactions exempt from registration, | ||||||||||||
6.50%, 03/20/2031 | 11 | 12 | normally to qualified institutional buyers. At the end of the period, the value of | ||||||||||||
6.50%, 04/20/2031 | 12 | 13 | these securities totaled $11,942 or 5.37% of net assets. | ||||||||||||
7.00%, 01/15/2028 | 1 | 1 | |||||||||||||
7.00%, 01/15/2028 | 1 | 1 | Portfolio Summary (unaudited) | ||||||||||||
7.00%, 01/15/2028 | 1 | 1 | Sector | Percent | |||||||||||
7.00%, 01/15/2028 | 3 | 3 | Mortgage Securities | 88.67 | % | ||||||||||
7.00%, 01/15/2028 | 4 | 5 | Government | 9.96 | % | ||||||||||
7.00%, 03/15/2028 | 58 | 60 | Asset Backed Securities | 1.17 | % | ||||||||||
7.00%, 05/15/2028 | 7 | 7 | Investment Companies | 0.58 | % | ||||||||||
7.00%, 01/15/2029 | 12 | 13 | Other Assets and Liabilities | (0.38 | )% | ||||||||||
7.00%, 03/15/2029 | 4 | 4 | TOTAL NET ASSETS | 100.00 | % | ||||||||||
7.00%, 05/15/2031 | 8 | 10 | |||||||||||||
7.00%, 09/15/2031 | 30 | 34 | |||||||||||||
7.00%, 06/15/2032 | 120 | 133 | |||||||||||||
7.50%, 02/15/2023 | 1 | 1 | |||||||||||||
7.50%, 02/15/2023 | 1 | 1 | |||||||||||||
7.50%, 04/15/2023 | 7 | 7 | |||||||||||||
7.50%, 09/15/2023 | 2 | 2 | |||||||||||||
7.50%, 09/15/2023 | 1 | 1 | |||||||||||||
7.50%, 10/15/2023 | 4 | 4 | |||||||||||||
7.50%, 11/15/2023 | 3 | 3 | |||||||||||||
8.00%, 07/15/2026 | 1 | 1 | |||||||||||||
8.00%, 08/15/2026 | 2 | 2 | |||||||||||||
8.00%, 01/15/2027 | 1 | 1 | |||||||||||||
8.00%, 02/15/2027 | 1 | 1 | |||||||||||||
$ | 16,822 | ||||||||||||||
U.S. Treasury- 9.96% | |||||||||||||||
1.13%, 03/31/2020 | 1,500 | 1,474 | |||||||||||||
2.00%, 02/15/2025 | 2,700 | 2,612 | |||||||||||||
2.13%, 12/31/2022 | 2,400 | 2,366 | |||||||||||||
3.13%, 05/15/2021 | 2,500 | 2,537 | |||||||||||||
4.25%, 11/15/2040 | 2,550 | 3,082 | |||||||||||||
4.50%, 02/15/2036 | 2,000 | 2,465 | |||||||||||||
5.25%, 11/15/2028 | 2,800 | 3,410 | |||||||||||||
6.25%, 08/15/2023 | 3,600 | 4,182 | |||||||||||||
$ | 22,128 | ||||||||||||||
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY | |||||||||||||||
OBLIGATIONS | $ | 155,215 | |||||||||||||
Total Investments | $ | 223,088 | |||||||||||||
Other Assets and Liabilities - (0.38)% | (849 | ) | |||||||||||||
TOTAL NET ASSETS - 100.00% | $ | 222,239 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||||
Value | Cost | Proceeds | Value | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 2,862 | $ | 53,917 | $ | 55,501 | $ | 1,278 | |||||||
$ | 2,862 | $ | 53,917 | $ | 55,501 | $ | 1,278 | ||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 40 | $ | — | $ | — $ | — | ||||||||
$ | 40 | $ | — | $ | — $ | — | |||||||||
Amounts in thousands |
See accompanying notes.
183
Schedule of Investments | ||||||||||
Income Account | ||||||||||
December 31, 2018 | ||||||||||
COMMON STOCKS - 2.97% | Shares HeldValue (000's) | Principal | ||||||||
Electric - 0.16% | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
GenOn Energy - Class A(a),(b) | 2,032 | $ | 284 | Beverages (continued) | ||||||
Oil & Gas- 0.21% | Anheuser-BuschInBev Worldwide Inc | |||||||||
Riviera Resources Inc/Linn(a) | 16,155 | 255 | 2.50%, 07/15/2022 | $ | 750 | $ | 716 | |||
Roan Resources Inc(a) | 16,155 | 136 | $ | 1,653 | ||||||
$ | 391 | Biotechnology- 2.45% | ||||||||
Transportation - 2.60% | AmgenInc | |||||||||
Trailer BridgeInc(a),(b),(c),(d) | 25,472 | 4,735 | 3.63%, 05/15/2022 | 500 | 504 | |||||
TOTAL COMMON STOCKS | $ | 5,410 | 3.88%, 11/15/2021 | 1,000 | 1,013 | |||||
INVESTMENT COMPANIES - 0.99% | Shares HeldValue (000's) | Celgene Corp | ||||||||
Money Market Funds- 0.99% | 3.45%, 11/15/2027 | 500 | 455 | |||||||
Principal Government Money Market Fund | 1,795,275 | 1,795 | 3.90%, 02/20/2028 | 500 | 469 | |||||
2.11%(e),(f) | Gilead SciencesInc | |||||||||
TOTAL INVESTMENT COMPANIES | $ | 1,795 | 3.65%, 03/01/2026 | 1,000 | 980 | |||||
Principal | 4.40%, 12/01/2021 | 1,000 | 1,032 | |||||||
BONDS - 60.34% | Amount (000's) Value (000's) | $ | 4,453 | |||||||
Apparel - 0.23% | Chemicals - 0.13% | |||||||||
UnderArmour Inc | Westlake Chemical Corp | |||||||||
3.25%, 06/15/2026 | $ | 500 | $ | 419 | 3.60%, 08/15/2026 | 250 | 229 | |||
Automobile Floor Plan Asset Backed Securities - 1.51% | Commercial Services - 0.68% | |||||||||
Ally Master Owner Trust | ERAC USA Finance LLC | |||||||||
2.89%, 06/15/2022 | 1,000 | 1,002 | 7.00%, 10/15/2037(g) | 1,000 | 1,243 | |||||
1.00 x 1 Month USD LIBOR + 0.43% | Computers - 0.93% | |||||||||
Ford Credit Floorplan Master Owner Trust A | Apple Inc | |||||||||
2.86%, 10/15/2023 | 1,000 | 997 | 2.40%, 05/03/2023 | 1,750 | 1,692 | |||||
1.00 x 1 Month USD LIBOR + 0.40% | Credit Card Asset Backed Securities - 0.28% | |||||||||
Navistar Financial Dealer Note Master Owner | Cabela's Credit Card Master Note Trust | |||||||||
Trust II | 3.13%, 07/17/2023 | 500 | 501 | |||||||
3.14%, 09/25/2023(g) | 750 | 750 | 1.00 x 1 Month USD LIBOR + 0.67% | |||||||
1.00 x 1 Month USD LIBOR + 0.63% | Diversified Financial Services- 1.02% | |||||||||
$ | 2,749 | Jefferies Group LLC | ||||||||
Banks - 9.28% | 6.25%, 01/15/2036 | 1,425 | 1,429 | |||||||
Bank of New York Mellon Corp/The | Jefferies Group LLC / Jefferies Group Capital | |||||||||
2.80%, 05/04/2026 | 500 | 471 | Finance Inc | |||||||
CitigroupInc | 4.15%, 01/23/2030 | 500 | 429 | |||||||
3.88%, 03/26/2025 | 1,000 | 967 | $ | 1,858 | ||||||
4.50%, 01/14/2022 | 1,000 | 1,022 | Electric - 7.79% | |||||||
Goldman Sachs GroupInc/The | Black Hills Corp | |||||||||
5.38%, 03/15/2020 | 2,000 | 2,045 | 4.35%, 05/01/2033 | 500 | 501 | |||||
ING Bank NV | Entergy Louisiana LLC | |||||||||
5.00%, 06/09/2021(g) | 1,000 | 1,036 | 3.25%, 04/01/2028 | 500 | 481 | |||||
JPMorgan Chase & Co | 4.20%, 09/01/2048 | 500 | 493 | |||||||
3.63%, 05/13/2024 | 1,000 | 993 | Entergy TexasInc | |||||||
5.99%, 04/29/2049(h) | 717 | 707 | 2.55%, 06/01/2021 | 500 | 492 | |||||
3 Month USD LIBOR + 3.47% | GenOn EnergyInc - Escrow | |||||||||
Morgan Stanley | 0.00%, 10/15/2020(a),(b),(d) | 750 | — | |||||||
5.50%, 07/28/2021 | 1,000 | 1,048 | GenOn EnergyInc/ NRG AmericasInc | |||||||
6.25%, 08/09/2026 | 850 | 941 | 9.39%, 12/01/2023 | 163 | 159 | |||||
PNC Financial Services GroupInc/The | 3 Month USD LIBOR + 6.50% | |||||||||
6.75%, 07/29/2049(h),(i) | 2,000 | 2,032 | LG&E & KU Energy LLC | |||||||
3 Month USD LIBOR + 3.68% | 4.38%, 10/01/2021 | 1,000 | 1,016 | |||||||
SunTrust Bank/Atlanta GA | Metropolitan Edison Co | |||||||||
2.75%, 05/01/2023 | 1,000 | 966 | 3.50%, 03/15/2023(g) | 1,000 | 995 | |||||
SunTrust BanksInc | Oncor Electric Delivery Co LLC | |||||||||
2.70%, 01/27/2022 | 500 | 488 | 5.75%, 03/15/2029(g) | 2,000 | 2,334 | |||||
US Bancorp | PacifiCorp | |||||||||
3.15%, 04/27/2027 | 2,000 | 1,916 | 5.25%, 06/15/2035 | 850 | 948 | |||||
3.60%, 09/11/2024 | 250 | 249 | 6.25%, 10/15/2037 | 500 | 624 | |||||
Wells Fargo & Co | Solar Star Funding LLC | |||||||||
6.56%, 12/31/2049(h) | 2,000 | 1,987 | 5.38%, 06/30/2035(g) | 1,424 | 1,524 | |||||
3 Month USD LIBOR + 3.77% | Southwestern Electric Power Co | |||||||||
$ | 16,868 | 3.55%, 02/15/2022 | 1,000 | 1,002 | ||||||
Beverages - 0.91% | 3.85%, 02/01/2048 | 1,000 | 888 | |||||||
Anheuser-Busch Cos LLC / Anheuser-Busch | TransAlta Corp | |||||||||
InBev Worldwide Inc | 4.50%, 11/15/2022 | 1,750 | 1,702 | |||||||
3.65%, 02/01/2026(g) | 500 | 473 | Tucson Electric Power Co | |||||||
4.70%, 02/01/2036(g) | 500 | 464 | 3.85%, 03/15/2023 | 1,000 | 997 | |||||
$ | 14,156 | |||||||||
See accompanying notes. | 184 |
Schedule of Investments | ||||||||||
Income Account | ||||||||||
December 31, 2018 | ||||||||||
Principal | Principal | |||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | |||||||
Electronics - 0.39% | Oil & Gas (continued) | |||||||||
CorningInc | XTO EnergyInc | |||||||||
4.75%, 03/15/2042 | $ | 750 | $ | 714 | 6.75%, 08/01/2037 | $ | 1,000 | $ | 1,324 | |
Environmental Control - 0.82% | $ | 7,770 | ||||||||
Advanced Disposal ServicesInc | Oil & Gas Services- 2.54% | |||||||||
5.63%, 11/15/2024(g) | 500 | 489 | Archrock Partners LP / ArchrockPartners Finance | |||||||
Republic ServicesInc | Corp | |||||||||
3.55%, 06/01/2022 | 1,000 | 1,004 | 6.00%, 04/01/2021 | 2,000 | 1,920 | |||||
$ | 1,493 | Schlumberger Holdings Corp | ||||||||
Food - 0.27% | 3.63%, 12/21/2022(g) | 500 | 498 | |||||||
Kraft Heinz Foods Co | 4.00%, 12/21/2025(g) | 500 | 494 | |||||||
3.95%, 07/15/2025 | 500 | 484 | Weatherford International Ltd | |||||||
Healthcare - Services- 1.79% | 4.50%, 04/15/2022 | 250 | 146 | |||||||
Encompass Health Corp | 5.13%, 09/15/2020 | 2,000 | 1,560 | |||||||
5.75%, 11/01/2024 | 500 | 495 | $ | 4,618 | ||||||
HCAInc | Other Asset Backed Securities - 1.87% | |||||||||
7.50%, 11/06/2033 | 250 | 263 | Drug Royalty II LP 2 | |||||||
Roche HoldingsInc | 3.48%, 07/15/2023(g) | 377 | 376 | |||||||
3.14%, 09/30/2019(g) | 500 | 500 | Drug Royalty III LP 1 | |||||||
3 Month USD LIBOR + 0.34% | 4.94%, 04/15/2027(g) | 506 | 510 | |||||||
Surgery Center HoldingsInc | 1.00 x 3 Month USD LIBOR + 2.50% | |||||||||
8.88%, 04/15/2021(g) | 2,000 | 1,995 | PFS Financing Corp | |||||||
$ | 3,253 | 3.04%, 03/15/2021(g) | 500 | 500 | ||||||
Housewares- 0.27% | 1.00 x 1 Month USD LIBOR + 0.58% | |||||||||
Newell Brands Inc | Trafigura Securitisation Finance PLC 2017-1 | |||||||||
4.20%, 04/01/2026 | 500 | 489 | 3.31%, 12/15/2020(g) | 1,000 | 1,005 | |||||
Insurance - 2.21% | 1.00 x 1 Month USD LIBOR + 0.85% | |||||||||
Fidelity National FinancialInc | Verizon Owner Trust 2017-3 | |||||||||
4.50%, 08/15/2028(g) | 1,000 | 988 | 2.74%, 04/20/2022(g) | 1,000 | 1,000 | |||||
First American Financial Corp | 1.00 x 1 Month USD LIBOR + 0.27% | |||||||||
4.30%, 02/01/2023 | 2,000 | 2,008 | $ | 3,391 | ||||||
Prudential Financial Inc | Packaging & Containers- 0.55% | |||||||||
7.38%, 06/15/2019 | 1,000 | 1,018 | Sealed Air Corp | |||||||
$ | 4,014 | 6.88%, 07/15/2033(g) | 1,000 | 998 | ||||||
Internet - 0.40% | Pharmaceuticals - 0.53% | |||||||||
Amazon.comInc | AbbVieInc | |||||||||
4.05%, 08/22/2047 | 750 | 733 | 2.90%, 11/06/2022 | 1,000 | 973 | |||||
Iron & Steel- 0.82% | Pipelines - 4.32% | |||||||||
Allegheny TechnologiesInc | ANR Pipeline Co | |||||||||
5.95%, 01/15/2021 | 1,000 | 980 | 9.63%, 11/01/2021 | 1,000 | 1,159 | |||||
7.88%, 08/15/2023 | 500 | 510 | Buckeye Partners LP | |||||||
$ | 1,490 | 3.95%, 12/01/2026 | 500 | 439 | ||||||
Media - 3.12% | 4.35%, 10/15/2024 | 500 | 485 | |||||||
21st Century Fox AmericaInc | Columbia Pipeline GroupInc | |||||||||
6.40%, 12/15/2035 | 1,000 | 1,248 | 4.50%, 06/01/2025 | 1,000 | 1,007 | |||||
Comcast Corp | El Paso Natural Gas Co LLC | |||||||||
6.45%, 03/15/2037 | 2,000 | 2,385 | 7.50%, 11/15/2026 | 2,100 | 2,438 | |||||
Time Warner Cable LLC | Plains All American Pipeline LP / PAA Finance | |||||||||
6.55%, 05/01/2037 | 1,500 | 1,539 | Corp | |||||||
6.75%, 06/15/2039 | 500 | 508 | 4.50%, 12/15/2026 | 500 | 482 | |||||
$ | 5,680 | Southeast Supply Header LLC | ||||||||
4.25%, 06/15/2024(g) | 750 | 756 | ||||||||
Oil & Gas- 4.27% | Southern Natural Gas Co LLC | |||||||||
BP Capital Markets America Inc | 8.00%, 03/01/2032 | 850 | 1,081 | |||||||
3.94%, 09/21/2028 | 1,000 | 1,003 | $ | 7,847 | ||||||
Nabors IndustriesInc | ||||||||||
5.00%, 09/15/2020 | 1,000 | 962 | REITs - 7.95% | |||||||
5.50%, 01/15/2023 | 250 | 198 | Alexandria Real Estate Equities Inc | |||||||
Petro-Canada | 4.30%, 01/15/2026 | 1,000 | 1,000 | |||||||
9.25%, 10/15/2021 | 1,075 | 1,231 | 4.60%, 04/01/2022 | 1,250 | 1,287 | |||||
Phillips 66 | CBL & Associates LP | |||||||||
4.30%, 04/01/2022 | 1,000 | 1,027 | 5.95%, 12/15/2026 | 500 | 382 | |||||
Rowan Cos Inc | CubeSmartLP | |||||||||
4.88%, 06/01/2022 | 750 | 619 | 4.80%, 07/15/2022 | 2,000 | 2,068 | |||||
W&T OffshoreInc | Healthcare Realty TrustInc | |||||||||
9.75%, 11/01/2023(g) | 250 | 219 | 3.63%, 01/15/2028 | 1,000 | 939 | |||||
Whiting Petroleum Corp | ||||||||||
5.75%, 03/15/2021 | 1,250 | 1,187 |
See accompanying notes.
185
Schedule of Investments | |||||||||||
Income Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | |||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
REITs (continued) | Federal Home Loan Mortgage Corporation (FHLMC) (continued) | ||||||||||
Hospitality Properties Trust | 4.00%, 02/01/2045 | $ | 366 | $ | 374 | ||||||
4.65%, 03/15/2024 | $ | 750 | $ | 748 | 4.00%, 02/01/2046 | 686 | 701 | ||||
4.95%, 02/15/2027 | 1,000 | 980 | 4.00%, 06/01/2046 | 742 | 759 | ||||||
5.00%, 08/15/2022 | 750 | 766 | 4.50%, 07/01/2039 | 744 | 779 | ||||||
Omega Healthcare InvestorsInc | 4.50%, 10/01/2041 | 415 | 434 | ||||||||
5.25%, 01/15/2026 | 500 | 509 | 5.00%, 08/01/2019 | 10 | 10 | ||||||
Physicians Realty LP | 9.00%, 01/01/2025 | 2 | 3 | ||||||||
4.30%, 03/15/2027 | 1,000 | 971 | $ | 10,218 | |||||||
Ventas Realty LP / Ventas Capital Corp | Federal National Mortgage Association (FNMA) - 13.73% | ||||||||||
3.25%, 08/15/2022 | 1,750 | 1,729 | 3.00%, 03/01/2042 | 1,032 | 1,015 | ||||||
Welltower Inc | 3.00%, 03/01/2042 | 944 | 928 | ||||||||
6.13%, 04/15/2020 | 1,000 | 1,031 | 3.00%, 05/01/2042 | 529 | 520 | ||||||
Weyerhaeuser Co | 3.00%, 06/01/2042 | 474 | 466 | ||||||||
4.70%, 03/15/2021 | 2,000 | 2,050 | 3.00%, 06/01/2042 | 961 | 946 | ||||||
$ | 14,460 | 3.50%, 12/01/2040 | 752 | 758 | |||||||
Savings & Loans- 0.30% | 3.50%, 12/01/2041 | 249 | 251 | ||||||||
First Niagara Financial GroupInc | 3.50%, 03/01/2042 | 421 | 425 | ||||||||
7.25%, 12/15/2021 | 500 | 547 | 3.50%, 04/01/2042 | 817 | 823 | ||||||
Software - 0.80% | 3.50%, 02/01/2043 | 537 | 541 | ||||||||
Oracle Corp | 3.50%, 03/01/2045 | 655 | 658 | ||||||||
2.50%, 05/15/2022 | 500 | 489 | 3.50%, 06/01/2045 | 1,227 | 1,231 | ||||||
2.95%, 05/15/2025 | 1,000 | 957 | 3.50%, 11/01/2045 | 846 | 849 | ||||||
$ | 1,446 | 3.50%, 05/01/2046 | 756 | 758 | |||||||
Telecommunications - 1.91% | 4.00%, 09/01/2040 | 1,018 | 1,047 | ||||||||
Qwest Corp | 4.00%, 10/01/2041 | 535 | 551 | ||||||||
6.75%, 12/01/2021 | 2,000 | 2,045 | 4.00%, 10/01/2041 | 368 | 378 | ||||||
Sprint Corp | 4.00%, 11/01/2041 | 591 | 607 | ||||||||
7.88%, 09/15/2023 | 250 | 256 | 4.00%, 04/01/2042 | 330 | 339 | ||||||
Sprint Spectrum Co LLC / Sprint Spectrum Co II | 4.00%, 11/01/2043 | 453 | 465 | ||||||||
LLC / Sprint Spectrum Co III LLC | 4.00%, 11/01/2043 | 1,238 | 1,274 | ||||||||
3.36%, 03/20/2023(g) | 172 | 170 | 4.00%, 02/01/2044 | 1,453 | 1,494 | ||||||
5.15%, 03/20/2028(g) | 500 | 491 | 4.00%, 09/01/2044 | 434 | 443 | ||||||
T-Mobile USAInc | 4.00%, 09/01/2045 | 1,391 | 1,420 | ||||||||
6.38%, 03/01/2025 | 500 | 505 | 4.00%, 08/01/2046 | 1,075 | 1,102 | ||||||
$ | 3,467 | 4.00%, 01/01/2047 | 790 | 807 | |||||||
Transportation - 0.00% | 4.50%, 08/01/2040 | 631 | 661 | ||||||||
Trailer BridgeInc | 4.50%, 12/01/2040 | 394 | 413 | ||||||||
0.00%, 11/15/2019(a),(b),(d) | 2,000 | — | 4.50%, 08/01/2041 | 412 | 431 | ||||||
TOTAL BONDS | $ | 109,688 | 4.50%, 05/01/2044 | 557 | 580 | ||||||
Principal | 4.50%, 06/01/2046 | 587 | 608 | ||||||||
CONVERTIBLE BONDS - 0.65% | Amount (000's) Value (000's) | 4.50%, 05/01/2047 | 1,657 | 1,717 | |||||||
4.50%, 05/01/2047 | 385 | 399 | |||||||||
Insurance - 0.65% | 6.50%, 04/01/2032 | 38 | 42 | ||||||||
AmTrustFinancial ServicesInc | $ | 24,947 | |||||||||
2.75%, 12/15/2044 | 1,250 | 1,175 | |||||||||
TOTAL CONVERTIBLE BONDS | $ | 1,175 | Government National Mortgage Association (GNMA)- 0.00% | ||||||||
SENIOR FLOATING RATE INTERESTS | Principal | 9.00%, 02/15/2025 | 2 | 2 | |||||||
- 0.66 | % | Amount (000's) Value (000's) | U.S. Treasury- 14.57% | ||||||||
Pipelines - 0.27% | 1.63%, 11/15/2022 | 1,000 | 968 | ||||||||
BCP Renaissance Parent LLC | 1.75%, 05/15/2022 | 2,000 | 1,953 | ||||||||
6.03%, 10/31/2024(j) | $ | 498 | $ | 483 | 2.00%, 11/15/2021 | 1,000 | 987 | ||||
US LIBOR + 3.50% | 2.00%, 11/15/2026 | 1,000 | 955 | ||||||||
2.25%, 08/15/2027 | 1,000 | 968 | |||||||||
Software - 0.39% | 2.50%, 05/15/2024 | 1,000 | 998 | ||||||||
IvantiSoftwareInc | 2.63%, 11/15/2020 | 2,000 | 2,004 | ||||||||
11.35%, 01/20/2025(j) | 750 | 713 | 2.75%, 02/15/2024 | 1,000 | 1,011 | ||||||
US LIBOR + 9.00% | 2.75%, 11/15/2047 | 1,000 | 946 | ||||||||
TOTAL SENIOR FLOATING RATE INTERESTS | $ | 1,196 | 2.88%, 05/15/2043 | 1,000 | 976 | ||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | 2.88%, 08/15/2045 | 1,000 | 974 | |||||||
AGENCY OBLIGATIONS- 33.92% | Amount (000's) Value (000's) | 2.88%, 11/15/2046 | 1,000 | 972 | |||||||
Federal Home Loan Mortgage Corporation (FHLMC)- 5.62% | 3.00%, 11/15/2044 | 1,000 | 998 | ||||||||
3.00%, 10/01/2042 | $ | 564 | $ | 555 | 3.13%, 05/15/2021 | 1,000 | 1,015 | ||||
3.00%, 11/01/2042 | 566 | 557 | 3.13%, 08/15/2044 | 1,000 | 1,021 | ||||||
3.00%, 12/01/2046 | 1,379 | 1,346 | 3.38%, 05/15/2044 | 1,000 | 1,065 | ||||||
3.50%, 10/01/2041 | 555 | 559 | 3.38%, 11/15/2048 | 1,000 | 1,069 | ||||||
3.50%, 04/01/2042 | 679 | 684 | 3.50%, 02/15/2039 | 1,000 | 1,094 | ||||||
3.50%, 04/01/2042 | 1,380 | 1,390 | 3.63%, 02/15/2020 | 2,000 | 2,022 | ||||||
3.50%, 04/01/2045 | 640 | 642 | 3.63%, 02/15/2044 | 1,000 | 1,108 | ||||||
3.50%, 03/01/2048 | 1,421 | 1,425 | 3.75%, 08/15/2041 | 1,000 | 1,128 |
See accompanying notes.
186
Schedule of Investments Income Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | (g) | Security exempt from registration under Rule 144A of the Securities Act of | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) | Value (000’s) | 1933. These securities may be resold in transactions exempt from registration, | ||||||||
U.S. Treasury (continued) | normally to qualified institutional buyers. At the end of the period, the value of | ||||||||||
3.75%, 11/15/2043 | $ | 2,000 | $ | 2,259 | these securities totaled $19,808 or 10.90% of net assets. | ||||||
$ | 26,491 | (h) | Perpetual security. Perpetual securities pay an indefinite stream of interest, | ||||||||
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY | but they may be called by the issuer at an earlier date. Date shown, if any, | ||||||||||
OBLIGATIONS | $ | 61,658 | reflects the next call date or final legal maturity date. Rate shown is as of | ||||||||
Total Investments | $ | 180,922 | period end. | ||||||||
Other Assets and Liabilities - 0.47% | 849 | (i) | Rate shown is as of period end. The rate may be a variable or floating rate or | ||||||||
TOTAL NET ASSETS - 100.00% | $ | 181,771 | a fixed rate which may convert to a variable or floating rate in the future. | ||||||||
(j) | Rate information disclosed is based on an average weighted rate of the | ||||||||||
underlying tranches as of period end. | |||||||||||
(a) | Non-income producing security | ||||||||||
(b) | The value of these investments was determined using significant unobservable | ||||||||||
inputs. | Portfolio Summary (unaudited) | ||||||||||
(c) | Restricted Security. Please see Restricted Security Sub-Schedule for more | Sector | Percent | ||||||||
information. | Financial | 21.41 | % | ||||||||
(d) | Fair value of these investments is determined in good faith by the Manager | Mortgage Securities | 19.35 | % | |||||||
under procedures established and periodically reviewed by the Board of | Government | 14.57 | % | ||||||||
Directors. Certain inputs used in the valuation may be unobservable; however, | Energy | 11.61 | % | ||||||||
each security is evaluated individually for purposes of ASC 820 which results | Utilities | 7.95 | % | ||||||||
in not all securities being identified as Level 3 of the fair value hierarchy. At | Consumer, Non-cyclical | 6.63 | % | ||||||||
the end of the period, the fair value of these securities totaled $4,735 or 2.60% | Communications | 5.43 | % | ||||||||
of net assets. | Industrial | 4.36 | % | ||||||||
(e) | Affiliated Security. Security is either an affiliate (and registered under the | Asset Backed Securities | 3.66 | % | |||||||
Investment Company Act of 1940) or an affiliate as defined by the Investment | Technology | 2.12 | % | ||||||||
Company Act of 1940 (controls 5.0% or more of the outstanding voting | Investment Companies | 0.99 | % | ||||||||
shares of the security). Please see affiliated sub-schedule for transactional | Basic Materials | 0.95 | % | ||||||||
information. | Consumer, Cyclical | 0.50 | % | ||||||||
(f) | Current yield shown is as of period end. | Other Assets and Liabilities | 0.47 | % | |||||||
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 8,980 | $ | 51,346 | $ | 58,531 | $ | 1,795 | |||
$ | 8,980 | $ | 51,346 | $ | 58,531 | $ | 1,795 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 76 | $ | — | $ | — | $ | — | |||
$ | 76 | $ | — | $ | — | $ | — |
Amounts in thousands | ||||||||||
Restricted Securities | ||||||||||
Security Name | Acquisition Date | Cost | Value | Percent of Net Assets | ||||||
Trailer BridgeInc | 05/07/2012-12/22/2016 | $ | 2,764 | $ | 4,735 | 2.60 | % | |||
Total | $ | 4,735 | 2.60 | % | ||||||
Amounts in thousands. |
See accompanying notes.
187
Schedule of Investments | |||||||||||
International Emerging Markets Account | |||||||||||
December 31, 2018 | |||||||||||
COMMON STOCKS - 94.51% | Shares HeldValue (000's) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Apparel - 0.51% | Healthcare - Services- 0.84% | ||||||||||
Eclat Textile Co Ltd | 38,000 | $ | 430 | BangkokDusitMedical Services PCL | 958,700 | $ | 717 | ||||
Automobile Manufacturers - 3.07% | Home Furnishings- 0.45% | ||||||||||
Hyundai Motor Co | 6,965 | 740 | Haier Electronics Group Co Ltd | 154,000 | 379 | ||||||
Kia Motors Corp | 22,406 | 675 | Insurance - 4.31% | ||||||||
Mahindra & Mahindra Ltd | 103,436 | 1,190 | AIA Group Ltd | 92,200 | 766 | ||||||
$ | 2,605 | Cathay Financial Holding Co Ltd | 700,000 | 1,072 | |||||||
Automobile Parts & Equipment- 1.04% | IRB BrasilResseguros S/A | 22,500 | 484 | ||||||||
WeichaiPower Co Ltd | 769,000 | 880 | PowszechnyZakladUbezpieczen SA | 85,310 | 1,005 | ||||||
Banks - 15.06% | Shin Kong Financial Holding Co Ltd | 1,121,531 | 328 | ||||||||
Banco do BrasilSA | 53,400 | 639 | $ | 3,655 | |||||||
Banco SantanderBrasilSA | 41,200 | 453 | Internet - 13.70% | ||||||||
Bangkok Bank PCL | 132,300 | 840 | Alibaba Group Holding Ltd ADR(b) | 25,411 | 3,483 | ||||||
Bank Rakyat IndonesiaPerseroTbkPT | 2,746,400 | 700 | Baidu Inc ADR(b) | 4,735 | 751 | ||||||
China Construction Bank Corp | 2,287,902 | 1,873 | Naspers Ltd | 8,680 | 1,738 | ||||||
Credicorp Ltd | 7,225 | 1,602 | Pinduoduo Inc ADR(b) | 11,032 | 248 | ||||||
FirstRand Ltd | 103,042 | 469 | TencentHoldings Ltd | 123,000 | 4,930 | ||||||
GrupoFinanciero BanorteSAB de CV | 92,100 | 450 | Weibo Corp ADR(b) | 8,310 | 485 | ||||||
HDFC Bank Ltd | 36,192 | 1,101 | $ | 11,635 | |||||||
Industrial & Commercial Bank of China Ltd | 1,842,000 | 1,310 | Iron & Steel- 3.52% | ||||||||
KiatnakinBank PCL | 204,400 | 416 | POSCO | 4,083 | 893 | ||||||
Malayan Banking Bhd | 304,000 | 698 | Vale SA | 160,121 | 2,099 | ||||||
OTP Bank Nyrt | 22,070 | 892 | $ | 2,992 | |||||||
Postal Savings Bank of China Co Ltd(a) | 953,000 | 502 | Lodging - 0.42% | ||||||||
Sberbank of Russia PJSC ADR | 77,032 | 844 | Sands China Ltd | 81,200 | 354 | ||||||
$ | 12,789 | Machinery - Construction & Mining- 1.34% | |||||||||
Beverages - 0.45% | Doosan Infracore Co Ltd(b) | 67,892 | 463 | ||||||||
Jiangsu Yanghe Brewery Joint-Stock Co Ltd | 27,400 | 380 | United Tractors TbkPT | 353,200 | 672 | ||||||
Building Materials - 1.60% | $ | 1,135 | |||||||||
Anhui Conch Cement Co Ltd | 95,698 | 409 | Mining - 1.05% | ||||||||
China National Building Material Co Ltd | 416,000 | 285 | Anglo American PLC | 39,910 | 892 | ||||||
Xinyi Glass Holdings Ltd | 602,000 | 665 | Oil & Gas- 9.37% | ||||||||
$ | 1,359 | China Petroleum & Chemical Corp | 1,088,000 | 775 | |||||||
Chemicals - 1.00% | CNOOC Ltd | 435,000 | 670 | ||||||||
Sasol Ltd | 28,573 | 849 | Kunlun Energy Co Ltd | 362,000 | 385 | ||||||
Coal - 0.58% | LUKOIL PJSC ADR | 30,198 | 2,163 | ||||||||
China Shenhua Energy Co Ltd | 224,500 | 490 | PolskiKoncern Naftowy ORLEN SA | 35,242 | 1,021 | ||||||
Computers - 2.83% | PTT PCL | 808,500 | 1,139 | ||||||||
Infosys Ltd | 111,207 | 1,051 | Reliance Industries Ltd | 85,416 | 1,371 | ||||||
Tata Consultancy Services Ltd | 49,839 | 1,351 | SK Innovation Co Ltd | 2,691 | 432 | ||||||
$ | 2,402 | $ | 7,956 | ||||||||
Distribution & Wholesale- 0.41% | Pharmaceuticals - 0.58% | ||||||||||
Sime Darby Bhd | 603,900 | 351 | Hypera SA | 63,600 | 495 | ||||||
Diversified Financial Services- 5.31% | Real Estate - 1.95% | ||||||||||
CapitecBank Holdings Ltd | 5,460 | 423 | China Resources Land Ltd | 266,000 | 1,023 | ||||||
CTBC Financial Holding Co Ltd | 1,625,000 | 1,069 | Sunac China Holdings Ltd | 194,000 | 630 | ||||||
Hana Financial GroupInc | 13,130 | 427 | $ | 1,653 | |||||||
Housing Development Finance Corp Ltd | 53,712 | 1,513 | Retail - 1.80% | ||||||||
KB Financial GroupInc | 10,559 | 441 | JubilantFoodworks Ltd | 21,861 | 392 | ||||||
Old Mutual Ltd | 408,607 | 635 | Wal-Mart de Mexico SAB de CV | 447,700 | 1,138 | ||||||
$ | 4,508 | $ | 1,530 | ||||||||
Electric - 1.08% | Semiconductors - 12.96% | ||||||||||
China Longyuan Power Group Corp Ltd | 571,000 | 390 | Chipbond Technology Corp | 354,000 | 711 | ||||||
Tenaga Nasional BHD | 160,900 | 530 | Nanya Technology Corp | 97,000 | 174 | ||||||
$ | 920 | RealtekSemiconductor Corp | 91,000 | 422 | |||||||
Engineering & Construction- 2.35% | Samsung Electronics Co Ltd | 125,504 | 4,369 | ||||||||
China Railway Construction Corp Ltd | 627,000 | 871 | SK HynixInc | 7,893 | 430 | ||||||
Larsen & Toubro Ltd | 54,687 | 1,125 | Taiwan Semiconductor Manufacturing Co Ltd | 674,164 | 4,895 | ||||||
$ | 1,996 | $ | 11,001 | ||||||||
Food - 1.91% | Telecommunications - 3.71% | ||||||||||
Uni-President Enterprises Corp | 443,000 | 1,005 | China Mobile Ltd | 175,000 | 1,693 | ||||||
X5 Retail Group NV | 24,779 | 615 | China Telecom Corp Ltd | 2,170,000 | 1,112 | ||||||
$ | 1,620 | TIM ParticipacoesSA | 113,200 | 346 | |||||||
Forest Products & Paper- 0.54% | $ | 3,151 | |||||||||
SuzanoPapel e CeluloseSA | 46,300 | 455 | TOTAL COMMON STOCKS | $ | 80,231 | ||||||
Gas- 0.77% | |||||||||||
GAIL India Ltd | 126,361 | 652 |
See accompanying notes.
188
Schedule of Investments International Emerging Markets Account December 31, 2018
INVESTMENT COMPANIES - 3.19% | Shares HeldValue (000's) | ||||
Money Market Funds- 3.19% | |||||
Principal Government Money Market Fund | 2,710,915 | $ | 2,711 | ||
2.11%(c),(d) | |||||
TOTAL INVESTMENT COMPANIES | $ | 2,711 | |||
PREFERRED STOCKS - 2.13% | Shares HeldValue (000's) | ||||
Banks - 1.07% | |||||
Banco Bradesco SA 1.61% | 91,400 | $ | 910 | ||
Holding Companies - Diversified- 1.06% | |||||
Itausa - Investimentos ItauSA 0.08% | 288,582 | 899 | |||
TOTAL PREFERRED STOCKS | $ | 1,809 | |||
Total Investments | $ | 84,751 | |||
Other Assets and Liabilities - 0.17% | 147 | ||||
TOTAL NET ASSETS - 100.00% | $ | 84,898 |
(a) | 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 ofthese securities totaled $502 or 0.59% of net assets. |
(b) | Non-income producing security |
(c) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
(d) Current yield shown is as of period end. | |||
Portfolio Summary (unaudited) | |||
Country | Percent | ||
China | 24.12 | % | |
Taiwan, Province Of China | 11.90 | % | |
India | 11.48 | % | |
Korea, Republic Of | 10.46 | % | |
Brazil | 7.98 | % | |
Hong Kong | 5.78 | % | |
South Africa | 4.85 | % | |
Russian Federation | 4.27 | % | |
Thailand | 3.66 | % | |
United States | 3.19 | % | |
Poland | 2.39 | % | |
Peru | 1.89 | % | |
Mexico | 1.87 | % | |
Malaysia | 1.85 | % | |
Indonesia | 1.62 | % | |
Hungary | 1.05 | % | |
United Kingdom | 1.05 | % | |
Macao | 0.42 | % | |
Other Assets and Liabilities | 0.17 | % | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 1,056 | $ | 47,458 | $ | 45,803 | $ | 2,711 | |||
$ | 1,056 | $ | 47,458 | $ | 45,803 | $ | 2,711 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 34 | $ | — | $ | — | $ | — | |||
$ | 34 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
189
Schedule of Investments | |||||||||||
LargeCap Growth Account | |||||||||||
December 31, 2018 | |||||||||||
COMMON STOCKS - 97.40% | Shares HeldValue (000's) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Apparel - 2.07% | Retail (continued) | ||||||||||
NIKEInc | 28,000 | $ | 2,076 | Ulta BeautyInc(a) | 6,000 | $ | 1,469 | ||||
Banks - 1.69% | $ | 7,878 | |||||||||
SVB Financial Group(a) | 8,915 | 1,693 | Semiconductors - 4.76% | ||||||||
Beverages - 2.28% | Intel Corp | 30,600 | 1,436 | ||||||||
Coca-Cola Co/The | 48,300 | 2,287 | QUALCOMMInc | 26,700 | 1,519 | ||||||
Biotechnology- 2.08% | XilinxInc | 21,400 | 1,823 | ||||||||
Vertex PharmaceuticalsInc(a) | 12,604 | 2,089 | $ | 4,778 | |||||||
Chemicals - 1.91% | Software - 7.60% | ||||||||||
CF Industries HoldingsInc | 43,900 | 1,910 | Microsoft Corp | 53,330 | 5,417 | ||||||
Commercial Services - 3.23% | ServiceNowInc(a) | 12,393 | 2,206 | ||||||||
FleetCorTechnologiesInc(a) | 8,433 | 1,566 | $ | 7,623 | |||||||
WorldpayInc(a) | 21,900 | 1,674 | Telecommunications - 2.46% | ||||||||
$ | 3,240 | Cisco SystemsInc | 56,850 | 2,463 | |||||||
Computers - 3.75% | Transportation - 1.59% | ||||||||||
Apple Inc | 23,850 | 3,762 | CSX Corp | 25,700 | 1,597 | ||||||
Cosmetics & Personal Care- 3.27% | TOTAL COMMON STOCKS | $ | 97,684 | ||||||||
Estee Lauder Cos Inc/The | 15,161 | 1,973 | INVESTMENT COMPANIES - 2.32% | Shares HeldValue (000's) | |||||||
Procter & Gamble Co/The | 14,200 | 1,305 | Money Market Funds- 2.32% | ||||||||
$ | 3,278 | Principal Government Money Market Fund | 2,326,191 | 2,326 | |||||||
Diversified Financial Services- 8.19% | 2.11%(b),(c) | ||||||||||
TOTAL INVESTMENT COMPANIES | $ | 2,326 | |||||||||
Capital One Financial Corp | 19,050 | 1,440 | Total Investments | $ | 100,010 | ||||||
Mastercard Inc | 15,548 | 2,933 | Other Assets and Liabilities - 0.28% | 280 | |||||||
VisaInc | 29,108 | 3,841 | TOTAL NET ASSETS - 100.00% | $ | 100,290 | ||||||
$ | 8,214 | ||||||||||
Engineering & Construction- 1.11% | |||||||||||
Jacobs Engineering GroupInc | 19,100 | 1,116 | (a) | Non-income producing security | |||||||
Entertainment - 0.65% | (b) | Affiliated Security. Security is either an affiliate (and registered under the | |||||||||
Live Nation Entertainment Inc(a) | 13,300 | 655 | Investment Company Act of 1940) or an affiliate as defined by the Investment | ||||||||
Healthcare - Products- 10.60% | Company Act of 1940 (controls 5.0% or more of the outstanding voting | ||||||||||
Abbott Laboratories | 18,600 | 1,345 | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||
ABIOMEDInc(a) | 4,400 | 1,430 | information. | ||||||||
Boston Scientific Corp(a) | 62,000 | 2,191 | (c) | Current yield shown is as of period end. | |||||||
Intuitive SurgicalInc(a) | 6,647 | 3,184 | |||||||||
Thermo Fisher ScientificInc | 11,103 | 2,485 | Portfolio Summary (unaudited) | ||||||||
$ | 10,635 | Sector | Percent | ||||||||
Healthcare - Services- 1.04% | Consumer, Non-cyclical | 27.23 | % | ||||||||
WellCareHealth PlansInc(a) | 4,400 | 1,039 | Communications | 19.89 | % | ||||||
Internet - 17.43% | Technology | 18.57 | % | ||||||||
AlphabetInc- A Shares(a) | 4,984 | 5,208 | Consumer, Cyclical | 10.58 | % | ||||||
Amazon.comInc(a) | 2,949 | 4,429 | Financial | 9.88 | % | ||||||
GrubHubInc(a) | 20,800 | 1,598 | Industrial | 7.45 | % | ||||||
NetflixInc(a) | 7,932 | 2,123 | Investment Companies | 2.32 | % | ||||||
RingCentralInc(a) | 25,800 | 2,127 | Basic Materials | 1.91 | % | ||||||
Twitter Inc(a) | 69,400 | 1,995 | Energy | 1.89 | % | ||||||
$ | 17,480 | Other Assets and Liabilities | 0.28 | % | |||||||
Machinery - Construction & Mining- 2.55% | TOTAL NET ASSETS | 100.00 | % | ||||||||
Caterpillar Inc | 20,147 | 2,560 | |||||||||
Machinery - Diversified- 2.20% | |||||||||||
Deere & Co | 14,796 | 2,207 | |||||||||
Office & Business Equipment- 2.46% | |||||||||||
Zebra Technologies Corp(a) | 15,500 | 2,468 | |||||||||
Oil & Gas- 1.89% | |||||||||||
Diamondback EnergyInc | 10,987 | 1,018 | |||||||||
Pioneer Natural Resources Co | 6,650 | 875 | |||||||||
$ | 1,893 | ||||||||||
Pharmaceuticals - 4.73% | |||||||||||
DexCom Inc(a) | 13,900 | 1,665 | |||||||||
Eli Lilly & Co | 16,600 | 1,921 | |||||||||
Sarepta TherapeuticsInc(a) | 10,600 | 1,157 | |||||||||
$ | 4,743 | ||||||||||
Retail - 7.86% | |||||||||||
Chipotle Mexican GrillInc(a) | 3,400 | 1,468 | |||||||||
Five Below Inc(a) | 14,700 | 1,504 | |||||||||
LululemonAthleticaInc(a) | 9,950 | 1,210 | |||||||||
Target Corp | 25,900 | 1,712 | |||||||||
Tiffany & Co | 6,400 | 515 |
See accompanying notes.
190
Schedule of Investments | |||||||||||
LargeCap Growth Account | |||||||||||
December 31, 2018 | |||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 1,377 | $ | 52,230 | $ | 51,281 | $ | 2,326 | |||
$ | 1,377 | $ | 52,230 | $ | 51,281 | $ | 2,326 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 32 | $ | — | $ | — | $ | — | |||
$ | 32 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
191
Schedule of Investments | |||||||||||
LargeCap Growth Account I | |||||||||||
December 31, 2018 | |||||||||||
COMMON STOCKS - 97.27% | Shares HeldValue (000's) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Advertising - 0.01% | Biotechnology- 1.43% | ||||||||||
Interpublic Group of CosInc/The | 262 | $ | 5 | Alexion PharmaceuticalsInc(a) | 8,404 | $ | 818 | ||||
Omnicom GroupInc | 423 | 31 | Alnylam PharmaceuticalsInc(a) | 198 | 14 | ||||||
$ | 36 | AmgenInc | 1,552 | 302 | |||||||
Aerospace & Defense- 3.40% | BiogenInc(a) | 485 | 146 | ||||||||
Boeing Co/The | 23,220 | 7,488 | BioMarinPharmaceuticalInc(a) | 448 | 38 | ||||||
Curtiss-Wright Corp | 37 | 4 | Bluebird BioInc(a) | 94 | 9 | ||||||
General Dynamics Corp | 219 | 34 | Celgene Corp(a) | 1,786 | 115 | ||||||
Harris Corp | 320 | 43 | Exact Sciences Corp(a) | 301 | 19 | ||||||
HEICO Corp | 133 | 10 | Exelixis Inc(a) | 742 | 15 | ||||||
HEICO Corp - Class A | 237 | 15 | Gilead SciencesInc | 2,454 | 154 | ||||||
Lockheed Martin Corp | 677 | 177 | Illumina Inc(a) | 276 | 83 | ||||||
Northrop Grumman Corp | 6,108 | 1,496 | IncyteCorp(a) | 443 | 28 | ||||||
Raytheon Co | 906 | 139 | IonisPharmaceuticalsInc(a) | 314 | 17 | ||||||
Spirit AeroSystems HoldingsInc | 10,078 | 727 | Regeneron PharmaceuticalsInc(a) | 202 | 75 | ||||||
TransDigm GroupInc(a) | 128 | 44 | Sage TherapeuticsInc(a) | 114 | 11 | ||||||
United Technologies Corp | 28 | 3 | Seattle GeneticsInc(a) | 268 | 15 | ||||||
$ | 10,180 | Vertex PharmaceuticalsInc(a) | 14,636 | 2,426 | |||||||
Agriculture - 0.53% | $ | 4,285 | |||||||||
Altria GroupInc | 5,490 | 271 | Building Materials - 0.03% | ||||||||
Philip Morris InternationalInc | 19,636 | 1,311 | Armstrong World IndustriesInc | 156 | 9 | ||||||
$ | 1,582 | Eagle MaterialsInc | 114 | 7 | |||||||
Airlines - 0.02% | Lennox International Inc | 95 | 21 | ||||||||
Delta Air Lines Inc | 299 | 15 | Martin Marietta Materials Inc | 147 | 25 | ||||||
Southwest Airlines Co | 704 | 33 | Vulcan Materials Co | 313 | 31 | ||||||
$ | 48 | $ | 93 | ||||||||
Apparel - 0.51% | Chemicals - 1.60% | ||||||||||
Carter'sInc | 132 | 11 | Axalta Coating Systems Ltd(a) | 233 | 6 | ||||||
Columbia Sportswear Co | 33 | 3 | Celanese Corp | 220 | 20 | ||||||
HanesbrandsInc | 1,010 | 13 | Chemours Co/The | 458 | 13 | ||||||
Michael Kors Holdings Ltd(a) | 238 | 9 | FMC Corp | 139 | 10 | ||||||
NIKEInc | 19,544 | 1,449 | International Flavors & FragrancesInc | 121 | 16 | ||||||
Skechers U.S.A.Inc(a) | 245 | 6 | Linde PLC | 638 | 100 | ||||||
UnderArmour Inc - Class A(a) | 415 | 7 | LyondellBasell Industries NV | 547 | 46 | ||||||
UnderArmour Inc - Class C(a) | 434 | 7 | NewMarket Corp | 22 | 9 | ||||||
VF Corp | 468 | 33 | PPG IndustriesInc | 33 | 3 | ||||||
$ | 1,538 | RPM International Inc | 77 | 5 | |||||||
Automobile Manufacturers - 0.61% | Sherwin-Williams Co/The | 11,530 | 4,536 | ||||||||
Tesla Inc(a) | 5,492 | 1,828 | UnivarInc(a) | 129 | 2 | ||||||
VersumMaterials Inc | 376 | 10 | |||||||||
Automobile Parts & Equipment- 0.54% | Westlake Chemical Corp | 94 | 6 | ||||||||
Allison Transmission HoldingsInc | 359 | 16 | WR Grace & Co | 137 | 9 | ||||||
Aptiv PLC | 25,774 | 1,587 | $ | 4,791 | |||||||
Lear Corp | 38 | 5 | |||||||||
Visteon Corp(a) | 70 | 4 | Commercial Services - 5.06% | ||||||||
WABCO HoldingsInc(a) | 152 | 16 | Automatic Data ProcessingInc | 829 | 109 | ||||||
$ | 1,628 | Booz Allen Hamilton Holding Corp | 418 | 19 | |||||||
Cintas Corp | 21,987 | 3,694 | |||||||||
Banks - 0.35% | CoreLogicInc/United States(a) | 218 | 7 | ||||||||
BOK Financial Corp | 24 | 2 | CoStar GroupInc(a) | 99 | 33 | ||||||
Comerica Inc | 51 | 4 | EcolabInc | 359 | 53 | ||||||
East West Bancorp Inc | 65 | 3 | Euronet Worldwide Inc(a) | 99 | 10 | ||||||
Morgan Stanley | 24,383 | 967 | FleetCorTechnologiesInc(a) | 10,401 | 1,932 | ||||||
Northern Trust Corp | 161 | 13 | GartnerInc(a) | 251 | 32 | ||||||
Pinnacle Financial Partners Inc | 109 | 5 | Global PaymentsInc | 15,034 | 1,550 | ||||||
Signature Bank/New York NY | 91 | 9 | Grand Canyon EducationInc(a) | 127 | 12 | ||||||
State Street Corp | 210 | 13 | H&R BlockInc | 176 | 4 | ||||||
SVB Financial Group(a) | 106 | 20 | Moody's Corp | 312 | 44 | ||||||
Synovus Financial Corp | 77 | 2 | MorningstarInc | 56 | 6 | ||||||
Texas Capital BancsharesInc(a) | 111 | 6 | PayPal HoldingsInc(a) | 86,591 | 7,282 | ||||||
Western Alliance Bancorp(a) | 192 | 8 | Quanta ServicesInc | 172 | 5 | ||||||
$ | 1,052 | Robert Half InternationalInc | 349 | 20 | |||||||
Beverages - 0.26% | Rollins Inc | 466 | 17 | ||||||||
Brown-Forman Corp - A Shares | 183 | 9 | S&P GlobalInc | 472 | 80 | ||||||
Coca-Cola Co/The | 5,596 | 265 | Sabre Corp | 684 | 15 | ||||||
Constellation Brands Inc | 296 | 48 | Service Corp International/US | 228 | 9 | ||||||
KeurigDr Pepper Inc | 557 | 14 | ServiceMaster Global HoldingsInc(a) | 367 | 13 | ||||||
Monster Beverage Corp(a) | 1,047 | 51 | SquareInc(a) | 746 | 42 | ||||||
PepsiCo Inc | 3,560 | 393 | Total System ServicesInc | 501 | 41 | ||||||
$ | 780 | TransUnion | 509 | 29 | |||||||
United RentalsInc(a) | 221 | 23 | |||||||||
See accompanying notes. | 192 |
Schedule of Investments | |||||||||||
LargeCap Growth Account I | |||||||||||
December 31, 2018 | |||||||||||
COMMON STOCKS (continued) | Shares HeldValue (000’s) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Commercial Services (continued) | Electrical Components & Equipment- 0.05% | ||||||||||
Verisk AnalyticsInc(a) | 432 | $ | 47 | AMETEKInc | 152 | $ | 10 | ||||
Western Union Co/The | 505 | 9 | Emerson Electric Co | 1,631 | 97 | ||||||
WEXInc(a) | 123 | 17 | Energizer HoldingsInc | 130 | 6 | ||||||
WorldpayInc(a) | 55 | 4 | HubbellInc | 112 | 11 | ||||||
$ | 15,158 | Littelfuse Inc | 61 | 11 | |||||||
Computers - 2.63% | $ | 135 | |||||||||
Accenture PLC - Class A | 2,589 | 365 | Electronics - 3.18% | ||||||||
Apple Inc | 26,234 | 4,138 | Allegion PLC | 234 | 19 | ||||||
Cognizant Technology Solutions Corp | 992 | 63 | Amphenol Corp | 46,551 | 3,772 | ||||||
Dell TechnologiesInc(a) | 56 | 3 | CoherentInc(a) | 73 | 8 | ||||||
EPAM SystemsInc(a) | 157 | 18 | FLIR SystemsInc | 116 | 5 | ||||||
Fortinet Inc(a) | 403 | 29 | Fortive Corp | 71,467 | 4,835 | ||||||
GenpactLtd | 113,129 | 3,053 | GentexCorp | 553 | 11 | ||||||
International Business Machines Corp | 1,246 | 142 | Honeywell InternationalInc | 5,936 | 784 | ||||||
NCR Corp(a) | 357 | 8 | Mettler-Toledo International Inc(a) | 65 | 37 | ||||||
NetApp Inc | 708 | 42 | National Instruments Corp | 249 | 11 | ||||||
$ | 7,861 | Sensata Technologies Holding PLC(a) | 278 | 12 | |||||||
Consumer Products - 0.08% | Waters Corp(a) | 185 | 35 | ||||||||
Avery Dennison Corp | 226 | 20 | $ | 9,529 | |||||||
Church & Dwight CoInc | 564 | 37 | Entertainment - 0.01% | ||||||||
Clorox Co/The | 295 | 46 | International Game Technology PLC | 122 | 2 | ||||||
Kimberly-Clark Corp | 1,171 | 133 | Lions Gate Entertainment Corp - A shares | 195 | 3 | ||||||
Spectrum Brands HoldingsInc | 89 | 4 | Lions Gate Entertainment Corp - B shares | 240 | 3 | ||||||
$ | 240 | Six Flags Entertainment Corp | 196 | 11 | |||||||
Cosmetics & Personal Care- 1.30% | $ | 19 | |||||||||
Colgate-Palmolive Co | 297 | 18 | Environmental Control - 0.40% | ||||||||
Estee Lauder Cos Inc/The | 29,770 | 3,873 | Republic ServicesInc | 84 | 6 | ||||||
$ | 3,891 | Waste Connections Inc | 14,610 | 1,085 | |||||||
Distribution & Wholesale- 0.05% | Waste ManagementInc | 1,325 | 118 | ||||||||
Fastenal Co | 781 | 41 | $ | 1,209 | |||||||
HD Supply HoldingsInc(a) | 226 | 8 | Food - 0.09% | ||||||||
KAR Auction ServicesInc | 373 | 18 | Campbell Soup Co | 342 | 11 | ||||||
LKQ Corp(a) | 194 | 5 | General MillsInc | 1,079 | 42 | ||||||
Pool Corp | 110 | 16 | Hershey Co/The | 351 | 38 | ||||||
Watsco Inc | 78 | 11 | Kellogg Co | 353 | 20 | ||||||
WW GraingerInc | 125 | 35 | McCormick & Co Inc/MD | 35 | 5 | ||||||
$ | 134 | Post HoldingsInc(a) | 114 | 10 | |||||||
Diversified Financial Services- 6.26% | Sprouts Farmers MarketInc(a) | 387 | 9 | ||||||||
Alliance Data Systems Corp | 139 | 21 | Sysco Corp | 1,860 | 117 | ||||||
American Express Co | 1,360 | 130 | US Foods Holding Corp(a) | 132 | 4 | ||||||
Ameriprise Financial Inc | 71 | 7 | $ | 256 | |||||||
Capital One Financial Corp | 275 | 21 | Forest Products & Paper- 0.00% | ||||||||
Charles Schwab Corp/The | 58,937 | 2,448 | International Paper Co | 130 | 5 | ||||||
CME GroupInc | 77 | 15 | Hand & Machine Tools- 0.00% | ||||||||
Credit Acceptance Corp(a) | 29 | 11 | Lincoln Electric HoldingsInc | 183 | 14 | ||||||
Discover Financial Services | 424 | 25 | Healthcare - Products- 9.20% | ||||||||
E*TRADE Financial Corp | 179 | 8 | ABIOMEDInc(a) | 110 | 36 | ||||||
Eaton Vance Corp | 321 | 11 | Align TechnologyInc(a) | 202 | 42 | ||||||
Evercore Inc - Class A | 118 | 8 | Baxter International Inc | 113 | 7 | ||||||
Interactive Brokers GroupInc- A Shares | 184 | 10 | Becton Dickinson and Co | 12,792 | 2,882 | ||||||
Intercontinental ExchangeInc | 17,787 | 1,340 | Bio-TechneCorp | 98 | 14 | ||||||
Lazard Ltd | 305 | 11 | Boston Scientific Corp(a) | 1,995 | 71 | ||||||
LPL Financial HoldingsInc | 246 | 15 | Bruker Corp | 159 | 5 | ||||||
Mastercard Inc | 3,054 | 576 | Cantel Medical Corp | 105 | 8 | ||||||
OneMain HoldingsInc(a) | 78 | 2 | Cooper Cos Inc/The | 23 | 6 | ||||||
Raymond James FinancialInc | 114 | 9 | Danaher Corp | 40,825 | 4,210 | ||||||
Santander Consumer USA HoldingsInc | 148 | 3 | Edwards Lifesciences Corp(a) | 22,212 | 3,402 | ||||||
SEI Investments Co | 356 | 16 | Henry ScheinInc(a) | 82 | 6 | ||||||
Synchrony Financial | 728 | 17 | Hill-Rom HoldingsInc | 126 | 11 | ||||||
T Rowe Price GroupInc | 571 | 53 | ICU MedicalInc(a) | 45 | 10 | ||||||
TD Ameritrade Holding Corp | 21,305 | 1,043 | IDEXX LaboratoriesInc(a) | 223 | 41 | ||||||
VirtuFinancial Inc | 166 | 4 | Integra LifeSciences Holdings Corp(a) | 172 | 8 | ||||||
VisaInc | 98,121 | 12,946 | Intuitive SurgicalInc(a) | 18,129 | 8,683 | ||||||
$ | 18,750 | Masimo Corp(a) | 127 | 14 | |||||||
Electric - 0.30% | PenumbraInc(a) | 81 | 10 | ||||||||
Sempra Energy | 8,309 | 899 | ResMed Inc | 369 | 42 | ||||||
Stryker Corp | 19,460 | 3,051 | |||||||||
TeleflexInc | 25 | 6 |
See accompanying notes.
193
Schedule of Investments | |||||||||||
LargeCap Growth Account I | |||||||||||
December 31, 2018 | |||||||||||
COMMON STOCKS (continued) | Shares HeldValue (000’s) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Healthcare - Products (continued) | Internet (continued) | ||||||||||
Thermo Fisher ScientificInc | 22,006 | $ | 4,925 | Twitter Inc(a) | 1,871 | $ | 54 | ||||
Varian Medical SystemsInc(a) | 242 | 27 | Uber TechnologiesInc - Class A(a),(b),(c),(d) | 116 | 6 | ||||||
West Pharmaceutical ServicesInc | 57 | 6 | VeriSignInc(a) | 288 | 43 | ||||||
$ | 27,523 | Zendesk Inc(a) | 287 | 17 | |||||||
Healthcare - Services- 4.05% | Zillow GroupInc- A Shares(a) | 139 | 4 | ||||||||
AnthemInc | 7,157 | 1,880 | $ | 58,713 | |||||||
Catalent Inc(a) | 122 | 4 | Iron & Steel- 0.00% | ||||||||
Centene Corp(a) | 7,992 | 922 | Steel DynamicsInc | 103 | 3 | ||||||
Charles River Laboratories InternationalInc(a) | 97 | 11 | Leisure Products & Services- 0.01% | ||||||||
Chemed Corp | 44 | 12 | Brunswick Corp/DE | 68 | 3 | ||||||
DaVitaInc(a) | 193 | 10 | Polaris Industries Inc | 164 | 13 | ||||||
Encompass Health Corp | 274 | 17 | $ | 16 | |||||||
HCA HealthcareInc | 18,900 | 2,352 | Lodging - 0.80% | ||||||||
HumanaInc | 4,287 | 1,227 | Choice Hotels InternationalInc | 114 | 8 | ||||||
Laboratory Corp of America Holdings(a) | 29 | 4 | Extended Stay AmericaInc | 421 | 7 | ||||||
Molina HealthcareInc(a) | 145 | 17 | Hilton Grand VacationsInc(a) | 298 | 8 | ||||||
UnitedHealth GroupInc | 19,639 | 4,892 | Hilton Worldwide HoldingsInc | 20,109 | 1,444 | ||||||
WellCareHealth PlansInc(a) | 3,295 | 778 | Las Vegas Sands Corp | 15,814 | 823 | ||||||
$ | 12,126 | Marriott International Inc/MD | 541 | 59 | |||||||
Home Builders- 0.03% | Wyndham DestinationsInc | 301 | 11 | ||||||||
DR HortonInc | 574 | 20 | Wyndham Hotels & ResortsInc | 276 | 12 | ||||||
Lennar Corp - A Shares | 439 | 17 | Wynn Resorts Ltd | 267 | 26 | ||||||
Lennar Corp - B Shares | 96 | 3 | $ | 2,398 | |||||||
NVRInc(a) | 9 | 22 | Machinery - Construction & Mining- 0.75% | ||||||||
PulteGroupInc | 326 | 8 | BWX TechnologiesInc | 55,425 | 2,119 | ||||||
Thor IndustriesInc | 136 | 7 | Caterpillar Inc | 1,005 | 128 | ||||||
Toll BrothersInc | 268 | 9 | $ | 2,247 | |||||||
$ | 86 | Machinery - Diversified- 1.66% | |||||||||
Housewares- 0.01% | CognexCorp | 437 | 17 | ||||||||
Scotts Miracle-Gro Co/The | 58 | 4 | Cummins Inc | 154 | 21 | ||||||
Toro Co/The | 306 | 17 | Deere & Co | 609 | 91 | ||||||
$ | 21 | Gardner Denver HoldingsInc(a) | 217 | 4 | |||||||
Insurance - 0.15% | GracoInc | 492 | 21 | ||||||||
Alleghany Corp | 7 | 4 | IDEX Corp | 206 | 26 | ||||||
American International GroupInc | 462 | 18 | Nordson Corp | 159 | 19 | ||||||
Aon PLC | 656 | 95 | Rockwell Automation Inc | 328 | 49 | ||||||
Arch Capital Group Ltd(a) | 229 | 6 | Roper TechnologiesInc | 17,570 | 4,682 | ||||||
Axis Capital Holdings Ltd | 40 | 2 | Wabtec Corp | 104 | 7 | ||||||
Berkshire HathawayInc - Class B(a) | 683 | 140 | XylemInc/NY | 280 | 19 | ||||||
Brown & Brown Inc | 93 | 3 | $ | 4,956 | |||||||
Erie Indemnity Co | 62 | 8 | Media - 0.19% | ||||||||
Everest Re Group Ltd | 44 | 10 | AMC Networks Inc(a) | 172 | 9 | ||||||
Markel Corp(a) | 3 | 3 | Cable OneInc | 13 | 11 | ||||||
Marsh & McLennan CosInc | 443 | 35 | CBS Corp | 897 | 39 | ||||||
Progressive Corp/The | 1,683 | 102 | Charter CommunicationsInc(a) | 232 | 66 | ||||||
RenaissanceReHoldings Ltd | 15 | 2 | FactSet Research SystemsInc | 97 | 19 | ||||||
Travelers Cos Inc/The | 245 | 29 | Sirius XM HoldingsInc | 3,617 | 21 | ||||||
Voya FinancialInc | 70 | 3 | Walt Disney Co/The | 3,729 | 409 | ||||||
$ | 460 | $ | 574 | ||||||||
Internet - 19.62% | Mining - 0.00% | ||||||||||
Alibaba Group Holding Ltd ADR(a) | 35,792 | 4,906 | Royal GoldInc | 70 | 6 | ||||||
AlphabetInc- A Shares(a) | 7,264 | 7,590 | Southern Copper Corp | 228 | 7 | ||||||
AlphabetInc- C Shares(a) | 8,656 | 8,965 | $ | 13 | |||||||
Amazon.comInc(a) | 12,546 | 18,844 | Miscellaneous Manufacturers - 0.13% | ||||||||
Booking HoldingsInc(a) | 3,860 | 6,648 | 3M Co | 897 | 171 | ||||||
CDW Corp/DE | 416 | 34 | Donaldson Co Inc | 352 | 15 | ||||||
eBayInc(a) | 379 | 11 | Hexcel Corp | 90 | 5 | ||||||
Expedia GroupInc | 317 | 36 | Illinois Tool Works Inc | 1,070 | 136 | ||||||
F5 NetworksInc(a) | 177 | 29 | Ingersoll-Rand PLC | 686 | 63 | ||||||
FacebookInc(a) | 44,350 | 5,814 | Parker-Hannifin Corp | 76 | 11 | ||||||
GoDaddyInc(a) | 459 | 30 | $ | 401 | |||||||
GrubHubInc(a) | 241 | 18 | |||||||||
IAC/InterActiveCorp(a) | 3,699 | 677 | Office & Business Equipment- 0.01% | ||||||||
Match GroupInc | 234 | 10 | Zebra Technologies Corp(a) | 149 | 24 | ||||||
NetflixInc(a) | 6,355 | 1,701 | Oil & Gas- 0.04% | ||||||||
OktaInc(a) | 241 | 15 | Anadarko Petroleum Corp | 544 | 24 | ||||||
RingCentralInc(a) | 195 | 16 | Antero Resources Corp(a) | 358 | 3 | ||||||
TencentHoldings Ltd ADR | 81,793 | 3,228 | Apache Corp | 68 | 2 | ||||||
Twilio Inc(a) | 196 | 17 | Cabot Oil & Gas Corp | 815 | 18 | ||||||
See accompanying notes. | 194 |
Schedule of Investments | |||||||||||
LargeCap Growth Account I | |||||||||||
December 31, 2018 | |||||||||||
COMMON STOCKS (continued) | Shares HeldValue (000’s) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Oil & Gas (continued) | REITs (continued) | ||||||||||
Cimarex Energy Co | 34 | $ | 2 | Simon Property GroupInc | 861 | $ | 145 | ||||
Concho ResourcesInc(a) | 52 | 5 | TaubmanCenters Inc | 160 | 7 | ||||||
Continental Resources Inc/OK(a) | 108 | 4 | $ | 5,397 | |||||||
Diamondback EnergyInc | 70 | 7 | Retail - 4.88% | ||||||||
EOG ResourcesInc | 224 | 20 | Advance Auto Parts Inc | 67 | 11 | ||||||
Kosmos Energy Ltd(a) | 149 | 1 | AutoZone Inc(a) | 61 | 51 | ||||||
Newfield Exploration Co(a) | 208 | 3 | Best Buy CoInc | 189 | 10 | ||||||
Parsley EnergyInc(a) | 465 | 7 | Burlington StoresInc(a) | 180 | 29 | ||||||
Pioneer Natural Resources Co | 269 | 35 | CarMax Inc(a) | 284 | 18 | ||||||
$ | 131 | Chipotle Mexican GrillInc(a) | 62 | 27 | |||||||
Oil & Gas Services- 0.01% | Costco Wholesale Corp | 20,018 | 4,077 | ||||||||
Halliburton Co | 1,644 | 44 | Darden Restaurants Inc | 177 | 18 | ||||||
RPC Inc | 59 | — | Dollar General Corp | 16,746 | 1,810 | ||||||
$ | 44 | Dollar Tree Inc(a) | 124 | 11 | |||||||
Packaging & Containers- 0.02% | Domino's PizzaInc | 111 | 28 | ||||||||
Berry Global GroupInc(a) | 184 | 9 | Dunkin' Brands GroupInc | 225 | 14 | ||||||
Crown HoldingsInc(a) | 333 | 14 | GapInc/The | 127 | 3 | ||||||
Graphic Packaging Holding Co | 157 | 2 | Home DepotInc/The | 5,320 | 914 | ||||||
Packaging Corp of America | 241 | 20 | L Brands Inc | 176 | 5 | ||||||
Sealed Air Corp | 238 | 8 | Lowe's CosInc | 1,539 | 142 | ||||||
Silgan HoldingsInc | 82 | 2 | LululemonAthleticaInc(a) | 255 | 31 | ||||||
$ | 55 | McDonald's Corp | 5,171 | 918 | |||||||
Pharmaceuticals - 5.58% | Michaels CosInc/The(a) | 199 | 3 | ||||||||
AbbVieInc | 3,860 | 356 | MSC Industrial Direct CoInc | 87 | 7 | ||||||
Agios PharmaceuticalsInc(a) | 128 | 6 | Nordstrom Inc | 332 | 15 | ||||||
Alkermes PLC(a) | 390 | 11 | Nu Skin EnterprisesInc | 86 | 5 | ||||||
AmerisourceBergen Corp | 422 | 31 | O'Reilly AutomotiveInc(a) | 149 | 51 | ||||||
Bristol-Myers Squibb Co | 2,808 | 146 | Restaurant Brands International Inc | 16,745 | 876 | ||||||
Cigna Corp | 21,404 | 4,065 | Ross StoresInc | 19,646 | 1,635 | ||||||
CVS Health Corp | 380 | 25 | Starbucks Corp | 2,476 | 159 | ||||||
DexCom Inc(a) | 33,794 | 4,049 | TapestryInc | 204 | 7 | ||||||
Eli Lilly & Co | 13,756 | 1,592 | Tiffany & Co | 63 | 5 | ||||||
Herbalife Nutrition Ltd(a) | 96 | 6 | TJX CosInc/The | 80,867 | 3,618 | ||||||
Jazz Pharmaceuticals PLC(a) | 147 | 18 | Tractor Supply Co | 331 | 28 | ||||||
Johnson & Johnson | 911 | 118 | Ulta BeautyInc(a) | 150 | 37 | ||||||
McKesson Corp | 312 | 34 | Urban OutfittersInc(a) | 243 | 8 | ||||||
Merck & Co Inc | 335 | 26 | Wendy's Co/The | 542 | 8 | ||||||
NektarTherapeutics(a) | 437 | 14 | Williams-SonomaInc | 93 | 5 | ||||||
Neurocrine Biosciences Inc(a) | 226 | 16 | Yum China HoldingsInc | 118 | 4 | ||||||
PRA Health SciencesInc(a) | 160 | 15 | Yum! Brands Inc | 174 | 16 | ||||||
Premier Inc(a) | 94 | 4 | $ | 14,604 | |||||||
Sarepta TherapeuticsInc(a) | 159 | 17 | Semiconductors - 1.63% | ||||||||
TESAROInc(a) | 100 | 7 | Advanced Micro Devices Inc(a) | 2,359 | 44 | ||||||
Zoetis Inc | 71,888 | 6,149 | Analog DevicesInc | 110 | 9 | ||||||
$ | 16,705 | Applied Materials Inc | 4,539 | 149 | |||||||
Pipelines - 0.02% | ASML Holding NV - NY Reg Shares | 3,485 | 542 | ||||||||
Cheniere EnergyInc(a) | 406 | 24 | Broadcom Inc | 486 | 124 | ||||||
ONEOKInc | 522 | 28 | Cypress Semiconductor Corp | 882 | 11 | ||||||
$ | 52 | IPG Photonics Corp(a) | 99 | 11 | |||||||
Real Estate - 0.01% | KLA-Tencor Corp | 442 | 40 | ||||||||
CBRE GroupInc(a) | 385 | 16 | Lam Research Corp | 429 | 58 | ||||||
Howard Hughes Corp/The(a) | 43 | 4 | Marvell Technology Group Ltd | 510 | 8 | ||||||
$ | 20 | Maxim Integrated ProductsInc | 14,660 | 745 | |||||||
Microchip TechnologyInc | 596 | 43 | |||||||||
REITs - 1.80% | Micron TechnologyInc(a) | 4,071 | 129 | ||||||||
Alexandria Real Estate Equities Inc | 25 | 3 | MKS InstrumentsInc | 193 | 12 | ||||||
American Tower Corp | 827 | 131 | NVIDIA Corp | 1,096 | 146 | ||||||
CoreSite Realty Corp | 99 | 9 | NXP Semiconductors NV | 34,358 | 2,518 | ||||||
Crown Castle International Corp | 937 | 102 | ON Semiconductor Corp(a) | 1,291 | 21 | ||||||
Equinix Inc | 149 | 52 | Skyworks SolutionsInc | 370 | 25 | ||||||
Equity LifeStyleProperties Inc | 215 | 21 | TeradyneInc | 181 | 6 | ||||||
Extra Space StorageInc | 268 | 24 | Texas Instruments Inc | 1,847 | 175 | ||||||
Gaming and Leisure PropertiesInc | 198 | 6 | XilinxInc | 677 | 58 | ||||||
Hudson Pacific PropertiesInc | 54 | 1 | $ | 4,874 | |||||||
Lamar Advertising Co | 191 | 13 | |||||||||
Life StorageInc | 8 | 1 | Shipbuilding - 0.01% | ||||||||
Omega Healthcare InvestorsInc | 50 | 2 | Huntington Ingalls IndustriesInc | 103 | 20 | ||||||
Public Storage | 495 | 100 | |||||||||
SBA Communications Corp(a) | 29,524 | 4,780 |
See accompanying notes.
195
Schedule of Investments
LargeCap Growth Account I
December 31, 2018
COMMON STOCKS (continued) | Shares HeldValue (000’s) | INVESTMENT COMPANIES - 2.13% | Shares HeldValue (000's) | ||||||||||
Software - 17.27% | Money Market Funds- 2.01% | ||||||||||||
Activision BlizzardInc | 14,108 | $ | 657 | Principal Government Money Market Fund | 6,022,190 | $ | 6,022 | ||||||
AdobeInc(a) | 17,613 | 3,984 | 2.11%(e),(f) | ||||||||||
Akamai TechnologiesInc(a) | 435 | 27 | Principal Exchange-Traded Funds - 0.12% | ||||||||||
ANSYSInc(a) | 228 | 33 | Principal Millennials Index ETF(e) | 4,789 | 150 | ||||||||
Aspen TechnologyInc(a) | 211 | 17 | Principal Price Setters Index ETF(e) | 1,616 | 50 | ||||||||
athenahealthInc(a) | 113 | 15 | Principal Sustainable Momentum Index ETF(e) | 749 | 18 | ||||||||
Atlassian Corp PLC(a) | 258 | 23 | Principal U.S. Mega-Cap Multi-Factor Index | 5,280 | 132 | ||||||||
Autodesk Inc(a) | 28,107 | 3,614 | ETF(e) | ||||||||||
Black KnightInc(a) | 424 | 19 | $ | 350 | |||||||||
Broadridge Financial SolutionsInc | 333 | 32 | TOTAL INVESTMENT COMPANIES | $ | 6,372 | ||||||||
Cadence Design SystemsInc(a) | 780 | 34 | CONVERTIBLE PREFERRED STOCKS | ||||||||||
CDK GlobalInc | 391 | 19 | - 0.33 | % | Shares HeldValue (000's) | ||||||||
Cerner Corp(a) | 384 | 20 | Internet - 0.33% | ||||||||||
Citrix SystemsInc | 382 | 39 | AirbnbInc- Series D 0.00%(a),(b),(c),(d) | 3,936 | $ | 418 | |||||||
Dun & Bradstreet Corp/The | 63 | 9 | AirbnbInc- Series E 0.00%(a),(b),(c),(d) | 1,119 | 119 | ||||||||
Electronic Arts Inc(a) | 48,874 | 3,857 | Uber TechnologiesInc- Series A 0.00%(a),(b),(c),(d) | 16 | 1 | ||||||||
Fair Isaac Corp(a) | 91 | 17 | Uber TechnologiesInc- Series B 0.00%(a),(b),(c),(d) | 44 | 2 | ||||||||
Fidelity National Information ServicesInc | 4,597 | 472 | Uber TechnologiesInc- Series C-1 0.00% | 12 | 1 | ||||||||
First Data Corp(a) | 1,576 | 27 | (a),(b),(c),(d) | ||||||||||
Fiserv Inc(a) | 762 | 56 | Uber TechnologiesInc- Series C-2 0.00% | 9 | — | ||||||||
Intuit Inc | 39,711 | 7,816 | (a),(b),(c),(d) | ||||||||||
Jack Henry & AssociatesInc | 223 | 28 | Uber TechnologiesInc- Series C-3 0.00% | 1 | — | ||||||||
Manhattan AssociatesInc(a) | 232 | 10 | (a),(b),(c),(d) | ||||||||||
Microsoft Corp | 145,487 | 14,778 | Uber TechnologiesInc- Series D 0.00%(a),(b),(c),(d) | 10 | 1 | ||||||||
MSCIInc | 223 | 33 | Uber TechnologiesInc- Series E 0.00%(a),(b),(c),(d) | 5,745 | 280 | ||||||||
Oracle Corp | 511 | 23 | Uber TechnologiesInc- Series G 0.00%(a),(b),(c),(d) | 3,311 | 161 | ||||||||
PaychexInc | 864 | 56 | Uber TechnologiesInc- Series G-1 0.00% | 25 | 1 | ||||||||
Paycom SoftwareInc(a) | 141 | 17 | (a),(b),(c),(d) | ||||||||||
PTC Inc(a) | 323 | 27 | Uber TechnologiesInc- Series Seed 0.00% | 42 | 2 | ||||||||
RealPageInc(a) | 214 | 10 | (a),(b),(c),(d) | ||||||||||
Red HatInc(a) | 17,469 | 3,068 | $ | 986 | |||||||||
salesforce.comInc(a) | 50,764 | 6,953 | TOTAL CONVERTIBLE PREFERRED STOCKS | $ | 986 | ||||||||
ServiceNowInc(a) | 6,482 | 1,155 | PREFERRED STOCKS - 0.07% | Shares HeldValue (000's) | |||||||||
SplunkInc(a) | 11,244 | 1,179 | Software - 0.07% | ||||||||||
SS&C Technologies HoldingsInc | 539 | 24 | Magic LeapInc- Series C 0.00%(a),(b),(c),(d) | 5,653 | 153 | ||||||||
SynopsysInc(a) | 73 | 6 | Magic LeapInc- Series D 0.00%(a),(c),(d) | 1,903 | 51 | ||||||||
Take-Two Interactive SoftwareInc(a) | 186 | 19 | $ | 204 | |||||||||
Teradata Corp(a) | 275 | 11 | TOTAL PREFERRED STOCKS | $ | 204 | ||||||||
Tyler TechnologiesInc(a) | 108 | 20 | Total Investments | $ | 298,713 | ||||||||
Ultimate Software GroupInc/The(a) | 84 | 21 | Other Assets and Liabilities - 0.20% | 585 | |||||||||
Veeva SystemsInc(a) | 314 | 28 | TOTAL NET ASSETS - 100.00% | $ | 299,298 | ||||||||
VMwareInc | 15,907 | 2,181 | |||||||||||
WorkdayInc(a) | 7,814 | 1,248 | |||||||||||
$ | 51,682 | (a) | Non-income producing security | ||||||||||
Telecommunications - 0.04% | (b) | The value of these investments was determined using significant unobservable | |||||||||||
Arista Networks Inc(a) | 150 | 32 | inputs. | ||||||||||
LogMeInInc | 122 | 10 | (c) | Restricted Security. Please see Restricted Security Sub-Schedule for more | |||||||||
Motorola SolutionsInc | 62 | 7 | information. | ||||||||||
T-Mobile USInc(a) | 559 | 35 | (d) | Fair value of these investments is determined in good faith by the Manager | |||||||||
Ubiquiti NetworksInc | 77 | 8 | under procedures established and periodically reviewed by the Board of | ||||||||||
Zayo Group HoldingsInc(a) | 543 | 12 | Directors. Certain inputs used in the valuation may be unobservable; however, | ||||||||||
$ | 104 | each security is evaluated individually for purposes of ASC 820 which results | |||||||||||
Transportation - 0.44% | in not all securities being identified as Level 3 of the fair value hierarchy. At | ||||||||||||
CH Robinson WorldwideInc | 382 | 32 | the end of the period, the fair value of these securities totaled $1,196 or 0.40% | ||||||||||
CSX Corp | 1,473 | 92 | of net assets. | ||||||||||
Expeditors International of WashingtonInc | 474 | 32 | (e) | Affiliated Security. Security is either an affiliate (and registered under the | |||||||||
FedEx Corp | 465 | 75 | Investment Company Act of 1940) or an affiliate as defined by the Investment | ||||||||||
Genesee & WyomingInc(a) | 68 | 5 | Company Act of 1940 (controls 5.0% or more of the outstanding voting | ||||||||||
JB Hunt Transport ServicesInc | 242 | 23 | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||||
Kansas City Southern | 6,573 | 627 | information. | ||||||||||
LandstarSystemInc | 132 | 13 | (f) | Current yield shown is as of period end. | |||||||||
Old Dominion Freight LineInc | 189 | 23 | |||||||||||
Schneider NationalInc | 110 | 2 | |||||||||||
Union Pacific Corp | 1,968 | 272 | |||||||||||
United Parcel ServiceInc | 1,301 | 127 | |||||||||||
$ | 1,323 | ||||||||||||
Water - 0.21% | |||||||||||||
American Water Works Co Inc | 7,030 | 638 | |||||||||||
TOTAL COMMON STOCKS | $ | 291,151 |
See accompanying notes.
196
Schedule of Investments | |||||||||||||||
LargeCap Growth Account I | |||||||||||||||
December 31, 2018 | |||||||||||||||
Portfolio Summary (unaudited) | |||||||||||||||
Sector | Percent | ||||||||||||||
Consumer, Non-cyclical | 27.58 | % | |||||||||||||
Technology | 21.61 | % | |||||||||||||
Communications | 20.19 | % | |||||||||||||
Industrial | 10.07 | % | |||||||||||||
Financial | 8.57 | % | |||||||||||||
Consumer, Cyclical | 7.47 | % | |||||||||||||
Investment Companies | 2.01 | % | |||||||||||||
Basic Materials | 1.60 | % | |||||||||||||
Utilities | 0.51 | % | |||||||||||||
Domestic Equity Funds | 0.12 | % | |||||||||||||
Energy | 0.07 | % | |||||||||||||
Other Assets and Liabilities | 0.20 | % | |||||||||||||
TOTAL NET ASSETS | 100.00 | % | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||||
Value | Cost | Proceeds | Value | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 7803 | $ | 85,094 | $ | 86,875 | $ | 6,022 | |||||||
Principal Millennials Index ETF | — | 163 | — | 150 | |||||||||||
Principal Price Setters Index ETF | — | 54 | — | 50 | |||||||||||
Principal Sustainable Momentum Index ETF | — | 20 | 1 | 18 | |||||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | — | 143 | — | 132 | |||||||||||
$ | 7,803 | $ | 85,474 | $ | 86,876 | $ | 6,372 | ||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 121 | $ | —$ | — $ | — | |||||||||
Principal Millennials Index ETF | — | — | — | (13 | ) | ||||||||||
Principal Price Setters Index ETF | — | — | — | (4 | ) | ||||||||||
Principal Sustainable Momentum Index ETF | — | — | — | (1 | ) | ||||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 1 | — | — | (11 | ) | ||||||||||
$ | 122 | $ | — $ | — $ | (29 | ) | |||||||||
Amounts in thousands | |||||||||||||||
Restricted Securities | |||||||||||||||
Security Name | Acquisition Date | Cost | Value | Percent of Net Assets | |||||||||||
AirbnbInc- Series D - 0.00% | 04/16/2014 | $ | 160 | $ | 418 | 0.14 | % | ||||||||
AirbnbInc- Series E - 0.00% | 07/14/2015 | 104 | 119 | 0.04 | % | ||||||||||
Magic LeapInc- Series C - 0.00% | 01/20/2016 | 130 | 153 | 0.05 | % | ||||||||||
Magic LeapInc- Series D - 0.00% | 10/12/2017 | 51 | 51 | 0.02 | % | ||||||||||
Uber TechnologiesInc - Class A | 01/16/2018 | 4 | 6 | 0.00 | % | ||||||||||
Uber TechnologiesInc- Series A - 0.00% | 01/16/2018 | 1 | 1 | 0.00 | % | ||||||||||
Uber TechnologiesInc- Series B - 0.00% | 01/16/2018 | 2 | 2 | 0.00 | % | ||||||||||
Uber TechnologiesInc- Series C-1 - 0.00% | 01/16/2018 | — | 1 | 0.00 | % | ||||||||||
Uber TechnologiesInc- Series C-2 - 0.00% | 01/16/2018 | — | — | 0.00 | % | ||||||||||
Uber TechnologiesInc- Series C-3 - 0.00% | 01/16/2018 | — | — | 0.00 | % | ||||||||||
Uber TechnologiesInc- Series D - 0.00% | 01/16/2018 | — | 1 | 0.00 | % | ||||||||||
Uber TechnologiesInc- Series E - 0.00% | 12/05/2014-1/16/2018 | 192 | 280 | 0.09 | % | ||||||||||
Uber TechnologiesInc- Series G - 0.00% | 12/03/2015 | 162 | 161 | 0.05 | % | ||||||||||
Uber TechnologiesInc- Series G-1 - 0.00% | 01/16/2018 | 1 | 1 | 0.00 | % | ||||||||||
Uber TechnologiesInc- Series Seed - 0.00% | 01/16/2018 | 1 | 2 | 0.00 | % | ||||||||||
Total | $ | 1,196 | 0.39 | % | |||||||||||
Amounts in thousands. | |||||||||||||||
Futures Contracts | |||||||||||||||
Description and Expiration Date | Type | Contracts | Notional Amount | Value and Unrealized Appreciation/(Depreciation) | |||||||||||
S&P 500Emini; March 2019 | Long | 9 | $ | 1,127 | $ | (2 | ) | ||||||||
Total | $ | (2 | ) | ||||||||||||
Amounts in thousands except contracts. |
See accompanying notes.
197
Schedule of Investments
LargeCap S&P 500 Index Account
December 31, 2018
COMMON STOCKS - 97.66% | Shares HeldValue (000's) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Advertising - 0.11% | Banks (continued) | ||||||||||
Interpublic Group of CosInc/The | 42,550 | $ | 878 | US Bancorp | 168,180 | $ | 7,686 | ||||
Omnicom GroupInc | 24,810 | 1,817 | Wells Fargo & Co | 469,017 | 21,612 | ||||||
$ | 2,695 | Zions Bancorp NA | 21,278 | 867 | |||||||
Aerospace & Defense- 2.34% | $ | 152,850 | |||||||||
Arconic Inc | 47,613 | 803 | Beverages - 1.87% | ||||||||
Boeing Co/The | 58,469 | 18,856 | Brown-Forman Corp - B Shares | 18,412 | 876 | ||||||
General Dynamics Corp | 30,817 | 4,845 | Coca-Cola Co/The | 424,106 | 20,081 | ||||||
Harris Corp | 13,025 | 1,754 | Constellation Brands Inc | 18,394 | 2,958 | ||||||
L3 TechnologiesInc | 8,712 | 1,513 | Molson Coors Brewing Co | 20,736 | 1,165 | ||||||
Lockheed Martin Corp | 27,393 | 7,172 | Monster Beverage Corp(a) | 44,077 | 2,169 | ||||||
Northrop Grumman Corp | 19,220 | 4,707 | PepsiCo Inc | 156,271 | 17,265 | ||||||
Raytheon Co | 31,503 | 4,831 | $ | 44,514 | |||||||
TransDigm GroupInc(a) | 5,371 | 1,826 | Biotechnology- 2.13% | ||||||||
United Technologies Corp | 89,847 | 9,567 | Alexion PharmaceuticalsInc(a) | 24,698 | 2,405 | ||||||
$ | 55,874 | AmgenInc | 70,546 | 13,733 | |||||||
Agriculture - 1.02% | BiogenInc(a) | 22,305 | 6,712 | ||||||||
Altria GroupInc | 208,024 | 10,274 | Celgene Corp(a) | 77,414 | 4,962 | ||||||
Archer-Daniels-Midland Co | 62,067 | 2,543 | Gilead SciencesInc | 143,213 | 8,958 | ||||||
Philip Morris InternationalInc | 172,098 | 11,489 | Illumina Inc(a) | 16,272 | 4,880 | ||||||
$ | 24,306 | IncyteCorp(a) | 19,553 | 1,243 | |||||||
Airlines - 0.44% | Regeneron PharmaceuticalsInc(a) | 8,592 | 3,209 | ||||||||
Alaska Air GroupInc | 13,649 | 830 | Vertex PharmaceuticalsInc(a) | 28,290 | 4,688 | ||||||
American Airlines GroupInc | 45,381 | 1,457 | $ | 50,790 | |||||||
Delta Air Lines Inc | 69,073 | 3,447 | Building Materials - 0.30% | ||||||||
Southwest Airlines Co | 56,028 | 2,604 | Fortune Brands Home & SecurityInc | 15,656 | 595 | ||||||
United Continental HoldingsInc(a) | 25,338 | 2,122 | Johnson Controls International plc | 102,300 | 3,033 | ||||||
$ | 10,460 | Martin Marietta Materials Inc | 6,943 | 1,194 | |||||||
Apparel - 0.68% | Masco Corp | 33,823 | 989 | ||||||||
HanesbrandsInc | 39,936 | 500 | Vulcan Materials Co | 14,618 | 1,444 | ||||||
Michael Kors Holdings Ltd(a) | 16,632 | 631 | $ | 7,255 | |||||||
NIKEInc | 140,939 | 10,449 | Chemicals - 1.86% | ||||||||
PVH Corp | 8,386 | 780 | Air Products & ChemicalsInc | 24,303 | 3,890 | ||||||
Ralph Lauren Corp | 6,041 | 625 | Albemarle Corp | 11,759 | 906 | ||||||
UnderArmour Inc - Class A(a) | 20,771 | 367 | Celanese Corp | 14,808 | 1,332 | ||||||
UnderArmour Inc - Class C(a) | 21,294 | 344 | CF Industries HoldingsInc | 25,552 | 1,112 | ||||||
VF Corp | 36,022 | 2,570 | DowDuPont Inc | 253,991 | 13,583 | ||||||
$ | 16,266 | Eastman Chemical Co | 15,505 | 1,134 | |||||||
Automobile Manufacturers - 0.44% | FMC Corp | 14,907 | 1,103 | ||||||||
Ford Motor Co | 432,541 | 3,309 | International Flavors & FragrancesInc | 11,212 | 1,505 | ||||||
General Motors Co | 145,315 | 4,861 | Linde PLC | 61,004 | 9,519 | ||||||
PACCAR Inc | 38,685 | 2,210 | LyondellBasell Industries NV | 34,831 | 2,897 | ||||||
$ | 10,380 | Mosaic Co/The | 39,261 | 1,147 | |||||||
Automobile Parts & Equipment- 0.13% | PPG IndustriesInc | 26,558 | 2,715 | ||||||||
Aptiv PLC | 29,169 | 1,796 | Sherwin-Williams Co/The | 9,120 | 3,588 | ||||||
BorgWarnerInc | 23,057 | 801 | $ | 44,431 | |||||||
Goodyear Tire & Rubber Co/The | 25,797 | 526 | Commercial Services - 1.97% | ||||||||
$ | 3,123 | Automatic Data ProcessingInc | 48,460 | 6,354 | |||||||
Banks - 6.41% | Cintas Corp | 9,584 | 1,610 | ||||||||
Bank of America Corp | 1,010,452 | 24,898 | EcolabInc | 28,141 | 4,147 | ||||||
Bank of New York Mellon Corp/The | 100,710 | 4,740 | Equifax Inc | 13,349 | 1,243 | ||||||
BB&T Corp | 85,314 | 3,696 | FleetCorTechnologiesInc(a) | 9,816 | 1,823 | ||||||
CitigroupInc | 270,364 | 14,075 | GartnerInc(a) | 10,062 | 1,286 | ||||||
Citizens Financial GroupInc | 51,804 | 1,540 | Global PaymentsInc | 17,516 | 1,807 | ||||||
Comerica Inc | 17,903 | 1,230 | H&R BlockInc | 22,753 | 577 | ||||||
Fifth Third Bancorp | 72,583 | 1,708 | IHSMarkit Ltd(a) | 39,709 | 1,905 | ||||||
First Republic Bank/CA | 18,118 | 1,574 | Moody's Corp | 18,452 | 2,584 | ||||||
Goldman Sachs GroupInc/The | 38,298 | 6,398 | Nielsen Holdings PLC | 39,298 | 917 | ||||||
Huntington BancsharesInc/OH | 117,522 | 1,401 | PayPal HoldingsInc(a) | 130,453 | 10,970 | ||||||
JPMorgan Chase & Co | 368,150 | 35,939 | Quanta ServicesInc | 16,168 | 487 | ||||||
KeyCorp | 114,532 | 1,693 | Robert Half InternationalInc | 13,450 | 769 | ||||||
M&T Bank Corp | 15,539 | 2,224 | Rollins Inc | 16,305 | 589 | ||||||
Morgan Stanley | 144,731 | 5,739 | S&P GlobalInc | 27,775 | 4,720 | ||||||
Northern Trust Corp | 24,511 | 2,049 | Total System ServicesInc | 18,580 | 1,510 | ||||||
PNC Financial Services GroupInc/The | 51,085 | 5,972 | United RentalsInc(a) | 8,980 | 921 | ||||||
Regions Financial Corp | 114,461 | 1,531 | Verisk AnalyticsInc(a) | 18,224 | 1,987 | ||||||
State Street Corp | 42,017 | 2,650 | Western Union Co/The | 49,023 | 836 | ||||||
SunTrust BanksInc | 49,740 | 2,509 | $ | 47,042 | |||||||
SVB Financial Group(a) | 5,893 | 1,119 |
See accompanying notes.
198
Schedule of Investments
LargeCap S&P 500 Index Account
December 31, 2018
COMMON STOCKS (continued) | Shares HeldValue (000’s) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | |||||||
Computers - 4.89% | Electric (continued) | |||||||||
Accenture PLC - Class A | 70,569 | $ | 9,951 | FirstEnergy Corp | 53,788 | $ | 2,020 | |||
Apple Inc | 499,084 | 78,726 | NextEra EnergyInc | 52,911 | 9,197 | |||||
Cognizant Technology Solutions Corp | 64,102 | 4,069 | NRG EnergyInc | 32,099 | 1,271 | |||||
DXC Technology Co | 31,010 | 1,649 | PG&E Corp(a) | 57,421 | 1,364 | |||||
Fortinet Inc(a) | 16,032 | 1,129 | Pinnacle West Capital Corp | 12,408 | 1,057 | |||||
Hewlett Packard Enterprise Co | 157,539 | 2,081 | PPL Corp | 79,731 | 2,259 | |||||
HPInc | 175,184 | 3,584 | Public Service Enterprise GroupInc | 55,957 | 2,913 | |||||
International Business Machines Corp | 100,610 | 11,436 | Sempra Energy | 30,296 | 3,278 | |||||
NetApp Inc | 27,887 | 1,664 | Southern Co/The | 113,905 | 5,003 | |||||
Seagate Technology PLC | 28,833 | 1,113 | WEC Energy GroupInc | 34,931 | 2,419 | |||||
Western Digital Corp | 32,043 | 1,185 | Xcel EnergyInc | 56,906 | 2,804 | |||||
$ | 116,587 | $ | 74,867 | |||||||
Consumer Products - 0.39% | Electrical Components & Equipment- 0.25% | |||||||||
Avery Dennison Corp | 9,602 | 862 | AMETEKInc | 25,696 | 1,739 | |||||
Church & Dwight CoInc | 27,260 | 1,793 | Emerson Electric Co | 69,320 | 4,142 | |||||
Clorox Co/The | 14,130 | 2,178 | $ | 5,881 | ||||||
Kimberly-Clark Corp | 38,338 | 4,368 | Electronics - 1.32% | |||||||
$ | 9,201 | Agilent TechnologiesInc | 35,289 | 2,381 | ||||||
Cosmetics & Personal Care- 1.45% | Allegion PLC | 10,522 | 839 | |||||||
Colgate-Palmolive Co | 96,019 | 5,715 | Amphenol Corp | 33,359 | 2,703 | |||||
CotyInc | 49,891 | 327 | CorningInc | 88,612 | 2,677 | |||||
Estee Lauder Cos Inc/The | 24,346 | 3,168 | FLIR SystemsInc | 15,315 | 667 | |||||
Procter & Gamble Co/The(b) | 275,818 | 25,353 | Fortive Corp | 32,537 | 2,201 | |||||
$ | 34,563 | Garmin Ltd | 13,378 | 847 | ||||||
Distribution & Wholesale- 0.21% | Honeywell InternationalInc | 81,954 | 10,828 | |||||||
Copart Inc(a) | 22,798 | 1,089 | Keysight TechnologiesInc(a) | 20,749 | 1,288 | |||||
Fastenal Co | 31,779 | 1,662 | Mettler-Toledo International Inc(a) | 2,773 | 1,568 | |||||
LKQ Corp(a) | 35,227 | 836 | PerkinElmer Inc | 12,315 | 967 | |||||
WW GraingerInc | 5,049 | 1,426 | TE Connectivity Ltd | 37,978 | 2,872 | |||||
$ | 5,013 | Waters Corp(a) | 8,386 | 1,582 | ||||||
Diversified Financial Services- 3.99% | $ | 31,420 | ||||||||
Affiliated Managers GroupInc | 5,832 | 568 | Engineering & Construction- 0.05% | |||||||
Alliance Data Systems Corp | 5,187 | 779 | Fluor Corp | 15,572 | 501 | |||||
American Express Co | 77,552 | 7,392 | Jacobs Engineering GroupInc | 13,236 | 774 | |||||
Ameriprise Financial Inc | 15,429 | 1,610 | $ | 1,275 | ||||||
BlackRock Inc | 13,445 | 5,282 | Environmental Control - 0.26% | |||||||
Capital One Financial Corp | 52,439 | 3,964 | Pentair PLC | 17,683 | 668 | |||||
Cboe Global MarketsInc | 12,421 | 1,215 | Republic ServicesInc | 24,074 | 1,736 | |||||
Charles Schwab Corp/The | 133,060 | 5,526 | Waste ManagementInc | 43,424 | 3,864 | |||||
CME GroupInc | 39,607 | 7,451 | $ | 6,268 | ||||||
Discover Financial Services | 37,195 | 2,194 | Food - 1.26% | |||||||
E*TRADE Financial Corp | 28,148 | 1,235 | Campbell Soup Co | 21,329 | 704 | |||||
Franklin Resources Inc | 32,947 | 977 | ConagraBrands Inc | 53,760 | 1,148 | |||||
Intercontinental ExchangeInc | 63,059 | 4,750 | General MillsInc | 66,007 | 2,570 | |||||
Invesco Ltd | 45,538 | 762 | Hershey Co/The | 15,525 | 1,664 | |||||
Jefferies Financial GroupInc | 31,119 | 540 | Hormel Foods Corp | 30,183 | 1,288 | |||||
Mastercard Inc | 100,591 | 18,977 | JM Smucker Co/The | 12,594 | 1,177 | |||||
Nasdaq Inc | 12,706 | 1,037 | Kellogg Co | 28,045 | 1,599 | |||||
Raymond James FinancialInc | 14,278 | 1,062 | Kraft Heinz Co/The | 68,850 | 2,963 | |||||
Synchrony Financial | 73,205 | 1,717 | Kroger Co/The | 88,344 | 2,430 | |||||
T Rowe Price GroupInc | 26,644 | 2,460 | Lamb Weston HoldingsInc | 16,212 | 1,193 | |||||
VisaInc | 194,541 | 25,668 | McCormick & Co Inc/MD | 13,480 | 1,877 | |||||
$ | 95,166 | MondelezInternational Inc | 160,952 | 6,443 | ||||||
Electric - 3.14% | Sysco Corp | 52,940 | 3,317 | |||||||
AES Corp/VA | 73,321 | 1,060 | Tyson FoodsInc | 32,670 | 1,745 | |||||
Alliant Energy Corp | 26,119 | 1,103 | $ | 30,118 | ||||||
Ameren Corp | 27,045 | 1,764 | Forest Products & Paper- 0.08% | |||||||
American Electric Power Co Inc | 54,590 | 4,080 | International Paper Co | 44,842 | 1,810 | |||||
CenterPoint EnergyInc | 55,485 | 1,566 | Gas- 0.04% | |||||||
CMS Energy Corp | 31,366 | 1,557 | NiSourceInc | 40,218 | 1,020 | |||||
Consolidated Edison Inc | 34,481 | 2,636 | Hand & Machine Tools- 0.12% | |||||||
Dominion EnergyInc | 83,181 | 5,944 | Snap-onInc | 6,165 | 895 | |||||
DTE Energy Co | 20,140 | 2,221 | Stanley Black & DeckerInc | 16,726 | 2,003 | |||||
Duke Energy Corp | 78,920 | 6,811 | $ | 2,898 | ||||||
Edison International | 36,070 | 2,048 | ||||||||
Entergy Corp | 20,053 | 1,726 | Healthcare - Products- 3.80% | |||||||
EvergyInc | 29,168 | 1,656 | Abbott Laboratories | 194,439 | 14,064 | |||||
EversourceEnergy | 35,081 | 2,282 | ABIOMEDInc(a) | 4,985 | 1,620 | |||||
Exelon Corp | 107,055 | 4,828 | Align TechnologyInc(a) | 8,056 | 1,687 |
See accompanying notes.
199
Schedule of Investments LargeCap S&P 500 Index Account December 31, 2018
COMMON STOCKS (continued) | Shares HeldValue (000’s) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | |||||||
Healthcare - Products (continued) | Internet - 8.64% | |||||||||
Baxter International Inc | 54,787 | $ | 3,606 | AlphabetInc- A Shares(a) | 33,098 | $ | 34,586 | |||
Becton Dickinson and Co | 29,696 | 6,691 | AlphabetInc- C Shares(a) | 34,060 | 35,273 | |||||
Boston Scientific Corp(a) | 153,196 | 5,414 | Amazon.comInc(a) | 45,471 | 68,296 | |||||
Cooper Cos Inc/The | 5,439 | 1,384 | Booking HoldingsInc(a) | 5,130 | 8,836 | |||||
Danaher Corp | 68,283 | 7,041 | eBayInc(a) | 100,199 | 2,813 | |||||
DENTSPLY SIRONAInc | 24,637 | 917 | Expedia GroupInc | 13,115 | 1,477 | |||||
Edwards Lifesciences Corp(a) | 23,142 | 3,545 | F5 NetworksInc(a) | 6,710 | 1,087 | |||||
Henry ScheinInc(a) | 16,874 | 1,325 | FacebookInc(a) | 265,970 | 34,866 | |||||
HologicInc(a) | 29,826 | 1,226 | NetflixInc(a) | 48,276 | 12,922 | |||||
IDEXX LaboratoriesInc(a) | 9,546 | 1,776 | Symantec Corp | 70,729 | 1,336 | |||||
Intuitive SurgicalInc(a) | 12,641 | 6,054 | TripAdvisor Inc(a) | 11,335 | 611 | |||||
Medtronic PLC | 148,685 | 13,524 | Twitter Inc(a) | 80,062 | 2,301 | |||||
ResMed Inc | 15,776 | 1,797 | VeriSignInc(a) | 11,778 | 1,747 | |||||
Stryker Corp | 34,382 | 5,389 | $ | 206,151 | ||||||
Thermo Fisher ScientificInc | 44,567 | 9,974 | Iron & Steel- 0.08% | |||||||
Varian Medical SystemsInc(a) | 10,088 | 1,143 | Nucor Corp | 34,756 | 1,801 | |||||
Zimmer Biomet HoldingsInc | 22,581 | 2,342 | Leisure Products & Services- 0.24% | |||||||
$ | 90,519 | Carnival Corp | 44,330 | 2,186 | ||||||
Healthcare - Services- 2.20% | Harley-DavidsonInc | 18,028 | 615 | |||||||
AnthemInc | 28,633 | 7,520 | Norwegian Cruise Line Holdings Ltd(a) | 24,352 | 1,032 | |||||
Centene Corp(a) | 22,734 | 2,621 | Royal Caribbean Cruises Ltd | 18,972 | 1,855 | |||||
DaVitaInc(a) | 13,966 | 719 | $ | 5,688 | ||||||
HCA HealthcareInc | 29,720 | 3,699 | Lodging - 0.34% | |||||||
HumanaInc | 15,187 | 4,351 | Hilton Worldwide HoldingsInc | 32,833 | 2,357 | |||||
IQVIA HoldingsInc(a) | 17,543 | 2,038 | Marriott International Inc/MD | 31,347 | 3,403 | |||||
Laboratory Corp of America Holdings(a) | 11,173 | 1,412 | MGM Resorts International | 55,448 | 1,345 | |||||
Quest DiagnosticsInc | 15,064 | 1,254 | Wynn Resorts Ltd | 10,834 | 1,072 | |||||
UnitedHealth GroupInc | 106,503 | 26,532 | $ | 8,177 | ||||||
Universal Health ServicesInc | 9,440 | 1,100 | Machinery - Construction & Mining- 0.35% | |||||||
WellCareHealth PlansInc(a) | 5,533 | 1,306 | Caterpillar Inc | 65,331 | 8,302 | |||||
$ | 52,552 | |||||||||
Machinery - Diversified- 0.65% | ||||||||||
Home Builders- 0.14% | Cummins Inc | 16,354 | 2,186 | |||||||
DR HortonInc | 37,907 | 1,314 | Deere & Co | 35,610 | 5,312 | |||||
Lennar Corp - A Shares | 32,386 | 1,268 | Dover Corp | 16,201 | 1,149 | |||||
PulteGroupInc | 28,607 | 743 | Flowserve Corp | 14,486 | 551 | |||||
$ | 3,325 | Rockwell Automation Inc | 13,361 | 2,011 | ||||||
Home Furnishings- 0.05% | Roper TechnologiesInc | 11,448 | 3,051 | |||||||
Leggett & PlattInc | 14,437 | 517 | XylemInc/NY | 19,896 | 1,327 | |||||
Whirlpool Corp | 7,065 | 755 | $ | 15,587 | ||||||
$ | 1,272 | Media - 2.27% | ||||||||
Housewares- 0.04% | CBS Corp | 37,276 | 1,630 | |||||||
Newell Brands Inc | 47,546 | 884 | Charter CommunicationsInc(a) | 19,514 | 5,561 | |||||
Insurance - 4.17% | Comcast Corp - Class A | 502,621 | 17,114 | |||||||
AflacInc | 84,281 | 3,840 | DiscoveryInc- A Shares(a) | 17,353 | 429 | |||||
Allstate Corp/The | 38,133 | 3,151 | DiscoveryInc- C Shares(a) | 39,882 | 920 | |||||
American International GroupInc | 97,937 | 3,860 | DISH Network Corp(a) | 25,378 | 634 | |||||
Aon PLC | 26,664 | 3,876 | News Corp - A Shares | 42,646 | 484 | |||||
Arthur J Gallagher & Co | 20,331 | 1,498 | News Corp - B Shares | 13,703 | 158 | |||||
Assurant Inc | 5,771 | 516 | Twenty-First Century FoxInc- A Shares | 117,015 | 5,631 | |||||
Berkshire HathawayInc - Class B(a) | 215,368 | 43,974 | Twenty-First Century FoxInc- B Shares | 53,925 | 2,576 | |||||
BrighthouseFinancial Inc(a) | 13,132 | 400 | ViacomInc- B Shares | 39,128 | 1,006 | |||||
Chubb Ltd | 51,016 | 6,590 | Walt Disney Co/The | 164,806 | 18,071 | |||||
Cincinnati Financial Corp | 16,755 | 1,297 | $ | 54,214 | ||||||
Everest Re Group Ltd | 4,500 | 980 | Mining - 0.16% | |||||||
Hartford Financial Services GroupInc/The | 39,714 | 1,765 | Freeport-McMoRan Inc | 160,419 | 1,654 | |||||
Lincoln National Corp | 23,649 | 1,213 | Newmont Mining Corp | 58,969 | 2,043 | |||||
Loews Corp | 30,610 | 1,393 | $ | 3,697 | ||||||
Marsh & McLennan CosInc | 55,764 | 4,447 | Miscellaneous Manufacturers - 1.41% | |||||||
MetLife Inc | 109,251 | 4,486 | 3M Co | 64,464 | 12,283 | |||||
Principal Financial GroupInc | 29,142 | 1,287 | AO Smith Corp | 15,929 | 680 | |||||
Progressive Corp/The | 64,553 | 3,895 | Eaton Corp PLC | 47,980 | 3,294 | |||||
Prudential Financial Inc | 45,723 | 3,729 | General Electric Co | 962,949 | 7,290 | |||||
Torchmark Corp | 11,362 | 847 | Illinois Tool Works Inc | 33,796 | 4,282 | |||||
Travelers Cos Inc/The | 29,326 | 3,512 | Ingersoll-Rand PLC | 27,196 | 2,481 | |||||
Unum Group | 24,216 | 712 | Parker-Hannifin Corp | 14,650 | 2,185 | |||||
Willis Towers Watson PLC | 14,387 | 2,185 | Textron Inc | 26,899 | 1,237 | |||||
$ | 99,453 | $ | 33,732 |
See accompanying notes.
200
Schedule of Investments
LargeCap S&P 500 Index Account
December 31, 2018
COMMON STOCKS (continued) | Shares HeldValue (000’s) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | |||||||
Office & Business Equipment- 0.02% | REITs (continued) | |||||||||
Xerox Corp | 22,952 | $ | 454 | Boston Properties Inc | 17,097 | $ | 1,924 | |||
Oil & Gas- 4.35% | Crown Castle International Corp | 45,926 | 4,989 | |||||||
Anadarko Petroleum Corp | 55,829 | 2,447 | Digital Realty TrustInc | 22,836 | 2,433 | |||||
Apache Corp | 42,019 | 1,103 | Duke Realty Corp | 39,668 | 1,027 | |||||
Cabot Oil & Gas Corp | 47,737 | 1,067 | Equinix Inc | 8,898 | 3,137 | |||||
Chevron Corp | 211,537 | 23,013 | Equity Residential | 40,789 | 2,693 | |||||
Cimarex Energy Co | 10,585 | 652 | Essex Property TrustInc | 7,313 | 1,793 | |||||
Concho ResourcesInc(a) | 22,169 | 2,279 | Extra Space StorageInc | 14,005 | 1,267 | |||||
ConocoPhillips | 127,453 | 7,947 | Federal Realty Investment Trust | 8,177 | 965 | |||||
Devon Energy Corp | 51,835 | 1,168 | HCPInc | 52,861 | 1,476 | |||||
Diamondback EnergyInc | 17,075 | 1,583 | Host Hotels & ResortsInc | 82,151 | 1,370 | |||||
EOG ResourcesInc | 64,198 | 5,599 | Iron Mountain Inc | 31,686 | 1,027 | |||||
Exxon Mobil Corp | 468,715 | 31,962 | Kimco Realty Corp | 46,650 | 683 | |||||
Helmerich & PayneInc | 12,070 | 579 | Macerich Co/The | 11,711 | 507 | |||||
Hess Corp | 27,551 | 1,116 | Mid-America Apartment Communities Inc | 12,602 | 1,206 | |||||
HollyFrontier Corp | 17,649 | 902 | PrologisInc | 69,694 | 4,092 | |||||
Marathon Oil Corp | 92,031 | 1,320 | Public Storage | 16,600 | 3,360 | |||||
Marathon Petroleum Corp | 76,482 | 4,513 | Realty Income Corp | 32,671 | 2,060 | |||||
Newfield Exploration Co(a) | 22,181 | 325 | Regency Centers Corp | 18,758 | 1,101 | |||||
Noble EnergyInc | 53,118 | 996 | SBA Communications Corp(a) | 12,546 | 2,031 | |||||
Occidental Petroleum Corp | 83,588 | 5,131 | Simon Property GroupInc | 34,240 | 5,752 | |||||
Phillips 66 | 46,967 | 4,046 | SL Green Realty Corp | 9,442 | 747 | |||||
Pioneer Natural Resources Co | 18,871 | 2,482 | UDRInc | 30,503 | 1,209 | |||||
Valero Energy Corp | 46,975 | 3,522 | VentasInc | 39,463 | 2,312 | |||||
$ | 103,752 | Vornado Realty Trust | 19,170 | 1,189 | ||||||
Oil & Gas Services- 0.48% | Welltower Inc | 41,587 | 2,887 | |||||||
Baker Hughes a GE Co | 56,836 | 1,222 | Weyerhaeuser Co | 82,944 | 1,813 | |||||
Halliburton Co | 96,985 | 2,578 | $ | 67,555 | ||||||
National Oilwell VarcoInc | 42,442 | 1,091 | Retail - 5.42% | |||||||
Schlumberger Ltd | 153,307 | 5,531 | Advance Auto Parts Inc | 8,070 | 1,271 | |||||
TechnipFMCPLC | 47,104 | 922 | AutoZone Inc(a) | 2,792 | 2,341 | |||||
$ | 11,344 | Best Buy CoInc | 25,920 | 1,373 | ||||||
Packaging & Containers- 0.18% | CarMax Inc(a) | 19,333 | 1,213 | |||||||
Ball Corp | 37,553 | 1,727 | Chipotle Mexican GrillInc(a) | 2,705 | 1,168 | |||||
Packaging Corp of America | 10,460 | 873 | Costco Wholesale Corp | 48,511 | 9,882 | |||||
Sealed Air Corp | 17,374 | 605 | Darden Restaurants Inc | 13,739 | 1,372 | |||||
Westrock Co | 28,071 | 1,060 | Dollar General Corp | 29,105 | 3,146 | |||||
$ | 4,265 | Dollar Tree Inc(a) | 26,345 | 2,379 | ||||||
Pharmaceuticals - 6.69% | Foot Locker Inc | 12,722 | 677 | |||||||
AbbVieInc | 166,530 | 15,352 | GapInc/The | 23,649 | 609 | |||||
Allergan PLC | 35,100 | 4,691 | Genuine Parts Co | 16,246 | 1,560 | |||||
AmerisourceBergen Corp | 17,364 | 1,292 | Home DepotInc/The | 125,048 | 21,486 | |||||
Bristol-Myers Squibb Co | 180,696 | 9,393 | Kohl's Corp | 18,283 | 1,213 | |||||
Cardinal HealthInc | 32,985 | 1,471 | L Brands Inc | 25,280 | 649 | |||||
Cigna Corp | 41,898 | 7,957 | Lowe's CosInc | 88,895 | 8,210 | |||||
CVS Health Corp | 143,167 | 9,380 | Macy'sInc | 34,038 | 1,014 | |||||
Eli Lilly & Co | 104,376 | 12,078 | McDonald's Corp | 85,346 | 15,155 | |||||
Johnson & Johnson | 296,915 | 38,317 | Nordstrom Inc | 12,598 | 587 | |||||
McKesson Corp | 21,631 | 2,390 | O'Reilly AutomotiveInc(a) | 8,868 | 3,053 | |||||
Merck & Co Inc | 287,883 | 21,997 | Ross StoresInc | 41,336 | 3,439 | |||||
Mylan NV(a) | 57,084 | 1,564 | Starbucks Corp | 137,343 | 8,845 | |||||
NektarTherapeutics(a) | 19,162 | 630 | TapestryInc | 32,081 | 1,083 | |||||
Perrigo Co PLC | 13,838 | 536 | Target Corp | 57,772 | 3,818 | |||||
PfizerInc | 639,944 | 27,934 | Tiffany & Co | 12,010 | 967 | |||||
Zoetis Inc | 53,188 | 4,550 | TJX CosInc/The | 137,005 | 6,129 | |||||
$ | 159,532 | Tractor Supply Co | 13,514 | 1,128 | ||||||
Ulta BeautyInc(a) | 6,239 | 1,527 | ||||||||
Pipelines - 0.36% | Walgreens Boots AllianceInc | 89,003 | 6,081 | |||||||
Kinder MorganInc/DE | 210,126 | 3,232 | Walmart Inc | 157,602 | 14,681 | |||||
ONEOKInc | 45,541 | 2,457 | Yum! Brands Inc | 34,575 | 3,178 | |||||
Williams Cos Inc/The | 134,015 | 2,955 | $ | 129,234 | ||||||
$ | 8,644 | Savings & Loans- 0.03% | ||||||||
Real Estate - 0.06% | People's United FinancialInc | 41,786 | 603 | |||||||
CBRE GroupInc(a) | 35,096 | 1,405 | Semiconductors - 3.65% | |||||||
REITs - 2.83% | Advanced Micro Devices Inc(a) | 97,366 | 1,797 | |||||||
Alexandria Real Estate Equities Inc | 11,904 | 1,372 | Analog DevicesInc | 40,978 | 3,517 | |||||
American Tower Corp | 48,764 | 7,714 | Applied Materials Inc | 108,824 | 3,563 | |||||
Apartment Investment & Management Co | 17,233 | 756 | Broadcom Inc | 45,771 | 11,639 | |||||
AvalonBay CommunitiesInc | 15,301 | 2,663 | Intel Corp | 505,270 | 23,712 |
See accompanying notes.
201
Schedule of Investments | |||||||||||||
LargeCap S&P 500 Index Account | |||||||||||||
December 31, 2018 | |||||||||||||
COMMON STOCKS (continued) | Shares HeldValue (000’s) | INVESTMENT COMPANIES - 2.53% | Shares HeldValue (000's) | ||||||||||
Semiconductors (continued) | Exchange-Traded Funds - 0.16% | ||||||||||||
IPG Photonics Corp(a) | 3,963 | $ | 449 | iShares Core S&P 500 ETF | 15,016 | $ | 3,779 | ||||||
KLA-Tencor Corp | 16,948 | 1,517 | Money Market Funds- 2.37% | ||||||||||
Lam Research Corp | 17,181 | 2,340 | Principal Government Money Market Fund | 56,593,302 | 56,593 | ||||||||
Maxim Integrated ProductsInc | 30,672 | 1,560 | 2.11%(c),(d) | ||||||||||
Microchip TechnologyInc | 26,183 | 1,883 | TOTAL INVESTMENT COMPANIES | $ | 60,372 | ||||||||
Micron TechnologyInc(a) | 124,005 | 3,935 | Total Investments | $ | 2,389,725 | ||||||||
NVIDIA Corp | 67,530 | 9,015 | Other Assets and Liabilities - (0.19)% | (4,556 | ) | ||||||||
QorvoInc(a) | 13,829 | 840 | TOTAL NET ASSETS - 100.00% | $ | 2,385,169 | ||||||||
QUALCOMMInc | 134,195 | 7,637 | |||||||||||
Skyworks SolutionsInc | 19,656 | 1,317 | |||||||||||
Texas Instruments Inc | 106,341 | 10,049 | (a) | Non-income producing security | |||||||||
XilinxInc | 28,013 | 2,386 | (b) | Security or a portion of the security was pledged to cover margin requirements | |||||||||
$ | 87,156 | for futures contracts. At the end of the period, the value of these securities | |||||||||||
Shipbuilding - 0.04% | totaled $4,495 or 0.19% of net assets. | ||||||||||||
Huntington Ingalls IndustriesInc | 4,756 | 905 | (c) | Affiliated Security. Security is either an affiliate (and registered under the | |||||||||
Investment Company Act of 1940) or an affiliate as defined by the Investment | |||||||||||||
Software - 6.92% | Company Act of 1940 (controls 5.0% or more of the outstanding voting | ||||||||||||
Activision BlizzardInc | 84,475 | 3,934 | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||||
AdobeInc(a) | 54,038 | 12,226 | information. | ||||||||||
Akamai TechnologiesInc(a) | 18,032 | 1,101 | (d) | Current yield shown is as of period end. | |||||||||
ANSYSInc(a) | 9,252 | 1,322 | |||||||||||
Autodesk Inc(a) | 24,245 | 3,118 | |||||||||||
Broadridge Financial SolutionsInc | 12,924 | 1,244 | Portfolio Summary (unaudited) | ||||||||||
Cadence Design SystemsInc(a) | 31,236 | 1,358 | Sector | Percent | |||||||||
Cerner Corp(a) | 36,477 | 1,913 | Consumer, Non-cyclical | 22.78 | % | ||||||||
Citrix SystemsInc | 14,175 | 1,452 | Financial | 17.49 | % | ||||||||
Electronic Arts Inc(a) | 33,450 | 2,639 | Technology | 15.48 | % | ||||||||
Fidelity National Information ServicesInc | 36,255 | 3,718 | Communications | 14.21 | % | ||||||||
Fiserv Inc(a) | 44,115 | 3,242 | Industrial | 8.85 | % | ||||||||
Intuit Inc | 28,731 | 5,656 | Consumer, Cyclical | 8.22 | % | ||||||||
Jack Henry & AssociatesInc | 8,557 | 1,083 | Energy | 5.19 | % | ||||||||
Microsoft Corp | 855,648 | 86,908 | Utilities | 3.26 | % | ||||||||
MSCIInc | 9,746 | 1,437 | Investment Companies | 2.53 | % | ||||||||
Oracle Corp | 282,177 | 12,740 | Basic Materials | 2.18 | % | ||||||||
PaychexInc | 35,379 | 2,305 | Other Assets and Liabilities | (0.19 | )% | ||||||||
Red HatInc(a) | 19,567 | 3,437 | TOTAL NET ASSETS | 100.00 | % | ||||||||
salesforce.comInc(a) | 84,691 | 11,600 | |||||||||||
SynopsysInc(a) | 16,524 | 1,392 | |||||||||||
Take-Two Interactive SoftwareInc(a) | 12,606 | 1,298 | |||||||||||
$ | 165,123 | ||||||||||||
Telecommunications - 3.19% | |||||||||||||
Arista Networks Inc(a) | 5,760 | 1,214 | |||||||||||
AT&T Inc | 805,730 | 22,995 | |||||||||||
CenturyLinkInc | 105,280 | 1,595 | |||||||||||
Cisco SystemsInc | 497,739 | 21,567 | |||||||||||
Juniper NetworksInc | 38,211 | 1,028 | |||||||||||
Motorola SolutionsInc | 18,103 | 2,083 | |||||||||||
Verizon CommunicationsInc | 457,445 | 25,718 | |||||||||||
$ | 76,200 | ||||||||||||
Textiles - 0.03% | |||||||||||||
Mohawk IndustriesInc(a) | 6,983 | 817 | |||||||||||
Toys, Games & Hobbies- 0.06% | |||||||||||||
HasbroInc | 12,884 | 1,047 | |||||||||||
Mattel Inc(a) | 38,212 | 382 | |||||||||||
$ | 1,429 | ||||||||||||
Transportation - 1.58% | |||||||||||||
CH Robinson WorldwideInc | 15,225 | 1,280 | |||||||||||
CSX Corp | 88,812 | 5,518 | |||||||||||
Expeditors International of WashingtonInc | 19,109 | 1,301 | |||||||||||
FedEx Corp | 26,838 | 4,330 | |||||||||||
JB Hunt Transport ServicesInc | 9,668 | 899 | |||||||||||
Kansas City Southern | 11,258 | 1,075 | |||||||||||
Norfolk Southern Corp | 30,151 | 4,509 | |||||||||||
Union Pacific Corp | 81,567 | 11,275 | |||||||||||
United Parcel ServiceInc | 76,965 | 7,506 | |||||||||||
$ | 37,693 | ||||||||||||
Water - 0.08% | |||||||||||||
American Water Works Co Inc | 19,993 | 1,815 | |||||||||||
TOTAL COMMON STOCKS | $ | 2,329,353 |
See accompanying notes.
202
Schedule of Investments | ||||||||||||||
LargeCap S&P 500 Index Account | ||||||||||||||
December 31, 2018 | ||||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | ||||||||||
Value | Cost | Proceeds | Value | |||||||||||
Principal Government Money Market Fund 2.11% | $ | 46,339 | $ | 545,410 | $ | 535,156 | $ | 56,593 | ||||||
$ | 46,339 | $ | 545,410 | $ | 535,156 | $ | 56,593 | |||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | ||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | |||||||||||
Principal Government Money Market Fund 2.11% | $ | 872 | $ | — | $ | — | $ | — | ||||||
$ | 872 | $ | — | $ | — | $ | — | |||||||
Amounts in thousands | ||||||||||||||
Futures Contracts | ||||||||||||||
Description and Expiration Date | Type | Contracts | Notional Amount | Value and Unrealized Appreciation/(Depreciation) | ||||||||||
S&P 500Emini; March 2019 | Long | 446 | $ | 55,866 | $ | (1,277 | ) | |||||||
Total | $ | (1,277 | ) | |||||||||||
Amounts in thousands except contracts. |
See accompanying notes.
203
Schedule of Investments
LargeCap S&P 500 Managed Volatility Index Account
December 31, 2018
COMMON STOCKS - 90.77% | Shares HeldValue (000's) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Advertising - 0.11% | Banks (continued) | ||||||||||
Interpublic Group of CosInc/The | 3,409 | $ | 70 | US Bancorp | 13,480 | $ | 616 | ||||
Omnicom GroupInc | 1,988 | 146 | Wells Fargo & Co | 37,589 | 1,732 | ||||||
$ | 216 | Zions Bancorp NA | 1,706 | 70 | |||||||
Aerospace & Defense- 2.18% | $ | 12,251 | |||||||||
Arconic Inc | 3,815 | 64 | Beverages - 1.73% | ||||||||
Boeing Co/The | 4,687 | 1,512 | Brown-Forman Corp - B Shares | 1,477 | 70 | ||||||
General Dynamics Corp | 2,469 | 388 | Coca-Cola Co/The | 33,988 | 1,609 | ||||||
Harris Corp | 1,043 | 140 | Constellation Brands Inc | 1,475 | 237 | ||||||
L3 TechnologiesInc | 697 | 121 | Molson Coors Brewing Co | 1,661 | 93 | ||||||
Lockheed Martin Corp | 2,194 | 575 | Monster Beverage Corp(a) | 3,531 | 174 | ||||||
Northrop Grumman Corp | 1,539 | 377 | PepsiCo Inc | 12,523 | 1,384 | ||||||
Raytheon Co | 2,523 | 387 | $ | 3,567 | |||||||
TransDigm GroupInc(a) | 430 | 146 | Biotechnology- 1.98% | ||||||||
United Technologies Corp | 7,200 | 767 | Alexion PharmaceuticalsInc(a) | 1,979 | 193 | ||||||
$ | 4,477 | AmgenInc | 5,655 | 1,101 | |||||||
Agriculture - 0.95% | BiogenInc(a) | 1,786 | 537 | ||||||||
Altria GroupInc | 16,671 | 823 | Celgene Corp(a) | 6,206 | 398 | ||||||
Archer-Daniels-Midland Co | 4,973 | 204 | Gilead SciencesInc | 11,477 | 718 | ||||||
Philip Morris InternationalInc | 13,792 | 921 | Illumina Inc(a) | 1,303 | 391 | ||||||
$ | 1,948 | IncyteCorp(a) | 1,567 | 100 | |||||||
Airlines - 0.41% | Regeneron PharmaceuticalsInc(a) | 688 | 257 | ||||||||
Alaska Air GroupInc | 1,093 | 66 | Vertex PharmaceuticalsInc(a) | 2,266 | 375 | ||||||
American Airlines GroupInc | 3,636 | 117 | $ | 4,070 | |||||||
Delta Air Lines Inc | 5,538 | 276 | Building Materials - 0.28% | ||||||||
Southwest Airlines Co | 4,492 | 209 | Fortune Brands Home & SecurityInc | 1,259 | 48 | ||||||
United Continental HoldingsInc(a) | 2,030 | 170 | Johnson Controls International plc | 8,199 | 243 | ||||||
$ | 838 | Martin Marietta Materials Inc | 555 | 95 | |||||||
Apparel - 0.63% | Masco Corp | 2,712 | 79 | ||||||||
HanesbrandsInc | 3,201 | 40 | Vulcan Materials Co | 1,171 | 116 | ||||||
Michael Kors Holdings Ltd(a) | 1,332 | 51 | $ | 581 | |||||||
NIKEInc | 11,295 | 837 | Chemicals - 1.73% | ||||||||
PVH Corp | 674 | 63 | Air Products & ChemicalsInc | 1,946 | 311 | ||||||
Ralph Lauren Corp | 485 | 50 | Albemarle Corp | 944 | 73 | ||||||
UnderArmour Inc - Class A(a) | 1,664 | 29 | Celanese Corp | 1,186 | 107 | ||||||
UnderArmour Inc - Class C(a) | 1,705 | 28 | CF Industries HoldingsInc | 2,049 | 89 | ||||||
VF Corp | 2,887 | 206 | DowDuPont Inc | 20,356 | 1,088 | ||||||
$ | 1,304 | Eastman Chemical Co | 1,244 | 91 | |||||||
Automobile Manufacturers - 0.40% | FMC Corp | 1,194 | 88 | ||||||||
Ford Motor Co | 34,665 | 265 | International Flavors & FragrancesInc | 899 | 121 | ||||||
General Motors Co | 11,645 | 390 | Linde PLC | 4,888 | 763 | ||||||
PACCAR Inc | 3,100 | 177 | LyondellBasell Industries NV | 2,792 | 232 | ||||||
$ | 832 | Mosaic Co/The | 3,146 | 92 | |||||||
Automobile Parts & Equipment- 0.12% | PPG IndustriesInc | 2,130 | 218 | ||||||||
Aptiv PLC | 2,338 | 144 | Sherwin-Williams Co/The | 730 | 287 | ||||||
BorgWarnerInc | 1,847 | 64 | $ | 3,560 | |||||||
Goodyear Tire & Rubber Co/The | 2,069 | 42 | Commercial Services - 1.83% | ||||||||
$ | 250 | Automatic Data ProcessingInc | 3,884 | 509 | |||||||
Banks - 5.96% | Cintas Corp | 767 | 129 | ||||||||
Bank of America Corp | 80,980 | 1,995 | EcolabInc | 2,256 | 333 | ||||||
Bank of New York Mellon Corp/The | 8,072 | 380 | Equifax Inc | 1,069 | 100 | ||||||
BB&T Corp | 6,837 | 296 | FleetCorTechnologiesInc(a) | 786 | 146 | ||||||
CitigroupInc | 21,669 | 1,128 | GartnerInc(a) | 807 | 103 | ||||||
Citizens Financial GroupInc | 4,152 | 123 | Global PaymentsInc | 1,404 | 145 | ||||||
Comerica Inc | 1,437 | 99 | H&R BlockInc | 1,823 | 46 | ||||||
Fifth Third Bancorp | 5,817 | 137 | IHSMarkit Ltd(a) | 3,182 | 153 | ||||||
First Republic Bank/CA | 1,451 | 126 | Moody's Corp | 1,478 | 207 | ||||||
Goldman Sachs GroupInc/The | 3,070 | 513 | Nielsen Holdings PLC | 3,145 | 73 | ||||||
Huntington BancsharesInc/OH | 9,420 | 112 | PayPal HoldingsInc(a) | 10,453 | 879 | ||||||
JPMorgan Chase & Co | 29,506 | 2,880 | Quanta ServicesInc | 1,297 | 39 | ||||||
KeyCorp | 9,180 | 136 | Robert Half InternationalInc | 1,079 | 62 | ||||||
M&T Bank Corp | 1,247 | 179 | Rollins Inc | 1,306 | 47 | ||||||
Morgan Stanley | 11,600 | 460 | S&P GlobalInc | 2,224 | 378 | ||||||
Northern Trust Corp | 1,965 | 164 | Total System ServicesInc | 1,489 | 121 | ||||||
PNC Financial Services GroupInc/The | 4,096 | 479 | United RentalsInc(a) | 722 | 74 | ||||||
Regions Financial Corp | 9,174 | 123 | Verisk AnalyticsInc(a) | 1,461 | 159 | ||||||
State Street Corp | 3,366 | 212 | Western Union Co/The | 3,930 | 67 | ||||||
SunTrust BanksInc | 3,988 | 201 | $ | 3,770 | |||||||
SVB Financial Group(a) | 471 | 90 |
See accompanying notes.
204
Schedule of Investments
LargeCap S&P 500 Managed Volatility Index Account
December 31, 2018
COMMON STOCKS (continued) | Shares HeldValue (000’s) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Computers - 4.54% | Electric (continued) | ||||||||||
Accenture PLC - Class A | 5,657 | $ | 798 | FirstEnergy Corp | 4,310 | $ | 162 | ||||
Apple Inc | 39,997 | 6,309 | NextEra EnergyInc | 4,238 | 737 | ||||||
Cognizant Technology Solutions Corp | 5,136 | 326 | NRG EnergyInc | 2,574 | 102 | ||||||
DXC Technology Co | 2,485 | 132 | PG&E Corp(a) | 4,602 | 109 | ||||||
Fortinet Inc(a) | 1,284 | 90 | Pinnacle West Capital Corp | 993 | 85 | ||||||
Hewlett Packard Enterprise Co | 12,627 | 167 | PPL Corp | 6,389 | 181 | ||||||
HPInc | 14,039 | 287 | Public Service Enterprise GroupInc | 4,484 | 233 | ||||||
International Business Machines Corp | 8,063 | 917 | Sempra Energy | 2,428 | 263 | ||||||
NetApp Inc | 2,237 | 134 | Southern Co/The | 9,127 | 401 | ||||||
Seagate Technology PLC | 2,309 | 89 | WEC Energy GroupInc | 2,799 | 194 | ||||||
Western Digital Corp | 2,568 | 95 | Xcel EnergyInc | 4,560 | 225 | ||||||
$ | 9,344 | $ | 5,999 | ||||||||
Consumer Products - 0.36% | Electrical Components & Equipment- 0.23% | ||||||||||
Avery Dennison Corp | 772 | 69 | AMETEKInc | 2,059 | 139 | ||||||
Church & Dwight CoInc | 2,184 | 144 | Emerson Electric Co | 5,555 | 332 | ||||||
Clorox Co/The | 1,131 | 174 | $ | 471 | |||||||
Kimberly-Clark Corp | 3,072 | 350 | Electronics - 1.22% | ||||||||
$ | 737 | Agilent TechnologiesInc | 2,828 | 191 | |||||||
Cosmetics & Personal Care- 1.35% | Allegion PLC | 842 | 67 | ||||||||
Colgate-Palmolive Co | 7,694 | 458 | Amphenol Corp | 2,672 | 216 | ||||||
CotyInc | 4,000 | 26 | CorningInc | 7,103 | 215 | ||||||
Estee Lauder Cos Inc/The | 1,952 | 254 | FLIR SystemsInc | 1,226 | 53 | ||||||
Procter & Gamble Co/The | 22,104 | 2,032 | Fortive Corp | 2,609 | 177 | ||||||
$ | 2,770 | Garmin Ltd | 1,071 | 68 | |||||||
Distribution & Wholesale- 0.20% | Honeywell InternationalInc | 6,568 | 868 | ||||||||
Copart Inc(a) | 1,826 | 87 | Keysight TechnologiesInc(a) | 1,662 | 103 | ||||||
Fastenal Co | 2,546 | 133 | Mettler-Toledo International Inc(a) | 222 | 126 | ||||||
LKQ Corp(a) | 2,822 | 67 | PerkinElmer Inc | 986 | 77 | ||||||
WW GraingerInc | 404 | 114 | TE Connectivity Ltd | 3,045 | 230 | ||||||
$ | 401 | Waters Corp(a) | 673 | 127 | |||||||
Diversified Financial Services- 3.71% | $ | 2,518 | |||||||||
Affiliated Managers GroupInc | 469 | 46 | Engineering & Construction- 0.05% | ||||||||
Alliance Data Systems Corp | 417 | 63 | Fluor Corp | 1,247 | 40 | ||||||
American Express Co | 6,216 | 592 | Jacobs Engineering GroupInc | 1,060 | 62 | ||||||
Ameriprise Financial Inc | 1,238 | 129 | $ | 102 | |||||||
BlackRock Inc | 1,077 | 423 | Environmental Control - 0.24% | ||||||||
Capital One Financial Corp | 4,204 | 318 | Pentair PLC | 1,419 | 53 | ||||||
Cboe Global MarketsInc | 994 | 97 | Republic ServicesInc | 1,929 | 139 | ||||||
Charles Schwab Corp/The | 10,663 | 443 | Waste ManagementInc | 3,481 | 310 | ||||||
CME GroupInc | 3,173 | 597 | $ | 502 | |||||||
Discover Financial Services | 2,982 | 176 | Food - 1.17% | ||||||||
E*TRADE Financial Corp | 2,258 | 99 | Campbell Soup Co | 1,708 | 56 | ||||||
Franklin Resources Inc | 2,642 | 78 | ConagraBrands Inc | 4,307 | 92 | ||||||
Intercontinental ExchangeInc | 5,055 | 381 | General MillsInc | 5,289 | 206 | ||||||
Invesco Ltd | 3,648 | 61 | Hershey Co/The | 1,244 | 133 | ||||||
Jefferies Financial GroupInc | 2,495 | 43 | Hormel Foods Corp | 2,419 | 103 | ||||||
Mastercard Inc | 8,060 | 1,521 | JM Smucker Co/The | 1,009 | 94 | ||||||
Nasdaq Inc | 1,018 | 83 | Kellogg Co | 2,247 | 128 | ||||||
Raymond James FinancialInc | 1,146 | 85 | Kraft Heinz Co/The | 5,518 | 238 | ||||||
Synchrony Financial | 5,868 | 138 | Kroger Co/The | 7,080 | 195 | ||||||
T Rowe Price GroupInc | 2,136 | 197 | Lamb Weston HoldingsInc | 1,299 | 96 | ||||||
VisaInc | 15,593 | 2,057 | McCormick & Co Inc/MD | 1,079 | 150 | ||||||
$ | 7,627 | MondelezInternational Inc | 12,901 | 516 | |||||||
Electric - 2.92% | Sysco Corp | 4,242 | 266 | ||||||||
AES Corp/VA | 5,875 | 85 | Tyson FoodsInc | 2,617 | 140 | ||||||
Alliant Energy Corp | 2,093 | 88 | $ | 2,413 | |||||||
Ameren Corp | 2,167 | 141 | Forest Products & Paper- 0.07% | ||||||||
American Electric Power Co Inc | 4,374 | 327 | International Paper Co | 3,594 | 145 | ||||||
CenterPoint EnergyInc | 4,446 | 125 | Gas- 0.04% | ||||||||
CMS Energy Corp | 2,513 | 125 | NiSourceInc | 3,223 | 82 | ||||||
Consolidated Edison Inc | 2,762 | 211 | Hand & Machine Tools- 0.11% | ||||||||
Dominion EnergyInc | 6,666 | 476 | Snap-onInc | 496 | 72 | ||||||
DTE Energy Co | 1,614 | 178 | Stanley Black & DeckerInc | 1,341 | 161 | ||||||
Duke Energy Corp | 6,324 | 546 | $ | 233 | |||||||
Edison International | 2,890 | 164 | |||||||||
Entergy Corp | 1,607 | 138 | Healthcare - Products- 3.53% | ||||||||
EvergyInc | 2,339 | 133 | Abbott Laboratories | 15,583 | 1,127 | ||||||
EversourceEnergy | 2,811 | 183 | ABIOMEDInc(a) | 398 | 129 | ||||||
Exelon Corp | 8,579 | 387 | Align TechnologyInc(a) | 645 | 135 |
See accompanying notes.
205
Schedule of Investments
LargeCap S&P 500 Managed Volatility Index Account
December 31, 2018
COMMON STOCKS (continued) | Shares HeldValue (000’s) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Healthcare - Products (continued) | Internet - 8.03% | ||||||||||
Baxter International Inc | 4,390 | $ | 289 | AlphabetInc- A Shares(a) | 2,651 | $ | 2,770 | ||||
Becton Dickinson and Co | 2,379 | 536 | AlphabetInc- C Shares(a) | 2,729 | 2,826 | ||||||
Boston Scientific Corp(a) | 12,278 | 434 | Amazon.comInc(a) | 3,643 | 5,472 | ||||||
Cooper Cos Inc/The | 435 | 111 | Booking HoldingsInc(a) | 412 | 710 | ||||||
Danaher Corp | 5,472 | 564 | eBayInc(a) | 8,032 | 226 | ||||||
DENTSPLY SIRONAInc | 1,974 | 73 | Expedia GroupInc | 1,051 | 118 | ||||||
Edwards Lifesciences Corp(a) | 1,853 | 284 | F5 NetworksInc(a) | 538 | 87 | ||||||
Henry ScheinInc(a) | 1,353 | 106 | FacebookInc(a) | 21,315 | 2,794 | ||||||
HologicInc(a) | 2,392 | 98 | NetflixInc(a) | 3,868 | 1,035 | ||||||
IDEXX LaboratoriesInc(a) | 765 | 142 | Symantec Corp | 5,668 | 107 | ||||||
Intuitive SurgicalInc(a) | 1,012 | 485 | TripAdvisor Inc(a) | 907 | 49 | ||||||
Medtronic PLC | 11,916 | 1,084 | Twitter Inc(a) | 6,416 | 185 | ||||||
ResMed Inc | 1,264 | 144 | VeriSignInc(a) | 945 | 140 | ||||||
Stryker Corp | 2,754 | 432 | $ | 16,519 | |||||||
Thermo Fisher ScientificInc | 3,570 | 799 | Iron & Steel- 0.07% | ||||||||
Varian Medical SystemsInc(a) | 809 | 92 | Nucor Corp | 2,787 | 144 | ||||||
Zimmer Biomet HoldingsInc | 1,809 | 188 | Leisure Products & Services- 0.22% | ||||||||
$ | 7,252 | Carnival Corp | 3,554 | 175 | |||||||
Healthcare - Services- 2.05% | Harley-DavidsonInc | 1,446 | 49 | ||||||||
AnthemInc | 2,294 | 602 | Norwegian Cruise Line Holdings Ltd(a) | 1,951 | 83 | ||||||
Centene Corp(a) | 1,821 | 210 | Royal Caribbean Cruises Ltd | 1,521 | 149 | ||||||
DaVitaInc(a) | 1,122 | 58 | $ | 456 | |||||||
HCA HealthcareInc | 2,383 | 297 | Lodging - 0.32% | ||||||||
HumanaInc | 1,216 | 348 | Hilton Worldwide HoldingsInc | 2,633 | 189 | ||||||
IQVIA HoldingsInc(a) | 1,408 | 164 | Marriott International Inc/MD | 2,514 | 273 | ||||||
Laboratory Corp of America Holdings(a) | 896 | 113 | MGM Resorts International | 4,445 | 108 | ||||||
Quest DiagnosticsInc | 1,207 | 101 | Wynn Resorts Ltd | 867 | 86 | ||||||
UnitedHealth GroupInc | 8,534 | 2,126 | $ | 656 | |||||||
Universal Health ServicesInc | 758 | 88 | Machinery - Construction & Mining- 0.32% | ||||||||
WellCareHealth PlansInc(a) | 442 | 104 | Caterpillar Inc | 5,237 | 665 | ||||||
$ | 4,211 | ||||||||||
Home Builders- 0.13% | Machinery - Diversified- 0.61% | ||||||||||
Cummins Inc | 1,312 | 175 | |||||||||
DR HortonInc | 3,038 | 105 | Deere & Co | 2,853 | 426 | ||||||
Lennar Corp - A Shares | 2,594 | 101 | Dover Corp | 1,300 | 92 | ||||||
PulteGroupInc | 2,294 | 60 | Flowserve Corp | 1,160 | 44 | ||||||
$ | 266 | Rockwell Automation Inc | 1,071 | 161 | |||||||
Home Furnishings- 0.05% | Roper TechnologiesInc | 916 | 244 | ||||||||
Leggett & PlattInc | 1,156 | 41 | XylemInc/NY | 1,594 | 107 | ||||||
Whirlpool Corp | 567 | 61 | $ | 1,249 | |||||||
$ | 102 | Media - 2.11% | |||||||||
Housewares- 0.03% | CBS Corp | 2,990 | 131 | ||||||||
Newell Brands Inc | 3,812 | 71 | Charter CommunicationsInc(a) | 1,564 | 446 | ||||||
Insurance - 3.88% | Comcast Corp - Class A | 40,282 | 1,372 | ||||||||
AflacInc | 6,755 | 308 | DiscoveryInc- A Shares(a) | 1,390 | 34 | ||||||
Allstate Corp/The | 3,057 | 253 | DiscoveryInc- C Shares(a) | 3,197 | 74 | ||||||
American International GroupInc | 7,849 | 309 | DISH Network Corp(a) | 2,034 | 51 | ||||||
Aon PLC | 2,138 | 311 | News Corp - A Shares | 3,417 | 39 | ||||||
Arthur J Gallagher & Co | 1,630 | 120 | News Corp - B Shares | 1,093 | 13 | ||||||
Assurant Inc | 464 | 41 | Twenty-First Century FoxInc- A Shares | 9,377 | 451 | ||||||
Berkshire HathawayInc - Class B(a) | 17,259 | 3,524 | Twenty-First Century FoxInc- B Shares | 4,321 | 206 | ||||||
BrighthouseFinancial Inc(a) | 1,053 | 32 | ViacomInc- B Shares | 3,135 | 80 | ||||||
Chubb Ltd | 4,090 | 528 | Walt Disney Co/The | 13,207 | 1,448 | ||||||
Cincinnati Financial Corp | 1,343 | 104 | $ | 4,345 | |||||||
Everest Re Group Ltd | 361 | 79 | Mining - 0.14% | ||||||||
Hartford Financial Services GroupInc/The | 3,183 | 141 | Freeport-McMoRan Inc | 12,857 | 132 | ||||||
Lincoln National Corp | 1,897 | 97 | Newmont Mining Corp | 4,725 | 164 | ||||||
Loews Corp | 2,456 | 112 | $ | 296 | |||||||
Marsh & McLennan CosInc | 4,468 | 356 | Miscellaneous Manufacturers - 1.31% | ||||||||
MetLife Inc | 8,757 | 360 | 3M Co | 5,167 | 985 | ||||||
Principal Financial GroupInc | 2,337 | 103 | AO Smith Corp | 1,276 | 54 | ||||||
Progressive Corp/The | 5,173 | 312 | Eaton Corp PLC | 3,845 | 264 | ||||||
Prudential Financial Inc | 3,666 | 299 | General Electric Co | 77,172 | 584 | ||||||
Torchmark Corp | 911 | 68 | Illinois Tool Works Inc | 2,709 | 343 | ||||||
Travelers Cos Inc/The | 2,352 | 282 | Ingersoll-Rand PLC | 2,179 | 199 | ||||||
Unum Group | 1,940 | 57 | Parker-Hannifin Corp | 1,173 | 175 | ||||||
Willis Towers Watson PLC | 1,153 | 175 | Textron Inc | 2,157 | 99 | ||||||
$ | 7,971 | $ | 2,703 |
See accompanying notes.
206
Schedule of Investments | |||||||||||
LargeCap S&P 500 Managed Volatility Index Account | |||||||||||
December 31, 2018 | |||||||||||
COMMON STOCKS (continued) | Shares HeldValue (000’s) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Office & Business Equipment- 0.02% | REITs (continued) | ||||||||||
Xerox Corp | 1,841 | $ | 36 | Boston Properties Inc | 1,369 | $ | 154 | ||||
Oil & Gas- 4.04% | Crown Castle International Corp | 3,680 | 400 | ||||||||
Anadarko Petroleum Corp | 4,475 | 196 | Digital Realty TrustInc | 1,830 | 195 | ||||||
Apache Corp | 3,369 | 88 | Duke Realty Corp | 3,179 | 82 | ||||||
Cabot Oil & Gas Corp | 3,828 | 86 | Equinix Inc | 712 | 251 | ||||||
Chevron Corp | 16,953 | 1,844 | Equity Residential | 3,269 | 216 | ||||||
Cimarex Energy Co | 847 | 52 | Essex Property TrustInc | 585 | 143 | ||||||
Concho ResourcesInc(a) | 1,776 | 183 | Extra Space StorageInc | 1,122 | 102 | ||||||
ConocoPhillips | 10,215 | 637 | Federal Realty Investment Trust | 655 | 77 | ||||||
Devon Energy Corp | 4,155 | 94 | HCPInc | 4,236 | 118 | ||||||
Diamondback EnergyInc | 1,368 | 127 | Host Hotels & ResortsInc | 6,584 | 110 | ||||||
EOG ResourcesInc | 5,144 | 449 | Iron Mountain Inc | 2,538 | 82 | ||||||
Exxon Mobil Corp(b) | 37,563 | 2,561 | Kimco Realty Corp | 3,738 | 55 | ||||||
Helmerich & PayneInc | 966 | 46 | Macerich Co/The | 935 | 41 | ||||||
Hess Corp | 2,210 | 90 | Mid-America Apartment Communities Inc | 1,009 | 97 | ||||||
HollyFrontier Corp | 1,416 | 72 | PrologisInc | 5,585 | 328 | ||||||
Marathon Oil Corp | 7,377 | 106 | Public Storage | 1,329 | 269 | ||||||
Marathon Petroleum Corp | 6,129 | 362 | Realty Income Corp | 2,617 | 165 | ||||||
Newfield Exploration Co(a) | 1,777 | 26 | Regency Centers Corp | 1,503 | 88 | ||||||
Noble EnergyInc | 4,258 | 80 | SBA Communications Corp(a) | 1,006 | 163 | ||||||
Occidental Petroleum Corp | 6,700 | 411 | Simon Property GroupInc | 2,743 | 461 | ||||||
Phillips 66 | 3,765 | 324 | SL Green Realty Corp | 758 | 60 | ||||||
Pioneer Natural Resources Co | 1,512 | 199 | UDRInc | 2,444 | 97 | ||||||
Valero Energy Corp | 3,766 | 282 | VentasInc | 3,162 | 185 | ||||||
$ | 8,315 | Vornado Realty Trust | 1,536 | 95 | |||||||
Oil & Gas Services- 0.44% | Welltower Inc | 3,332 | 231 | ||||||||
Baker Hughes a GE Co | 4,554 | 98 | Weyerhaeuser Co | 6,648 | 145 | ||||||
Halliburton Co | 7,770 | 207 | $ | 5,412 | |||||||
National Oilwell VarcoInc | 3,401 | 87 | Retail - 5.04% | ||||||||
Schlumberger Ltd | 12,286 | 443 | Advance Auto Parts Inc | 647 | 102 | ||||||
TechnipFMCPLC | 3,775 | 74 | AutoZone Inc(a) | 224 | 188 | ||||||
$ | 909 | Best Buy CoInc | 2,078 | 110 | |||||||
Packaging & Containers- 0.17% | CarMax Inc(a) | 1,551 | 97 | ||||||||
Ball Corp | 3,011 | 138 | Chipotle Mexican GrillInc(a) | 217 | 94 | ||||||
Packaging Corp of America | 838 | 70 | Costco Wholesale Corp | 3,887 | 792 | ||||||
Sealed Air Corp | 1,394 | 49 | Darden Restaurants Inc | 1,100 | 110 | ||||||
Westrock Co | 2,252 | 85 | Dollar General Corp | 2,334 | 252 | ||||||
$ | 342 | Dollar Tree Inc(a) | 2,110 | 191 | |||||||
Pharmaceuticals - 6.22% | Foot Locker Inc | 1,020 | 54 | ||||||||
AbbVieInc | 13,347 | 1,230 | GapInc/The | 1,897 | 49 | ||||||
Allergan PLC | 2,814 | 376 | Genuine Parts Co | 1,302 | 125 | ||||||
AmerisourceBergen Corp | 1,393 | 104 | Home DepotInc/The | 10,022 | 1,722 | ||||||
Bristol-Myers Squibb Co | 14,481 | 753 | Kohl's Corp | 1,467 | 97 | ||||||
Cardinal HealthInc | 2,644 | 118 | L Brands Inc | 2,025 | 52 | ||||||
Cigna Corp | 3,356 | 637 | Lowe's CosInc | 7,125 | 658 | ||||||
CVS Health Corp | 11,474 | 752 | Macy'sInc | 2,727 | 81 | ||||||
Eli Lilly & Co | 8,366 | 968 | McDonald's Corp | 6,840 | 1,215 | ||||||
Johnson & Johnson | 23,795 | 3,071 | Nordstrom Inc | 1,011 | 47 | ||||||
McKesson Corp | 1,734 | 192 | O'Reilly AutomotiveInc(a) | 711 | 245 | ||||||
Merck & Co Inc | 23,073 | 1,763 | Ross StoresInc | 3,314 | 276 | ||||||
Mylan NV(a) | 4,575 | 125 | Starbucks Corp | 11,006 | 709 | ||||||
NektarTherapeutics(a) | 1,535 | 50 | TapestryInc | 2,571 | 87 | ||||||
Perrigo Co PLC | 1,110 | 43 | Target Corp | 4,632 | 306 | ||||||
PfizerInc | 51,288 | 2,239 | Tiffany & Co | 962 | 77 | ||||||
Zoetis Inc | 4,262 | 365 | TJX CosInc/The | 10,981 | 491 | ||||||
$ | 12,786 | Tractor Supply Co | 1,082 | 90 | |||||||
Ulta BeautyInc(a) | 501 | 123 | |||||||||
Pipelines - 0.34% | Walgreens Boots AllianceInc | 7,135 | 487 | ||||||||
Kinder MorganInc/DE | 16,840 | 259 | Walmart Inc | 12,631 | 1,177 | ||||||
ONEOKInc | 3,649 | 197 | Yum! Brands Inc | 2,773 | 255 | ||||||
Williams Cos Inc/The | 10,740 | 237 | $ | 10,359 | |||||||
$ | 693 | Savings & Loans- 0.02% | |||||||||
Real Estate - 0.06% | People's United FinancialInc | 3,348 | 48 | ||||||||
CBRE GroupInc(a) | 2,812 | 113 | Semiconductors - 3.40% | ||||||||
REITs - 2.63% | Advanced Micro Devices Inc(a) | 7,802 | 144 | ||||||||
Alexandria Real Estate Equities Inc | 953 | 110 | Analog DevicesInc | 3,285 | 282 | ||||||
American Tower Corp | 3,906 | 618 | Applied Materials Inc | 8,721 | 286 | ||||||
Apartment Investment & Management Co | 1,383 | 61 | Broadcom Inc | 3,669 | 933 | ||||||
AvalonBay CommunitiesInc | 1,224 | 213 | Intel Corp | 40,495 | 1,901 |
See accompanying notes.
207
Schedule of Investments
LargeCap S&P 500 Managed Volatility Index Account
December 31, 2018
COMMON STOCKS (continued) | Shares HeldValue (000’s) | INVESTMENT COMPANIES - 8.65% | Shares HeldValue (000's) | |||||||||
Semiconductors (continued) | Exchange-Traded Funds - 0.39% | |||||||||||
IPG Photonics Corp(a) | 319 | $ | 36 | iShares Core S&P 500 ETF | 3,138 | $ | 790 | |||||
KLA-Tencor Corp | 1,360 | 122 | Money Market Funds- 8.26% | |||||||||
Lam Research Corp | 1,379 | 188 | Principal Government Money Market Fund | 16,994,171 | 16,994 | |||||||
Maxim Integrated ProductsInc | 2,459 | 125 | 2.11%(c),(d) | |||||||||
Microchip TechnologyInc | 2,098 | 151 | TOTAL INVESTMENT COMPANIES | $ | 17,784 | |||||||
Micron TechnologyInc(a) | 9,939 | 315 | TOTAL PURCHASED OPTIONS - 0.67% | $ | 1,393 | |||||||
NVIDIA Corp | 5,411 | 722 | Total Investments | $ | 205,849 | |||||||
QorvoInc(a) | 1,110 | 67 | Other Assets and Liabilities - (0.09)% | (194 | ) | |||||||
QUALCOMMInc | 10,754 | 612 | TOTAL NET ASSETS - 100.00% | $ | 205,655 | |||||||
Skyworks SolutionsInc | 1,577 | 106 | ||||||||||
Texas Instruments Inc | 8,523 | 805 | ||||||||||
XilinxInc | 2,245 | 191 | (a) | Non-income producing security | ||||||||
$ | 6,986 | (b) | Security or a portion of the security was pledged to cover margin requirements | |||||||||
Shipbuilding - 0.04% | for futures contracts. At the end of the period, the value of these securities | |||||||||||
Huntington Ingalls IndustriesInc | 382 | 73 | totaled $1,362 or 0.66% of net assets. | |||||||||
(c) | Affiliated Security. Security is either an affiliate (and registered under the | |||||||||||
Software - 6.43% | Investment Company Act of 1940) or an affiliate as defined by the Investment | |||||||||||
Activision BlizzardInc | 6,769 | 315 | Company Act of 1940 (controls 5.0% or more of the outstanding voting | |||||||||
AdobeInc(a) | 4,329 | 979 | shares of the security). Please see affiliated sub-schedule for transactional | |||||||||
Akamai TechnologiesInc(a) | 1,447 | 88 | information. | |||||||||
ANSYSInc(a) | 744 | 106 | (d) | Current yield shown is as of period end. | ||||||||
Autodesk Inc(a) | 1,943 | 250 | ||||||||||
Broadridge Financial SolutionsInc | 1,035 | 100 | ||||||||||
Cadence Design SystemsInc(a) | 2,502 | 109 | Portfolio Summary (unaudited) | |||||||||
Cerner Corp(a) | 2,923 | 153 | Sector | Percent | ||||||||
Citrix SystemsInc | 1,137 | 117 | Consumer, Non-cyclical | 21.17 | % | |||||||
Electronic Arts Inc(a) | 2,681 | 212 | Financial | 16.26 | % | |||||||
Fidelity National Information ServicesInc | 2,905 | 298 | Technology | 14.39 | % | |||||||
Fiserv Inc(a) | 3,536 | 260 | Communications | 13.22 | % | |||||||
Intuit Inc | 2,301 | 453 | Investment Companies | 8.65 | % | |||||||
Jack Henry & AssociatesInc | 686 | 87 | Industrial | 8.23 | % | |||||||
Microsoft Corp(b) | 68,573 | 6,965 | Consumer, Cyclical | 7.64 | % | |||||||
MSCIInc | 783 | 115 | Energy | 4.82 | % | |||||||
Oracle Corp | 22,614 | 1,021 | Utilities | 3.03 | % | |||||||
PaychexInc | 2,835 | 185 | Basic Materials | 2.01 | % | |||||||
Red HatInc(a) | 1,567 | 275 | Purchased Options | 0.67 | % | |||||||
salesforce.comInc(a) | 6,786 | 929 | Other Assets and Liabilities | (0.09 | )% | |||||||
SynopsysInc(a) | 1,324 | 112 | TOTAL NET ASSETS | 100.00 | % | |||||||
Take-Two Interactive SoftwareInc(a) | 1,010 | 104 | ||||||||||
$ | 13,233 | |||||||||||
Telecommunications - 2.97% | ||||||||||||
Arista Networks Inc(a) | 461 | 97 | ||||||||||
AT&T Inc | 64,572 | 1,843 | ||||||||||
CenturyLinkInc | 8,436 | 128 | ||||||||||
Cisco SystemsInc | 39,890 | 1,728 | ||||||||||
Juniper NetworksInc | 3,062 | 82 | ||||||||||
Motorola SolutionsInc | 1,450 | 167 | ||||||||||
Verizon CommunicationsInc | 36,659 | 2,061 | ||||||||||
$ | 6,106 | |||||||||||
Textiles - 0.03% | ||||||||||||
Mohawk IndustriesInc(a) | 561 | 66 | ||||||||||
Toys, Games & Hobbies- 0.06% | ||||||||||||
HasbroInc | 1,031 | 84 | ||||||||||
Mattel Inc(a) | 3,063 | 30 | ||||||||||
$ | 114 | |||||||||||
Transportation - 1.47% | ||||||||||||
CH Robinson WorldwideInc | 1,221 | 103 | ||||||||||
CSX Corp | 7,119 | 442 | ||||||||||
Expeditors International of WashingtonInc | 1,533 | 104 | ||||||||||
FedEx Corp | 2,150 | 347 | ||||||||||
JB Hunt Transport ServicesInc | 775 | 72 | ||||||||||
Kansas City Southern | 902 | 86 | ||||||||||
Norfolk Southern Corp | 2,418 | 362 | ||||||||||
Union Pacific Corp | 6,537 | 904 | ||||||||||
United Parcel ServiceInc | 6,168 | 601 | ||||||||||
$ | 3,021 | |||||||||||
Water - 0.07% | ||||||||||||
American Water Works Co Inc | 1,603 | 146 | ||||||||||
TOTAL COMMON STOCKS | $ | 186,672 |
See accompanying notes.
208
Schedule of Investments | ||||||||||||||||||||
LargeCap S&P 500 Managed Volatility Index Account | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | ||||||||||||||||
Value | Cost | Proceeds | Value | |||||||||||||||||
Principal Government Money Market Fund 2.11% | $ | 13,672 | $ | 65,544 | $ | 62,222 | $ | 16,994 | ||||||||||||
$ | 13,672 | $ | 65,544 | $ | 62,222 | $ | 16,994 | |||||||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | ||||||||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | |||||||||||||||||
Principal Government Money Market Fund 2.11% | $ | 233 | $ | — $ | — | $ | — | |||||||||||||
$ | 233 | $ | — $ | — | $ | — | ||||||||||||||
Amounts in thousands | ||||||||||||||||||||
Options | ||||||||||||||||||||
Upfront | Unrealized | |||||||||||||||||||
Contracts/ | Payments/ | Appreciation/ | ||||||||||||||||||
Purchased Options Outstanding | Counterparty | Shares Notional Amount Exercise Price | Expiration Date | (Premiums) | Fair Value (Depreciation) | |||||||||||||||
Call - S&P 500 Index | N/A | 100 | $ | 10 | $ | 2,650.00 | 01/22/2019 | $ | 219 | $ | 47 | $ | (172 | ) | ||||||
Call - S&P 500 Index | N/A | 50 | $ | 5 | $ | 2,700.00 | 01/22/2019 | 195 | 6 | (189 | ) | |||||||||
Put - S&P 500 Index | N/A | 200 | $ | 20 | $ | 2,420.00 | 01/22/2019 | 976 | 515 | (461 | ) | |||||||||
Put - S&P 500 Index | N/A | 50 | $ | 5 | $ | 2,580.00 | 01/22/2019 | 259 | 460 | 201 | ||||||||||
Put - S&P 500 Index | N/A | 50 | $ | 5 | $ | 2,550.00 | 01/22/2019 | 278 | 365 | 87 | ||||||||||
Total | $ | 1,927 | $ | 1,393 | $ | (534 | ) | |||||||||||||
Upfront | Unrealized | |||||||||||||||||||
Contracts/ | Payments/ | Appreciation/ | ||||||||||||||||||
Written Options Outstanding | Counterparty | Shares Notional Amount Exercise Price | Expiration Date | (Premiums) | Fair Value (Depreciation) | |||||||||||||||
Call - S&P 500 Index | N/A | 100 | $ | 10 | $ | 2,660.00 | 01/22/2019 | $ | (192 | )$ | (36 | )$ | 156 | |||||||
Call - S&P 500 Index | N/A | 50 | $ | 5 | $ | 2,720.00 | 01/22/2019 | (154 | ) | (3 | ) | 151 | ||||||||
Put - S&P 500 Index | N/A | 50 | $ | 5 | $ | 2,530.00 | 01/22/2019 | (241 | ) | (311 | ) | (70 | ) | |||||||
Put - S&P 500 Index | N/A | 50 | $ | 5 | $ | 2,560.00 | 01/22/2019 | (228 | ) | (394 | ) | (166 | ) | |||||||
Put - S&P 500 Index | N/A | 200 | $ | 20 | $ | 2,380.00 | 01/22/2019 | (741 | ) | (371 | ) | 370 | ||||||||
Total | $ | (1,556 | )$ | (1,115 | )$ | 441 | ||||||||||||||
Amounts in thousands except contracts/shares. | ||||||||||||||||||||
Futures Contracts | ||||||||||||||||||||
Description and Expiration Date | Type | Contracts | Notional Amount Value and Unrealized Appreciation/(Depreciation) | |||||||||||||||||
S&P 500Emini; March 2019 | Long | 47 | $ | 5,887 | $ | (192 | ) | |||||||||||||
Total | $ | (192 | ) | |||||||||||||||||
Amounts in thousands except contracts. |
See accompanying notes.
209
Schedule of Investments MidCap Account December 31, 2018
COMMON STOCKS - 99.52% | Shares HeldValue (000's) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | |||||||
Aerospace & Defense- 4.60% | Machinery - Diversified- 1.72% | |||||||||
HEICO Corp - Class A | 12,485 | $ | 786 | CognexCorp | 4,776 | $ | 185 | |||
TransDigm GroupInc(a) | 63,991 | 21,761 | Roper TechnologiesInc | 30,870 | 8,227 | |||||
$ | 22,547 | $ | 8,412 | |||||||
Banks - 2.60% | Media - 4.75% | |||||||||
First Republic Bank/CA | 111,460 | 9,686 | Liberty Broadband Corp - A Shares(a) | 24,858 | 1,785 | |||||
M&T Bank Corp | 21,432 | 3,067 | Liberty Broadband Corp - C Shares(a) | 49,146 | 3,540 | |||||
$ | 12,753 | Liberty Global PLC - A Shares(a) | 17,556 | 375 | ||||||
Beverages - 0.52% | Liberty Global PLC - C Shares(a) | 226,412 | 4,673 | |||||||
Brown-Forman Corp - B Shares | 53,580 | 2,549 | Liberty Media Corp-Liberty Braves - A Shares(a) | 6,136 | 153 | |||||
Building Materials - 3.69% | Liberty Media Corp-Liberty Braves - C Shares(a) | 22,134 | 551 | |||||||
Martin Marietta Materials Inc | 46,618 | 8,012 | Liberty Media Corp-Liberty Formula One - A | 20,688 | 615 | |||||
Summit MaterialsInc(a) | 115,953 | 1,438 | Shares(a) | |||||||
Vulcan Materials Co | 87,365 | 8,632 | Liberty Media Corp-Liberty Formula One - C | 182,853 | 5,614 | |||||
$ | 18,082 | Shares(a) | ||||||||
Chemicals - 1.24% | Liberty Media Corp-Liberty SiriusXM - A Shares | 39,220 | 1,443 | |||||||
(a) | ||||||||||
Air Products & ChemicalsInc | 38,065 | 6,091 | Liberty Media Corp-Liberty SiriusXM - C Shares | 122,236 | 4,520 | |||||
Commercial Services - 11.63% | (a) | |||||||||
AMERCO | 11,238 | 3,687 | $ | 23,269 | ||||||
GartnerInc(a) | 118,870 | 15,197 | ||||||||
IHSMarkit Ltd(a) | 195,372 | 9,372 | Miscellaneous Manufacturers - 0.88% | |||||||
Moody's Corp | 33,872 | 4,744 | Colfax Corp(a) | 207,274 | 4,332 | |||||
S&P GlobalInc | 27,451 | 4,665 | Pharmaceuticals - 0.04% | |||||||
TransUnion | 158,069 | 8,978 | Elanco Animal HealthInc(a) | 6,823 | 215 | |||||
Verisk AnalyticsInc(a) | 95,076 | 10,367 | Private Equity- 7.43% | |||||||
$ | 57,010 | Brookfield Asset ManagementInc | 541,865 | 20,780 | ||||||
Distribution & Wholesale- 3.65% | Kennedy-Wilson HoldingsInc | 226,229 | 4,111 | |||||||
Copart Inc(a) | 201,296 | 9,618 | KKR & CoInc | 290,780 | 5,708 | |||||
Fastenal Co | 56,288 | 2,943 | Onex Corp | 107,062 | 5,832 | |||||
HD Supply HoldingsInc(a) | 63,426 | 2,380 | $ | 36,431 | ||||||
KAR Auction ServicesInc | 61,542 | 2,937 | Real Estate - 3.50% | |||||||
$ | 17,878 | Brookfield Business Partners LP | 17,461 | 531 | ||||||
Electric - 1.97% | Brookfield Property Partners LP | 98,617 | 1,590 | |||||||
Brookfield Infrastructure Partners LP | 222,049 | 7,667 | CBRE GroupInc(a) | 245,059 | 9,812 | |||||
Brookfield Renewable Partners LP | 76,562 | 1,983 | Howard Hughes Corp/The(a) | 53,407 | 5,213 | |||||
$ | 9,650 | $ | 17,146 | |||||||
Electronics - 1.41% | REITs - 5.22% | |||||||||
Mettler-Toledo International Inc(a) | 12,226 | 6,915 | Equinix Inc | 13,128 | 4,628 | |||||
Entertainment - 2.39% | SBA Communications Corp(a) | 129,452 | 20,957 | |||||||
Live Nation Entertainment Inc(a) | 116,140 | 5,720 | $ | 25,585 | ||||||
Vail ResortsInc | 28,350 | 5,977 | Retail - 10.94% | |||||||
$ | 11,697 | CarMax Inc(a) | 234,145 | 14,688 | ||||||
Healthcare - Products- 0.63% | Dollar General Corp | 54,138 | 5,851 | |||||||
IDEXX LaboratoriesInc(a) | 16,525 | 3,074 | O'Reilly AutomotiveInc(a) | 54,240 | 18,677 | |||||
Restaurant Brands International Inc | 263,599 | 13,786 | ||||||||
Home Builders- 1.35% | Ross StoresInc | 7,108 | 591 | |||||||
Lennar Corp - A Shares | 101,516 | 3,975 | $ | 53,593 | ||||||
Lennar Corp - B Shares | 1,475 | 46 | ||||||||
NVRInc(a) | 1,060 | 2,583 | Semiconductors - 1.46% | |||||||
$ | 6,604 | Microchip TechnologyInc | 99,441 | 7,152 | ||||||
Insurance - 10.79% | Software - 8.02% | |||||||||
Aon PLC | 33,747 | 4,905 | ANSYSInc(a) | 55,411 | 7,920 | |||||
Arch Capital Group Ltd(a) | 283,059 | 7,563 | Autodesk Inc(a) | 54,691 | 7,034 | |||||
Brown & Brown Inc | 250,786 | 6,912 | Black KnightInc(a) | 230,240 | 10,375 | |||||
Fidelity National FinancialInc | 327,407 | 10,294 | CDK GlobalInc | 59,832 | 2,865 | |||||
Markel Corp(a) | 16,945 | 17,590 | Guidewire SoftwareInc(a) | 50,284 | 4,034 | |||||
Progressive Corp/The | 92,101 | 5,556 | MSCIInc | 23,814 | 3,511 | |||||
TrisuraGroup Ltd(a) | 4,276 | 82 | RealPageInc(a) | 73,746 | 3,554 | |||||
$ | 52,902 | $ | 39,293 | |||||||
Internet - 4.12% | Telecommunications - 1.57% | |||||||||
Liberty Expedia HoldingsInc(a) | 37,692 | 1,474 | EchoStar Corp(a) | 22,033 | 809 | |||||
ShopifyInc(a) | 9,464 | 1,310 | GCI LibertyInc(a) | 87,253 | 3,591 | |||||
VeriSignInc(a) | 78,835 | 11,691 | Motorola SolutionsInc | 28,509 | 3,280 | |||||
Wix.com Ltd(a) | 63,002 | 5,692 | $ | 7,680 | ||||||
$ | 20,167 | Textiles - 0.46% | ||||||||
Lodging - 2.94% | Mohawk IndustriesInc(a) | 19,338 | 2,262 | |||||||
Hilton Worldwide HoldingsInc | 139,161 | 9,992 | TOTAL COMMON STOCKS | $ | 487,713 | |||||
Hyatt Hotels Corp | 65,564 | 4,432 | ||||||||
$ | 14,424 |
See accompanying notes.
210
Schedule of Investments MidCap Account December 31, 2018
INVESTMENT COMPANIES - 1.01% | Shares HeldValue (000's) | ||||
Money Market Funds- 1.01% | |||||
Principal Government Money Market Fund | 4,942,351 | $ | 4,942 | ||
2.11%(b),(c) | |||||
TOTAL INVESTMENT COMPANIES | $ | 4,942 | |||
Total Investments | $ | 492,655 | |||
Other Assets and Liabilities - (0.53)% | (2,580 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 490,075 |
(a) | Non-income producing security |
(b) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. | |
(c) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Sector | Percent | ||
Financial | 29.54 | % | |
Consumer, Cyclical | 21.73 | % | |
Consumer, Non-cyclical | 12.82 | % | |
Industrial | 12.30 | % | |
Communications | 10.44 | % | |
Technology | 9.48 | % | |
Utilities | 1.97 | % | |
Basic Materials | 1.24 | % | |
Investment Companies | 1.01 | % | |
Other Assets and Liabilities | (0.53 | )% | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 1,423 | $ | 54,777 | $ | 51,258 | $ | 4,942 | |||
$ | 1,423 | $ | 54,777 | $ | 51,258 | $ | 4,942 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 31 | $ | — | $ | — | $ | — | |||
$ | 31 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
211
Schedule of Investments Multi-Asset Income Account December 31, 2018
INVESTMENT COMPANIES - 100.62% | Shares Held | Value | |||
Principal Funds, Inc. Class R-6 - 78.91% | |||||
Global Diversified Income Fund(a) | 13,459 | $ | 171,467 | ||
Global Real Estate Securities Fund(a) | 2,725 | 24,140 | |||
International Fund I(a) | 1,757 | 21,202 | |||
Preferred Securities Fund(a) | 6,187 | 58,094 | |||
Real Estate Debt Income Fund(a) | 2,969 | 27,821 | |||
$ | 302,724 | ||||
Principal Funds, Inc. Institutional Class - 21.71% | |||||
Equity Income Fund(a) | 895 | 24,829 | |||
High Yield Fund I(a) | 6,462 | 58,411 | |||
$ | 83,240 | ||||
TOTAL INVESTMENT COMPANIES | $ | 385,964 | |||
Total Investments | $ | 385,964 | |||
Other Assets and Liabilities - (0.62)% | (2,356 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 383,608 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Specialty Funds | 44.70 | % | |
Fixed Income Funds | 37.62 | % | |
International Equity Funds | 11.82 | % | |
Domestic Equity Funds | 6.48 | % | |
Other Assets and Liabilities | (0.62 | )% | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Equity Income Fund | $ | 17,588 | $ | 14,112 | $ | 3,656 | $ | 24,829 | |||||
Global Diversified Income Fund | 118,272 | 95,434 | 26,222 | 171,467 | |||||||||
Global Real Estate Securities Fund | 16,575 | 12,810 | 3,539 | 24,140 | |||||||||
High Yield Fund | 39,385 | 17,571 | 55,769 | — | |||||||||
High Yield Fund I | — | 67,778 | 5,436 | 58,411 | |||||||||
International Fund I | 18,280 | 14,371 | 3,773 | 21,202 | |||||||||
Preferred Securities Fund | 39,532 | 32,708 | 8,856 | 58,094 | |||||||||
Real Estate Debt Income Fund | 17,458 | 14,826 | 4,127 | 27,821 | |||||||||
$ | 267,090 | $ | 269,610 | $ | 111,378 | $ | 385,964 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Equity Income Fund | $ | 754 | $ | 7 | $ | 1,024 | $ | (3,222 | ) | ||||
Global Diversified Income Fund | 7,086 | 2 | — | (16,019 | ) | ||||||||
Global Real Estate Securities Fund | 704 | 6 | 170 | (1,712 | ) | ||||||||
High Yield Fund | 1,197 | (99 | ) | — | (1,088 | ) | |||||||
High Yield Fund I | 1,915 | (22 | ) | — | (3,909 | ) | |||||||
International Fund I | 569 | (18 | ) | 1,071 | (7,658 | ) | |||||||
Preferred Securities Fund | 2,868 | (19 | ) | — | (5,271 | ) | |||||||
Real Estate Debt Income Fund | 900 | (2 | ) | — | (334 | ) | |||||||
$ | 15,993 | $ | (145 | ) $ | 2,265 | $ | (39,213 | ) | |||||
Amounts shown are in dollars and not rounded to the thousands. |
See accompanying notes.
212
Schedule of Investments | ||||||||||
Principal Capital Appreciation Account | ||||||||||
December 31, 2018 | ||||||||||
COMMON STOCKS - 97.12% | Shares HeldValue (000's) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | |||||||
Aerospace & Defense- 2.55% | Healthcare - Products- 6.06% | |||||||||
Boeing Co/The | 2,723 | $ | 878 | Abbott Laboratories | 18,748 | $ | 1,356 | |||
Northrop Grumman Corp | 7,000 | 1,714 | Becton Dickinson and Co | 6,890 | 1,552 | |||||
Teledyne TechnologiesInc(a) | 4,387 | 909 | Edwards Lifesciences Corp(a) | 10,568 | 1,619 | |||||
$ | 3,501 | Medtronic PLC | 18,493 | 1,682 | ||||||
Airlines - 1.49% | Thermo Fisher ScientificInc | 7,955 | 1,780 | |||||||
Alaska Air GroupInc | 14,875 | 905 | Varian Medical SystemsInc(a) | 2,903 | 329 | |||||
Delta Air Lines Inc | 22,905 | 1,143 | $ | 8,318 | ||||||
$ | 2,048 | Healthcare - Services- 1.98% | ||||||||
Apparel - 1.54% | UnitedHealth GroupInc | 7,025 | 1,750 | |||||||
DeckersOutdoor Corp(a) | 10,015 | 1,281 | Universal Health ServicesInc | 8,363 | 975 | |||||
NIKEInc | 11,312 | 839 | $ | 2,725 | ||||||
$ | 2,120 | Home Builders- 0.69% | ||||||||
Automobile Manufacturers - 0.52% | Thor IndustriesInc | 18,135 | 943 | |||||||
PACCAR Inc | 12,474 | 713 | Insurance - 1.96% | |||||||
Automobile Parts & Equipment- 0.45% | Chubb Ltd | 9,914 | 1,280 | |||||||
Autoliv Inc | 8,864 | 622 | Fidelity National FinancialInc | 44,776 | 1,408 | |||||
Banks - 6.77% | $ | 2,688 | ||||||||
East West Bancorp Inc | 21,086 | 918 | Internet - 7.66% | |||||||
Goldman Sachs GroupInc/The | 1,760 | 294 | Alibaba Group Holding Ltd ADR(a) | 7,367 | 1,010 | |||||
JPMorgan Chase & Co | 50,598 | 4,939 | AlphabetInc- A Shares(a) | 3,049 | 3,186 | |||||
PNC Financial Services GroupInc/The | 16,197 | 1,894 | AlphabetInc- C Shares(a) | 1,237 | 1,281 | |||||
US Bancorp | 27,447 | 1,254 | Amazon.comInc(a) | 1,701 | 2,555 | |||||
$ | 9,299 | Booking HoldingsInc(a) | 469 | 808 | ||||||
Beverages - 2.48% | FacebookInc(a) | 8,055 | 1,056 | |||||||
KeurigDr Pepper Inc | 45,761 | 1,173 | Palo Alto Networks Inc(a) | 3,327 | 626 | |||||
PepsiCo Inc | 20,188 | 2,231 | $ | 10,522 | ||||||
$ | 3,404 | Machinery - Diversified- 0.93% | ||||||||
Biotechnology- 1.57% | Deere & Co | 8,524 | 1,272 | |||||||
BiogenInc(a) | 5,023 | 1,512 | Media - 3.03% | |||||||
Gilead SciencesInc | 10,189 | 637 | Comcast Corp - Class A | 39,873 | 1,358 | |||||
$ | 2,149 | NexstarMedia GroupInc | 11,789 | 927 | ||||||
Chemicals - 2.61% | Walt Disney Co/The | 17,155 | 1,881 | |||||||
Albemarle Corp | 7,341 | 566 | $ | 4,166 | ||||||
DowDuPont Inc | 12,362 | 661 | Miscellaneous Manufacturers - 0.68% | |||||||
FMC Corp | 17,859 | 1,321 | 3M Co | 4,889 | 931 | |||||
HB Fuller Co | 24,411 | 1,041 | Oil & Gas- 5.01% | |||||||
$ | 3,589 | Chevron Corp | 20,227 | 2,200 | ||||||
Commercial Services - 1.63% | Cimarex Energy Co | 7,639 | 471 | |||||||
Aaron'sInc | 31,665 | 1,332 | Royal Dutch Shell PLC - B shares ADR | 47,866 | 2,869 | |||||
PayPal HoldingsInc(a) | 10,767 | 905 | Valero Energy Corp | 17,856 | 1,339 | |||||
$ | 2,237 | $ | 6,879 | |||||||
Computers - 3.65% | Pharmaceuticals - 5.35% | |||||||||
Apple Inc | 31,728 | 5,005 | Bristol-Myers Squibb Co | 21,933 | 1,140 | |||||
Consumer Products - 1.42% | Johnson & Johnson | 15,736 | 2,031 | |||||||
Church & Dwight CoInc | 29,558 | 1,944 | Merck & Co Inc | 26,388 | 2,016 | |||||
Distribution & Wholesale- 1.00% | PfizerInc | 49,299 | 2,152 | |||||||
KAR Auction ServicesInc | 28,825 | 1,376 | $ | 7,339 | ||||||
Diversified Financial Services- 4.24% | REITs - 3.82% | |||||||||
Ameriprise Financial Inc | 11,527 | 1,203 | Alexandria Real Estate Equities Inc | 22,172 | 2,555 | |||||
Charles Schwab Corp/The | 19,164 | 796 | American Tower Corp | 6,864 | 1,086 | |||||
Discover Financial Services | 39,426 | 2,325 | Simon Property GroupInc | 9,567 | 1,607 | |||||
VisaInc | 11,365 | 1,500 | $ | 5,248 | ||||||
$ | 5,824 | Retail - 3.22% | ||||||||
Electric - 3.28% | Chipotle Mexican GrillInc(a) | 1,135 | 490 | |||||||
NextEra EnergyInc | 14,767 | 2,567 | Costco Wholesale Corp | 5,409 | 1,102 | |||||
Xcel EnergyInc | 39,288 | 1,935 | Home DepotInc/The | 6,880 | 1,182 | |||||
$ | 4,502 | LululemonAthleticaInc(a) | 9,478 | 1,153 | ||||||
Starbucks Corp | 7,624 | 491 | ||||||||
Environmental Control - 0.77% | $ | 4,418 | ||||||||
Waste Connections Inc | 14,271 | 1,060 | Semiconductors - 3.17% | |||||||
Food - 1.22% | Broadcom Inc | 4,763 | 1,211 | |||||||
McCormick & Co Inc/MD | 7,534 | 1,049 | Lam Research Corp | 8,861 | 1,207 | |||||
Tyson FoodsInc | 11,715 | 626 | Microchip TechnologyInc | 21,556 | 1,550 | |||||
$ | 1,675 | NVIDIA Corp | 2,904 | 388 | ||||||
Hand & Machine Tools- 0.49% | $ | 4,356 | ||||||||
Snap-onInc | 4,656 | 676 |
See accompanying notes.
213
Schedule of Investments | |||||||||||||||
Principal Capital Appreciation Account | |||||||||||||||
December 31, 2018 | |||||||||||||||
COMMON STOCKS (continued) | Shares HeldValue (000’s) | (a) | Non-income producing security | ||||||||||||
Software - 9.16% | (b) | Affiliated Security. Security is either an affiliate (and registered under the | |||||||||||||
AdobeInc(a) | 6,249 | $ | 1,414 | Investment Company Act of 1940) or an affiliate as defined by the Investment | |||||||||||
Black KnightInc(a) | 16,511 | 744 | Company Act of 1940 (controls 5.0% or more of the outstanding voting | ||||||||||||
Fair Isaac Corp(a) | 4,173 | 780 | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||||||
Fidelity National Information ServicesInc | 10,127 | 1,039 | information. | ||||||||||||
Microsoft Corp | 59,874 | 6,081 | (c) | Current yield shown is as of period end. | |||||||||||
OmnicellInc(a) | 11,050 | 677 | |||||||||||||
Red HatInc(a) | 6,516 | 1,144 | Portfolio Summary (unaudited) | ||||||||||||
ServiceNowInc(a) | 3,960 | 705 | Sector | Percent | |||||||||||
$ | 12,584 | Consumer, Non-cyclical | 21.71 | % | |||||||||||
Telecommunications - 4.70% | Financial | 16.79 | % | ||||||||||||
Arista Networks Inc(a) | 4,013 | 845 | Technology | 15.98 | % | ||||||||||
AT&T Inc | 23,249 | 663 | Communications | 15.39 | % | ||||||||||
Cisco SystemsInc | 53,516 | 2,319 | Consumer, Cyclical | 9.92 | % | ||||||||||
T-Mobile USInc(a) | 17,842 | 1,135 | Industrial | 6.43 | % | ||||||||||
Verizon CommunicationsInc | 26,425 | 1,486 | Energy | 5.01 | % | ||||||||||
$ | 6,448 | Utilities | 3.28 | % | |||||||||||
Toys, Games & Hobbies- 1.01% | Basic Materials | 2.61 | % | ||||||||||||
HasbroInc | 17,035 | 1,384 | Investment Companies | 2.18 | % | ||||||||||
Transportation - 1.01% | Other Assets and Liabilities | 0.70 | % | ||||||||||||
Expeditors International of WashingtonInc | 10,363 | 706 | TOTAL NET ASSETS | 100.00 | % | ||||||||||
Union Pacific Corp | 4,970 | 687 | |||||||||||||
$ | 1,393 | ||||||||||||||
TOTAL COMMON STOCKS | $ | 133,358 | |||||||||||||
INVESTMENT COMPANIES - 2.18% | Shares HeldValue (000's) | ||||||||||||||
Money Market Funds- 2.18% | |||||||||||||||
Principal Government Money Market Fund | 2,989,429 | 2,989 | |||||||||||||
2.11%(b),(c) | |||||||||||||||
TOTAL INVESTMENT COMPANIES | $ | 2,989 | |||||||||||||
Total Investments | $ | 136,347 | |||||||||||||
Other Assets and Liabilities - 0.70% | 957 | ||||||||||||||
TOTAL NET ASSETS - 100.00% | $ | 137,304 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||||
Value | Cost | Proceeds | Value | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 3,795 | $ | 34,181 | $ | 34,987 | $ | 2,989 | |||||||
$ | 3,795 | $ | 34,181 | $ | 34,987 | $ | 2,989 | ||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 44 | $ | — | $ | — | $ | — | |||||||
$ | 44 | $ | — | $ | — | $ | — | ||||||||
Amounts in thousands |
See accompanying notes.
214
Schedule of Investments | |||||
Principal LifeTime 2010 Account | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 100.01% | Shares Held Value (000's) | ||||
Principal Funds, Inc. Class R-6 - 19.82% | |||||
Blue Chip Fund(a) | 44,974 | $ | 909 | ||
Diversified Real Asset Fund(a) | 55,046 | 570 | |||
Global Multi-Strategy Fund(a) | 189,835 | 1,925 | |||
International Small Company Fund(a) | 41,005 | 380 | |||
LargeCap Growth Fund I(a) | 69,766 | 898 | |||
MidCap Fund(a) | 33,072 | 748 | |||
MidCapValue Fund III(a) | 28,040 | 430 | |||
SmallCap Growth Fund I(a) | 22,063 | 240 | |||
SmallCap Value Fund II(a) | 24,501 | 220 | |||
$ | 6,320 | ||||
Principal Funds, Inc. Institutional Class - 41.81% | |||||
Bond Market Index Fund(a) | 294,962 | 3,138 | |||
Diversified International Fund(a) | 113,373 | 1,214 | |||
Equity Income Fund(a) | 26,013 | 722 | |||
High Yield Fund I(a) | 320,748 | 2,900 | |||
Inflation Protection Fund(a) | 218,076 | 1,777 | |||
LargeCap S&P 500 Index Fund(a) | 104,049 | 1,617 | |||
LargeCap Value Fund III(a) | 52,021 | 746 | |||
Overseas Fund(a) | 143,005 | 1,220 | |||
$ | 13,334 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 38.38% | |||||
Core Plus Bond Account(a) | 565,286 | 6,111 | |||
Short-Term Income Account(a) | 2,431,697 | 6,128 | |||
$ | 12,239 | ||||
TOTAL INVESTMENT COMPANIES | $ | 31,893 | |||
Total Investments | $ | 31,893 | |||
Other Assets and Liabilities - (0.01)% | (3 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 31,890 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Fixed Income Funds | 62.88 | % | |
Domestic Equity Funds | 20.47 | % | |
International Equity Funds | 8.83 | % | |
Specialty Funds | 7.83 | % | |
Other Assets and Liabilities | (0.01 | )% | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
215
Schedule of Investments | ||||||||||||||
Principal LifeTime 2010 Account | ||||||||||||||
December 31, 2018 | ||||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | ||||||||||
Value | Cost | Proceeds | Value | |||||||||||
Blue Chip Fund | $ | 1,070 | $ | 207 | $ | 340 | $ | 909 | ||||||
Bond Market Index Fund | 3,748 | 1,028 | 1,544 | 3,138 | ||||||||||
Core Plus Bond Account | 7,293 | 1,391 | 2,255 | 6,111 | ||||||||||
Diversified International Fund | 2,033 | 250 | 704 | 1,214 | ||||||||||
Diversified Real Asset Fund | 1,189 | 117 | 671 | 570 | ||||||||||
Equity Income Fund | 1,058 | 142 | 388 | 722 | ||||||||||
Global Diversified Income Fund | 3,753 | 487 | 4,083 | — | ||||||||||
Global Multi-Strategy Fund | 2,143 | 484 | 491 | 1,925 | ||||||||||
Global Opportunities Fund | 1,432 | 91 | 1,555 | — | ||||||||||
High Yield Fund I | — | 3,414 | 318 | 2,900 | ||||||||||
Inflation Protection Fund | 2,159 | 350 | 647 | 1,777 | ||||||||||
International Small Company Fund | 679 | 87 | 248 | 380 | ||||||||||
LargeCap Growth Fund I | 1,082 | 245 | 349 | 898 | ||||||||||
LargeCap S&P 500 Index Fund | 2,124 | 343 | 664 | 1,617 | ||||||||||
LargeCap Value Fund III | 1,025 | 161 | 318 | 746 | ||||||||||
MidCap Fund | 1,015 | 166 | 300 | 748 | ||||||||||
MidCapValue Fund III | 734 | 119 | 252 | 430 | ||||||||||
Overseas Fund | 2,013 | 280 | 667 | 1,220 | ||||||||||
Short-Term Income Account | 6,616 | 1,346 | 1,760 | 6,128 | ||||||||||
SmallCap Growth Fund I | 344 | 73 | 127 | 240 | ||||||||||
SmallCap Value Fund II | 329 | 77 | 100 | 220 | ||||||||||
$ | 41,839 | $ | 10,858 | $ | 17,781 | $ | 31,893 | |||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | ||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | |||||||||||
Blue Chip Fund | $ | — | $ | 57 | $ | 66 | $ | (85 | ) | |||||
Bond Market Index Fund | 77 | (27 | ) | — | (67 | ) | ||||||||
Core Plus Bond Account | 209 | (28 | ) | — | (290 | ) | ||||||||
Diversified International Fund | 24 | (65 | ) | 60 | (300 | ) | ||||||||
Diversified Real Asset Fund | 19 | (10 | ) | — | (55 | ) | ||||||||
Equity Income Fund | 27 | 96 | 30 | (186 | ) | |||||||||
Global Diversified Income Fund | 109 | 379 | — | (536 | ) | |||||||||
Global Multi-Strategy Fund | 80 | — | 42 | (211 | ) | |||||||||
Global Opportunities Fund | — | 201 | — | (169 | ) | |||||||||
High Yield Fund I | 45 | (5 | ) | — | (191 | ) | ||||||||
Inflation Protection Fund | 52 | 9 | — | (94 | ) | |||||||||
International Small Company Fund | 12 | 22 | 22 | (160 | ) | |||||||||
LargeCap Growth Fund I | 5 | 40 | 126 | (120 | ) | |||||||||
LargeCap S&P 500 Index Fund | 35 | 69 | 81 | (255 | ) | |||||||||
LargeCap Value Fund III | 22 | 32 | 54 | (154 | ) | |||||||||
MidCap Fund | 3 | 88 | 81 | (221 | ) | |||||||||
MidCapValue Fund III | 10 | 1 | 48 | (172 | ) | |||||||||
Overseas Fund | 37 | 13 | 77 | (419 | ) | |||||||||
Short-Term Income Account | 137 | 1 | — | (75 | ) | |||||||||
SmallCap Growth Fund I | 4 | 34 | 42 | (84 | ) | |||||||||
SmallCap Value Fund II | 7 | 17 | 43 | (103 | ) | |||||||||
$ | 914 | $ | 924 | $ | 772 | $ | (3,947 | ) | ||||||
Amounts in thousands |
See accompanying notes.
216
Schedule of Investments | |||||
Principal LifeTime 2020 Account | |||||
December 31, 2018 | |||||
85 | |||||
INVESTMENT COMPANIES - 100.00% | Shares Held Value (000's) | ||||
Principal Funds, Inc. Class R-6 - 25.76% | |||||
Blue Chip Fund(a) | 366,212 | $ | 7,401 | ||
Diversified Real Asset Fund(a) | 313,259 | 3,245 | |||
Global Multi-Strategy Fund(a) | 856,723 | 8,687 | |||
International Small Company Fund(a) | 365,522 | 3,385 | |||
LargeCap Growth Fund I(a) | 587,480 | 7,561 | |||
MidCap Fund(a) | 274,293 | 6,207 | |||
MidCapValue Fund III(a) | 264,339 | 4,052 | |||
SmallCap Growth Fund I(a) | 197,936 | 2,156 | |||
SmallCap Value Fund II(a) | 221,768 | 1,994 | |||
$ | 44,688 | ||||
Principal Funds, Inc. Institutional Class - 48.11% | |||||
Bond Market Index Fund(a) | 1,396,239 | 14,856 | |||
Diversified International Fund(a) | 1,031,486 | 11,047 | |||
Equity Income Fund(a) | 229,955 | 6,379 | |||
High Yield Fund I(a) | 1,458,206 | 13,182 | |||
Inflation Protection Fund(a) | 847,325 | 6,906 | |||
LargeCap S&P 500 Index Fund(a) | 870,392 | 13,526 | |||
LargeCap Value Fund III(a) | 451,984 | 6,481 | |||
Overseas Fund(a) | 1,299,128 | 11,082 | |||
$ | 83,459 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 26.13% | |||||
Core Plus Bond Account(a) | 2,711,267 | 29,308 | |||
Short-Term Income Account(a) | 6,363,059 | 16,035 | |||
$ | 45,343 | ||||
TOTAL INVESTMENT COMPANIES | $ | 173,490 | |||
Total Investments | $ | 173,490 | |||
Other Assets and Liabilities - 0.00% | (4 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 173,486 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Fixed Income Funds | 46.27 | % | |
Domestic Equity Funds | 32.14 | % | |
International Equity Funds | 14.71 | % | |
Specialty Funds | 6.88 | % | |
Other Assets and Liabilities | 0.00 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
217
Schedule of Investments | |||||||||||||
Principal LifeTime 2020 Account | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 7,851 | $ | 1,099 | $ | 1,279 | $ | 7,401 | |||||
Bond Market Index Fund | 12,921 | 4,847 | 2,577 | 14,856 | |||||||||
Core Plus Bond Account | 32,293 | 5,933 | 7,503 | 29,308 | |||||||||
Diversified International Fund | 14,617 | 1,829 | 2,250 | 11,047 | |||||||||
Diversified Real Asset Fund | 5,033 | 503 | 1,910 | 3,245 | |||||||||
Equity Income Fund | 7,755 | 1,045 | 1,621 | 6,379 | |||||||||
Global Diversified Income Fund | 13,196 | 2,479 | 15,075 | — | |||||||||
Global Multi-Strategy Fund | 8,864 | 1,962 | 1,204 | 8,687 | |||||||||
Global Opportunities Fund | 10,107 | 519 | 10,897 | — | |||||||||
High Yield Fund I | — | 14,766 | 710 | 13,182 | |||||||||
Inflation Protection Fund | 6,682 | 1,616 | 1,088 | 6,906 | |||||||||
International Small Company Fund | 4,893 | 640 | 961 | 3,385 | |||||||||
LargeCap Growth Fund I | 7,938 | 1,673 | 1,264 | 7,561 | |||||||||
LargeCap S&P 500 Index Fund | 15,039 | 2,856 | 2,715 | 13,526 | |||||||||
LargeCap Value Fund III | 7,555 | 1,218 | 1,229 | 6,481 | |||||||||
MidCap Fund | 7,101 | 1,258 | 1,020 | 6,207 | |||||||||
MidCapValue Fund III | 5,349 | 1,006 | 782 | 4,052 | |||||||||
Overseas Fund | 14,486 | 2,194 | 2,088 | 11,082 | |||||||||
Short-Term Income Account | 11,984 | 6,138 | 1,952 | 16,035 | |||||||||
SmallCap Growth Fund I | 2,526 | 579 | 450 | 2,156 | |||||||||
SmallCap Value Fund II | 2,422 | 712 | 358 | 1,994 | |||||||||
$ | 198,612 | $ | 54,872 | $ | 58,933 | $ | 173,490 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | 1 | $ | 157 | $ | 540 | $ | (427 | ) | ||||
Bond Market Index Fund | 366 | (1 | ) | — | (334 | ) | |||||||
Core Plus Bond Account | 947 | (99 | ) | — | (1,316 | ) | |||||||
Diversified International Fund | 219 | 22 | 543 | (3,171 | ) | ||||||||
Diversified Real Asset Fund | 111 | 5 | — | (386 | ) | ||||||||
Equity Income Fund | 222 | 208 | 264 | (1,008 | ) | ||||||||
Global Diversified Income Fund | 432 | (484 | ) | — | (116 | ) | |||||||
Global Multi-Strategy Fund | 361 | (1 | ) | 190 | (934 | ) | |||||||
Global Opportunities Fund | — | 1,651 | — | (1,380 | ) | ||||||||
High Yield Fund I | 200 | (5 | ) | — | (869 | ) | |||||||
Inflation Protection Fund | 201 | (1 | ) | — | (303 | ) | |||||||
International Small Company Fund | 107 | 11 | 191 | (1,198 | ) | ||||||||
LargeCap Growth Fund I | 45 | 19 | 1,062 | (805 | ) | ||||||||
LargeCap S&P 500 Index Fund | 290 | (2 | ) | 673 | (1,652 | ) | |||||||
LargeCap Value Fund III | 193 | 33 | 468 | (1,096 | ) | ||||||||
MidCap Fund | 23 | 23 | 666 | (1,155 | ) | ||||||||
MidCapValue Fund III | 95 | (4 | ) | 422 | (1,517 | ) | |||||||
Overseas Fund | 334 | 4 | 700 | (3,514 | ) | ||||||||
Short-Term Income Account | 302 | 1 | — | (136 | ) | ||||||||
SmallCap Growth Fund I | 34 | 20 | 363 | (519 | ) | ||||||||
SmallCap Value Fund II | 63 | (8 | ) | 376 | (774 | ) | |||||||
$ | 4,546 | $ | 1,549 | $ | 6,458 | $ | (22,610 | ) | |||||
Amounts in thousands |
See accompanying notes.
218
Schedule of Investments | |||||
Principal LifeTime 2030 Account | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 100.00% | Shares Held Value (000's) | ||||
Principal Funds, Inc. Class R-6 - 34.03% | |||||
Blue Chip Fund(a) | 206,077 | $ | 4,165 | ||
Diversified Real Asset Fund(a) | 264,790 | 2,743 | |||
Global Multi-Strategy Fund(a) | 617,244 | 6,259 | |||
International Emerging Markets Fund(a) | 61,089 | 1,385 | |||
International Small Company Fund(a) | 411,177 | 3,807 | |||
LargeCap Growth Fund I(a) | 953,750 | 12,275 | |||
MidCap Fund(a) | 310,682 | 7,031 | |||
MidCapValue Fund III(a) | 309,214 | 4,740 | |||
Origin Emerging Markets Fund(a) | 144,372 | 1,340 | |||
SmallCap Growth Fund I(a) | 225,347 | 2,454 | |||
SmallCap Value Fund II(a) | 252,138 | 2,267 | |||
$ | 48,466 | ||||
Principal Funds, Inc. Institutional Class - 52.10% | |||||
Bond Market Index Fund(a) | 917,295 | 9,760 | |||
Diversified International Fund(a) | 1,074,858 | 11,512 | |||
Equity Income Fund(a) | 138,053 | 3,830 | |||
High Yield Fund I(a) | 879,015 | 7,946 | |||
Inflation Protection Fund(a) | 385,556 | 3,142 | |||
LargeCap S&P 500 Index Fund(a) | 995,543 | 15,471 | |||
LargeCap Value Fund III(a) | 767,191 | 11,001 | |||
Overseas Fund(a) | 1,353,193 | 11,543 | |||
$ | 74,205 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 13.87% | |||||
Core Plus Bond Account(a) | 1,826,933 | 19,749 | |||
TOTAL INVESTMENT COMPANIES | $ | 142,420 | |||
Total Investments | $ | 142,420 | |||
Other Assets and Liabilities - 0.00% | (5 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 142,415 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 44.39 | % | |
Fixed Income Funds | 28.51 | % | |
International Equity Funds | 20.77 | % | |
Specialty Funds | 6.33 | % | |
Other Assets and Liabilities | 0.00 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
219
Schedule of Investments | |||||||||||||
Principal LifeTime 2030 Account | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 4,053 | $ | 881 | $ | 605 | $ | 4,165 | |||||
Bond Market Index Fund | 8,355 | 4,001 | 2,374 | 9,760 | |||||||||
Core Plus Bond Account | 17,902 | 6,580 | 3,890 | 19,749 | |||||||||
Diversified International Fund | 13,802 | 3,260 | 2,306 | 11,512 | |||||||||
Diversified Real Asset Fund | 3,678 | 699 | 1,312 | 2,743 | |||||||||
Equity Income Fund | 3,879 | 1,020 | 581 | 3,830 | |||||||||
Global Diversified Income Fund | 6,987 | 2,149 | 8,798 | — | |||||||||
Global Multi-Strategy Fund | 5,522 | 2,165 | 767 | 6,259 | |||||||||
Global Opportunities Fund | 10,084 | 1,310 | 11,705 | — | |||||||||
High Yield Fund I | — | 8,833 | 366 | 7,946 | |||||||||
Inflation Protection Fund | 3,094 | 705 | 516 | 3,142 | |||||||||
International Emerging Markets Fund | 937 | 900 | 153 | 1,385 | |||||||||
International Small Company Fund | 4,629 | 1,162 | 682 | 3,807 | |||||||||
LargeCap Growth Fund I | 11,662 | 3,719 | 1,763 | 12,275 | |||||||||
LargeCap S&P 500 Index Fund | 15,307 | 4,413 | 2,364 | 15,471 | |||||||||
LargeCap Value Fund III | 11,241 | 3,318 | 1,745 | 11,001 | |||||||||
MidCap Fund | 6,979 | 2,410 | 1,063 | 7,031 | |||||||||
MidCapValue Fund III | 5,496 | 1,831 | 852 | 4,740 | |||||||||
Origin Emerging Markets Fund | 961 | 853 | 154 | 1,340 | |||||||||
Overseas Fund | 13,770 | 3,552 | 2,165 | 11,543 | |||||||||
SmallCap Growth Fund I | 2,544 | 876 | 383 | 2,454 | |||||||||
SmallCap Value Fund II | 2,443 | 1,090 | 383 | 2,267 | |||||||||
$ | 153,325 | $ | 55,727 | $ | 44,927 | $ | 142,420 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | 1 | $ | 19 | $ | 304 | $ | (183 | ) | ||||
Bond Market Index Fund | 240 | (12 | ) | — | (210 | ) | |||||||
Core Plus Bond Account | 608 | — | — | (843 | ) | ||||||||
Diversified International Fund | 228 | 4 | 566 | (3,248 | ) | ||||||||
Diversified Real Asset Fund | 94 | 4 | — | (326 | ) | ||||||||
Equity Income Fund | 125 | 7 | 158 | (495 | ) | ||||||||
Global Diversified Income Fund | 248 | (255 | ) | — | (83 | ) | |||||||
Global Multi-Strategy Fund | 260 | — | 137 | (661 | ) | ||||||||
Global Opportunities Fund | — | 1,404 | — | (1,093 | ) | ||||||||
High Yield Fund I | 120 | (1 | ) | — | (520 | ) | |||||||
Inflation Protection Fund | 91 | — | — | (141 | ) | ||||||||
International Emerging Markets Fund | 17 | 1 | 30 | (300 | ) | ||||||||
International Small Company Fund | 120 | (2 | ) | 215 | (1,300 | ) | |||||||
LargeCap Growth Fund I | 72 | 16 | 1,725 | (1,359 | ) | ||||||||
LargeCap S&P 500 Index Fund | 332 | 50 | 770 | (1,935 | ) | ||||||||
LargeCap Value Fund III | 327 | 29 | 794 | (1,842 | ) | ||||||||
MidCap Fund | 25 | 16 | 754 | (1,311 | ) | ||||||||
MidCapValue Fund III | 112 | — | 487 | (1,735 | ) | ||||||||
Origin Emerging Markets Fund | 23 | 1 | — | (321 | ) | ||||||||
Overseas Fund | 347 | — | 729 | (3,614 | ) | ||||||||
SmallCap Growth Fund I | 39 | 4 | 410 | (587 | ) | ||||||||
SmallCap Value Fund II | 72 | — | 426 | (883 | ) | ||||||||
$ | 3,501 | $ | 1,285 | $ | 7,505 | $ | (22,990 | ) | |||||
Amounts in thousands |
See accompanying notes.
220
Schedule of Investments | |||||
Principal LifeTime 2040 Account | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 100.01% | Shares Held Value (000's) | ||||
Principal Funds, Inc. Class R-6 - 30.42% | |||||
Blue Chip Fund(a) | 109,957 | $ | 2,222 | ||
International Emerging Markets Fund(a) | 40,178 | 911 | |||
International Small Company Fund(a) | 211,357 | 1,957 | |||
LargeCap Growth Fund I(a) | 509,154 | 6,553 | |||
MidCapValue Fund III(a) | 190,032 | 2,913 | |||
Origin Emerging Markets Fund(a) | 94,641 | 878 | |||
Real Estate Securities Fund(a) | 59,764 | 1,306 | |||
SmallCap Growth Fund I(a) | 119,921 | 1,306 | |||
SmallCap Value Fund II(a) | 137,435 | 1,236 | |||
$ | 19,282 | ||||
Principal Funds, Inc. Institutional Class - 59.24% | |||||
Bond Market Index Fund(a) | 291,140 | 3,098 | |||
Diversified International Fund(a) | 586,049 | 6,277 | |||
Equity Income Fund(a) | 74,123 | 2,056 | |||
High Yield Fund I(a) | 257,915 | 2,331 | |||
LargeCap S&P 500 Index Fund(a) | 531,234 | 8,255 | |||
LargeCap Value Fund III(a) | 417,081 | 5,981 | |||
MidCapGrowth Fund III(a) | 344,621 | 3,267 | |||
Overseas Fund(a) | 737,830 | 6,294 | |||
$ | 37,559 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 10.35% | |||||
Core Plus Bond Account(a) | 606,926 | 6,561 | |||
TOTAL INVESTMENT COMPANIES | $ | 63,402 | |||
Total Investments | $ | 63,402 | |||
Other Assets and Liabilities - (0.01)% | (4 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 63,398 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 55.34 | % | |
International Equity Funds | 25.75 | % | |
Fixed Income Funds | 18.92 | % | |
Other Assets and Liabilities | (0.01 | )% | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
221
Schedule of Investments | |||||||||||||
Principal LifeTime 2040 Account | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 2,097 | $ | 535 | $ | 320 | $ | 2,222 | |||||
Bond Market Index Fund | 2,765 | 1,177 | 770 | 3,098 | |||||||||
Core Plus Bond Account | 5,442 | 2,134 | 757 | 6,561 | |||||||||
Diversified International Fund | 7,155 | 1,729 | 903 | 6,277 | |||||||||
Equity Income Fund | 2,075 | 525 | 291 | 2,056 | |||||||||
High Yield Fund I | 1,733 | 1,035 | 247 | 2,331 | |||||||||
International Emerging Markets Fund | 941 | 315 | 103 | 911 | |||||||||
International Small Company Fund | 2,371 | 586 | 347 | 1,957 | |||||||||
LargeCap Growth Fund I | 6,358 | 2,073 | 1,217 | 6,553 | |||||||||
LargeCap S&P 500 Index Fund | 8,172 | 2,073 | 1,033 | 8,255 | |||||||||
LargeCap Value Fund III | 6,090 | 1,722 | 882 | 5,981 | |||||||||
MidCapGrowth Fund III | 3,376 | 961 | 592 | 3,267 | |||||||||
MidCapValue Fund III | 3,317 | 1,018 | 387 | 2,913 | |||||||||
Origin Emerging Markets Fund | 965 | 274 | 105 | 878 | |||||||||
Overseas Fund | 7,097 | 1,914 | 815 | 6,294 | |||||||||
Real Estate Securities Fund | 1,484 | 360 | 424 | 1,306 | |||||||||
SmallCap Growth Fund I | 1,378 | 483 | 257 | 1,306 | |||||||||
SmallCap Value Fund II | 1,323 | 538 | 154 | 1,236 | |||||||||
$ | 64,139 | $ | 19,452 | $ | 9,604 | $ | 63,402 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | —$ | 7 | $ | 160 | $ | (97 | ) | |||||
Bond Market Index Fund | 74 | (4 | ) | — | (70 | ) | |||||||
Core Plus Bond Account | 190 | — | — | (258 | ) | ||||||||
Diversified International Fund | 124 | 5 | 303 | (1,709 | ) | ||||||||
Equity Income Fund | 67 | 2 | 84 | (255 | ) | ||||||||
High Yield Fund I | 123 | — | — | (190 | ) | ||||||||
International Emerging Markets Fund | 11 | — | 20 | (242 | ) | ||||||||
International Small Company Fund | 60 | (1 | ) | 108 | (652 | ) | |||||||
LargeCap Growth Fund I | 38 | 19 | 910 | (680 | ) | ||||||||
LargeCap S&P 500 Index Fund | 174 | 8 | 403 | (965 | ) | ||||||||
LargeCap Value Fund III | 174 | 10 | 423 | (959 | ) | ||||||||
MidCapGrowth Fund III | 48 | 2 | 297 | (480 | ) | ||||||||
MidCapValue Fund III | 67 | — | 292 | (1,035 | ) | ||||||||
Origin Emerging Markets Fund | 15 | 1 | — | (257 | ) | ||||||||
Overseas Fund | 188 | — | 389 | (1,902 | ) | ||||||||
Real Estate Securities Fund | 36 | — | 20 | (114 | ) | ||||||||
SmallCap Growth Fund I | 20 | 2 | 215 | (300 | ) | ||||||||
SmallCap Value Fund II | 39 | — | 227 | (471 | ) | ||||||||
$ | 1,448 | $ | 51 | $ | 3,851 | $ | (10,636 | ) | |||||
Amounts in thousands |
See accompanying notes.
222
Schedule of Investments | |||||
Principal LifeTime 2050 Account | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 100.01% | Shares Held Value (000's) | ||||
Principal Funds, Inc. Class R-6 - 33.77% | |||||
Blue Chip Fund(a) | 59,680 | $ | 1,206 | ||
International Emerging Markets Fund(a) | 22,670 | 514 | |||
International Small Company Fund(a) | 113,936 | 1,055 | |||
LargeCap Growth Fund I(a) | 278,843 | 3,589 | |||
MidCapValue Fund III(a) | 104,768 | 1,606 | |||
Origin Emerging Markets Fund(a) | 53,400 | 496 | |||
Real Estate Securities Fund(a) | 29,904 | 653 | |||
SmallCap Growth Fund I(a) | 67,909 | 739 | |||
SmallCap Value Fund II(a) | 78,531 | 706 | |||
$ | 10,564 | ||||
Principal Funds, Inc. Institutional Class - 60.95% | |||||
Bond Market Index Fund(a) | 62,872 | 669 | |||
Diversified International Fund(a) | 322,199 | 3,451 | |||
Equity Income Fund(a) | 40,563 | 1,125 | |||
High Yield Fund I(a) | 77,795 | 703 | |||
LargeCap S&P 500 Index Fund(a) | 290,815 | 4,520 | |||
LargeCap Value Fund III(a) | 230,759 | 3,309 | |||
MidCapGrowth Fund III(a) | 192,843 | 1,828 | |||
Overseas Fund(a) | 405,515 | 3,459 | |||
$ | 19,064 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 5.29% | |||||
Core Plus Bond Account(a) | 153,139 | 1,656 | |||
TOTAL INVESTMENT COMPANIES | $ | 31,284 | |||
Total Investments | $ | 31,284 | |||
Other Assets and Liabilities - (0.01)% | (4 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 31,280 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 61.64 | % | |
International Equity Funds | 28.69 | % | |
Fixed Income Funds | 9.68 | % | |
Other Assets and Liabilities | (0.01 | )% | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
223
Schedule of Investments | |||||||||||||
Principal LifeTime 2050 Account | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 1,148 | $ | 385 | $ | 278 | $ | 1,206 | |||||
Bond Market Index Fund | 771 | 270 | 352 | 669 | |||||||||
Core Plus Bond Account | 1,432 | 669 | 377 | 1,656 | |||||||||
Diversified International Fund | 3,943 | 1,279 | 831 | 3,451 | |||||||||
Equity Income Fund | 1,132 | 380 | 245 | 1,125 | |||||||||
High Yield Fund I | 531 | 370 | 140 | 703 | |||||||||
International Emerging Markets Fund | 505 | 243 | 102 | 514 | |||||||||
International Small Company Fund | 1,285 | 420 | 297 | 1,055 | |||||||||
LargeCap Growth Fund I | 3,501 | 1,420 | 964 | 3,589 | |||||||||
LargeCap S&P 500 Index Fund | 4,521 | 1,519 | 983 | 4,520 | |||||||||
LargeCap Value Fund III | 3,359 | 1,232 | 740 | 3,309 | |||||||||
MidCapGrowth Fund III | 1,846 | 686 | 424 | 1,828 | |||||||||
MidCapValue Fund III | 1,810 | 761 | 389 | 1,606 | |||||||||
Origin Emerging Markets Fund | 520 | 219 | 103 | 496 | |||||||||
Overseas Fund | 3,914 | 1,423 | 828 | 3,459 | |||||||||
Real Estate Securities Fund | 701 | 247 | 240 | 653 | |||||||||
SmallCap Growth Fund I | 751 | 331 | 167 | 739 | |||||||||
SmallCap Value Fund II | 720 | 414 | 156 | 706 | |||||||||
$ | 32,390 | $ | 12,268 | $ | 7,616 | $ | 31,284 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | —$ | 5 | $ | 88 | $ | (54 | ) | |||||
Bond Market Index Fund | 16 | (1 | ) | — | (19 | ) | |||||||
Core Plus Bond Account | 49 | (1 | ) | — | (67 | ) | |||||||
Diversified International Fund | 68 | 2 | 169 | (942 | ) | ||||||||
Equity Income Fund | 36 | — | 46 | (142 | ) | ||||||||
High Yield Fund I | 38 | — | — | (58 | ) | ||||||||
International Emerging Markets Fund | 6 | — | 11 | (132 | ) | ||||||||
International Small Company Fund | 33 | — | 59 | (353 | ) | ||||||||
LargeCap Growth Fund I | 21 | 13 | 502 | (381 | ) | ||||||||
LargeCap S&P 500 Index Fund | 96 | 4 | 223 | (541 | ) | ||||||||
LargeCap Value Fund III | 98 | — | 237 | (542 | ) | ||||||||
MidCapGrowth Fund III | 27 | 2 | 168 | (282 | ) | ||||||||
MidCapValue Fund III | 38 | 1 | 161 | (577 | ) | ||||||||
Origin Emerging Markets Fund | 9 | 1 | — | (141 | ) | ||||||||
Overseas Fund | 104 | 2 | 217 | (1,052 | ) | ||||||||
Real Estate Securities Fund | 18 | — | 10 | (55 | ) | ||||||||
SmallCap Growth Fund I | 12 | 1 | 122 | (177 | ) | ||||||||
SmallCap Value Fund II | 22 | — | 129 | (272 | ) | ||||||||
$ | 691 | $ | 29 | $ | 2,142 | $ | (5,787 | ) | |||||
Amounts in thousands |
See accompanying notes.
224
Schedule of Investments | |||||
Principal LifeTime 2060 Account | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 100.09% | Shares Held Value (000's) | ||||
Principal Funds, Inc. Class R-6 - 35.71% | |||||
Blue Chip Fund(a) | 9,262 | $ | 187 | ||
International Emerging Markets Fund(a) | 3,841 | 87 | |||
International Small Company Fund(a) | 17,223 | 160 | |||
LargeCap Growth Fund I(a) | 43,119 | 555 | |||
MidCapValue Fund III(a) | 16,767 | 257 | |||
Origin Emerging Markets Fund(a) | 9,093 | 84 | |||
Real Estate Securities Fund(a) | 4,504 | 99 | |||
SmallCap Growth Fund I(a) | 10,950 | 119 | |||
SmallCap Value Fund II(a) | 12,499 | 112 | |||
$ | 1,660 | ||||
Principal Funds, Inc. Institutional Class - 62.16% | |||||
Bond Market Index Fund(a) | 2,563 | 27 | |||
Diversified International Fund(a) | 50,666 | 543 | |||
Equity Income Fund(a) | 6,322 | 175 | |||
High Yield Fund I(a) | 11,321 | 102 | |||
LargeCap S&P 500 Index Fund(a) | 45,015 | 700 | |||
LargeCap Value Fund III(a) | 35,692 | 512 | |||
MidCapGrowth Fund III(a) | 30,284 | 287 | |||
Overseas Fund(a) | 63,763 | 544 | |||
$ | 2,890 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 2.22% | |||||
Core Plus Bond Account(a) | 9,479 | 103 | |||
TOTAL INVESTMENT COMPANIES | $ | 4,653 | |||
Total Investments | $ | 4,653 | |||
Other Assets and Liabilities - (0.09)% | (4 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 4,649 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 64.60 | % | |
International Equity Funds | 30.50 | % | |
Fixed Income Funds | 4.99 | % | |
Other Assets and Liabilities | (0.09 | )% | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
225
Schedule of Investments | |||||||||||||
Principal LifeTime 2060 Account | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 204 | $ | 164 | $ | 179 | $ | 187 | |||||
Bond Market Index Fund | 81 | 72 | 124 | 27 | |||||||||
Core Plus Bond Account | 150 | 134 | 173 | 103 | |||||||||
Diversified International Fund | 715 | 590 | 617 | 543 | |||||||||
Equity Income Fund | 203 | 167 | 174 | 175 | |||||||||
High Yield Fund I | 103 | 108 | 100 | 102 | |||||||||
International Emerging Markets Fund | 98 | 91 | 79 | 87 | |||||||||
International Small Company Fund | 234 | 183 | 205 | 160 | |||||||||
LargeCap Growth Fund I | 623 | 534 | 564 | 555 | |||||||||
LargeCap S&P 500 Index Fund | 817 | 657 | 703 | 700 | |||||||||
LargeCap Value Fund III | 605 | 508 | 523 | 512 | |||||||||
MidCapGrowth Fund III | 337 | 281 | 296 | 287 | |||||||||
MidCapValue Fund III | 335 | 307 | 293 | 257 | |||||||||
Origin Emerging Markets Fund | 93 | 95 | 81 | 84 | |||||||||
Overseas Fund | 711 | 612 | 617 | 544 | |||||||||
Real Estate Securities Fund | 130 | 111 | 135 | 99 | |||||||||
SmallCap Growth Fund I | 140 | 124 | 121 | 119 | |||||||||
SmallCap Value Fund II | 135 | 138 | 120 | 112 | |||||||||
$ | 5,714 | $ | 4,876 | $ | 5,104 | $ | 4,653 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | —$ | 5 | $ | 13 | $ | (7 | ) | |||||
Bond Market Index Fund | 1 | (2 | ) | — | — | ||||||||
Core Plus Bond Account | 4 | (2 | ) | — | (6 | ) | |||||||
Diversified International Fund | 11 | 1 | 25 | (146 | ) | ||||||||
Equity Income Fund | 6 | — | 7 | (21 | ) | ||||||||
High Yield Fund I | 7 | — | — | (9 | ) | ||||||||
International Emerging Markets Fund | 1 | — | 2 | (23 | ) | ||||||||
International Small Company Fund | 5 | — | 9 | (52 | ) | ||||||||
LargeCap Growth Fund I | 3 | 13 | 76 | (51 | ) | ||||||||
LargeCap S&P 500 Index Fund | 14 | 5 | 33 | (76 | ) | ||||||||
LargeCap Value Fund III | 15 | 1 | 35 | (79 | ) | ||||||||
MidCapGrowth Fund III | 4 | 2 | 25 | (37 | ) | ||||||||
MidCapValue Fund III | 6 | — | 26 | (92 | ) | ||||||||
Origin Emerging Markets Fund | 1 | 1 | — | (24 | ) | ||||||||
Overseas Fund | 16 | 1 | 33 | (163 | ) | ||||||||
Real Estate Securities Fund | 3 | — | 2 | (7 | ) | ||||||||
SmallCap Growth Fund I | 2 | 2 | 19 | (26 | ) | ||||||||
SmallCap Value Fund II | 4 | — | 20 | (41 | ) | ||||||||
$ | 103 | $ | 27 | $ | 325 | $ | (860 | ) | |||||
Amounts in thousands |
See accompanying notes.
226
Schedule of Investments | |||||
Principal LifeTime Strategic Income Account | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 100.01% | Shares Held Value (000's) | ||||
Principal Funds, Inc. Class R-6 - 17.10% | |||||
Blue Chip Fund(a) | 39,607 | $ | 800 | ||
Diversified Real Asset Fund(a) | 35,593 | 369 | |||
Global Multi-Strategy Fund(a) | 142,312 | 1,443 | |||
International Small Company Fund(a) | 17,842 | 165 | |||
MidCap Fund(a) | 23,864 | 540 | |||
SmallCap Growth Fund I(a) | 10,149 | 111 | |||
SmallCap Value Fund II(a) | 11,736 | 106 | |||
$ | 3,534 | ||||
Principal Funds, Inc. Institutional Class - 37.47% | |||||
Bond Market Index Fund(a) | 224,799 | 2,391 | |||
Diversified International Fund(a) | 48,648 | 521 | |||
Equity Income Fund(a) | 23,859 | 662 | |||
High Yield Fund I(a) | 214,692 | 1,941 | |||
Inflation Protection Fund(a) | 119,726 | 976 | |||
LargeCap S&P 500 Index Fund(a) | 46,837 | 728 | |||
Overseas Fund(a) | 61,371 | 523 | |||
$ | 7,742 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 45.44% | |||||
Core Plus Bond Account(a) | 427,743 | 4,624 | |||
Short-Term Income Account(a) | 1,891,480 | 4,766 | |||
$ | 9,390 | ||||
TOTAL INVESTMENT COMPANIES | $ | 20,666 | |||
Total Investments | $ | 20,666 | |||
Other Assets and Liabilities - (0.01)% | (2 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 20,664 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Fixed Income Funds | 71.13 | % | |
Domestic Equity Funds | 14.26 | % | |
Specialty Funds | 8.77 | % | |
International Equity Funds | 5.85 | % | |
Other Assets and Liabilities | (0.01 | )% | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
227
Schedule of Investments | ||||||||||||||
Principal LifeTime Strategic Income Account | ||||||||||||||
December 31, 2018 | ||||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | ||||||||||
Value | Cost | Proceeds | Value | |||||||||||
Blue Chip Fund | $ | 856 | $ | 159 | $ | 189 | $ | 800 | ||||||
Bond Market Index Fund | 2,731 | 609 | 883 | 2,391 | ||||||||||
Core Plus Bond Account | 5,410 | 1,108 | 1,653 | 4,624 | ||||||||||
Diversified International Fund | 789 | 159 | 272 | 521 | ||||||||||
Diversified Real Asset Fund | 623 | 93 | 305 | 369 | ||||||||||
Equity Income Fund | 846 | 143 | 248 | 662 | ||||||||||
Global Diversified Income Fund | 2,534 | 357 | 2,785 | — | ||||||||||
Global Multi-Strategy Fund | 1,553 | 454 | 410 | 1,443 | ||||||||||
Global Opportunities Fund | 439 | 59 | 510 | — | ||||||||||
High Yield Fund I | — | 2,165 | 95 | 1,941 | ||||||||||
Inflation Protection Fund | 1,133 | 204 | 316 | 976 | ||||||||||
International Small Company Fund | 275 | 43 | 93 | 165 | ||||||||||
LargeCap S&P 500 Index Fund | 808 | 190 | 184 | 728 | ||||||||||
MidCap Fund | 671 | 134 | 171 | 540 | ||||||||||
Overseas Fund | 782 | 172 | 259 | 523 | ||||||||||
Short-Term Income Account | 4,922 | 1,100 | 1,199 | 4,766 | ||||||||||
SmallCap Growth Fund I | 133 | 35 | 33 | 111 | ||||||||||
SmallCap Value Fund II | 128 | 48 | 29 | 106 | ||||||||||
$ | 24,633 | $ | 7,232 | $ | 9,634 | $ | 20,666 | |||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | ||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | |||||||||||
Blue Chip Fund | $ | —$ | 20 | $ | 58 | $ | (46 | ) | ||||||
Bond Market Index Fund | 58 | (13 | ) | — | (53 | ) | ||||||||
Core Plus Bond Account | 161 | (17 | ) | — | (224 | ) | ||||||||
Diversified International Fund | 10 | 15 | 25 | (170 | ) | |||||||||
Diversified Real Asset Fund | 13 | 1 | — | (43 | ) | |||||||||
Equity Income Fund | 24 | 43 | 27 | (122 | ) | |||||||||
Global Diversified Income Fund | 75 | 500 | — | (606 | ) | |||||||||
Global Multi-Strategy Fund | 60 | — | 31 | (154 | ) | |||||||||
Global Opportunities Fund | — | 64 | — | (52 | ) | |||||||||
High Yield Fund I | 31 | (1 | ) | — | (128 | ) | ||||||||
Inflation Protection Fund | 28 | 8 | — | (53 | ) | |||||||||
International Small Company Fund | 5 | 5 | 9 | (65 | ) | |||||||||
LargeCap S&P 500 Index Fund | 16 | 3 | 36 | (89 | ) | |||||||||
MidCap Fund | 2 | 37 | 58 | (131 | ) | |||||||||
Overseas Fund | 16 | 2 | 33 | (174 | ) | |||||||||
Short-Term Income Account | 108 | — | — | (57 | ) | |||||||||
SmallCap Growth Fund I | 2 | 2 | 19 | (26 | ) | |||||||||
SmallCap Value Fund II | 3 | — | 20 | (41 | ) | |||||||||
$ | 612 | $ | 669 | $ | 316 | $ | (2,234 | ) | ||||||
Amounts in thousands |
See accompanying notes.
228
Schedule of Investments | |||||||||||||||
Real Estate Securities Account | |||||||||||||||
December 31, 2018 | |||||||||||||||
COMMON STOCKS - 98.97% | Shares HeldValue (000's) | (a) | Non-income producing security | ||||||||||||
Lodging - 4.34% | (b) | Restricted Security. Please see Restricted Security Sub-Schedule for more | |||||||||||||
Extended Stay AmericaInc | 97,853 | $ | 1,517 | information. | |||||||||||
Hilton Grand VacationsInc(a) | 49,331 | 1,302 | (c) | Affiliated Security. Security is either an affiliate (and registered under the | |||||||||||
Hilton Worldwide HoldingsInc | 43,489 | 3,122 | Investment Company Act of 1940) or an affiliate as defined by the Investment | ||||||||||||
$ | 5,941 | Company Act of 1940 (controls 5.0% or more of the outstanding voting | |||||||||||||
REITs - 92.79% | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||||||||
Alexandria Real Estate Equities Inc | 49,808 | 5,740 | information. | ||||||||||||
American Homes 4 Rent | 118,685 | 2,356 | (d) | Current yield shown is as of period end. | |||||||||||
American Tower Corp | 10,444 | 1,652 | |||||||||||||
Apartment Investment & Management Co | 99,524 | 4,367 | Portfolio Summary (unaudited) | ||||||||||||
AvalonBay CommunitiesInc | 48,440 | 8,431 | Sector | Percent | |||||||||||
Boston Properties Inc | 21,447 | 2,414 | Financial | 92.79 | % | ||||||||||
Corporate Office Properties Trust | 42,050 | 884 | Consumer, Cyclical | 4.34 | % | ||||||||||
Crown Castle International Corp | 12,641 | 1,373 | Technology | 1.84 | % | ||||||||||
CubeSmart | 72,134 | 2,070 | Investment Companies | 0.67 | % | ||||||||||
Duke Realty Corp | 78,766 | 2,040 | Other Assets and Liabilities | 0.36 | % | ||||||||||
EPR Properties | 44,767 | 2,866 | TOTAL NET ASSETS | 100.00 | % | ||||||||||
Equinix Inc | 25,429 | 8,965 | |||||||||||||
Equity LifeStyleProperties Inc | 22,430 | 2,179 | |||||||||||||
Equity Residential | 22,367 | 1,476 | |||||||||||||
Essex Property TrustInc | 25,884 | 6,347 | |||||||||||||
Extra Space StorageInc | 49,800 | 4,506 | |||||||||||||
First Industrial Realty TrustInc | 38,082 | 1,099 | |||||||||||||
HCPInc | 48,460 | 1,353 | |||||||||||||
Healthcare Trust of AmericaInc | 151,556 | 3,836 | |||||||||||||
Hudson Pacific PropertiesInc | 55,232 | 1,605 | |||||||||||||
Invitation HomesInc | 278,458 | 5,591 | |||||||||||||
Kilroy Realty Corp | 45,841 | 2,882 | |||||||||||||
Liberty Property Trust | 38,220 | 1,601 | |||||||||||||
Physicians Realty Trust | 74,241 | 1,190 | |||||||||||||
PrologisInc | 162,437 | 9,538 | |||||||||||||
Public Storage | 12,572 | 2,545 | |||||||||||||
Regency Centers Corp | 76,731 | 4,503 | |||||||||||||
Saul CentersInc | 13,644 | 644 | |||||||||||||
Simon Property GroupInc | 47,040 | 7,902 | |||||||||||||
Spirit Realty CapitalInc | 66,626 | 2,349 | |||||||||||||
STORE Capital Corp | 139,725 | 3,956 | |||||||||||||
Sun CommunitiesInc | 36,920 | 3,755 | |||||||||||||
Sunstone Hotel InvestorsInc | 178,533 | 2,323 | |||||||||||||
Tanger Factory Outlet CentersInc | 44,717 | 904 | |||||||||||||
TaubmanCenters Inc | 26,700 | 1,215 | |||||||||||||
TerrenoRealty Corp | 30,410 | 1,070 | |||||||||||||
VICI PropertiesInc(b) | 39,472 | 741 | |||||||||||||
Vornado Realty Trust | 19,903 | 1,235 | |||||||||||||
Welltower Inc | 97,135 | 6,742 | |||||||||||||
Weyerhaeuser Co | 37,010 | 809 | |||||||||||||
$ | 127,054 | ||||||||||||||
Software - 1.84% | |||||||||||||||
InterXion Holding NV(a) | 46,595 | 2,524 | |||||||||||||
TOTAL COMMON STOCKS | $ | 135,519 | |||||||||||||
INVESTMENT COMPANIES - 0.67% | Shares HeldValue (000's) | ||||||||||||||
Money Market Funds- 0.67% | |||||||||||||||
Principal Government Money Market Fund | 911,476 | 911 | |||||||||||||
2.11%(c),(d) | |||||||||||||||
TOTAL INVESTMENT COMPANIES | $ | 911 | |||||||||||||
Total Investments | $ | 136,430 | |||||||||||||
Other Assets and Liabilities - 0.36% | 492 | ||||||||||||||
TOTAL NET ASSETS - 100.00% | $ | 136,922 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||||
Value | Cost | Proceeds | Value | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 190 | $ | 17,813 | $ | 17,092 | $ | 911 | |||||||
$ | 190 | $ | 17,813 | $ | 17,092 | $ | 911 | ||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 7 | $ | — | $ | — | $ | — | |||||||
$ | 7 | $ | — | $ | — | $ | — | ||||||||
Amounts in thousands |
See accompanying notes.
229
Schedule of Investments | ||||||||||
Real Estate Securities Account | ||||||||||
December 31, 2018 | ||||||||||
Restricted Securities | ||||||||||
Security Name | Acquisition Date | Cost | Value | Percent of Net Assets | ||||||
VICI PropertiesInc | 02/01/2018-11/15/2018 | $ | 806 | $ | 741 | 0.54 | % | |||
Total | $ | 741 | 0.54 | % | ||||||
Amounts in thousands. |
See accompanying notes.
230
Schedule of Investments | |||||
SAM Balanced Portfolio | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 99.91% | Shares Held Value (000's) | ||||
Money Market Funds- 0.31% | |||||
Principal Government Money Market Fund | 2,067,003 | $ | 2,067 | ||
2.11%(a),(b) | |||||
Principal Exchange-Traded Funds - 19.52% | |||||
Principal Active Global Dividend Income ETF(a) | 1,237,500 | 30,012 | |||
Principal EDGE Active Income ETF(a) | 228,100 | 8,651 | |||
Principal Investment Grade Corporate Active | 439,000 | 10,579 | |||
ETF(a) | |||||
Principal U.S. Mega-Cap Multi-Factor Index | 2,665,200 | 66,603 | |||
ETF(a) | |||||
Principal U.S. Small-Cap Multi-Factor Index | 504,100 | 14,004 | |||
ETF(a) | |||||
$ | 129,849 | ||||
Principal Funds, Inc. Class R-6 - 30.02% | |||||
Blue Chip Fund(a) | 2,711,268 | 54,795 | |||
Diversified Real Asset Fund(a) | 2,163,005 | 22,409 | |||
EDGEMidCap Fund(a) | 2,038,043 | 24,457 | |||
Global Multi-Strategy Fund(a) | 2,597,223 | 26,336 | |||
Global Real Estate Securities Fund(a) | 2,306,534 | 20,436 | |||
High Yield Fund(a) | 1,528,701 | 10,242 | |||
International Emerging Markets Fund(a) | 364,271 | 8,258 | |||
International Small Company Fund(a) | 798,313 | 7,392 | |||
Preferred Securities Fund(a) | 1,913,377 | 17,967 | |||
Real Estate Debt Income Fund(a) | 788,415 | 7,387 | |||
$ | 199,679 | ||||
Principal Funds, Inc. Institutional Class - 19.95% | |||||
Diversified International Fund(a) | 6,641,220 | 71,127 | |||
Inflation Protection Fund(a) | 1,368,292 | 11,152 | |||
Short-Term Income Fund(a) | 4,199,941 | 50,441 | |||
$ | 132,720 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 30.11% | |||||
Equity Income Account(a) | 3,507,656 | 80,186 | |||
Government & High Quality Bond Account(a) | 4,237,042 | 40,125 | |||
Income Account(a) | 7,988,765 | 79,967 | |||
$ | 200,278 | ||||
TOTAL INVESTMENT COMPANIES | $ | 664,593 | |||
Total Investments | $ | 664,593 | |||
Other Assets and Liabilities - 0.09% | 620 | ||||
TOTAL NET ASSETS - 100.00% | $ | 665,213 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. | |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 36.10 | % | |
Fixed Income Funds | 35.55 | % | |
International Equity Funds | 20.62 | % | |
Specialty Funds | 7.33 | % | |
Investment Companies | 0.31 | % | |
Other Assets and Liabilities | 0.09 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
231
Schedule of Investments | |||||||||||||
SAM Balanced Portfolio | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 48,993 | $ | 14,082 | $ | 5,625 | $ | 54,795 | |||||
Diversified International Fund | 92,034 | 8,097 | 9,104 | 71,127 | |||||||||
Diversified Real Asset Fund | 27,839 | 1,900 | 4,634 | 22,409 | |||||||||
EDGEMidCap Fund | 23,184 | 8,037 | 3,736 | 24,457 | |||||||||
Equity Income Account | 92,831 | 9,286 | 10,678 | 80,186 | |||||||||
Global Multi-Strategy Fund | 36,482 | 1,944 | 9,191 | 26,336 | |||||||||
Global Real Estate Securities Fund | 22,121 | 2,910 | 3,084 | 20,436 | |||||||||
Government & High Quality Bond Account | 42,349 | 7,407 | 8,438 | 40,125 | |||||||||
High Yield Fund | 11,818 | 1,615 | 1,989 | 10,242 | |||||||||
Income Account | 97,340 | 8,864 | 23,133 | 79,967 | |||||||||
Inflation Protection Fund | 12,453 | 1,008 | 1,786 | 11,152 | |||||||||
International Emerging Markets Fund | 18,357 | 417 | 7,374 | 8,258 | |||||||||
International Small Company Fund | 10,659 | 698 | 1,445 | 7,392 | |||||||||
LargeCap Growth Fund | 11,955 | — | 12,713 | — | |||||||||
LargeCap Value Fund | 30,986 | — | 31,500 | — | |||||||||
Preferred Securities Fund | 20,433 | 2,878 | 3,373 | 17,967 | |||||||||
Principal Active Global Dividend Income ETF | 31,640 | 3,034 | — | 30,012 | |||||||||
Principal Capital Appreciation Fund | 12,120 | — | 12,406 | — | |||||||||
Principal EDGE Active Income ETF | 8,640 | 773 | — | 8,651 | |||||||||
Principal Government Money Market Fund 2.11% | 2,304 | 65,129 | 65,366 | 2,067 | |||||||||
Principal Investment Grade Corporate Active ETF | — | 10,822 | — | 10,579 | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 37,883 | 41,953 | 9,922 | 66,603 | |||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 14,900 | 1,999 | 1,046 | 14,004 | |||||||||
Real Estate Debt Income Fund | 7,323 | 1,329 | 1,120 | 7,387 | |||||||||
Short-Term Income Fund | 54,812 | 5,932 | 9,669 | 50,441 | |||||||||
Small-MidCap Dividend Income Fund | 18,969 | — | 18,904 | — | |||||||||
$ | 788,425 | $ | 200,114 | $ | 256,236 | $ | 664,593 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | 8 | $ | 79 | $ | 3,986 | $ | (2,734 | ) | ||||
Diversified International Fund | 1,409 | 292 | 3,485 | (20,192 | ) | ||||||||
Diversified Real Asset Fund | 770 | 145 | — | (2,841 | ) | ||||||||
EDGEMidCap Fund | 413 | 96 | 1,200 | (3,124 | ) | ||||||||
Equity Income Account | 2,057 | 320 | 5,135 | (11,573 | ) | ||||||||
Global Multi-Strategy Fund | 1,108 | 381 | 585 | (3,280 | ) | ||||||||
Global Real Estate Securities Fund | 634 | (5 | ) | 144 | (1,506 | ) | |||||||
Government & High Quality Bond Account | 1,525 | (269 | ) | — | (924 | ) | |||||||
High Yield Fund | 717 | (63 | ) | — | (1,139 | ) | |||||||
Income Account | 3,591 | 251 | — | (3,355 | ) | ||||||||
Inflation Protection Fund | 327 | (43 | ) | — | (480 | ) | |||||||
International Emerging Markets Fund | 99 | 924 | 179 | (4,066 | ) | ||||||||
International Small Company Fund | 233 | 160 | 415 | (2,680 | ) | ||||||||
LargeCap Growth Fund | — | 1,075 | — | (317 | ) | ||||||||
LargeCap Value Fund | — | (2,306 | ) | — | 2,820 | ||||||||
Preferred Securities Fund | 1,089 | (152 | ) | — | (1,819 | ) | |||||||
Principal Active Global Dividend Income ETF | 823 | — | 369 | (4,662 | ) | ||||||||
Principal Capital Appreciation Fund | — | 2,479 | — | (2,193 | ) | ||||||||
Principal EDGE Active Income ETF | 425 | — | 77 | (762 | ) | ||||||||
Principal Government Money Market Fund 2.11% | 76 | — | — | — | |||||||||
Principal Investment Grade Corporate Active ETF | 276 | — | 9 | (243 | ) | ||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 1,597 | (39 | ) | — | (3,272 | ) | |||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 183 | 77 | — | (1,926 | ) | ||||||||
Real Estate Debt Income Fund | 299 | (34 | ) | — | (111 | ) | |||||||
Short-Term Income Fund | 1,213 | (139 | ) | — | (495 | ) | |||||||
Small-MidCap Dividend Income Fund | — | 7,788 | — | (7,853 | ) | ||||||||
$ | 18,872 | $ | 11,017 | $ | 15,584 | $ | (78,727 | ) | |||||
Amounts in thousands |
See accompanying notes.
232
Schedule of Investments | |||||
SAM Conservative Balanced Portfolio | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 99.94% | Shares Held Value (000's) | ||||
Money Market Funds- 0.51% | |||||
Principal Government Money Market Fund | 897,199 | $ | 897 | ||
2.11%(a),(b) | |||||
Principal Exchange-Traded Funds - 14.45% | |||||
Principal Active Global Dividend Income ETF(a) | 133,000 | 3,226 | |||
Principal EDGE Active Income ETF(a) | 126,800 | 4,809 | |||
Principal Investment Grade Corporate Active | 176,400 | 4,251 | |||
ETF(a) | |||||
Principal U.S. Mega-Cap Multi-Factor Index | 431,800 | 10,791 | |||
ETF(a) | |||||
Principal U.S. Small-Cap Multi-Factor Index | 78,200 | 2,172 | |||
ETF(a) | |||||
$ | 25,249 | ||||
Principal Funds, Inc. Class R-6 - 28.39% | |||||
Blue Chip Fund(a) | 461,131 | 9,319 | |||
Diversified Real Asset Fund(a) | 488,527 | 5,061 | |||
EDGEMidCap Fund(a) | 330,193 | 3,962 | |||
Global Diversified Income Fund(a) | 364,397 | 4,642 | |||
Global Multi-Strategy Fund(a) | 687,259 | 6,969 | |||
Global Real Estate Securities Fund(a) | 442,062 | 3,917 | |||
High Yield Fund(a) | 651,047 | 4,362 | |||
International Emerging Markets Fund(a) | 59,425 | 1,347 | |||
International Small Company Fund(a) | 144,167 | 1,335 | |||
Preferred Securities Fund(a) | 753,311 | 7,074 | |||
Real Estate Debt Income Fund(a) | 172,415 | 1,616 | |||
$ | 49,604 | ||||
Principal Funds, Inc. Institutional Class - 21.40% | |||||
Diversified International Fund(a) | 1,136,633 | 12,173 | |||
Inflation Protection Fund(a) | 582,320 | 4,746 | |||
Short-Term Income Fund(a) | 1,705,660 | 20,485 | |||
$ | 37,404 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 35.19% | |||||
Equity Income Account(a) | 604,848 | 13,827 | |||
Government & High Quality Bond Account(a) | 1,890,506 | 17,903 | |||
Income Account(a) | 2,973,313 | 29,763 | |||
$ | 61,493 | ||||
TOTAL INVESTMENT COMPANIES | $ | 174,647 | |||
Total Investments | $ | 174,647 | |||
Other Assets and Liabilities - 0.06% | 99 | ||||
TOTAL NET ASSETS - 100.00% | $ | 174,746 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. | |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Fixed Income Funds | 54.36 | % | |
Domestic Equity Funds | 22.93 | % | |
International Equity Funds | 12.59 | % | |
Specialty Funds | 9.55 | % | |
Investment Companies | 0.51 | % | |
Other Assets and Liabilities | 0.06 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
233
Schedule of Investments | |||||||||||||
SAM Conservative Balanced Portfolio | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 6,344 | $ | 4,606 | $ | 1,075 | $ | 9,319 | |||||
Diversified International Fund | 15,446 | 2,457 | 2,375 | 12,173 | |||||||||
Diversified Real Asset Fund | 6,054 | 565 | 948 | 5,061 | |||||||||
EDGEMidCap Fund | 4,369 | 919 | 842 | 3,962 | |||||||||
Equity Income Account | 14,685 | 2,736 | 1,688 | 13,827 | |||||||||
Global Diversified Income Fund | 5,258 | 785 | 886 | 4,642 | |||||||||
Global Multi-Strategy Fund | 8,105 | 1,006 | 1,379 | 6,969 | |||||||||
Global Real Estate Securities Fund | 3,408 | 1,540 | 746 | 3,917 | |||||||||
Government & High Quality Bond Account | 19,308 | 2,095 | 2,950 | 17,903 | |||||||||
High Yield Fund | 5,057 | 690 | 895 | 4,362 | |||||||||
Income Account | 37,038 | 3,170 | 9,281 | 29,763 | |||||||||
Inflation Protection Fund | 5,097 | 659 | 794 | 4,746 | |||||||||
International Emerging Markets Fund | 3,293 | 126 | 1,545 | 1,347 | |||||||||
International Small Company Fund | 1,698 | 370 | 281 | 1,335 | |||||||||
LargeCap Growth Fund | 2,457 | — | 2,624 | — | |||||||||
LargeCap Value Fund | 6,784 | — | 6,902 | — | |||||||||
Preferred Securities Fund | 8,013 | 1,140 | 1,309 | 7,074 | |||||||||
Principal Active Global Dividend Income ETF | 4,424 | — | 693 | 3,226 | |||||||||
Principal Capital Appreciation Fund | 2,028 | — | 2,080 | — | |||||||||
Principal EDGE Active Income ETF | 5,234 | — | — | 4,809 | |||||||||
Principal Government Money Market Fund 2.11% | 634 | 12,562 | 12,299 | 897 | |||||||||
Principal Investment Grade Corporate Active ETF | — | 4,348 | — | 4,251 | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 5,974 | 7,068 | 1,719 | 10,791 | |||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 2,575 | 62 | 173 | 2,172 | |||||||||
Real Estate Debt Income Fund | 1,706 | 178 | 235 | 1,616 | |||||||||
Short-Term Income Fund | 22,090 | 2,378 | 3,728 | 20,485 | |||||||||
Small-MidCap Dividend Income Fund | 1,971 | — | 1,966 | — | |||||||||
$ | 199,050 | $ | 49,460 | $ | 59,413 | $ | 174,647 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | 1 | $ | 4 | $ | 676 | $ | (560 | ) | ||||
Diversified International Fund | 241 | 102 | 595 | (3,457 | ) | ||||||||
Diversified Real Asset Fund | 173 | 9 | — | (619 | ) | ||||||||
EDGEMidCap Fund | 67 | 25 | 193 | (509 | ) | ||||||||
Equity Income Account | 339 | (1 | ) | 845 | (1,905 | ) | |||||||
Global Diversified Income Fund | 234 | (29 | ) | — | (486 | ) | |||||||
Global Multi-Strategy Fund | 293 | 8 | 155 | (771 | ) | ||||||||
Global Real Estate Securities Fund | 118 | (14 | ) | 28 | (271 | ) | |||||||
Government & High Quality Bond Account | 700 | (171 | ) | — | (379 | ) | |||||||
High Yield Fund | 298 | 7 | — | (497 | ) | ||||||||
Income Account | 1,339 | 6 | — | (1,170 | ) | ||||||||
Inflation Protection Fund | 138 | (17 | ) | — | (199 | ) | |||||||
International Emerging Markets Fund | 16 | 211 | 29 | (738 | ) | ||||||||
International Small Company Fund | 42 | 12 | 75 | (464 | ) | ||||||||
LargeCap Growth Fund | — | 268 | — | (101 | ) | ||||||||
LargeCap Value Fund | — | (277 | ) | — | 395 | ||||||||
Preferred Securities Fund | 425 | (54 | ) | — | (716 | ) | |||||||
Principal Active Global Dividend Income ETF | 98 | 60 | 40 | (565 | ) | ||||||||
Principal Capital Appreciation Fund | — | 423 | — | (371 | ) | ||||||||
Principal EDGE Active Income ETF | 237 | — | 43 | (425 | ) | ||||||||
Principal Government Money Market Fund 2.11% | 14 | — | — | — | |||||||||
Principal Investment Grade Corporate Active ETF | 111 | — | 4 | (97 | ) | ||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 261 | 4 | — | (536 | ) | ||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 28 | 35 | — | (327 | ) | ||||||||
Real Estate Debt Income Fund | 66 | (7 | ) | — | (26 | ) | |||||||
Short-Term Income Fund | 488 | (50 | ) | — | (205 | ) | |||||||
Small-MidCap Dividend Income Fund | — | 816 | — | (821 | ) | ||||||||
$ | 5,727 | $ | 1,370 | $ | 2,683 | $ | (15,820 | ) | |||||
Amounts in thousands |
See accompanying notes.
234
Schedule of Investments | |||||
SAM Conservative Growth Portfolio | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 99.90% | Shares Held Value (000's) | ||||
Money Market Funds- 0.26% | |||||
Principal Government Money Market Fund | 796,873 | $ | 797 | ||
2.11%(a),(b) | |||||
Principal Exchange-Traded Funds - 19.95% | |||||
Principal Active Global Dividend Income ETF(a) | 378,000 | 9,167 | |||
Principal Investment Grade Corporate Active | 86,500 | 2,084 | |||
ETF(a) | |||||
Principal U.S. Mega-Cap Multi-Factor Index | 1,637,800 | 40,929 | |||
ETF(a) | |||||
Principal U.S. Small-Cap Multi-Factor Index | 333,900 | 9,276 | |||
ETF(a) | |||||
$ | 61,456 | ||||
Principal Funds, Inc. Class R-6 - 33.85% | |||||
Blue Chip Fund(a) | 1,765,882 | 35,689 | |||
Diversified Real Asset Fund(a) | 1,130,820 | 11,715 | |||
EDGEMidCap Fund(a) | 1,475,600 | 17,707 | |||
Global Multi-Strategy Fund(a) | 496,436 | 5,034 | |||
Global Real Estate Securities Fund(a) | 1,227,389 | 10,875 | |||
International Small Company Fund(a) | 503,570 | 4,663 | |||
Multi-Manager Equity Long/Short Fund(a) | 905,048 | 7,946 | |||
Origin Emerging Markets Fund(a) | 588,981 | 5,466 | |||
Preferred Securities Fund(a) | 547,098 | 5,137 | |||
$ | 104,232 | ||||
Principal Funds, Inc. Institutional Class - 20.57% | |||||
Diversified International Fund(a) | 4,475,495 | 47,933 | |||
Short-Term Income Fund(a) | 1,284,283 | 15,424 | |||
$ | 63,357 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 25.27% | |||||
Equity Income Account(a) | 2,279,427 | 52,108 | |||
Government & High Quality Bond Account(a) | 1,016,784 | 9,629 | |||
Income Account(a) | 1,606,957 | 16,085 | |||
$ | 77,822 | ||||
TOTAL INVESTMENT COMPANIES | $ | 307,664 | |||
Total Investments | $ | 307,664 | |||
Other Assets and Liabilities - 0.10% | 297 | ||||
TOTAL NET ASSETS - 100.00% | $ | 307,961 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. | |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 50.56 | % | |
International Equity Funds | 25.35 | % | |
Fixed Income Funds | 15.71 | % | |
Specialty Funds | 8.02 | % | |
Investment Companies | 0.26 | % | |
Other Assets and Liabilities | 0.10 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
235
Schedule of Investments | |||||||||||||
SAM Conservative Growth Portfolio | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 26,896 | $ | 14,225 | $ | 3,254 | $ | 35,689 | |||||
Diversified International Fund | 59,933 | 6,539 | 5,137 | 47,933 | |||||||||
Diversified Real Asset Fund | 13,646 | 1,104 | 1,622 | 11,715 | |||||||||
EDGEMidCap Fund | 18,803 | 3,167 | 2,006 | 17,707 | |||||||||
Equity Income Account | 44,082 | 20,115 | 4,775 | 52,108 | |||||||||
Global Multi-Strategy Fund | 5,732 | 710 | 856 | 5,034 | |||||||||
Global Real Estate Securities Fund | 6,797 | 6,255 | 1,389 | 10,875 | |||||||||
Government & High Quality Bond Account | 9,813 | 1,605 | 1,498 | 9,629 | |||||||||
Income Account | 18,397 | 2,049 | 3,743 | 16,085 | |||||||||
International Small Company Fund | 6,270 | 634 | 663 | 4,663 | |||||||||
LargeCap Growth Fund | 10,129 | — | 10,782 | — | |||||||||
LargeCap Value Fund | 22,090 | — | 22,468 | — | |||||||||
Multi-Manager Equity Long/Short Fund | 9,429 | 1,294 | 1,172 | 7,946 | |||||||||
Origin Emerging Markets Fund | 11,948 | 262 | 4,752 | 5,466 | |||||||||
Preferred Securities Fund | 5,083 | 1,288 | 703 | 5,137 | |||||||||
Principal Active Global Dividend Income ETF | 10,584 | — | — | 9,167 | |||||||||
Principal Capital Appreciation Fund | 9,309 | — | 9,529 | — | |||||||||
Principal Government Money Market Fund 2.11% | 509 | 32,647 | 32,359 | 797 | |||||||||
Principal Investment Grade Corporate Active ETF | — | 2,130 | — | 2,084 | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 22,315 | 25,922 | 5,253 | 40,929 | |||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 9,059 | 1,983 | 520 | 9,276 | |||||||||
Short-Term Income Fund | 16,122 | 2,304 | 2,812 | 15,424 | |||||||||
Small-MidCap Dividend Income Fund | 10,164 | — | 10,124 | — | |||||||||
$ | 347,110 | $ | 124,233 | $ | 125,417 | $ | 307,664 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | 5 | $ | (136 | )$ | 2,591 | $ | (2,042 | ) | ||||
Diversified International Fund | 947 | (64 | ) | 2,343 | (13,338 | ) | |||||||
Diversified Real Asset Fund | 400 | (27 | ) | — | (1,386 | ) | |||||||
EDGEMidCap Fund | 298 | 16 | 864 | (2,273 | ) | ||||||||
Equity Income Account | 1,291 | (304 | ) | 3,222 | (7,010 | ) | |||||||
Global Multi-Strategy Fund | 209 | 15 | 110 | (567 | ) | ||||||||
Global Real Estate Securities Fund | 312 | (38 | ) | 76 | (750 | ) | |||||||
Government & High Quality Bond Account | 374 | (107 | ) | — | (184 | ) | |||||||
Income Account | 726 | (142 | ) | — | (476 | ) | |||||||
International Small Company Fund | 147 | 13 | 261 | (1,591 | ) | ||||||||
LargeCap Growth Fund | — | 676 | — | (23 | ) | ||||||||
LargeCap Value Fund | — | (1,414 | ) | — | 1,792 | ||||||||
Multi-Manager Equity Long/Short Fund | 126 | (4 | ) | 787 | (1,601 | ) | |||||||
Origin Emerging Markets Fund | 95 | 843 | — | (2,835 | ) | ||||||||
Preferred Securities Fund | 288 | (35 | ) | — | (496 | ) | |||||||
Principal Active Global Dividend Income ETF | 251 | — | 113 | (1,417 | ) | ||||||||
Principal Capital Appreciation Fund | — | 1,890 | — | (1,670 | ) | ||||||||
Principal Government Money Market Fund 2.11% | 30 | — | — | — | |||||||||
Principal Investment Grade Corporate Active ETF | 52 | — | 2 | (46 | ) | ||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 979 | 25 | — | (2,080 | ) | ||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 120 | 29 | — | (1,275 | ) | ||||||||
Short-Term Income Fund | 365 | (42 | ) | — | (148 | ) | |||||||
Small-MidCap Dividend Income Fund | — | 4,028 | — | (4,068 | ) | ||||||||
$ | 7,015 | $ | 5,222 | $ | 10,369 | $ | (43,484 | ) | |||||
Amounts in thousands |
See accompanying notes.
236
Schedule of Investments | |||||
SAM Flexible Income Portfolio | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 99.94% | Shares Held Value (000's) | ||||
Money Market Funds- 0.89% | |||||
Principal Government Money Market Fund | 1,632,262 | $ | 1,632 | ||
2.11%(a),(b) | |||||
Principal Exchange-Traded Funds - 16.50% | |||||
Principal Active Global Dividend Income ETF(a) | 505,300 | 12,255 | |||
Principal EDGE Active Income ETF(a) | 149,500 | 5,670 | |||
Principal Investment Grade Corporate Active | 243,500 | 5,868 | |||
ETF(a) | |||||
Principal U.S. Mega-Cap Multi-Factor Index | 253,600 | 6,337 | |||
ETF(a) | |||||
$ | 30,130 | ||||
Principal Funds, Inc. Class R-6 - 22.12% | |||||
Blue Chip Fund(a) | 93,375 | 1,887 | |||
EDGEMidCap Fund(a) | 209,601 | 2,515 | |||
Global Diversified Income Fund(a) | 704,792 | 8,979 | |||
Global Real Estate Securities Fund(a) | 764,275 | 6,772 | |||
High Yield Fund(a) | 1,142,564 | 7,655 | |||
Preferred Securities Fund(a) | 978,112 | 9,184 | |||
Real Estate Debt Income Fund(a) | 363,455 | 3,406 | |||
$ | 40,398 | ||||
Principal Funds, Inc. Institutional Class - 19.41% | |||||
Inflation Protection Fund(a) | 1,497,559 | 12,205 | |||
Short-Term Income Fund(a) | 1,936,559 | 23,258 | |||
$ | 35,463 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 41.02% | |||||
Equity Income Account(a) | 492,249 | 11,253 | |||
Government & High Quality Bond Account(a) | 2,217,564 | 21,000 | |||
Income Account(a) | 4,263,902 | 42,682 | |||
$ | 74,935 | ||||
TOTAL INVESTMENT COMPANIES | $ | 182,558 | |||
Total Investments | $ | 182,558 | |||
Other Assets and Liabilities - 0.06% | 117 | ||||
TOTAL NET ASSETS - 100.00% | $ | 182,675 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. | |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Fixed Income Funds | 71.67 | % | |
Domestic Equity Funds | 12.04 | % | |
International Equity Funds | 10.42 | % | |
Specialty Funds | 4.92 | % | |
Investment Companies | 0.89 | % | |
Other Assets and Liabilities | 0.06 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
237
Schedule of Investments | |||||||||||||
SAM Flexible Income Portfolio | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | —$ | 2,262 | $ | —$ | 1,887 | |||||||
Diversified International Fund | 1,251 | — | 1,283 | — | |||||||||
EDGEMidCap Fund | 1,317 | 2,452 | 933 | 2,515 | |||||||||
Equity Income Account | 18,387 | 1,827 | 7,442 | 11,253 | |||||||||
Global Diversified Income Fund | 10,819 | 1,589 | 2,431 | 8,979 | |||||||||
Global Real Estate Securities Fund | 7,724 | 1,320 | 1,769 | 6,772 | |||||||||
Government & High Quality Bond Account | 24,468 | 2,958 | 5,754 | 21,000 | |||||||||
High Yield Fund | 9,653 | 1,188 | 2,294 | 7,655 | |||||||||
Income Account | 56,197 | 5,043 | 16,864 | 42,682 | |||||||||
Inflation Protection Fund | 14,106 | 1,409 | 2,741 | 12,205 | |||||||||
International Emerging Markets Fund | 775 | — | 815 | — | |||||||||
LargeCap Growth Fund | 1,928 | — | 2,050 | — | |||||||||
LargeCap Value Fund | 3,063 | — | 3,115 | — | |||||||||
Preferred Securities Fund | 11,175 | 1,398 | 2,367 | 9,184 | |||||||||
Principal Active Global Dividend Income ETF | 9,660 | 4,537 | — | 12,255 | |||||||||
Principal EDGE Active Income ETF | 6,171 | — | — | 5,670 | |||||||||
Principal Government Money Market Fund 2.11% | 766 | 17,942 | 17,076 | 1,632 | |||||||||
Principal Investment Grade Corporate Active ETF | — | 6,003 | — | 5,868 | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 5,263 | 5,013 | 3,765 | 6,337 | |||||||||
Real Estate Debt Income Fund | 4,065 | 443 | 1,026 | 3,406 | |||||||||
Short-Term Income Fund | 27,645 | 2,358 | 6,429 | 23,258 | |||||||||
Small-MidCap Dividend Income Fund | 3,286 | — | 3,278 | — | |||||||||
$ | 217,719 | $ | 57,742 | $ | 81,432 | $ | 182,558 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | —$ | —$ | 136 | $ | (375 | ) | ||||||
Diversified International Fund | — | 286 | — | (254 | ) | ||||||||
EDGEMidCap Fund | 42 | — | 123 | (321 | ) | ||||||||
Equity Income Account | 295 | 3,106 | 735 | (4,625 | ) | ||||||||
Global Diversified Income Fund | 459 | 10 | — | (1,008 | ) | ||||||||
Global Real Estate Securities Fund | 209 | 29 | 48 | (532 | ) | ||||||||
Government & High Quality Bond Account | 823 | (267 | ) | — | (405 | ) | |||||||
High Yield Fund | 546 | 3 | — | (895 | ) | ||||||||
Income Account | 1,940 | (15 | ) | — | (1,679 | ) | |||||||
Inflation Protection Fund | 355 | (54 | ) | — | (515 | ) | |||||||
International Emerging Markets Fund | — | 226 | — | (186 | ) | ||||||||
LargeCap Growth Fund | — | 195 | — | (73 | ) | ||||||||
LargeCap Value Fund | — | (219 | ) | — | 271 | ||||||||
Preferred Securities Fund | 570 | (87 | ) | — | (935 | ) | |||||||
Principal Active Global Dividend Income ETF | 337 | — | 151 | (1,942 | ) | ||||||||
Principal EDGE Active Income ETF | 279 | — | 51 | (501 | ) | ||||||||
Principal Government Money Market Fund 2.11% | 32 | — | — | — | |||||||||
Principal Investment Grade Corporate Active ETF | 154 | — | 5 | (135 | ) | ||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 175 | 89 | — | (263 | ) | ||||||||
Real Estate Debt Income Fund | 146 | (31 | ) | — | (45 | ) | |||||||
Short-Term Income Fund | 591 | (89 | ) | — | (227 | ) | |||||||
Small-MidCap Dividend Income Fund | — | 1,345 | — | (1,353 | ) | ||||||||
$ | 6,953 | $ | 4,527 | $ | 1,249 | $ | (15,998 | ) | |||||
Amounts in thousands |
See accompanying notes.
238
Schedule of Investments | |||||
SAM Strategic Growth Portfolio | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 99.87% | Shares Held Value (000's) | ||||
Money Market Funds- 0.31% | |||||
Principal Government Money Market Fund | 797,523 | $ | 798 | ||
2.11%(a),(b) | |||||
Principal Exchange-Traded Funds - 27.35% | |||||
Principal Active Global Dividend Income ETF(a) | 578,000 | 14,018 | |||
Principal EDGE Active Income ETF(a) | 302,600 | 11,476 | |||
Principal U.S. Mega-Cap Multi-Factor Index | 1,356,500 | 33,899 | |||
ETF(a) | |||||
Principal U.S. Small-Cap Multi-Factor Index | 374,100 | 10,392 | |||
ETF(a) | |||||
$ | 69,785 | ||||
Principal Funds, Inc. Class R-6 - 32.24% | |||||
Blue Chip Fund(a) | 1,871,184 | 37,817 | |||
EDGEMidCap Fund(a) | 1,366,166 | 16,394 | |||
Global Real Estate Securities Fund(a) | 1,675,037 | 14,841 | |||
International Small Company Fund(a) | 483,736 | 4,479 | |||
Origin Emerging Markets Fund(a) | 940,835 | 8,731 | |||
$ | 82,262 | ||||
Principal Funds, Inc. Institutional Class - 21.10% | |||||
Diversified International Fund(a) | 4,547,577 | 48,705 | |||
Short-Term Income Fund(a) | 426,410 | 5,121 | |||
$ | 53,826 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 18.87% | |||||
Equity Income Account(a) | 2,106,060 | 48,144 | |||
TOTAL INVESTMENT COMPANIES | $ | 254,815 | |||
Total Investments | $ | 254,815 | |||
Other Assets and Liabilities - 0.13% | 334 | ||||
TOTAL NET ASSETS - 100.00% | $ | 255,149 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the Investment |
Company Act of 1940 (controls 5.0% or more of the outstanding votingshares of the security). Please see affiliated sub-schedule for transactionalinformation. | |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 57.47 | % | |
International Equity Funds | 35.58 | % | |
Fixed Income Funds | 6.51 | % | |
Investment Companies | 0.31 | % | |
Other Assets and Liabilities | 0.13 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
239
Schedule of Investments | |||||||||||||
SAM Strategic Growth Portfolio | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 12,466 | $ | 32,392 | $ | 3,039 | $ | 37,817 | |||||
Diversified International Fund | 60,383 | 7,649 | 5,691 | 48,705 | |||||||||
EDGEMidCap Fund | 11,747 | 8,983 | 2,127 | 16,394 | |||||||||
Equity Income Account | 33,486 | 25,336 | 3,970 | 48,144 | |||||||||
Global Multi-Strategy Fund | 4,775 | 322 | 5,058 | — | |||||||||
Global Real Estate Securities Fund | 12,881 | 4,602 | 1,509 | 14,841 | |||||||||
International Small Company Fund | 6,073 | 667 | 720 | 4,479 | |||||||||
LargeCap Growth Fund | 11,883 | — | 12,665 | — | |||||||||
LargeCap Value Fund | 16,785 | — | 17,065 | — | |||||||||
Multi-Manager Equity Long/Short Fund | 6,802 | 266 | 7,050 | — | |||||||||
Origin Emerging Markets Fund | 18,759 | 843 | 7,533 | 8,731 | |||||||||
Principal Active Global Dividend Income ETF | 13,944 | 2,273 | — | 14,018 | |||||||||
Principal Capital Appreciation Fund | 21,273 | — | 21,768 | — | |||||||||
Principal EDGE Active Income ETF | 10,662 | 1,797 | — | 11,476 | |||||||||
Principal Government Money Market Fund 2.11% | 253 | 28,861 | 28,316 | 798 | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 18,441 | 21,283 | 4,122 | 33,899 | |||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 11,346 | 1,179 | 634 | 10,392 | |||||||||
Real Estate Debt Income Fund | 6,955 | 595 | 7,441 | — | |||||||||
Short-Term Income Fund | 5,094 | 713 | 625 | 5,121 | |||||||||
Small-MidCap Dividend Income Fund | 6,399 | — | 6,372 | — | |||||||||
$ | 290,407 | $ | 137,761 | $ | 135,705 | $ | 254,815 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | 5 | $ | (102 | )$ | 2,743 | $ | (3,900 | ) | ||||
Diversified International Fund | 966 | (95 | ) | 2,386 | (13,541 | ) | |||||||
EDGEMidCap Fund | 276 | (63 | ) | 798 | (2,146 | ) | |||||||
Equity Income Account | 1,066 | (213 | ) | 2,660 | (6,495 | ) | |||||||
Global Multi-Strategy Fund | — | 124 | — | (163 | ) | ||||||||
Global Real Estate Securities Fund | 431 | 4 | 104 | (1,137 | ) | ||||||||
International Small Company Fund | 142 | 17 | 252 | (1,558 | ) | ||||||||
LargeCap Growth Fund | — | 901 | — | (119 | ) | ||||||||
LargeCap Value Fund | — | (1,519 | ) | — | 1,799 | ||||||||
Multi-Manager Equity Long/Short Fund | — | 505 | — | (523 | ) | ||||||||
Origin Emerging Markets Fund | 153 | 960 | — | (4,298 | ) | ||||||||
Principal Active Global Dividend Income ETF | 354 | — | 172 | (2,199 | ) | ||||||||
Principal Capital Appreciation Fund | — | 4,295 | — | (3,800 | ) | ||||||||
Principal EDGE Active Income ETF | 523 | — | 103 | (983 | ) | ||||||||
Principal Government Money Market Fund 2.11% | 35 | — | — | — | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 809 | 23 | — | (1,726 | ) | ||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 131 | 107 | — | (1,606 | ) | ||||||||
Real Estate Debt Income Fund | 164 | (123 | ) | — | 14 | ||||||||
Short-Term Income Fund | 117 | (8 | ) | — | (53 | ) | |||||||
Small-MidCap Dividend Income Fund | — | 2,636 | — | (2,663 | ) | ||||||||
$ | 5,172 | $ | 7,449 | $ | 9,218 | $ | (45,097 | ) | |||||
Amounts in thousands |
See accompanying notes.
240
Schedule of Investments | |||||||||||
Short-Term Income Account | |||||||||||
December 31, 2018 | |||||||||||
INVESTMENT COMPANIES - 3.17% | Shares Held Value (000's) | Principal | |||||||||
Money Market Funds- 3.17% | BONDS (continued) | Amount (000’s) Value (000’s) | |||||||||
Principal Government Money Market Fund | 4,856,251 | $ | 4,856 | Automobile Asset Backed Securities (continued) | |||||||
2.11%(a),(b) | CPS Auto Trust | ||||||||||
TOTAL INVESTMENT COMPANIES | $ | 4,856 | 1.68%, 08/17/2020(c) | $ | 64 | $ | 64 | ||||
Principal | 2.87%, 09/15/2021(c) | 386 | 386 | ||||||||
BONDS - 95.81% | Amount (000's) Value (000's) | Ford Credit Auto Owner Trust 2015-REV2 | |||||||||
Aerospace & Defense- 1.19% | 2.44%, 01/15/2027(c) | 173 | 172 | ||||||||
General Dynamics Corp | Ford Credit Auto Owner Trust 2016-REV2 | ||||||||||
2.88%, 05/11/2020 | $ | 200 | $ | 200 | 2.03%, 12/15/2027(c) | 750 | 732 | ||||
3.00%, 05/11/2021 | 250 | 250 | Ford Credit Auto Owner Trust 2017-REV1 | ||||||||
Northrop Grumman Corp | 2.62%, 08/15/2028(c) | 500 | 493 | ||||||||
2.08%, 10/15/2020 | 150 | 147 | Ford Credit Auto Owner Trust/Ford Credit | ||||||||
2.55%, 10/15/2022 | 250 | 242 | 3.47%, 01/15/2030(c) | 400 | 404 | ||||||
Rockwell Collins Inc | Ford Credit Auto Owner Trust/Ford Credit | ||||||||||
3.20%, 03/15/2024 | 250 | 241 | 2014-REV1 | ||||||||
United Technologies Corp | 2.26%, 11/15/2025(c) | 173 | 172 | ||||||||
1.50%, 11/01/2019 | 400 | 395 | OneMain Direct Auto Receivables Trust 2017-2 | ||||||||
1.90%, 05/04/2020 | 350 | 344 | 2.31%, 12/14/2021(c) | 670 | 666 | ||||||
$ | 1,819 | OneMain Direct Auto Receivables Trust 2018-1 | |||||||||
Airlines - 0.59% | 3.43%, 12/16/2024(c) | 500 | 501 | ||||||||
American Airlines 2013-2 Class A Pass Through | Santander Drive Auto Receivables Trust 2015-1 | ||||||||||
Trust | 2.57%, 04/15/2021 | 28 | 28 | ||||||||
4.95%, 07/15/2024 | 340 | 345 | Santander Drive Auto Receivables Trust 2015-2 | ||||||||
Continental Airlines 2009-2 Class A Pass Through | 2.44%, 04/15/2021 | 66 | 66 | ||||||||
Trust | Santander Drive Auto Receivables Trust 2018-1 | ||||||||||
7.25%, 05/10/2021 | 187 | 192 | 2.10%, 11/16/2020 | 68 | 68 | ||||||
Delta Air Lines 2009-1 Class A Pass Through | Santander Drive Auto Receivables Trust 2018-2 | ||||||||||
Trust | 2.58%, 10/15/2020 | 363 | 362 | ||||||||
7.75%, 06/17/2021 | 130 | 134 | Santander Drive Auto Receivables Trust 2018-3 | ||||||||
Delta Air Lines 2012-1 Class A Pass Through | 2.78%, 03/15/2021 | 387 | 387 | ||||||||
Trust | Santander Drive Auto Receivables Trust 2018-4 | ||||||||||
4.75%, 11/07/2021 | 238 | 241 | 2.73%, 04/15/2021 | 200 | 200 | ||||||
$ | 912 | 3.01%, 03/15/2022 | 200 | 200 | |||||||
Automobile Asset Backed Securities - 7.67% | Santander Drive Auto Receivables Trust 2018-5 | ||||||||||
AmeriCredit Automobile Receivables Trust | 2.97%, 07/15/2021 | 400 | 400 | ||||||||
2014-2 | TCF Auto Receivables Owner Trust 2016-PT1 | ||||||||||
2.57%, 07/08/2020 | 354 | 354 | 1.93%, 06/15/2022(c) | 350 | 346 | ||||||
AmeriCredit Automobile Receivables Trust | Westlake Automobile Receivables Trust 2016-3 | ||||||||||
2014-3 | 2.07%, 12/15/2021(c) | 102 | 102 | ||||||||
2.58%, 09/08/2020 | 12 | 12 | Westlake Automobile Receivables Trust 2017-2 | ||||||||
AmeriCredit Automobile Receivables Trust | 1.80%, 07/15/2020(c) | 70 | 70 | ||||||||
2017-4 | Westlake Automobile Receivables Trust 2018-1 | ||||||||||
1.83%, 05/18/2021 | 107 | 107 | 2.24%, 12/15/2020(c) | 281 | 280 | ||||||
AmericreditAutomobile Receivables Trust 2018-1 | Westlake Automobile Receivables Trust 2018-2 | ||||||||||
3.07%, 12/19/2022 | 250 | 250 | 2.84%, 09/15/2021(c) | 180 | 180 | ||||||
AmericreditAutomobile Receivables Trust 2018-2 | 3.20%, 01/16/2024(c) | 200 | 199 | ||||||||
3.15%, 03/20/2023 | 200 | 201 | Westlake Automobile Receivables Trust 2018-3 | ||||||||
AmericreditAutomobile Receivables Trust 2018-3 | 2.98%, 01/18/2022(c) | 300 | 300 | ||||||||
3.11%, 01/18/2022 | 500 | 500 | 3.32%, 10/16/2023(c) | 300 | 301 | ||||||
Bank of The West Auto Trust 2017-1 | World Omni Select Auto Trust 2018-1 | ||||||||||
1.78%, 02/15/2021(c) | 114 | 113 | 3.24%, 04/15/2022(c) | 300 | 300 | ||||||
Bank of The West Auto Trust 2018-1 | $ | 11,753 | |||||||||
3.09%, 04/15/2021(c) | 400 | 400 | Automobile Floor Plan Asset Backed Securities - 1.76% | ||||||||
Capital Auto Receivables Asset Trust 2017-1 | Ally Master Owner Trust | ||||||||||
1.76%, 06/22/2020(c) | 118 | 117 | 2.70%, 01/17/2023 | 500 | 496 | ||||||
Capital Auto Receivables Asset Trust 2018-1 | 3.29%, 05/15/2023 | 500 | 503 | ||||||||
2.54%, 10/20/2020(c) | 479 | 478 | BMW Floorplan Master Owner Trust | ||||||||
Capital Auto Receivables Asset Trust 2018-2 | 2.78%, 05/15/2023(c) | 250 | 250 | ||||||||
3.02%, 02/22/2021(c) | 500 | 500 | 1.00 x 1 Month USD LIBOR + 0.32% | ||||||||
3.27%, 06/20/2023(c) | 250 | 250 | Ford Credit Floorplan Master Owner Trust A | ||||||||
CPS Auto Receivables Trust 2014-C | 2.86%, 10/15/2023 | 250 | 249 | ||||||||
3.77%, 08/17/2020(c) | 138 | 138 | 1.00 x 1 Month USD LIBOR + 0.40% | ||||||||
CPS Auto Receivables Trust 2017-D | 2.92%, 11/15/2021 | 300 | 300 | ||||||||
1.87%, 03/15/2021(c) | 61 | 61 | 1.00 x 1 Month USD LIBOR + 0.46% | ||||||||
CPS Auto Receivables Trust 2018-A | Navistar Financial Dealer Note Master Owner | ||||||||||
2.16%, 05/17/2021(c) | 116 | 116 | Trust II | ||||||||
CPS Auto Receivables Trust 2018-B | 3.14%, 09/25/2023(c) | 250 | 250 | ||||||||
2.72%, 09/15/2021(c) | 245 | 244 | 1.00 x 1 Month USD LIBOR + 0.63% | ||||||||
CPS Auto Receivables Trust 2018-D | |||||||||||
3.06%, 01/18/2022(c) | 533 | 533 |
See accompanying notes.
241
Schedule of Investments | |||||||||||
Short-Term Income Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Automobile Floor Plan Asset Backed Securities (continued) | Banks (continued) | ||||||||||
Volvo Financial Equipment Master Owner Trust | Fifth Third Bank/Cincinnati OH | ||||||||||
2.96%, 11/15/2022(c) | $ | 250 | $ | 251 | 1.63%, 09/27/2019 | $ | 250 | $ | 247 | ||
1.00 x 1 Month USD LIBOR + 0.50% | 2.25%, 06/14/2021 | 300 | 293 | ||||||||
2.98%, 07/17/2023(c) | 400 | 404 | Goldman Sachs GroupInc/The | ||||||||
1.00 x 1 Month USD LIBOR + 0.52% | 2.30%, 12/13/2019 | 400 | 396 | ||||||||
$ | 2,703 | 3.00%, 04/26/2022 | 800 | 775 | |||||||
Automobile Manufacturers - 1.53% | 3.62%, 04/26/2022 | 1,000 | 989 | ||||||||
Daimler Finance North America LLC | 3 Month USD LIBOR + 1.11% | ||||||||||
1.75%, 10/30/2019(c) | 350 | 345 | 3.64%, 04/23/2020 | 400 | 401 | ||||||
Ford Motor Credit Co LLC | 3 Month USD LIBOR + 1.16% | ||||||||||
2.02%, 05/03/2019 | 400 | 399 | 4.46%, 02/25/2021 | 400 | 406 | ||||||
General Motors Financial CoInc | 3 Month USD LIBOR + 1.77% | ||||||||||
3.26%, 04/09/2021 | 300 | 293 | HSBC Holdings PLC | ||||||||
3 Month USD LIBOR + 0.85% | 3.64%, 05/18/2024 | 250 | 244 | ||||||||
4.15%, 06/19/2023 | 150 | 146 | 3 Month USD LIBOR + 1.00% | ||||||||
PACCAR Financial Corp | ING Groep NV | ||||||||||
2.20%, 09/15/2019 | 323 | 321 | 3.15%, 03/29/2022 | 450 | 442 | ||||||
3.10%, 05/10/2021 | 250 | 249 | 3.95%, 03/29/2022 | 250 | 250 | ||||||
Toyota Motor Credit Corp | 3 Month USD LIBOR + 1.15% | ||||||||||
2.10%, 01/17/2019 | 200 | 200 | JPMorgan Chase & Co | ||||||||
2.60%, 01/11/2022 | 400 | 394 | 2.30%, 08/15/2021 | 250 | 244 | ||||||
$ | 2,347 | 3.39%, 04/25/2023 | 1,500 | 1,478 | |||||||
Banks - 19.63% | 3 Month USD LIBOR + 0.90% | ||||||||||
Bank of America Corp | 3.72%, 10/24/2023 | 500 | 500 | ||||||||
2.50%, 10/21/2022 | 500 | 481 | 3 Month USD LIBOR + 1.23% | ||||||||
2.63%, 10/19/2020 | 250 | 247 | 4.25%, 10/15/2020 | 750 | 764 | ||||||
3.00%, 12/20/2023(d) | 430 | 418 | KeyBank NA/Cleveland OH | ||||||||
3 Month USD LIBOR + 0.79% | 2.35%, 03/08/2019 | 650 | 649 | ||||||||
3.63%, 01/20/2023 | 1,350 | 1,349 | 2.40%, 06/09/2022 | 400 | 387 | ||||||
3 Month USD LIBOR + 1.16% | Morgan Stanley | ||||||||||
4.20%, 08/26/2024 | 500 | 496 | 3.17%, 02/10/2021 | 500 | 494 | ||||||
Bank of New York Mellon Corp/The | 3 Month USD LIBOR + 0.55% | ||||||||||
2.20%, 05/15/2019 | 673 | 671 | 3.87%, 04/21/2021 | 600 | 603 | ||||||
2.50%, 04/15/2021 | 300 | 296 | 3 Month USD LIBOR + 1.40% | ||||||||
3.57%, 10/30/2023 | 500 | 501 | 3.89%, 10/24/2023 | 1,400 | 1,393 | ||||||
3 Month USD LIBOR + 1.05% | 3 Month USD LIBOR + 1.40% | ||||||||||
BB&T Corp | 4.10%, 05/22/2023 | 300 | 300 | ||||||||
2.05%, 05/10/2021 | 200 | 195 | PNC Bank NA | ||||||||
3.05%, 04/01/2022 | 100 | 100 | 2.00%, 05/19/2020 | 500 | 492 | ||||||
3 Month USD LIBOR + 0.65% | 2.70%, 11/01/2022 | 600 | 583 | ||||||||
3.20%, 02/01/2019 | 336 | 336 | 3.01%, 07/27/2022 | 400 | 396 | ||||||
3 Month USD LIBOR + 0.66% | 3 Month USD LIBOR + 0.50% | ||||||||||
BNP Paribas SA | PNC Financial Services GroupInc/The | ||||||||||
3.50%, 03/01/2023(c) | 500 | 485 | 3.90%, 04/29/2024 | 150 | 149 | ||||||
Branch Banking & Trust Co | State Street Corp | ||||||||||
2.10%, 01/15/2020 | 600 | 594 | 3.10%, 05/15/2023 | 688 | 676 | ||||||
2.63%, 01/15/2022 | 600 | 589 | SunTrust Bank/Atlanta GA | ||||||||
Capital One NA | 2.25%, 01/31/2020 | 400 | 395 | ||||||||
3.54%, 09/13/2019 | 500 | 501 | 2.45%, 08/01/2022 | 600 | 578 | ||||||
3 Month USD LIBOR + 0.77% | 3.15%, 08/02/2022 | 250 | 247 | ||||||||
3.67%, 01/30/2023 | 600 | 593 | 3 Month USD LIBOR + 0.59% | ||||||||
3 Month USD LIBOR + 1.15% | SunTrust BanksInc | ||||||||||
CitigroupInc | 2.90%, 03/03/2021 | 500 | 496 | ||||||||
2.70%, 03/30/2021 | 900 | 887 | UBS AG/London | ||||||||
3.45%, 04/25/2022 | 200 | 197 | 2.20%, 06/08/2020(c) | 250 | 246 | ||||||
3 Month USD LIBOR + 0.96% | 3.35%, 06/08/2020(c) | 250 | 250 | ||||||||
3.50%, 05/15/2023 | 250 | 245 | 3 Month USD LIBOR + 0.58% | ||||||||
3.74%, 05/17/2024 | 250 | 244 | UBS Group Funding Switzerland AG | ||||||||
3 Month USD LIBOR + 1.10% | 3.49%, 05/23/2023(c) | 300 | 293 | ||||||||
4.00%, 08/05/2024 | 274 | 271 | US Bancorp | ||||||||
Credit Suisse Group AG | 3.60%, 09/11/2024 | 650 | 647 | ||||||||
4.02%, 06/12/2024(c) | 250 | 246 | US Bank NA/Cincinnati OH | ||||||||
3 Month USD LIBOR + 1.24% | 2.00%, 01/24/2020 | 400 | 396 | ||||||||
4.21%, 06/12/2024(c),(d) | 250 | 249 | 2.05%, 10/23/2020 | 300 | 295 | ||||||
3 Month USD LIBOR + 1.24% | Wells Fargo & Co | ||||||||||
Fifth Third Bancorp | 3.60%, 01/24/2023 | 1,000 | 990 | ||||||||
2.60%, 06/15/2022 | 600 | 584 | 3 Month USD LIBOR + 1.11% | ||||||||
4.30%, 01/16/2024 | 400 | 405 |
See accompanying notes.
242
Schedule of Investments | ||||||||||||
Short-Term Income Account | ||||||||||||
December 31, 2018 | ||||||||||||
Principal | Principal | |||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | |||||||||
Banks (continued) | Computers - 1.10% | |||||||||||
Wells Fargo Bank NA | Apple Inc | |||||||||||
2.98%, 07/23/2021 | $ | 500 | $ | 497 | 1.90%, 02/07/2020 | $ | 200 | $ | 198 | |||
3 Month USD LIBOR + 0.50% | 2.50%, 02/09/2022 | 400 | 394 | |||||||||
$ | 30,061 | Dell International LLC / EMC Corp | ||||||||||
Beverages - 0.93% | 3.48%, 06/01/2019(c) | 600 | 598 | |||||||||
Anheuser-BuschInBev Finance Inc | International Business Machines Corp | |||||||||||
3.30%, 02/01/2023 | 400 | 389 | 2.25%, 02/19/2021 | 500 | 490 | |||||||
Anheuser-BuschInBev Worldwide Inc | $ | 1,680 | ||||||||||
3.17%, 01/12/2024 | 150 | 145 | Consumer Products - 0.26% | |||||||||
3 Month USD LIBOR + 0.74% | Reckitt Benckiser Treasury Services PLC | |||||||||||
KeurigDr Pepper Inc | 3.38%, 06/24/2022(c) | 400 | 393 | |||||||||
3.55%, 05/25/2021(c) | 250 | 250 | 3 Month USD LIBOR + 0.56% | |||||||||
4.06%, 05/25/2023(c) | 100 | 100 | Credit Card Asset Backed Securities - 0.20% | |||||||||
PepsiCo Inc | Capital One Multi-Asset Execution Trust | |||||||||||
1.35%, 10/04/2019 | 350 | 346 | 2.97%, 09/16/2024 | 300 | 301 | |||||||
2.15%, 10/14/2020 | 200 | 197 | 1.00 x 1 Month USD LIBOR + 0.51% | |||||||||
$ | 1,427 | Diversified Financial Services- 1.03% | ||||||||||
Biotechnology- 1.53% | American Express Co | |||||||||||
AmgenInc | 3.70%, 11/05/2021 | 150 | 151 | |||||||||
2.20%, 05/22/2019 | 373 | 372 | GE Capital International Funding Co Unlimited | |||||||||
2.20%, 05/11/2020 | 200 | 198 | Co | |||||||||
2.65%, 05/11/2022 | 400 | 391 | 2.34%, 11/15/2020 | 750 | 724 | |||||||
BiogenInc | GTP Acquisition Partners I LLC | |||||||||||
2.90%, 09/15/2020 | 500 | 496 | 2.35%, 06/15/2045(c) | 721 | 710 | |||||||
Celgene Corp | $ | 1,585 | ||||||||||
3.25%, 08/15/2022 | 250 | 246 | Electric - 3.83% | |||||||||
3.63%, 05/15/2024 | 350 | 341 | Alabama Power Co | |||||||||
Gilead SciencesInc | 2.45%, 03/30/2022 | 250 | 243 | |||||||||
1.85%, 09/20/2019 | 300 | 297 | Alliant Energy Finance LLC | |||||||||
$ | 2,341 | 3.75%, 06/15/2023(c) | 150 | 151 | ||||||||
Building Materials - 0.19% | Black Hills Corp | |||||||||||
Martin Marietta Materials Inc | 4.25%, 11/30/2023 | 500 | 504 | |||||||||
3.29%, 12/20/2019 | 300 | 299 | CenterPoint EnergyInc | |||||||||
3 Month USD LIBOR + 0.50% | 3.60%, 11/01/2021 | 300 | 301 | |||||||||
Chemicals - 0.68% | Dominion EnergyInc | |||||||||||
Air Liquide Finance SA | 2.58%, 07/01/2020 | 200 | 197 | |||||||||
1.75%, 09/27/2021(c) | 250 | 239 | 2.96%, 07/01/2019(f) | 650 | 648 | |||||||
Chevron Phillips Chemical Co LLC / Chevron | Duke Energy Florida LLC | |||||||||||
Phillips Chemical Co LP | 1.85%, 01/15/2020 | 400 | 396 | |||||||||
2.45%, 05/01/2020(c) | 168 | 166 | 3.10%, 08/15/2021 | 250 | 250 | |||||||
3.30%, 05/01/2023(c) | 200 | 198 | Emera US Finance LP | |||||||||
DowDuPont Inc | 2.70%, 06/15/2021 | 300 | 292 | |||||||||
3.82%, 11/15/2023 | 250 | 246 | Exelon Corp | |||||||||
3 Month USD LIBOR + 1.11% | 3.50%, 06/01/2022 | 500 | 489 | |||||||||
International Flavors & FragrancesInc | Fortis Inc/Canada | |||||||||||
3.40%, 09/25/2020 | 100 | 100 | 2.10%, 10/04/2021 | 633 | 608 | |||||||
Westlake Chemical Corp | Indiantown Cogeneration LP | |||||||||||
3.60%, 07/15/2022 | 100 | 99 | 9.77%, 12/15/2020 | 134 | 142 | |||||||
$ | 1,048 | San Diego Gas & Electric Co | ||||||||||
Commercial Mortgage Backed Securities - 1.13% | 1.91%, 02/01/2022 | 101 | 99 | |||||||||
GinnieMae | Sempra Energy | |||||||||||
0.49%, 09/16/2055(e),(f) | 2,951 | 93 | 2.40%, 02/01/2020 | 250 | 247 | |||||||
0.70%, 01/16/2054(e),(f) | 2,669 | 92 | 2.94%, 01/15/2021 | 500 | 492 | |||||||
0.76%, 10/16/2054(e),(f) | 3,439 | 113 | 3 Month USD LIBOR + 0.50% | |||||||||
0.84%, 02/16/2055(e),(f) | 5,452 | 178 | Southern California Edison Co | |||||||||
0.87%, 01/16/2055(e),(f) | 5,599 | 224 | 1.85%, 02/01/2022 | 207 | 201 | |||||||
1.06%, 06/16/2045(e),(f) | 1,443 | 80 | Texas-New Mexico Power Co | |||||||||
1.37%, 12/16/2036(e),(f) | 2,050 | 109 | 9.50%, 04/01/2019(c) | 202 | 205 | |||||||
GS Mortgage Securities Trust 2017-GS6 | WEC Energy GroupInc | |||||||||||
1.95%, 05/10/2050 | 488 | 477 | 3.38%, 06/15/2021 | 400 | 400 | |||||||
JPMDB Commercial Mortgage Securities Trust | $ | 5,865 | ||||||||||
2016- | C4 | Electronics - 0.59% | ||||||||||
1.54%, 12/15/2049 | 373 | 363 | Fortive Corp | |||||||||
$ | 1,729 | 1.80%, 06/15/2019 | 35 | 35 | ||||||||
2.35%, 06/15/2021 | 300 | 292 | ||||||||||
Honeywell InternationalInc | ||||||||||||
1.85%, 11/01/2021 | 600 | 580 | ||||||||||
$ | 907 |
See accompanying notes.
243
Schedule of Investments Short-Term Income Account December 31, 2018
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Finance - Mortgage Loan/Banker - 11.22% | Insurance (continued) | ||||||||||
Fannie Mae | MassMutual Global Funding II | ||||||||||
1.38%, 10/07/2021 | $ | 650 | $ | 631 | 1.55%, 10/11/2019(c) | $ | 350 | $ | 346 | ||
1.88%, 04/05/2022 | 3,000 | 2,940 | 2.00%, 04/15/2021(c) | 450 | 438 | ||||||
2.00%, 01/05/2022 | 1,000 | 985 | 2.35%, 04/09/2019(c) | 865 | 864 | ||||||
2.38%, 01/19/2023 | 4,000 | 3,970 | Metropolitan Life Global Funding I | ||||||||
2.75%, 06/22/2021 | 1,225 | 1,232 | 1.95%, 09/15/2021(c) | 470 | 454 | ||||||
2.88%, 10/30/2020 | 800 | 804 | 2.30%, 04/10/2019(c) | 573 | 572 | ||||||
2.88%, 09/12/2023 | 1,600 | 1,619 | 3.03%, 09/07/2020(c) | 250 | 248 | ||||||
Freddie Mac | United States Secured Overnight Financing | ||||||||||
2.38%, 02/16/2021 | 500 | 498 | Rate + 0.57% | ||||||||
2.38%, 01/13/2022 | 1,000 | 996 | 3.18%, 06/12/2020(c) | 250 | 250 | ||||||
2.50%, 04/23/2020 | 2,000 | 1,997 | 3 Month USD LIBOR + 0.40% | ||||||||
2.75%, 06/19/2023 | 1,500 | 1,509 | New York Life Global Funding | ||||||||
$ | 17,181 | 1.95%, 02/11/2020(c) | 400 | 395 | |||||||
Food - 1.29% | 2.00%, 04/13/2021(c) | 400 | 390 | ||||||||
ConagraBrands Inc | 2.15%, 06/18/2019(c) | 124 | 123 | ||||||||
3.22%, 10/22/2020 | 250 | 249 | 3.29%, 06/10/2022(c) | 1,000 | 986 | ||||||
3 Month USD LIBOR + 0.75% | 3 Month USD LIBOR + 0.52% | ||||||||||
3.80%, 10/22/2021 | 100 | 100 | $ | 7,073 | |||||||
Kraft Heinz Foods Co | Internet - 0.49% | ||||||||||
3.19%, 02/10/2021 | 400 | 397 | Amazon.comInc | ||||||||
3 Month USD LIBOR + 0.57% | 2.40%, 02/22/2023 | 500 | 484 | ||||||||
4.00%, 06/15/2023 | 150 | 150 | 2.60%, 12/05/2019 | 273 | 272 | ||||||
Mondelez International Holdings Netherlands BV | $ | 756 | |||||||||
1.63%, 10/28/2019(c) | 500 | 493 | Machinery - Construction & Mining- 0.32% | ||||||||
Tyson FoodsInc | Caterpillar Financial Services Corp | ||||||||||
2.25%, 08/23/2021 | 150 | 145 | 2.55%, 11/29/2022 | 500 | 486 | ||||||
3.10%, 08/21/2020 | 200 | 197 | Machinery - Diversified- 0.39% | ||||||||
3 Month USD LIBOR + 0.45% | John Deere Capital Corp | ||||||||||
3.16%, 05/30/2019 | 250 | 250 | 2.05%, 03/10/2020 | 350 | 346 | ||||||
3 Month USD LIBOR + 0.45% | 3.32%, 06/07/2023 | 250 | 246 | ||||||||
$ | 1,981 | 3 Month USD LIBOR + 0.55% | |||||||||
Healthcare - Products- 0.49% | $ | 592 | |||||||||
Medtronic Global Holdings SCA | Media - 0.98% | ||||||||||
1.70%, 03/28/2019 | 500 | 499 | Comcast Corp | ||||||||
Medtronic Inc | 2.85%, 10/01/2021 | 250 | 247 | ||||||||
2.50%, 03/15/2020 | 250 | 249 | 3 Month USD LIBOR + 0.44% | ||||||||
$ | 748 | 3.30%, 10/01/2020 | 250 | 251 | |||||||
Healthcare - Services- 0.44% | Time Warner Cable LLC | ||||||||||
HumanaInc | 8.25%, 04/01/2019 | 505 | 511 | ||||||||
2.50%, 12/15/2020 | 100 | 98 | Walt Disney Co/The | ||||||||
Roche HoldingsInc | 1.95%, 03/04/2020 | 500 | 495 | ||||||||
3.14%, 09/30/2019(c) | 323 | 323 | $ | 1,504 | |||||||
3 Month USD LIBOR + 0.34% | Mining - 0.13% | ||||||||||
UnitedHealth GroupInc | Glencore Funding LLC | ||||||||||
1.95%, 10/15/2020 | 250 | 246 | 4.13%, 05/30/2023(c) | 200 | 196 | ||||||
$ | 667 | Miscellaneous Manufacturers - 0.81% | |||||||||
Home Equity Asset Backed Securities- 0.01% | General Electric Co | ||||||||||
RASC Series 2005-AHL2 Trust | 5.50%, 01/08/2020 | 150 | 152 | ||||||||
2.86%, 10/25/2035 | 18 | 18 | Ingersoll-Rand Global Holding Co Ltd | ||||||||
1.00 x 1 Month USD LIBOR + 0.35% | 2.90%, 02/21/2021 | 500 | 495 | ||||||||
Housewares- 0.26% | Siemens Financieringsmaatschappij NV | ||||||||||
Newell Brands Inc | 2.20%, 03/16/2020(c) | 350 | 346 | ||||||||
2.60%, 03/29/2019 | 200 | 200 | 3.40%, 03/16/2022(c) | 250 | 250 | ||||||
3.85%, 04/01/2023 | 200 | 197 | 3 Month USD LIBOR + 0.61% | ||||||||
$ | 397 | $ | 1,243 | ||||||||
Insurance - 4.62% | Mortgage Backed Securities - 6.04% | ||||||||||
Allstate Corp/The | Alternative Loan Trust 2004-J8 | ||||||||||
3.43%, 03/29/2023 | 250 | 245 | 6.00%, 02/25/2017 | 4 | 4 | ||||||
3 Month USD LIBOR + 0.63% | Banc of America Funding 2004-1 Trust | ||||||||||
Berkshire Hathaway Finance Corp | 5.25%, 02/25/2019 | 1 | 1 | ||||||||
1.70%, 03/15/2019 | 500 | 499 | Banc of America Funding 2004-3 Trust | ||||||||
Berkshire HathawayInc | 4.75%, 09/25/2019 | 1 | 1 | ||||||||
2.75%, 03/15/2023 | 500 | 491 | CHL Mortgage Pass-Through Trust 2003-46 | ||||||||
Five Corners Funding Trust | 4.28%, 01/19/2034(f) | 35 | 35 | ||||||||
4.42%, 11/15/2023(c) | 750 | 772 | CHL Mortgage Pass-Through Trust 2004-J7 | ||||||||
5.00%, 09/25/2019 | 1 | 1 |
See accompanying notes.
244
Schedule of Investments | |||||||||||
Short-Term Income Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Mortgage Backed Securities (continued) | Mortgage Backed Securities (continued) | ||||||||||
Credit Suisse First Boston Mortgage Securities | Sequoia Mortgage Trust 2018-6 | ||||||||||
Corp | 4.00%, 07/25/2048(c),(f) | $ | 197 | $ | 198 | ||||||
5.00%, 09/25/2019 | $ | 2 | $ | 2 | Sequoia Mortgage Trust 2018-7 | ||||||
CSFB Mortgage-Backed Pass-Through | 4.00%, 09/25/2048(c),(f) | 240 | 243 | ||||||||
Certificates Series 2004-AR4 | Sequoia Mortgage Trust 2018-8 | ||||||||||
3.47%, 05/25/2034 | 20 | 20 | 4.00%, 11/25/2048(c),(f) | 733 | 736 | ||||||
1.00 x 1 Month USD LIBOR + 0.96% | Sequoia Mortgage Trust 2018-CH3 | ||||||||||
CSFB Mortgage-Backed Trust Series 2004-7 | 4.00%, 08/25/2048(c),(f) | 214 | 215 | ||||||||
5.00%, 10/25/2019 | 4 | 4 | Wells Fargo Mortgage Backed Securities 2018-1 | ||||||||
CSMC 2017-HL2 Trust | 3.50%, 07/25/2047(c),(f) | 395 | 391 | ||||||||
3.50%, 10/25/2047(c),(f) | 434 | 429 | $ | 9,245 | |||||||
JP Morgan Mortgage Trust 2004-A3 | Oil & Gas- 1.47% | ||||||||||
4.28%, 07/25/2034(f) | 22 | 22 | BP Capital Markets PLC | ||||||||
JP Morgan Mortgage Trust 2004-S1 | 4.75%, 03/10/2019 | 423 | 424 | ||||||||
5.00%, 09/25/2034 | 38 | 38 | Chevron Corp | ||||||||
JP Morgan Mortgage Trust 2016-4 | 2.90%, 03/03/2024 | 250 | 244 | ||||||||
3.50%, 10/25/2046(c),(f) | 599 | 593 | 3.22%, 03/03/2022 | 250 | 250 | ||||||
JP Morgan Mortgage Trust 2017-2 | 3 Month USD LIBOR + 0.48% | ||||||||||
3.50%, 05/25/2047(c),(f) | 397 | 392 | Cimarex Energy Co | ||||||||
JP Morgan Mortgage Trust 2017-4 | 4.38%, 06/01/2024 | 250 | 249 | ||||||||
3.50%, 11/25/2048(c),(f) | 407 | 402 | Phillips 66 | ||||||||
JP Morgan Mortgage Trust 2017-6 | 3.19%, 04/15/2020(c) | 300 | 300 | ||||||||
3.50%, 12/25/2048(c),(f) | 221 | 218 | 3 Month USD LIBOR + 0.75% | ||||||||
JP Morgan Mortgage Trust 2018-3 | Shell International Finance BV | ||||||||||
3.50%, 09/25/2048(c),(f) | 464 | 457 | 2.13%, 05/11/2020 | 505 | 500 | ||||||
JP Morgan Mortgage Trust 2018-4 | 2.38%, 08/21/2022 | 300 | 292 | ||||||||
3.50%, 10/25/2048(c),(f) | 278 | 274 | $ | 2,259 | |||||||
JP Morgan Mortgage Trust 2018-6 | Oil & Gas Services- 0.16% | ||||||||||
3.50%, 12/25/2048(c),(f) | 379 | 374 | Baker Hughes a GE Co LLC / Baker Hughes Co- | ||||||||
MASTR Asset Securitization Trust 2004-11 | ObligorInc | ||||||||||
5.00%, 12/25/2019 | 1 | 1 | 2.77%, 12/15/2022 | 250 | 240 | ||||||
MASTR Asset Securitization Trust 2004-9 | Other Asset Backed Securities - 6.40% | ||||||||||
5.00%, 09/25/2019 | 2 | 2 | CCG Receivables Trust 2018-1 | ||||||||
PHH Mortgage Trust Series 2008-CIM1 | 2.50%, 06/16/2025(c) | 94 | 94 | ||||||||
5.22%, 06/25/2038 | 85 | 82 | CCG Receivables Trust 2018-2 | ||||||||
1.00 x 1 Month USD LIBOR + 2.25% | 3.09%, 12/15/2025(c) | 500 | 499 | ||||||||
Prime Mortgage Trust 2005-2 | Drug Royalty II LP 2 | ||||||||||
5.25%, 07/25/2020 | 42 | 41 | 3.48%, 07/15/2023(c) | 190 | 190 | ||||||
Provident Funding Mortgage Loan Trust 2005-1 | Drug Royalty III LP 1 | ||||||||||
3.09%, 05/25/2035 | 98 | 97 | 3.98%, 04/15/2027(c) | 103 | 103 | ||||||
1.00 x 1 Month USD LIBOR + 0.58% | 4.27%, 10/15/2031(c) | 250 | 252 | ||||||||
PSMC 2018-1 Trust | 4.94%, 04/15/2027(c) | 169 | 170 | ||||||||
3.50%, 02/25/2048(c),(f) | 457 | 452 | 1.00 x 3 Month USD LIBOR + 2.50% | ||||||||
PSMC 2018-2 Trust | MMAF Equipment Finance LLC 2018-A | ||||||||||
3.50%, 06/25/2048(c),(f) | 478 | 472 | 2.92%, 07/12/2021(c) | 298 | 297 | ||||||
PSMC 2018-3 Trust | MVW Owner Trust 2015-1 | ||||||||||
4.00%, 08/25/2048(c),(f) | 244 | 246 | 2.52%, 12/20/2032(c) | 253 | 250 | ||||||
PSMC 2018-4 Trust | MVW Owner Trust 2016-1 | ||||||||||
4.00%, 11/25/2048(c),(f) | 735 | 740 | 2.25%, 12/20/2033(c) | 217 | 212 | ||||||
RALI Series 2004-QS3 Trust | MVW Owner Trust 2018-1 | ||||||||||
5.00%, 03/25/2019 | 1 | — | 3.45%, 01/21/2036(c) | 466 | 471 | ||||||
RBSSP Resecuritization Trust 2009-7 | PFS Financing Corp | ||||||||||
2.71%, 06/26/2037(c) | 19 | 18 | 2.40%, 10/17/2022(c) | 300 | 296 | ||||||
1.00 x 1 Month USD LIBOR + 0.40% | 2.93%, 10/15/2021(c) | 200 | 200 | ||||||||
Sequoia Mortgage Trust 2013-4 | 1.00 x 1 Month USD LIBOR + 0.47% | ||||||||||
1.55%, 04/25/2043(f) | 44 | 42 | 3.04%, 03/15/2021(c) | 750 | 750 | ||||||
Sequoia Mortgage Trust 2013-8 | 1.00 x 1 Month USD LIBOR + 0.58% | ||||||||||
2.25%, 06/25/2043(f) | 303 | 297 | 3.06%, 07/15/2022(c) | 750 | 752 | ||||||
Sequoia Mortgage Trust 2017-1 | 1.00 x 1 Month USD LIBOR + 0.60% | ||||||||||
3.50%, 02/25/2047(c),(f) | 411 | 406 | 3.19%, 04/17/2023(c) | 250 | 250 | ||||||
Sequoia Mortgage Trust 2017-2 | Trafigura Securitisation Finance PLC 2017-1 | ||||||||||
3.50%, 02/25/2047(c),(f) | 201 | 199 | 3.31%, 12/15/2020(c) | 1,000 | 1,005 | ||||||
Sequoia Mortgage Trust 2017-3 | 1.00 x 1 Month USD LIBOR + 0.85% | ||||||||||
3.50%, 04/25/2047(c),(f) | 361 | 358 | Verizon Owner Trust 2016-1 | ||||||||
Sequoia Mortgage Trust 2018-3 | 1.42%, 01/20/2021(c) | 246 | 245 | ||||||||
3.50%, 03/25/2048(c),(f) | 277 | 274 | Verizon Owner Trust 2016-2 | ||||||||
Sequoia Mortgage Trust 2018-5 | 1.68%, 05/20/2021(c) | 890 | 885 | ||||||||
3.50%, 05/25/2048(c),(f) | 472 | 468 |
See accompanying notes.
245
Schedule of Investments Short-Term Income Account December 31, 2018
Principal | Principal | |||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | |||||||||
Other Asset Backed Securities (continued) | REITs (continued) | |||||||||||
Verizon Owner Trust 2017-1 | SBA Tower Trust | |||||||||||
2.06%, 09/20/2021(c) | $ | 250 | $ | 248 | 2.88%, 07/15/2046(c) | $ | 400 | $ | 393 | |||
Verizon Owner Trust 2017-2 | 3.17%, 04/09/2047(c) | 400 | 393 | |||||||||
1.92%, 12/20/2021(c) | 750 | 742 | Welltower Inc | |||||||||
Verizon Owner Trust 2017-3 | 3.75%, 03/15/2023 | 80 | 80 | |||||||||
2.06%, 04/20/2022(c) | 300 | 296 | 4.95%, 01/15/2021 | 250 | 256 | |||||||
Verizon Owner Trust 2018-1 | $ | 3,087 | ||||||||||
2.82%, 09/20/2022(c) | 500 | 499 | Retail - 0.81% | |||||||||
Verizon Owner Trust 2018-A | Home DepotInc/The | |||||||||||
3.23%, 04/20/2023 | 600 | 604 | 1.80%, 06/05/2020 | 500 | 493 | |||||||
Volvo Financial Equipment LLC Series 2018-1 | McDonald's Corp | |||||||||||
2.26%, 09/15/2020(c) | 232 | 231 | 2.75%, 12/09/2020 | 500 | 496 | |||||||
VSE 2018-A Voi Mortgage LLC | Walmart Inc | |||||||||||
3.56%, 02/20/2036(c) | 262 | 265 | 1.75%, 10/09/2019 | 100 | 99 | |||||||
$ | 9,806 | 1.90%, 12/15/2020 | 150 | 148 | ||||||||
Packaging & Containers- 0.13% | $ | 1,236 | ||||||||||
Packaging Corp of America | Savings & Loans- 0.00% | |||||||||||
2.45%, 12/15/2020 | 200 | 196 | Washington Mutual Bank / Henderson NV | |||||||||
Pharmaceuticals - 1.41% | 0.00%, 01/15/2013(g),(h),(i) | 200 | — | |||||||||
AbbVieInc | Semiconductors - 0.80% | |||||||||||
2.30%, 05/14/2021 | 200 | 195 | Broadcom Corp / Broadcom Cayman Finance Ltd | |||||||||
2.50%, 05/14/2020 | 336 | 334 | 2.38%, 01/15/2020 | 600 | 593 | |||||||
Bayer US Finance II LLC | 3.00%, 01/15/2022 | 200 | 192 | |||||||||
3.50%, 06/25/2021(c) | 250 | 248 | Microchip TechnologyInc | |||||||||
3.80%, 12/15/2023(c) | 250 | 239 | 4.33%, 06/01/2023(c) | 200 | 195 | |||||||
3 Month USD LIBOR + 1.01% | QUALCOMMInc | |||||||||||
3.88%, 12/15/2023(c) | 200 | 197 | 3.25%, 01/30/2023 | 250 | 249 | |||||||
Cigna Corp | 3 Month USD LIBOR + 0.73% | |||||||||||
3.44%, 09/17/2021(c) | 500 | 493 | $ | 1,229 | ||||||||
3 Month USD LIBOR + 0.65% | Software - 0.86% | |||||||||||
CVS Health Corp | Microsoft Corp | |||||||||||
3.13%, 03/09/2020 | 200 | 200 | 1.10%, 08/08/2019 | 250 | 247 | |||||||
Mead Johnson Nutrition Co | 1.85%, 02/12/2020 | 400 | 397 | |||||||||
3.00%, 11/15/2020 | 250 | 249 | Oracle Corp | |||||||||
$ | 2,155 | 1.90%, 09/15/2021 | 200 | 194 | ||||||||
Pipelines - 2.24% | 2.25%, 10/08/2019 | 250 | 249 | |||||||||
Buckeye Partners LP | VMwareInc | |||||||||||
4.15%, 07/01/2023 | 400 | 389 | 2.95%, 08/21/2022 | 250 | 238 | |||||||
Columbia Pipeline GroupInc | $ | 1,325 | ||||||||||
3.30%, 06/01/2020 | 168 | 167 | Student Loan Asset Backed Securities - 5.25% | |||||||||
Enterprise Products Operating LLC | Commonbond Student Loan Trust 2018-BGS | |||||||||||
3.50%, 02/01/2022 | 500 | 501 | 3.56%, 09/25/2045(c) | 380 | 380 | |||||||
Florida Gas Transmission Co LLC | Commonbond Student Loan Trust 2018-C-GS | |||||||||||
3.88%, 07/15/2022(c) | 250 | 252 | 3.87%, 02/25/2046(c) | 350 | 351 | |||||||
7.90%, 05/15/2019(c) | 559 | 567 | Keycorp Student Loan Trust 2000-b | |||||||||
Kinder MorganInc/DE | 2.80%, 07/25/2029 | 468 | 465 | |||||||||
3.72%, 01/15/2023 | 500 | 489 | 1.00 x 3 Month USD LIBOR + 0.31% | |||||||||
3 Month USD LIBOR + 1.28% | KeyCorp Student Loan Trust 2003-A | |||||||||||
ONEOK Partners LP | 3.02%, 01/25/2037 | 653 | 639 | |||||||||
5.00%, 09/15/2023 | 325 | 335 | 1.00 x 3 Month USD LIBOR + 0.53% | |||||||||
TransCanada PipeLines Ltd | KeyCorp Student Loan Trust 2004-A | |||||||||||
4.83%, 05/15/2067 | 900 | 725 | 3.04%, 01/27/2042 | 2 | 2 | |||||||
3 Month USD LIBOR + 2.21% | 1.00 x 3 Month USD LIBOR + 0.53% | |||||||||||
$ | 3,425 | KeyCorp Student Loan Trust 2006-A | ||||||||||
REITs - 2.02% | 3.13%, 09/27/2035 | 155 | 155 | |||||||||
Alexandria Real Estate Equities Inc | 1.00 x 3 Month USD LIBOR + 0.31% | |||||||||||
2.75%, 01/15/2020 | 510 | 506 | NavientPrivate Education Loan Trust 2014-CT | |||||||||
3.90%, 06/15/2023 | 250 | 251 | 3.16%, 09/16/2024(c) | 84 | 84 | |||||||
CubeSmartLP | 1.00 x 1 Month USD LIBOR + 0.70% | |||||||||||
4.38%, 12/15/2023 | 92 | 94 | NavientPrivate Education Loan Trust 2017-A | |||||||||
Digital Realty Trust LP | 2.86%, 12/16/2058(c) | 126 | 126 | |||||||||
3.40%, 10/01/2020 | 300 | 299 | 1.00 x 1 Month USD LIBOR + 0.40% | |||||||||
Healthcare Realty TrustInc | NavientPrivate Education Loan Trust 2018-B | |||||||||||
3.75%, 04/15/2023 | 365 | 359 | 2.81%, 12/15/2059(c) | 163 | 163 | |||||||
Hospitality Properties Trust | 1.00 x 1 Month USD LIBOR + 0.35% | |||||||||||
4.50%, 06/15/2023 | 200 | 202 | NavientPrivate Education Refi Loan Trust | |||||||||
Omega Healthcare InvestorsInc | 2018 | -A | ||||||||||
4.95%, 04/01/2024 | 250 | 254 | 2.53%, 02/18/2042(c) | 333 | 330 |
See accompanying notes.
246
Schedule of Investments | |||||||||||||
Short-Term Income Account | |||||||||||||
December 31, 2018 | |||||||||||||
Principal | Principal | ||||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||||
Student Loan Asset Backed Securities (continued) | Transportation - 0.68% | ||||||||||||
NavientPrivate Education Refi Loan Trust | Ryder SystemInc | ||||||||||||
2018 | -C | 2.25%, 09/01/2021 | $ | 200 | $ | 193 | |||||||
3.01%, 06/16/2042(c) | $ | 220 | $ | 219 | 3.75%, 06/09/2023 | 200 | 199 | ||||||
NavientPrivate Education Refi Loan Trust | United Parcel ServiceInc | ||||||||||||
2018 | -D | 2.85%, 04/01/2023 | 650 | 646 | |||||||||
2.76%, 12/15/2059(c) | 329 | 329 | 3 Month USD LIBOR + 0.45% | ||||||||||
1.00 x 1 Month USD LIBOR + 0.30% | $ | 1,038 | |||||||||||
NavientStudent Loan Trust 2018-EA | TOTAL BONDS | $ | 146,743 | ||||||||||
3.43%, 12/15/2059(c) | 1,000 | 1,004 | U.S. GOVERNMENT & GOVERNMENT | Principal | |||||||||
SLM Private Credit Student Loan Trust 2002-A | AGENCY OBLIGATIONS- 2.73% | Amount (000's) Value (000's) | |||||||||||
3.34%, 12/16/2030 | 364 | 364 | Federal Home Loan Mortgage Corporation (FHLMC)- 0.01% | ||||||||||
1.00 x 3 Month USD LIBOR + 0.55% | 4.13%, 09/01/2035 | $ | 12 | $ | 13 | ||||||||
SLM Private Credit Student Loan Trust 2004-A | 1.00 x US Treasury Yield Curve Rate T | ||||||||||||
3.19%, 06/15/2033 | 142 | 140 | Note Constant Maturity 1 Year + 2.25% | ||||||||||
1.00 x 3 Month USD LIBOR + 0.40% | Federal National Mortgage Association (FNMA) - 0.08% | ||||||||||||
SLM Private Credit Student Loan Trust 2004-B | 3.52%, 12/01/2032 | 4 | 4 | ||||||||||
3.12%, 03/15/2024 | 462 | 460 | 1.00 x 12 Month USD LIBOR + 1.64% | ||||||||||
1.00 x 3 Month USD LIBOR + 0.33% | 3.62%, 01/01/2035 | 8 | 9 | ||||||||||
SLM Private Credit Student Loan Trust 2006-A | 1.00 x 12 Month USD LIBOR + 1.75% | ||||||||||||
3.08%, 06/15/2039 | 848 | 823 | 4.01%, 04/01/2033 | 28 | 29 | ||||||||
1.00 x 3 Month USD LIBOR + 0.29% | 1.00 x 6 Month USD LIBOR + 1.51% | ||||||||||||
SLM Private Credit Student Loan Trust 2006-B | 4.11%, 02/01/2037 | 22 | 23 | ||||||||||
2.99%, 12/15/2039 | 332 | 326 | 1.00 x US Treasury Yield Curve Rate T | ||||||||||
1.00 x 3 Month USD LIBOR + 0.20% | Note Constant Maturity 1 Year + 2.11% | ||||||||||||
SLM Private Education Loan Trust 2013-A | 4.34%, 08/01/2034 | 7 | 7 | ||||||||||
1.77%, 05/17/2027(c) | 143 | 142 | 1.00 x 12 Month USD LIBOR + 1.63% | ||||||||||
SLM Private Education Loan Trust 2013-B | 4.40%, 07/01/2034 | 19 | 19 | ||||||||||
1.85%, 06/17/2030(c) | 120 | 120 | 1.00 x 12 Month USD LIBOR + 1.65% | ||||||||||
SMB Private Education Loan Trust 2017-A | 4.57%, 02/01/2035 | 3 | 4 | ||||||||||
2.91%, 06/17/2024(c) | 50 | 50 | 1.00 x 6 Month USD LIBOR + 2.07% | ||||||||||
1.00 x 1 Month USD LIBOR + 0.45% | 4.69%, 11/01/2035 | 1 | 1 | ||||||||||
SMB Private Education Loan Trust 2017-B | 1.00 x Cost of funds for the 11th District of | ||||||||||||
2.73%, 06/17/2024(c) | 297 | 297 | San Francisco + 1.27% | ||||||||||
1.00 x 1 Month USD LIBOR + 0.27% | 4.75%, 12/01/2033 | 12 | 12 | ||||||||||
SMB Private Education Loan Trust 2018-A | 1.00 x 6 Month USD LIBOR + 2.25% | ||||||||||||
2.81%, 03/16/2026(c) | 650 | 650 | 4.79%, 11/01/2032 | 3 | 3 | ||||||||
1.00 x 1 Month USD LIBOR + 0.35% | 1.00 x US Treasury Yield Curve Rate T | ||||||||||||
SMB Private Education Loan Trust 2018-B | Note Constant Maturity 1 Year + 2.29% | ||||||||||||
2.78%, 12/16/2024(c) | 217 | 217 | 8.00%, 05/01/2027 | 6 | 6 | ||||||||
1.00 x 1 Month USD LIBOR + 0.32% | $ | 117 | |||||||||||
SMB Private Education Loan Trust 2018-C | Government National Mortgage Association (GNMA)- 0.00% | ||||||||||||
2.76%, 09/15/2025(c) | 208 | 208 | 10.00%, 06/15/2020 | 1 | 1 | ||||||||
1.00 x 1 Month USD LIBOR + 0.30% | |||||||||||||
$ | 8,044 | U.S. Treasury- 2.64% | |||||||||||
1.88%, 08/31/2022 | 2,000 | 1,957 | |||||||||||
Telecommunications - 2.25% | 2.63%, 06/15/2021 | 125 | 125 | ||||||||||
AT&T Inc | 2.75%, 07/31/2023 | 200 | 202 | ||||||||||
3.50%, 02/15/2023 | 250 | 245 | 2.88%, 10/31/2020 | 750 | 755 | ||||||||
3 Month USD LIBOR + 0.89% | 2.88%, 11/15/2021 | 1,000 | 1,011 | ||||||||||
3.60%, 02/17/2023 | 200 | 199 | $ | 4,050 | |||||||||
Cisco SystemsInc | TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY | ||||||||||||
2.20%, 02/28/2021 | 250 | 247 | OBLIGATIONS | $ | 4,181 | ||||||||
4.95%, 02/15/2019 | 500 | 501 | Total Investments | $ | 155,780 | ||||||||
Crown Castle Towers LLC | Other Assets and Liabilities - (1.71)% | (2,622 | ) | ||||||||||
3.22%, 05/15/2022(c) | 75 | 74 | TOTAL NET ASSETS - 100.00% | $ | 153,158 | ||||||||
Sprint Spectrum Co LLC / Sprint Spectrum Co II | |||||||||||||
LLC / Sprint Spectrum Co III LLC | |||||||||||||
3.36%, 03/20/2023(c) | 516 | 509 | (a) | Affiliated Security. Security is either an affiliate (and registered under the | |||||||||
4.74%, 03/20/2025(c) | 950 | 932 | Investment Company Act of 1940) or an affiliate as defined by the Investment | ||||||||||
Verizon CommunicationsInc | Company Act of 1940 (controls 5.0% or more of the outstanding voting | ||||||||||||
3.20%, 05/22/2020 | 200 | 199 | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||||
3 Month USD LIBOR + 0.55% | information. | ||||||||||||
Vodafone Group PLC | (b) | Current yield shown is as of period end. | |||||||||||
3.43%, 01/16/2024 | 250 | 244 | (c) | Security exempt from registration under Rule 144A of the Securities Act of | |||||||||
3 Month USD LIBOR + 0.99% | 1933. These securities may be resold in transactions exempt from registration, | ||||||||||||
3.75%, 01/16/2024 | 300 | 296 | normally to qualified institutional buyers. At the end of the period, the value of | ||||||||||
$ | 3,446 | these securities totaled $49,562 or 32.36% of net assets. | |||||||||||
(d) | 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. |
See accompanying notes.
247
Schedule of Investments Short-Term Income Account December 31, 2018
(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) | Non-income producing security |
(h) | The value of these investments was determined using significant unobservableinputs. |
(i) | 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 resultsin not all securities being identified as Level 3 of the fair value hierarchy. Atthe end of the period, the fair value of these securities totaled $0 or 0.00% of net assets. |
Portfolio Summary (unaudited) | |||
Sector | Percent | ||
Financial | 27.30 | % | |
Asset Backed Securities | 21.29 | % | |
Government | 13.86 | % | |
Mortgage Securities | 7.26 | % | |
Consumer, Non-cyclical | 6.35 | % | |
Industrial | 4.30 | % | |
Energy | 3.87 | % | |
Utilities | 3.83 | % | |
Communications | 3.72 | % | |
Consumer, Cyclical | 3.19 | % | |
Investment Companies | 3.17 | % | |
Technology | 2.76 | % | |
Basic Materials | 0.81 | % | |
Other Assets and Liabilities | (1.71 | )% | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 2,438 | $ | 66,954 | $ | 64,536 | $ | 4,856 | |||
$ | 2,438 | $ | 66,954 | $ | 64,536 | $ | 4,856 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 51 | $ | — | $ | — | $ | — | |||
$ | 51 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
248
Schedule of Investments | |||||||||||
SmallCap Account | |||||||||||
December 31, 2018 | |||||||||||
COMMON STOCKS - 98.31% | Shares HeldValue (000's) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | ||||||||
Automobile Parts & Equipment- 2.03% | Electric - 3.18% | ||||||||||
Altra Industrial Motion Corp | 79,900 | $ | 2,010 | PNM Resources Inc | 63,280 | $ | 2,600 | ||||
ModineManufacturing Co(a) | 48,300 | 522 | Portland General Electric Co | 60,000 | 2,751 | ||||||
Visteon Corp(a) | 14,700 | 886 | $ | 5,351 | |||||||
$ | 3,418 | Electrical Components & Equipment- 0.23% | |||||||||
Banks - 10.46% | nLightInc(a) | 21,290 | 379 | ||||||||
Cadence BanCorp | 59,400 | 997 | Electronics - 3.83% | ||||||||
Cathay General Bancorp | 68,600 | 2,300 | Advanced Energy IndustriesInc(a) | 28,300 | 1,215 | ||||||
CenterStateBank Corp | 88,840 | 1,869 | II-VIInc(a) | 43,800 | 1,422 | ||||||
First InterstateBancSystemInc | 29,800 | 1,089 | SYNNEX Corp | 22,800 | 1,843 | ||||||
First Merchants Corp | 32,800 | 1,124 | Vishay IntertechnologyInc | 108,900 | 1,961 | ||||||
Franklin Financial Network Inc(a) | 22,700 | 599 | $ | 6,441 | |||||||
Independent Bank Corp/MI | 2,600 | 55 | Engineering & Construction- 2.06% | ||||||||
Lakeland Bancorp Inc | 22,750 | 337 | MasTec Inc(a) | 54,500 | 2,211 | ||||||
Popular Inc | 35,500 | 1,676 | Tutor Perini Corp(a) | 78,100 | 1,247 | ||||||
Sandy Spring BancorpInc | 35,900 | 1,125 | $ | 3,458 | |||||||
TCF Financial Corp | 107,600 | 2,097 | Entertainment - 4.00% | ||||||||
Umpqua Holdings Corp | 114,200 | 1,816 | Eldorado Resorts Inc(a) | 69,600 | 2,520 | ||||||
Union BanksharesCorp | 38,000 | 1,073 | Golden EntertainmentInc(a) | 49,900 | 799 | ||||||
United Community BanksInc/GA | 66,820 | 1,434 | Live Nation Entertainment Inc(a) | 31,300 | 1,542 | ||||||
$ | 17,591 | Vail ResortsInc | 8,870 | 1,870 | |||||||
Biotechnology- 3.56% | $ | 6,731 | |||||||||
AcceleronPharmaInc(a) | 18,600 | 810 | Environmental Control - 2.50% | ||||||||
Allogene TherapeuticsInc(a) | 9,800 | 264 | Advanced Disposal ServicesInc(a) | 89,900 | 2,152 | ||||||
AratanaTherapeuticsInc(a) | 55,800 | 342 | AquaVenture Holdings Ltd(a) | 15,540 | 294 | ||||||
Bluebird BioInc(a) | 3,500 | 347 | Energy RecoveryInc(a) | 44,910 | 302 | ||||||
Denali TherapeuticsInc(a) | 30,300 | 626 | Tetra TechInc | 28,100 | 1,455 | ||||||
DNIB UnwindInc - Warrants(a),(b),(c) | 1,938 | — | $ | 4,203 | |||||||
Exact Sciences Corp(a) | 12,100 | 764 | |||||||||
FibroGenInc(a) | 17,600 | 815 | Food - 1.37% | ||||||||
Insmed Inc(a) | 20,340 | 267 | Darling IngredientsInc(a) | 119,500 | 2,299 | ||||||
MacroGenicsInc(a) | 29,800 | 378 | Gas- 1.48% | ||||||||
Magenta TherapeuticsInc(a) | 38,100 | 217 | Southwest Gas HoldingsInc | 32,450 | 2,482 | ||||||
Sage TherapeuticsInc(a) | 1,650 | 158 | Healthcare - Products- 1.61% | ||||||||
Seattle GeneticsInc(a) | 11,952 | 677 | Intersect ENT Inc(a) | 25,300 | 713 | ||||||
Spark TherapeuticsInc(a) | 8,155 | 319 | Nevro Corp(a) | 22,640 | 880 | ||||||
$ | 5,984 | RA Medical SystemsInc(a) | 29,300 | 233 | |||||||
Chemicals - 1.47% | STAAR Surgical Co(a) | 27,700 | 884 | ||||||||
Cabot Corp | 32,860 | 1,411 | $ | 2,710 | |||||||
UnivarInc(a) | 59,700 | 1,059 | Healthcare - Services- 3.98% | ||||||||
$ | 2,470 | AddusHomeCareCorp(a) | 19,100 | 1,297 | |||||||
Commercial Services - 7.79% | Encompass Health Corp | 33,800 | 2,085 | ||||||||
AMN Healthcare ServicesInc(a) | 48,000 | 2,720 | Natera Inc(a) | 31,000 | 433 | ||||||
Arlo TechnologiesInc(a) | 55,950 | 558 | Syneos HealthInc(a) | 46,560 | 1,832 | ||||||
ASGNInc(a) | 23,940 | 1,305 | TeladocHealthInc(a) | 21,200 | 1,051 | ||||||
Brink's Co/The | 33,350 | 2,156 | $ | 6,698 | |||||||
ICF International Inc | 23,300 | 1,509 | Home Builders- 0.74% | ||||||||
K12Inc(a) | 55,501 | 1,376 | William Lyon Homes(a) | 116,760 | 1,248 | ||||||
Korn Ferry | 43,270 | 1,711 | Home Furnishings- 0.10% | ||||||||
Medifast Inc | 10,460 | 1,308 | SonosInc(a) | 16,500 | 162 | ||||||
SP Plus Corp(a) | 15,300 | 452 | Insurance - 3.96% | ||||||||
$ | 13,095 | First American Financial Corp | 2,370 | 106 | |||||||
Computers - 3.84% | Hanover Insurance GroupInc/The | 18,900 | 2,207 | ||||||||
CACI International Inc(a) | 15,500 | 2,232 | Kemper Corp | 17,810 | 1,182 | ||||||
ExlService HoldingsInc(a) | 24,400 | 1,284 | MGIC Investment Corp(a) | 148,500 | 1,553 | ||||||
Perspecta Inc | 108,100 | 1,862 | National General Holdings Corp | 66,600 | 1,613 | ||||||
PlayAGSInc(a) | 35,400 | 814 | $ | 6,661 | |||||||
Tenable HoldingsInc(a) | 11,700 | 260 | Internet - 0.48% | ||||||||
$ | 6,452 | Anaplan Inc(a) | 11,214 | 298 | |||||||
Consumer Products - 0.82% | EventbriteInc(a) | 18,100 | 503 | ||||||||
Central Garden & Pet Co - A Shares(a) | 44,220 | 1,382 | $ | 801 | |||||||
Diversified Financial Services- 3.16% | Iron & Steel- 0.74% | ||||||||||
BGC PartnersInc | 111,100 | 574 | Reliance Steel & Aluminum Co | 8,010 | 570 | ||||||
Hamilton LaneInc | 23,546 | 871 | Steel DynamicsInc | 22,250 | 668 | ||||||
LPL Financial HoldingsInc | 17,700 | 1,081 | $ | 1,238 | |||||||
Moelis & Co | 45,200 | 1,554 | Leisure Products & Services- 1.62% | ||||||||
PiperJaffrayCos | 18,750 | 1,235 | Planet Fitness Inc(a) | 50,900 | 2,729 | ||||||
$ | 5,315 | Lodging - 1.16% | |||||||||
Extended Stay AmericaInc | 125,300 | 1,942 |
See accompanying notes.
249
Schedule of Investments
SmallCap Account
December 31, 2018
COMMON STOCKS (continued) | Shares HeldValue (000’s) | COMMON STOCKS (continued) | Shares HeldValue (000’s) | |||||||||
Machinery - Diversified- 1.25% | Software (continued) | |||||||||||
Columbus McKinnon Corp/NY | 26,478 | $ | 798 | SolarWindsCorp(a) | 105,788 | $ | 1,463 | |||||
Gates Industrial Corp PLC(a) | 98,210 | 1,300 | $ | 7,918 | ||||||||
$ | 2,098 | Telecommunications - 1.65% | ||||||||||
Metal Fabrication & Hardware- 1.26% | NETGEARInc(a) | 27,230 | 1,417 | |||||||||
Rexnord Corp(a) | 91,980 | 2,111 | Plantronics Inc | 36,200 | 1,198 | |||||||
Mining - 0.31% | SwitchInc | 22,410 | 157 | |||||||||
Alcoa Corp(a) | 19,840 | 527 | $ | 2,772 | ||||||||
Miscellaneous Manufacturers - 1.20% | TOTAL COMMON STOCKS | $ | 165,274 | |||||||||
HillenbrandInc | 33,050 | 1,254 | INVESTMENT COMPANIES - 0.86% | Shares HeldValue (000's) | ||||||||
TrinseoSA | 16,830 | 770 | Money Market Funds- 0.86% | |||||||||
$ | 2,024 | Principal Government Money Market Fund | 1,443,051 | 1,443 | ||||||||
Oil & Gas- 2.65% | 2.11%(d),(e) | |||||||||||
Carrizo Oil & GasInc(a) | 57,300 | 647 | TOTAL INVESTMENT COMPANIES | $ | 1,443 | |||||||
DelekUS HoldingsInc | 54,300 | 1,765 | Total Investments | $ | 166,717 | |||||||
Mammoth Energy ServicesInc | 49,000 | 881 | Other Assets and Liabilities - 0.83% | 1,400 | ||||||||
Ring EnergyInc(a) | 125,300 | 637 | TOTAL NET ASSETS - 100.00% | $ | 168,117 | |||||||
Whiting Petroleum Corp(a) | 23,100 | 524 | ||||||||||
$ | 4,454 | (a) | Non-income producing security | |||||||||
Oil & Gas Services- 0.48% | (b) | The value of these investments was determined using significant unobservable | ||||||||||
Pioneer Energy Services Corp(a) | 153,000 | 188 | inputs. | |||||||||
Select Energy ServicesInc(a) | 99,200 | 627 | (c) | Fair value of these investments is determined in good faith by the Manager | ||||||||
$ | 815 | under procedures established and periodically reviewed by the Board of | ||||||||||
Packaging & Containers- 0.64% | Directors. Certain inputs used in the valuation may be unobservable; however, | |||||||||||
Graphic Packaging Holding Co | 100,800 | 1,073 | each security is evaluated individually for purposes of ASC 820 which results | |||||||||
Pharmaceuticals - 4.22% | in not all securities being identified as Level 3 of the fair value hierarchy. At | |||||||||||
Array BioPharmaInc(a) | 42,670 | 608 | the end of the period, the fair value of these securities totaled $0 or 0.00% of | |||||||||
BellicumPharmaceuticalsInc(a) | 56,800 | 166 | net assets. | |||||||||
Clovis OncologyInc(a) | 11,080 | 199 | (d) | Affiliated Security. Security is either an affiliate (and registered under the | ||||||||
DexCom Inc(a) | 8,930 | 1,070 | Investment Company Act of 1940) or an affiliate as defined by the Investment | |||||||||
Horizon Pharma Plc(a) | 64,930 | 1,269 | Company Act of 1940 (controls 5.0% or more of the outstanding voting | |||||||||
Neurocrine Biosciences Inc(a) | 3,100 | 221 | shares of the security). Please see affiliated sub-schedule for transactional | |||||||||
PRA Health SciencesInc(a) | 17,200 | 1,582 | information. | |||||||||
Prestige Consumer HealthcareInc(a) | 50,300 | 1,553 | (e) | Current yield shown is as of period end. | ||||||||
RevanceTherapeuticsInc(a) | 21,400 | 431 | ||||||||||
$ | 7,099 | Portfolio Summary (unaudited) | ||||||||||
Real Estate - 0.25% | Sector | Percent | ||||||||||
Newmark GroupInc | 52,300 | 419 | Financial | 24.70 | % | |||||||
REITs - 6.62% | Consumer, Non-cyclical | 23.35 | % | |||||||||
Agree Realty Corp | 39,200 | 2,317 | Consumer, Cyclical | 14.58 | % | |||||||
Brandywine Realty Trust | 156,900 | 2,019 | Industrial | 12.97 | % | |||||||
First Industrial Realty TrustInc | 86,680 | 2,502 | Technology | 10.27 | % | |||||||
Pebblebrook Hotel Trust | 80,820 | 2,288 | Utilities | 4.66 | % | |||||||
Tier REIT Inc | 51,900 | 1,071 | Energy | 3.13 | % | |||||||
Two Harbors Investment Corp | 72,560 | 932 | Basic Materials | 2.52 | % | |||||||
$ | 11,129 | Communications | 2.13 | % | ||||||||
Retail - 4.93% | Investment Companies | 0.86 | % | |||||||||
BJ's Wholesale Club HoldingsInc(a) | 87,800 | 1,946 | Other Assets and Liabilities | 0.83 | % | |||||||
Caleres Inc | 80,230 | 2,233 | TOTAL NET ASSETS | 100.00 | % | |||||||
Carvana Co(a) | 57,200 | 1,871 | ||||||||||
GMSInc(a) | 86,700 | 1,288 | ||||||||||
Ruth's Hospitality GroupInc | 41,940 | 953 | ||||||||||
$ | 8,291 | |||||||||||
Savings & Loans- 0.25% | ||||||||||||
Berkshire Hills BancorpInc | 15,600 | 421 | ||||||||||
Semiconductors - 1.72% | ||||||||||||
Aquantia Corp(a) | 34,230 | 300 | ||||||||||
EntegrisInc | 92,600 | 2,583 | ||||||||||
$ | 2,883 | |||||||||||
Software - 4.71% | ||||||||||||
AlteryxInc(a) | 13,190 | 784 | ||||||||||
Apptio Inc(a) | 19,020 | 722 | ||||||||||
Aspen TechnologyInc(a) | 23,300 | 1,915 | ||||||||||
Ceridian HCM HoldingInc(a) | 13,019 | 449 | ||||||||||
Manhattan AssociatesInc(a) | 21,940 | 930 | ||||||||||
PluralsightInc(a) | 15,084 | 355 | ||||||||||
SailPoint Technologies HoldingInc(a) | 36,600 | 860 | ||||||||||
SmartsheetInc(a) | 17,709 | 440 |
See accompanying notes.
250
Schedule of Investments | |||||||||||
SmallCap Account | |||||||||||
December 31, 2018 | |||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 2,243 | $ | 52,880 | $ | 53,680 | $ | 1,443 | |||
$ | 2,243 | $ | 52,880 | $ | 53,680 | $ | 1,443 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 42 | $ | — | $ | — | $ | — | |||
$ | 42 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
251
Glossary to the Schedule of Investments
December 31, 2018
Currency Abbreviations | |
USD/$ | United States Dollar |
See accompanying notes.
252
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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 | Net Realized | ||||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | ||||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | ||||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||||
BOND MARKET INDEX ACCOUNT | |||||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||||
2018 | $ | 10.39 | $ | 0.26 | ($ | 0.28 | ) | ($ | 0.02 | ) | ($ | 0.22 | ) | $– | ($0.22) | $ | 10.15 | ||||||||||||
2017 | 10.25 | 0.22 | 0.11 | 0.33 | (0.19 | ) | – | (0.19 | ) | 10.39 | |||||||||||||||||||
2016 | 10.20 | 0.19 | 0.05 | 0.24 | (0.19 | ) | – | (0.19 | ) | 10.25 | |||||||||||||||||||
2015 | 10.34 | 0.18 | (0.17 | ) | 0.01 | (0.15 | ) | – | (0.15 | ) | 10.20 | ||||||||||||||||||
2014 | 9.88 | 0.17 | 0.40 | 0.57 | (0.11 | ) | – | (0.11 | ) | 10.34 | |||||||||||||||||||
CORE PLUS BOND ACCOUNT | |||||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||||
2018 | 11.35 | 0.36 | (0.52 | ) | (0.16 | ) | (0.38 | ) | – | (0.38 | ) | 10.81 | |||||||||||||||||
2017 | 11.15 | 0.35 | 0.18 | 0.53 | (0.33 | ) | – | (0.33 | ) | 11.35 | |||||||||||||||||||
2016 | 11.05 | 0.32 | 0.14 | 0.46 | (0.36 | ) | – | (0.36 | ) | 11.15 | |||||||||||||||||||
2015 | 11.46 | 0.32 | (0.37 | ) | (0.05 | ) | (0.36 | ) | – | (0.36 | ) | 11.05 | |||||||||||||||||
2014 | 11.24 | 0.31 | 0.28 | 0.59 | (0.37 | ) | – | (0.37 | ) | 11.46 | |||||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||||
2018 | 11.28 | 0.33 | (0.51 | ) | (0.18 | ) | (0.37 | ) | – | (0.37 | ) | 10.73 | |||||||||||||||||
2017 | 11.11 | 0.32 | 0.18 | 0.50 | (0.33 | ) | – | (0.33 | ) | 11.28 | |||||||||||||||||||
2016 | 11.03 | 0.29 | 0.14 | 0.43 | (0.35 | ) | – | (0.35 | ) | 11.11 | |||||||||||||||||||
2015 | (d) | 11.62 | 0.19 | (0.42 | ) | (0.23 | ) | (0.36 | ) | – | (0.36 | ) | 11.03 | ||||||||||||||||
DIVERSIFIED BALANCED ACCOUNT | |||||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||||
2018 | 15.98 | 0.31 | (0.78 | ) | (0.47 | ) | (0.43 | ) | (0.21 | ) | (0.64 | ) | 14.87 | ||||||||||||||||
2017 | (h) | 15.36 | 0.45 | 0.65 | 1.10 | (0.26 | ) | (0.22 | ) | (0.48 | ) | 15.98 | |||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||||
2018 | 15.99 | 0.27 | (0.78 | ) | (0.51 | ) | (0.39 | ) | (0.21 | ) | (0.60 | ) | 14.88 | ||||||||||||||||
2017 | 14.76 | 0.35 | 1.32 | 1.67 | (0.22 | ) | (0.22 | ) | (0.44 | ) | 15.99 | ||||||||||||||||||
2016 | 14.11 | 0.22 | 0.75 | 0.97 | (0.18 | ) | (0.14 | ) | (0.32 | ) | 14.76 | ||||||||||||||||||
2015 | 14.39 | 0.19 | (0.17 | ) | 0.02 | (0.14 | ) | (0.16 | ) | (0.30 | ) | 14.11 | |||||||||||||||||
2014 | 13.66 | 0.16 | 0.85 | 1.01 | (0.13 | ) | (0.15 | ) | (0.28 | ) | 14.39 |
See accompanying notes.
254
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to | Ratio of Gross Expenses to | Ratio of Net Investment Income | Portfolio Turnover | |||||||||||||
Total Return(b) | thousands) | Average Net Assets | Average Net Assets | to Average Net Assets | Rate | ||||||||||||
(0.19 | )% | $2,213,355 | 0.15 | %(c) | –% | 2.52 | % | 123.1 | % | ||||||||
3.27 | 2,448,068 | 0.23 | (c) | – | 2.10 | 108.9 | |||||||||||
2.29 | 2,184,608 | 0.25 | – | 1.86 | 118.5 | ||||||||||||
0.13 | 1,937,655 | 0.25 | – | 1.77 | 154.0 | ||||||||||||
5.75 | 1,734,803 | 0.26 | – | 1.68 | 195.7 | ||||||||||||
(1.41 | ) | 280,760 | 0.47 | – | 3.27 | 127.5 | |||||||||||
4.81 | 293,662 | 0.46 | – | 3.08 | 123.5 | ||||||||||||
4.09 | 292,436 | 0.46 | – | 2.79 | 155.1 | ||||||||||||
(0.48 | ) | 290,032 | 0.46 | – | 2.80 | 177.2 | |||||||||||
5.24 | 321,735 | 0.45 | – | 2.74 | 205.6 | ||||||||||||
(1.63 | ) | 760 | 0.72 | – | 3.03 | 127.5 | |||||||||||
4.50 | 592 | 0.71 | – | 2.80 | 123.5 | ||||||||||||
3.82 | 232 | 0.71 | – | 2.55 | 155.1 | ||||||||||||
(2.03) (e) | 28 | 0.71 | (f) | – | 2.58 | (f) | 177.2 | (f) | |||||||||
(3.14 | ) | 36,763 | 0.05 | (g) | 0.05 | (g) | 1.95 | 15.7 | |||||||||
7.27 | (e) | 42,702 | 0.05 | (f),(g) | 0.05 | (f),(g) | 4.27 | (f) | 13.9 | (f) | |||||||
(3.40 | ) | 968,449 | 0.30 | (g) | 0.30 | (g),(i) | 1.69 | 15.7 | |||||||||
11.43 | 1,131,373 | 0.30 | (g) | 0.30 | (g),(i) | 2.27 | 13.9 | ||||||||||
6.90 | 1,099,647 | 0.30 | (g) | 0.30 | (g),(i) | 1.51 | 14.1 | ||||||||||
0.16 | 1,031,111 | 0.30 | (g) | 0.30 | (g),(i) | 1.29 | 14.3 | ||||||||||
7.41 | 1,011,106 | 0.30 | (g) | 0.30 | (g),(i) | 1.11 | 9.0 |
(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 May 1, 2015 date operations commenced, through December 31, 2015.
(e)Total return amounts have not been annualized.
(f)Computed on an annualized basis.
(g)Does not include expenses of the investment companies in which the Account invests.
(h)Period from May 1, 2017 date operations commenced, through December 31, 2017.
(i)Excludes expense reimbursement from Manager.
See accompanying notes.
255
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
DIVERSIFIED BALANCED MANAGED VOLATILITY ACCOUNT | ||||||||||||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | $ | 12.25 | $ | 0.19 | ($0.55 | ) | ($0.36 | ) | ($0.46 | ) | ($0.09 | ) | ($0.55) | $ | 11.34 | |||||||||||||
2017 | 11.27 | 0.43 | 0.78 | 1.21 | (0.15 | ) | (0.08 | ) | (0.23 | ) | 12.25 | |||||||||||||||||
2016 | 10.72 | 0.16 | 0.53 | 0.69 | (0.08 | ) | (0.06 | ) | (0.14 | ) | 11.27 | |||||||||||||||||
2015 | 10.88 | 0.10 | (0.09 | ) | 0.01 | (0.09 | ) | (0.08 | ) | (0.17 | ) | 10.72 | ||||||||||||||||
2014 | 10.18 | 0.27 | 0.43 | 0.70 | – | – | – | 10.88 | ||||||||||||||||||||
DIVERSIFIED BALANCED VOLATILITY CONTROL ACCOUNT | ||||||||||||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 10.80 | 0.20 | (0.58 | ) | (0.38 | ) | (0.08 | ) | (0.03 | ) | (0.11 | ) | 10.31 | |||||||||||||||
2017 | (f) | 10.00 | 0.27 | 0.53 | 0.80 | – | – | – | 10.80 | |||||||||||||||||||
DIVERSIFIED GROWTH ACCOUNT | ||||||||||||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 17.66 | 0.30 | (1.03 | ) | (0.73 | ) | (0.45 | ) | (0.19 | ) | (0.64 | ) | 16.29 | |||||||||||||||
2017 | 15.93 | 0.43 | 1.79 | 2.22 | (0.23 | ) | (0.26 | ) | (0.49 | ) | 17.66 | |||||||||||||||||
2016 | 15.08 | 0.24 | 0.98 | 1.22 | (0.19 | ) | (0.18 | ) | (0.37 | ) | 15.93 | |||||||||||||||||
2015 | 15.40 | 0.21 | (0.18 | ) | 0.03 | (0.16 | ) | (0.19 | ) | (0.35 | ) | 15.08 | ||||||||||||||||
2014 | 14.60 | 0.19 | 0.94 | 1.13 | (0.14 | ) | (0.19 | ) | (0.33 | ) | 15.40 |
See accompanying notes.
256
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to | Ratio of Gross Expenses to | Ratio of Net Investment Income | Portfolio Turnover | |||||||||||||
Total Return(b) | thousands) | Average Net Assets | Average Net Assets | to Average Net Assets | Rate | ||||||||||||
(3.20 | )% | $ | 162,166 | 0.31%(c),(d) | –% | 1.59 | % | 16.2 | % | ||||||||
10.90 | 181,005 | 0.31 | (c),(d) | – | 3.65 | 13.6 | |||||||||||
6.42 | 168,756 | 0.31 | (c),(d) | – | 1.48 | 13.6 | |||||||||||
0.01 | 138,384 | 0.31 | (c),(d) | – | 0.90 | 14.1 | |||||||||||
6.89 | 84,527 | 0.31 | (c),(d) | – | 2.54 | 8.1 | |||||||||||
(3.71) (e) | 66,983 | 0.38 | (c),(d) | – | 1.90 | 99.6 | |||||||||||
8.10 | (e),(g) | 36,522 | 0.39 | (c),(d),(h) | – | 3.36 | (h) | 8.0 | (h) | ||||||||
(4.51) (e) | 3,488,312 | 0.30 | (d) | 0.30 | (d),(i) | 1.69 | 15.5 | ||||||||||
14.21 | (e) | 3,945,713 | 0.30 | (d) | 0.30 | (d),(i) | 2.52 | 10.9 | |||||||||
8.14 | 3,588,901 | 0.30 | (d) | 0.30 | (d),(i) | 1.53 | 11.1 | ||||||||||
0.17 | 3,201,495 | 0.30 | (d) | 0.30 | (d),(i) | 1.37 | 10.7 | ||||||||||
7.83 | 2,880,722 | 0.30 | (d) | 0.30 | (d),(i) | 1.25 | 7.1 |
(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)Does not include expenses of the investment companies in which the Account invests.
(e)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.
(f)Period from March 30, 2017 date operations commenced, through December 31, 2017.
(g)Total return amounts have not been annualized.
(h)Computed on an annualized basis.
(i)Excludes expense reimbursement from Manager.
See accompanying notes.
257
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
DIVERSIFIED GROWTH MANAGED VOLATILITY ACCOUNT | ||||||||||||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | $ | 12.72 | $ | 0.19 | ($0.66 | ) | ($0.47 | ) | ($0.54 | ) | ($0.10 | ) | ($0.64) | $ | 11.61 | |||||||||||||
2017 | 11.46 | 0.52 | 0.99 | 1.51 | (0.15 | ) | (0.10 | ) | (0.25 | ) | 12.72 | |||||||||||||||||
2016 | 10.79 | 0.16 | 0.66 | 0.82 | (0.07 | ) | (0.08 | ) | (0.15 | ) | 11.46 | |||||||||||||||||
2015 | 10.99 | 0.09 | (0.08 | ) | 0.01 | (0.11 | ) | (0.10 | ) | (0.21 | ) | 10.79 | ||||||||||||||||
2014 | 10.27 | 0.31 | 0.41 | 0.72 | – | – | – | 10.99 | ||||||||||||||||||||
DIVERSIFIED GROWTH VOLATILITY CONTROL ACCOUNT | ||||||||||||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 10.97 | 0.21 | (0.71 | ) | (0.50 | ) | (0.07 | ) | (0.03 | ) | (0.10 | ) | 10.37 | |||||||||||||||
2017 | (e) | 10.00 | 0.30 | 0.67 | 0.97 | – | – | – | 10.97 | |||||||||||||||||||
DIVERSIFIED INCOME ACCOUNT | ||||||||||||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 13.12 | 0.22 | (0.51 | ) | (0.29 | ) | (0.28 | ) | (0.09 | ) | (0.37 | ) | 12.46 | |||||||||||||||
2017 | 12.34 | 0.26 | 0.82 | 1.08 | (0.18 | ) | (0.12 | ) | (0.30 | ) | 13.12 | |||||||||||||||||
2016 | 11.87 | 0.19 | 0.47 | 0.66 | (0.12 | ) | (0.07 | ) | (0.19 | ) | 12.34 | |||||||||||||||||
2015 | 12.03 | 0.15 | (0.12 | ) | 0.03 | (0.10 | ) | (0.09 | ) | (0.19 | ) | 11.87 | ||||||||||||||||
2014 | 11.38 | 0.12 | 0.66 | 0.78 | (0.06 | ) | (0.07 | ) | (0.13 | ) | 12.03 |
See accompanying notes.
258
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to | Ratio of Gross Expenses to | Ratio of Net Investment Income | Portfolio Turnover | |||||||||||||
Total Return(b) | thousands) | Average Net Assets | Average Net Assets | to Average Net Assets | Rate | ||||||||||||
(4.07 | )% | $ | 325,228 | 0.30%(c),(d) | –% | 1.53 | % | 16.3 | % | ||||||||
13.34 | 355,062 | 0.30 | (c),(d) | – | 4.30 | 12.5 | |||||||||||
7.56 | 313,672 | 0.30 | (c),(d) | – | 1.49 | 11.7 | |||||||||||
0.06 | 252,611 | 0.30 | (c),(d) | – | 0.82 | 11.5 | |||||||||||
7.06 | 151,672 | 0.31 | (c),(d) | – | 2.92 | 8.0 | |||||||||||
(4.60 | ) | 384,706 | 0.37 | (c),(d) | – | 1.96 | 103.6 | ||||||||||
9.70 | (f) | 171,769 | 0.38 | (c),(d),(g) | – | 3.80 | (g) | 0.9 | (g) | ||||||||
(2.38 | ) | 241,331 | 0.30 | (d) | 0.30 | (d),(h) | 1.72 | 22.8 | |||||||||
8.81 | 268,135 | 0.30 | (d) | 0.30 | (d),(h) | 2.06 | 21.2 | ||||||||||
5.56 | 254,001 | 0.30 | (d) | 0.30 | (d),(h) | 1.56 | 19.3 | ||||||||||
0.16 | 198,762 | 0.30 | (d) | 0.30 | (d),(h) | 1.25 | 20.1 | ||||||||||
6.89 | 168,562 | 0.31 | (d) | 0.31 | (d),(h) | 1.06 | 18.7 |
(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)Reflects Manager's contractual expense limit.
(d)Does not include expenses of the investment companies in which the Account invests.
(e)Period from March 30, 2017 date operations commenced, through December 31, 2017.
(f)Total return amounts have not been annualized.
(g)Computed on an annualized basis.
(h)Excludes expense reimbursement from Manager.
See accompanying notes.
259
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends fromDistributions | Total | Net Asset | ||||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
DIVERSIFIED INTERNATIONAL ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 17.01 | $ | 0.31 | ($ | 3.25 | ) | ($ | 2.94 | ) | ($ | 0.35 | ) | $– | ($0.35) | $ | 13.72 | |||||||||||
2017 | 13.42 | 0.21 | 3.67 | 3.88 | (0.29 | ) | – | (0.29 | ) | 17.01 | ||||||||||||||||||
2016 | 13.68 | 0.24 | (0.18 | ) | 0.06 | (0.32 | ) | – | (0.32 | ) | 13.42 | |||||||||||||||||
2015 | 14.08 | 0.26 | (0.29 | ) | (0.03 | ) | (0.37 | ) | – | (0.37 | ) | 13.68 | ||||||||||||||||
2014 | 14.87 | 0.24 | (0.70 | ) | (0.46 | ) | (0.33 | ) | – | (0.33 | ) | 14.08 | ||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 17.14 | 0.27 | (3.28 | ) | (3.01 | ) | (0.32 | ) | – | (0.32 | ) | 13.81 | ||||||||||||||||
2017 | 13.52 | 0.17 | 3.71 | 3.88 | (0.26 | ) | – | (0.26 | ) | 17.14 | ||||||||||||||||||
2016 | 13.78 | 0.20 | (0.18 | ) | 0.02 | (0.28 | ) | – | (0.28 | ) | 13.52 | |||||||||||||||||
2015 | 14.19 | 0.21 | (0.29 | ) | (0.08 | ) | (0.33 | ) | – | (0.33 | ) | 13.78 | ||||||||||||||||
2014 | 14.97 | 0.21 | (0.70 | ) | (0.49 | ) | (0.29 | ) | – | (0.29 | ) | 14.19 | ||||||||||||||||
EQUITY INCOME ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 26.08 | 0.64 | (1.72 | ) | (1.08 | ) | (0.52 | ) | (1.62 | ) | (2.14 | ) | 22.86 | |||||||||||||||
2017 | 23.20 | 0.56 | 4.14 | 4.70 | (0.58 | ) | (1.24 | ) | (1.82 | ) | 26.08 | |||||||||||||||||
2016 | 21.67 | 0.57 | 2.77 | 3.34 | (0.64 | ) | (1.17 | ) | (1.81 | ) | 23.20 | |||||||||||||||||
2015 | 23.12 | 0.58 | (1.46 | ) | (0.88 | ) | (0.57 | ) | – | (0.57 | ) | 21.67 | ||||||||||||||||
2014 | 21.00 | 0.57 | 2.09 | 2.66 | (0.54 | ) | – | (0.54 | ) | 23.12 | ||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 25.87 | 0.57 | (1.70 | ) | (1.13 | ) | (0.46 | ) | (1.62 | ) | (2.08 | ) | 22.66 | |||||||||||||||
2017 | 23.03 | 0.49 | 4.11 | 4.60 | (0.52 | ) | (1.24 | ) | (1.76 | ) | 25.87 | |||||||||||||||||
2016 | 21.52 | 0.51 | 2.75 | 3.26 | (0.58 | ) | (1.17 | ) | (1.75 | ) | 23.03 | |||||||||||||||||
2015 | 22.96 | 0.52 | (1.45 | ) | (0.93 | ) | (0.51 | ) | – | (0.51 | ) | 21.52 | ||||||||||||||||
2014 | 20.87 | 0.51 | 2.07 | 2.58 | (0.49 | ) | – | (0.49 | ) | 22.96 | ||||||||||||||||||
GOVERNMENT & HIGH QUALITY BOND ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 9.76 | 0.23 | (0.15 | ) | 0.08 | (0.37 | ) | – | (0.37 | ) | 9.47 | |||||||||||||||||
2017 | 9.98 | 0.31 | (0.12 | ) | 0.19 | (0.41 | ) | – | (0.41 | ) | 9.76 | |||||||||||||||||
2016 | 10.16 | 0.33 | (0.14 | ) | 0.19 | (0.37 | ) | – | (0.37 | ) | 9.98 | |||||||||||||||||
2015 | 10.44 | 0.27 | (0.19 | ) | 0.08 | (0.35 | ) | (0.01 | ) | (0.36 | ) | 10.16 | ||||||||||||||||
2014 | 10.33 | 0.27 | 0.25 | 0.52 | (0.41 | ) | – | (0.41 | ) | 10.44 | ||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 9.75 | 0.21 | (0.15 | ) | 0.06 | (0.35 | ) | – | (0.35 | ) | 9.46 | |||||||||||||||||
2017 | 9.98 | 0.28 | (0.13 | ) | 0.15 | (0.38 | ) | – | (0.38 | ) | 9.75 | |||||||||||||||||
2016 | 10.17 | 0.31 | (0.15 | ) | 0.16 | (0.35 | ) | – | (0.35 | ) | 9.98 | |||||||||||||||||
2015 | 10.45 | 0.25 | (0.18 | ) | 0.07 | (0.34 | ) | (0.01 | ) | (0.35 | ) | 10.17 | ||||||||||||||||
2014 | 10.34 | 0.24 | 0.25 | 0.49 | (0.38 | ) | – | (0.38 | ) | 10.45 |
See accompanying notes.
260
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
(17.54 | )% | $ | 233,612 | 0.91 | % | 1.91 | % | 59.3 | % | ||||||
29.06 | 292,975 | 0.91 | 1.37 | 42.8 | |||||||||||
0.36 | 243,997 | 0.91 | 1.77 | 56.8 | |||||||||||
(0.35 | ) | 273,300 | 0.88 | 1.80 | 48.2 | ||||||||||
(3.21 | ) | 429,194 | 0.86 | 1.64 | 62.1 | ||||||||||
(17.78 | ) | 2,020 | 1.16 | 1.65 | 59.3 | ||||||||||
28.79 | 1,868 | 1.16 | 1.10 | 42.8 | |||||||||||
0.11 | 1,362 | 1.16 | 1.50 | 56.8 | |||||||||||
(0.65 | ) | 1,360 | 1.13 | 1.47 | 48.2 | ||||||||||
(3.41 | ) | 1,266 | 1.11 | 1.38 | 62.1 | ||||||||||
(5.01 | ) | 636,177 | 0.49 | 2.47 | 13.2 | ||||||||||
21.08 | 572,629 | 0.50 | 2.26 | 15.9 | |||||||||||
15.72 | 525,829 | 0.50 | 2.54 | 17.1 | |||||||||||
(3.93 | ) | 513,126 | 0.49 | 2.54 | 10.7 | ||||||||||
12.80 | 599,407 | 0.48 | 2.57 | 11.6 | |||||||||||
(5.24 | ) | 25,207 | 0.74 | 2.23 | 13.2 | ||||||||||
20.77 | 27,469 | 0.75 | 2.00 | 15.9 | |||||||||||
15.43 | 24,197 | 0.75 | 2.29 | 17.1 | |||||||||||
(4.15 | ) | 23,215 | 0.74 | 2.29 | 10.7 | ||||||||||
12.46 | 25,491 | 0.73 | 2.32 | 11.6 | |||||||||||
0.91 | 219,612 | 0.51 | 2.43 | 17.4 | |||||||||||
1.88 | 241,839 | 0.51 | 3.09 | 24.3 | |||||||||||
1.80 | 247,620 | 0.51 | 3.25 | 25.8 | |||||||||||
0.79 | 286,659 | 0.51 | 2.61 | 21.9 | |||||||||||
5.08 | 314,509 | 0.51 | 2.56 | 19.1 | |||||||||||
0.69 | 2,627 | 0.76 | 2.17 | 17.4 | |||||||||||
1.50 | 2,302 | 0.76 | 2.83 | 24.3 | |||||||||||
1.54 | 2,307 | 0.76 | 3.02 | 25.8 | |||||||||||
0.67 | 1,837 | 0.76 | 2.37 | 21.9 | |||||||||||
4.75 | 916 | 0.76 | 2.31 | 19.1 |
(a)Calculated based on average shares outstanding during the period.
(b)Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
See accompanying notes.
261
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 | Net Realized | ||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | |||||||||||||||||||||
Beginning of | Income (Loss) | Gain (Loss) on | Investment | Net Investment | Total Dividends | Net Asset Value, | |||||||||||||||||||
Period | (a) | Investments | Operations | Income | and Distributions | End of Period | |||||||||||||||||||
INCOME ACCOUNT | |||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||
2018 | $ | 10.39 | $ | 0.36 | ($ | 0.28 | ) | $ | 0.08 | ($ | 0.46 | ) | ($0.46) | $ | 10.01 | ||||||||||
2017 | 10.34 | 0.36 | 0.16 | 0.52 | (0.47 | ) | (0.47 | ) | 10.39 | ||||||||||||||||
2016 | 10.24 | 0.38 | 0.21 | 0.59 | (0.49 | ) | (0.49 | ) | 10.34 | ||||||||||||||||
2015 | 10.78 | 0.39 | (0.46 | ) | (0.07 | ) | (0.47 | ) | (0.47 | ) | 10.24 | ||||||||||||||
2014 | 10.68 | 0.43 | 0.16 | 0.59 | (0.49 | ) | (0.49 | ) | 10.78 | ||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||
2018 | 10.35 | 0.33 | (0.28 | ) | 0.05 | (0.44 | ) | (0.44 | ) | 9.96 | |||||||||||||||
2017 | 10.30 | 0.34 | 0.16 | 0.50 | (0.45 | ) | (0.45 | ) | 10.35 | ||||||||||||||||
2016 | 10.20 | 0.36 | 0.21 | 0.57 | (0.47 | ) | (0.47 | ) | 10.30 | ||||||||||||||||
2015 | 10.73 | 0.36 | (0.45 | ) | (0.09 | ) | (0.44 | ) | (0.44 | ) | 10.20 | ||||||||||||||
2014 | 10.63 | 0.40 | 0.16 | 0.56 | (0.46 | ) | (0.46 | ) | 10.73 | ||||||||||||||||
INTERNATIONAL EMERGING MARKETS ACCOUNT | |||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||
2018 | 19.40 | 0.19 | (4.25 | ) | (4.06 | ) | (0.22 | ) | (0.22 | ) | 15.12 | ||||||||||||||
2017 | 13.94 | 0.15 | 5.53 | 5.68 | (0.22 | ) | (0.22 | ) | 19.40 | ||||||||||||||||
2016 | 12.88 | 0.14 | 1.08 | 1.22 | (0.16 | ) | (0.16 | ) | 13.94 | ||||||||||||||||
2015 | 15.21 | 0.17 | (2.25 | ) | (2.08 | ) | (0.25 | ) | (0.25 | ) | 12.88 | ||||||||||||||
2014 | 15.94 | 0.20 | (0.78 | ) | (0.58 | ) | (0.15 | ) | (0.15 | ) | 15.21 | ||||||||||||||
Class 2 shares | |||||||||||||||||||||||||
2018 | 19.29 | 0.16 | (4.25 | ) | (4.09 | ) | (0.21 | ) | (0.21 | ) | 14.99 | ||||||||||||||
2017 | 13.89 | 0.10 | 5.51 | 5.61 | (0.21 | ) | (0.21 | ) | 19.29 | ||||||||||||||||
2016 | 12.86 | 0.12 | 1.06 | 1.18 | (0.15 | ) | (0.15 | ) | 13.89 | ||||||||||||||||
2015 | (e) | 16.74 | 0.08 | (3.71 | ) | (3.63 | ) | (0.25 | ) | (0.25 | ) | 12.86 |
See accompanying notes.
262
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
0.78 | % | $ | 178,598 | 0.51 | % | 3.53 | % | 9.4 | % | ||||||
5.12 | 220,194 | 0.51 | 3.47 | 8.7 | |||||||||||
5.72 | 228,874 | 0.51 | 3.66 | 8.1 | |||||||||||
(0.71 | ) | 254,751 | 0.51 | 3.62 | 12.6 | ||||||||||
5.55 | 275,597 | 0.51 | 3.95 | 16.6 | |||||||||||
0.47 | 3,173 | 0.76 | 3.27 | 9.4 | |||||||||||
4.87 | 2,869 | 0.76 | 3.22 | 8.7 | |||||||||||
5.52 | 2,695 | 0.76 | 3.40 | 8.1 | |||||||||||
(0.92 | ) | 2,445 | 0.76 | 3.38 | 12.6 | ||||||||||
5.26 | 3,036 | 0.76 | 3.71 | 16.6 | |||||||||||
(21.02 | ) | 83,366 | 1.35 | (c) | 1.05 | 121.8 | |||||||||
40.84 | 114,735 | 1.35 | (c) | 0.91 | 98.6 | ||||||||||
9.40 | (d) | 85,677 | 1.40 | (c) | 1.07 | 115.0 | |||||||||
(13.81 | ) | 85,434 | 1.37 | 1.18 | 97.3 | ||||||||||
(3.75 | ) | 103,091 | 1.38 | 1.28 | 106.9 | ||||||||||
(21.29 | ) | 1,532 | 1.60 | (c) | 0.92 | 121.8 | |||||||||
40.51 | 935 | 1.60 | (c) | 0.56 | 98.6 | ||||||||||
9.13 | (d) | 125 | 1.65 | (c) | 0.90 | 115.0 | |||||||||
(21.81 | ) (f) | 41 | 1.62 | (g) | 0.90 | (g) | 97.3 | (g) |
(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)During 2016, the Account experienced a significant one-time gain of approximately $0.07/share as the result of a settlement in a litigation proceeding. If such gain had not been recognized, the total return amounts expressed herein would have been lower.
(e)Period from May 1, 2015 date operations commenced, through December 31, 2015.
(f)Total return amounts have not been annualized.
(g)Computed on an annualized basis.
See accompanying notes.
263
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 | Net Realized | ||||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | ||||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | ||||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||||
LARGECAP GROWTH ACCOUNT | |||||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||||
2018 | $ | 32.79 | $ | 0.02 | ($1.91 | ) | ($1.89 | ) | ($0.08 | ) | ($2.57 | ) | ($2.65) | $ | 28.25 | ||||||||||||||
2017 | 24.40 | 0.07 | 8.43 | 8.50 | (0.11 | ) | – | (0.11 | ) | 32.79 | |||||||||||||||||||
2016 | 25.79 | 0.11 | (1.43 | ) | (1.32 | ) | (0.07 | ) | – | (0.07 | ) | 24.40 | |||||||||||||||||
2015 | 24.60 | 0.06 | 1.17 | 1.23 | (0.04 | ) | – | (0.04 | ) | 25.79 | |||||||||||||||||||
2014 | 22.26 | 0.03 | 2.44 | 2.47 | (0.13 | ) | – | (0.13 | ) | 24.60 | |||||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||||
2018 | 32.63 | (0.07 | ) | (1.90 | ) | (1.97 | ) | (0.03 | ) | (2.57 | ) | (2.60 | ) | 28.06 | |||||||||||||||
2017 | 24.29 | (0.02 | ) | 8.40 | 8.38 | (0.04 | ) | – | (0.04 | ) | 32.63 | ||||||||||||||||||
2016 | 25.69 | 0.04 | (1.42 | ) | (1.38 | ) | (0.02 | ) | – | (0.02 | ) | 24.29 | |||||||||||||||||
2015 | 24.53 | – | 1.16 | 1.16 | – | – | – | 25.69 | |||||||||||||||||||||
2014 | 22.20 | (0.03 | ) | 2.44 | 2.41 | (0.08 | ) | – | (0.08 | ) | 24.53 | ||||||||||||||||||
LARGECAP GROWTH ACCOUNT I | |||||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||||
2018 | 31.18 | 0.03 | 1.41 | 1.44 | (0.01 | ) | (2.51 | ) | (2.52 | ) | 30.10 | ||||||||||||||||||
2017 | 24.55 | 0.01 | 8.13 | 8.14 | (0.01 | ) | (1.50 | ) | (1.51 | ) | 31.18 | ||||||||||||||||||
2016 | 26.33 | 0.01 | 0.34 | 0.35 | – | (2.13 | ) | (2.13 | ) | 24.55 | |||||||||||||||||||
2015 | 28.70 | 0.02 | 2.26 | 2.28 | (0.07 | ) | (4.58 | ) | (4.65 | ) | 26.33 | ||||||||||||||||||
2014 | 32.58 | 0.03 | 2.46 | 2.49 | (0.04 | ) | (6.33 | ) | (6.37 | ) | 28.70 | ||||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||||
2018 | 30.99 | (0.02 | ) | 1.38 | 1.36 | – | (2.51 | ) | (2.51 | ) | 29.84 | ||||||||||||||||||
2017 | 24.46 | (0.07 | ) | 8.10 | 8.03 | – | (1.50 | ) | (1.50 | ) | 30.99 | ||||||||||||||||||
2016 | 26.29 | (0.05 | ) | 0.35 | 0.30 | – | (2.13 | ) | (2.13 | ) | 24.46 | ||||||||||||||||||
2015 | (d) | 30.30 | (0.03 | ) | 0.67 | 0.64 | (0.07 | ) | (4.58 | ) | (4.65 | ) | 26.29 |
See accompanying notes.
264
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
(7.30 | )% | $ | 98,106 | 0.69 | % | 0.05 | % | 77.8 | % | ||||||
34.89 | 119,450 | 0.69 | 0.23 | 72.3 | |||||||||||
(5.13 | ) | 96,198 | 0.69 | 0.43 | 78.2 | ||||||||||
4.98 | 118,385 | 0.69 | 0.23 | 47.1 | |||||||||||
11.12 | 123,091 | 0.69 | 0.13 | 67.2 | |||||||||||
(7.54 | ) | 2,184 | 0.94 | (0.20 | ) | 77.8 | |||||||||
34.54 | 1,452 | 0.94 | (0.06 | ) | 72.3 | ||||||||||
(5.38 | ) | 923 | 0.94 | 0.17 | 78.2 | ||||||||||
4.73 | 1,090 | 0.94 | (0.01 | ) | 47.1 | ||||||||||
10.85 | 661 | 0.94 | (0.11 | ) | 67.2 | ||||||||||
3.60 | 296,139 | 0.74 | (c) | 0.08 | 36.9 | ||||||||||
33.71 | 302,147 | 0.75 | (c) | 0.03 | 36.2 | ||||||||||
1.26 | 244,058 | 0.76 | (c) | 0.04 | 36.8 | ||||||||||
7.77 | 252,386 | 0.76 | (c) | 0.07 | 38.6 | ||||||||||
8.61 | 239,629 | 0.76 | (c) | 0.11 | 38.9 | ||||||||||
3.36 | 3,159 | 0.99 | (c) | (0.07 | ) | 36.9 | |||||||||
33.38 | 702 | 1.00 | (c) | (0.25 | ) | 36.2 | |||||||||
1.07 | 127 | 1.01 | (c) | (0.21 | ) | 36.8 | |||||||||
1.94 | (e) | 501 | 1.01 | (c),(f) | (0.19 | ) (f) | 38.6 | (f) |
(a)Calculated based on average shares outstanding during the period.
(b)Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)Reflects Manager's contractual expense limit.
(d)Period from May 1, 2015 date operations commenced, through December 31, 2015.
(e)Total return amounts have not been annualized.
(f)Computed on an annualized basis.
See accompanying notes.
265
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
LARGECAP S&P 500 INDEX ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 18.06 | $ | 0.36 | ($1.06 | ) | ($0.70 | ) | ($0.32 | ) | ($0.65 | ) | ($0.97) | $ | 16.39 | |||||||||||||
2017 | 15.44 | 0.29 | 2.97 | 3.26 | (0.29 | ) | (0.35 | ) | (0.64 | ) | 18.06 | |||||||||||||||||
2016 | 14.41 | 0.29 | 1.36 | 1.65 | (0.25 | ) | (0.37 | ) | (0.62 | ) | 15.44 | |||||||||||||||||
2015 | 14.63 | 0.27 | (0.09 | ) | 0.18 | (0.22 | ) | (0.18 | ) | (0.40 | ) | 14.41 | ||||||||||||||||
2014 | 13.38 | 0.24 | 1.51 | 1.75 | (0.18 | ) | (0.32 | ) | (0.50 | ) | 14.63 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 17.95 | 0.32 | (1.07 | ) | (0.75 | ) | (0.31 | ) | (0.65 | ) | (0.96 | ) | 16.24 | |||||||||||||||
2017 | 15.38 | 0.25 | 2.95 | 3.20 | (0.28 | ) | (0.35 | ) | (0.63 | ) | 17.95 | |||||||||||||||||
2016 | 14.39 | 0.26 | 1.35 | 1.61 | (0.25 | ) | (0.37 | ) | (0.62 | ) | 15.38 | |||||||||||||||||
2015 | (c) | 15.07 | 0.17 | (0.45 | ) | (0.28 | ) | (0.22 | ) | (0.18 | ) | (0.40 | ) | 14.39 | ||||||||||||||
LARGECAP S&P 500 MANAGED VOLATILITY INDEX ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 13.42 | 0.23 | (0.71 | ) | (0.48 | ) | (0.20 | ) | – | (0.20 | ) | 12.74 | ||||||||||||||||
2017 | 12.15 | 0.18 | 2.11 | 2.29 | (0.18 | ) | (0.84 | ) | (1.02 | ) | 13.42 | |||||||||||||||||
2016 | 11.27 | 0.19 | 0.96 | 1.15 | (0.12 | ) | (0.15 | ) | (0.27 | ) | 12.15 | |||||||||||||||||
2015 | 11.22 | 0.16 | (0.07 | ) | 0.09 | – | (0.04 | ) | (0.04 | ) | 11.27 | |||||||||||||||||
2014 | 10.46 | 0.14 | 1.09 | 1.23 | (0.08 | ) | (0.39 | ) | (0.47 | ) | 11.22 |
See accompanying notes.
266
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | ||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | ||||||||||
(4.58 | )% | $2,378,088 | 0.25 | % | 1.94 | % | 8.7 | % | ||||||
21.49 | 2,563,986 | 0.25 | 1.71 | 3.0 | ||||||||||
11.59 | 2,262,283 | 0.25 | 1.96 | 6.4 | ||||||||||
1.14 | 2,033,459 | 0.25 | 1.82 | 6.3 | ||||||||||
13.29 | 1,863,035 | 0.25 | 1.74 | 2.8 | ||||||||||
(4.90 | ) | 7,081 | 0.50 | 1.77 | 8.7 | |||||||||
21.20 | 3,234 | 0.50 | 1.46 | 3.0 | ||||||||||
11.30 | 766 | 0.50 | 1.74 | 6.4 | ||||||||||
(1.95) (d) | 161 | 0.50 | (e) | 1.78 | (e) | 6.3 | (e) | |||||||
(3.73 | ) | 205,655 | 0.46 | 1.64 | 11.2 | |||||||||
19.55 | 222,026 | 0.46 | (f) | 1.40 | 3.0 | |||||||||
10.33 | 198,548 | 0.46 | (f) | 1.63 | 4.8 | |||||||||
0.83 | 161,654 | 0.47 | (f) | 1.46 | 5.5 | |||||||||
11.77 | 97,236 | 0.49 | (f) | 1.29 | 24.6 |
(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 May 1, 2015 date operations commenced, through December 31, 2015.
(d)Total return amounts have not been annualized.
(e)Computed on an annualized basis.
(f)Reflects Manager's contractual expense limit.
See accompanying notes.
267
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
MIDCAP ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 59.42 | $ | 0.17 | ($2.93 | ) | ($2.76 | ) | ($0.17 | ) | ($7.96 | ) | ($8.13) | $ | 48.53 | |||||||||||||
2017 | 50.96 | 0.19 | 12.48 | 12.67 | (0.32 | ) | (3.89 | ) | (4.21 | ) | 59.42 | |||||||||||||||||
2016 | 55.24 | 0.33 | 5.30 | 5.63 | (0.24 | ) | (9.67 | ) | (9.91 | ) | 50.96 | |||||||||||||||||
2015 | 60.79 | 0.22 | 1.19 | 1.41 | (0.32 | ) | (6.64 | ) | (6.96 | ) | 55.24 | |||||||||||||||||
2014 | 59.37 | 0.36 | 6.96 | 7.32 | (0.32 | ) | (5.58 | ) | (5.90 | ) | 60.79 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 59.05 | 0.02 | (2.89 | ) | (2.87 | ) | (0.03 | ) | (7.96 | ) | (7.99 | ) | 48.19 | |||||||||||||||
2017 | 50.69 | 0.05 | 12.39 | 12.44 | (0.19 | ) | (3.89 | ) | (4.08 | ) | 59.05 | |||||||||||||||||
2016 | 54.97 | 0.20 | 5.27 | 5.47 | (0.08 | ) | (9.67 | ) | (9.75 | ) | 50.69 | |||||||||||||||||
2015 | 60.54 | 0.07 | 1.17 | 1.24 | (0.17 | ) | (6.64 | ) | (6.81 | ) | 54.97 | |||||||||||||||||
2014 | 59.16 | 0.21 | 6.93 | 7.14 | (0.18 | ) | (5.58 | ) | (5.76 | ) | 60.54 | |||||||||||||||||
MULTI-ASSET INCOME ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 11.24 | 0.51 | (1.13 | ) | (0.62 | ) | (0.29 | ) | (0.03 | ) | (0.32 | ) | 10.30 | |||||||||||||||
2017 | 10.24 | 0.46 | 0.76 | 1.22 | (0.19 | ) | (0.03 | ) | (0.22 | ) | 11.24 | |||||||||||||||||
2016 | 9.72 | 0.66 | 0.11 | 0.77 | (0.23 | ) | (0.02 | ) | (0.25 | ) | 10.24 | |||||||||||||||||
2015 | (e) | 10.00 | 0.24 | (0.52 | ) | (0.28 | ) | – | – | – | 9.72 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 11.18 | 0.50 | (1.15 | ) | (0.65 | ) | (0.29 | ) | (0.03 | ) | (0.32 | ) | 10.21 | |||||||||||||||
2017 | 10.20 | 0.49 | 0.71 | 1.20 | (0.19 | ) | (0.03 | ) | (0.22 | ) | 11.18 | |||||||||||||||||
2016 | 9.71 | 0.46 | 0.28 | 0.74 | (0.23 | ) | (0.02 | ) | (0.25 | ) | 10.20 | |||||||||||||||||
2015 | (e) | 10.00 | 0.23 | (0.52 | ) | (0.29 | ) | – | – | – | 9.71 |
See accompanying notes.
268
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
(6.55 | )% | $ | 474,365 | 0.54 | % | 0.29 | % | 24.6 | % | ||||||
25.51 | 575,104 | 0.54 | 0.34 | 13.4 | |||||||||||
10.37 | 576,634 | 0.54 | 0.62 | 13.6 | |||||||||||
1.64 | 617,437 | 0.53 | 0.37 | 26.3 | |||||||||||
12.99 | 676,836 | 0.53 | 0.60 | 21.6 | |||||||||||
(6.79) (c) | 15,710 | 0.79 | 0.04 | 24.6 | |||||||||||
25.19 | (c) | 17,792 | 0.79 | 0.09 | 13.4 | ||||||||||
10.11 | 14,985 | 0.79 | 0.38 | 13.6 | |||||||||||
1.37 | 15,243 | 0.78 | 0.12 | 26.3 | |||||||||||
12.70 | 15,960 | 0.78 | 0.35 | 21.6 | |||||||||||
(5.63 | ) | 329 | 0.08 | (d) | 4.68 | 32.9 | |||||||||
11.99 | 241 | 0.08 | (d) | 4.23 | 22.7 | ||||||||||
7.96 | 183 | 0.08 | (d) | 6.46 | 61.0 | ||||||||||
(2.80) (f) | 10 | 0.08 | (d),(g) | 5.67 | (g) | 0.0 | |||||||||
(5.93 | ) | 54 | 0.33 | (d) | 4.57 | 32.9 | |||||||||
11.84 | 26 | 0.33 | (d) | 4.56 | 22.7 | ||||||||||
7.65 | 10 | 0.33 | (d) | 4.57 | 61.0 | ||||||||||
(2.90) (f) | 10 | 0.33 | (d),(g) | 5.41 | (g) | 0.0 |
(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)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.
(d)Reflects Manager's contractual expense limit.
(e)Period from July 28, 2015 date operations commenced, through December 31, 2015.
(f)Total return amounts have not been annualized.
(g)Computed on an annualized basis.
See accompanying notes.
269
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
PRINCIPAL CAPITAL APPRECIATION ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 28.54 | $ | 0.44 | ($1.19 | ) | ($0.75 | ) | ($0.34 | ) | ($1.59 | ) | ($1.93) | $ | 25.86 | |||||||||||||
2017 | 23.94 | 0.28 | 4.66 | 4.94 | (0.34 | ) | – | (0.34 | ) | 28.54 | ||||||||||||||||||
2016 | 22.35 | 0.30 | 1.73 | 2.03 | (0.26 | ) | (0.18 | ) | (0.44 | ) | 23.94 | |||||||||||||||||
2015 | 22.31 | 0.30 | 0.20 | 0.50 | (0.06 | ) | (0.40 | ) | (0.46 | ) | 22.35 | |||||||||||||||||
2014 | 24.45 | 0.24 | 2.52 | 2.76 | (0.81 | ) | (4.09 | ) | (4.90 | ) | 22.31 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 28.25 | 0.37 | (1.17 | ) | (0.80 | ) | (0.28 | ) | (1.59 | ) | (1.87 | ) | 25.58 | |||||||||||||||
2017 | 23.71 | 0.22 | 4.60 | 4.82 | (0.28 | ) | – | (0.28 | ) | 28.25 | ||||||||||||||||||
2016 | 22.14 | 0.24 | 1.72 | 1.96 | (0.21 | ) | (0.18 | ) | (0.39 | ) | 23.71 | |||||||||||||||||
2015 | 22.11 | 0.23 | 0.21 | 0.44 | (0.01 | ) | (0.40 | ) | (0.41 | ) | 22.14 | |||||||||||||||||
2014 | 24.27 | 0.18 | 2.50 | 2.68 | (0.75 | ) | (4.09 | ) | (4.84 | ) | 22.11 | |||||||||||||||||
PRINCIPAL LIFETIME 2010 ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 13.41 | 0.32 | (0.80 | ) | (0.48 | ) | (0.41 | ) | (0.34 | ) | (0.75 | ) | 12.18 | |||||||||||||||
2017 | 12.48 | 0.34 | 1.07 | 1.41 | (0.29 | ) | (0.19 | ) | (0.48 | ) | 13.41 | |||||||||||||||||
2016 | 12.18 | 0.27 | 0.37 | 0.64 | (0.27 | ) | (0.07 | ) | (0.34 | ) | 12.48 | |||||||||||||||||
2015 | 12.60 | 0.25 | (0.39 | ) | (0.14 | ) | (0.28 | ) | – | (0.28 | ) | 12.18 | ||||||||||||||||
2014 | 12.29 | 0.25 | 0.34 | 0.59 | (0.28 | ) | – | (0.28 | ) | 12.60 |
See accompanying notes.
270
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
(3.41 | )% | $ | 128,547 | 0.63 | % | 1.52 | % | 44.9 | % | ||||||
20.75 | 154,472 | 0.63 | 1.07 | 28.5 | |||||||||||
9.11 | 147,193 | 0.63 | 1.31 | 33.7 | |||||||||||
2.18 | 154,732 | 0.64 | 1.33 | 22.1 | (c) | ||||||||||
12.45 | 33,190 | 0.66 | 1.02 | 8.6 | |||||||||||
(3.64) (d) | 8,757 | 0.88 | 1.28 | 44.9 | |||||||||||
20.46 | (d) | 8,526 | 0.88 | 0.83 | 28.5 | ||||||||||
8.85 | 7,420 | 0.88 | 1.06 | 33.7 | |||||||||||
1.94 | 7,517 | 0.89 | 1.05 | 22.1 | (c) | ||||||||||
12.19 | 6,891 | 0.91 | 0.77 | 8.6 | |||||||||||
(3.87 | ) | 31,890 | 0.02 | (e) | 2.43 | 29.0 | |||||||||
11.42 | 41,836 | 0.01 | (e) | 2.57 | 21.7 | ||||||||||
5.25 | 42,641 | 0.02 | (e) | 2.16 | 28.9 | ||||||||||
(1.17 | ) | 41,132 | 0.04 | (e) | 2.00 | 24.6 | |||||||||
4.81 | 47,312 | 0.04 | (e) | 2.02 | 41.3 |
(a)Calculated based on average shares outstanding during the period.
(b)Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)Portfolio turnover rate excludes approximately $1,237,000 of purchases from portfolio realignment from the acquisition of LargeCap Blend Account II.
(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.
(e)Does not include expenses of the investment companies in which the Account invests.
See accompanying notes.
271
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
PRINCIPAL LIFETIME 2020 ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 14.11 | $ | 0.33 | ($1.04 | ) | ($0.71 | ) | ($0.38 | ) | ($0.42 | ) | ($0.80) | $ | 12.60 | |||||||||||||
2017 | 12.66 | 0.36 | 1.52 | 1.88 | (0.27 | ) | (0.16 | ) | (0.43 | ) | 14.11 | |||||||||||||||||
2016 | 12.64 | 0.26 | 0.47 | 0.73 | (0.25 | ) | (0.46 | ) | (0.71 | ) | 12.66 | |||||||||||||||||
2015 | 13.77 | 0.24 | (0.37 | ) | (0.13 | ) | (0.36 | ) | (0.64 | ) | (1.00 | ) | 12.64 | |||||||||||||||
2014 | 13.62 | 0.33 | 0.44 | 0.77 | (0.33 | ) | (0.29 | ) | (0.62 | ) | 13.77 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 14.03 | 0.35 | (1.09 | ) | (0.74 | ) | (0.38 | ) | (0.42 | ) | (0.80 | ) | 12.49 | |||||||||||||||
2017 | 12.62 | 0.86 | 0.98 | 1.84 | (0.27 | ) | (0.16 | ) | (0.43 | ) | 14.03 | |||||||||||||||||
2016 | 12.61 | 0.23 | 0.48 | 0.71 | (0.24 | ) | (0.46 | ) | (0.70 | ) | 12.62 | |||||||||||||||||
2015 | (d) | 14.26 | 0.27 | (0.92 | ) | (0.65 | ) | (0.36 | ) | (0.64 | ) | (1.00 | ) | 12.61 | ||||||||||||||
PRINCIPAL LIFETIME 2030 ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 13.17 | 0.29 | (1.15 | ) | (0.86 | ) | (0.32 | ) | (0.41 | ) | (0.73 | ) | 11.58 | |||||||||||||||
2017 | 11.45 | 0.34 | 1.73 | 2.07 | (0.20 | ) | (0.15 | ) | (0.35 | ) | 13.17 | |||||||||||||||||
2016 | 11.45 | 0.22 | 0.45 | 0.67 | (0.19 | ) | (0.48 | ) | (0.67 | ) | 11.45 | |||||||||||||||||
2015 | 12.34 | 0.20 | (0.30 | ) | (0.10 | ) | (0.32 | ) | (0.47 | ) | (0.79 | ) | 11.45 | |||||||||||||||
2014 | 14.05 | 0.36 | 0.45 | 0.81 | (0.31 | ) | (2.21 | ) | (2.52 | ) | 12.34 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 13.08 | 0.37 | (1.26 | ) | (0.89 | ) | (0.31 | ) | (0.41 | ) | (0.72 | ) | 11.47 | |||||||||||||||
2017 | 11.40 | 0.56 | 1.47 | 2.03 | (0.20 | ) | (0.15 | ) | (0.35 | ) | 13.08 | |||||||||||||||||
2016 | 11.43 | 0.27 | 0.37 | 0.64 | (0.19 | ) | (0.48 | ) | (0.67 | ) | 11.40 | |||||||||||||||||
2015 | (d) | 12.85 | 0.25 | (0.88 | ) | (0.63 | ) | (0.32 | ) | (0.47 | ) | (0.79 | ) | 11.43 |
See accompanying notes.
272
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
(5.40 | )% | $ | 172,173 | 0.01 | %(c) | 2.37 | % | 28.7 | % | ||||||
15.00 | 197,935 | 0.00 | 2.64 | 23.6 | |||||||||||
5.76 | 186,646 | 0.01 | (c) | 2.03 | 17.7 | ||||||||||
(1.13 | ) | 190,987 | 0.03 | (c) | 1.79 | 27.6 | |||||||||
5.75 | 211,470 | 0.03 | (c) | 2.40 | 31.9 | ||||||||||
(5.68 | ) | 1,313 | 0.26 | (c) | 2.53 | 28.7 | |||||||||
14.70 | 674 | 0.25 | (c) | 6.24 | 23.6 | ||||||||||
5.56 | 26 | 0.26 | (c) | 1.83 | 17.7 | ||||||||||
(4.74) (e) | 25 | 0.28 | (c),(f) | 3.11 | (f) | 27.6 | (f) | ||||||||
(7.06 | ) | 140,617 | 0.01 | (c) | 2.21 | 28.6 | |||||||||
18.26 | 152,469 | 0.01 | (c) | 2.77 | 31.0 | ||||||||||
5.87 | 123,825 | 0.01 | (c) | 1.89 | 22.4 | ||||||||||
(1.05 | ) | 116,691 | 0.04 | (c) | 1.67 | 31.3 | |||||||||
6.06 | 116,965 | 0.04 | (c) | 2.67 | 23.9 | ||||||||||
(7.33 | ) | 1,798 | 0.26 | (c) | 2.87 | 28.6 | |||||||||
17.95 | 852 | 0.26 | (c) | 4.45 | 31.0 | ||||||||||
5.56 | 92 | 0.26 | (c) | 2.37 | 22.4 | ||||||||||
(5.14) (e) | 26 | 0.29 | (c),(f) | 3.22 | (f) | 31.3 | (f) |
(a)Calculated based on average shares outstanding during the period.
(b)Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)Does not include expenses of the investment companies in which the Account invests.
(d)Period from May 1, 2015 date operations commenced, through December 31, 2015.
(e)Total return amounts have not been annualized.
(f)Computed on an annualized basis.
See accompanying notes.
273
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
PRINCIPAL LIFETIME 2040 ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 15.97 | $ | 0.34 | ($1.50 | ) | ($1.16 | ) | ($0.33 | ) | ($0.54 | ) | ($0.87) | $ | 13.94 | |||||||||||||
2017 | 13.52 | 0.36 | 2.41 | 2.77 | (0.20 | ) | (0.12 | ) | (0.32 | ) | 15.97 | |||||||||||||||||
2016 | 13.53 | 0.22 | 0.51 | 0.73 | (0.20 | ) | (0.54 | ) | (0.74 | ) | 13.52 | |||||||||||||||||
2015 | 14.50 | 0.22 | (0.31 | ) | (0.09 | ) | (0.36 | ) | (0.52 | ) | (0.88 | ) | 13.53 | |||||||||||||||
2014 | 14.94 | 0.42 | 0.49 | 0.91 | (0.31 | ) | (1.04 | ) | (1.35 | ) | 14.50 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 15.88 | 0.37 | (1.56 | ) | (1.19 | ) | (0.32 | ) | (0.54 | ) | (0.86 | ) | 13.83 | |||||||||||||||
2017 | 13.47 | 0.41 | 2.32 | 2.73 | (0.20 | ) | (0.12 | ) | (0.32 | ) | 15.88 | |||||||||||||||||
2016 | 13.51 | 0.45 | 0.24 | 0.69 | (0.19 | ) | (0.54 | ) | (0.73 | ) | 13.47 | |||||||||||||||||
2015 | (d) | 15.14 | 0.18 | (0.93 | ) | (0.75 | ) | (0.36 | ) | (0.52 | ) | (0.88 | ) | 13.51 | ||||||||||||||
PRINCIPAL LIFETIME 2050 ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 15.62 | 0.31 | (1.53 | ) | (1.22 | ) | (0.33 | ) | (0.70 | ) | (1.03 | ) | 13.37 | |||||||||||||||
2017 | 13.06 | 0.32 | 2.55 | 2.87 | (0.19 | ) | (0.12 | ) | (0.31 | ) | 15.62 | |||||||||||||||||
2016 | 13.07 | 0.21 | 0.52 | 0.73 | (0.18 | ) | (0.56 | ) | (0.74 | ) | 13.06 | |||||||||||||||||
2015 | 14.18 | 0.20 | (0.26 | ) | (0.06 | ) | (0.38 | ) | (0.67 | ) | (1.05 | ) | 13.07 | |||||||||||||||
2014 | 14.96 | 0.40 | 0.50 | 0.90 | (0.34 | ) | (1.34 | ) | (1.68 | ) | 14.18 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 15.53 | 0.32 | (1.57 | ) | (1.25 | ) | (0.31 | ) | (0.70 | ) | (1.01 | ) | 13.27 | |||||||||||||||
2017 | 13.01 | 0.58 | 2.24 | 2.82 | (0.18 | ) | (0.12 | ) | (0.30 | ) | 15.53 | |||||||||||||||||
2016 | 13.05 | 0.31 | 0.37 | 0.68 | (0.16 | ) | (0.56 | ) | (0.72 | ) | 13.01 | |||||||||||||||||
2015 | (d) | 14.84 | 0.18 | (0.92 | ) | (0.74 | ) | (0.38 | ) | (0.67 | ) | (1.05 | ) | 13.05 |
See accompanying notes.
274
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | ||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | ||||||||||
(7.85 | )% | $ | 62,741 | 0.01 | %(c) | 2.17 | % | 14.5 | % | |||||
20.68 | 63,759 | 0.01 | (c) | 2.43 | 28.3 | |||||||||
5.45 | 49,980 | 0.02 | (c) | 1.68 | 30.4 | |||||||||
(0.85 | ) | 45,261 | 0.04 | (c) | 1.52 | 24.2 | ||||||||
6.21 | 42,304 | 0.05 | (c) | 2.83 | 21.1 | |||||||||
(8.12 | ) | 657 | 0.26 | (c) | 2.39 | 14.5 | ||||||||
20.41 | 377 | 0.26 | (c) | 2.74 | 28.3 | |||||||||
5.16 | 131 | 0.27 | (c) | 3.34 | 30.4 | |||||||||
(5.18) (e) | 10 | 0.29 | (c),(f) | 1.97 | (f) | 24.2 | (f) | |||||||
(8.64 | ) | 30,354 | 0.02 | (c) | 2.03 | 22.6 | ||||||||
22.14 | 31,610 | 0.02 | (c) | 2.23 | 36.5 | |||||||||
5.58 | 26,674 | 0.03 | (c) | 1.64 | 33.1 | |||||||||
(0.69 | ) | 23,502 | 0.05 | (c) | 1.46 | 26.6 | ||||||||
6.21 | 21,796 | 0.06 | (c) | 2.70 | 28.5 | |||||||||
(8.87 | ) | 926 | 0.27 | (c) | 2.09 | 22.6 | ||||||||
21.89 | 777 | 0.27 | (c) | 3.90 | 36.5 | |||||||||
5.24 | 94 | 0.28 | (c) | 2.39 | 33.1 | |||||||||
(5.25) (e) | 35 | 0.30 | (c),(f) | 2.03 | (f) | 26.6 | (f) |
(a)Calculated based on average shares outstanding during the period.
(b)Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)Does not include expenses of the investment companies in which the Account invests.
(d)Period from May 1, 2015 date operations commenced, through December 31, 2015.
(e)Total return amounts have not been annualized.
(f)Computed on an annualized basis.
See accompanying notes.
275
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
PRINCIPAL LIFETIME 2060 ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 14.38 | $ | 0.25 | ($1.47 | ) | ($1.22 | ) | ($0.31 | ) | ($0.53 | ) | ($0.84) | $ | 12.32 | |||||||||||||
2017 | 11.88 | 0.40 | 2.29 | 2.69 | (0.12 | ) | (0.07 | ) | (0.19 | ) | 14.38 | |||||||||||||||||
2016 | 11.75 | 0.18 | 0.46 | 0.64 | (0.13 | ) | (0.38 | ) | (0.51 | ) | 11.88 | |||||||||||||||||
2015 | 12.19 | 0.20 | (0.28 | ) | (0.08 | ) | (0.15 | ) | (0.21 | ) | (0.36 | ) | 11.75 | |||||||||||||||
2014 | 11.58 | 0.39 | 0.25 | 0.64 | (0.01 | ) | (0.02 | ) | (0.03 | ) | 12.19 | |||||||||||||||||
PRINCIPAL LIFETIME STRATEGIC INCOME ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 12.11 | 0.31 | (0.66 | ) | (0.35 | ) | (0.33 | ) | (0.13 | ) | (0.46 | ) | 11.30 | |||||||||||||||
2017 | 11.40 | 0.30 | 0.69 | 0.99 | (0.28 | ) | – | (0.28 | ) | 12.11 | ||||||||||||||||||
2016 | 11.15 | 0.26 | 0.27 | 0.53 | (0.28 | ) | – | (0.28 | ) | 11.40 | ||||||||||||||||||
2015 | 11.51 | 0.25 | (0.35 | ) | (0.10 | ) | (0.26 | ) | – | (0.26 | ) | 11.15 | ||||||||||||||||
2014 | 11.29 | 0.23 | 0.29 | 0.52 | (0.30 | ) | – | (0.30 | ) | 11.51 | ||||||||||||||||||
REAL ESTATE SECURITIES ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 20.62 | 0.37 | (1.09 | ) | (0.72 | ) | (0.37 | ) | (1.67 | ) | (2.04 | ) | 17.86 | |||||||||||||||
2017 | 21.30 | 0.25 | 1.62 | 1.87 | (0.39 | ) | (2.16 | ) | (2.55 | ) | 20.62 | |||||||||||||||||
2016 | 22.20 | 0.31 | 1.09 | 1.40 | (0.32 | ) | (1.98 | ) | (2.30 | ) | 21.30 | |||||||||||||||||
2015 | 22.33 | 0.34 | 0.57 | 0.91 | (0.34 | ) | (0.70 | ) | (1.04 | ) | 22.20 | |||||||||||||||||
2014 | 17.08 | 0.29 | 5.28 | 5.57 | (0.32 | ) | – | (0.32 | ) | 22.33 | ||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 20.70 | 0.34 | (1.12 | ) | (0.78 | ) | (0.33 | ) | (1.67 | ) | (2.00 | ) | 17.92 | |||||||||||||||
2017 | 21.36 | 0.19 | 1.64 | 1.83 | (0.33 | ) | (2.16 | ) | (2.49 | ) | 20.70 | |||||||||||||||||
2016 | 22.29 | 0.28 | 1.06 | 1.34 | (0.29 | ) | (1.98 | ) | (2.27 | ) | 21.36 | |||||||||||||||||
2015 | 22.45 | 0.34 | 0.53 | 0.87 | (0.33 | ) | (0.70 | ) | (1.03 | ) | 22.29 | |||||||||||||||||
2014 | 17.18 | 0.27 | 5.27 | 5.54 | (0.27 | ) | – | (0.27 | ) | 22.45 |
See accompanying notes.
276
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
(9.25 | )% | $ | 4,649 | 0.10%(c),(d) | 1.71 | % | 84.9 | % | |||||||
22.74 | 5,712 | 0.10 | (c),(d) | 2.98 | 33.1 | ||||||||||
5.52 | 2,644 | 0.10 | (c),(d) | 1.55 | 43.1 | ||||||||||
(0.75 | ) | 2,097 | 0.13 | (c),(d) | 1.65 | 30.3 | |||||||||
5.58 | 825 | 0.13 | (c),(d) | 3.28 | 43.2 | ||||||||||
(3.00 | ) | 20,664 | 0.03 | (d) | 2.61 | 31.2 | |||||||||
8.76 | 24,630 | 0.02 | (d) | 2.56 | 20.0 | ||||||||||
4.77 | 24,741 | 0.03 | (d) | 2.29 | 28.5 | ||||||||||
(0.95 | ) | 24,452 | 0.05 | (d) | 2.21 | 24.4 | |||||||||
4.57 | 30,016 | 0.05 | (d) | 2.01 | 39.8 | ||||||||||
(4.21 | ) | 133,429 | 0.89 | 1.89 | 17.3 | ||||||||||
9.19 | 154,615 | 0.89 | 1.19 | 19.6 | |||||||||||
5.85 | 158,760 | 0.89 | 1.38 | 31.3 | |||||||||||
4.21 | 159,292 | 0.89 | 1.54 | 22.8 | |||||||||||
32.82 | 166,701 | 0.89 | 1.48 | 15.7 | |||||||||||
(4.47 | ) | 3,493 | 1.14 | 1.73 | 17.3 | ||||||||||
8.94 | 2,830 | 1.14 | 0.89 | 19.6 | |||||||||||
5.53 | 4,215 | 1.14 | 1.26 | 31.3 | |||||||||||
4.00 | 1,994 | 1.14 | 1.56 | 22.8 | |||||||||||
32.44 | 492 | 1.14 | 1.37 | 15.7 |
(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)Reflects Manager's contractual expense limit.
(d)Does not include expenses of the investment companies in which the Account invests.
See accompanying notes.
277
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 | Net Realized | ||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | ||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | ||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||
SAM BALANCED PORTFOLIO | |||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||
2018 | $ | 15.89 | $ | 0.36 | ($1.07 | ) | ($0.71 | ) | ($0.50 | ) | ($0.78 | ) | ($1.28) | $ | 13.90 | ||||||||||||
2017 | 14.44 | 0.45 | 1.71 | 2.16 | (0.34 | ) | (0.37 | ) | (0.71 | ) | 15.89 | ||||||||||||||||
2016 | 14.69 | 0.30 | 0.70 | 1.00 | (0.32 | ) | (0.93 | ) | (1.25 | ) | 14.44 | ||||||||||||||||
2015 | 16.51 | 0.30 | (0.38 | ) | (0.08 | ) | (0.49 | ) | (1.25 | ) | (1.74 | ) | 14.69 | ||||||||||||||
2014 | 18.53 | 0.47 | 0.73 | 1.20 | (0.52 | ) | (2.70 | ) | (3.22 | ) | 16.51 | ||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||
2018 | 15.72 | 0.32 | (1.06 | ) | (0.74 | ) | (0.46 | ) | (0.78 | ) | (1.24 | ) | 13.74 | ||||||||||||||
2017 | 14.30 | 0.42 | 1.67 | 2.09 | (0.30 | ) | (0.37 | ) | (0.67 | ) | 15.72 | ||||||||||||||||
2016 | 14.55 | 0.27 | 0.69 | 0.96 | (0.28 | ) | (0.93 | ) | (1.21 | ) | 14.30 | ||||||||||||||||
2015 | 16.37 | 0.26 | (0.38 | ) | (0.12 | ) | (0.45 | ) | (1.25 | ) | (1.70 | ) | 14.55 | ||||||||||||||
2014 | 18.39 | 0.43 | 0.73 | 1.16 | (0.48 | ) | (2.70 | ) | (3.18 | ) | 16.37 | ||||||||||||||||
SAM CONSERVATIVE BALANCED PORTFOLIO | |||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||
2018 | 12.33 | 0.34 | (0.73 | ) | (0.39 | ) | (0.42 | ) | (0.47 | ) | (0.89 | ) | 11.05 | ||||||||||||||
2017 | 11.50 | 0.38 | 0.92 | 1.30 | (0.34 | ) | (0.13 | ) | (0.47 | ) | 12.33 | ||||||||||||||||
2016 | 11.52 | 0.31 | 0.42 | 0.73 | (0.30 | ) | (0.45 | ) | (0.75 | ) | 11.50 | ||||||||||||||||
2015 | 12.60 | 0.29 | (0.36 | ) | (0.07 | ) | (0.41 | ) | (0.60 | ) | (1.01 | ) | 11.52 | ||||||||||||||
2014 | 13.39 | 0.41 | 0.40 | 0.81 | (0.42 | ) | (1.18 | ) | (1.60 | ) | 12.60 | ||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||
2018 | 12.19 | 0.31 | (0.73 | ) | (0.42 | ) | (0.39 | ) | (0.47 | ) | (0.86 | ) | 10.91 | ||||||||||||||
2017 | 11.38 | 0.36 | 0.89 | 1.25 | (0.31 | ) | (0.13 | ) | (0.44 | ) | 12.19 | ||||||||||||||||
2016 | 11.41 | 0.27 | 0.42 | 0.69 | (0.27 | ) | (0.45 | ) | (0.72 | ) | 11.38 | ||||||||||||||||
2015 | 12.48 | 0.27 | (0.36 | ) | (0.09 | ) | (0.38 | ) | (0.60 | ) | (0.98 | ) | 11.41 | ||||||||||||||
2014 | 13.28 | 0.38 | 0.38 | 0.76 | (0.38 | ) | (1.18 | ) | (1.56 | ) | 12.48 |
See accompanying notes.
278
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | ||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | ||||||||||
(5.04 | )% | $ | 561,162 | 0.23%(c),(d) | 2.29 | % | 18.2 | % | ||||||
15.21 | 678,409 | 0.23 | (d) | 2.92 | 27.4 | |||||||||
6.82 | 672,562 | 0.23 | (d) | 2.07 | 16.5 | |||||||||
(0.81 | ) | 732,937 | 0.23 | (d) | 1.88 | 26.1 | ||||||||
6.82 | 826,908 | 0.23 | (d) | 2.64 | 16.4 | |||||||||
(5.25 | ) | 104,051 | 0.48 | (c),(d) | 2.10 | 18.2 | ||||||||
14.88 | 110,129 | 0.48 | (d) | 2.77 | 27.4 | |||||||||
6.62 | 97,047 | 0.48 | (d) | 1.88 | 16.5 | |||||||||
(1.08 | ) | 96,511 | 0.48 | (d) | 1.66 | 26.1 | ||||||||
6.59 | 99,852 | 0.48 | (d) | 2.44 | 16.4 | |||||||||
(3.49 | ) | 154,297 | 0.22 | (c),(d) | 2.79 | 19.5 | ||||||||
11.46 | 178,523 | 0.23 | (d) | 3.16 | 26.3 | |||||||||
6.37 | 183,830 | 0.23 | (d) | 2.64 | 19.8 | |||||||||
(0.78 | ) | 193,585 | 0.23 | (d) | 2.38 | 28.2 | ||||||||
6.22 | 206,621 | 0.23 | (d) | 3.10 | 21.2 | |||||||||
(3.75 | ) | 20,449 | 0.47 | (c),(d) | 2.59 | 19.5 | ||||||||
11.14 | 20,541 | 0.48 | (d) | 3.06 | 26.3 | |||||||||
6.08 | 17,477 | 0.48 | (d) | 2.39 | 19.8 | |||||||||
(0.93 | ) | 17,774 | 0.48 | (d) | 2.19 | 28.2 | ||||||||
5.92 | 16,731 | 0.48 | (d) | 2.87 | 21.2 |
(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)Does not include expenses of the investment companies in which the Portfolio invests.
See accompanying notes.
279
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 | Net Realized | ||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | ||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | ||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||
SAM CONSERVATIVE GROWTH PORTFOLIO | |||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||
2018 | $ | 19.86 | $ | 0.35 | ($1.51 | ) | ($1.16 | ) | ($0.56 | ) | ($0.98 | ) | ($1.54) | $ | 17.16 | ||||||||||||
2017 | 17.22 | 0.54 | 2.82 | 3.36 | (0.30 | ) | (0.42 | ) | (0.72 | ) | 19.86 | ||||||||||||||||
2016 | 17.22 | 0.30 | 0.90 | 1.20 | (0.26 | ) | (0.94 | ) | (1.20 | ) | 17.22 | ||||||||||||||||
2015 | 19.02 | 0.26 | (0.41 | ) | (0.15 | ) | (0.43 | ) | (1.22 | ) | (1.65 | ) | 17.22 | ||||||||||||||
2014 | 20.60 | 0.48 | 0.97 | 1.45 | (0.39 | ) | (2.64 | ) | (3.03 | ) | 19.02 | ||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||
2018 | 19.60 | 0.31 | (1.50 | ) | (1.19 | ) | (0.51 | ) | (0.98 | ) | (1.49 | ) | 16.92 | ||||||||||||||
2017 | 17.01 | 0.49 | 2.78 | 3.27 | (0.26 | ) | (0.42 | ) | (0.68 | ) | 19.60 | ||||||||||||||||
2016 | 17.02 | 0.25 | 0.89 | 1.14 | (0.21 | ) | (0.94 | ) | (1.15 | ) | 17.01 | ||||||||||||||||
2015 | 18.82 | 0.21 | (0.40 | ) | (0.19 | ) | (0.39 | ) | (1.22 | ) | (1.61 | ) | 17.02 | ||||||||||||||
2014 | 20.42 | 0.42 | 0.97 | 1.39 | (0.35 | ) | (2.64 | ) | (2.99 | ) | 18.82 | ||||||||||||||||
SAM FLEXIBLE INCOME PORTFOLIO | |||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||
2018 | 12.95 | 0.40 | (0.63 | ) | (0.23 | ) | (0.53 | ) | (0.33 | ) | (0.86 | ) | 11.86 | ||||||||||||||
2017 | 12.45 | 0.47 | 0.56 | 1.03 | (0.44 | ) | (0.09 | ) | (0.53 | ) | 12.95 | ||||||||||||||||
2016 | 12.27 | 0.42 | 0.44 | 0.86 | (0.43 | ) | (0.25 | ) | (0.68 | ) | 12.45 | ||||||||||||||||
2015 | 13.22 | 0.40 | (0.56 | ) | (0.16 | ) | (0.47 | ) | (0.32 | ) | (0.79 | ) | 12.27 | ||||||||||||||
2014 | 13.72 | 0.49 | 0.33 | 0.82 | (0.52 | ) | (0.80 | ) | (1.32 | ) | 13.22 | ||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||
2018 | 12.83 | 0.38 | (0.63 | ) | (0.25 | ) | (0.51 | ) | (0.33 | ) | (0.84 | ) | 11.74 | ||||||||||||||
2017 | 12.34 | 0.45 | 0.54 | 0.99 | (0.41 | ) | (0.09 | ) | (0.50 | ) | 12.83 | ||||||||||||||||
2016 | 12.17 | 0.38 | 0.44 | 0.82 | (0.40 | ) | (0.25 | ) | (0.65 | ) | 12.34 | ||||||||||||||||
2015 | 13.12 | 0.37 | (0.56 | ) | (0.19 | ) | (0.44 | ) | (0.32 | ) | (0.76 | ) | 12.17 | ||||||||||||||
2014 | 13.62 | 0.45 | 0.33 | 0.78 | (0.48 | ) | (0.80 | ) | (1.28 | ) | 13.12 |
See accompanying notes.
280
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | ||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | ||||||||||
(6.62 | )% | $ | 189,654 | 0.23%(c),(d) | 1.81 | % | 27.0 | % | ||||||
19.78 | 220,054 | 0.23 | (d) | 2.88 | 35.1 | |||||||||
7.00 | 194,284 | 0.23 | (d) | 1.73 | 25.5 | |||||||||
(1.09 | ) | 193,966 | 0.23 | (d) | 1.40 | 29.1 | ||||||||
7.43 | 198,465 | 0.23 | (d) | 2.40 | 19.4 | |||||||||
(6.82 | ) | 118,307 | 0.48 | (c),(d) | 1.60 | 27.0 | ||||||||
19.46 | 127,079 | 0.48 | (d) | 2.68 | 35.1 | |||||||||
6.76 | 108,247 | 0.48 | (d) | 1.49 | 25.5 | |||||||||
(1.34 | ) | 103,771 | 0.48 | (d) | 1.17 | 29.1 | ||||||||
7.14 | 102,757 | 0.48 | (d) | 2.11 | 19.4 | |||||||||
(1.97 | ) | 157,019 | 0.23 | (d) | 3.19 | 19.9 | ||||||||
8.41 | 194,742 | 0.23 | (d) | 3.69 | 29.3 | |||||||||
7.04 | 196,393 | 0.23 | (d) | 3.32 | 17.1 | |||||||||
(1.31 | ) | 200,828 | 0.23 | (d) | 3.05 | 25.2 | ||||||||
6.03 | 215,309 | 0.23 | (d) | 3.55 | 18.8 | |||||||||
(2.20 | ) | 25,656 | 0.48 | (d) | 3.07 | 19.9 | ||||||||
8.13 | 23,003 | 0.48 | (d) | 3.57 | 29.3 | |||||||||
6.73 | 20,085 | 0.48 | (d) | 3.06 | 17.1 | |||||||||
(1.55 | ) | 21,108 | 0.48 | (d) | 2.85 | 25.2 | ||||||||
5.80 | 19,836 | 0.48 | (d) | 3.27 | 18.8 |
(a)Calculated based on average shares outstanding during the period.
(b)Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)Reflects Manager's contractual expense limit.
(d)Does not include expenses of the investment companies in which the Portfolio invests.
See accompanying notes.
281
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 | Net Realized | ||||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | ||||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | ||||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||||
SAM STRATEGIC GROWTH PORTFOLIO | |||||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||||
2018 | $ | 21.72 | $ | 0.33 | ($2.01 | ) | ($1.68 | ) | ($0.52 | ) | ($1.16 | ) | ($1.68) | $ | 18.36 | ||||||||||||||
2017 | 18.54 | 0.51 | 3.54 | 4.05 | (0.30 | ) | (0.57 | ) | (0.87 | ) | 21.72 | ||||||||||||||||||
2016 | 18.70 | 0.30 | 0.85 | 1.15 | (0.28 | ) | (1.03 | ) | (1.31 | ) | 18.54 | ||||||||||||||||||
2015 | 21.00 | 0.29 | (0.56 | ) | (0.27 | ) | (0.47 | ) | (1.56 | ) | (2.03 | ) | 18.70 | ||||||||||||||||
2014 | 23.55 | 0.56 | 1.33 | 1.89 | (0.38 | ) | (4.06 | ) | (4.44 | ) | 21.00 | ||||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||||
2018 | 21.46 | 0.28 | (2.00 | ) | (1.72 | ) | (0.47 | ) | (1.16 | ) | (1.63 | ) | 18.11 | ||||||||||||||||
2017 | 18.33 | 0.47 | 3.48 | 3.95 | (0.25 | ) | (0.57 | ) | (0.82 | ) | 21.46 | ||||||||||||||||||
2016 | 18.50 | 0.26 | 0.83 | 1.09 | (0.23 | ) | (1.03 | ) | (1.26 | ) | 18.33 | ||||||||||||||||||
2015 | 20.80 | 0.24 | (0.55 | ) | (0.31 | ) | (0.43 | ) | (1.56 | ) | (1.99 | ) | 18.50 | ||||||||||||||||
2014 | 23.38 | 0.49 | 1.32 | 1.81 | (0.33 | ) | (4.06 | ) | (4.39 | ) | 20.80 | ||||||||||||||||||
SHORT-TERM INCOME ACCOUNT | |||||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||||
2018 | 2.55 | 0.06 | (0.03 | ) | 0.03 | (0.06 | ) | – | (0.06 | ) | 2.52 | ||||||||||||||||||
2017 | 2.54 | 0.05 | 0.01 | 0.06 | (0.05 | ) | – | (0.05 | ) | 2.55 | |||||||||||||||||||
2016 | 2.54 | 0.05 | – | 0.05 | (0.05 | ) | – | (0.05 | ) | 2.54 | |||||||||||||||||||
2015 | 2.59 | 0.04 | (0.02 | ) | 0.02 | (0.07 | ) | – | (0.07 | ) | 2.54 | ||||||||||||||||||
2014 | 2.59 | 0.05 | (0.01 | ) | 0.04 | (0.04 | ) | – | (0.04 | ) | 2.59 | ||||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||||
2018 | 2.54 | 0.05 | (0.03 | ) | 0.02 | (0.05 | ) | – | (0.05 | ) | 2.51 | ||||||||||||||||||
2017 | 2.53 | 0.05 | 0.01 | 0.06 | (0.05 | ) | – | (0.05 | ) | 2.54 | |||||||||||||||||||
2016 | 2.53 | 0.04 | 0.01 | 0.05 | (0.05 | ) | – | (0.05 | ) | 2.53 | |||||||||||||||||||
2015 | 2.58 | 0.04 | (0.02 | ) | 0.02 | (0.07 | ) | – | (0.07 | ) | 2.53 | ||||||||||||||||||
2014 | 2.59 | 0.04 | (0.01 | ) | 0.03 | (0.04 | ) | – | (0.04 | ) | 2.58 |
See accompanying notes.
282
Financial Highlights(Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | ||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | ||||||||||
(8.60 | )% | $ | 140,247 | 0.23%(c),(d) | 1.56 | % | 37.8 | % | ||||||
22.22 | 163,861 | 0.23 | (d) | 2.50 | 37.7 | |||||||||
6.15 | 145,083 | 0.23 | (d) | 1.61 | 23.4 | |||||||||
(1.62 | ) | 142,227 | 0.23 | (d) | 1.45 | 37.9 | ||||||||
8.68 | 138,863 | 0.23 | (d) | 2.50 | 20.4 | |||||||||
(8.87 | ) | 114,902 | 0.48 | (c),(d) | 1.34 | 37.8 | ||||||||
21.95 | 126,632 | 0.48 | (d) | 2.33 | 37.7 | |||||||||
5.90 | 103,870 | 0.48 | (d) | 1.41 | 23.4 | |||||||||
(1.87 | ) | 95,775 | 0.48 | (d) | 1.19 | 37.9 | ||||||||
8.35 | 96,446 | 0.48 | (d) | 2.21 | 20.4 | |||||||||
1.02 | 149,075 | 0.50 | (c) | 2.19 | 49.9 | |||||||||
2.39 | 158,446 | 0.50 | (c) | 2.01 | 67.3 | |||||||||
2.14 | 170,538 | 0.50 | (c) | 1.91 | 48.6 | |||||||||
0.71 | 160,833 | 0.49 | (c) | 1.63 | 57.0 | |||||||||
1.73 | 267,674 | 0.49 | (c) | 1.74 | 54.3 | |||||||||
1.23 | (e) | 4,083 | 0.75 | (c) | 1.96 | 49.9 | ||||||||
1.78 | (e) | 2,300 | 0.75 | (c) | 1.78 | 67.3 | ||||||||
2.01 | 2,072 | 0.75 | (c) | 1.65 | 48.6 | |||||||||
0.59 | 1,485 | 0.74 | (c) | 1.39 | 57.0 | |||||||||
1.02 | 913 | 0.74 | (c) | 1.49 | 54.3 |
(a)Calculated based on average shares outstanding during the period.
(b)Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)Reflects Manager's contractual expense limit.
(d)Does not include expenses of the investment companies in which the Portfolio invests.
(e)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.
283
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
SMALLCAP ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 17.10 | $ | 0.03 | ($1.62 | ) | ($1.59 | ) | ($0.06 | ) | ($1.15 | ) | ($1.21) | $ | 14.30 | |||||||||||||
2017 | 15.21 | 0.06 | 1.89 | 1.95 | (0.06 | ) | – | (0.06 | ) | 17.10 | ||||||||||||||||||
2016 | 13.55 | 0.15 | 2.15 | 2.30 | (0.04 | ) | (0.60 | ) | (0.64 | ) | 15.21 | |||||||||||||||||
2015 | 13.99 | 0.05 | (0.03 | ) | 0.02 | (0.01 | ) | (0.45 | ) | (0.46 | ) | 13.55 | ||||||||||||||||
2014 | 13.79 | 0.02 | 0.64 | 0.66 | (0.05 | ) | (0.41 | ) | (0.46 | ) | 13.99 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 17.04 | (0.01 | ) | (1.62 | ) | (1.63 | ) | (0.02 | ) | (1.15 | ) | (1.17 | ) | 14.24 | ||||||||||||||
2017 | 15.17 | 0.02 | 1.87 | 1.89 | (0.02 | ) | – | (0.02 | ) | 17.04 | ||||||||||||||||||
2016 | 13.52 | 0.11 | 2.15 | 2.26 | (0.01 | ) | (0.60 | ) | (0.61 | ) | 15.17 | |||||||||||||||||
2015 | (d) | 14.49 | 0.02 | (0.53 | ) | (0.51 | ) | (0.01 | ) | (0.45 | ) | (0.46 | ) | 13.52 |
See accompanying notes.
284
Financial Highlights(Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
(10.89 | )% | $ | 163,243 | 0.83 | % | 0.20 | % | 45.0 | % | ||||||
12.87 | 208,669 | 0.83 | 0.37 | 64.1 | |||||||||||
17.39 | 209,911 | 0.83 | 1.08 | 57.1 | |||||||||||
(0.10 | ) | 205,344 | 0.83 | 0.33 | 63.3 | ||||||||||
4.89 | 64,682 | 0.87 | 0.16 | 67.0 | |||||||||||
(11.17 | ) (c) | 4,874 | 1.08 | (0.05 | ) | 45.0 | |||||||||
12.57 | (c) | 5,371 | 1.08 | 0.12 | 64.1 | ||||||||||
17.15 | 4,938 | 1.08 | 0.80 | 57.1 | |||||||||||
(3.76) (e) | 4,523 | 1.08 | (f) | 0.13 | (f) | 63.3 | (f) |
(a)Calculated based on average shares outstanding during the period.
(b)Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c)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.
(d)Period from February 17, 2015 date operations commenced, through December 31, 2015.
(e)Total return amounts have not been annualized.
(f)Computed on an annualized basis.
See accompanying notes.
285
Report of Independent Registered Public Accounting Firm
To the Shareholders and 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, 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 IncomeAccount, Government & High Quality BondAccount, IncomeAccount, International Emerging MarketsAccount, LargeCap GrowthAccount, LargeCap Growth Account I, LargeCap S&P 500 Index Account, LargeCap S&P 500 Index Managed Volatility Index Account,MidCapAccount, Multi-Asset Income Account, Principal Capital Appreciation Account, PrincipalLifeTime2010 Account, PrincipalLifeTime2020 Account, PrincipalLifeTime2030 Account, PrincipalLifeTime2040 Account, PrincipalLifeTime2050 Account, PrincipalLifeTime2060 Account, PrincipalLifeTimeStrategic Income Account, Real Estate Securities Account, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, Short-Term Income Account, and SmallCap Account (collectively referred to as the “Accounts”)), including the schedules of investments, as of December 31, 2018, and the related statements of operations, and changes in net assets, and the financial highlights for each of the periods indicated in the table below, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Accounts comprising the Fund at December 31, 2018, 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 | Statements of | Financial highlights |
operations | changes in net assets | ||
Bond Market Index Account | For the year ended | For each of the two | For each of the five years in the |
Core Plus Bond Account | December 31, 2018 | years in the period ended | period ended December 31, 2018 |
Diversified Balanced Account | December 31, 2018 | ||
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 | |||
Income Account | |||
International Emerging Markets Account | |||
LargeCap Growth 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 LifeTime2010 Account | |||
Principal LifeTime2020 Account | |||
Principal LifeTime2030 Account | |||
Principal LifeTime2040 Account | |||
Principal LifeTime2050 Account | |||
Principal LifeTime2060 Account | |||
Principal LifeTimeStrategic 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 | |||
SmallCapAccount | |||
Multi-Asset Income Account | For the year ended | For each of the two | For each of the three years in the |
December 31, 2018 | years in the period ended | period ended December 31, 2018 | |
December 31, 2018 | and the period from July 28, 2015 | ||
(commencement of operations) | |||
through December 31, 2015 | |||
Diversified Balanced Volatility Control Account | For the year ended | For the year ended December 31, 2018 and the period from | |
Diversified Growth Volatility Control Account | December 31, 2018 | March 30, 2017 (commencement of operations) through | |
December 31, 2017 |
286
Report of Independent Registered Public Accounting Firm
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on each of the Accounts’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian, transfer agent, agent banks, and brokers or by other appropriate auditing procedures where replies from agent banks and broker 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 15, 2019
287
Shareholder Expense Example
Principal Variable Contracts Funds, Inc.
December 31, 2018 (unaudited)
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 Accounts may indirectly bear its pro rata share of the expenses incurred by the investment companies in which the fund invests. 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, 2018 to December 31, 2018), unless otherwise noted.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on each account’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the account’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in Principal Variable Contracts Funds, Inc. and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total cost of owning different funds.
Expenses Paid | ||||||||||
Ending | During Period | |||||||||
Beginning Account | Account Value | July 1, 2018 | Annualized | |||||||
ValueJuly 1, 2018 | December 31, 2018 | to December 31, 2018(a) | Expense Ratio | |||||||
Bond Market Index Account Class 1 | ||||||||||
Actual | $ | 1,000.00 | $ | 1,015.69 | $ | 0.76 | 0.15 | % | ||
Hypothetical | 1,000.00 | 1,024.45 | 0.77 | 0.15 | ||||||
Core Plus Bond Account Class 1 | ||||||||||
Actual | 1,000.00 | 1,007.15 | 2.38 | 0.47 | ||||||
Hypothetical | 1,000.00 | 1,022.84 | 2.40 | 0.47 | ||||||
Core Plus Bond Account Class 2 | ||||||||||
Actual | 1,000.00 | 1,006.01 | 3.64 | 0.72 | ||||||
Hypothetical | 1,000.00 | 1,021.58 | 3.67 | 0.72 | ||||||
Diversified Balanced Account Class 1 | ||||||||||
Actual | 1,000.00 | 964.93 | 0.25 | 0.05 | ||||||
Hypothetical | 1,000.00 | 1,024.95 | 0.26 | 0.05 | ||||||
Diversified Balanced Account Class 2 | ||||||||||
Actual | 1,000.00 | 963.60 | 1.48 | 0.30 | ||||||
Hypothetical | 1,000.00 | 1,023.69 | 1.53 | 0.30 | ||||||
Diversified Balanced Managed Volatility Account Class 2 | ||||||||||
Actual | 1,000.00 | 966.44 | 1.54 | 0.31 | ||||||
Hypothetical | 1,000.00 | 1,023.64 | 1.58 | 0.31 | ||||||
Diversified Balanced Volatility Control Account Class 2 | ||||||||||
Actual | 1,000.00 | 970.06 | 1.89 | 0.38 | ||||||
Hypothetical | 1,000.00 | 1,023.29 | 1.94 | 0.38 | ||||||
Diversified Growth Account Class 2 | ||||||||||
Actual | 1,000.00 | 947.40 | 1.47 | 0.30 | ||||||
Hypothetical | 1,000.00 | 1,023.69 | 1.53 | 0.30 |
288
Shareholder Expense Example | ||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||
December 31, 2018 (unaudited) | ||||||||||
Expenses Paid | ||||||||||
Ending | During Period | |||||||||
Beginning Account | Account Value | July 1, 2018 | Annualized | |||||||
ValueJuly 1, 2018 | December 31, 2018 | to December 31, 2018(a) | Expense Ratio | |||||||
Diversified Growth Managed Volatility Account Class 2 | ||||||||||
Actual | $ | 1,000.00 | $ | 951.05 | $ | 1.48 | 0.30 | % | ||
Hypothetical | 1,000.00 | 1,023.69 | 1.53 | 0.30 | ||||||
Diversified Growth Volatility Control Account Class 2 | ||||||||||
Actual | 1,000.00 | 957.51 | 1.83 | 0.37 | ||||||
Hypothetical | 1,000.00 | 1,023.34 | 1.89 | 0.37 | ||||||
Diversified Income Account Class 2 | ||||||||||
Actual | 1,000.00 | 979.23 | 1.50 | 0.30 | ||||||
Hypothetical | 1,000.00 | 1,023.69 | 1.53 | 0.30 | ||||||
Diversified International Account Class 1 | ||||||||||
Actual | 1,000.00 | 858.45 | 4.26 | 0.91 | ||||||
Hypothetical | 1,000.00 | 1,020.62 | 4.63 | 0.91 | ||||||
Diversified International Account Class 2 | ||||||||||
Actual | 1,000.00 | 857.21 | 5.43 | 1.16 | ||||||
Hypothetical | 1,000.00 | 1,019.36 | 5.90 | 1.16 | ||||||
Equity Income Account Class 1 | ||||||||||
Actual | 1,000.00 | 952.07 | 2.36 | 0.48 | ||||||
Hypothetical | 1,000.00 | 1,022.79 | 2.45 | 0.48 | ||||||
Equity Income Account Class 2 | ||||||||||
Actual | 1,000.00 | 950.94 | 3.59 | 0.73 | ||||||
Hypothetical | 1,000.00 | 1,021.53 | 3.72 | 0.73 | ||||||
Government & High Quality Bond Account Class 1 | ||||||||||
Actual | 1,000.00 | 1,018.52 | 2.59 | 0.51 | ||||||
Hypothetical | 1,000.00 | 1,022.63 | 2.60 | 0.51 | ||||||
Government & High Quality Bond Account Class 2 | ||||||||||
Actual | 1,000.00 | 1,016.25 | 3.86 | 0.76 | ||||||
Hypothetical | 1,000.00 | 1,021.37 | 3.87 | 0.76 | ||||||
Income Account Class 1 | ||||||||||
Actual | 1,000.00 | 1,009.77 | 2.58 | 0.51 | ||||||
Hypothetical | 1,000.00 | 1,022.63 | 2.60 | 0.51 | ||||||
Income Account Class 2 | ||||||||||
Actual | 1,000.00 | 1,008.64 | 3.85 | 0.76 | ||||||
Hypothetical | 1,000.00 | 1,021.37 | 3.87 | 0.76 | ||||||
International Emerging Markets Account Class 1 | ||||||||||
Actual | 1,000.00 | 851.67 | 6.30 | 1.35 | ||||||
Hypothetical | 1,000.00 | 1,018.40 | 6.87 | 1.35 | ||||||
International Emerging Markets Account Class 2 | ||||||||||
Actual | 1,000.00 | 850.08 | 7.46 | 1.60 | ||||||
Hypothetical | 1,000.00 | 1,017.14 | 8.13 | 1.60 | ||||||
LargeCap Growth Account I Class 1 | ||||||||||
Actual | 1,000.00 | 925.04 | 3.54 | 0.73 | ||||||
Hypothetical | 1,000.00 | 1,021.53 | 3.72 | 0.73 | ||||||
LargeCap Growth Account I Class 2 | ||||||||||
Actual | 1,000.00 | 924.16 | 4.75 | 0.98 | ||||||
Hypothetical | 1,000.00 | 1,020.27 | 4.99 | 0.98 | ||||||
LargeCap Growth Account Class 1 | ||||||||||
Actual | 1,000.00 | 845.52 | 3.21 | 0.69 | ||||||
Hypothetical | 1,000.00 | 1,021.73 | 3.52 | 0.69 | ||||||
LargeCap Growth Account Class 2 | ||||||||||
Actual | 1,000.00 | 844.40 | 4.37 | 0.94 | ||||||
Hypothetical | 1,000.00 | 1,020.47 | 4.79 | 0.94 | ||||||
LargeCap S&P 500 Index Account Class 1 | ||||||||||
Actual | 1,000.00 | 930.53 | 1.22 | 0.25 | ||||||
Hypothetical | 1,000.00 | 1,023.95 | 1.28 | 0.25 |
289
Shareholder Expense Example | ||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||
December 31, 2018 (unaudited) | ||||||||||
Expenses Paid | ||||||||||
Ending | During Period | |||||||||
Beginning Account | Account Value | July 1, 2018 | Annualized | |||||||
ValueJuly 1, 2018 | December 31, 2018 | to December 31, 2018(a) | Expense Ratio | |||||||
LargeCap S&P 500 Index Account Class 2 | ||||||||||
Actual | $ | 1,000.00 | $ | 928.73 | $ | 2.43 | 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 | 938.91 | 2.25 | 0.46 | ||||||
Hypothetical | 1,000.00 | 1,022.89 | 2.35 | 0.46 | ||||||
MidCap Account Class 1 | ||||||||||
Actual | 1,000.00 | 907.21 | 2.64 | 0.55 | ||||||
Hypothetical | 1,000.00 | 1,022.43 | 2.80 | 0.55 | ||||||
MidCap Account Class 2 | ||||||||||
Actual | 1,000.00 | 905.92 | 3.84 | 0.80 | ||||||
Hypothetical | 1,000.00 | 1,021.17 | 4.08 | 0.80 | ||||||
Multi-Asset Income Account Class 1 | ||||||||||
Actual | 1,000.00 | 959.91 | 0.40 | 0.08 | ||||||
Hypothetical | 1,000.00 | 1,024.80 | 0.41 | 0.08 | ||||||
Multi-Asset Income Account Class 2 | ||||||||||
Actual | 1,000.00 | 957.79 | 1.63 | 0.33 | ||||||
Hypothetical | 1,000.00 | 1,023.54 | 1.68 | 0.33 | ||||||
Principal Capital Appreciation Account Class 1 | ||||||||||
Actual | 1,000.00 | 940.20 | 3.13 | 0.64 | ||||||
Hypothetical | 1,000.00 | 1,021.98 | 3.26 | 0.64 | ||||||
Principal Capital Appreciation Account Class 2 | ||||||||||
Actual | 1,000.00 | 939.31 | 4.35 | 0.89 | ||||||
Hypothetical | 1,000.00 | 1,020.72 | 4.53 | 0.89 | ||||||
Principal LifeTime 2010 Account Class 1 | ||||||||||
Actual | 1,000.00 | 965.58 | 0.10 | 0.02 | ||||||
Hypothetical | 1,000.00 | 1,025.10 | 0.10 | 0.02 | ||||||
Principal LifeTime 2020 Account Class 1 | ||||||||||
Actual | 1,000.00 | 947.38 | 0.05 | 0.01 | ||||||
Hypothetical | 1,000.00 | 1,025.16 | 0.05 | 0.01 | ||||||
Principal LifeTime 2020 Account Class 2 | ||||||||||
Actual | 1,000.00 | 945.87 | 1.28 | 0.26 | ||||||
Hypothetical | 1,000.00 | 1,023.89 | 1.33 | 0.26 | ||||||
Principal LifeTime 2030 Account Class 1 | ||||||||||
Actual | 1,000.00 | 927.95 | 0.05 | 0.01 | ||||||
Hypothetical | 1,000.00 | 1,025.16 | 0.05 | 0.01 | ||||||
Principal LifeTime 2030 Account Class 2 | ||||||||||
Actual | 1,000.00 | 925.97 | 1.26 | 0.26 | ||||||
Hypothetical | 1,000.00 | 1,023.89 | 1.33 | 0.26 | ||||||
Principal LifeTime 2040 Account Class 1 | ||||||||||
Actual | 1,000.00 | 913.49 | 0.05 | 0.01 | ||||||
Hypothetical | 1,000.00 | 1,025.16 | 0.05 | 0.01 | ||||||
Principal LifeTime 2040 Account Class 2 | ||||||||||
Actual | 1,000.00 | 911.94 | 1.25 | 0.26 | ||||||
Hypothetical | 1,000.00 | 1,023.89 | 1.33 | 0.26 | ||||||
Principal LifeTime 2050 Account Class 1 | ||||||||||
Actual | 1,000.00 | 904.31 | 0.10 | 0.02 | ||||||
Hypothetical | 1,000.00 | 1,025.10 | 0.10 | 0.02 | ||||||
Principal LifeTime 2050 Account Class 2 | ||||||||||
Actual | 1,000.00 | 903.14 | 1.30 | 0.27 | ||||||
Hypothetical | 1,000.00 | 1,023.84 | 1.38 | 0.27 |
290
Shareholder Expense Example | ||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||
December 31, 2018 (unaudited) | ||||||||||
Expenses Paid | ||||||||||
Ending | During Period | |||||||||
Beginning Account | Account Value | July 1, 2018 | Annualized | |||||||
ValueJuly 1, 2018 | December 31, 2018 | to December 31, 2018(a) | Expense Ratio | |||||||
Principal LifeTime 2060 Account Class 1 | ||||||||||
Actual | $ | 1,000.00 | $ | 898.15 | $ | 0.57 | 0.12 | % | ||
Hypothetical | 1,000.00 | 1,024.60 | 0.61 | 0.12 | ||||||
Principal LifeTime Strategic Income Account Class 1 | ||||||||||
Actual | 1,000.00 | 977.24 | 0.15 | 0.03 | ||||||
Hypothetical | 1,000.00 | 1,025.05 | 0.15 | 0.03 | ||||||
Real Estate Securities Account Class 1 | ||||||||||
Actual | 1,000.00 | 945.93 | 4.37 | 0.89 | ||||||
Hypothetical | 1,000.00 | 1,020.72 | 4.53 | 0.89 | ||||||
Real Estate Securities Account Class 2 | ||||||||||
Actual | 1,000.00 | 944.76 | 5.59 | 1.14 | ||||||
Hypothetical | 1,000.00 | 1,019.46 | 5.80 | 1.14 | ||||||
SAM Balanced Portfolio Class 1 | ||||||||||
Actual | 1,000.00 | 947.19 | 1.18 | 0.24 | ||||||
Hypothetical | 1,000.00 | 1,024.00 | 1.22 | 0.24 | ||||||
SAM Balanced Portfolio Class 2 | ||||||||||
Actual | 1,000.00 | 945.67 | 2.40 | 0.49 | ||||||
Hypothetical | 1,000.00 | 1,022.74 | 2.50 | 0.49 | ||||||
SAM Conservative Balanced Portfolio Class 1 | ||||||||||
Actual | 1,000.00 | 965.86 | 1.14 | 0.23 | ||||||
Hypothetical | 1,000.00 | 1,024.05 | 1.17 | 0.23 | ||||||
SAM Conservative Balanced Portfolio Class 2 | ||||||||||
Actual | 1,000.00 | 964.05 | 2.38 | 0.48 | ||||||
Hypothetical | 1,000.00 | 1,022.79 | 2.45 | 0.48 | ||||||
SAM Conservative Growth Portfolio Class 1 | ||||||||||
Actual | 1,000.00 | 928.66 | 1.12 | 0.23 | ||||||
Hypothetical | 1,000.00 | 1,024.05 | 1.17 | 0.23 | ||||||
SAM Conservative Growth Portfolio Class 2 | ||||||||||
Actual | 1,000.00 | 927.54 | 2.33 | 0.48 | ||||||
Hypothetical | 1,000.00 | 1,022.79 | 2.45 | 0.48 | ||||||
SAM Flexible Income Portfolio Class 1 | ||||||||||
Actual | 1,000.00 | 983.34 | 1.15 | 0.23 | ||||||
Hypothetical | 1,000.00 | 1,024.05 | 1.17 | 0.23 | ||||||
SAM Flexible Income Portfolio Class 2 | ||||||||||
Actual | 1,000.00 | 981.09 | 2.40 | 0.48 | ||||||
Hypothetical | 1,000.00 | 1,022.79 | 2.45 | 0.48 | ||||||
SAM Strategic Growth Portfolio Class 1 | ||||||||||
Actual | 1,000.00 | 911.49 | 1.11 | 0.23 | ||||||
Hypothetical | 1,000.00 | 1,024.05 | 1.17 | 0.23 | ||||||
SAM Strategic Growth Portfolio Class 2 | ||||||||||
Actual | 1,000.00 | 910.07 | 2.31 | 0.48 | ||||||
Hypothetical | 1,000.00 | 1,022.79 | 2.45 | 0.48 | ||||||
Short-Term Income Account Class 1 | ||||||||||
Actual | 1,000.00 | 1,010.17 | 2.53 | 0.50 | ||||||
Hypothetical | 1,000.00 | 1,022.68 | 2.55 | 0.50 | ||||||
Short-Term Income Account Class 2 | ||||||||||
Actual | 1,000.00 | 1,008.27 | 3.80 | 0.75 | ||||||
Hypothetical | 1,000.00 | 1,021.42 | 3.82 | 0.75 | ||||||
SmallCap Account Class 1 | ||||||||||
Actual | 1,000.00 | 806.67 | 3.78 | 0.83 | ||||||
Hypothetical | 1,000.00 | 1,021.02 | 4.23 | 0.83 |
291
Shareholder Expense Example | ||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||
December 31, 2018 (unaudited) | ||||||||||
Expenses Paid | ||||||||||
Ending | During Period | |||||||||
Beginning Account | Account Value | July 1, 2018 | Annualized | |||||||
ValueJuly 1, 2018 | December 31, 2018 | to December 31, 2018(a) | Expense Ratio | |||||||
SmallCap Account Class 2 | ||||||||||
Actual | $ | 1,000.00 | $ | 805.22 | $ | 4.91 | 1.08 | % | ||
Hypothetical | 1,000.00 | 1,019.76 | 5.50 | 1.08 |
(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). |
292
Principal Variable Contracts Funds, Inc.
(unaudited)
Notification of Source of Distributions
Pursuant to Rule 19a-1 of the Investment Company Act of 1940
As noted in the table provided below, certain of the Accounts made distributions for the month of September 2018 for which a portion is estimated to be in excess of the fund’s current and accumulated net income. As of September 2018, the estimated sources of these distributions were as follows:
September 2018 | |||||||||
Fund | Net Income | Realized Gain | Capital Sources | ||||||
LargeCap Growth Account I | 69.50 | % | 30.50 | % | 0.00 | % |
The ultimate composition of these distributions may vary from the estimates provided above due to a variety of factors including future income and expenses, and realized gains and losses from the purchase and sale of securities.
Please note that this information is being provided to satisfy certain notice requirements under the Investment Company Act of 1940. Tax reporting information for shareholders of the funds will not be available until the end of the funds’ fiscal year.
As a result, shareholders should not use the information provided in this notice for tax reporting purposes.
293
FUND DIRECTORS AND OFFICERS
Under Maryland law, a Board of Directors oversees the Fund. The Directors have financial or other relevant experience and meet several times during the year to review contracts, Fund activities and the quality of services provided to the Fund. Each director also has the same position with Principal Funds, Inc. and Principal Exchange-Traded Funds which are also sponsored by Principal Life Insurance Company. Each director holds office for an indefinite term or until reaching age 72. Directors considered to be “interested persons” as defined in the Investment Company Act of 1940, as shown below are considered to be interested because of an affiliation with the Manager and Principal Life Insurance Company.
The following directors are considered not to be “interested persons” as defined in the 1940 Act
Other | ||||
Name, | Number of Portfolios | Directorships | ||
Position Held with the Fund, | Principal Occupation(s) | in Fund Complex | Held by Director | |
Year of Birth | During past 5 years | Overseen by Director | During Past 5 Years | |
Elizabeth Ballantine | Principal, EBA Associates | 131 | Durango Herald, Inc; | |
Director since 2004 | McClatchy Newspapers, Inc. | |||
Member, Nominating and Governance | ||||
Committee | ||||
1948 | ||||
Leroy T. Barnes, Jr. | Retired. | 131 | McClatchy Newspapers, | |
Director since 2012 | Inc.; Herbalife Ltd.; Frontier | |||
Member, Audit Committee | Communications, Inc. | |||
1951 | ||||
Craig Damos | President, The Damos Company | 131 | Hardin Construction | |
Director since 2008 | ||||
Member, Audit Committee Member, | ||||
15(c)Committee | ||||
1954 | ||||
Mark A. Grimmett | Formerly, Executive Vice President and CFO, Merle | 131 | None | |
Director since 2004 | Norman Cosmetics, Inc. | |||
Member, Nominating and Governance | ||||
Committee | ||||
Member, 15(c) Committee | ||||
Member, Executive Committee | ||||
1960 | ||||
Fritz S. Hirsch | Formerly, CEO, MAM USA | 131 | Focus Products Group; MAM | |
Director since 2005 | USA | |||
Member, Operations Committee | ||||
Member, 15(c) Committee | ||||
1951 | ||||
Tao Huang | Retired. | 131 | Armstrong World Industries, | |
Director since March 2012 | Inc. | |||
Member, Operations Committee | ||||
Member, 15(c) Committee | ||||
1962 | ||||
Karen (“Karrie”) McMillan | Managing Director, Patomak Global Partners, LLC. | 131 | None | |
Director since 2014 | Formerly, General Counsel, Investment Company | |||
Member, Operations Committee | Institute | |||
1961 | ||||
Elizabeth A. Nickels | Formerly, Executive Director, Herman Miller | 131 | Charlotte Russe; Follet | |
Director since 2015 | Foundation; Formerly President, Herman Miller | Corporation; PetSmart; | ||
Member, Audit Committee | Healthcare | SpartanNash; Spectrum | ||
1962 | Health Systems | |||
Mary M. (“Meg”) VanDeWeghe | CEO and President, Forte Consulting, Inc. | 131 | Brown Advisory; B/E | |
Director since 2018 | Aerospace; WP Carey; Nalco | |||
Member, Operations Committee | (and its successor Ecolab) | |||
1959 |
294
The following directors are considered to be “interested persons” as defined in the 1940 Act, because of an affiliation with the
Manager and Principal Life.
Other | |||
Name, | Number of Portfolios | Directorships | |
Position Held with the Fund, | Principal Occupation(s) | in Fund Complex | Held by Director |
Year of Birth | During past 5 years | Overseen by Director | During Past 5 Years |
Michael J. Beer | Chief Executive Officer, Principal Funds | 131 | None |
Director since 2012 | Distributor, Inc. (“PFD”) since 2015 Executive | ||
President, Chief Executive Officer | Director – Funds, Principal Global | ||
Member, Executive Committee | Investors, LLC (“PGI”) since 2017 Director, PGI | ||
1961 | since 2017 | ||
Director, PFD since 2015 | |||
Vice President/Mutual Funds and Broker | |||
Dealer, Principal Life Insurance Company | |||
(“PLIC”) (2001-2014) | |||
Vice President/Chief Operating Officer, | |||
Principal Funds, PLIC (2014-2015) | |||
Executive Director, Principal Funds & | |||
Trust, PLIC since 2015 | |||
Director, Principal Management | |||
Corporation, (“PMC”) (2006-2015) President & | |||
Chief Executive Officer, | |||
PMC (2015-2017) | |||
Executive Vice President/Chief Operating | |||
Officer, PMC (2008-2015) | |||
Chair, PMC (2015-2017) | |||
Director, Principal Securities, Inc. (“PSI”) (2005- | |||
2015) | |||
President, PSI (2005-2015) | |||
Director, Principal Shareholder | |||
Services (“PSS”) (2007-2015) | |||
Chairman, PSS since 2015 | |||
President, PSS (2007-2015) | |||
Executive Vice President, PSS since 2015 | |||
Nora M. Everett | Director, Finisterre Capital LLP since 2011 Director, | 131 | None |
Director since 2008 | Origin Asset Management | ||
Chair | LLP since 2011 | ||
Member, Executive Committee | Chairman, Principal Financial | ||
1959 | Advisors, Inc. (“PFA”) (2010-2015) Chairman, | ||
PFD (2011-2015) | |||
Senior Vice President/Retirement and | |||
Income Solutions (“RIS”), PLIC (2008-2015) | |||
President/RIS, PLIC since 2015 | |||
Chairman, PMC (2011-2015) | |||
President, PMC (2008-2015) | |||
Director, PSI (2008-2011, and since 2015) | |||
Chairman, PSI (2011-2015) | |||
Chief Executive Officer, PSI (2009-2015) Chairman, | |||
PSS (2011-2015) | |||
Patrick Halter | Director, Morley Capital Management, Inc. | 131 | None |
Director since 2017 | (“Morley”) since 2017 | ||
Member, Executive Committee | Chair, Post Advisory Group, LLC (“Post”) since | ||
1959 | 2017 | ||
Chief Operating Officer, PGI since 2017 Director, | |||
PGI since 2003 | |||
Chair, PREI since 2004 | |||
Chief Executive Officer, PREI since 2005 Chair, | |||
Spectrum since 2017 |
Correspondence intended for each Director who is other than an Interested Director may be sent to 655 9th Street, Des Moines, IA 50392.
295
The following table presents officers of the Funds.
Name, | |
Position Held with the Fund, | Principal Occupation(s) |
Address, and Year of Birth | During past 5 years |
Randy L. Bergstrom | Counsel, PGI |
Assistant Tax Counsel | Counsel, PLIC |
Des Moines, IA 50392 | |
1955 | |
Jennifer A. Block | Vice President and Counsel (2017-2018) |
Deputy Chief Compliance Officer | Assistant Counsel (2010-2017) |
Des Moines, IA 50392 | Assistant Secretary (2015-2018) |
1973 | Counsel, PGI (2017-2018) |
Counsel, PFD (2009-2013) | |
Counsel, PLIC (2009-2018) | |
Counsel, PMC (2009-2013, 2014-2017) | |
Counsel, PSI (2009-2013) | |
Counsel, PSS (2009-2013) | |
Tracy Bollin | Managing Director, PGI since 2016 |
Chief Financial Officer | Chief Operating Officer, PMC (2015-2017) |
Des Moines, IA 50392 | Chief Financial Officer, PFA (2010-2015) |
1970 | Senior Vice President, PFD since 2015 |
Chief Financial Officer, PFD (2010-2016) | |
Senior Vice President, PMC (2015–2017) | |
Chief Financial Officer, PMC (2010-2015) | |
Director, PMC (2014–2017) | |
Chief Financial Officer, PSI (2010-2015) | |
Director, PSS since 2014 | |
President, PSS since 2015 | |
Chief Financial Officer, PSS (2010-2015) | |
Gina L. Graham | Vice President/Treasurer, PFA since 2016 |
Treasurer | Vice President/Treasurer, Morely since 2016 |
Des Moines, IA 50392 | Vice President/Treasurer, PFD since 2016 |
1965 | Vice President/Treasurer, PGI since 2016 |
Vice President/Treasurer, PLIC since 2016 | |
Vice President/Treasurer, PMC (2016-2017) | |
Vice President/Treasurer, Principal Real Estate | |
Investors, LLC since 2016 | |
Vice President/Treasurer, PSI since 2016 | |
Vice President/Treasurer, PSS since 2016 | |
Laura B. Latham | Counsel, PGI since 2018 |
Assistant Counsel and Assistant Secretary | Prior thereto, Attorney in Private Practice |
Des Moines, IA 50392 | |
1986 | |
Diane K. Nelson | Chief Compliance Officer/AML Officer, PSS since |
AML Officer | 2015 |
Des Moines, IA 50392 | Compliance Advisor, PMC (2013-2015) |
1965 | |
Layne A. Rasmussen | Vice President/Controller, PMC prior to 2018 |
Vice President | Director – Accounting, PLIC since 2015 |
Des Moines, IA 50392 | Financial Controller, PLIC prior to 2015 |
1958 | |
Sara L. Reece | Director - Accounting, PLIC since 2015 |
Vice President and Controller | Assistant Financial Controller, PLIC prior to 2015 |
Des Moines, IA 50392 | |
1975 | |
Teri R. Root | Interim Chief Compliance Officer (2018) |
Chief Compliance Officer | Deputy Chief Compliance Officer (2015-2018) |
Des Moines, IA 50392 | Deputy Chief Compliance Officer, PGI since 2017 |
1979 | Vice President and Chief Compliance Officer, PMC |
(2015–2017) | |
Compliance Officer, PMC (2010-2013) | |
Vice President, PSS since 2015 |
296
Name, | |
Position Held with the Fund, | Principal Occupation(s) |
Address, and Year of Birth | During past 5 years |
Britney L. Schnathorst | Counsel, PLIC since 2013 |
Assistant Counsel and Assistant | Prior thereto, Attorney in Private Practice |
Secretary | |
Des Moines, IA 50392 | |
1981 | |
Adam U. Shaikh | Assistant General Counsel, PGI since 2018 |
Assistant Counsel | Counsel, PGI (2017-2018) |
Des Moines, IA 50392 | Counsel, PFD (2006-2013) |
1972 | Counsel, PLIC |
Counsel, PMC (2007-2013, 2014-2017) | |
Counsel, PSI (2007-2013) | |
Dan Westholm | Assistant Vice President/Treasurer, PGI since 2017 |
Assistant Treasurer | Assistant Vice President/Treasury, PFA since 2013 |
Des Moines, IA 50392 | Director – Treasury, PFA (2011-2013) |
1966 | Assistant Vice President/Treasury, PFD since 2013 |
Director – Treasury, PFD (2011-2013) | |
Assistant Vice President/Treasury, PLIC since 2014 | |
Director – Treasury, PLIC (2007-2014) | |
Director – Treasury, PMC (2003-2013) | |
Assistant Vice President/Treasury, PMC (2013- | |
2017) | |
Assistant Vice President/Treasury, PSI since 2013 | |
Director – Treasury, PSI (2011-2013) | |
Assistant Vice President/Treasury, PSS since 2013 | |
Director – Treasury, PSS (2007-2013) | |
Beth Wilson | Director and Secretary – Funds, PLIC |
Vice President and Secretary | Vice President, PMC (2007-2013) |
Des Moines, IA 50392 | |
1956 | |
Clint Woods | Of Counsel (2017-2018) |
Counsel, Vice President, and | Vice President (2016-2017) |
Assistant Secretary | Counsel (2015-2017) |
Des Moines, IA 50392 | Vice President, PLIC since 2015 |
1961 | Associate General Counsel, Governance Officer, and |
Assistant Corporate Secretary, PLIC since 2013 | |
Jared Yepsen | Counsel, PGI since 2017 |
Assistant Tax Counsel | Counsel, PLIC since 2015 |
Des Moines, IA 50392 | Senior Attorney, Transamerica Life Insurance |
1981 | Company (TLIC) |
(2013-2015) | |
Attorney, TLIC (2010-2013) |
The 15(c) Committee’s primary purpose is to assist the Board in performing the annual review of the Fund’s advisory and sub-advisory agreements pursuant to Section 15(c) of the 1940 Act. The Committee responsibilities include requesting and reviewing materials.
The Audit Committee’s primary purpose is to assist the Board in fulfilling certain of its responsibilities. The Audit Committee serves as an independent and objective party to monitor the Fund Complex’s accounting policies, financial reporting and internal control system, as well as the work of the independent registered public accountants. The Audit Committee assists Board oversight of 1) the integrity of the Fund Complex’s financial statements; 2) the Fund Complex’s compliance with certain legal and regulatory requirements; 3) the independent registered public accountants’qualifications and independence; and 4) the performance of the Fund Complex’s independent registered public accountants. The Audit Committee also provides an open avenue of communication among the independent registered public accountants, the Manager’s internal auditors, Fund Complex management, and the Board.
The Executive Committee’s primary purpose is to exercise certain powers of the Board when the Board is not in session. When the Board is not in session, the Committee may exercise all powers of the Board in the management of the business of the Fund Complex except the power to 1) authorize dividends or distributions on stock; 2) issue stock, except as permitted by law; 3) recommend to the stockholders any action which requires stockholder approval; 4) amend the bylaws; or 5) approve any merger or share exchange which does not require stockholder approval.
The Nominating and Governance Committee’s primary purpose is to oversee the structure and efficiency of the Board and the committees established by the Board. The Committee responsibilities include evaluating Board membership and functions, committee membership and
297
functions, insurance coverage, and legal matters. The nominating functions of the Committee include selecting and nominating all candidates who are not “interested persons” of the Fund Complex for election to the Board. Generally, the Committee requests director nominee suggestions from the committee members and management. In addition, the Committee will consider Director candidates recommended by shareholders of the Fund Complex. Recommendations should be submitted in writing to Principal Funds, Inc. at 711 High Street, Des Moines, IA 50392. When evaluating a person as a potential nominee to serve as an Independent Director, the Committee will generally consider, among other factors: age; education; relevant business experience; geographical factors; whether the person is “independent” and otherwise qualified under applicable laws and regulations to serve as a director; and whether the person is willing to serve, and willing and able to commit the time necessary for attendance at meetings and the performance of the duties of an independent director. The Committee also meets personally with the nominees and conducts a reference check. The final decision is based on a combination of factors, including the strengths and the experience an individual may bring to the Board. The Committee believes the Board generally benefits from diversity of background, experience and views among its members, and considers these factors in evaluating the composition of the Board. The Board does not use regularly the services of any professional search firms to identify or evaluate or assist in identifying or evaluating potential candidates or nominees.
The Operations Committee’s primary purpose is to oversee the provision of administrative and distribution services to the Funds Complex, communications with the Fund Complex’s shareholders, and review and oversight of the Fund Complex’s operations.
Additional information about the Fund is available in the Prospectus dated May 1, 2018, and the Statement of Additional Information dated May 1, 2018. 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.
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 as of March 31 and September 30 of each year on Form N-Q. The Fund’s Form N-Q can be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. or on the Commission’s website at www.sec.gov. Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-202-551-8090.
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BOARD CONSIDERATION OF INVESTMENT ADVISORY CONTRACTS
During the period covered by this report, the Board of Directors of Principal Variable Contracts Funds, Inc. (“PVC”) approved: (1) the renewal of the Management Agreement and various subadvisory agreements for all Funds, and (2) an amended and restated Sub-Advisory Agreement with Principal Real Estate Investors, LLC related to the Real Estate Securities Account.
Annual Review and Renewal of Management Agreement andSubadvisoryAgreements
At its September 11, 2018 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-six (37) 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; Columbus Circle Investors (“CCI”); Mellon Corporation (“Mellon”); 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, including the Independent Directors, considered the factors and reached the conclusions described below relating to the continuation of the Advisory Agreements. In evaluating the Advisory Agreements, the Board, including the Independent Directors, reviewed a broad range of information requested for this purpose by the Independent Directors, 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 ManagementAgreement for each Fund, the Board considered, among other factors, that the Manager, along with Principal Management Corporation (“PMC”), the previous investment adviser to the Funds that merged with and into the Manager on May 1, 2017, and its affiliates have demonstrated a long-term commitment to support the Funds, including undertakings to cap Fund expenses and/or waive fees for certain Funds. In addition, the Board considered the following factors, and made certain findings and conclusions with respect thereto, for each of the Funds. The Board concluded that a relationship with a capable and conscientious adviser is in the best interests of each Fund.
Nature, Extent and Quality of Services
The Board considered the nature, quality and extent of the services provided under the Management Agreements, including accounting and administrative services, as applicable. 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 Agreements. 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 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, 2018 and the blended investment return (50%/50%) of the three- and five-year periods ended March 31, 2018, and compared those returns to various agreed-upon performance measures, including peer-group data based upon a broad-based, industry category determined by Morningstar.
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, 2018, respectively, if available. The Board also compared each Fund’s investment performance over
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the one-, three- and five-year periods ended March 31, 2018, as available, to one or more relevant benchmark indices. The Board noted that certain Funds had commenced operations recently and, accordingly, no or limited performance information was considered. The Board also considered whether investment results were consistent with a Fund’s investment objective(s) and policies. For most Funds, the Board 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 management fee. For each Fund, the Board received certain information from Broadridge. For Funds the Board received information comparing each Fund’s (1) contractual management fee at current asset levels and at theoretical asset levels, (2) actual management fee (after any fee waivers) at average fiscal-year asset levels, (3) actual non-management fees at average fiscal-year asset levels, and (4) actual total 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 fees and expense ratios of funds in a peer group selected by Broadridge (“Expense Group”), and, if available, a broad-based, industry category defined by Broadridge (“Expense Universe”). For Funds that did not offer Class 1 shares, the information provided was based upon Class 2 shares.
In evaluating the management fees, the Board considered a variety of factors, including the amount of the fees, breakpoints, comparison to fees of peer group funds and other funds and non-fund accounts managed by the Manager, subadvisory fees paid, services provided, investment performance, total net expense ratios, profitability, the existence and sharing of economies of scale and expense caps and fee waivers. The Board considered that certain Principal Funds, Inc. Funds with similar investment strategies and policies have different management fees and noted the reasons cited by the Manager for the differing fees. 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, actual management fees were within the third quartile or better when compared to their Expense Group. For some Funds, although actual management fees were higher than the third quartile, total net expense ratios were within the third quartile or better. Discussion is set forth below regarding specific factors relevant to the Board’s review of certain other Funds.
With respect to the 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 and found them to be reasonable. The Board reviewed the total net expense ratios of the Funds, including acquired fund fees and expenses. The Board considered that many of the Principal LifeTime Accounts would benefit from the new contractual fee waivers for certain Funds in which the Funds invest, as discussed below, and determined to monitor the Funds’ total net expense ratios going forward.
With respect to the Largecap Growth Account I that uses the “Core Satellite” structure, the Board also considered that the Manager contractually agreed to continue to waive a portion of its management fee. The Board considered the services provided by the Manager in managing the enhanced index “Core” sleeve as a part of the overall services covered by the net management fee received by the Manager.
The Board also considered the expense caps and fee waivers that would be in place with respect to certain Funds and share classes. The list of agreed upon expense caps and fee waivers is the result of the Manager’s proposals to extend the expense caps and fee waivers for certain Funds and share classes and to terminate the expense caps and fee waivers for certain Funds and share classes that are both currently operating and projected to operate below current applicable expense caps.
The list of agreed upon expense caps and fee waivers also reflects new or revised fee waivers for the International Emerging MarketsAccount and the Real Estate Securities Account, to be effective from January 1, 2019 through April 30, 2020.
Considering all factors they deemed relevant, the Board concluded that the management fee payable by each Fund was reasonable in light of the nature, quality and extent of the services provided by the Manager and other relevant factors.
In addition, with regard to the Diversified Growth Volatility Control Account and the Diversified Balanced Volatility Control Account, each of which is permitted to invest in unaffiliated exchange-traded funds in excess of the limits set forth in Section 12(d)(1) of the Investment Company Act of 1940, as amended, in accordance with exemptive orders issued to such exchange-traded funds and procedures previously adopted by the Board, the Board considered information provided by the Manager relating to the non-duplicative nature of the Fund’s management fees and found that the management fees charged by the Manager under the Management Agreement for the Fund are for 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.
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Profitability
The Board reviewed detailed information regarding revenues PMC, the previous investment advisor to the Funds, and its affiliate, 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, 2017. The Board also considered the returns on revenue generated in connection with the payment of subadvisory fees to affiliated Subadvisors (Columbus Circle Investors, Principal Real Estate Investors LLC and SpectrumAsset Management, Inc.) and the aggregated return on revenue to PMC and its affiliates for the year ended December 31, 2017. 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 2018 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 fees at each breakpoint and the amount of fee reductions that had been provided to shareholders as a result of these breakpoints. 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 Diversified Balanced Account, the Diversified Balanced Managed Volatility Account, the Diversified Balanced Volatility Control Account, the Diversified Growth Account, the Diversified Growth Managed Volatility Account, the Diversified Growth Volatility Control Account, the Diversified Income Account, the Multi-Asset Income Account, the Bond Market Index Account, and the LargeCap S&P 500 Index Account do not include breakpoints, but each such Fund has a relatively low basis point fee (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 fees, 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 at current asset levels and at theoretical asset levels to subadvisory fees of subadvised funds in the Expense Group and, if available, the Expense Universe.
The Board considered whether there are economies of scale with respect to the subadvisory services provided to each subadvised Fund and, if so, whether the subadvisory fees reflect such economies of scale through breakpoints in fees or whether the subadvisory fee schedule is otherwise appropriate at current asset levels. In addition, in evaluating the subadvisory fees and the factor of profitability, with respect to
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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.
Principal Real Estate Investors, LLC Amended and Restated Sub-Advisory Agreement
On December 11, 2018, the Board met to consider for the Real Estate Securities Account (the “Account”) the approval of an amended fee schedule under the subadvisory agreement (the “Subadvisory Agreement”) between the Manager and Principal Real Estate Investors, LLC (the “Subadvisor”) with respect to the Account, which would result in a reduction of the subadvisory fee rate at all asset levels.
The Board reviewed materials received from the Manager regarding the proposed change in the subadvisory fee schedule. The Board considered the Manager’s representation that the change in the subadvisory fee schedule would not reduce the quality or quantity of the services provided by the Subadvisor to the Account and that the Subadvisor’s obligations under the Subadvisory Agreement would remain the same in all material respects. The Board also considered that the Manager was not proposing any material changes to the terms of the Subadvisory Agreement other than to the fee schedule.
The Board considered that they had last approved the Subadvisory Agreement for the Account during the annual contract renewal process that concluded at the Board of Directors’ September 2018 meeting. They noted that during the annual contract renewal process, they had considered the nature, quality and extent of the services provided by the Subadvisor under the Subadvisory Agreement and had concluded, based upon the information provided, that the terms of the Subadvisory Agreement were reasonable and that approval of the Subadvisory Agreement was in the best interests of the Account.
Based upon all of the information considered, the Board concluded that it was in the best interests of the Account to approve the amended Subadvisory Agreement at this time and, accordingly, recommended to the Board of Directors the approval of the amended Subadvisory Agreement.
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Special Meeting of Shareholders
Principal Variable Contracts Funds, Inc.
Held October 1, 2018
1. Shareholders of LargeCap Value Account voted to approve a Plan of Acquisition providing the reorganization of LargeCap Value Account into Equity Income Account:
In Favor | Opposed | Abstained |
4,049,431.508 | 50,762.673 | 284,262.029 |
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Federal Income Tax Information
Principal Variable Contracts Funds, Inc.
December 31, 2018 (unaudited)
Long-Term Capital Gain Dividends.Certain accounts distributed long-term capital gain dividends during the fiscal year ended December 31, 2018. Details of designated long-term capital gain dividends for federal income tax purposes are shown in the Notes to Financial Statements. To the extent necessary to distribute such capital gains, certain accounts may also utilize, and hereby designate, earnings and profits distributed to shareholders on redemptions of shares as part of the Dividends Paid Deduction.
Unrecaptured Section 1250 Gain Distribution.Principal Variable Contracts Funds, Inc. – Real Estate Securities Account distributed Unrecaputured Section 1250 gains, in addition to long-term capital gains, in 2018. Unrecaptured Section 1250 gains are gains from the sale of depreciable property that are subject to a maximum tax rate of 25%.
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, 2018, that qualifies for the DRD are as follows:
DRD | DRD | ||||||
Core Plus Bond Account | 1.51 | % | Multi-Asset Income Account | 15.86 | % | ||
Diversified Balanced Account | 56.66 | Principal Capital Appreciation Account | 100.00 | ||||
Diversified Balanced Managed Volatility Account | 30.59 | Principal LifeTime 2010 Account | 12.98 | ||||
Diversified Balanced Volatility Control Account | 45.17 | Principal LifeTime 2020 Account | 16.81 | ||||
Diversified Growth Account | 64.18 | Principal LifeTime 2030 Account | 21.33 | ||||
Diversified Growth Managed Volatility Account | 34.04 | Principal LifeTime 2040 Account | 26.97 | ||||
Diversified Growth Volatility Control Account | 55.78 | Principal LifeTime 2050 Account | 25.98 | ||||
Diversified Income Account | 44.14 | Principal LifeTime 2060 Account | 30.51 | ||||
Equity Income Account | 69.83 | Principal LifeTime Strategic Income Account | 9.85 | ||||
Income Account | 0.98 | SAM Balanced Portfolio | 30.87 | ||||
LargeCap Growth Account | 100.00 | SAM Conservative Balanced Portfolio | 22.02 | ||||
LargeCap Growth Account I | 100.00 | SAM Conservative Growth Portfolio | 38.80 | ||||
LargeCap S&P 500 Index Account | 97.88 | SAM Flexible Income Portfolio | 21.21 | ||||
LargeCap S&P 500 Managed Volatility Index | |||||||
Account | 100.00 | SAM Strategic Growth Portfolio | 35.43 | ||||
LargeCap Value Account | 73.90 | SmallCap Account | 35.21 | ||||
MidCap Account | 99.98 |
Foreign Taxes Paid.The following accounts elect under the Internal Revenue Code Section (“IRC”) 853 to pass through foreign taxes paid to their shareholders. The total amounts of foreign taxes passed through to shareholders on a per share basis for the year ended December 31, 2018, are as follows:
Foreign | Foreign | ||||||||
Foreign Taxes | Source | Foreign Taxes | Source | ||||||
Per Share | Income | Per Share | Income | ||||||
Diversified Balanced Account | $ | 0.0029 | 14.94% | Principal LifeTime 2020 Account | $ | 0.0054 | 24.92% | ||
Diversified Balanced Managed Volatility Account | 0.0021 | 4.94 | Principal LifeTime 2030 Account | 0.0060 | 32.50 | ||||
Diversified Balanced Volatility Control Account | 0.0011 | 14.97 | Principal LifeTime 2040 Account | 0.0095 | 49.34 | ||||
Diversified Growth Account | 0.0044 | 9.70 | Principal LifeTime 2050 Account | 0.0103 | 47.42 | ||||
Diversified Growth Managed Volatility Account | 0.0031 | 6.25 | Principal LifeTime 2060 Account | 0.0109 | 28.16 | ||||
Diversified Growth Volatility Control Account | 0.0013 | 19.53 | Principal LifeTime Strategic Income Account | 0.0021 | 6.03 | ||||
Diversified Income Account | 0.0013 | 4.71 | SAM Balanced Portfolio | 0.0054 | 17.38 | ||||
Diversified International Account | 0.0454 | 99.37 | SAM Conservative Balanced Portfolio | 0.0028 | 11.02 | ||||
International Emerging Markets Account | 0.0491 | 99.50 | SAM Conservative Growth Portfolio | 0.0105 | 25.58 | ||||
Multi-Asset Income Account | 0.0010 | 4.68 | SAM Flexible Income Portfolio | 0.0003 | 0.80 | ||||
Principal LifeTime 2010 Account | 0.0038 | 8.42 | SAM Strategic Growth Portfolio | 0.0151 | 36.88 |
The accounts may receive a refund of taxes that can result in a redetermination of historical foreign taxes paid in accordance with IRC Section 905(c). The accounts will provide by February 28th annually, when applicable, any foreign tax redetermination on Principal’s Tax Center website under the Principal Variable Contracts Funds, Inc.’s Foreign Tax Redetermination Notices.
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Federal Income Tax Information
Principal Variable Contracts Funds, Inc.
December 31, 2018 (unaudited)
The following information is being provided to you, prompted by the acquisition of the following account effective October 12, 2018:
Acquired Fund | Acquiring Fund |
LargeCap Value Account | Equity Income Account |
Long-Term Capital Gain Distribution.Principal Variable Contracts Funds, Inc. – LargeCap Value Account distributed long-term capital gain dividends during the tax year ended October 12, 2018. Unless otherwise designated, long-term capital gain dividends are subject to a maximum tax rate of 20-percent, 15-percent, or 0-percent, depending on the shareholder’s taxable income. To the extent necessary to distribute such capital gains, certain accounts may also utilize, and hereby designate, earnings and profits distributed to shareholders on redemptions of shares as part of the Dividends Paid Deduction.
Long-Term | |
Capital Gain | |
LargeCap Value Account | $22,271,874 |
Dividends Received Deduction (“DRD”).For corporate shareholders, the percentage of ordinary income distributions (dividend income and short-term gains, if any) for the tax year ended October 12, 2018, that qualifies for the DRD are as follows:
DRD | |
LargeCap Value Account | 73.90% |
The latest Federal Income Tax Information is available on Principal's Tax Center website.Website: https://www.principalfunds.com/individual-investor/customer-support/tax-centerPlease consult your tax advisor if you have any questions.
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This report must be preceded or accompanied by a current prospectus for the Principal Variable Contracts Funds, Inc.
Principal Funds are distributed by Principal Funds Distributor, Inc.
MM1290-24| © 2018 Principal Financial Services, Inc. | 12/2018 | t171207095a
Principal Variable Contracts Funds, Inc.
Annual Report
December 31, 2018
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 yourcontract 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 maileach time a report is posted and provide you with a website link to access the report. Instructions for requesting papercopies will be provided by your insurance company.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the insurance company electronically by following the instructions provided by the insurance company.
You may elect to receive all future reports in paper free of charge from the insurance company. You can inform the insurance company that you wish to continue receiving paper copies of your shareholder reports by calling 1-800-247-9988 if you have a life insurance policy or 1-800-852-4450 if you have an annuity. Your election to receive reports in paper will apply to all portfolio companies available under your contract.
Table of Contents | |
Economic & Financial Market Review | 1 |
Important Account Information | 2 |
Diversified International Account (unaudited) | 3 |
Equity Income Account (unaudited) | 4 |
Government & High Quality Bond Account (unaudited) | 5 |
Income Account (unaudited) | 6 |
LargeCap Growth Account (unaudited) | 7 |
MidCap Account (unaudited) | 8 |
Principal Capital Appreciation Account (unaudited) | 9 |
Real Estate Securities Account (unaudited) | 10 |
SAM Balanced Portfolio (unaudited) | 11 |
SAM Conservative Balanced Portfolio (unaudited) | 12 |
SAM Conservative Growth Portfolio (unaudited) | 13 |
SAM Flexible Income Portfolio (unaudited) | 14 |
SAM Strategic Growth Portfolio (unaudited) | 15 |
Short-Term Income Account (unaudited) | 16 |
SmallCap Account (unaudited) | 17 |
Financial Statements | 18 |
Notes to Financial Statements | 36 |
Schedules of Investments | 50 |
Financial Highlights (Includes performance information) | 94 |
Report of Independent Registered Public Accounting Firm | 110 |
Shareholder Expense Example | 111 |
Supplemental Information | 114 |
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
What a turbulent year. From wild-eyed enthusiasm in January to morose gloom and recession worries in December; and after the post-Christmas stock surge, confidence enough to buy the dip. Financial returns were mainly ugly last year. Most global equity indices had losses for the year and the fourth quarter, double-digit losses in emerging markets and Europe. World bond indices were more mixed for the year, but with a minor retreat in corporate and emerging-market bond returns.
Pessimism about a global economic slowdown mounted through 2018 as data from China and the Eurozone worsened markedly. While worries about a US recession nearly became consensus, the US economy stayed robust with an excellent job market and accelerating wages. The downdraft in the stock market has taken a toll on business sentiment, so capital spending may fade somewhat and pull US growth down to the 2.5% range.
Geopolitical uncertainties plague the Eurozone and growth may only be lackluster in the 1.5% range, give or take, with some downside risk. The Chinese economy will likely continue its gradual, structural growth deceleration. Officials in Beijing are urgently trying to stimulate growth back to target, but with debt already high and pollution severe, the downside risk is significant. Japan’s economy is rebounding from a third-quarter contraction. The strong labor market, rising wages, and robust corporate profits should keep growth in the 1% to 1.5% range. India may be a positive outlier in a slowing world economy; its economy could be a new world growth leader.
For stocks, the downdraft is likely not over yet, although a rally the next few weeks would provide a respite from the bear market and an opportunity to take some risk off the table. We envision a broad index decline of 25% to 30% from the highs of last year before investors reacquaint themselves with the new and tougher monetary environment. But, with no coincident recession, stock markets could rally sharply from mid-2019 into next year.
Yields on long-dated US treasury bonds may rise along with stocks if the equity rally persists into late-January. We’d guess yields of 2.8% to 2.9% would be a good place to extend maturity for the next six months. If sellers extinguish whatever stock market upturn that comes, US treasury bond yields would likely continue to fall with the stock market into mid-2019.
*All data cited, unless otherwise indicated from Bloomberg. Commentary by Bob Baur and the Economic Committee.
1
Important Account Information
The following information applies to all accounts shown in the annual report (unless noted):
The line graphs on the following pages illustrate the growth of a hypothetical $10,000 investment. For each account, the illustration is based on performance of the Class 1 shares. The performance of the Class 2 shares will differ.
Investment results shown represent historical performance and do not guarantee future results. Your investment’s returns and principal values will fluctuate with changes in interest rates and other market conditions so the value, when redeemed, may be worth more or less than original costs. Performance shown does not account for fees, expenses, and charges of any variable insurance contract or retirement plan. If these fees were reflected, performance would be lower. Current performance may be lower or higher than the performance shown. For more information, including the most recent month-end performance, call your financial professional, or call 800-222-5852.
* Performance assumes reinvestment of all dividends and capital gains. Extended performance is calculated based on the historical performance of the Account’s oldest share class, adjusted for the fees and expenses of the share class shown. Performance does not reflect the impact of federal, state, or municipal taxes. If it did, performance wouldbe lower.
** Performance shown for the benchmark assumes reinvestment of all dividends and distributions. Indices are unmanaged, and individuals cannot invest directly in an index.
2
Diversified International Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | -17.54 | % | 0.60 | % | 6.34 | % | 5/2/94 |
Class 2 Shares | -17.78 | % | 0.34 | % | 6.06 | % | 1/8/07 |
What contributed to or detracted from Fund performance during the fiscal year? |
Diversified International Account invests primarily in foreign equity securities. The Account has no limitation on the percentage of assets that are invested in any one country or denominated in any one currency, but the Account typically invests in foreign securities of at least 30 countries. Primary consideration is given to securities of corporations of developed areas, such as Japan, Western Europe, Canada, Australia, and New Zealand; however, the Account also invests in emerging market securities. The Account invests in equity securities of small, medium, and large market capitalization companies.
Stock selection in France contributed, driven by overweight to Safran SA, a major supplier of aircraft engines and equipment. Stock selection in Germany contributed, led by overweight to Hannover Ruck SE. Stock selection in Australia contributed, led by an overweight position in CSL Limited, the world's largest plasma fractionator, which collects and fractionates human plasma into its component parts, most of which are used in the prevention and treatment of serious medical conditions. Stock selection in Japan detracted, led by overweight to Komatsu, Ltd. Stock selection in the materials sector detracted, led by overweight to China National Building Material Co. Ltd., the largest cement company in the world and one of the two dominant cement conglomerates in China. Stock selection in the UK detracted, led by an overweight to GVC Holdings plc., a global B2C online and retail gaming company created from the mergers of GVC with Ladbrokes Coral.
3
Under normal circumstances, Equity Income Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in dividend-paying equity securities at the time of each purchase. The Account usually invests in equity securities of companies with large market capitalizations. For this Account, companies with large market capitalizations are those with market capitalizations within the range of companies comprising the Russell 1000® Value Index. The Account invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued. The Account also invests in real estate investment trusts and securitiesof foreign issuers.
Lack of allocation to General Electric contributed as it disappointed with anemic sales growth and concerns for its future growth deepened. Lack of allocation to Philip Morris contributed as the large index constituent lagged. Allocation to Starbucks contributed due to improved comps in China and stronger afternoon business in the United States. Allocation to Cimarex detracted as gas prices remained low and investors were concerned about takeaway capacity from the Permian basin. Lack of allocation to Cisco Systems detracted from relative performance. Allocation to Discover Financial Services detracted due to modestly lower full year net interest margin guidance.
4
Government & High Quality Bond Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | 0.91 | % | 2.08 | % | 3.16 | % | 5/6/93 |
Class 2 Shares | 0.69 | % | 1.82 | % | 2.90 | % | 11/6/01 |
What contributed to or detracted from Fund performance during the fiscal year? |
Under normal circumstances, Government & High Quality Bond Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in securities issued by the U.S. government, its agencies or instrumentalities or securities that are rated, at the time of purchase, AAA by Standard & Poor's Ratings Services ("S&P") or Aaa by Moody's Investors Service, Inc. ("Moody's"), or, if unrated, in the opinion of the Sub-Advisor of comparable quality including but not limited to mortgage securities such as agency and non-agency collateralized mortgage obligations, and other obligations that are secured by mortgages or mortgage-backed securities (securitized products). Under normal circumstances, the Account maintains an average portfolio duration that is within ±25% of the duration of the Bloomberg Barclays Fixed-Rate MBS Index. The Account also invests in mortgage-backed securities that are not issued by the U.S. government, its agencies or instrumentalities or rated AAA by S&P, AAA by Fitch, or Aaa by Moody's, including collateralized mortgage obligations, and in other obligations that are secured by mortgages or mortgage-backed securities.
Out-of-index allocations to agency CMBS, non-agency CMBS. agency CMO, whole loan CMO, and US Treasurys contributed. Underweight to 30-year GNMA, 30-year Freddie Mac (FHLMC), 30-year FNMA, 15-year FNMA, and 15-year FHLMC detracted.
5
Income Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | 0.78 | % | 3.26 | % | 5.84 | % | 5/7/93 |
Class 2 Shares | 0.47 | % | 3.01 | % | 5.58 | % | 11/6/01 |
What contributed to or detracted from Fund performance during the fiscal year? |
Income Account invests primarily in a diversified pool of fixed-income securities including corporate securities, U.S. government securities, and mortgage-backed securities (securitized products) (including collateralized mortgage obligations), up to 35% of which may be in below investment grade bonds (sometimes called “high yield bonds” or "junk bonds") which are rated, at the time of purchase, Ba1 or lower by Moody's Investors Service, Inc. ("Moody's") and BB+ or lower by Standard & Poor's Ratings Services ("S&P") (if the bond has been rated by only one of those agencies, that rating will determine whether the bond is below investment grade; if the bond has not been rated by either of those agencies, the SubAdvisor will determine whether the bond is of a quality comparable to those rated below investment grade). Under normal circumstances, the Account maintains an average portfolio duration that is within ±25% of the duration of the Bloomberg Barclays U.S. Aggregate Bond Index. The Account also invests in foreign securities.
Issue selection in the electric utilities, insurance, consumer non-cyclical, energy, and basic industry sectors contributed. Underweight and issue selection in US Treasurys detracted. Overweight to the energy sector, consumer non-cyclical sector, and insurance sectors detracted. Issue selection in the agency fixed-rate sector detracted.
6
Under normal circumstances, LargeCap Growth Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with large market capitalizations at the time of each purchase. For this Account, companies with large market capitalizations are those with market capitalizations within the range of companies comprising the Russell 1000® Growth Index. The Account invests in growth equity securities; growth orientation emphasizes buying equity securities of companies whose potential for growth of capital and earnings is expected to be above average.
Allocation to Netflix contributed based on strong subscriber growth in the United States and international markets, resulting from compelling programming and expansion within existing and new regions. Allocation to Intuitive Surgical Inc. contributed as it launched several product innovations, entered new geographies that are expected to expand the company's available opportunity, and its instrumentation business had strong robotic procedure growth and strong utilization levels within general surgery. Allocation to ServiceNow, a leading provider of cloud-based software, contributed due to the secular trend away from direct ownership to subscription models for information technology (IT) help desk software, and having success in adjacent areas, such as IT operations management and human resources. Allocation to XPO Logistics detracted. An out-of-index allocation to Knight-Swift Transportation, detracted due to driver shortages, labor cost pressures, and subpar utilization levels at its Swift Transportation business.Allocation to GrubHubs detracted as a result of feared bottom-line impacts from the companys ongoing growth spending to enter and further penetrate new markets.
7
Under normal circumstances, MidCap Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with medium market capitalizations at the time of each purchase. For this Account, companies with medium market capitalizations are those with market capitalizations within the range of companies comprising the Russell Midcap® Index. The Accountinvests in foreign securities.
Allocation to O'Reilly, a leading auto parts aftermarket retailer, contributed.Allocation to TransDigm, a supplier of an extensive collection of airplane components led by a highly respected management team, contributed due to strong demand in its aftermarket business. Allocation to Autodesk, the market leader in computer-aided design, with significant architectural and manufacturing end markets, contributed due to continued progress in converting legacy customers to subscriptions.Allocation to VeriSign, which is responsible for connecting internet users to all .COM and .NET websites, contributed. Allocation to Ross Stores, the second largest off-price retailer in the United States, contributed. Allocation to Mohawk, the largest manufacturer of flooring products, detracted due to temporary headwinds such as cost inflation.Allocation to Colfax, an industrial company providing gas and fluid handling equipment as well as welding-related products, detracted partially due to weakness in some of its end markets outside the US. Allocation to Dentsply Sirona, a global dental solutions provider focused on developing and commercializing dental supplies and equipment around the world, detracted in part due to its continued work on fully integrating what had previously been two separate businesses (Dentsply and Sirona). Allocation to Liberty Global, a large cable and broadband company with operations primarily in Europe, detracted due to concerns about future growth opportunities in Europe. Allocation to Brookfield Asset Management, an owner and operator of real asset-based businesses around the world, detracted.
***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.
8
Principal Capital Appreciation Account invests primarily in equity securities of companies with any market capitalization, but has a greater exposure to large market capitalization companies than small or medium market capitalization companies. The Account invests in equity securities with value and/or growth characteristics and constructs an investment portfolio that has a "blend" of equity securities with these characteristics. Investing in value equity securities is an investment strategy that emphasizes buying equity securities that appear to be undervalued. The growth orientation selection emphasizes buying equity securities of companies whose potential for growth of capital and earnings is expected to be above average. The Account does not have a policy of preferring one of these categories over the other.
Allocation to Church & Dwight Co., Inc. contributed, driven by better-than-expected organic sales growth, profitability, and lower taxes. Allocation to Doctor Pepper Snapple contributed following the announcement of a merger with Keurig Green Mountain. Allocation to Microsoft contributed as its cloud and non-cloud computing businesses both showed strength. Allocation to Cimarex detracted as gas prices remained low and investors were concerned about takeaway capacity from the Permian basin. Allocation to Ameriprise Financial, Inc. detracted due to the decline in asset markets and concerns about the company's long-term care contracts. Allocation to Thor Industries detracted as investors remained concerned about elevated inventory levels at dealers, gross margin pressure, and higher labor and materialscosts.
9
Under normal circumstances, Real Estate Securities Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies principally engaged in the real estate industry at the time of each 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. Real estate companies include real estate investment trusts ("REITs") and companies with substantial real estate holdings such as paper, lumber, hotel and entertainment companies as well as those whose products and services relate to the real estate industry include building supply manufacturers, mortgage lenders and mortgage servicing companies. The Account invests in equity securities of small, medium, and large market capitalizationcompanies.
Sector allocations helped drive outperformance. Selection US office and an underweight to the group was a contributor. Underweight to and stock selection in retail contributed as negative sentiment weighed the sector. Overweight to towers, which was supported by secular growth, and residential, which was supported by defensive trading, contributed. Overweight to STORE Capital Corporation contributed. Underweight to Colony Capital Inc, one of the worst performing index stocks, contributed. Overweight to Welltower, Inc. contributed as senior housing property performed better-than-feared. Underweight to special purpose property owners detracted as the group fared better with the rotation into defensives. Selection in single family rentals and hotels was a drag on relative results. Overweight to Equinix, Inc. detracted due to disappointment over deceleration in growth of stabilized data centers. An out-of-index allocation to Hilton Grand Vacations, Inc. detracted as it lagged REITs. Underweight to Realty Income Corporation detracted.
10
Strategic Asset Management (SAM) Portfolios invest wholly in the shares of the underlying funds.
Security selection in large-cap equities was the largest contributor. Security selection in investment-grade corporate bonds aided performance. Security selection in international developed market value equities contributed. Security selection in international developed and emerging market equities was the largest detractor. Strategic allocation to international emerging market equities, which underperformed their US counterparts, hindered performance. Strategic underweight to large-cap growth equities, which outperformed their value counterparts, detracted.
11
SAM Conservative Balanced Portfolio
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | -3.49 | % | 3.81 | % | 7.56 | % | 4/23/98 |
Class 2 Shares | -3.75 | % | 3.55 | % | 7.29 | % | 11/6/01 |
What contributed to or detracted from Fund performance during the fiscal year? |
Strategic Asset Management (SAM) Portfolios invest wholly in the shares of the underlying funds.
Security selection in investment-grade corporate bonds was the largest contributor to performance. Security selection in large-cap equities aided performance. Security selection in international developed market value equities contributed to performance. Strategic allocation to international emerging market equities, which underperformed their US counterparts, was the largest detractor. Strategic underweight to large-cap growth equities, which outperformed their value counterparts, hindered performance. Security selection in international emerging market equities detracted.
12
Strategic Asset Management (SAM) Portfolios invest wholly in the shares of the underlying funds.
Security selection in large-cap equities was the largest positive contributor. Security selection in international developed market value equities aided performance. Security selection in investment-grade corporate bonds contributed. Strategic allocation to international emerging market equities, which underperformed their US counterparts, was the largest detractor. Security selection in international developed and emerging market equities hindered performance. Strategic underweight to large-cap growth equities, which outperformed their value counterparts, detracted.
13
SAM Flexible Income Portfolio
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | -1.97 | % | 3.55 | % | 6.88 | % | 9/9/97 |
Class 2 Shares | -2.20 | % | 3.29 | % | 6.61 | % | 11/6/01 |
What contributed to or detracted from Fund performance during the fiscal year? |
Strategic Asset Management (SAM) Portfolios invest wholly in the shares of the underlying funds.
Security selection in investment-grade corporate bonds was the largest contributor to performance. Security selection in large-cap value equities aided performance. Security selection in real estate investment trusts (REITs) contributed. Strategic allocation to high yield bonds, which underperformed core fixed income bonds, was the largest detractor. Strategic and tactical underweight to government bonds, which outperformed core fixed income bonds, hindered performance. Strategic underweight to large-cap growth equities, which outperformed their value counterparts, detracted.
14
Strategic Asset Management (SAM) Portfolios invest wholly in the shares of the underlying funds.
Security selection in large-cap equities was the largest contributor. Security selection in international developed market value equities aided performance. Security selection in small-cap value equities contributed. Strategic allocation to international emerging market equities, which underperformed their US counterparts, was the largest detractor. Security selection in international developed and emerging market equities hindered performance. Strategic underweight to large-cap growth equities, which outperformed their value counterparts, detracted.
15
Short-Term Income Account
Investment Advisor: Principal Global Investors, LLC
Average Annual Total Returns*as ofDecember 31, 2018 | |||||||
1-Year | 5-Year | 10-Year | Inception Date | ||||
Class 1 Shares | 1.02 | % | 1.59 | % | 2.93 | % | 1/12/94 |
Class 2 Shares | 1.23 | % | 1.32 | % | 2.73 | % | 11/6/01 |
What contributed to or detracted from Fund performance during the fiscal year? |
Short-Term IncomeAccount 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 Standard & Poor's Ratings Services or Baa3 or higher by Moody's Investors Service, Inc. or, if unrated, in the opinion of the Sub-Advisor of comparable quality. Under normal circumstances, the Account maintains an effective maturity of five years or less and an average portfolio duration that is within ±15% of the duration of the Bloomberg Barclays Credit 1-3 Year Index. The Account's investments also include corporate securities, U.S. and foreign government securities, mortgage-backed and asset backed securities (securitized products), and real estate investment trust ("REIT") securities. The Account invests in securities denominated in foreign currencies and in securities of foreign issuers.
Out-of-index allocation to agency commercial mortgage-backed securities (CMBS), auto-backed, other ABS, and student loan sectors contributed. Overweight to the consumer cyclical sector contributed. Issue selection in the banking sector, owned no-guarantee, energy, consumer non-cyclical sector, and consumer cyclical sectors detracted.
16
Under normal circumstances, SmallCap Account invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with small market capitalizations at the time of each purchase. For thisAccount, companies with small market capitalizations are those with market capitalizations within the range of companies comprising the Russell 2000® Index.
Holdings in consumer services, industrials, and software companies were key contributors. In consumer services, a subset of the consumers discretionary sector, fitness facilities and casino and gaming companies performed well, reflecting a continued trend of consumer preferences for experiential consumption. In the industrials sector, human resources companies performed well amid a strong labor market. In software, a subset of the IT sector, holdings broadly performed well, with notable strength in companies focused on security and automation. The five individual stocks contributing most were Planet Fitness, Carvana, Encompass Health, Agree Realty, and Aspen Technology. Holdings in financials, technology hardware and equipment, and homebuilders were key detractors. In the financials sector, commercial banks and investment banking/advisory firms were weak. In technology hardware and equipment, a subset of the IT sector, holdings faced an unusually strong combination of headwinds amid investor concerns about tariff exposure, potential economic deceleration, and end-market exposure to Apple and Facebook. In homebuilders, a subset of the consumer discretionary sector holdings were weak amid rising interest rates and signs of deceleration in the US housing market. The five individual stocks that detracted most were GMS, Taylor Morrison Home, Visteon, Univar, and SYNNEX.
***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.
17
Statements of Assets and Liabilities | ||||||||
Principal Variable Contracts Funds, Inc. | ||||||||
December 31, 2018 | ||||||||
Diversified | Government & High | |||||||
Amounts in thousands, except per share amounts | International Account | Equity Income Account | Quality Bond Account | |||||
Investment in securities--at cost | $ | 228,713 | $ | 469,909 | $ | 228,942 | ||
Investment in affiliated securities--at cost | $ | 1,664 | $ | 8,817 | $ | 1,278 | ||
Foreign currency--at cost | $ | 136 | $ | 1 | $ | – | ||
Assets | ||||||||
Investment in securities--at value | $ | 232,755 | $ | 649,647 | $ | 221,810 | ||
Investment in affiliated securities--at value | 1,664 | 8,817 | 1,278 | |||||
Foreign currency--at value | 129 | 1 | – | |||||
Receivables: | ||||||||
Dividends and interest | 881 | 2,031 | 976 | |||||
Fund shares sold | 371 | 1,769 | 96 | |||||
Investment securities sold | 674 | 1,604 | – | |||||
Total Assets | 236,474 | 663,869 | 224,160 | |||||
Liabilities | ||||||||
Accrued management and investment advisory fees | 172 | 273 | 95 | |||||
Accrued distribution fees | – | 6 | 1 | |||||
Accrued custodian fees | 30 | – | – | |||||
Accrued directors' expenses | 1 | 3 | 1 | |||||
Accrued other expenses | 7 | 44 | 4 | |||||
Deposits from counterparty | – | – | – | |||||
Payables: | ||||||||
Fund shares redeemed | 57 | 298 | 1,820 | |||||
Investment securities purchased | 575 | 1,861 | – | |||||
Total Liabilities | 842 | 2,485 | 1,921 | |||||
Net Assets Applicable to Outstanding Shares | $ | 235,632 | $ | 661,384 | $ | 222,239 | ||
Net Assets Consist of: | ||||||||
Capital shares and additional paid-in-capital | $ | 216,479 | $ | 445,352 | $ | 231,816 | ||
Total distributable earnings (loss) | 19,153 | 216,032 | (9,577 | ) | ||||
Total Net Assets | $ | 235,632 | $ | 661,384 | $ | 222,239 | ||
Capital Stock (par value: $.01 per share): | ||||||||
Shares authorized | 300,000 | 200,000 | 200,000 | |||||
Net Asset Value Per Share: | ||||||||
Class 1: Net Assets | $ | 233,612 | $ | 636,177 | $ | 219,612 | ||
Shares issued and outstanding | 17,031 | 27,829 | 23,188 | |||||
Net Asset Value per share | $ | 13.72 | $ | 22.86 | $ | 9.47 | ||
Class 2: Net Assets | $ | 2,020 | $ | 25,207 | $ | 2,627 | ||
Shares issued and outstanding | 146 | 1,112 | 278 | |||||
Net Asset Value per share | $ | 13.81 | $ | 22.66 | $ | 9.46 |
See accompanying notes.
18
Statements of Assets and Liabilities | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
December 31, 2018 | ||||||||||||
LargeCap Growth | ||||||||||||
Amounts in thousands, except per share amounts | Income Account | Account | MidCap Account | |||||||||
Investment in securities--at cost | $ | 176,788 | $ | 90,794 | $ | 388,556 | ||||||
Investment in affiliated securities--at cost | $ | 1,795 | $ | 2,326 | $ | 4,942 | ||||||
Assets | ||||||||||||
Investment in securities--at value | $ | 179,127 | $ | 97,684 | $ | 487,713 | ||||||
Investment in affiliated securities--at value | 1,795 | 2,326 | 4,942 | |||||||||
Cash | – | – | 249 | |||||||||
Receivables: | ||||||||||||
Dividends and interest | 1,565 | 32 | 284 | |||||||||
Fund shares sold | 27 | 164 | 1,092 | |||||||||
Investment securities sold | – | 165 | 2,053 | |||||||||
Total Assets | 182,514 | 100,371 | 496,333 | |||||||||
Liabilities | ||||||||||||
Accrued management and investment advisory fees | 78 | 59 | 235 | |||||||||
Accrued distribution fees | 1 | 1 | 3 | |||||||||
Accrued directors' expenses | 1 | 1 | 2 | |||||||||
Accrued other expenses | 4 | 3 | 5 | |||||||||
Cash overdraft | 39 | – | – | |||||||||
Deposits from counterparty | – | – | – | |||||||||
Payables: | ||||||||||||
Fund shares redeemed | 620 | 17 | 33 | |||||||||
Investment securities purchased | – | – | 5,980 | |||||||||
Total Liabilities | 743 | 81 | 6,258 | |||||||||
Net Assets Applicable to Outstanding Shares | $ | 181,771 | $ | 100,290 | $ | 490,075 | ||||||
Net Assets Consist of: | ||||||||||||
Capital shares and additional paid-in-capital | $ | 172,824 | $ | 74,720 | $ | 309,197 | ||||||
Total distributable earnings (loss) | 8,947 | 25,570 | 180,878 | |||||||||
Total Net Assets | $ | 181,771 | $ | 100,290 | $ | 490,075 | ||||||
Capital Stock (par value: $.01 per share): | ||||||||||||
Shares authorized | 200,000 | 300,000 | 105,000 | |||||||||
Net Asset Value Per Share: | ||||||||||||
Class 1: Net Assets | $ | 178,598 | $ | 98,106 | $ | 474,365 | ||||||
Shares issued and outstanding | 17,851 | 3,472 | 9,774 | |||||||||
Net Asset Value per share | $ | 10.01 | $ | 28.25 | $ | 48.53 | ||||||
Class 2: Net Assets | $ | 3,173 | $ | 2,184 | $ | 15,710 | ||||||
Shares issued and outstanding | 319 | 78 | 326 | |||||||||
Net Asset Value per share | $ | 9.96 | $ | 28.06 | $ | 48.19 |
See accompanying notes.
19
Statements of Assets and Liabilities | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
December 31, 2018 | ||||||||||||
Principal Capital | Real Estate Securities | SAM Balanced | ||||||||||
Amounts in thousands, except per share amounts | Appreciation Account | Account | Portfolio | |||||||||
Investment in securities--at cost | $ | 92,430 | $ | 119,750 | $ | – | ||||||
Investment in affiliated securities--at cost | $ | 2,989 | $ | 911 | $ | 620,442 | ||||||
Assets | ||||||||||||
Investment in securities--at value | $ | 133,358 | $ | 135,519 | $ | – | ||||||
Investment in affiliated securities--at value | 2,989 | 911 | 664,593 | |||||||||
Receivables: | ||||||||||||
Dividends and interest | 195 | 601 | 944 | |||||||||
Expense reimbursement from Manager | – | – | 3 | |||||||||
Fund shares sold | 914 | 26 | 66 | |||||||||
Investment securities sold | – | 84 | 1,364 | |||||||||
Total Assets | 137,456 | 137,141 | 666,970 | |||||||||
Liabilities | ||||||||||||
Accrued management and investment advisory fees | 74 | 108 | 133 | |||||||||
Accrued distribution fees | 2 | 1 | 23 | |||||||||
Accrued directors' expenses | 1 | – | 3 | |||||||||
Accrued other expenses | 4 | 4 | 3 | |||||||||
Deposits from counterparty | – | – | – | |||||||||
Payables: | ||||||||||||
Fund shares redeemed | 71 | 82 | 1,430 | |||||||||
Investment securities purchased | – | 24 | 165 | |||||||||
Total Liabilities | 152 | 219 | 1,757 | |||||||||
Net Assets Applicable to Outstanding Shares | $ | 137,304 | $ | 136,922 | $ | 665,213 | ||||||
Net Assets Consist of: | ||||||||||||
Capital shares and additional paid-in-capital | $ | 81,489 | $ | 108,009 | $ | 581,979 | ||||||
Total distributable earnings (loss) | 55,815 | 28,913 | 83,234 | |||||||||
Total Net Assets | $ | 137,304 | $ | 136,922 | $ | 665,213 | ||||||
Capital Stock (par value: $.01 per share): | ||||||||||||
Shares authorized | 200,000 | 300,000 | 300,000 | |||||||||
Net Asset Value Per Share: | ||||||||||||
Class 1: Net Assets | $ | 128,547 | $ | 133,429 | $ | 561,162 | ||||||
Shares issued and outstanding | 4,970 | 7,471 | 40,365 | |||||||||
Net Asset Value per share | $ | 25.86 | $ | 17.86 | $ | 13.90 | ||||||
Class 2: Net Assets | $ | 8,757 | $ | 3,493 | $ | 104,051 | ||||||
Shares issued and outstanding | 342 | 195 | 7,573 | |||||||||
Net Asset Value per share | $ | 25.58 | $ | 17.92 | $ | 13.74 |
See accompanying notes.
20
Statements of Assets and Liabilities | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
December 31, 2018 | |||||||||
SAM Conservative | SAM Conservative | SAM Flexible Income | |||||||
Amounts in thousands, except per share amounts | Balanced Portfolio | Growth Portfolio | Portfolio | ||||||
Investment in affiliated securities--at cost | $ | 169,317 | $ | 297,435 | $ | 179,412 | |||
Assets | |||||||||
Investment in affiliated securities--at value | $ | 174,647 | $ | 307,664 | $ | 182,558 | |||
Receivables: | |||||||||
Dividends and interest | 207 | 421 | 255 | ||||||
Expense reimbursement from Manager | 3 | – | – | ||||||
Fund shares sold | 4 | 681 | 5 | ||||||
Investment securities sold | 197 | – | 223 | ||||||
Total Assets | 175,058 | 308,766 | 183,041 | ||||||
Liabilities | |||||||||
Accrued management and investment advisory fees | 35 | 62 | 36 | ||||||
Accrued distribution fees | 5 | 26 | 6 | ||||||
Accrued directors' expenses | 1 | 1 | 1 | ||||||
Accrued other expenses | 3 | 3 | 3 | ||||||
Deposits from counterparty | – | – | – | ||||||
Payables: | |||||||||
Fund shares redeemed | 201 | 143 | 228 | ||||||
Investment securities purchased | 67 | 570 | 92 | ||||||
Total Liabilities | 312 | 805 | 366 | ||||||
Net Assets Applicable to Outstanding Shares | $ | 174,746 | $ | 307,961 | $ | 182,675 | |||
Net Assets Consist of: | |||||||||
Capital shares and additional paid-in-capital | $ | 162,548 | $ | 277,503 | $ | 170,220 | |||
Total distributable earnings (loss) | 12,198 | 30,458 | 12,455 | ||||||
Total Net Assets | $ | 174,746 | $ | 307,961 | $ | 182,675 | |||
Capital Stock (par value: $.01 per share): | |||||||||
Shares authorized | 200,000 | 200,000 | 200,000 | ||||||
Net Asset Value Per Share: | |||||||||
Class 1: Net Assets | $ | 154,297 | $ | 189,654 | $ | 157,019 | |||
Shares issued and outstanding | 13,969 | 11,049 | 13,242 | ||||||
Net Asset Value per share | $ | 11.05 | $ | 17.16 | $ | 11.86 | |||
Class 2: Net Assets | $ | 20,449 | $ | 118,307 | $ | 25,656 | |||
Shares issued and outstanding | 1,875 | 6,993 | 2,185 | ||||||
Net Asset Value per share | $ | 10.91 | $ | 16.92 | $ | 11.74 |
See accompanying notes.
21
Statements of Assets and Liabilities | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
December 31, 2018 | ||||||||||||
SAM Strategic Growth | Short-Term Income | |||||||||||
Amounts in thousands, except per share amounts | Portfolio | Account | SmallCap Account | |||||||||
Investment in securities--at cost | $ | – | $ | 152,106 | $ | 170,938 | ||||||
Investment in affiliated securities--at cost | $ | 260,184 | $ | 4,856 | $ | 1,443 | ||||||
Assets | ||||||||||||
Investment in securities--at value | $ | – | $ | 150,924 | $ | 165,274 | ||||||
Investment in affiliated securities--at value | 254,815 | 4,856 | 1,443 | |||||||||
Receivables: | ||||||||||||
Dividends and interest | 425 | 786 | 253 | |||||||||
Expense reimbursement from Manager | – | 1 | – | |||||||||
Fund shares sold | 47 | 89 | 1,337 | |||||||||
Investment securities sold | – | 38 | – | |||||||||
Total Assets | 255,287 | 156,694 | 168,307 | |||||||||
Liabilities | ||||||||||||
Accrued management and investment advisory fees | 51 | 66 | 123 | |||||||||
Accrued distribution fees | 25 | 1 | 1 | |||||||||
Accrued directors' expenses | 1 | – | 1 | |||||||||
Accrued other expenses | 3 | 5 | 4 | |||||||||
Cash overdraft | – | 5 | – | |||||||||
Deposits from counterparty | – | – | – | |||||||||
Payables: | ||||||||||||
Fund shares redeemed | 43 | 3,459 | 7 | |||||||||
Investment securities purchased | 15 | – | 54 | |||||||||
Total Liabilities | 138 | 3,536 | 190 | |||||||||
Net Assets Applicable to Outstanding Shares | $ | 255,149 | $ | 153,158 | $ | 168,117 | ||||||
Net Assets Consist of: | ||||||||||||
Capital shares and additional paid-in-capital | $ | 242,388 | $ | 151,985 | $ | 144,544 | ||||||
Total distributable earnings (loss) | 12,761 | 1,173 | 23,573 | |||||||||
Total Net Assets | $ | 255,149 | $ | 153,158 | $ | 168,117 | ||||||
Capital Stock (par value: $.01 per share): | ||||||||||||
Shares authorized | 200,000 | 400,000 | 200,000 | |||||||||
Net Asset Value Per Share: | ||||||||||||
Class 1: Net Assets | $ | 140,247 | $ | 149,075 | $ | 163,243 | ||||||
Shares issued and outstanding | 7,641 | 59,206 | 11,419 | |||||||||
Net Asset Value per share | $ | 18.36 | $ | 2.52 | $ | 14.30 | ||||||
Class 2: Net Assets | $ | 114,902 | $ | 4,083 | $ | 4,874 | ||||||
Shares issued and outstanding | 6,342 | 1,628 | 342 | |||||||||
Net Asset Value per share | $ | 18.11 | $ | 2.51 | $ | 14.24 |
See accompanying notes.
22
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
Diversified | Government & | ||||||||
International | Equity Income | High Quality Bond | |||||||
Amounts in thousands | Account | Account | Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 57 | $ | 133 | $ | 40 | |||
Dividends | 8,702 | 18,658 | – | ||||||
Withholding tax | (817 | ) | (373 | ) | – | ||||
Interest | – | 1 | 6,752 | ||||||
Total Income | 7,942 | 18,419 | 6,792 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 2,383 | 2,990 | 1,158 | ||||||
Distribution fees - Class 2 | 5 | 67 | 6 | ||||||
Chief compliance officer fees | – | 1 | – | ||||||
Custodian fees | 126 | 13 | 5 | ||||||
Directors' expenses | 7 | 14 | 7 | ||||||
Professional fees | 39 | 8 | 4 | ||||||
Other expenses | 1 | 1 | – | ||||||
Total Expenses | 2,561 | 3,094 | 1,180 | ||||||
Net Investment Income (Loss) | 5,381 | 15,325 | 5,612 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign currencies | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 13,004 | 26,702 | (4,919 | ) | |||||
Foreign currency transactions | (261 | ) | – | – | |||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (68,964 | ) | (78,310 | ) | 1,170 | ||||
Translation of assets and liabilities in foreign currencies | (27 | ) | – | – | |||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign currencies | (56,248 | ) | (51,608 | ) | (3,749 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (50,867 | ) | $ | (36,283 | ) | $ | 1,863 |
See accompanying notes.
23
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
LargeCap Growth | |||||||||
Amounts in thousands | Income Account | Account | MidCap Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 76 | $ | 32 | $ | 31 | |||
Dividends | – | 860 | 4,856 | ||||||
Withholding tax | – | – | (148 | ) | |||||
Interest | 8,014 | – | – | ||||||
Total Income | 8,090 | 892 | 4,739 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 1,002 | 824 | 3,058 | ||||||
Distribution fees - Class 2 | 8 | 5 | 44 | ||||||
Chief compliance officer fees | – | – | 1 | ||||||
Custodian fees | 3 | 2 | 7 | ||||||
Directors' expenses | 6 | 4 | 13 | ||||||
Professional fees | 5 | 4 | 5 | ||||||
Other expenses | – | – | 1 | ||||||
Total Expenses | 1,024 | 839 | 3,129 | ||||||
Net Investment Income (Loss) | 7,066 | 53 | 1,610 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 3,115 | 18,641 | 91,599 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (9,259 | ) | (25,599 | ) | (126,070 | ) | |||
Net Realized and Unrealized Gain (Loss) on Investments | (6,144 | ) | (6,958 | ) | (34,471 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 922 | $ | (6,905 | ) | $ | (32,861 | ) |
See accompanying notes.
24
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
Principal Capital | |||||||||
Appreciation | Real Estate | SAM Balanced | |||||||
Amounts in thousands | Account | Securities Account | Portfolio | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 44 | $ | 7 | $ | 18,872 | |||
Dividends | 3,339 | 4,103 | – | ||||||
Withholding tax | (2 | ) | – | – | |||||
Total Income | 3,381 | 4,110 | 18,872 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 980 | 1,303 | 1,704 | ||||||
Distribution fees - Class 2 | 23 | 8 | 278 | ||||||
Chief compliance officer fees | – | – | 1 | ||||||
Custodian fees | 3 | 2 | – | ||||||
Directors' expenses | 5 | 5 | 16 | ||||||
Professional fees | 5 | 5 | 4 | ||||||
Other expenses | – | 1 | 1 | ||||||
Total Gross Expenses | 1,016 | 1,324 | 2,004 | ||||||
Less: Reimbursement from Manager - Class 1 | – | – | 7 | ||||||
Less: Reimbursement from Manager - Class 2 | – | – | 1 | ||||||
Total Net Expenses | 1,016 | 1,324 | 1,996 | ||||||
Net Investment Income (Loss) | 2,365 | 2,786 | 16,876 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | 15,443 | 10,389 | 13 | ||||||
Investment transactions in affiliated securities | – | – | 11,017 | ||||||
Capital gain distribution received from affiliated securities | – | – | 15,584 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | (21,803 | ) | (19,411 | ) | – | ||||
Investments in affiliated securities | – | – | (78,727 | ) | |||||
Net Realized and Unrealized Gain (Loss) on Investments | (6,360 | ) | (9,022 | ) | (52,113 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (3,995 | ) | $ | (6,236 | ) | $ | (35,237 | ) |
See accompanying notes.
25
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
SAM Conservative | SAM Conservative | SAM Flexible | |||||||
Amounts in thousands | Balanced Portfolio | Growth Portfolio | Income Portfolio | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 5,727 | $ | 7,015 | $ | 6,953 | |||
Total Income | 5,727 | 7,015 | 6,953 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 434 | 778 | 461 | ||||||
Distribution fees - Class 2 | 52 | 319 | 62 | ||||||
Directors' expenses | 6 | 8 | 6 | ||||||
Professional fees | 4 | 4 | 4 | ||||||
Total Gross Expenses | 496 | 1,109 | 533 | ||||||
Less: Reimbursement from Manager - Class 1 | 23 | – | – | ||||||
Less: Reimbursement from Manager - Class 2 | 3 | – | – | ||||||
Total Net Expenses | 470 | 1,109 | 533 | ||||||
Net Investment Income (Loss) | 5,257 | 5,906 | 6,420 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions in affiliated securities | 1,370 | 5,222 | 4,527 | ||||||
Capital gain distribution received from affiliated securities | 2,683 | 10,369 | 1,249 | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments in affiliated securities | (15,820 | ) | (43,484 | ) | (15,998 | ) | |||
Net Realized and Unrealized Gain (Loss) on Investments | (11,767 | ) | (27,893 | ) | (10,222 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (6,510 | ) | $ | (21,987 | ) | $ | (3,802 | ) |
See accompanying notes.
26
Statements of Operations | |||||||||
Principal Variable Contracts Funds, Inc. | |||||||||
Year Ended December 31, 2018 | |||||||||
SAM Strategic | Short-Term Income | ||||||||
Amounts in thousands | Growth Portfolio | Account | SmallCap Account | ||||||
Net Investment Income (Loss) | |||||||||
Income: | |||||||||
Dividends from affiliated securities | $ | 5,172 | $ | 51 | $ | 42 | |||
Dividends | – | – | 2,094 | ||||||
Withholding tax | – | – | (1 | ) | |||||
Interest | – | 4,134 | – | ||||||
Total Income | 5,172 | 4,185 | 2,135 | ||||||
Expenses: | |||||||||
Management and investment advisory fees | 654 | 777 | 1,712 | ||||||
Distribution fees - Class 2 | 317 | 8 | 14 | ||||||
Custodian fees | – | 9 | 4 | ||||||
Directors' expenses | 7 | 5 | 6 | ||||||
Professional fees | 4 | 4 | 5 | ||||||
Other expenses | – | 1 | – | ||||||
Total Gross Expenses | 982 | 804 | 1,741 | ||||||
Less: Reimbursement from Manager - Class 1 | – | 15 | – | ||||||
Total Net Expenses | 982 | 789 | 1,741 | ||||||
Net Investment Income (Loss) | 4,190 | 3,396 | 394 | ||||||
Net Realized and Unrealized Gain (Loss) on Investments | |||||||||
Net realized gain (loss) from: | |||||||||
Investment transactions | – | (914 | ) | 28,868 | |||||
Investment transactions in affiliated securities | 7,449 | – | – | ||||||
Capital gain distribution received from affiliated securities | 9,218 | – | – | ||||||
Change in unrealized appreciation/depreciation of: | |||||||||
Investments | – | (759 | ) | (48,626 | ) | ||||
Investments in affiliated securities | (45,097 | ) | – | – | |||||
Net Realized and Unrealized Gain (Loss) on Investments | (28,430 | ) | (1,673 | ) | (19,758 | ) | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | (24,240 | ) | $ | 1,723 | $ | (19,364 | ) |
See accompanying notes.
27
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Diversified International | ||||||||||||
Amounts in thousands | Account | Equity Income Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 5,381 | $ | 3,783 | $ | 15,325 | $ | 12,452 | ||||
Net realized gain (loss) on Investments and Foreign currencies | 12,743 | 16,389 | 26,702 | 43,479 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (68,991 | ) | 48,996 | (78,310 | ) | 50,703 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (50,867 | ) | 69,168 | (36,283 | ) | 106,634 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (5,962 | ) | (5,043 | ) | (45,062 | ) | (36,612 | ) | ||||
Class 2 | (45 | ) | (25 | ) | (2,105 | ) | (1,741 | ) | ||||
Total Dividends and Distributions | (6,007 | ) | (5,068 | ) | (47,167 | ) | (38,353 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 25,975 | 17,953 | 58,053 | 47,257 | ||||||||
Class 2 | 757 | 582 | 2,423 | 1,516 | ||||||||
Shares issued in acquisition: | ||||||||||||
Class 1 | N/A | N/A | 138,113 | N/A | ||||||||
Class 2 | N/A | N/A | 728 | N/A | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 5,962 | 5,043 | 45,062 | 36,612 | ||||||||
Class 2 | 45 | 25 | 2,105 | 1,741 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (34,901 | ) | (37,771 | ) | (97,723 | ) | (102,262 | ) | ||||
Class 2 | (175 | ) | (448 | ) | (4,025 | ) | (3,073 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (2,337 | ) | (14,616 | ) | 144,736 | (18,209 | ) | |||||
Total Increase (Decrease) | (59,211 | ) | 49,484 | 61,286 | 50,072 | |||||||
Net Assets | ||||||||||||
Beginning of period | 294,843 | 245,359 | 600,098 | 550,026 | ||||||||
End of period | $ | 235,632 | $ | 294,843 | $ | 661,384 | $ | 600,098 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 1,569 | 1,163 | 2,255 | 1,886 | ||||||||
Class 2 | 45 | 36 | 94 | 62 | ||||||||
Shares issued in acquisition: | ||||||||||||
Class 1 | N/A | N/A | 5,656 | N/A | ||||||||
Class 2 | N/A | N/A | 30 | N/A | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 379 | 316 | 1,759 | 1,555 | ||||||||
Class 2 | 3 | 1 | 83 | 74 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (2,138 | ) | (2,444 | ) | (3,796 | ) | (4,154 | ) | ||||
Class 2 | (11 | ) | (29 | ) | (157 | ) | (125 | ) | ||||
Net Increase (Decrease) | (153 | ) | (957 | ) | 5,924 | (702 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $5,068 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $3,129. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $12,138 from net investment income and $26,215 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $15,365. |
See accompanying notes.
28
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Government & High Quality | ||||||||||||
Amounts in thousands | Bond Account | Income Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 5,612 | $ | 7,687 | $ | 7,066 | $ | 7,676 | ||||
Net realized gain (loss) on Investments | (4,919 | ) | (748 | ) | 3,115 | (365 | ) | |||||
Change in unrealized appreciation/depreciation of Investments | 1,170 | (2,359 | ) | (9,259 | ) | 3,846 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | 1,863 | 4,580 | 922 | 11,157 | ||||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (8,577 | ) | (9,806 | ) | (8,055 | ) | (9,413 | ) | ||||
Class 2 | (94 | ) | (89 | ) | (135 | ) | (117 | ) | ||||
Total Dividends and Distributions | (8,671 | ) | (9,895 | ) | (8,190 | ) | (9,530 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 23,115 | 27,787 | 13,235 | 18,162 | ||||||||
Class 2 | 587 | 380 | 1,233 | 822 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 8,577 | 9,806 | 8,055 | 9,413 | ||||||||
Class 2 | 94 | 89 | 135 | 117 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (47,180 | ) | (38,116 | ) | (55,735 | ) | (37,872 | ) | ||||
Class 2 | (287 | ) | (417 | ) | (947 | ) | (775 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (15,094 | ) | (471 | ) | (34,024 | ) | (10,133 | ) | ||||
Total Increase (Decrease) | (21,902 | ) | (5,786 | ) | (41,292 | ) | (8,506 | ) | ||||
Net Assets | ||||||||||||
Beginning of period | 244,141 | 249,927 | 223,063 | 231,569 | ||||||||
End of period | $ | 222,239 | $ | 244,141 | $ | 181,771 | $ | 223,063 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 2,427 | 2,786 | 1,306 | 1,738 | ||||||||
Class 2 | 62 | 38 | 121 | 78 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 922 | 1,002 | 808 | 915 | ||||||||
Class 2 | 10 | 9 | 14 | 11 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (4,946 | ) | (3,814 | ) | (5,447 | ) | (3,599 | ) | ||||
Class 2 | (30 | ) | (42 | ) | (93 | ) | (74 | ) | ||||
Net Increase (Decrease) | (1,555 | ) | (21 | ) | (3,291 | ) | (931 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $9,895 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $8,670. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $9,530 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $7,126. |
See accompanying notes.
29
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Amounts in thousands | LargeCap Growth Account | MidCap Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 53 | $ | 255 | $ | 1,610 | $ | 1,964 | ||||
Net realized gain (loss) on Investments | 18,641 | 10,067 | 91,599 | 86,890 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (25,599 | ) | 22,296 | (126,070 | ) | 44,727 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (6,905 | ) | 32,618 | (32,861 | ) | 133,581 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (8,746 | ) | (408 | ) | (71,720 | ) | (39,950 | ) | ||||
Class 2 | (173 | ) | (2 | ) | (2,314 | ) | (1,167 | ) | ||||
Total Dividends and Distributions | (8,919 | ) | (410 | ) | (74,034 | ) | (41,117 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 7,902 | 6,086 | 14,347 | 13,402 | ||||||||
Class 2 | 1,276 | 357 | 318 | 249 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 8,746 | 408 | 71,720 | 39,950 | ||||||||
Class 2 | 173 | 2 | 2,314 | 1,167 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (22,607 | ) | (15,126 | ) | (83,342 | ) | (144,828 | ) | ||||
Class 2 | (278 | ) | (154 | ) | (1,283 | ) | (1,127 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (4,788 | ) | (8,427 | ) | 4,074 | (91,187 | ) | |||||
Total Increase (Decrease) | (20,612 | ) | 23,781 | (102,821 | ) | 1,277 | ||||||
Net Assets | ||||||||||||
Beginning of period | 120,902 | 97,121 | 592,896 | 591,619 | ||||||||
End of period | $ | 100,290 | $ | 120,902 | $ | 490,075 | $ | 592,896 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 232 | 212 | 254 | 239 | ||||||||
Class 2 | 36 | 13 | 6 | 4 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 251 | 14 | 1,273 | 725 | ||||||||
Class 2 | 5 | – | 41 | 21 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (654 | ) | (525 | ) | (1,432 | ) | (2,600 | ) | ||||
Class 2 | (8 | ) | (6 | ) | (22 | ) | (20 | ) | ||||
Net Increase (Decrease) | (138 | ) | (292 | ) | 120 | (1,631 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $410 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $255. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $3,101 from net investment income and $38,016 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $1,810. |
See accompanying notes.
30
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Principal Capital Appreciation | ||||||||||||
Amounts in thousands | Account | Real Estate Securities Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 2,365 | $ | 1,680 | $ | 2,786 | $ | 1,870 | ||||
Net realized gain (loss) on Investments | 15,443 | 9,970 | 10,389 | 12,729 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (21,803 | ) | 18,186 | (19,411 | ) | (738 | ) | |||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (3,995 | ) | 29,836 | (6,236 | ) | 13,861 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (9,374 | ) | (1,876 | ) | (14,247 | ) | (17,563 | ) | ||||
Class 2 | (592 | ) | (84 | ) | (340 | ) | (267 | ) | ||||
Total Dividends and Distributions | (9,966 | ) | (1,960 | ) | (14,587 | ) | (17,830 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 3,936 | 3,469 | 11,906 | 10,799 | ||||||||
Class 2 | 1,928 | 799 | 1,190 | 804 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 9,374 | 1,876 | 14,247 | 17,563 | ||||||||
Class 2 | 592 | 84 | 340 | 267 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (26,219 | ) | (24,539 | ) | (26,990 | ) | (28,607 | ) | ||||
Class 2 | (1,344 | ) | (1,180 | ) | (393 | ) | (2,387 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (11,733 | ) | (19,491 | ) | 300 | (1,561 | ) | |||||
Total Increase (Decrease) | (25,694 | ) | 8,385 | (20,523 | ) | (5,530 | ) | |||||
Net Assets | ||||||||||||
Beginning of period | 162,998 | 154,613 | 157,445 | 162,975 | ||||||||
End of period | $ | 137,304 | $ | 162,998 | $ | 136,922 | $ | 157,445 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 140 | 135 | 611 | 506 | ||||||||
Class 2 | 66 | 31 | 61 | 39 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 320 | 72 | 737 | 880 | ||||||||
Class 2 | 21 | 3 | 17 | 13 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (902 | ) | (943 | ) | (1,376 | ) | (1,341 | ) | ||||
Class 2 | (47 | ) | (45 | ) | (20 | ) | (112 | ) | ||||
Net Increase (Decrease) | (402 | ) | (747 | ) | 30 | (15 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $1,960 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $1,694. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $2,749 from net investment income and $15,081 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $2,655. |
See accompanying notes.
31
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
SAM Conservative Balanced | ||||||||||||
Amounts in thousands | SAM Balanced Portfolio | Portfolio | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 16,876 | $ | 22,563 | $ | 5,257 | $ | 6,294 | ||||
Net realized gain (loss) on Investments | 26,614 | 36,186 | 4,053 | 7,429 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (78,727 | ) | 51,054 | (15,820 | ) | 7,897 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (35,237 | ) | 109,803 | (6,510 | ) | 21,620 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (49,734 | ) | (29,971 | ) | (11,929 | ) | (6,802 | ) | ||||
Class 2 | (8,765 | ) | (4,514 | ) | (1,454 | ) | (687 | ) | ||||
Total Dividends and Distributions | (58,499 | ) | (34,485 | ) | (13,383 | ) | (7,489 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 18,427 | 16,038 | 12,728 | 8,651 | ||||||||
Class 2 | 9,719 | 10,687 | 4,078 | 3,932 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 49,734 | 29,971 | 11,929 | 6,802 | ||||||||
Class 2 | 8,765 | 4,514 | 1,454 | 687 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (106,200 | ) | (105,666 | ) | (31,254 | ) | (33,614 | ) | ||||
Class 2 | (10,034 | ) | (11,933 | ) | (3,360 | ) | (2,832 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (29,589 | ) | (56,389 | ) | (4,425 | ) | (16,374 | ) | ||||
Total Increase (Decrease) | (123,325 | ) | 18,929 | (24,318 | ) | (2,243 | ) | |||||
Net Assets | ||||||||||||
Beginning of period | 788,538 | 769,609 | 199,064 | 201,307 | ||||||||
End of period | $ | 665,213 | $ | 788,538 | $ | 174,746 | $ | 199,064 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 1,191 | 1,048 | 1,055 | 722 | ||||||||
Class 2 | 630 | 702 | 345 | 328 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 3,318 | 1,991 | 1,026 | 573 | ||||||||
Class 2 | 591 | 303 | 127 | 59 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (6,846 | ) | (6,911 | ) | (2,587 | ) | (2,799 | ) | ||||
Class 2 | (654 | ) | (787 | ) | (282 | ) | (238 | ) | ||||
Net Increase (Decrease) | (1,770 | ) | (3,654 | ) | (316 | ) | (1,355 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $16,289 from net investment income and $18,196 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $22,562. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $5,416 from net investment income and $2,073 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $6,293. |
See accompanying notes.
32
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
SAM Conservative Growth | ||||||||||||
Amounts in thousands | Portfolio | SAM Flexible Income Portfolio | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 5,906 | $ | 9,148 | $ | 6,420 | $ | 7,953 | ||||
Net realized gain (loss) on Investments | 15,591 | 17,208 | 5,776 | 5,006 | ||||||||
Change in unrealized appreciation/depreciation of Investments | (43,484 | ) | 32,050 | (15,998 | ) | 4,463 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (21,987 | ) | 58,406 | (3,802 | ) | 17,422 | ||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (16,069 | ) | (7,782 | ) | (11,234 | ) | (7,879 | ) | ||||
Class 2 | (9,631 | ) | (4,215 | ) | (1,602 | ) | (807 | ) | ||||
Total Dividends and Distributions | (25,700 | ) | (11,997 | ) | (12,836 | ) | (8,686 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 21,584 | 15,368 | 8,441 | 13,221 | ||||||||
Class 2 | 9,393 | 8,409 | 7,676 | 5,463 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 16,069 | 7,782 | 11,234 | 7,879 | ||||||||
Class 2 | 9,631 | 4,215 | 1,602 | 807 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (38,633 | ) | (27,122 | ) | (42,935 | ) | (30,688 | ) | ||||
Class 2 | (9,529 | ) | (10,459 | ) | (4,450 | ) | (4,151 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 8,515 | (1,807 | ) | (18,432 | ) | (7,469 | ) | |||||
Total Increase (Decrease) | (39,172 | ) | 44,602 | (35,070 | ) | 1,267 | ||||||
Net Assets | ||||||||||||
Beginning of period | 347,133 | 302,531 | 217,745 | 216,478 | ||||||||
End of period | $ | 307,961 | $ | 347,133 | $ | 182,675 | $ | 217,745 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 1,136 | 827 | 668 | 1,032 | ||||||||
Class 2 | 491 | 455 | 613 | 429 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 847 | 420 | 921 | 625 | ||||||||
Class 2 | 514 | 231 | 132 | 64 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (2,012 | ) | (1,452 | ) | (3,390 | ) | (2,393 | ) | ||||
Class 2 | (494 | ) | (568 | ) | (353 | ) | (327 | ) | ||||
Net Increase (Decrease) | 482 | (87 | ) | (1,409 | ) | (570 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $4,842 from net investment income and $7,155 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $9,146. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $7,133 from net investment income and $1,553 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $7,952. |
See accompanying notes.
33
Statements of Changes in Net Assets | ||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||
Amounts in thousands | SAM Strategic Growth Portfolio | Short-Term Income Account | ||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||
December 31, | December 31, | December 31, | December 31, | |||||||||
2018 | 2017 | (a) | 2018 | 2017 | (b) | |||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 4,190 | $ | 6,555 | $ | 3,396 | $ | 3,319 | ||||
Net realized gain (loss) on Investments | 16,667 | 14,569 | (914 | ) | (99 | ) | ||||||
Change in unrealized appreciation/depreciation of Investments | (45,097 | ) | 32,616 | (759 | ) | 128 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | (24,240 | ) | 53,740 | 1,723 | 3,348 | |||||||
Dividends and Distributions to Shareholders | ||||||||||||
From net investment income and net realized gain on investments: | ||||||||||||
Class 1 | (12,164 | ) | (6,437 | ) | (3,250 | ) | (3,141 | ) | ||||
Class 2 | (9,663 | ) | (4,699 | ) | (71 | ) | (42 | ) | ||||
Total Dividends and Distributions | (21,827 | ) | (11,136 | ) | (3,321 | ) | (3,183 | ) | ||||
Capital Share Transactions | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 15,633 | 14,111 | 29,747 | 32,564 | ||||||||
Class 2 | 9,438 | 9,771 | 2,906 | 2,666 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 12,164 | 6,437 | 3,250 | 3,141 | ||||||||
Class 2 | 9,663 | 4,699 | 71 | 42 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (26,105 | ) | (26,278 | ) | (40,805 | ) | (47,948 | ) | ||||
Class 2 | (10,070 | ) | (9,804 | ) | (1,159 | ) | (2,494 | ) | ||||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | 10,723 | (1,064 | ) | (5,990 | ) | (12,029 | ) | |||||
Total Increase (Decrease) | (35,344 | ) | 41,540 | (7,588 | ) | (11,864 | ) | |||||
Net Assets | ||||||||||||
Beginning of period | 290,493 | 248,953 | 160,746 | 172,610 | ||||||||
End of period | $ | 255,149 | $ | 290,493 | $ | 153,158 | $ | 160,746 | ||||
Increase (Decrease) in Capital Shares | ||||||||||||
Shares sold: | ||||||||||||
Class 1 | 737 | 696 | 11,770 | 12,728 | ||||||||
Class 2 | 448 | 487 | 1,153 | 1,047 | ||||||||
Shares issued in reinvestment of dividends and distributions: | ||||||||||||
Class 1 | 589 | 320 | 1,300 | 1,232 | ||||||||
Class 2 | 474 | 236 | 28 | 17 | ||||||||
Shares redeemed: | ||||||||||||
Class 1 | (1,230 | ) | (1,298 | ) | (16,117 | ) | (18,737 | ) | ||||
Class 2 | (480 | ) | (489 | ) | (460 | ) | (976 | ) | ||||
Net Increase (Decrease) | 538 | (48 | ) | (2,326 | ) | (4,689 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $3,643 from net investment income and $7,493 from net realized gain on investments.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $6,555. |
(b) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $3,183 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $3,317. |
See accompanying notes.
34
Statements of Changes in Net Assets | ||||||
Principal Variable Contracts Funds, Inc. | ||||||
Amounts in thousands | SmallCap Account | |||||
Year Ended | Year Ended | |||||
December 31, | December 31, | |||||
2018 | 2017 | (a) | ||||
Operations | ||||||
Net investment income (loss) | $ | 394 | $ | 770 | ||
Net realized gain (loss) on Investments | 28,868 | 16,365 | ||||
Change in unrealized appreciation/depreciation of Investments | (48,626 | ) | 8,266 | |||
Net Increase (Decrease) in Net Assets Resulting from Operations | (19,364 | ) | 25,401 | |||
Dividends and Distributions to Shareholders | ||||||
From net investment income and net realized gain on investments: | ||||||
Class 1 | (13,133 | ) | (766 | ) | ||
Class 2 | (366 | ) | (7 | ) | ||
Total Dividends and Distributions | (13,499 | ) | (773 | ) | ||
Capital Share Transactions | ||||||
Shares sold: | ||||||
Class 1 | 12,588 | 8,334 | ||||
Class 2 | 866 | 497 | ||||
Shares issued in reinvestment of dividends and distributions: | ||||||
Class 1 | 13,133 | 766 | ||||
Class 2 | 366 | 7 | ||||
Shares redeemed: | ||||||
Class 1 | (39,263 | ) | (34,375 | ) | ||
Class 2 | (750 | ) | (666 | ) | ||
Net Increase (Decrease) in Net Assets from Capital Share Transactions | (13,060 | ) | (25,437 | ) | ||
Total Increase (Decrease) | (45,923 | ) | (809 | ) | ||
Net Assets | ||||||
Beginning of period | 214,040 | 214,849 | ||||
End of period | $ | 168,117 | $ | 214,040 | ||
Increase (Decrease) in Capital Shares | ||||||
Shares sold: | ||||||
Class 1 | 732 | 532 | ||||
Class 2 | 50 | 31 | ||||
Shares issued in reinvestment of dividends and distributions: | ||||||
Class 1 | 716 | 50 | ||||
Class 2 | 20 | 1 | ||||
Shares redeemed: | ||||||
Class 1 | (2,233 | ) | (2,177 | ) | ||
Class 2 | (43 | ) | (43 | ) | ||
Net Increase (Decrease) | (758 | ) | (1,606 | ) |
(a) | For the year ended December 31, 2017, dividends and distributions to shareholders totaled $773 from net investment income.As of December 31, 2017, undistributed (overdistributed) net investment income (loss) totaled $893. |
See accompanying notes.
35
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
1. Organization
Principal Variable Contracts Funds, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company and operates as a series fund in the mutual fund industry. The financial statements for Diversified International Account, Equity Income Account, Government & High Quality Bond Account, Income Account, LargeCap Growth Account, MidCap Account, Principal Capital Appreciation Account, Real Estate Securities Account, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, Short-Term Income Account, and SmallCap Account (known as the “Accounts”), are presented herein.
Each of the Accounts is an investment company and applies specialized accounting and reporting under Accounting Standards Codification Topic 946,Financial Services - Investment Companies. The Accounts have not provided financial support and are not contractually required to provide financial support to any investee.
Effective October 12, 2018, Equity IncomeAccount acquired all the assets and assumed all the liabilities of LargeCap ValueAccount pursuant to a plan of reorganization approved by shareholders October 1, 2018. The purpose of the acquisition was to combine two accounts managed by Principal Global Investors, LLC (the “Manager”) with similar investment objectives, principal policies, and risks. The acquisition was accomplished by a tax-free exchange of 5,827,000 shares from LargeCap Value Account for 5,686,000 shares valued at $138,841,000 of Equity Income Account at an approximate exchange rate of .98 for Class 1 and .98 for Class 2. The investment securities of LargeCap Value Account, with a fair value of approximately $136,333,000 and a cost of $141,343,000, and $2,514,000 cash were the primary assets acquired by Equity Income Account on October 12, 2018. For financial reporting purposes, assets received and shares issued by Equity Income Account were recorded at fair value; however, the cost basis of the investments received from LargeCap Value Account were maintained through the reorganization. The net assets of LargeCap Value Account and Equity Income Account immediately prior to the acquisition in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) were approximately $138,841,000 ($1,038,000 of accumulated realized gain) and $580,109,000, respectively. The aggregate net assets of Equity Income Account immediately following the acquisition were $718,950,000. In accordance with Sections 381-384 of the Internal Revenue Code, a portion of accumulated realized losses may be subject to limitation.
Assuming the acquisition had been completed on January 1, 2018, the beginning of the fiscal year for Equity IncomeAccount, Equity Income Account’s pro forma results of operations for the year ended December 31, 2018, would have been $17,543,000 of net investment income, $54,739,000 of net realized and unrealized loss on investments, and $37,196,000 of net decrease in net assets resulting from operations. Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of LargeCap Value Account that have been included in Equity Income Account’s statement of operations since October 12, 2018.
Both classes of shares for each of the Accounts represent interests in the same portfolio of investments and will vote together as a single class, except where otherwise required by law or as determined by the Fund’s Board of Directors. In addition, the Board of Directors declares separate dividends on each class of shares.
2. Significant Accounting Policies
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Accounts:
SecurityValuation.Certain of theAccounts, including SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio (collectively, the “SAM Portfolios”) invest in combinations of other series of the Fund and in class R-6 and Institutional shares of series of Principal Funds, Inc. which are valued at the closing net asset value per share of each respective fund on the day of valuation. In addition, certain of the Accounts invest in Principal Exchange-Traded Funds and other publicly traded investment funds, which are valued at the close of the exchange. The shares of the other series of the Fund, Principal Funds, Inc., Principal Exchange-Traded Funds, and other publicly traded investment funds are referred to as the “Underlying Funds”.
The Accounts (with the exception of the SAM Portfolios) value securities for which market quotations are readily available at fair value, which is determined using the last reported sale price. If no sales are reported, as is regularly the case for some securities traded over-the-counter, securities are valued using the last reported bid price or an evaluated bid price provided by a pricing service. Pricing services use modeling techniques that incorporate security characteristics such as current quotations by broker/dealers, coupon, maturity, quality, type of
36
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
2. Significant Accounting Policies (continued)
issue, trading characteristics, other yield and risk factors, and other market conditions to determine an evaluated bid price or, in the case of certain credit default swaps, a mean price provided by a pricing service. When reliable market quotations are not considered to be readily available, which may be the case, for example, with respect to restricted securities, certain debt securities, preferred stocks, and foreign securities, the investments are valued at their fair value as determined in good faith by the Manager under procedures established and periodically reviewed by the Fund’s Board of Directors.
The value of foreign securities used in computing the net asset value per share is generally determined as of the close of the foreign exchange where the security is principally traded. Events that occur after the close of the applicable foreign market or exchange but prior to the calculation of the Accounts’ net asset values are reflected in the Accounts’ net asset values and these securities are valued at fair value as determined in good faith by the Manager under procedures established and periodically reviewed by the Fund’s Board of Directors. 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 inAmerican depository receipts (“ADRs”), futures contracts, industry indices, general indices, and foreign currencies.
To the extent the Accounts invest in foreign securities listed on foreign exchanges which trade on days on which the Accounts do not determine net asset values, for example, weekends and other customary national U.S. holidays, the Accounts’ net asset values could be significantly affected on days when shareholders cannot purchase or redeem shares.
Certain securities issued by companies in emerging market countries may have more than one quoted valuation at any given point in time, sometimes referred to as a "local" price and a "premium" price. The premium price is often a negotiated price, which may not consistently represent a price at which a specific transaction can be effected. It is the policy of the Accounts to value such securities at prices at which it is expected those shares may be sold, and the Manager or any sub-advisor is authorized to make such determinations subject to such oversight by the Fund’s Board of Directors as may occasionally be necessary.
Currency Translation.Foreign holdings are translated to U.S. dollars using the exchange rate at the daily close of the New York Stock Exchange. The identified cost of the Accounts’ holdings is translated at approximate rates prevailing when acquired. Income and expense amounts are translated at approximate rates prevailing when received or paid, with daily accruals of such amounts reported at approximate rates prevailing at the date of valuation. Since the carrying amount of the foreign securities is determined based on the exchange rate and market values at the close of the period, it is not practicable to isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities during the year.
Net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between trade and settlement dates on security transactions, and the difference between the amount of dividends, interest income, interest expense, and foreign withholding taxes recorded on the books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized appreciation (depreciation) on translation of assets and liabilities in foreign currencies arise from changes in the exchange rate relating to assets and liabilities, other than investments in securities, purchased and held in non-U.S. denominated currencies.
The following Accounts held securities denominated in foreign currencies that exceeded 5% of net assets of the respective account as of December 31, 2018:
Diversified International Account | ||||
Euro | 20.7 | % | ||
Japanese Yen | 15.3 | |||
British Pound | 12.3 | |||
Swiss Franc | 8.6 | |||
Canadian Dollar | 7.6 |
Income and Investment Transactions.TheAccounts record investment transactions on a trade date basis. Trade date for senior floating rate interests purchased in the primary market is considered the date on which the loan allocations are determined. Trade date for senior floating rate interests purchased in the secondary market is the date on which the transaction is entered into. The identified cost basis has been used in determining the net realized gain or loss from investment transactions and unrealized appreciation or depreciation of investments. The Accounts record dividend income on the ex-dividend date, except dividend income from foreign securities whereby the ex-dividend date has passed; such dividends are recorded as soon as the Accounts are informed of the ex-dividend date. Interest income is recognized on an accrual basis. Discounts and premiums on securities are accreted/amortized, respectively, on the level yield method over the expected lives of the respective securities. The Accounts allocate all income and realized and unrealized gains or losses on a daily basis to each class of shares based upon the relative proportion of the value of shares outstanding of each class.
37
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
2. Significant Accounting Policies (continued)
Expenses.Expenses directly attributed to a particular account are charged to that account. Other expenses not directly attributed to a particular account are apportioned among the registered investment companies managed by the Manager.
Management fees are allocated daily to each class of shares based upon the relative proportion of the value of shares outstanding of each class. Expenses specifically attributable to a particular class are charged directly to such class and are included separately in the statementsof operations.
In addition to the expenses the Accounts bear directly, each of the Accounts may indirectly bear a pro rata share of the fees and expenses of the Underlying Funds in which they invest. Because the Underlying Funds have varied expense levels and each of the Accounts may own different proportions of the Underlying Funds at different times, the amount of expense incurred indirectly by each Account will vary. Expenses included in the statements of operations of the Accounts reflect the expenses of each Account and do not include any expenses associated with the Underlying Funds.
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 net operating losses, mortgage-backed securities, certain defaulted securities, expiring capital loss carry forwards, certain preferred securities, amortization of premiums and discounts, sales of Passive Foreign Investment Companies, losses deferred due to wash sales, partnership investments, Real Estate Investment Trusts (“REITs”), utilization of earnings and profits distributed to shareholders on redemption of shares, and foreign currency transactions. 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.
Distributions from REITs may be characterized as ordinary income, net capital gain, or a return of capital to the account. The proper characterization of REIT distributions is generally not known until after the end of each calendar year. As such, estimates are used in reporting the character of income and distributions for financial statement purposes. Real Estate Securities Account receives substantial distributions from holdings in REITs.
Federal Income Taxes.No provision for federal income taxes is considered necessary because each of the Accounts intends to qualify as a “regulated investment company” under the Internal Revenue Code and intends to distribute each year substantially all of its net investment income and realized capital gains to shareholders.
Management evaluates tax positions taken or expected to be taken in the course of preparing the Accounts’ tax returns to determine whether it is “more likely than not” that each tax position would be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more likely than not threshold would be recorded as a tax benefit or expense in the currentyear. During the yearended December 31, 2018, the Accounts did not record any such tax benefit or expense in the accompanying financial statements. The statute of limitations remains open for the fiscal years from 2015-2017.
Foreign Taxes.Certain of the Accounts are subject to foreign income taxes imposed by certain countries in which they invest. Foreign income taxes are accrued by the Accounts as a reduction of income. These amounts are shown as withholding tax on the statements of operations. In consideration of recent decisions rendered by European courts, certain of the Accounts have filed additional tax reclaims for taxes withheld in prior years. Due to the uncertainty and timing of these reclaims, a corresponding receivable will only be recorded when both the amount is known and there are no significant uncertainties regarding collectability.
Gains realized upon the disposition of certain foreign securities held by certain of the Accounts may be subject to capital gains tax, payable prior to repatriation of sale proceeds. The tax is computed on certain net realized gains and, if any, is shown on the statements of operations. Realized losses in excess of gains may be carried forward to offset future gains. In addition, the Accounts accrue an estimated deferred tax liability for future gains on certain foreign securities. Any accrued tax liability is shown on the statements of assets and liabilities. At December 31, 2018, none of the Accounts had a deferred tax liability.
Recent Accounting Pronouncements.Effective August 17, 2018, the U.S. Securities and Exchange Commission (“SEC”) approved a finalrule,Disclosure Update and Simplification. The SEC adopted amendments to certain disclosures that have become redundant or superseded in light of other SEC disclosure requirements, U.S. GAAP or changes in the information environment. As of December 31, 2018, the Accounts have adopted the new amendments.
38
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
2. Significant Accounting Policies (continued)
In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2018-13Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement, which amends and eliminates certain disclosure requirements for fair value as part of its framework project. The ASU is effective for annual and interim periods beginning after December 15, 2019. The early adoption of the removal or modification of disclosures and delay of adoption of the additional disclosures is permitted. As of December 31, 2018, the Accounts have adopted the removal and modification of disclosures.
In March 2017, the Financial Accounting Standards Board issued ASU No. 2017-08Premium Amortization on Purchased Callable Debt Securities, which amends the accounting standards to shorten the amortization period of certain purchased callable debt securities to the earliest call date. The ASU is effective for annual and interim periods beginning after December 15, 2018. The Accounts will adopt the new amendments for periods beginning after December 15, 2018.
3. Operating Policies
Borrowings.Pursuant to an exemptive order issued by the SEC, the Accounts and other registered investment companies managed by the Manager may participate in an interfund lending facility (“Facility”). The Facility allows the Accounts to borrow money from or loan money to the other participants. Loans under the Facility are made to handle unusual and/or unanticipated short-term cash requirements. Interest paid and received on borrowings is the average of the current repurchase agreement rate and the bank loan rate (the higher of (i) the Federal Funds Rate or (ii) the One Month London Inter-Bank Offered Rate (“LIBOR”) plus 1.00%). The interest income received is included in interest income on the statements of operations. The interest expense associated with these borrowings is included in other expenses on thestatements of operations.
During the year ended December 31, 2018, Accounts lending to the Facility were as follows (amounts in thousands):
Average Daily | Weighted Average | ||||
Amount Loaned | Annual Interest Rate | ||||
Diversified International Account | $ | 3 | 2.78 | % | |
Equity Income Account | 12 | 1.97 | |||
Government & High Quality Bond Account | 5 | 2.44 | |||
Income Account | 1 | 2.45 | |||
LargeCap Growth Account | 1 | 2.51 | |||
MidCap Account | 4 | 2.66 | |||
Short-Term Income Account | 25 | 2.51 | |||
SmallCap Account | 2 | 2.00 |
During theyear ended December 31, 2018, Accountsborrowing from the Facility were as follows (amounts in thousands):
Average Daily | Weighted Average | ||||
Amount Borrowed | Annual Interest Rate | ||||
Diversified International Account | $ | 17 | 2.02 | % | |
LargeCap Growth Account | 1 | 2.10 | |||
MidCap Account | 7 | 2.32 | |||
Real Estate Securities Account | 29 | 2.27 |
In addition, theAccounts participate with other registered investment companies managed by the Manager in an unsecured joint line of credit with a bank which allows the participants to borrow up to $100 million, collectively. Borrowings are made solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to each participant, based on its borrowings, at a rate equal to the higher of the Federal Funds Rate or the One Month LIBOR rate plus 1.00%. Additionally, a commitment fee is charged at an annual rate of .15% on the amount of the line of credit. During the year ended December 31, 2018, SmallCapAccount borrowed against the line of credit. The average outstanding balance for the liability during the year ended December 31, 2018 was $5,000 at a weighted average annual interest rate of 3.43% for SmallCap Account. The interest expense associated with these borrowings is included in other expenses on the statements of operations. There were no outstanding borrowings as of year ended December 31, 2018.
Counterparties.The Accounts may be exposed to counterparty risk, or the risk that another party with which the Accounts have unsettled or open transactions will fail to perform on their commitment. To the extent that unpaid amounts owed to the Accounts exceed a predetermined threshold agreed to with the counterparty, such counterparty shall advance collateral to the Accounts in the form of cash or cash equivalents equal in value to the unpaid amount owed to the Accounts. If the unpaid amount owed to the Accounts subsequently decreases, the Accounts would be required to return all or a portion of the collateral.
39
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
3. Operating Policies (continued)
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 also include collateral provisions. Collateral received and pledged are generally settled daily with each counterparty. As of December 31, no Accounts had financial assets and liabilities subject to Master Netting Agreements or similar agreements.
Illiquid Securities.Illiquid securities generally cannot be sold or disposed of in the ordinary course of business (within seven calendar days) at approximately the value at which each of the Accounts has valued the investments. This may have an adverse effect on each of the Accounts’ability to dispose of particular illiquid securities at fair value and may limit each of the Accounts’ability to obtain accurate marketquotations 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.
Mortgage-Dollar Rolls.Certain of the Accounts have entered into mortgage-dollar-roll transactions on “to-be-announced” (“TBA”) securities, in which the Accounts sell mortgage-backed securities and simultaneously agree to purchase similar securities in the future at a predetermined price. The proceeds of the securities sold in mortgage-dollar-roll transactions are invested in additional securities. The Accounts forgo principal and interest paid on the securities and are compensated by interest earned on the proceeds of the initial sale and by a lower price on the securities to be repurchased. The Accounts treat mortgage-dollar-roll transactions as purchases and sales; as such, these transactions may increase the Accounts’ portfolio turnover ratio. Amounts to be received or paid in connection with open mortgage-dollar-rolls are included in Investment securities sold and investment securities purchased on the statements of assets and liabilities.
Rebates.Subject to best execution, the Accounts may direct certain portfolio transactions to brokerage firms that, in turn, have agreed to rebate a portion of the related brokerage commission to the Accounts in cash. Commission rebates are included as a component of realizedgain from investment transactions in the statements of operations.
Repurchase Agreements.The Accounts may invest in repurchase agreements that are fully collateralized, typically by U.S. government or U.S. government agency securities. It is the Accounts’ policy that the counterparties’ custodian takes possession of the underlying collateral securities. The fair value of the collateral is at all times at least equal to the total amount of the repurchase obligation. In the event of default on the obligation to repurchase, the Accounts have the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. In the event the seller of a repurchase agreement defaults, the Accounts could experience delays in the realization of the collateral.
Restricted Securities.Certain of the Accounts may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult.
Senior Floating Rate Interests.TheAccounts may invest in senior floating rate interests (bank loans). Senior floating rate interests typically hold the most senior position in the capital structure of a business entity (the “Borrower”), are secured by specific collateral and have a claim on the assets and/or stock of the Borrower that is senior to that held by subordinated debtholders and stockholders of the Borrower. Senior floating rate interests are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the senior floating rate interest. Borrowers of senior floating rate interests are typically rated below-investment-grade, which means they are more likely to default than investment-grade loans. A default could lead to non-payment of income which would result in a reduction of income to the account and there can be no assurance that the liquidation of any collateral would satisfy the Borrower’s obligation in the event of non-payment of scheduled interest or principal payments, or that such collateral could be readily liquidated.
Senior floating rate interests pay interest at rates which are periodically reset by reference to a base lending rate plus a spread. These base lending rates are generally the prime rate offered by a designated U.S. bank or LIBOR rate.
40
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
3. Operating Policies (continued)
Senior floating rate interests generally are subject to mandatory and/or optional prepayment. Because of these mandatory prepayment conditions and because there may be significant economic incentives for the Borrower to repay, prepayments of senior floating rate interests may occur. As a result, the actual remaining maturity of senior floating rate interests may be substantially less than stated maturities shown in the schedules of investments.
In connection with the senior floating rate interests, the Accounts may also enter into unfunded loan commitments (“commitments”). All or a portion of the commitments may be unfunded. The Accounts are obligated to fund these commitments at the Borrower’s discretion. Therefore, the Accounts must have funds sufficient to cover its contractual 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 commitments on the statements of assets andliabilities. As ofDecember 31, 2018, the Accounts had no commitments outstanding.
To Be Announced Securities.The Accounts may trade portfolio securities on a TBA or when-issued basis. In a TBA or when-issued transaction, the Accounts commit to purchase or sell securities for which all specific information is not known at the time of the trade. Securities purchased on a TBA or when-issued basis are not settled until they are delivered to the Accounts, normally 15 to 30 days later. These transactions are subject to market fluctuations and their current value is determined in the same manner as for other portfolio securities.
Underlying Funds.The performance and risks of each SAM Portfolio (singly, “a fund of funds” and collectively, “the funds of funds”) directly correspond to the performance and risks of the Underlying Funds in which the fund of funds invest. By investing in many Underlying Funds, the funds of funds have partial exposure to the risks of many different areas of the market. The more a fund of funds allocates to stock funds, the greater the expected risk.
An Underlying Fund to a fund of funds may experience relatively large redemptions or purchases as the fund of funds periodically reallocates or rebalances its assets. These transactions may accelerate the realization of taxable income if sales of portfolio securities result in gains and could increase transaction costs. In addition, when a fund of funds reallocates or redeems significant assets away from an Underlying Fund, the loss of assets to the Underlying Fund could result in increased expense ratios for that fund.
The Manager is the advisor to the Fund, Principal Funds, Inc., and some of the Underlying Funds. The Manager is committed to minimizing the potential impact of Underlying Fund risk on Underlying Funds to the extent consistent with pursuing the investment objectives of the fund of funds which it manages. Each may face conflicts of interest in fulfilling its responsibilities to all such funds.
As ofDecember 31, 2018, series of the Fund owned the following percentages, in the aggregate, of the outstanding shares of the Accounts listed below:
Total Percentage of | |||
Account | Outstanding Shares Owned | ||
Equity Income Account | 31.06 | % | |
Government & High Quality Bond Account | 39.90 | ||
Income Account | 92.64 | ||
Short-Term Income Account | 17.57 |
U.S. Government Agencies or Government-Sponsored Enterprises.Certain of the Accounts may invest in U.S. Government agencies orgovernment-sponsored enterprises. U.S. Government securities are obligations of, and in certain cases, guaranteed by, the U.S. Government or its agencies. The U.S. Government does not guarantee the net asset value of the Accounts’ shares. Some U.S. Government securities such as treasury bills, notes and bonds, and securities guaranteed by the Government National Mortgage Association (“GNMA”) are supported by the full faith and credit of the U.S. Government. Other securities, such as those of the Federal Home Loan Bank are supported by the right of the issuer to borrow from the U.S. Department of the Treasury. Still other securities, such as those of the Federal National Mortgage Association (“FNMA”), are supported by the discretionary authority of the U.S. Government to purchase the agency’s obligations.
Government related guarantors (those not backed by the full faith and credit of the U.S. Government) include 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 FNMApurchases 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.
41
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
4. Fair Valuation
Fair value is defined as the price that the Accounts 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 Accounts may use one or more of the following approaches: market, income and/or cost. A hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Accounts. Unobservable inputs are inputs that reflect the Account’s own estimates about the estimates market participants would use in pricing the asset or liability developed based on the best information available in thecircumstances.
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, prepayment speeds, credit risk, etc.). Investments which are generally included in this category include certain foreign equities, corporate bonds, senior floating rate interests, municipal bonds, and U.S. Government and Government Agency Obligations.
Level 3 – Significant unobservable inputs (including the Accounts’assumptions in determining the fair value of investments). Investments which may be included in this category include certain common stocks, corporate bonds, mortgage backed securities or senior floating rateinterests.
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 Accounts in determining fair value is greatest for instruments categorized in Level 3.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Fair value is a market based measure considered from the perspective of a market participant who holds the asset rather than an entity specific measure. Therefore, even when market assumptions are not readily available, the Accounts’ own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. The Accounts use prices and inputs that are current as of the measurement date, when available.
Investments which are included in the Level 3 category may be valued using indicative quoted prices from brokers and dealers participating in the market for these investments. These investments are classified as Level 3 investments due to the lack of market transparency and market corroboration to support these quoted prices. Valuation models may be used as the pricing source for other investments classified as Level 3. Valuation models rely on one or more significant unobservable inputs such as 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 Directors. 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 Directors. 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
42
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
4. Fair Valuation (continued)
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 Accounts (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 thoseinstruments.
The following is a summary of the inputs used as of December 31, 2018 in valuing the Accounts’securities carried at value (amounts shown in thousands):
Level 2 - Other | ||||||||
Level 1 - Quoted | Significant Observable | Level 3 - Significant | ||||||
Account | Prices | Inputs | Unobservable Inputs Totals (Level 1,2,3) | |||||
Diversified International Account | ||||||||
Common Stocks | ||||||||
Basic Materials | $ | 1,442 | $ | 10,260 | $ | — | $ | 11,702 |
Communications | 2,549 | 12,195 | — | 14,744 | ||||
Consumer, Cyclical | 4,908 | 35,692 | — | 40,600 | ||||
Consumer, Non-cyclical | 2,147 | 37,797 | — | 39,944 | ||||
Energy | 2,734 | 15,509 | — | 18,243 | ||||
Financial | 10,941 | 50,201 | — | 61,142 | ||||
Industrial | 3,068 | 19,548 | — | 22,616 | ||||
Technology | — | 18,943 | — | 18,943 | ||||
Utilities | — | 3,935 | — | 3,935 | ||||
Investment Companies | 1,664 | — | — | 1,664 | ||||
Preferred Stocks | ||||||||
Diversified | — | 886 | — | 886 | ||||
Total investments in securities $ | 29,453 | $ | 204,966 | $ | — | $ | 234,419 | |
Equity Income Account | ||||||||
Common Stocks* | 649,647 | — | — | 649,647 | ||||
Investment Companies | 8,817 | — | — | 8,817 | ||||
Total investments in securities $ | 658,464 | $ | — | $ | — | $ | 658,464 | |
Government & High Quality Bond Account | ||||||||
Bonds* | — | 66,595 | — | 66,595 | ||||
Investment Companies | 1,278 | — | — | 1,278 | ||||
U.S. Government & Government Agency Obligations* | — | 155,215 | — | 155,215 | ||||
Total investments in securities $ | 1,278 | $ | 221,810 | $ | — | $ | 223,088 | |
Income Account | ||||||||
Bonds* | — | 109,688 | — | 109,688 | ||||
Common Stocks | ||||||||
Energy | 391 | — | — | 391 | ||||
Industrial | — | — | 4,735 | 4,735 | ||||
Utilities | — | — | 284 | 284 | ||||
Convertible Bonds* | — | 1,175 | — | 1,175 | ||||
Investment Companies | 1,795 | — | — | 1,795 | ||||
Senior Floating Rate Interests* | — | 1,196 | — | 1,196 | ||||
U.S. Government & Government Agency Obligations* | — | 61,658 | — | 61,658 | ||||
Total investments in securities $ | 2,186 | $ | 173,717 | $ | 5,019 | $ | 180,922 | |
LargeCap Growth Account | ||||||||
Common Stocks* | 97,684 | — | — | 97,684 | ||||
Investment Companies | 2,326 | — | — | 2,326 | ||||
Total investments in securities $ | 100,010 | $ | — | $ | — | $ | 100,010 |
43
Notes to Financial Statements | ||||||||
Principal Variable Contracts Funds, Inc. | ||||||||
December 31, 2018 | ||||||||
4. Fair Valuation (continued) | ||||||||
Level 2 - Other | ||||||||
Level 1 - Quoted | Significant Observable | Level 3 - Significant | ||||||
Account | Prices | Inputs | Unobservable Inputs Totals (Level 1,2,3) | |||||
MidCap Account | ||||||||
Common Stocks* | $ | 487,713 | $ | — | $ | — | $ | 487,713 |
Investment Companies | 4,942 | — | — | 4,942 | ||||
Total investments in securities $ | 492,655 | $ | — | $ | — | $ | 492,655 | |
Principal Capital Appreciation Account | ||||||||
Common Stocks* | 133,358 | — | — | 133,358 | ||||
Investment Companies | 2,989 | — | — | 2,989 | ||||
Total investments in securities $ | 136,347 | $ | — | $ | — | $ | 136,347 | |
Real Estate Securities Account | ||||||||
Common Stocks* | 135,519 | — | — | 135,519 | ||||
Investment Companies | 911 | — | — | 911 | ||||
Total investments in securities $ | 136,430 | $ | — | $ | — | $ | 136,430 | |
SAM Balanced Portfolio | ||||||||
Investment Companies | 664,593 | — | — | 664,593 | ||||
Total investments in securities $ | 664,593 | $ | — | $ | — | $ | 664,593 | |
SAM Conservative Balanced Portfolio | ||||||||
Investment Companies | 174,647 | — | — | 174,647 | ||||
Total investments in securities $ | 174,647 | $ | — | $ | — | $ | 174,647 | |
SAM Conservative Growth Portfolio | ||||||||
Investment Companies | 307,664 | — | — | 307,664 | ||||
Total investments in securities $ | 307,664 | $ | — | $ | — | $ | 307,664 | |
SAM Flexible Income Portfolio | ||||||||
Investment Companies | 182,558 | — | — | 182,558 | ||||
Total investments in securities $ | 182,558 | $ | — | $ | — | $ | 182,558 | |
SAM Strategic Growth Portfolio | ||||||||
Investment Companies | 254,815 | — | — | 254,815 | ||||
Total investments in securities $ | 254,815 | $ | — | $ | — | $ | 254,815 | |
Short-Term Income Account | ||||||||
Bonds* | — | 146,743 | — | 146,743 | ||||
Investment Companies | 4,856 | — | — | 4,856 | ||||
U.S. Government & Government Agency Obligations* | — | 4,181 | — | 4,181 | ||||
Total investments in securities $ | 4,856 | $ | 150,924 | $ | — | $ | 155,780 | |
SmallCap Account | ||||||||
Common Stocks* | 165,274 | — | — | 165,274 | ||||
Investment Companies | 1,443 | — | — | 1,443 | ||||
Total investments in securities $ | 166,717 | $ | — | $ | — | $ | 166,717 |
*For additional detail regarding sector classifications, please see the Schedule of Investments.
Certain detailed information is provided for thoseAccounts 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):
Fair Value as of | ||||||||
Account | Asset Type | December 31, 2018 | Valuation Technique | Unobservable Input | Input Valuations | |||
Income Account | Common Stock | $ 4,735 Enterprise Valuation Model* | EBITDA Multiples | 0.95 – 1.15 | x | |||
Common Stock | 284 Indicative Market Quotations | Broker Quote | $ | 140.00 | ||||
$ | 5,019 |
*As of December 31, 2018, a Level 3 security changed its valuation approach from an enterprise valuation model with comparable company and discounted cash flow techniques to an enterprise valuation model with comparable company technique. The change in the valuation approach is driven by the Valuation Committee’s decision that prospective financial information is not updated timely to account for external market factors. The appropriateness of the fair value of this security is monitored by the Valuation Committee.
44
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
4. Fair Valuation (continued)
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):
Accrued | Net Change | ||||||||||||||||||
Discounts/ | in Unrealized | ||||||||||||||||||
Premiums | Appreciation/ | ||||||||||||||||||
Value | Realized | and Change | Transfers Transfers | Value | (Depreciation) on | ||||||||||||||
December | Gain/ | in Unrealized | Proceeds | into | Out of | December 31, | Investments Held at | ||||||||||||
Account | 31, 2017 | (Loss) | Gain/ (Loss) | Purchases | from Sales | Level 3* | Level 3** | 2018 | December 31, 2018 | ||||||||||
Income Account | |||||||||||||||||||
Common Stock | |||||||||||||||||||
Industrial | $ | 3,630 | $ | — | $ | 1,105 | $ | — | $ | — | $ | — | $ | — | $ | 4,735 | $ | 1,105 | |
Utilities | — | — | 62 | 222 | — | — | — | 284 | 62 | ||||||||||
Total | $ | 3,630 | $ | — | $ | 1,167 | $ | 222 | $ | — | $ | — | $ | — | $ | 5,019 | $ | 1,167 |
*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 services
**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
At the end of the year, there were no other Accounts which had a significant Level 3 balance. During the year, there were no significant purchases, sales, or transfers into or out of Level 3, except as noted above.
5. Management Agreement and Transactions with Affiliates
Management Services.The Accounts have agreed to pay investment advisory and management fees to the Manager computed at an annual percentage rate of each account’s average daily net assets. A portion of the management fee is paid by the Manager to the sub-advisor of each of the Accounts, some of which are affiliates of the Manager. The annual rate paid by the SAM Portfolios is based upon the aggregate average daily net assets (“aggregate net assets”) of the SAM Portfolios. The investment advisory and management fee schedule for the SAM Portfolios is .25% of aggregate net assets up to the first $1 billion and .20% of aggregate net assets over $1 billion. The annual rates used in this calculation for each of the other Accounts are as follows:
Net Assets of Accounts (in millions) | |||||||||||||
First $100 | Next $100 | Next $100 | Next $100 | Thereafter | |||||||||
Equity Income Account | .60 | % | .55 | % | .50 | % | .45 | % | .40 | % | |||
MidCapAccount | .65 | .60 | .55 | .50 | .45 | ||||||||
Real Estate Securities Account | .90 | .85 | .80 | .75 | .70 | ||||||||
SmallCap Account | .85 | .80 | .75 | .70 | .65 | ||||||||
Net Assets of Account (in millions) | |||||||||||||
First $250 | Next $250 | Next $250 | Next $250 | Thereafter | |||||||||
Diversified International Account | .85 | % | .80 | % | .75 | % | .70 | % | .65 | % | |||
Net Assets of Account (in millions) | |||||||||||||
First | Next | Over | |||||||||||
$ | 200 | $ | 300 | $ | 500 | ||||||||
Short-Term Income Account | .50 | % | .45 | % | .40 | % | |||||||
Net Assets of Account (in millions) | |||||||||||||
First | Over | ||||||||||||
$ | 500 | $ | 500 | ||||||||||
Principal Capital Appreciation Account | .625 | % | .50 | % | |||||||||
Net Assets of Account | |||||||||||||
First $500 | Next $500 | Next $1 | Next $1 | Over $3 | |||||||||
million | million | billion | billion | billion | |||||||||
LargeCap Growth Account | .68 | % | .63 | % | .61 | % | .56 | % | .51 | % |
45
Notes to Financial Statements | |
Principal Variable Contracts Funds, Inc. | |
December 31, 2018 | |
5. Management Agreement and Transactions with Affiliates (continued) |
Net Assets of Accounts (in billions) | ||||
First $2 | Over $2 | |||
Government & High Quality Bond Account | .50 | % | .45 | % |
Income Account | .50 | .45 |
The Manager contractually agreed to limit the expenses (including acquired fund fees and expenses, but excluding interest expense, expenses related to fund investments, and other extraordinary expenses) for certain classes of shares of certain of the Accounts. The reductions and reimbursements are in amounts that maintain total operating expenses at or below certain limits. The limits are expressed as a percentage of average daily net assets attributable to each class of shares on an annualized basis during the reporting period. The operating expense limits, which expire April 30, 2019, are as follows:
Period from January 1, 2018 | ||||
through December 31, 2018 | ||||
Class 1 | Class 2 | |||
SAM Balanced Portfolio | .86 | % | 1.11 | % |
SAM Conservative Balanced Portfolio | .84 | 1.09 | ||
SAM Conservative Growth Portfolio | .99 | 1.24 | ||
SAM Strategic Growth Portfolio | .99 | 1.24 |
The Manager has contractually agreed to reduce Short-Term Income Account’s expenses by .01% through the period ended April 30, 2019.
Amounts owed to the Accounts under the terms of the expense limitation agreements are reflected in the statements of assets and liabilities as expense reimbursement from Manager and are settled periodically.
Distribution Fees.Class 2 shares of the Accounts bear distribution fees. The fee is computed at an annual rate of the average daily net assets attributable to Class 2 shares of each of the Accounts. Distribution fees are paid to Principal Funds Distributor, Inc., (an affiliate of the Manager) the principal distributor of theAccounts.Aportion of the distribution fees may be paid to other selling dealers for providing certain services. The annual distribution fee rate is .25%.
Chief Compliance Officer Expenses.The Accounts pay certain expenses associated with the Chief Compliance Officer (“CCO”). This expense is allocated based on the relative net assets of each account and is shown on the statements of operations.
Affiliated Ownership.AtDecember 31, 2018, Principal Life Insurance Company (an affiliate of the Manager) and/or one or more separate accounts sponsored by Principal Life Insurance Company owned shares of the Accounts as follows (amounts in thousands):
Class 1 | Class 2 | |
Diversified International Account | 16,879 | 79 |
Equity Income Account | 14,756 | 189 |
Government & High Quality Bond Account | 13,531 | 193 |
Income Account | 507 | 141 |
LargeCap Growth Account | 3,188 | 54 |
MidCapAccount | 9,607 | N/A |
Principal Capital Appreciation Account | 4,317 | 84 |
Real Estate Securities Account | 7,451 | 183 |
SAM Balanced Portfolio | 37,391 | 953 |
SAM Conservative Balanced Portfolio | 13,645 | 550 |
SAM Conservative Growth Portfolio | 9,511 | 635 |
SAM Flexible Income Portfolio | 12,688 | 1,066 |
SAM Strategic Growth Portfolio | 7,166 | 332 |
Short-Term Income Account | 47,640 | 1,383 |
SmallCap Account | 11,192 | 91 |
6. Investment Transactions |
For the year ended December 31, 2018, the cost of investment securities purchased and proceeds from investment securities sold (not including short-term investments and U.S. government securities) by the Accounts were as follows (amounts in thousands):
Purchases | Sales | |||
Diversified International Account | $ | 164,306 | $ | 165,612 |
Equity Income Account | 80,891 | 101,140 | ||
Government & High Quality Bond Account | 35,654 | 43,957 |
46
Notes to Financial Statements | |||||
Principal Variable Contracts Funds, Inc. | |||||
December 31, 2018 | |||||
6. Investment Transactions (continued) | |||||
Purchases | Sales | ||||
Income Account | 15,291 | 39,205 | |||
LargeCap Growth Account | 91,997 | 106,893 | |||
MidCapAccount | 138,979 | 208,065 | |||
Principal Capital Appreciation Account | 69,089 | 87,421 | |||
Real Estate Securities Account | 25,522 | 36,403 | |||
SAM Balanced Portfolio | 134,985 | 190,870 | |||
SAM Conservative Balanced Portfolio | 36,907 | 47,113 | |||
SAM Conservative Growth Portfolio | 91,586 | 93,058 | |||
SAM Flexible Income Portfolio | 39,818 | 64,355 | |||
SAM Strategic Growth Portfolio | 108,900 | 107,389 | |||
Short-Term Income Account | 72,670 | 79,934 | |||
SmallCap Account | 92,191 | 117,041 |
For the year ended December 31, 2018, the cost of U.S. government securities purchased and proceeds from U.S. government securities sold (not including short-term investments) by the Accounts were as follows (amounts in thousands):
Purchases | Sales | ||||||
Government & High Quality Bond Account | $ | 4,434 | $ | 5,887 | |||
Income Account | 2,939 | 4,968 | |||||
Short-Term Income Account | 3,300 | 485 | |||||
7. Federal Tax Information |
Distributions to Shareholders.The federal income tax character of distributions paid for the years ended December 31, 2018 and December 31, 2017 were as follows (amounts in thousands):
Long-Term | ||||||||||||||
Ordinary Income | Capital Gain* | Section 1250 Gain^ | ||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||
Diversified International Account | $ | 6,007 | $ | 5,068 | $ | — $ | — $ | — $ | — | |||||
Equity Income Account | 13,448 | 14,151 | 33,719 | 24,202 | — | — | ||||||||
Government & High Quality Bond | ||||||||||||||
Account | 8,671 | 9,895 | — | — | — | — | ||||||||
Income Account | 8,190 | 9,530 | — | — | — | — | ||||||||
LargeCap Growth Account | 255 | 410 | 8,664 | — | — | — | ||||||||
MidCapAccount | 1,796 | 3,101 | 72,238 | 38,016 | — | — | ||||||||
Principal Capital Appreciation Account | 1,753 | 1,960 | 8,213 | — | — | — | ||||||||
Real Estate Securities Account | 2,980 | 2,749 | 11,385 | 14,834 | 222 | 247 | ||||||||
SAM Balanced Portfolio | 24,236 | 16,564 | 34,263 | 17,921 | — | — | ||||||||
SAM Conservative Balanced Portfolio | 6,540 | 5,473 | 6,843 | 2,016 | — | — | ||||||||
SAM Conservative Growth Portfolio | 10,266 | 4,876 | 15,434 | 7,121 | — | — | ||||||||
SAM Flexible Income Portfolio | 8,176 | 7,133 | 4,660 | 1,553 | — | — | ||||||||
SAM Strategic Growth Portfolio | 7,336 | 3,694 | 14,491 | 7,442 | — | — | ||||||||
Short-Term Income Account | 3,321 | 3,183 | — | — | — | — | ||||||||
SmallCap Account | 1,441 | 773 | 12,058 | — | — | — |
*The Accounts designate these distributions as long-term capital gain dividends per IRC Sec. 852 (b)(3)(C) in the 20-percent group (which may be taxed at a 20-percent rate, a 15-percent rate or a 0-percent rate, depending on the shareholder’s taxable income).
^Unrecaptured Section 1250 gains are gains from the sale of depreciable property that are subject to a maximum tax rate of 25%.
Certain Accounts may also utilize earnings and profits distributed to shareholders on redemptions of shares as part of the dividends paid deduction.
For U.S. federal income tax purposes, short-term capital gain distributions are considered ordinary income distributions.
Distributable Earnings.As of December 31, 2018, the components of distributable earnings on a federal tax basis were as follows (amounts in thousands):
Total | ||||||||||||
Undistributed Undistributed | Net Unrealized | Other | Accumulated | |||||||||
Ordinary | Long-Term | Accumulated | Appreciation | Temporary | Earnings | |||||||
Income | Capital Gains | Losses | (Depreciation) | Differences* | (Deficit) | |||||||
Diversified International Account | $ | 4,108 | $ | 12,521 | $ | — | $ | 2,524 | $ | — | $ | 19,153 |
47
Notes to Financial Statements | ||||||||||||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
7. Federal Tax Information (continued) | ||||||||||||||||||||
Total | ||||||||||||||||||||
Undistributed | Undistributed | Net Unrealized | Other | Accumulated | ||||||||||||||||
Ordinary | Long-Term | Accumulated | Appreciation | Temporary | Earnings | |||||||||||||||
Income | Capital Gains | Losses | (Depreciation) | Differences* | (Deficit) | |||||||||||||||
Equity Income Account | 17,075 | 16,183 | — | 182,774 | — | 216,032 | ||||||||||||||
Government & High Quality Bond Account | 6,456 | — | (8,862 | ) | (7,132 | ) | (39 | ) | (9,577 | ) | ||||||||||
Income Account | 7,635 | — | (19 | ) | 1,261 | 70 | 8,947 | |||||||||||||
LargeCap Growth Account | 53 | 18,636 | — | 6,881 | — | 25,570 | ||||||||||||||
MidCapAccount | 1,526 | 79,299 | — | 100,053 | — | 180,878 | ||||||||||||||
Principal Capital Appreciation Account | 2,596 | 13,120 | — | 40,099 | — | 55,815 | ||||||||||||||
Real Estate Securities Account | 3,463 | ^ | 9,689 | — | 15,761 | — | 28,913 | |||||||||||||
SAM Balanced Portfolio | 17,360 | 24,097 | — | 41,777 | — | 83,234 | ||||||||||||||
SAM Conservative Balanced Portfolio | 5,314 | 3,637 | — | 3,247 | — | 12,198 | ||||||||||||||
SAM Conservative Growth Portfolio | 5,905 | 15,505 | — | 9,048 | — | 30,458 | ||||||||||||||
SAM Flexible Income Portfolio | 6,505 | 5,218 | — | 732 | — | 12,455 | ||||||||||||||
SAM Strategic Growth Portfolio | 4,270 | 15,096 | — | (6,605 | ) | — | 12,761 | |||||||||||||
Short-Term Income Account | 3,393 | — | (989 | ) | (1,224 | ) | (7 | ) | 1,173 | |||||||||||
SmallCap Account | 6,339 | 23,412 | — | (6,178 | ) | — | 23,573 | |||||||||||||
*Represents book-to-tax accounting differences. | ||||||||||||||||||||
^Undistributed Ordinary Income reported includes $327 of undistributed Section 1250 Capital Gains. |
Capital Loss Carryforwards.For federal income tax purposes, capital loss carryforwards are losses that can be used to offset future capital gains of the Accounts. At December 31, 2018, the Accounts had approximate net capital loss carryforwards as follows (amounts in thousands):
Short-Term | Long-Term | Total | |||||||
Government & High Quality Bond | |||||||||
Account | $ | 502 | $ | 8,360 | $ | 8,862 | |||
Income Account | 19 | — | 19 | ||||||
Short-Term Income Account | 305 | 684 | 989 |
Capital losses generated in taxable years beginning after the enactment date of the Regulated Investment Company Modernization Act of 2010 on December 22, 2010, will be carried forward with no expiration and with the character of the loss retained.
As of December 31, 2018, the following Accounts had expired and utilized capital loss carryforwards as follows (amounts in thousands):
Expired | Utilized | |||
Income Account | $ | 1,584 | $ | 2,491 |
Late-Year Losses.A regulated investment company may elect to treat any portion of its qualified late-year loss as arising on the first day of the next taxable year. Qualified late-year losses are certain capital and ordinary losses which occur during the portion of the account’s taxable year subsequent to October 31. For the taxable year ended December 31, 2018, the Accounts do not plan to defer any late-year losses.
Reclassification of Capital Accounts.The Accounts may record reclassifications in their capital accounts. These reclassifications have no impact on the total net assets of the Accounts. The reclassifications are a result of permanent differences between U.S. GAAP and tax accounting. Adjustments are made to reflect the impact these items have on current and future distributions to shareholders. Therefore, the source of the Accounts’ distributions may be shown in the accompanying statements of changes in net assets as from net investment income and net realized gains on investments or from capital depending on the type of book and tax differences that exist. For the year ended December 31, 2018, the Accounts recorded reclassifications as follows (amounts in thousands):
Total Distributable | Capital Shares and | |||||||
Earnings (Loss) | Additional Paid-in-Capital | |||||||
Equity Income Account | $ | (6,455 | ) | $ | 6,455 | |||
Income Account | 1,584 | (1,584 | ) | |||||
MidCapAccount | (10,946 | ) | 10,946 | |||||
Principal Capital Appreciation Account | (2,184 | ) | 2,184 | |||||
Real Estate Securities Account | 59 | (59 | ) |
48
Notes to Financial Statements
Principal Variable Contracts Funds, Inc.
December 31, 2018
7. Federal Tax Information (continued)
Federal Income Tax Basis.At December 31, 2018, the net federal income tax unrealized appreciation (depreciation) and federal tax cost of investments held by the Accounts were as follows (amounts in thousands):
Cost for Federal | ||||||||||||
Unrealized | Unrealized | Net Unrealized | Income Tax | |||||||||
Appreciation | (Depreciation) | Appreciation/(Depreciation) | Purposes | |||||||||
Diversified International Account | $ | 25,797 | $ | (23,256 | ) | $ | 2,541 | $ | 231,878 | |||
Equity Income Account | 221,626 | (38,853 | ) | 182,773 | 475,691 | |||||||
Government & High Quality Bond Account | 1,843 | (8,975 | ) | (7,132 | ) | 230,220 | ||||||
Income Account | 6,404 | (5,143 | ) | 1,261 | 179,661 | |||||||
LargeCap Growth Account | 15,060 | (8,179 | ) | 6,881 | 93,129 | |||||||
MidCapAccount | 128,343 | (28,289 | ) | 100,054 | 392,601 | |||||||
Principal Capital Appreciation Account | 47,160 | (7,062 | ) | 40,098 | 96,249 | |||||||
Real Estate Securities Account | 21,771 | (6,010 | ) | 15,761 | 120,669 | |||||||
SAM Balanced Portfolio | 64,170 | (22,392 | ) | 41,778 | 622,815 | |||||||
SAM Conservative Balanced Portfolio | 10,327 | (7,081 | ) | 3,246 | 171,401 | |||||||
SAM Conservative Growth Portfolio | 24,916 | (15,868 | ) | 9,048 | 298,616 | |||||||
SAM Flexible Income Portfolio | 8,505 | (7,774 | ) | 731 | 181,827 | |||||||
SAM Strategic Growth Portfolio | 12,095 | (18,699 | ) | (6,604 | ) | 261,419 | ||||||
Short-Term Income Account | 556 | (1,779 | ) | (1,223 | ) | 157,003 | ||||||
SmallCap Account | 22,931 | (29,110 | ) | (6,179 | ) | 172,896 | ||||||
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.
49
Schedule of Investments | ||||||||||
Diversified International Account | ||||||||||
December 31, 2018 | ||||||||||
COMMON STOCKS - 98.40% | Shares Held Value (000's) | COMMON STOCKS (continued) | Shares Held Value (000’s) | |||||||
Aerospace & Defense - 1.63% | Distribution & Wholesale - 3.62% | |||||||||
Safran SA | 21,247 | $ | 2,548 | Ferguson PLC | 28,016 | $ | 1,790 | |||
Thales SA | 11,025 | 1,289 | ITOCHU Corp | 124,500 | 2,115 | |||||
$ | 3,837 | Mitsubishi Corp | 100,600 | 2,758 | ||||||
Agriculture - 0.45% | Sumitomo Corp | 131,800 | 1,870 | |||||||
Swedish Match AB | 27,131 | 1,068 | $ | 8,533 | ||||||
Apparel - 2.02% | Diversified Financial Services- 1.48% | |||||||||
KeringSA | 2,631 | 1,232 | Housing Development Finance Corp Ltd | 47,726 | 1,344 | |||||
LVMH Moet Hennessy Louis Vuitton SE | 9,429 | 2,761 | ORIX Corp | 146,300 | 2,138 | |||||
Moncler SpA | 23,267 | 774 | $ | 3,482 | ||||||
$ | 4,767 | Electric - 1.67% | ||||||||
Automobile Manufacturers - 4.87% | Enel SpA | 314,905 | 1,825 | |||||||
Ferrari NV | 15,022 | 1,495 | Iberdrola SA | 262,735 | 2,110 | |||||
Fiat Chrysler Automobiles NV(a) | 45,950 | 662 | $ | 3,935 | ||||||
Honda Motor Co Ltd | 57,300 | 1,510 | Electronics - 0.92% | |||||||
Isuzu Motors Ltd | 75,400 | 1,058 | Hoya Corp | 35,896 | 2,164 | |||||
Kia Motors Corp | 29,194 | 880 | Engineering & Construction - 2.15% | |||||||
MarutiSuzuki India Ltd | 12,609 | 1,347 | ACSActividades deConstruccion y Servicios SA | 43,144 | 1,670 | |||||
Suzuki Motor Corp | 18,600 | 938 | Larsen & Toubro Ltd | 67,591 | 1,391 | |||||
Toyota Motor Corp | 61,900 | 3,583 | Vinci SA | 24,495 | 2,014 | |||||
$ | 11,473 | $ | 5,075 | |||||||
Banks- 11.36% | Entertainment - 0.43% | |||||||||
Banco doBrasil SA | 77,400 | 927 | GVC Holdings PLC | 117,690 | 1,010 | |||||
Bangkok Bank PCL | 102,100 | 648 | Food - 4.15% | |||||||
Bank Leumi Le-Israel BM | 168,162 | 1,017 | Nestle India Ltd | 3,413 | 542 | |||||
Credicorp Ltd | 8,179 | 1,813 | Nestle SA | 66,019 | 5,358 | |||||
DBS Group Holdings Ltd | 107,600 | 1,871 | Tesco PLC | 671,068 | 1,627 | |||||
DNB ASA | 113,476 | 1,822 | Uni-President Enterprises Corp | 666,000 | 1,511 | |||||
Erste Group Bank AG(a) | 48,135 | 1,596 | X5 Retail Group NV | 29,638 | 735 | |||||
HDFC Bank Ltd ADR | 13,527 | 1,401 | $ | 9,773 | ||||||
HDFC Bank Ltd | 7,094 | 216 | Food Service - 0.48% | |||||||
Krung Thai Bank PCL | 1,682,600 | 991 | Compass Group PLC | 54,021 | 1,137 | |||||
Lloyds Banking Group PLC | 3,069,458 | 2,023 | ||||||||
Macquarie Group Ltd | 29,468 | 2,257 | Forest Products & Paper - 1.11% | |||||||
Mediobanca Banca di Credito FinanziarioSpA | 213,591 | 1,807 | Mondi PLC | 73,240 | 1,526 | |||||
Raiffeisen Bank International AG | 45,236 | 1,154 | SuzanoPapel e Celulose SA | 70,900 | 697 | |||||
SwedbankAB | 125,762 | 2,811 | UPM-Kymmene OYJ | 15,412 | 390 | |||||
Toronto-Dominion Bank/The | 63,000 | 3,132 | $ | 2,613 | ||||||
United Overseas Bank Ltd | 70,200 | 1,270 | Hand & Machine Tools - 0.39% | |||||||
$ | 26,756 | SandvikAB | 63,492 | 910 | ||||||
Beverages- 3.04% | Healthcare - Products - 1.38% | |||||||||
Coca-Cola Bottlers Japan HoldingsInc | 34,000 | 1,014 | Carl Zeiss MeditecAG | 7,888 | 616 | |||||
Coca-Cola HBC AG(a) | 33,654 | 1,053 | LonzaGroup AG(a) | 7,999 | 2,079 | |||||
Diageo PLC | 82,813 | 2,959 | StraumannHolding AG | 872 | 551 | |||||
JiangsuYangheBrewery Joint-Stock Co Ltd | 81,299 | 1,127 | $ | 3,246 | ||||||
Treasury Wine Estates Ltd | 97,007 | 1,012 | Healthcare - Services - 0.76% | |||||||
$ | 7,165 | Evotec AG(a) | 15,058 | 299 | ||||||
Biotechnology- 1.04% | ICON PLC(a) | 11,587 | 1,497 | |||||||
CSL Ltd | 18,807 | 2,456 | $ | 1,796 | ||||||
Building Materials- 0.98% | Home Builders- 0.70% | |||||||||
Anhui Conch Cement Co Ltd | 160,598 | 687 | Persimmon PLC | 35,454 | 873 | |||||
China National Building Material Co Ltd | 1,464,000 | 1,002 | Taylor Wimpey PLC | 445,583 | 775 | |||||
Rockwool International A/S | 2,365 | 619 | $ | 1,648 | ||||||
$ | 2,308 | Home Furnishings - 1.85% | ||||||||
Chemicals - 0.61% | Howden Joinery Group PLC | 181,440 | 1,007 | |||||||
NutrienLtd | 30,700 | 1,442 | LG Electronics Inc | 12,173 | 682 | |||||
Commercial Services - 1.34% | Sony Corp | 55,500 | 2,676 | |||||||
Ashtead Group PLC | 42,362 | 884 | $ | 4,365 | ||||||
Brambles Ltd | 98,568 | 705 | Insurance - 6.39% | |||||||
WirecardAG | 10,422 | 1,571 | ASR Nederland NV | 31,617 | 1,251 | |||||
$ | 3,160 | BBSeguridadeParticipacoes SA | 120,631 | 859 | ||||||
Computers - 1.44% | Fairfax Financial Holdings Ltd | 2,400 | 1,057 | |||||||
Capgemini SE | 7,445 | 741 | Hannover Rueck SE | 14,918 | 2,010 | |||||
Logitech International SA | 53,656 | 1,695 | Legal & General Group PLC | 646,783 | 1,906 | |||||
Obic Co Ltd | 12,300 | 949 | NN Group NV | 51,292 | 2,039 | |||||
$ | 3,385 | Prudential PLC | 127,231 | 2,272 | ||||||
Swiss Life Holding AG(a) | 5,754 | 2,221 | ||||||||
TokioMarine HoldingsInc | 30,500 | 1,449 | ||||||||
$ | 15,064 |
See accompanying notes.
50
Schedule of Investments
Diversified International Account
December 31, 2018
COMMON STOCKS (continued) | Shares Held Value (000’s) | COMMON STOCKS (continued) | Shares Held Value (000’s) | |||||||||
Internet - 2.06% | Software - 3.20% | |||||||||||
BaiduInc ADR(a) | 9,376 | $ | 1,487 | Amadeus IT Group SA | 27,146 | $ | 1,889 | |||||
TencentHoldings Ltd | 83,793 | 3,358 | Capcom Co Ltd | 58,600 | 1,162 | |||||||
$ | 4,845 | Dassault Systemes SE | 14,191 | 1,685 | ||||||||
Investment Companies - 1.40% | Tech Mahindra Ltd | 92,599 | 959 | |||||||||
EXOR NV | 20,947 | 1,137 | Ubisoft Entertainment SA(a) | 22,849 | 1,841 | |||||||
Investor AB | 51,096 | 2,171 | $ | 7,536 | ||||||||
$ | 3,308 | Telecommunications - 4.20% | ||||||||||
Iron & Steel - 1.68% | Deutsche Telekom AG | 100,972 | 1,716 | |||||||||
POSCO | 5,501 | 1,203 | Nice Ltd ADR(a) | 9,812 | 1,062 | |||||||
Vale SA | 210,411 | 2,759 | Orange SA | 97,860 | 1,586 | |||||||
$ | 3,962 | SK Telecom Co Ltd | 6,261 | 1,510 | ||||||||
Machinery - Construction & Mining- 1.10% | SoftBank Group Corp | 26,600 | 1,742 | |||||||||
Hitachi Ltd | 38,800 | 1,029 | Telefonaktiebolaget LM Ericsson | 117,805 | 1,043 | |||||||
Komatsu Ltd | 72,700 | 1,562 | Telenor ASA | 63,838 | 1,240 | |||||||
$ | 2,591 | $ | 9,899 | |||||||||
Machinery - Diversified- 1.13% | Toys, Games & Hobbies- 0.81% | |||||||||||
Harmonic Drive Systems Inc | 20,800 | 567 | Nintendo Co Ltd | 7,200 | 1,912 | |||||||
Keyence Corp | 2,800 | 1,415 | Transportation - 1.30% | |||||||||
Valmet OYJ | 33,058 | 681 | Canadian National Railway Co | 41,428 | 3,068 | |||||||
$ | 2,663 | TOTAL COMMON STOCKS | $ | 231,869 | ||||||||
Mining - 1.56% | INVESTMENT COMPANIES - 0.71% | Shares Held Value (000's) | ||||||||||
Glencore PLC(a) | 477,885 | 1,777 | Money Market Funds- 0.71% | |||||||||
Rio Tinto Ltd | 34,473 | 1,908 | Principal Government Money Market Fund | 1,663,621 | 1,664 | |||||||
$ | 3,685 | 2.11%(b),(c) | ||||||||||
Oil & Gas - 7.74% | TOTAL INVESTMENT COMPANIES | $ | 1,664 | |||||||||
BP PLC | 573,429 | 3,625 | PREFERRED STOCKS - 0.38% | Shares Held Value (000's) | ||||||||
China Petroleum & Chemical Corp | 2,062,000 | 1,470 | Holding Companies - Diversified- 0.38% | |||||||||
Husky Energy Inc | 68,300 | 706 | Itausa - Investimentos ItauSA 0.08% | 284,046 | $ | 886 | ||||||
JXTG HoldingsInc | 292,200 | 1,517 | TOTAL PREFERRED STOCKS | $ | 886 | |||||||
LUKOIL PJSC ADR | 17,056 | 1,221 | Total Investments | $ | 234,419 | |||||||
NesteOyj | 25,985 | 2,012 | Other Assets and Liabilities - 0.51% | 1,213 | ||||||||
PTT PCL | 1,124,000 | 1,584 | TOTAL NET ASSETS - 100.00% | $ | 235,632 | |||||||
Reliance Industries Ltd | 160,688 | 2,579 | ||||||||||
Royal Dutch Shell PLC - A Shares | 50,922 | 1,501 | (a) | Non-income producing security | ||||||||
Suncor Energy Inc | 72,600 | 2,028 | (b) | Affiliated Security. Security is either an affiliate (and registered under the | ||||||||
$ | 18,243 | Investment Company Act of 1940) or an affiliate as defined by the Investment | ||||||||||
Pharmaceuticals - 4.79% | Company Act of 1940 (controls 5.0% or more of the outstanding voting | |||||||||||
Novartis AG | 42,821 | 3,667 | shares of the security). Please see affiliated sub-schedule for transactional | |||||||||
Novo Nordisk A/S | 48,329 | 2,220 | information. | |||||||||
Roche Holding AG | 19,106 | 4,743 | (c) | Current yield shown is as of period end. | ||||||||
TevaPharmaceutical Industries Ltd ADR(a) | 42,160 | 650 | ||||||||||
$ | 11,280 | |||||||||||
Private Equity- 2.71% | ||||||||||||
3i Group PLC | 206,793 | 2,040 | ||||||||||
Brookfield Asset ManagementInc | 92,313 | 3,538 | ||||||||||
Intermediate Capital Group PLC | 67,128 | 801 | ||||||||||
$ | 6,379 | |||||||||||
Real Estate - 2.21% | ||||||||||||
CK Asset Holdings Ltd | 132,500 | 969 | ||||||||||
LEG Immobilien AG | 9,191 | 959 | ||||||||||
VonoviaSE | 43,152 | 1,945 | ||||||||||
Wharf Real Estate Investment Co Ltd | 224,000 | 1,340 | ||||||||||
$ | 5,213 | |||||||||||
REITs - 0.40% | ||||||||||||
Dexus | 125,538 | 940 | ||||||||||
Retail - 2.44% | ||||||||||||
Alimentation Couche-TardInc | 59,023 | 2,936 | ||||||||||
DonQuijote Holdings Co Ltd | 13,700 | 847 | ||||||||||
Wal-Mart de Mexico SAB de CV | 775,322 | 1,972 | ||||||||||
$ | 5,755 | |||||||||||
Semiconductors - 3.41% | ||||||||||||
Samsung Electronics Co Ltd | 102,751 | 3,577 | ||||||||||
Taiwan Semiconductor Manufacturing Co Ltd | 612,140 | 4,445 | ||||||||||
$ | 8,022 |
See accompanying notes.
51
Schedule of Investments | |||||||||||
Diversified International Account | |||||||||||
December 31, 2018 | |||||||||||
Portfolio Summary (unaudited) | |||||||||||
Country | Percent | ||||||||||
Japan | 15.26 | % | |||||||||
United Kingdom | 11.04 | % | |||||||||
Switzerland | 10.59 | % | |||||||||
Canada | 7.59 | % | |||||||||
France | 6.66 | % | |||||||||
India | 4.16 | % | |||||||||
China | 3.88 | % | |||||||||
Germany | 3.87 | % | |||||||||
Sweden | 3.39 | % | |||||||||
Korea, Republic Of | 3.33 | % | |||||||||
Australia | 3.13 | % | |||||||||
Brazil | 2.60 | % | |||||||||
Taiwan, Province Of China | 2.53 | % | |||||||||
Netherlands | 2.52 | % | |||||||||
Italy | 2.51 | % | |||||||||
Spain | 2.41 | % | |||||||||
Thailand | 1.37 | % | |||||||||
Singapore | 1.33 | % | |||||||||
Finland | 1.30 | % | |||||||||
Norway | 1.30 | % | |||||||||
Denmark | 1.20 | % | |||||||||
Austria | 1.17 | % | |||||||||
Israel | 1.16 | % | |||||||||
Hong Kong | 0.98 | % | |||||||||
Mexico | 0.84 | % | |||||||||
Russian Federation | 0.83 | % | |||||||||
Peru | 0.77 | % | |||||||||
United States | 0.71 | % | |||||||||
Ireland | 0.63 | % | |||||||||
Isle of Man | 0.43 | % | |||||||||
Other Assets and Liabilities | 0.51 | % | |||||||||
TOTAL NET ASSETS | 100.00 | % | |||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 4,483 | $ | 68,287 | $ | 71,106 | $ | 1,664 | |||
$ | 4,483 | $ | 68,287 | $ | 71,106 | $ | 1,664 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 57 | $ | — | $ | — | $ | — | |||
$ | 57 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
52
Schedule of Investments Equity Income Account December 31, 2018
COMMON STOCKS - 98.23% | Shares Held Value (000's) | COMMON STOCKS (continued) | Shares Held Value (000’s) | ||||||||
Aerospace & Defense - 0.40% | Miscellaneous Manufacturers - 1.98% | ||||||||||
Boeing Co/The | 8,107 | $ | 2,614 | 3M Co | 21,617 | $ | 4,119 | ||||
Airlines - 1.41% | Parker-Hannifin Corp | 60,200 | 8,978 | ||||||||
Delta Air Lines Inc | 186,642 | 9,313 | $ | 13,097 | |||||||
Apparel - 0.78% | Oil & Gas - 7.22% | ||||||||||
VF Corp | 71,874 | 5,127 | Chevron Corp | 63,454 | 6,903 | ||||||
Automobile Manufacturers - 1.52% | Cimarex Energy Co | 109,868 | 6,773 | ||||||||
PACCAR Inc | 176,236 | 10,070 | Exxon Mobil Corp | 83,092 | 5,666 | ||||||
Automobile Parts & Equipment - 1.80% | Marathon Petroleum Corp | 168,910 | 9,967 | ||||||||
Autoliv Inc | 62,604 | 4,396 | Occidental Petroleum Corp | 104,733 | 6,429 | ||||||
Magna International Inc | 164,769 | 7,489 | Royal Dutch Shell PLC - B shares ADR | 200,591 | 12,024 | ||||||
$ | 11,885 | $ | 47,762 | ||||||||
Banks- 9.38% | Pharmaceuticals - 8.72% | ||||||||||
Bank of Nova Scotia/The | 239,675 | 11,953 | Johnson & Johnson | 56,414 | 7,280 | ||||||
JPMorgan Chase & Co | 183,938 | 17,956 | Merck & Co Inc | 197,769 | 15,112 | ||||||
PNC Financial Services Group Inc/The | 134,224 | 15,692 | Novartis AG ADR | 103,850 | 8,911 | ||||||
SunTrust Banks Inc | 93,198 | 4,701 | PfizerInc | 285,268 | 12,452 | ||||||
US Bancorp | 256,221 | 11,709 | Roche Holding AG ADR | 448,428 | 13,937 | ||||||
$ | 62,011 | $ | 57,692 | ||||||||
Beverages- 1.01% | Pipelines - 1.98% | ||||||||||
Coca-Cola Co/The | 141,577 | 6,704 | Enterprise Products Partners LP | 533,208 | 13,112 | ||||||
Chemicals - 3.26% | Private Equity- 2.07% | ||||||||||
Air Products & ChemicalsInc | 40,818 | 6,533 | KKR & CoInc | 696,278 | 13,668 | ||||||
Albemarle Corp | 50,000 | 3,854 | REITs - 4.38% | ||||||||
DowDuPont Inc | 118,388 | 6,331 | Alexandria Real Estate EquitiesInc | 31,636 | 3,646 | ||||||
PPG IndustriesInc | 47,142 | 4,819 | Digital Realty Trust Inc | 112,245 | 11,960 | ||||||
$ | 21,537 | Host Hotels & Resorts Inc | 151,840 | 2,531 | |||||||
Computers - 2.89% | Simon Property Group Inc | 64,302 | 10,802 | ||||||||
Accenture PLC - Class A | 32,456 | 4,577 | $ | 28,939 | |||||||
Apple Inc | 92,191 | 14,542 | Retail - 3.39% | ||||||||
$ | 19,119 | Costco Wholesale Corp | 54,982 | 11,200 | |||||||
Diversified Financial Services- 3.94% | Starbucks Corp | 174,484 | 11,237 | ||||||||
BlackRock Inc | 32,011 | 12,575 | $ | 22,437 | |||||||
Discover Financial Services | 228,375 | 13,469 | Semiconductors - 3.81% | ||||||||
$ | 26,044 | Applied MaterialsInc | 196,093 | 6,420 | |||||||
Electric - 7.26% | Maxim Integrated ProductsInc | 51,850 | 2,637 | ||||||||
Eversource Energy | 143,463 | 9,331 | Microchip Technology Inc | 130,427 | 9,380 | ||||||
NextEra Energy Inc | 49,969 | 8,685 | Taiwan Semiconductor Manufacturing Co Ltd | 184,043 | 6,793 | ||||||
Sempra Energy | 95,053 | 10,284 | ADR | ||||||||
WEC Energy Group Inc | 137,526 | 9,525 | $ | 25,230 | |||||||
Xcel EnergyInc | 206,977 | 10,198 | Software - 2.86% | ||||||||
$ | 48,023 | Fidelity National Information ServicesInc | 66,963 | 6,867 | |||||||
Electronics - 1.04% | Microsoft Corp | 75,757 | 7,695 | ||||||||
Honeywell International Inc | 51,895 | 6,856 | SAP SE ADR | 43,615 | 4,342 | ||||||
$ | 18,904 | ||||||||||
Food - 4.16% | Telecommunications - 3.59% | ||||||||||
Hormel Foods Corp | 202,272 | 8,633 | |||||||||
Kraft Heinz Co/The | 116,488 | 5,014 | BCE Inc | 280,845 | 11,102 | ||||||
Kroger Co/The | 331,140 | 9,106 | Verizon CommunicationsInc | 224,382 | 12,615 | ||||||
Tyson FoodsInc | 89,340 | 4,771 | $ | 23,717 | |||||||
$ | 27,524 | Toys, Games & Hobbies- 2.13% | |||||||||
Healthcare - Products - 5.70% | Hasbro Inc | 173,642 | 14,108 | ||||||||
Abbott Laboratories | 179,480 | 12,982 | Transportation - 1.53% | ||||||||
Becton Dickinson and Co | 44,969 | 10,132 | Union Pacific Corp | 73,273 | 10,129 | ||||||
Medtronic PLC | 160,502 | 14,599 | TOTAL COMMON STOCKS | $ | 649,647 | ||||||
$ | 37,713 | INVESTMENT COMPANIES - 1.33% | Shares Held Value (000's) | ||||||||
Healthcare - Services - 0.50% | Money Market Funds- 1.33% | ||||||||||
HCA Healthcare Inc | 26,763 | 3,331 | Principal Government Money Market Fund | 8,817,405 | 8,817 | ||||||
Insurance - 6.94% | 2.11%(a),(b) | ||||||||||
TOTAL INVESTMENT COMPANIES | $ | 8,817 | |||||||||
Allstate Corp/The | 117,231 | 9,687 | Total Investments | $ | 658,464 | ||||||
Chubb Ltd | 117,339 | 15,158 | Other Assets and Liabilities - 0.44% | 2,920 | |||||||
Fairfax Financial Holdings Ltd | 10,014 | 4,407 | TOTAL NET ASSETS - 100.00% | $ | 661,384 | ||||||
Fidelity National FinancialInc | 337,253 | 10,603 | |||||||||
Swiss Re AG ADR | 264,038 | 6,049 | |||||||||
$ | 45,904 | ||||||||||
Machinery - Diversified- 1.14% | |||||||||||
Deere & Co | 50,483 | 7,531 | |||||||||
Media - 1.44% | |||||||||||
Walt Disney Co/The | 87,056 | 9,546 |
See accompanying notes.
53
Schedule of Investments Equity Income Account December 31, 2018
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the InvestmentCompany Act of 1940 (controls 5.0% or more of the outstanding voting shares of the security). Please see affiliated sub-schedule for transactional information. |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Sector | Percent | ||
Financial | 26.71 | % | |
Consumer, Non-cyclical | 20.09 | % | |
Consumer, Cyclical | 11.03 | % | |
Technology | 9.56 | % | |
Energy | 9.20 | % | |
Utilities | 7.26 | % | |
Industrial | 6.09 | % | |
Communications | 5.03 | % | |
Basic Materials | 3.26 | % | |
Investment Companies | 1.33 | % | |
Other Assets and Liabilities | 0.44 | % | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 10,695 | $ | 90,985 | $ | 92,863 | $ | 8,817 | |||
$ | 10,695 | $ | 90,985 | $ | 92,863 | $ | 8,817 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 133 | $ | — | $ | — | $ | — | |||
$ | 133 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
54
Schedule of Investments | |||||||||||
Government & High Quality Bond Account | |||||||||||
December 31, 2018 | |||||||||||
INVESTMENT COMPANIES - 0.58% | Shares Held Value (000's) | Principal | |||||||||
Money Market Funds- 0.58% | BONDS (continued) | Amount (000’s) Value (000’s) | |||||||||
Principal Government Money Market Fund | 1,277,532 | $ | 1,278 | Mortgage Backed Securities (continued) | |||||||
2.11%(a),(b) | Fannie Mae REMICS | ||||||||||
TOTAL INVESTMENT COMPANIES | $ | 1,278 | 1.54%, 06/25/2045(c),(d) | $ | 5,111 | $ | 283 | ||||
Principal | 2.00%, 02/25/2040 | 754 | 735 | ||||||||
BONDS- 29.96% | Amount (000's) Value (000's) | 3.00%, 04/25/2042 | 1,022 | 1,010 | |||||||
Commercial Mortgage Backed Securities- 12.32% | 3.00%, 02/25/2043 | 483 | 481 | ||||||||
CD 2017-CD3 Mortgage Trust | 3.00%, 01/25/2046 | 805 | 799 | ||||||||
3.98%, 02/10/2050(c) | $ | 1,000 | $ | 985 | 3.50%, 01/25/2040(d) | 2,937 | 321 | ||||
COMM 2014-CCRE19 Mortgage Trust | 3.50%, 11/25/2042 | 2,500 | 2,569 | ||||||||
4.72%, 08/10/2047(c) | 600 | 608 | 4.00%, 12/25/2039(d) | 1,487 | 183 | ||||||
COMM 2014-UBS5 Mortgage Trust | 4.00%, 11/25/2042(d) | 1,974 | 397 | ||||||||
4.61%, 09/10/2047(c) | 1,000 | 995 | 4.00%, 03/25/2045 | 1,000 | 1,068 | ||||||
Freddie Mac Multifamily Structured Pass | 4.00%, 04/25/2047 | 643 | 685 | ||||||||
Through Certificates | 4.50%, 04/25/2045(d) | 3,599 | 841 | ||||||||
2.65%, 08/25/2026 | 1,300 | 1,251 | 7.00%, 04/25/2032 | 125 | 139 | ||||||
3.19%, 09/25/2027(c) | 1,330 | 1,317 | Freddie Mac REMICS | ||||||||
3.29%, 11/25/2027 | 1,100 | 1,096 | 1.33%, 05/15/2038(c),(d) | 4,218 | 161 | ||||||
3.44%, 12/25/2027 | 1,000 | 1,009 | 1.50%, 04/15/2028 | 1,120 | 1,073 | ||||||
3.60%, 01/25/2028 | 1,330 | 1,357 | 2.50%, 11/15/2032 | 1,024 | 993 | ||||||
3.65%, 02/25/2028(c) | 700 | 717 | 2.50%, 02/15/2043 | 1,022 | 989 | ||||||
3.90%, 06/25/2051 | 700 | 730 | 3.00%, 11/15/2030(d) | 2,612 | 165 | ||||||
Ginnie Mae | 3.00%, 11/15/2035 | 950 | 919 | ||||||||
0.52%, 06/16/2060(c),(d) | 7,466 | 423 | 3.00%, 06/15/2040 | 519 | 519 | ||||||
0.57%, 12/16/2059(c),(d) | 7,850 | 456 | 3.00%, 10/15/2041 | 422 | 422 | ||||||
0.58%, 03/16/2060(c),(d) | 4,943 | 297 | 3.00%, 04/15/2046 | 323 | 321 | ||||||
0.61%, 04/16/2047(c),(d) | 10,952 | 436 | 3.50%, 03/15/2029 | 336 | 346 | ||||||
0.61%, 10/16/2054(c),(d) | 10,910 | 332 | 3.50%, 08/15/2040(d) | 2,914 | 336 | ||||||
0.64%, 11/16/2045(c),(d) | 17,452 | 672 | 3.50%, 05/15/2043 | 885 | 904 | ||||||
0.72%, 11/16/2052(c),(d) | 14,170 | 630 | 3.50%, 09/15/2043 | 1,200 | 1,207 | ||||||
0.80%, 09/16/2053(c),(d) | 9,962 | 414 | 4.00%, 05/15/2039 | 4,200 | 4,312 | ||||||
0.81%, 02/16/2053(c),(d) | 11,960 | 628 | 4.00%, 01/15/2045 | 1,282 | 1,365 | ||||||
0.84%, 02/16/2055(c),(d) | 22,082 | 722 | 4.00%, 04/15/2045 | 579 | 609 | ||||||
0.89%, 02/16/2046(c),(d) | 15,334 | 717 | Ginnie Mae | ||||||||
0.90%, 03/16/2052(c),(d) | 12,826 | 749 | 3.50%, 12/20/2034(d) | 1,112 | 25 | ||||||
2.60%, 05/16/2059 | 685 | 645 | 3.50%, 05/20/2039 | 114 | 114 | ||||||
2.60%, 03/16/2060 | 1,166 | 1,101 | 3.50%, 05/20/2043(d) | 4,559 | 896 | ||||||
GS Mortgage Securities Trust 2014-GC20 | 3.50%, 10/20/2044(d) | 5,638 | 894 | ||||||||
4.97%, 04/10/2047(c) | 300 | 299 | 3.50%, 11/20/2045 | 930 | 925 | ||||||
JP Morgan Chase Commercial Mortgage | 4.00%, 02/20/2044(d) | 3,549 | 638 | ||||||||
Securities Trust 2011-C5 | 4.00%, 04/20/2044(d) | 1,799 | 313 | ||||||||
5.41%, 08/15/2046(c),(e) | 2,000 | 2,079 | 4.00%, 01/20/2048(d) | 2,035 | 400 | ||||||
JP Morgan Chase Commercial Mortgage | JP Morgan Mortgage Trust 2016-4 | ||||||||||
Securities Trust 2013-C16 | 3.50%, 10/25/2046(c),(e) | 794 | 781 | ||||||||
4.96%, 12/15/2046(c) | 1,800 | 1,871 | JP Morgan Mortgage Trust 2017-3 | ||||||||
JPMDB Commercial Mortgage Securities Trust | 3.86%, 08/25/2047(c),(e) | 581 | 569 | ||||||||
2018- | C8 | JP Morgan Mortgage Trust 2018-8 | |||||||||
4.75%, 06/15/2051(c) | 500 | 491 | 4.00%, 01/25/2049(c),(e) | 1,076 | 1,065 | ||||||
WFRBS Commercial Mortgage Trust 2013-C14 | New Residential Mortgage Loan Trust 2014-1 | ||||||||||
3.98%, 06/15/2046(c),(e) | 1,000 | 907 | 5.00%, 01/25/2054(c),(e) | 1,596 | 1,657 | ||||||
WFRBS Commercial Mortgage Trust 2014-C23 | New Residential Mortgage Loan Trust 2015-2 | ||||||||||
4.38%, 10/15/2057(c) | 1,000 | 1,028 | 5.55%, 08/25/2055(c),(e) | 1,145 | 1,227 | ||||||
WFRBS Commercial Mortgage Trust 2014-LC14 | Sequoia Mortgage Trust 2013-2 | ||||||||||
4.34%, 03/15/2047(c) | 2,450 | 2,419 | 3.64%, 02/25/2043(c) | 771 | 769 | ||||||
$ | 27,381 | Sequoia Mortgage Trust 2017-5 | |||||||||
Home Equity Asset Backed Securities- 0.37% | 3.50%, 08/25/2047(c),(e) | 350 | 341 | ||||||||
ACE Securities Corp Mortgage Loan Trust Series | Sequoia Mortgage Trust 2018-5 | ||||||||||
2007- | D1 | 3.50%, 05/25/2048(c),(e) | 670 | 655 | |||||||
6.93%, 02/25/2038(c),(e) | 873 | 823 | $ | 36,617 | |||||||
Mortgage Backed Securities- 16.47% | Other Asset Backed Securities- 0.80% | ||||||||||
EverBankMortgage Loan Trust 18-1 | Chase Funding Trust Series 2004-1 | ||||||||||
3.50%, 02/25/2048(c),(e) | 661 | 650 | 2.97%, 12/25/2033 | 97 | 96 | ||||||
Fannie Mae Grantor Trust 2005-T1 | 1.00 x 1 Month USD LIBOR + 0.46% | ||||||||||
2.86%, 05/25/2035 | 236 | 235 | CNH Equipment Trust 2016-C | ||||||||
1.00 x 1 Month USD LIBOR + 0.35% | 1.76%, 09/15/2023 | 500 | 490 | ||||||||
Fannie Mae Interest Strip | TowdPoint Mortgage Trust | ||||||||||
3.50%, 12/25/2043(c),(d) | 1,688 | 311 | 4.25%, 10/25/2053(c),(e) | 550 | 568 |
See accompanying notes.
55
Schedule of Investments | |||||||||||
Government & High Quality Bond Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | |||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Other Asset Backed Securities (continued) | Federal Home Loan Mortgage Corporation (FHLMC) (continued) | ||||||||||
Towd Point Mortgage Trust 2017-6 | 6.50%, 04/01/2024 | $ | 3 | $ | 3 | ||||||
3.25%, 10/25/2057(c),(e) | $ | 700 | $ | 620 | 6.50%, 04/01/2026 | 2 | 2 | ||||
$ | 1,774 | 6.50%, 05/01/2026 | 3 | 3 | |||||||
TOTAL BONDS | $ | 66,595 | 6.50%, 05/01/2026 | 1 | 1 | ||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | 6.50%, 01/01/2028 | 4 | 5 | |||||||
AGENCY OBLIGATIONS- 69.84% | Amount (000's) Value (000's) | 6.50%, 03/01/2028 | 2 | 3 | |||||||
Federal Home Loan Mortgage Corporation (FHLMC) - 15.07% | 6.50%, 10/01/2028 | 17 | 19 | ||||||||
2.00%, 10/01/2031 | $ | 778 | $ | 744 | 6.50%, 11/01/2028 | 4 | 4 | ||||
2.50%, 02/01/2028 | 759 | 750 | 6.50%, 12/01/2028 | 8 | 9 | ||||||
3.00%, 02/01/2027 | 273 | 274 | 6.50%, 03/01/2029 | 4 | 4 | ||||||
3.00%, 01/01/2033 | 1,036 | 1,033 | 6.50%, 07/01/2031 | 19 | 21 | ||||||
3.00%, 08/01/2042 | 770 | 756 | 6.50%, 08/01/2031 | 5 | 6 | ||||||
3.00%, 10/01/2042 | 1,142 | 1,123 | 6.50%, 10/01/2031 | 8 | 9 | ||||||
3.00%, 10/01/2042 | 1,094 | 1,076 | 6.50%, 10/01/2031 | 8 | 9 | ||||||
3.00%, 10/01/2042 | 564 | 555 | 6.50%, 12/01/2031 | 15 | 16 | ||||||
3.00%, 05/01/2043 | 807 | 792 | 6.50%, 02/01/2032 | 14 | 16 | ||||||
3.00%, 10/01/2046 | 838 | 821 | 6.50%, 05/01/2032 | 37 | 43 | ||||||
3.00%, 01/01/2047 | 1,112 | 1,089 | 6.50%, 04/01/2035 | 6 | 7 | ||||||
3.50%, 02/01/2032 | 1,228 | 1,250 | 7.00%, 09/01/2023 | 6 | 6 | ||||||
3.50%, 04/01/2042 | 1,748 | 1,761 | 7.00%, 12/01/2023 | 2 | 2 | ||||||
3.50%, 05/01/2042 | 617 | 622 | 7.00%, 01/01/2024 | 3 | 3 | ||||||
3.50%, 07/01/2042 | 2,260 | 2,277 | 7.00%, 09/01/2027 | 4 | 4 | ||||||
3.50%, 10/01/2042 | 591 | 595 | 7.00%, 01/01/2028 | 32 | 34 | ||||||
3.50%, 02/01/2044 | 915 | 920 | 7.00%, 04/01/2028 | 15 | 17 | ||||||
3.50%, 08/01/2045 | 947 | 954 | 7.00%, 05/01/2028 | 2 | 3 | ||||||
3.50%, 07/01/2046 | 765 | 769 | 7.00%, 10/01/2031 | 12 | 13 | ||||||
3.50%, 01/01/2047 | 2,094 | 2,102 | 7.00%, 10/01/2031 | 7 | 7 | ||||||
3.50%, 01/01/2048 | 1,105 | 1,110 | 7.00%, 04/01/2032 | 53 | 60 | ||||||
4.00%, 07/01/2042 | 801 | 826 | 7.50%, 10/01/2030 | 10 | 11 | ||||||
4.00%, 01/01/2043 | 1,089 | 1,121 | 7.50%, 02/01/2031 | 9 | 10 | ||||||
4.00%, 06/01/2043 | 1,304 | 1,339 | 7.50%, 02/01/2031 | 4 | 4 | ||||||
4.00%, 10/01/2045 | 1,318 | 1,357 | 7.50%, 02/01/2031 | 3 | 3 | ||||||
4.00%, 08/01/2047 | 1,601 | 1,646 | 8.00%, 10/01/2030 | 16 | 19 | ||||||
4.00%, 01/01/2048 | 1,329 | 1,368 | 8.50%, 07/01/2029 | 17 | 18 | ||||||
4.00%, 06/01/2048 | 948 | 975 | $ | 33,499 | |||||||
4.50%, 09/01/2032 | 14 | 14 | Federal National Mortgage Association (FNMA) - 37.24% | ||||||||
1.00 x US Treasury Yield Curve Rate T | 2.00%, 02/01/2032 | 464 | 444 | ||||||||
Note Constant Maturity 1 Year + 2.23% | 2.50%, 06/01/2027 | 1,219 | 1,203 | ||||||||
4.50%, 11/01/2043 | 1,032 | 1,087 | 2.50%, 08/01/2028 | 830 | 819 | ||||||
5.00%, 10/01/2025 | 132 | 138 | 2.50%, 12/01/2028 | 539 | 532 | ||||||
5.00%, 02/01/2033 | 168 | 178 | 2.50%, 12/01/2031 | 923 | 902 | ||||||
5.00%, 06/01/2033 | 183 | 193 | 3.00%, 05/01/2029 | 915 | 916 | ||||||
5.00%, 01/01/2034 | 524 | 557 | 3.00%, 08/01/2031 | 1,790 | 1,791 | ||||||
5.00%, 07/01/2035 | 11 | 12 | 3.00%, 10/01/2036 | 671 | 664 | ||||||
5.00%, 07/01/2035 | 106 | 113 | 3.00%, 10/01/2042 | 1,593 | 1,567 | ||||||
5.00%, 07/01/2035 | 25 | 26 | 3.00%, 11/01/2042 | 1,756 | 1,727 | ||||||
5.00%, 10/01/2035 | 51 | 55 | 3.00%, 12/01/2042 | 1,553 | 1,527 | ||||||
5.50%, 03/01/2033 | 117 | 126 | 3.00%, 02/01/2043 | 1,108 | 1,089 | ||||||
5.50%, 04/01/2038 | 7 | 8 | 3.00%, 04/01/2043 | 1,000 | 982 | ||||||
5.50%, 05/01/2038 | 42 | 45 | 3.00%, 06/01/2043 | 1,970 | 1,937 | ||||||
6.00%, 12/01/2023 | 3 | 3 | 3.00%, 08/01/2043 | 1,377 | 1,354 | ||||||
6.00%, 05/01/2031 | 12 | 14 | 3.00%, 09/01/2046 | 1,607 | 1,574 | ||||||
6.00%, 12/01/2031 | 14 | 15 | 3.00%, 10/01/2046 | 1,100 | 1,075 | ||||||
6.00%, 09/01/2032 | 7 | 7 | 3.00%, 11/01/2046 | 1,677 | 1,643 | ||||||
6.00%, 11/01/2033 | 52 | 56 | 3.00%, 01/01/2047 | 975 | 956 | ||||||
6.00%, 11/01/2033 | 23 | 25 | 3.50%, 08/01/2031 | 900 | 913 | ||||||
6.00%, 09/01/2034 | 53 | 58 | 3.50%, 02/01/2033 | 1,355 | 1,373 | ||||||
6.00%, 02/01/2035 | 50 | 55 | 3.50%, 02/01/2042 | 1,229 | 1,238 | ||||||
6.00%, 10/01/2036 | 50 | 54 | 3.50%, 09/01/2042 | 2,057 | 2,073 | ||||||
6.00%, 03/01/2037 | 40 | 43 | 3.50%, 11/01/2042 | 1,374 | 1,385 | ||||||
6.00%, 01/01/2038 | 91 | 100 | 3.50%, 12/01/2042 | 1,437 | 1,448 | ||||||
6.00%, 01/01/2038 | 8 | 8 | 3.50%, 02/01/2043 | 527 | 532 | ||||||
6.00%, 04/01/2038 | 60 | 66 | 3.50%, 09/01/2044 | 2,164 | 2,184 | ||||||
6.50%, 08/01/2021 | 1 | 1 | 3.50%, 10/01/2044 | 651 | 658 | ||||||
6.50%, 12/01/2021 | 9 | 10 | 3.50%, 11/01/2044 | 638 | 646 | ||||||
6.50%, 04/01/2022 | 12 | 13 | 3.50%, 03/01/2045 | 664 | 669 | ||||||
6.50%, 05/01/2022 | 8 | 8 | 3.50%, 03/01/2045 | 1,501 | 1,508 | ||||||
6.50%, 05/01/2023 | 12 | 12 | 3.50%, 06/01/2045 | 1,130 | 1,140 |
See accompanying notes.
56
Schedule of Investments | |||||||||||
Government & High Quality Bond Account | |||||||||||
December 31, 2018 | |||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
Federal National Mortgage Association (FNMA) (continued) | Federal National Mortgage Association (FNMA) (continued) | ||||||||||
3.50%, 09/01/2045 | $ | 952 | $ | 956 | 6.00%, 01/01/2033 | $ | 55 | $ | 60 | ||
3.50%, 10/01/2045 | 725 | 732 | 6.00%, 05/01/2037 | 167 | 179 | ||||||
3.50%, 11/01/2045 | 750 | 755 | 6.00%, 07/01/2037 | 141 | 153 | ||||||
3.50%, 01/01/2046 | 728 | 735 | 6.00%, 11/01/2037 | 3 | 3 | ||||||
3.50%, 03/01/2046 | 520 | 524 | 6.00%, 12/01/2037 | 8 | 9 | ||||||
3.50%, 04/01/2046 | 1,143 | 1,152 | 6.00%, 03/01/2038 | 63 | 69 | ||||||
3.50%, 03/01/2047 | 1,086 | 1,093 | 6.50%, 11/01/2023 | 18 | 19 | ||||||
3.50%, 10/01/2047 | 811 | 816 | 6.50%, 05/01/2024 | 9 | 9 | ||||||
3.52%, 12/01/2032 | 12 | 12 | 6.50%, 09/01/2024 | 10 | 11 | ||||||
1.00 x 12 Month USD LIBOR + 1.64% | 6.50%, 07/01/2025 | 10 | 11 | ||||||||
4.00%, 01/01/2034 | 566 | 587 | 6.50%, 08/01/2025 | 18 | 19 | ||||||
4.00%, 10/01/2037 | 1,046 | 1,074 | 6.50%, 02/01/2026 | 3 | 3 | ||||||
4.00%, 02/01/2041 | 1,537 | 1,585 | 6.50%, 03/01/2026 | 2 | 2 | ||||||
4.00%, 02/01/2042 | 893 | 919 | 6.50%, 05/01/2026 | 3 | 3 | ||||||
4.00%, 08/01/2043 | 519 | 537 | 6.50%, 06/01/2026 | 1 | 1 | ||||||
4.00%, 10/01/2043 | 441 | 453 | 6.50%, 07/01/2028 | 9 | 10 | ||||||
4.00%, 04/01/2044 | 344 | 355 | 6.50%, 09/01/2028 | 17 | 18 | ||||||
4.00%, 08/01/2044 | 586 | 606 | 6.50%, 02/01/2029 | 3 | 3 | ||||||
4.00%, 10/01/2044 | 1,732 | 1,775 | 6.50%, 03/01/2029 | 5 | 6 | ||||||
4.00%, 11/01/2044 | 555 | 574 | 6.50%, 04/01/2029 | 4 | 5 | ||||||
4.00%, 12/01/2044 | 936 | 967 | 6.50%, 06/01/2031 | 9 | 10 | ||||||
4.00%, 02/01/2045 | 963 | 995 | 6.50%, 06/01/2031 | 10 | 11 | ||||||
4.00%, 08/01/2045 | 901 | 931 | 6.50%, 01/01/2032 | 4 | 4 | ||||||
4.00%, 09/01/2045 | 2,020 | 2,087 | 6.50%, 04/01/2032 | 34 | 37 | ||||||
4.00%, 05/01/2046 | 1,700 | 1,752 | 6.50%, 08/01/2032 | 10 | 11 | ||||||
4.00%, 07/01/2046 | 785 | 810 | 6.50%, 11/01/2032 | 15 | 16 | ||||||
4.00%, 07/01/2047 | 1,134 | 1,167 | 6.50%, 02/01/2033 | 20 | 21 | ||||||
4.00%, 10/01/2047 | 983 | 1,011 | 6.50%, 12/01/2036 | 34 | 37 | ||||||
4.00%, 12/01/2047 | 903 | 930 | 6.50%, 07/01/2037 | 17 | 18 | ||||||
4.33%, 07/01/2034 | 20 | 21 | 6.50%, 07/01/2037 | 28 | 30 | ||||||
1.00 x US Treasury Yield Curve Rate T | 6.50%, 02/01/2038 | 30 | 34 | ||||||||
Note Constant Maturity 1 Year + 2.21% | 7.00%, 08/01/2028 | 17 | 19 | ||||||||
4.48%, 12/01/2033 | 129 | 134 | 7.00%, 12/01/2028 | 14 | 16 | ||||||
1.00 x 12 Month USD LIBOR + 1.60% | 7.00%, 10/01/2029 | 14 | 16 | ||||||||
4.50%, 12/01/2019 | 5 | 5 | 7.00%, 05/01/2031 | 4 | 4 | ||||||
4.50%, 01/01/2020 | 18 | 18 | 7.00%, 11/01/2031 | 21 | 23 | ||||||
4.50%, 08/01/2039 | 1,803 | 1,888 | 7.50%, 04/01/2022 | 1 | 1 | ||||||
4.50%, 03/01/2042 | 472 | 496 | 7.50%, 11/01/2029 | 13 | 13 | ||||||
4.50%, 09/01/2043 | 1,886 | 1,986 | 8.00%, 05/01/2027 | 9 | 9 | ||||||
4.50%, 10/01/2043 | 997 | 1,047 | 8.00%, 09/01/2027 | 4 | 4 | ||||||
4.50%, 11/01/2043 | 1,095 | 1,153 | 8.00%, 06/01/2030 | 2 | 2 | ||||||
4.50%, 09/01/2045 | 816 | 857 | 8.50%, 10/01/2027 | 27 | 27 | ||||||
4.50%, 10/01/2045 | 1,039 | 1,094 | 9.00%, 09/01/2030 | 1 | 1 | ||||||
4.50%, 11/01/2045 | 1,494 | 1,570 | $ | 82,766 | |||||||
4.50%, 09/01/2048 | 1,972 | 2,073 | Government National Mortgage Association (GNMA) - 7.57% | ||||||||
5.00%, 05/01/2033 | 1,309 | 1,401 | 3.00%, 11/15/2042 | 1,005 | 995 | ||||||
5.00%, 04/01/2035 | 125 | 133 | 3.00%, 12/15/2042 | 1,800 | 1,786 | ||||||
5.00%, 04/01/2035 | 98 | 104 | 3.00%, 02/15/2043 | 1,539 | 1,522 | ||||||
5.00%, 07/01/2035 | 6 | 6 | 3.50%, 01/15/2043 | 1,260 | 1,275 | ||||||
5.00%, 02/01/2038 | 407 | 436 | 3.50%, 05/15/2043 | 1,423 | 1,440 | ||||||
5.00%, 02/01/2040 | 1,432 | 1,534 | 3.50%, 06/20/2043 | 864 | 872 | ||||||
5.00%, 07/01/2041 | 1,125 | 1,205 | 3.50%, 04/20/2045 | 847 | 853 | ||||||
5.50%, 07/01/2019 | 1 | 1 | 3.50%, 09/20/2045 | 1,273 | 1,284 | ||||||
5.50%, 08/01/2019 | 1 | 1 | 3.50%, 06/20/2046 | 119 | 120 | ||||||
5.50%, 08/01/2019 | 1 | 1 | 3.50%, 02/20/2047 | 887 | 892 | ||||||
5.50%, 08/01/2019 | 13 | 13 | 3.50%, 05/20/2047 | 1,014 | 1,027 | ||||||
5.50%, 08/01/2019 | 1 | 1 | 3.50%, 11/20/2047 | 782 | 787 | ||||||
5.50%, 08/01/2019 | 1 | 1 | 4.00%, 08/15/2041 | 1,043 | 1,078 | ||||||
5.50%, 09/01/2019 | 5 | 5 | 4.00%, 07/20/2047 | 1,026 | 1,058 | ||||||
5.50%, 10/01/2019 | 1 | 1 | 4.50%, 07/15/2040 | 593 | 619 | ||||||
5.50%, 05/01/2024 | 9 | 10 | 5.00%, 09/15/2033 | 5 | 6 | ||||||
5.50%, 05/01/2033 | 15 | 15 | 5.00%, 02/15/2034 | 320 | 339 | ||||||
5.50%, 06/01/2033 | 66 | 71 | 5.00%, 09/15/2039 | 41 | 43 | ||||||
5.50%, 02/01/2037 | 5 | 5 | 5.50%, 11/15/2033 | 29 | 31 | ||||||
5.50%, 03/01/2038 | 117 | 126 | 5.50%, 05/20/2035 | 136 | 145 | ||||||
6.00%, 06/01/2022 | 13 | 14 | 5.50%, 03/15/2039 | 88 | 93 | ||||||
6.00%, 11/01/2028 | 13 | 14 | 6.00%, 04/20/2026 | 4 | 5 | ||||||
6.00%, 12/01/2031 | 9 | 10 | 6.00%, 05/20/2026 | 4 | 4 |
See accompanying notes.
57
Schedule of Investments | |||||||||||||||
Government & High Quality Bond Account | |||||||||||||||
December 31, 2018 | |||||||||||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | (a) | Affiliated Security. Security is either an affiliate (and registered under the | ||||||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | Investment Company Act of 1940) or an affiliate as defined by the Investment | |||||||||||||
Government National Mortgage Association (GNMA) (continued) | Company Act of 1940 (controls 5.0% or more of the outstanding voting | ||||||||||||||
6.00%, 03/20/2028 | $ | 3 | $ | 3 | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||||
6.00%, 06/20/2028 | 14 | 15 | information. | ||||||||||||
6.00%, 07/20/2028 | 7 | 8 | (b) | Current yield shown is as of period end. | |||||||||||
6.00%, 02/20/2029 | 8 | 9 | (c) | Certain variable rate securities are not based on a published reference rate | |||||||||||
6.00%, 03/20/2029 | 16 | 17 | and spread but are determined by the issuer or agent and are based on current | ||||||||||||
6.00%, 07/20/2029 | 18 | 19 | market conditions. These securities do not indicate a reference rate and | ||||||||||||
6.00%, 07/20/2033 | 123 | 133 | spread in their description. Rate shown is the rate in effect as of period end. | ||||||||||||
6.50%, 12/20/2025 | 10 | 10 | (d) | Security is an Interest Only Strip. | |||||||||||
6.50%, 01/20/2026 | 6 | 6 | (e) | Security exempt from registration under Rule 144A of the Securities Act of | |||||||||||
6.50%, 02/20/2026 | 7 | 7 | 1933. These securities may be resold in transactions exempt from registration, | ||||||||||||
6.50%, 03/20/2031 | 11 | 12 | normally to qualified institutional buyers. At the end of the period, the value of | ||||||||||||
6.50%, 04/20/2031 | 12 | 13 | these securities totaled $11,942 or 5.37% of net assets. | ||||||||||||
7.00%, 01/15/2028 | 1 | 1 | |||||||||||||
7.00%, 01/15/2028 | 1 | 1 | Portfolio Summary (unaudited) | ||||||||||||
7.00%, 01/15/2028 | 1 | 1 | Sector | Percent | |||||||||||
7.00%, 01/15/2028 | 3 | 3 | Mortgage Securities | 88.67 | % | ||||||||||
7.00%, 01/15/2028 | 4 | 5 | Government | 9.96 | % | ||||||||||
7.00%, 03/15/2028 | 58 | 60 | Asset Backed Securities | 1.17 | % | ||||||||||
7.00%, 05/15/2028 | 7 | 7 | Investment Companies | 0.58 | % | ||||||||||
7.00%, 01/15/2029 | 12 | 13 | Other Assets and Liabilities | (0.38 | )% | ||||||||||
7.00%, 03/15/2029 | 4 | 4 | TOTAL NET ASSETS | 100.00 | % | ||||||||||
7.00%, 05/15/2031 | 8 | 10 | |||||||||||||
7.00%, 09/15/2031 | 30 | 34 | |||||||||||||
7.00%, 06/15/2032 | 120 | 133 | |||||||||||||
7.50%, 02/15/2023 | 1 | 1 | |||||||||||||
7.50%, 02/15/2023 | 1 | 1 | |||||||||||||
7.50%, 04/15/2023 | 7 | 7 | |||||||||||||
7.50%, 09/15/2023 | 2 | 2 | |||||||||||||
7.50%, 09/15/2023 | 1 | 1 | |||||||||||||
7.50%, 10/15/2023 | 4 | 4 | |||||||||||||
7.50%, 11/15/2023 | 3 | 3 | |||||||||||||
8.00%, 07/15/2026 | 1 | 1 | |||||||||||||
8.00%, 08/15/2026 | 2 | 2 | |||||||||||||
8.00%, 01/15/2027 | 1 | 1 | |||||||||||||
8.00%, 02/15/2027 | 1 | 1 | |||||||||||||
$ | 16,822 | ||||||||||||||
U.S. Treasury- 9.96% | |||||||||||||||
1.13%, 03/31/2020 | 1,500 | 1,474 | |||||||||||||
2.00%, 02/15/2025 | 2,700 | 2,612 | |||||||||||||
2.13%, 12/31/2022 | 2,400 | 2,366 | |||||||||||||
3.13%, 05/15/2021 | 2,500 | 2,537 | |||||||||||||
4.25%, 11/15/2040 | 2,550 | 3,082 | |||||||||||||
4.50%, 02/15/2036 | 2,000 | 2,465 | |||||||||||||
5.25%, 11/15/2028 | 2,800 | 3,410 | |||||||||||||
6.25%, 08/15/2023 | 3,600 | 4,182 | |||||||||||||
$ | 22,128 | ||||||||||||||
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY | |||||||||||||||
OBLIGATIONS | $ | 155,215 | |||||||||||||
Total Investments | $ | 223,088 | |||||||||||||
Other Assets and Liabilities - (0.38)% | (849 | ) | |||||||||||||
TOTAL NET ASSETS - 100.00% | $ | 222,239 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||||
Value | Cost | Proceeds | Value | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 2,862 | $ | 53,917 | $ | 55,501 | $ | 1,278 | |||||||
$ | 2,862 | $ | 53,917 | $ | 55,501 | $ | 1,278 | ||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 40 | $ | — | $ | — | $ | — | |||||||
$ | 40 | $ | — | $ | — | $ | — | ||||||||
Amounts in thousands |
See accompanying notes.
58
Schedule of Investments | ||||||||||
Income Account | ||||||||||
December 31, 2018 | ||||||||||
COMMON STOCKS - 2.97% | Shares Held Value (000's) | Principal | ||||||||
Electric - 0.16% | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
GenOnEnergy - Class A(a),(b) | 2,032 | $ | 284 | Beverages (continued) | ||||||
Oil & Gas - 0.21% | Anheuser-Busch InBevWorldwideInc | |||||||||
Riviera Resources Inc/Linn(a) | 16,155 | 255 | 2.50%, 07/15/2022 | $ | 750 | $ | 716 | |||
Roan Resources Inc(a) | 16,155 | 136 | $ | 1,653 | ||||||
$ | 391 | Biotechnology- 2.45% | ||||||||
Transportation - 2.60% | Amgen Inc | |||||||||
Trailer BridgeInc(a),(b),(c),(d) | 25,472 | 4,735 | 3.63%, 05/15/2022 | 500 | 504 | |||||
TOTAL COMMON STOCKS | $ | 5,410 | 3.88%, 11/15/2021 | 1,000 | 1,013 | |||||
INVESTMENT COMPANIES - 0.99% | Shares Held Value (000's) | Celgene Corp | ||||||||
Money Market Funds- 0.99% | 3.45%, 11/15/2027 | 500 | 455 | |||||||
Principal Government Money Market Fund | 1,795,275 | 1,795 | 3.90%, 02/20/2028 | 500 | 469 | |||||
2.11%(e),(f) | Gilead SciencesInc | |||||||||
TOTAL INVESTMENT COMPANIES | $ | 1,795 | 3.65%, 03/01/2026 | 1,000 | 980 | |||||
Principal | 4.40%, 12/01/2021 | 1,000 | 1,032 | |||||||
BONDS- 60.34% | Amount (000's) Value (000's) | $ | 4,453 | |||||||
Apparel - 0.23% | Chemicals - 0.13% | |||||||||
UnderArmour Inc | Westlake Chemical Corp | |||||||||
3.25%, 06/15/2026 | $ | 500 | $ | 419 | 3.60%, 08/15/2026 | 250 | 229 | |||
Automobile Floor Plan Asset Backed Securities- 1.51% | Commercial Services - 0.68% | |||||||||
Ally Master Owner Trust | ERAC USA Finance LLC | |||||||||
2.89%, 06/15/2022 | 1,000 | 1,002 | 7.00%, 10/15/2037(g) | 1,000 | 1,243 | |||||
1.00 x 1 Month USD LIBOR + 0.43% | Computers - 0.93% | |||||||||
Ford Credit Floorplan Master Owner Trust A | Apple Inc | |||||||||
2.86%, 10/15/2023 | 1,000 | 997 | 2.40%, 05/03/2023 | 1,750 | 1,692 | |||||
1.00 x 1 Month USD LIBOR + 0.40% | Credit Card Asset Backed Securities- 0.28% | |||||||||
Navistar Financial Dealer Note Master Owner | Cabela's Credit Card Master Note Trust | |||||||||
Trust II | 3.13%, 07/17/2023 | 500 | 501 | |||||||
3.14%, 09/25/2023(g) | 750 | 750 | 1.00 x 1 Month USD LIBOR + 0.67% | |||||||
1.00 x 1 Month USD LIBOR + 0.63% | Diversified Financial Services- 1.02% | |||||||||
$ | 2,749 | Jefferies Group LLC | ||||||||
Banks- 9.28% | 6.25%, 01/15/2036 | 1,425 | 1,429 | |||||||
Bank of New York Mellon Corp/The | Jefferies Group LLC / Jefferies Group Capital | |||||||||
2.80%, 05/04/2026 | 500 | 471 | Finance Inc | |||||||
Citigroup Inc | 4.15%, 01/23/2030 | 500 | 429 | |||||||
3.88%, 03/26/2025 | 1,000 | 967 | $ | 1,858 | ||||||
4.50%, 01/14/2022 | 1,000 | 1,022 | Electric - 7.79% | |||||||
Goldman Sachs GroupInc/The | Black Hills Corp | |||||||||
5.38%, 03/15/2020 | 2,000 | 2,045 | 4.35%, 05/01/2033 | 500 | 501 | |||||
ING Bank NV | Entergy Louisiana LLC | |||||||||
5.00%, 06/09/2021(g) | 1,000 | 1,036 | 3.25%, 04/01/2028 | 500 | 481 | |||||
JPMorgan Chase & Co | 4.20%, 09/01/2048 | 500 | 493 | |||||||
3.63%, 05/13/2024 | 1,000 | 993 | Entergy Texas Inc | |||||||
5.99%, 04/29/2049(h) | 717 | 707 | 2.55%, 06/01/2021 | 500 | 492 | |||||
3 Month USD LIBOR + 3.47% | GenOnEnergy Inc - Escrow | |||||||||
Morgan Stanley | 0.00%, 10/15/2020(a),(b),(d) | 750 | — | |||||||
5.50%, 07/28/2021 | 1,000 | 1,048 | GenOnEnergy Inc/ NRG AmericasInc | |||||||
6.25%, 08/09/2026 | 850 | 941 | 9.39%, 12/01/2023 | 163 | 159 | |||||
PNC Financial Services Group Inc/The | 3 Month USD LIBOR + 6.50% | |||||||||
6.75%, 07/29/2049(h),(i) | 2,000 | 2,032 | LG&E & KU Energy LLC | |||||||
3 Month USD LIBOR + 3.68% | 4.38%, 10/01/2021 | 1,000 | 1,016 | |||||||
SunTrust Bank/Atlanta GA | Metropolitan Edison Co | |||||||||
2.75%, 05/01/2023 | 1,000 | 966 | 3.50%, 03/15/2023(g) | 1,000 | 995 | |||||
SunTrust Banks Inc | OncorElectric Delivery Co LLC | |||||||||
2.70%, 01/27/2022 | 500 | 488 | 5.75%, 03/15/2029(g) | 2,000 | 2,334 | |||||
US Bancorp | PacifiCorp | |||||||||
3.15%, 04/27/2027 | 2,000 | 1,916 | 5.25%, 06/15/2035 | 850 | 948 | |||||
3.60%, 09/11/2024 | 250 | 249 | 6.25%, 10/15/2037 | 500 | 624 | |||||
Wells Fargo & Co | Solar Star Funding LLC | |||||||||
6.56%, 12/31/2049(h) | 2,000 | 1,987 | 5.38%, 06/30/2035(g) | 1,424 | 1,524 | |||||
3 Month USD LIBOR + 3.77% | Southwestern Electric Power Co | |||||||||
$ | 16,868 | 3.55%, 02/15/2022 | 1,000 | 1,002 | ||||||
Beverages- 0.91% | 3.85%, 02/01/2048 | 1,000 | 888 | |||||||
Anheuser-Busch Cos LLC / Anheuser-Busch | TransAlta Corp | |||||||||
InBevWorldwideInc | 4.50%, 11/15/2022 | 1,750 | 1,702 | |||||||
3.65%, 02/01/2026(g) | 500 | 473 | Tucson Electric Power Co | |||||||
4.70%, 02/01/2036(g) | 500 | 464 | 3.85%, 03/15/2023 | 1,000 | 997 | |||||
$ | 14,156 | |||||||||
See accompanying notes. | 59 |
Schedule of Investments | ||||||||||
Income Account | ||||||||||
December 31, 2018 | ||||||||||
Principal | Principal | |||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | |||||||
Electronics - 0.39% | Oil & Gas (continued) | |||||||||
Corning Inc | XTO EnergyInc | |||||||||
4.75%, 03/15/2042 | $ | 750 | $ | 714 | 6.75%, 08/01/2037 | $ | 1,000 | $ | 1,324 | |
Environmental Control - 0.82% | $ | 7,770 | ||||||||
Advanced Disposal ServicesInc | Oil & Gas Services - 2.54% | |||||||||
5.63%, 11/15/2024(g) | 500 | 489 | ArchrockPartners LP /Archrock Partners Finance | |||||||
Republic Services Inc | Corp | |||||||||
3.55%, 06/01/2022 | 1,000 | 1,004 | 6.00%, 04/01/2021 | 2,000 | 1,920 | |||||
$ | 1,493 | Schlumberger Holdings Corp | ||||||||
Food - 0.27% | 3.63%, 12/21/2022(g) | 500 | 498 | |||||||
Kraft Heinz Foods Co | 4.00%, 12/21/2025(g) | 500 | 494 | |||||||
3.95%, 07/15/2025 | 500 | 484 | Weatherford International Ltd | |||||||
Healthcare - Services - 1.79% | 4.50%, 04/15/2022 | 250 | 146 | |||||||
Encompass Health Corp | 5.13%, 09/15/2020 | 2,000 | 1,560 | |||||||
5.75%, 11/01/2024 | 500 | 495 | $ | 4,618 | ||||||
HCA Inc | Other Asset Backed Securities- 1.87% | |||||||||
7.50%, 11/06/2033 | 250 | 263 | Drug Royalty II LP 2 | |||||||
Roche HoldingsInc | 3.48%, 07/15/2023(g) | 377 | 376 | |||||||
3.14%, 09/30/2019(g) | 500 | 500 | Drug Royalty III LP 1 | |||||||
3 Month USD LIBOR + 0.34% | 4.94%, 04/15/2027(g) | 506 | 510 | |||||||
Surgery Center HoldingsInc | 1.00 x 3 Month USD LIBOR + 2.50% | |||||||||
8.88%, 04/15/2021(g) | 2,000 | 1,995 | PFS Financing Corp | |||||||
$ | 3,253 | 3.04%, 03/15/2021(g) | 500 | 500 | ||||||
Housewares - 0.27% | 1.00 x 1 Month USD LIBOR + 0.58% | |||||||||
Newell BrandsInc | TrafiguraSecuritisationFinance PLC 2017-1 | |||||||||
4.20%, 04/01/2026 | 500 | 489 | 3.31%, 12/15/2020(g) | 1,000 | 1,005 | |||||
Insurance - 2.21% | 1.00 x 1 Month USD LIBOR + 0.85% | |||||||||
Fidelity National FinancialInc | Verizon Owner Trust 2017-3 | |||||||||
4.50%, 08/15/2028(g) | 1,000 | 988 | 2.74%, 04/20/2022(g) | 1,000 | 1,000 | |||||
First American Financial Corp | 1.00 x 1 Month USD LIBOR + 0.27% | |||||||||
4.30%, 02/01/2023 | 2,000 | 2,008 | $ | 3,391 | ||||||
Prudential FinancialInc | Packaging & Containers - 0.55% | |||||||||
7.38%, 06/15/2019 | 1,000 | 1,018 | Sealed Air Corp | |||||||
$ | 4,014 | 6.88%, 07/15/2033(g) | 1,000 | 998 | ||||||
Internet - 0.40% | Pharmaceuticals - 0.53% | |||||||||
Amazon.comInc | AbbVieInc | |||||||||
4.05%, 08/22/2047 | 750 | 733 | 2.90%, 11/06/2022 | 1,000 | 973 | |||||
Iron & Steel - 0.82% | Pipelines - 4.32% | |||||||||
Allegheny Technologies Inc | ANR Pipeline Co | |||||||||
5.95%, 01/15/2021 | 1,000 | 980 | 9.63%, 11/01/2021 | 1,000 | 1,159 | |||||
7.88%, 08/15/2023 | 500 | 510 | Buckeye Partners LP | |||||||
$ | 1,490 | 3.95%, 12/01/2026 | 500 | 439 | ||||||
Media - 3.12% | 4.35%, 10/15/2024 | 500 | 485 | |||||||
21st Century Fox America Inc | Columbia Pipeline Group Inc | |||||||||
6.40%, 12/15/2035 | 1,000 | 1,248 | 4.50%, 06/01/2025 | 1,000 | 1,007 | |||||
Comcast Corp | El Paso Natural Gas Co LLC | |||||||||
6.45%, 03/15/2037 | 2,000 | 2,385 | 7.50%, 11/15/2026 | 2,100 | 2,438 | |||||
Time Warner Cable LLC | Plains All American Pipeline LP / PAA Finance | |||||||||
6.55%, 05/01/2037 | 1,500 | 1,539 | Corp | |||||||
6.75%, 06/15/2039 | 500 | 508 | 4.50%, 12/15/2026 | 500 | 482 | |||||
$ | 5,680 | Southeast Supply Header LLC | ||||||||
4.25%, 06/15/2024(g) | 750 | 756 | ||||||||
Oil & Gas - 4.27% | Southern Natural Gas Co LLC | |||||||||
BP Capital Markets America Inc | 8.00%, 03/01/2032 | 850 | 1,081 | |||||||
3.94%, 09/21/2028 | 1,000 | 1,003 | $ | 7,847 | ||||||
Nabors IndustriesInc | ||||||||||
5.00%, 09/15/2020 | 1,000 | 962 | REITs - 7.95% | |||||||
5.50%, 01/15/2023 | 250 | 198 | Alexandria Real Estate EquitiesInc | |||||||
Petro-Canada | 4.30%, 01/15/2026 | 1,000 | 1,000 | |||||||
9.25%, 10/15/2021 | 1,075 | 1,231 | 4.60%, 04/01/2022 | 1,250 | 1,287 | |||||
Phillips 66 | CBL & Associates LP | |||||||||
4.30%, 04/01/2022 | 1,000 | 1,027 | 5.95%, 12/15/2026 | 500 | 382 | |||||
Rowan Cos Inc | CubeSmart LP | |||||||||
4.88%, 06/01/2022 | 750 | 619 | 4.80%, 07/15/2022 | 2,000 | 2,068 | |||||
W&T OffshoreInc | Healthcare Realty Trust Inc | |||||||||
9.75%, 11/01/2023(g) | 250 | 219 | 3.63%, 01/15/2028 | 1,000 | 939 | |||||
Whiting Petroleum Corp | ||||||||||
5.75%, 03/15/2021 | 1,250 | 1,187 |
See accompanying notes.
60
Schedule of Investments | |||||||||||
Income Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | U.S. GOVERNMENT & GOVERNMENT | Principal | |||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | AGENCY OBLIGATIONS (continued) | Amount (000’s) Value (000’s) | ||||||||
REITs (continued) | Federal Home Loan Mortgage Corporation (FHLMC) (continued) | ||||||||||
Hospitality Properties Trust | 4.00%, 02/01/2045 | $ | 366 | $ | 374 | ||||||
4.65%, 03/15/2024 | $ | 750 | $ | 748 | 4.00%, 02/01/2046 | 686 | 701 | ||||
4.95%, 02/15/2027 | 1,000 | 980 | 4.00%, 06/01/2046 | 742 | 759 | ||||||
5.00%, 08/15/2022 | 750 | 766 | 4.50%, 07/01/2039 | 744 | 779 | ||||||
Omega Healthcare InvestorsInc | 4.50%, 10/01/2041 | 415 | 434 | ||||||||
5.25%, 01/15/2026 | 500 | 509 | 5.00%, 08/01/2019 | 10 | 10 | ||||||
Physicians Realty LP | 9.00%, 01/01/2025 | 2 | 3 | ||||||||
4.30%, 03/15/2027 | 1,000 | 971 | $ | 10,218 | |||||||
Ventas Realty LP / Ventas Capital Corp | Federal National Mortgage Association (FNMA) - 13.73% | ||||||||||
3.25%, 08/15/2022 | 1,750 | 1,729 | 3.00%, 03/01/2042 | 1,032 | 1,015 | ||||||
Welltower Inc | 3.00%, 03/01/2042 | 944 | 928 | ||||||||
6.13%, 04/15/2020 | 1,000 | 1,031 | 3.00%, 05/01/2042 | 529 | 520 | ||||||
Weyerhaeuser Co | 3.00%, 06/01/2042 | 474 | 466 | ||||||||
4.70%, 03/15/2021 | 2,000 | 2,050 | 3.00%, 06/01/2042 | 961 | 946 | ||||||
$ | 14,460 | 3.50%, 12/01/2040 | 752 | 758 | |||||||
Savings & Loans - 0.30% | 3.50%, 12/01/2041 | 249 | 251 | ||||||||
First Niagara Financial Group Inc | 3.50%, 03/01/2042 | 421 | 425 | ||||||||
7.25%, 12/15/2021 | 500 | 547 | 3.50%, 04/01/2042 | 817 | 823 | ||||||
Software - 0.80% | 3.50%, 02/01/2043 | 537 | 541 | ||||||||
Oracle Corp | 3.50%, 03/01/2045 | 655 | 658 | ||||||||
2.50%, 05/15/2022 | 500 | 489 | 3.50%, 06/01/2045 | 1,227 | 1,231 | ||||||
2.95%, 05/15/2025 | 1,000 | 957 | 3.50%, 11/01/2045 | 846 | 849 | ||||||
$ | 1,446 | 3.50%, 05/01/2046 | 756 | 758 | |||||||
Telecommunications - 1.91% | 4.00%, 09/01/2040 | 1,018 | 1,047 | ||||||||
Qwest Corp | 4.00%, 10/01/2041 | 535 | 551 | ||||||||
6.75%, 12/01/2021 | 2,000 | 2,045 | 4.00%, 10/01/2041 | 368 | 378 | ||||||
Sprint Corp | 4.00%, 11/01/2041 | 591 | 607 | ||||||||
7.88%, 09/15/2023 | 250 | 256 | 4.00%, 04/01/2042 | 330 | 339 | ||||||
Sprint Spectrum Co LLC / Sprint Spectrum Co II | 4.00%, 11/01/2043 | 453 | 465 | ||||||||
LLC / Sprint Spectrum Co III LLC | 4.00%, 11/01/2043 | 1,238 | 1,274 | ||||||||
3.36%, 03/20/2023(g) | 172 | 170 | 4.00%, 02/01/2044 | 1,453 | 1,494 | ||||||
5.15%, 03/20/2028(g) | 500 | 491 | 4.00%, 09/01/2044 | 434 | 443 | ||||||
T-Mobile USA Inc | 4.00%, 09/01/2045 | 1,391 | 1,420 | ||||||||
6.38%, 03/01/2025 | 500 | 505 | 4.00%, 08/01/2046 | 1,075 | 1,102 | ||||||
$ | 3,467 | 4.00%, 01/01/2047 | 790 | 807 | |||||||
Transportation - 0.00% | 4.50%, 08/01/2040 | 631 | 661 | ||||||||
Trailer BridgeInc | 4.50%, 12/01/2040 | 394 | 413 | ||||||||
0.00%, 11/15/2019(a),(b),(d) | 2,000 | — | 4.50%, 08/01/2041 | 412 | 431 | ||||||
TOTAL BONDS | $ | 109,688 | 4.50%, 05/01/2044 | 557 | 580 | ||||||
Principal | 4.50%, 06/01/2046 | 587 | 608 | ||||||||
CONVERTIBLE BONDS- 0.65% | Amount (000's) Value (000's) | 4.50%, 05/01/2047 | 1,657 | 1,717 | |||||||
4.50%, 05/01/2047 | 385 | 399 | |||||||||
Insurance - 0.65% | 6.50%, 04/01/2032 | 38 | 42 | ||||||||
AmTrust Financial Services Inc | $ | 24,947 | |||||||||
2.75%, 12/15/2044 | 1,250 | 1,175 | |||||||||
TOTAL CONVERTIBLE BONDS | $ | 1,175 | Government National Mortgage Association (GNMA) - 0.00% | ||||||||
SENIOR FLOATING RATE INTERESTS | Principal | 9.00%, 02/15/2025 | 2 | 2 | |||||||
- 0.66 | % | Amount (000's) Value (000's) | U.S. Treasury- 14.57% | ||||||||
Pipelines - 0.27% | 1.63%, 11/15/2022 | 1,000 | 968 | ||||||||
BCP Renaissance Parent LLC | 1.75%, 05/15/2022 | 2,000 | 1,953 | ||||||||
6.03%, 10/31/2024(j) | $ | 498 | $ | 483 | 2.00%, 11/15/2021 | 1,000 | 987 | ||||
US LIBOR + 3.50% | 2.00%, 11/15/2026 | 1,000 | 955 | ||||||||
2.25%, 08/15/2027 | 1,000 | 968 | |||||||||
Software - 0.39% | 2.50%, 05/15/2024 | 1,000 | 998 | ||||||||
Ivanti Software Inc | 2.63%, 11/15/2020 | 2,000 | 2,004 | ||||||||
11.35%, 01/20/2025(j) | 750 | 713 | 2.75%, 02/15/2024 | 1,000 | 1,011 | ||||||
US LIBOR + 9.00% | 2.75%, 11/15/2047 | 1,000 | 946 | ||||||||
TOTAL SENIOR FLOATING RATE INTERESTS | $ | 1,196 | 2.88%, 05/15/2043 | 1,000 | 976 | ||||||
U.S. GOVERNMENT & GOVERNMENT | Principal | 2.88%, 08/15/2045 | 1,000 | 974 | |||||||
AGENCY OBLIGATIONS- 33.92% | Amount (000's) Value (000's) | 2.88%, 11/15/2046 | 1,000 | 972 | |||||||
Federal Home Loan Mortgage Corporation (FHLMC) - 5.62% | 3.00%, 11/15/2044 | 1,000 | 998 | ||||||||
3.00%, 10/01/2042 | $ | 564 | $ | 555 | 3.13%, 05/15/2021 | 1,000 | 1,015 | ||||
3.00%, 11/01/2042 | 566 | 557 | 3.13%, 08/15/2044 | 1,000 | 1,021 | ||||||
3.00%, 12/01/2046 | 1,379 | 1,346 | 3.38%, 05/15/2044 | 1,000 | 1,065 | ||||||
3.50%, 10/01/2041 | 555 | 559 | 3.38%, 11/15/2048 | 1,000 | 1,069 | ||||||
3.50%, 04/01/2042 | 679 | 684 | 3.50%, 02/15/2039 | 1,000 | 1,094 | ||||||
3.50%, 04/01/2042 | 1,380 | 1,390 | 3.63%, 02/15/2020 | 2,000 | 2,022 | ||||||
3.50%, 04/01/2045 | 640 | 642 | 3.63%, 02/15/2044 | 1,000 | 1,108 | ||||||
3.50%, 03/01/2048 | 1,421 | 1,425 | 3.75%, 08/15/2041 | 1,000 | 1,128 |
See accompanying notes.
61
Schedule of Investments Income Account December 31, 2018
U.S. GOVERNMENT & GOVERNMENT | Principal | (g) | Security exempt from registration under Rule 144A of the Securities Act of | ||||||||
AGENCY OBLIGATIONS (continued) | Amount (000’s) | Value (000’s) | 1933. These securities may be resold in transactions exempt from registration, | ||||||||
U.S. Treasury (continued) | normally to qualified institutional buyers. At the end of the period, the value of | ||||||||||
3.75%, 11/15/2043 | $ | 2,000 | $ | 2,259 | these securities totaled $19,808 or 10.90% of net assets. | ||||||
$ | 26,491 | (h) | Perpetual security. Perpetual securities pay an indefinite stream of interest, | ||||||||
TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY | but they may be called by the issuer at an earlier date. Date shown, if any, | ||||||||||
OBLIGATIONS | $ | 61,658 | reflects the next call date or final legal maturity date. Rate shown is as of | ||||||||
Total Investments | $ | 180,922 | period end. | ||||||||
Other Assets and Liabilities - 0.47% | 849 | (i) | Rate shown is as of period end. The rate may be a variable or floating rate or | ||||||||
TOTAL NET ASSETS - 100.00% | $ | 181,771 | a fixed rate which may convert to a variable or floating rate in the future. | ||||||||
(j) | Rate information disclosed is based on an average weighted rate of the | ||||||||||
underlying tranches as of period end. | |||||||||||
(a) | Non-income producing security | ||||||||||
(b) | The value of these investments was determined using significant unobservable | ||||||||||
inputs. | Portfolio Summary (unaudited) | ||||||||||
(c) | Restricted Security. Please see Restricted Security Sub-Schedule for more | Sector | Percent | ||||||||
information. | Financial | 21.41 | % | ||||||||
(d) | Fair value of these investments is determined in good faith by the Manager | Mortgage Securities | 19.35 | % | |||||||
under procedures established and periodically reviewed by the Board of | Government | 14.57 | % | ||||||||
Directors. Certain inputs used in the valuation may be unobservable; however, | Energy | 11.61 | % | ||||||||
each security is evaluated individually for purposes of ASC 820 which results | Utilities | 7.95 | % | ||||||||
in not all securities being identified as Level 3 of the fair value hierarchy. At | Consumer, Non-cyclical | 6.63 | % | ||||||||
the end of the period, the fair value of these securities totaled $4,735 or 2.60% | Communications | 5.43 | % | ||||||||
of net assets. | Industrial | 4.36 | % | ||||||||
(e) | Affiliated Security. Security is either an affiliate (and registered under the | Asset Backed Securities | 3.66 | % | |||||||
Investment Company Act of 1940) or an affiliate as defined by the Investment | Technology | 2.12 | % | ||||||||
Company Act of 1940 (controls 5.0% or more of the outstanding voting | Investment Companies | 0.99 | % | ||||||||
shares of the security). Please see affiliated sub-schedule for transactional | Basic Materials | 0.95 | % | ||||||||
information. | Consumer, Cyclical | 0.50 | % | ||||||||
(f) | Current yield shown is as of period end. | Other Assets and Liabilities | 0.47 | % | |||||||
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 8,980 | $ | 51,346 | $ | 58,531 | $ | 1,795 | |||
$ | 8,980 | $ | 51,346 | $ | 58,531 | $ | 1,795 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 76 | $ | — | $ | — | $ | — | |||
$ | 76 | $ | — | $ | — | $ | — |
Amounts in thousands | ||||||||||
Restricted Securities | ||||||||||
Security Name | Acquisition Date | Cost | Value | Percent of Net Assets | ||||||
Trailer BridgeInc | 05/07/2012-12/22/2016 | $ | 2,764 | $ | 4,735 | 2.60 | % | |||
Total | $ | 4,735 | 2.60 | % | ||||||
Amounts in thousands. |
See accompanying notes.
62
Schedule of Investments | |||||||||||
LargeCap Growth Account | |||||||||||
December 31, 2018 | |||||||||||
COMMON STOCKS - 97.40% | Shares Held Value (000's) | COMMON STOCKS (continued) | Shares Held Value (000’s) | ||||||||
Apparel - 2.07% | Retail (continued) | ||||||||||
NIKEInc | 28,000 | $ | 2,076 | Ulta Beauty Inc(a) | 6,000 | $ | 1,469 | ||||
Banks- 1.69% | $ | 7,878 | |||||||||
SVB Financial Group(a) | 8,915 | 1,693 | Semiconductors - 4.76% | ||||||||
Beverages- 2.28% | Intel Corp | 30,600 | 1,436 | ||||||||
Coca-Cola Co/The | 48,300 | 2,287 | QUALCOMMInc | 26,700 | 1,519 | ||||||
Biotechnology- 2.08% | XilinxInc | 21,400 | 1,823 | ||||||||
Vertex PharmaceuticalsInc(a) | 12,604 | 2,089 | $ | 4,778 | |||||||
Chemicals - 1.91% | Software - 7.60% | ||||||||||
CF Industries HoldingsInc | 43,900 | 1,910 | Microsoft Corp | 53,330 | 5,417 | ||||||
Commercial Services - 3.23% | ServiceNow Inc(a) | 12,393 | 2,206 | ||||||||
FleetCor Technologies Inc(a) | 8,433 | 1,566 | $ | 7,623 | |||||||
WorldpayInc(a) | 21,900 | 1,674 | Telecommunications - 2.46% | ||||||||
$ | 3,240 | Cisco Systems Inc | 56,850 | 2,463 | |||||||
Computers - 3.75% | Transportation - 1.59% | ||||||||||
Apple Inc | 23,850 | 3,762 | CSX Corp | 25,700 | 1,597 | ||||||
Cosmetics & Personal Care - 3.27% | TOTAL COMMON STOCKS | $ | 97,684 | ||||||||
Estee Lauder CosInc/The | 15,161 | 1,973 | INVESTMENT COMPANIES - 2.32% | Shares Held Value (000's) | |||||||
Procter & Gamble Co/The | 14,200 | 1,305 | Money Market Funds- 2.32% | ||||||||
$ | 3,278 | Principal Government Money Market Fund | 2,326,191 | 2,326 | |||||||
Diversified Financial Services- 8.19% | 2.11%(b),(c) | ||||||||||
TOTAL INVESTMENT COMPANIES | $ | 2,326 | |||||||||
Capital One Financial Corp | 19,050 | 1,440 | Total Investments | $ | 100,010 | ||||||
MastercardInc | 15,548 | 2,933 | Other Assets and Liabilities - 0.28% | 280 | |||||||
VisaInc | 29,108 | 3,841 | TOTAL NET ASSETS - 100.00% | $ | 100,290 | ||||||
$ | 8,214 | ||||||||||
Engineering & Construction - 1.11% | |||||||||||
Jacobs Engineering GroupInc | 19,100 | 1,116 | (a) | Non-income producing security | |||||||
Entertainment - 0.65% | (b) | Affiliated Security. Security is either an affiliate (and registered under the | |||||||||
Live Nation Entertainment Inc(a) | 13,300 | 655 | Investment Company Act of 1940) or an affiliate as defined by the Investment | ||||||||
Healthcare - Products - 10.60% | Company Act of 1940 (controls 5.0% or more of the outstanding voting | ||||||||||
Abbott Laboratories | 18,600 | 1,345 | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||
ABIOMEDInc(a) | 4,400 | 1,430 | information. | ||||||||
Boston Scientific Corp(a) | 62,000 | 2,191 | (c) | Current yield shown is as of period end. | |||||||
Intuitive Surgical Inc(a) | 6,647 | 3,184 | |||||||||
ThermoFisher ScientificInc | 11,103 | 2,485 | Portfolio Summary (unaudited) | ||||||||
$ | 10,635 | Sector | Percent | ||||||||
Healthcare - Services - 1.04% | Consumer, Non-cyclical | 27.23 | % | ||||||||
WellCare Health Plans Inc(a) | 4,400 | 1,039 | Communications | 19.89 | % | ||||||
Internet - 17.43% | Technology | 18.57 | % | ||||||||
Alphabet Inc - A Shares(a) | 4,984 | 5,208 | Consumer, Cyclical | 10.58 | % | ||||||
Amazon.comInc(a) | 2,949 | 4,429 | Financial | 9.88 | % | ||||||
GrubHub Inc(a) | 20,800 | 1,598 | Industrial | 7.45 | % | ||||||
NetflixInc(a) | 7,932 | 2,123 | Investment Companies | 2.32 | % | ||||||
RingCentral Inc(a) | 25,800 | 2,127 | Basic Materials | 1.91 | % | ||||||
Twitter Inc(a) | 69,400 | 1,995 | Energy | 1.89 | % | ||||||
$ | 17,480 | Other Assets and Liabilities | 0.28 | % | |||||||
Machinery - Construction & Mining- 2.55% | TOTAL NET ASSETS | 100.00 | % | ||||||||
Caterpillar Inc | 20,147 | 2,560 | |||||||||
Machinery - Diversified- 2.20% | |||||||||||
Deere & Co | 14,796 | 2,207 | |||||||||
Office & Business Equipment- 2.46% | |||||||||||
Zebra Technologies Corp(a) | 15,500 | 2,468 | |||||||||
Oil & Gas - 1.89% | |||||||||||
Diamondback EnergyInc | 10,987 | 1,018 | |||||||||
Pioneer Natural Resources Co | 6,650 | 875 | |||||||||
$ | 1,893 | ||||||||||
Pharmaceuticals - 4.73% | |||||||||||
DexCom Inc(a) | 13,900 | 1,665 | |||||||||
Eli Lilly & Co | 16,600 | 1,921 | |||||||||
Sarepta Therapeutics Inc(a) | 10,600 | 1,157 | |||||||||
$ | 4,743 | ||||||||||
Retail - 7.86% | |||||||||||
Chipotle Mexican Grill Inc(a) | 3,400 | 1,468 | |||||||||
Five Below Inc(a) | 14,700 | 1,504 | |||||||||
Lululemon Athletica Inc(a) | 9,950 | 1,210 | |||||||||
Target Corp | 25,900 | 1,712 | |||||||||
Tiffany & Co | 6,400 | 515 |
See accompanying notes.
63
Schedule of Investments | |||||||||||
LargeCap Growth Account | |||||||||||
December 31, 2018 | |||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 1,377 | $ | 52,230 | $ | 51,281 | $ | 2,326 | |||
$ | 1,377 | $ | 52,230 | $ | 51,281 | $ | 2,326 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 32 | $ | — | $ | — | $ | — | |||
$ | 32 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
64
Schedule of Investments MidCap Account December 31, 2018
COMMON STOCKS - 99.52% | Shares Held Value (000's) | COMMON STOCKS (continued) | Shares Held Value (000’s) | |||||||
Aerospace & Defense - 4.60% | Machinery - Diversified- 1.72% | |||||||||
HEICO Corp - Class A | 12,485 | $ | 786 | Cognex Corp | 4,776 | $ | 185 | |||
TransDigm Group Inc(a) | 63,991 | 21,761 | Roper Technologies Inc | 30,870 | 8,227 | |||||
$ | 22,547 | $ | 8,412 | |||||||
Banks- 2.60% | Media - 4.75% | |||||||||
First Republic Bank/CA | 111,460 | 9,686 | Liberty Broadband Corp - A Shares(a) | 24,858 | 1,785 | |||||
M&T Bank Corp | 21,432 | 3,067 | Liberty Broadband Corp - C Shares(a) | 49,146 | 3,540 | |||||
$ | 12,753 | Liberty Global PLC - A Shares(a) | 17,556 | 375 | ||||||
Beverages- 0.52% | Liberty Global PLC - C Shares(a) | 226,412 | 4,673 | |||||||
Brown-Forman Corp - B Shares | 53,580 | 2,549 | Liberty Media Corp-Liberty Braves - A Shares(a) | 6,136 | 153 | |||||
Building Materials- 3.69% | Liberty Media Corp-Liberty Braves - C Shares(a) | 22,134 | 551 | |||||||
Martin Marietta Materials Inc | 46,618 | 8,012 | Liberty Media Corp-Liberty Formula One - A | 20,688 | 615 | |||||
Summit Materials Inc(a) | 115,953 | 1,438 | Shares(a) | |||||||
Vulcan Materials Co | 87,365 | 8,632 | Liberty Media Corp-Liberty Formula One - C | 182,853 | 5,614 | |||||
$ | 18,082 | Shares(a) | ||||||||
Chemicals - 1.24% | Liberty Media Corp-Liberty SiriusXM- A Shares | 39,220 | 1,443 | |||||||
(a) | ||||||||||
Air Products & ChemicalsInc | 38,065 | 6,091 | Liberty Media Corp-Liberty SiriusXM- C Shares | 122,236 | 4,520 | |||||
Commercial Services - 11.63% | (a) | |||||||||
AMERCO | 11,238 | 3,687 | $ | 23,269 | ||||||
Gartner Inc(a) | 118,870 | 15,197 | ||||||||
IHS MarkitLtd(a) | 195,372 | 9,372 | Miscellaneous Manufacturers - 0.88% | |||||||
Moody's Corp | 33,872 | 4,744 | Colfax Corp(a) | 207,274 | 4,332 | |||||
S&P Global Inc | 27,451 | 4,665 | Pharmaceuticals - 0.04% | |||||||
TransUnion | 158,069 | 8,978 | Elanco Animal Health Inc(a) | 6,823 | 215 | |||||
Verisk AnalyticsInc(a) | 95,076 | 10,367 | Private Equity- 7.43% | |||||||
$ | 57,010 | Brookfield Asset ManagementInc | 541,865 | 20,780 | ||||||
Distribution & Wholesale - 3.65% | Kennedy-Wilson HoldingsInc | 226,229 | 4,111 | |||||||
Copart Inc(a) | 201,296 | 9,618 | KKR & CoInc | 290,780 | 5,708 | |||||
Fastenal Co | 56,288 | 2,943 | Onex Corp | 107,062 | 5,832 | |||||
HD Supply HoldingsInc(a) | 63,426 | 2,380 | $ | 36,431 | ||||||
KAR Auction ServicesInc | 61,542 | 2,937 | Real Estate - 3.50% | |||||||
$ | 17,878 | Brookfield Business Partners LP | 17,461 | 531 | ||||||
Electric - 1.97% | Brookfield Property Partners LP | 98,617 | 1,590 | |||||||
Brookfield Infrastructure Partners LP | 222,049 | 7,667 | CBRE Group Inc(a) | 245,059 | 9,812 | |||||
Brookfield Renewable Partners LP | 76,562 | 1,983 | Howard Hughes Corp/The(a) | 53,407 | 5,213 | |||||
$ | 9,650 | $ | 17,146 | |||||||
Electronics - 1.41% | REITs - 5.22% | |||||||||
Mettler-Toledo InternationalInc(a) | 12,226 | 6,915 | Equinix Inc | 13,128 | 4,628 | |||||
Entertainment - 2.39% | SBA Communications Corp(a) | 129,452 | 20,957 | |||||||
Live Nation Entertainment Inc(a) | 116,140 | 5,720 | $ | 25,585 | ||||||
Vail ResortsInc | 28,350 | 5,977 | Retail - 10.94% | |||||||
$ | 11,697 | CarMax Inc(a) | 234,145 | 14,688 | ||||||
Healthcare - Products - 0.63% | Dollar General Corp | 54,138 | 5,851 | |||||||
IDEXX LaboratoriesInc(a) | 16,525 | 3,074 | O'Reilly AutomotiveInc(a) | 54,240 | 18,677 | |||||
Restaurant Brands InternationalInc | 263,599 | 13,786 | ||||||||
Home Builders- 1.35% | Ross Stores Inc | 7,108 | 591 | |||||||
Lennar Corp - A Shares | 101,516 | 3,975 | $ | 53,593 | ||||||
Lennar Corp - B Shares | 1,475 | 46 | ||||||||
NVRInc(a) | 1,060 | 2,583 | Semiconductors - 1.46% | |||||||
$ | 6,604 | Microchip Technology Inc | 99,441 | 7,152 | ||||||
Insurance - 10.79% | Software - 8.02% | |||||||||
Aon PLC | 33,747 | 4,905 | ANSYS Inc(a) | 55,411 | 7,920 | |||||
Arch Capital Group Ltd(a) | 283,059 | 7,563 | AutodeskInc(a) | 54,691 | 7,034 | |||||
Brown & Brown Inc | 250,786 | 6,912 | Black KnightInc(a) | 230,240 | 10,375 | |||||
Fidelity National FinancialInc | 327,407 | 10,294 | CDK GlobalInc | 59,832 | 2,865 | |||||
Markel Corp(a) | 16,945 | 17,590 | Guidewire SoftwareInc(a) | 50,284 | 4,034 | |||||
Progressive Corp/The | 92,101 | 5,556 | MSCI Inc | 23,814 | 3,511 | |||||
TrisuraGroup Ltd(a) | 4,276 | 82 | RealPage Inc(a) | 73,746 | 3,554 | |||||
$ | 52,902 | $ | 39,293 | |||||||
Internet - 4.12% | Telecommunications - 1.57% | |||||||||
Liberty Expedia HoldingsInc(a) | 37,692 | 1,474 | EchoStar Corp(a) | 22,033 | 809 | |||||
Shopify Inc(a) | 9,464 | 1,310 | GCI Liberty Inc(a) | 87,253 | 3,591 | |||||
VeriSignInc(a) | 78,835 | 11,691 | Motorola Solutions Inc | 28,509 | 3,280 | |||||
Wix.com Ltd(a) | 63,002 | 5,692 | $ | 7,680 | ||||||
$ | 20,167 | Textiles - 0.46% | ||||||||
Lodging - 2.94% | Mohawk IndustriesInc(a) | 19,338 | 2,262 | |||||||
Hilton Worldwide HoldingsInc | 139,161 | 9,992 | TOTAL COMMON STOCKS | $ | 487,713 | |||||
Hyatt Hotels Corp | 65,564 | 4,432 | ||||||||
$ | 14,424 |
See accompanying notes.
65
Schedule of Investments MidCap Account December 31, 2018
INVESTMENT COMPANIES - 1.01% | Shares Held Value (000's) | ||||
Money Market Funds- 1.01% | |||||
Principal Government Money Market Fund | 4,942,351 | $ | 4,942 | ||
2.11%(b),(c) | |||||
TOTAL INVESTMENT COMPANIES | $ | 4,942 | |||
Total Investments | $ | 492,655 | |||
Other Assets and Liabilities - (0.53)% | (2,580 | ) | |||
TOTAL NET ASSETS - 100.00% | $ | 490,075 |
(a) | Non-income producing security |
(b) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the InvestmentCompany Act of 1940 (controls 5.0% or more of the outstanding voting shares of the security). Please see affiliated sub-schedule for transactional information. |
(c) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Sector | Percent | ||
Financial | 29.54 | % | |
Consumer, Cyclical | 21.73 | % | |
Consumer, Non-cyclical | 12.82 | % | |
Industrial | 12.30 | % | |
Communications | 10.44 | % | |
Technology | 9.48 | % | |
Utilities | 1.97 | % | |
Basic Materials | 1.24 | % | |
Investment Companies | 1.01 | % | |
Other Assets and Liabilities | (0.53 | )% | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 1,423 | $ | 54,777 | $ | 51,258 | $ | 4,942 | |||
$ | 1,423 | $ | 54,777 | $ | 51,258 | $ | 4,942 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 31 | $ | — | $ | — | $ | — | |||
$ | 31 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
66
Schedule of Investments | ||||||||||
Principal Capital Appreciation Account | ||||||||||
December 31, 2018 | ||||||||||
COMMON STOCKS - 97.12% | Shares Held Value (000's) | COMMON STOCKS (continued) | Shares Held Value (000’s) | |||||||
Aerospace & Defense - 2.55% | Healthcare - Products - 6.06% | |||||||||
Boeing Co/The | 2,723 | $ | 878 | Abbott Laboratories | 18,748 | $ | 1,356 | |||
Northrop Grumman Corp | 7,000 | 1,714 | Becton Dickinson and Co | 6,890 | 1,552 | |||||
Teledyne TechnologiesInc(a) | 4,387 | 909 | Edwards Lifesciences Corp(a) | 10,568 | 1,619 | |||||
$ | 3,501 | Medtronic PLC | 18,493 | 1,682 | ||||||
Airlines - 1.49% | ThermoFisher ScientificInc | 7,955 | 1,780 | |||||||
Alaska Air Group Inc | 14,875 | 905 | Varian Medical SystemsInc(a) | 2,903 | 329 | |||||
Delta Air Lines Inc | 22,905 | 1,143 | $ | 8,318 | ||||||
$ | 2,048 | Healthcare - Services - 1.98% | ||||||||
Apparel - 1.54% | UnitedHealth GroupInc | 7,025 | 1,750 | |||||||
DeckersOutdoor Corp(a) | 10,015 | 1,281 | Universal Health Services Inc | 8,363 | 975 | |||||
NIKEInc | 11,312 | 839 | $ | 2,725 | ||||||
$ | 2,120 | Home Builders- 0.69% | ||||||||
Automobile Manufacturers - 0.52% | Thor IndustriesInc | 18,135 | 943 | |||||||
PACCAR Inc | 12,474 | 713 | Insurance - 1.96% | |||||||
Automobile Parts & Equipment - 0.45% | Chubb Ltd | 9,914 | 1,280 | |||||||
Autoliv Inc | 8,864 | 622 | Fidelity National FinancialInc | 44,776 | 1,408 | |||||
Banks- 6.77% | $ | 2,688 | ||||||||
East West Bancorp Inc | 21,086 | 918 | Internet - 7.66% | |||||||
Goldman Sachs GroupInc/The | 1,760 | 294 | Alibaba Group Holding Ltd ADR(a) | 7,367 | 1,010 | |||||
JPMorgan Chase & Co | 50,598 | 4,939 | Alphabet Inc - A Shares(a) | 3,049 | 3,186 | |||||
PNC Financial Services Group Inc/The | 16,197 | 1,894 | Alphabet Inc - C Shares(a) | 1,237 | 1,281 | |||||
US Bancorp | 27,447 | 1,254 | Amazon.comInc(a) | 1,701 | 2,555 | |||||
$ | 9,299 | Booking HoldingsInc(a) | 469 | 808 | ||||||
Beverages- 2.48% | Facebook Inc(a) | 8,055 | 1,056 | |||||||
KeurigDr Pepper Inc | 45,761 | 1,173 | Palo Alto Networks Inc(a) | 3,327 | 626 | |||||
PepsiCo Inc | 20,188 | 2,231 | $ | 10,522 | ||||||
$ | 3,404 | Machinery - Diversified- 0.93% | ||||||||
Biotechnology- 1.57% | Deere & Co | 8,524 | 1,272 | |||||||
Biogen Inc(a) | 5,023 | 1,512 | Media - 3.03% | |||||||
Gilead SciencesInc | 10,189 | 637 | Comcast Corp - Class A | 39,873 | 1,358 | |||||
$ | 2,149 | NexstarMedia GroupInc | 11,789 | 927 | ||||||
Chemicals - 2.61% | Walt Disney Co/The | 17,155 | 1,881 | |||||||
Albemarle Corp | 7,341 | 566 | $ | 4,166 | ||||||
DowDuPont Inc | 12,362 | 661 | Miscellaneous Manufacturers - 0.68% | |||||||
FMC Corp | 17,859 | 1,321 | 3M Co | 4,889 | 931 | |||||
HB Fuller Co | 24,411 | 1,041 | Oil & Gas - 5.01% | |||||||
$ | 3,589 | Chevron Corp | 20,227 | 2,200 | ||||||
Commercial Services - 1.63% | Cimarex Energy Co | 7,639 | 471 | |||||||
Aaron'sInc | 31,665 | 1,332 | Royal Dutch Shell PLC - B shares ADR | 47,866 | 2,869 | |||||
PayPal HoldingsInc(a) | 10,767 | 905 | Valero Energy Corp | 17,856 | 1,339 | |||||
$ | 2,237 | $ | 6,879 | |||||||
Computers - 3.65% | Pharmaceuticals - 5.35% | |||||||||
Apple Inc | 31,728 | 5,005 | Bristol-Myers Squibb Co | 21,933 | 1,140 | |||||
Consumer Products - 1.42% | Johnson & Johnson | 15,736 | 2,031 | |||||||
Church & Dwight Co Inc | 29,558 | 1,944 | Merck & Co Inc | 26,388 | 2,016 | |||||
Distribution & Wholesale - 1.00% | PfizerInc | 49,299 | 2,152 | |||||||
KAR Auction ServicesInc | 28,825 | 1,376 | $ | 7,339 | ||||||
Diversified Financial Services- 4.24% | REITs - 3.82% | |||||||||
Ameriprise Financial Inc | 11,527 | 1,203 | Alexandria Real Estate EquitiesInc | 22,172 | 2,555 | |||||
Charles Schwab Corp/The | 19,164 | 796 | American Tower Corp | 6,864 | 1,086 | |||||
Discover Financial Services | 39,426 | 2,325 | Simon Property Group Inc | 9,567 | 1,607 | |||||
VisaInc | 11,365 | 1,500 | $ | 5,248 | ||||||
$ | 5,824 | Retail - 3.22% | ||||||||
Electric - 3.28% | Chipotle Mexican Grill Inc(a) | 1,135 | 490 | |||||||
NextEra Energy Inc | 14,767 | 2,567 | Costco Wholesale Corp | 5,409 | 1,102 | |||||
Xcel EnergyInc | 39,288 | 1,935 | Home Depot Inc/The | 6,880 | 1,182 | |||||
$ | 4,502 | Lululemon Athletica Inc(a) | 9,478 | 1,153 | ||||||
Starbucks Corp | 7,624 | 491 | ||||||||
Environmental Control - 0.77% | $ | 4,418 | ||||||||
Waste Connections Inc | 14,271 | 1,060 | Semiconductors - 3.17% | |||||||
Food - 1.22% | BroadcomInc | 4,763 | 1,211 | |||||||
McCormick & Co Inc/MD | 7,534 | 1,049 | Lam Research Corp | 8,861 | 1,207 | |||||
Tyson FoodsInc | 11,715 | 626 | Microchip Technology Inc | 21,556 | 1,550 | |||||
$ | 1,675 | NVIDIA Corp | 2,904 | 388 | ||||||
Hand & Machine Tools - 0.49% | $ | 4,356 | ||||||||
Snap-on Inc | 4,656 | 676 |
See accompanying notes.
67
Schedule of Investments | |||||||||||||||
Principal Capital Appreciation Account | |||||||||||||||
December 31, 2018 | |||||||||||||||
COMMON STOCKS (continued) | Shares Held Value (000’s) | (a) | Non-income producing security | ||||||||||||
Software - 9.16% | (b) | Affiliated Security. Security is either an affiliate (and registered under the | |||||||||||||
AdobeInc(a) | 6,249 | $ | 1,414 | Investment Company Act of 1940) or an affiliate as defined by the Investment | |||||||||||
Black KnightInc(a) | 16,511 | 744 | Company Act of 1940 (controls 5.0% or more of the outstanding voting | ||||||||||||
Fair Isaac Corp(a) | 4,173 | 780 | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||||||
Fidelity National Information ServicesInc | 10,127 | 1,039 | information. | ||||||||||||
Microsoft Corp | 59,874 | 6,081 | (c) | Current yield shown is as of period end. | |||||||||||
OmnicellInc(a) | 11,050 | 677 | |||||||||||||
Red HatInc(a) | 6,516 | 1,144 | Portfolio Summary (unaudited) | ||||||||||||
ServiceNow Inc(a) | 3,960 | 705 | Sector | Percent | |||||||||||
$ | 12,584 | Consumer, Non-cyclical | 21.71 | % | |||||||||||
Telecommunications - 4.70% | Financial | 16.79 | % | ||||||||||||
Arista Networks Inc(a) | 4,013 | 845 | Technology | 15.98 | % | ||||||||||
AT&T Inc | 23,249 | 663 | Communications | 15.39 | % | ||||||||||
Cisco Systems Inc | 53,516 | 2,319 | Consumer, Cyclical | 9.92 | % | ||||||||||
T-Mobile US Inc(a) | 17,842 | 1,135 | Industrial | 6.43 | % | ||||||||||
Verizon CommunicationsInc | 26,425 | 1,486 | Energy | 5.01 | % | ||||||||||
$ | 6,448 | Utilities | 3.28 | % | |||||||||||
Toys, Games & Hobbies- 1.01% | Basic Materials | 2.61 | % | ||||||||||||
Hasbro Inc | 17,035 | 1,384 | Investment Companies | 2.18 | % | ||||||||||
Transportation - 1.01% | Other Assets and Liabilities | 0.70 | % | ||||||||||||
Expeditors International of WashingtonInc | 10,363 | 706 | TOTAL NET ASSETS | 100.00 | % | ||||||||||
Union Pacific Corp | 4,970 | 687 | |||||||||||||
$ | 1,393 | ||||||||||||||
TOTAL COMMON STOCKS | $ | 133,358 | |||||||||||||
INVESTMENT COMPANIES - 2.18% | Shares Held Value (000's) | ||||||||||||||
Money Market Funds- 2.18% | |||||||||||||||
Principal Government Money Market Fund | 2,989,429 | 2,989 | |||||||||||||
2.11%(b),(c) | |||||||||||||||
TOTAL INVESTMENT COMPANIES | $ | 2,989 | |||||||||||||
Total Investments | $ | 136,347 | |||||||||||||
Other Assets and Liabilities - 0.70% | 957 | ||||||||||||||
TOTAL NET ASSETS - 100.00% | $ | 137,304 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||||
Value | Cost | Proceeds | Value | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 3,795 | $ | 34,181 | $ | 34,987 | $ | 2,989 | |||||||
$ | 3,795 | $ | 34,181 | $ | 34,987 | $ | 2,989 | ||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 44 | $ | — | $ | — | $ | — | |||||||
$ | 44 | $ | — | $ | — | $ | — | ||||||||
Amounts in thousands |
See accompanying notes.
68
Schedule of Investments | |||||||||||||||
Real Estate Securities Account | |||||||||||||||
December 31, 2018 | |||||||||||||||
COMMON STOCKS - 98.97% | Shares Held Value (000's) | (a) | Non-income producing security | ||||||||||||
Lodging - 4.34% | (b) | Restricted Security. Please see Restricted Security Sub-Schedule for more | |||||||||||||
Extended Stay AmericaInc | 97,853 | $ | 1,517 | information. | |||||||||||
Hilton Grand VacationsInc(a) | 49,331 | 1,302 | (c) | Affiliated Security. Security is either an affiliate (and registered under the | |||||||||||
Hilton Worldwide HoldingsInc | 43,489 | 3,122 | Investment Company Act of 1940) or an affiliate as defined by the Investment | ||||||||||||
$ | 5,941 | Company Act of 1940 (controls 5.0% or more of the outstanding voting | |||||||||||||
REITs - 92.79% | shares of the security). Please see affiliated sub-schedule for transactional | ||||||||||||||
Alexandria Real Estate EquitiesInc | 49,808 | 5,740 | information. | ||||||||||||
American Homes 4 Rent | 118,685 | 2,356 | (d) | Current yield shown is as of period end. | |||||||||||
American Tower Corp | 10,444 | 1,652 | |||||||||||||
Apartment Investment & Management Co | 99,524 | 4,367 | Portfolio Summary (unaudited) | ||||||||||||
AvalonBay Communities Inc | 48,440 | 8,431 | Sector | Percent | |||||||||||
Boston Properties Inc | 21,447 | 2,414 | Financial | 92.79 | % | ||||||||||
Corporate Office Properties Trust | 42,050 | 884 | Consumer, Cyclical | 4.34 | % | ||||||||||
Crown Castle International Corp | 12,641 | 1,373 | Technology | 1.84 | % | ||||||||||
CubeSmart | 72,134 | 2,070 | Investment Companies | 0.67 | % | ||||||||||
Duke Realty Corp | 78,766 | 2,040 | Other Assets and Liabilities | 0.36 | % | ||||||||||
EPR Properties | 44,767 | 2,866 | TOTAL NET ASSETS | 100.00 | % | ||||||||||
Equinix Inc | 25,429 | 8,965 | |||||||||||||
Equity LifeStyle Properties Inc | 22,430 | 2,179 | |||||||||||||
Equity Residential | 22,367 | 1,476 | |||||||||||||
Essex Property Trust Inc | 25,884 | 6,347 | |||||||||||||
Extra Space Storage Inc | 49,800 | 4,506 | |||||||||||||
First Industrial Realty TrustInc | 38,082 | 1,099 | |||||||||||||
HCP Inc | 48,460 | 1,353 | |||||||||||||
Healthcare Trust of America Inc | 151,556 | 3,836 | |||||||||||||
Hudson Pacific PropertiesInc | 55,232 | 1,605 | |||||||||||||
Invitation Homes Inc | 278,458 | 5,591 | |||||||||||||
Kilroy Realty Corp | 45,841 | 2,882 | |||||||||||||
Liberty Property Trust | 38,220 | 1,601 | |||||||||||||
Physicians Realty Trust | 74,241 | 1,190 | |||||||||||||
Prologis Inc | 162,437 | 9,538 | |||||||||||||
Public Storage | 12,572 | 2,545 | |||||||||||||
Regency Centers Corp | 76,731 | 4,503 | |||||||||||||
Saul Centers Inc | 13,644 | 644 | |||||||||||||
Simon Property Group Inc | 47,040 | 7,902 | |||||||||||||
Spirit Realty Capital Inc | 66,626 | 2,349 | |||||||||||||
STORE Capital Corp | 139,725 | 3,956 | |||||||||||||
Sun Communities Inc | 36,920 | 3,755 | |||||||||||||
Sunstone Hotel Investors Inc | 178,533 | 2,323 | |||||||||||||
TangerFactory Outlet CentersInc | 44,717 | 904 | |||||||||||||
Taubman Centers Inc | 26,700 | 1,215 | |||||||||||||
Terreno Realty Corp | 30,410 | 1,070 | |||||||||||||
VICI PropertiesInc(b) | 39,472 | 741 | |||||||||||||
Vornado Realty Trust | 19,903 | 1,235 | |||||||||||||
Welltower Inc | 97,135 | 6,742 | |||||||||||||
Weyerhaeuser Co | 37,010 | 809 | |||||||||||||
$ | 127,054 | ||||||||||||||
Software - 1.84% | |||||||||||||||
InterXion Holding NV(a) | 46,595 | 2,524 | |||||||||||||
TOTAL COMMON STOCKS | $ | 135,519 | |||||||||||||
INVESTMENT COMPANIES - 0.67% | Shares Held Value (000's) | ||||||||||||||
Money Market Funds- 0.67% | |||||||||||||||
Principal Government Money Market Fund | 911,476 | 911 | |||||||||||||
2.11%(c),(d) | |||||||||||||||
TOTAL INVESTMENT COMPANIES | $ | 911 | |||||||||||||
Total Investments | $ | 136,430 | |||||||||||||
Other Assets and Liabilities - 0.36% | 492 | ||||||||||||||
TOTAL NET ASSETS - 100.00% | $ | 136,922 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||||
Value | Cost | Proceeds | Value | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 190 | $ | 17,813 | $ | 17,092 | $ | 911 | |||||||
$ | 190 | $ | 17,813 | $ | 17,092 | $ | 911 | ||||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||||
Principal Government Money Market Fund 2.11% | $ | 7 | $ | — | $ | — | $ | — | |||||||
$ | 7 | $ | — | $ | — | $ | — | ||||||||
Amounts in thousands |
See accompanying notes.
69
Schedule of Investments | ||||||||||
Real Estate Securities Account | ||||||||||
December 31, 2018 | ||||||||||
Restricted Securities | ||||||||||
Security Name | Acquisition Date | Cost | Value | Percent of Net Assets | ||||||
VICI PropertiesInc | 02/01/2018-11/15/2018 | $ | 806 | $ | 741 | 0.54 | % | |||
Total | $ | 741 | 0.54 | % | ||||||
Amounts in thousands. |
See accompanying notes.
70
Schedule of Investments | |||||
SAM Balanced Portfolio | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 99.91% | Shares Held Value (000's) | ||||
Money Market Funds- 0.31% | |||||
Principal Government Money Market Fund | 2,067,003 | $ | 2,067 | ||
2.11%(a),(b) | |||||
Principal Exchange-Traded Funds - 19.52% | |||||
Principal Active Global Dividend Income ETF(a) | 1,237,500 | 30,012 | |||
Principal EDGE Active Income ETF(a) | 228,100 | 8,651 | |||
Principal Investment Grade Corporate Active | 439,000 | 10,579 | |||
ETF(a) | |||||
Principal U.S. Mega-Cap Multi-Factor Index | 2,665,200 | 66,603 | |||
ETF(a) | |||||
Principal U.S. Small-Cap Multi-Factor Index | 504,100 | 14,004 | |||
ETF(a) | |||||
$ | 129,849 | ||||
Principal Funds, Inc. Class R-6 - 30.02% | |||||
Blue Chip Fund(a) | 2,711,268 | 54,795 | |||
Diversified Real Asset Fund(a) | 2,163,005 | 22,409 | |||
EDGEMidCap Fund(a) | 2,038,043 | 24,457 | |||
Global Multi-Strategy Fund(a) | 2,597,223 | 26,336 | |||
Global Real Estate Securities Fund(a) | 2,306,534 | 20,436 | |||
High Yield Fund(a) | 1,528,701 | 10,242 | |||
International Emerging Markets Fund(a) | 364,271 | 8,258 | |||
International Small Company Fund(a) | 798,313 | 7,392 | |||
Preferred Securities Fund(a) | 1,913,377 | 17,967 | |||
Real Estate Debt Income Fund(a) | 788,415 | 7,387 | |||
$ | 199,679 | ||||
Principal Funds, Inc. Institutional Class - 19.95% | |||||
Diversified International Fund(a) | 6,641,220 | 71,127 | |||
Inflation Protection Fund(a) | 1,368,292 | 11,152 | |||
Short-Term Income Fund(a) | 4,199,941 | 50,441 | |||
$ | 132,720 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 30.11% | |||||
Equity Income Account(a) | 3,507,656 | 80,186 | |||
Government & High Quality Bond Account(a) | 4,237,042 | 40,125 | |||
Income Account(a) | 7,988,765 | 79,967 | |||
$ | 200,278 | ||||
TOTAL INVESTMENT COMPANIES | $ | 664,593 | |||
Total Investments | $ | 664,593 | |||
Other Assets and Liabilities - 0.09% | 620 | ||||
TOTAL NET ASSETS - 100.00% | $ | 665,213 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the InvestmentCompany Act of 1940 (controls 5.0% or more of the outstanding voting shares of the security). Please see affiliated sub-schedule for transactional information. |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 36.10 | % | |
Fixed Income Funds | 35.55 | % | |
International Equity Funds | 20.62 | % | |
Specialty Funds | 7.33 | % | |
Investment Companies | 0.31 | % | |
Other Assets and Liabilities | 0.09 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
71
Schedule of Investments | |||||||||||||
SAM Balanced Portfolio | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 48,993 | $ | 14,082 | $ | 5,625 | $ | 54,795 | |||||
Diversified International Fund | 92,034 | 8,097 | 9,104 | 71,127 | |||||||||
Diversified Real Asset Fund | 27,839 | 1,900 | 4,634 | 22,409 | |||||||||
EDGEMidCap Fund | 23,184 | 8,037 | 3,736 | 24,457 | |||||||||
Equity Income Account | 92,831 | 9,286 | 10,678 | 80,186 | |||||||||
Global Multi-Strategy Fund | 36,482 | 1,944 | 9,191 | 26,336 | |||||||||
Global Real Estate Securities Fund | 22,121 | 2,910 | 3,084 | 20,436 | |||||||||
Government & High Quality Bond Account | 42,349 | 7,407 | 8,438 | 40,125 | |||||||||
High Yield Fund | 11,818 | 1,615 | 1,989 | 10,242 | |||||||||
Income Account | 97,340 | 8,864 | 23,133 | 79,967 | |||||||||
Inflation Protection Fund | 12,453 | 1,008 | 1,786 | 11,152 | |||||||||
International Emerging Markets Fund | 18,357 | 417 | 7,374 | 8,258 | |||||||||
International Small Company Fund | 10,659 | 698 | 1,445 | 7,392 | |||||||||
LargeCapGrowth Fund | 11,955 | — | 12,713 | — | |||||||||
LargeCapValue Fund | 30,986 | — | 31,500 | — | |||||||||
Preferred Securities Fund | 20,433 | 2,878 | 3,373 | 17,967 | |||||||||
Principal Active Global Dividend Income ETF | 31,640 | 3,034 | — | 30,012 | |||||||||
Principal Capital Appreciation Fund | 12,120 | — | 12,406 | — | |||||||||
Principal EDGE Active Income ETF | 8,640 | 773 | — | 8,651 | |||||||||
Principal Government Money Market Fund 2.11% | 2,304 | 65,129 | 65,366 | 2,067 | |||||||||
Principal Investment Grade Corporate Active ETF | — | 10,822 | — | 10,579 | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 37,883 | 41,953 | 9,922 | 66,603 | |||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 14,900 | 1,999 | 1,046 | 14,004 | |||||||||
Real Estate Debt Income Fund | 7,323 | 1,329 | 1,120 | 7,387 | |||||||||
Short-Term Income Fund | 54,812 | 5,932 | 9,669 | 50,441 | |||||||||
Small-MidCap Dividend Income Fund | 18,969 | — | 18,904 | — | |||||||||
$ | 788,425 | $ | 200,114 | $ | 256,236 | $ | 664,593 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | 8 | $ | 79 | $ | 3,986 | $ | (2,734 | ) | ||||
Diversified International Fund | 1,409 | 292 | 3,485 | (20,192 | ) | ||||||||
Diversified Real Asset Fund | 770 | 145 | — | (2,841 | ) | ||||||||
EDGEMidCap Fund | 413 | 96 | 1,200 | (3,124 | ) | ||||||||
Equity Income Account | 2,057 | 320 | 5,135 | (11,573 | ) | ||||||||
Global Multi-Strategy Fund | 1,108 | 381 | 585 | (3,280 | ) | ||||||||
Global Real Estate Securities Fund | 634 | (5 | ) | 144 | (1,506 | ) | |||||||
Government & High Quality Bond Account | 1,525 | (269 | ) | — | (924 | ) | |||||||
High Yield Fund | 717 | (63 | ) | — | (1,139 | ) | |||||||
Income Account | 3,591 | 251 | — | (3,355 | ) | ||||||||
Inflation Protection Fund | 327 | (43 | ) | — | (480 | ) | |||||||
International Emerging Markets Fund | 99 | 924 | 179 | (4,066 | ) | ||||||||
International Small Company Fund | 233 | 160 | 415 | (2,680 | ) | ||||||||
LargeCapGrowth Fund | — | 1,075 | — | (317 | ) | ||||||||
LargeCapValue Fund | — | (2,306 | ) | — | 2,820 | ||||||||
Preferred Securities Fund | 1,089 | (152 | ) | — | (1,819 | ) | |||||||
Principal Active Global Dividend Income ETF | 823 | — | 369 | (4,662 | ) | ||||||||
Principal Capital Appreciation Fund | — | 2,479 | — | (2,193 | ) | ||||||||
Principal EDGE Active Income ETF | 425 | — | 77 | (762 | ) | ||||||||
Principal Government Money Market Fund 2.11% | 76 | — | — | — | |||||||||
Principal Investment Grade Corporate Active ETF | 276 | — | 9 | (243 | ) | ||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 1,597 | (39 | ) | — | (3,272 | ) | |||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 183 | 77 | — | (1,926 | ) | ||||||||
Real Estate Debt Income Fund | 299 | (34 | ) | — | (111 | ) | |||||||
Short-Term Income Fund | 1,213 | (139 | ) | — | (495 | ) | |||||||
Small-MidCap Dividend Income Fund | — | 7,788 | — | (7,853 | ) | ||||||||
$ | 18,872 | $ | 11,017 | $ | 15,584 | $ | (78,727 | ) | |||||
Amounts in thousands |
See accompanying notes.
72
Schedule of Investments | |||||
SAM Conservative Balanced Portfolio | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 99.94% | Shares Held Value (000's) | ||||
Money Market Funds- 0.51% | |||||
Principal Government Money Market Fund | 897,199 | $ | 897 | ||
2.11%(a),(b) | |||||
Principal Exchange-Traded Funds - 14.45% | |||||
Principal Active Global Dividend Income ETF(a) | 133,000 | 3,226 | |||
Principal EDGE Active Income ETF(a) | 126,800 | 4,809 | |||
Principal Investment Grade Corporate Active | 176,400 | 4,251 | |||
ETF(a) | |||||
Principal U.S. Mega-Cap Multi-Factor Index | 431,800 | 10,791 | |||
ETF(a) | |||||
Principal U.S. Small-Cap Multi-Factor Index | 78,200 | 2,172 | |||
ETF(a) | |||||
$ | 25,249 | ||||
Principal Funds, Inc. Class R-6 - 28.39% | |||||
Blue Chip Fund(a) | 461,131 | 9,319 | |||
Diversified Real Asset Fund(a) | 488,527 | 5,061 | |||
EDGEMidCap Fund(a) | 330,193 | 3,962 | |||
Global Diversified Income Fund(a) | 364,397 | 4,642 | |||
Global Multi-Strategy Fund(a) | 687,259 | 6,969 | |||
Global Real Estate Securities Fund(a) | 442,062 | 3,917 | |||
High Yield Fund(a) | 651,047 | 4,362 | |||
International Emerging Markets Fund(a) | 59,425 | 1,347 | |||
International Small Company Fund(a) | 144,167 | 1,335 | |||
Preferred Securities Fund(a) | 753,311 | 7,074 | |||
Real Estate Debt Income Fund(a) | 172,415 | 1,616 | |||
$ | 49,604 | ||||
Principal Funds, Inc. Institutional Class - 21.40% | |||||
Diversified International Fund(a) | 1,136,633 | 12,173 | |||
Inflation Protection Fund(a) | 582,320 | 4,746 | |||
Short-Term Income Fund(a) | 1,705,660 | 20,485 | |||
$ | 37,404 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 35.19% | |||||
Equity Income Account(a) | 604,848 | 13,827 | |||
Government & High Quality Bond Account(a) | 1,890,506 | 17,903 | |||
Income Account(a) | 2,973,313 | 29,763 | |||
$ | 61,493 | ||||
TOTAL INVESTMENT COMPANIES | $ | 174,647 | |||
Total Investments | $ | 174,647 | |||
Other Assets and Liabilities - 0.06% | 99 | ||||
TOTAL NET ASSETS - 100.00% | $ | 174,746 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the InvestmentCompany Act of 1940 (controls 5.0% or more of the outstanding voting shares of the security). Please see affiliated sub-schedule for transactional information. |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Fixed Income Funds | 54.36 | % | |
Domestic Equity Funds | 22.93 | % | |
International Equity Funds | 12.59 | % | |
Specialty Funds | 9.55 | % | |
Investment Companies | 0.51 | % | |
Other Assets and Liabilities | 0.06 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
73
Schedule of Investments | |||||||||||||
SAM Conservative Balanced Portfolio | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 6,344 | $ | 4,606 | $ | 1,075 | $ | 9,319 | |||||
Diversified International Fund | 15,446 | 2,457 | 2,375 | 12,173 | |||||||||
Diversified Real Asset Fund | 6,054 | 565 | 948 | 5,061 | |||||||||
EDGEMidCap Fund | 4,369 | 919 | 842 | 3,962 | |||||||||
Equity Income Account | 14,685 | 2,736 | 1,688 | 13,827 | |||||||||
Global Diversified Income Fund | 5,258 | 785 | 886 | 4,642 | |||||||||
Global Multi-Strategy Fund | 8,105 | 1,006 | 1,379 | 6,969 | |||||||||
Global Real Estate Securities Fund | 3,408 | 1,540 | 746 | 3,917 | |||||||||
Government & High Quality Bond Account | 19,308 | 2,095 | 2,950 | 17,903 | |||||||||
High Yield Fund | 5,057 | 690 | 895 | 4,362 | |||||||||
Income Account | 37,038 | 3,170 | 9,281 | 29,763 | |||||||||
Inflation Protection Fund | 5,097 | 659 | 794 | 4,746 | |||||||||
International Emerging Markets Fund | 3,293 | 126 | 1,545 | 1,347 | |||||||||
International Small Company Fund | 1,698 | 370 | 281 | 1,335 | |||||||||
LargeCapGrowth Fund | 2,457 | — | 2,624 | — | |||||||||
LargeCapValue Fund | 6,784 | — | 6,902 | — | |||||||||
Preferred Securities Fund | 8,013 | 1,140 | 1,309 | 7,074 | |||||||||
Principal Active Global Dividend Income ETF | 4,424 | — | 693 | 3,226 | |||||||||
Principal Capital Appreciation Fund | 2,028 | — | 2,080 | — | |||||||||
Principal EDGE Active Income ETF | 5,234 | — | — | 4,809 | |||||||||
Principal Government Money Market Fund 2.11% | 634 | 12,562 | 12,299 | 897 | |||||||||
Principal Investment Grade Corporate Active ETF | — | 4,348 | — | 4,251 | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 5,974 | 7,068 | 1,719 | 10,791 | |||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 2,575 | 62 | 173 | 2,172 | |||||||||
Real Estate Debt Income Fund | 1,706 | 178 | 235 | 1,616 | |||||||||
Short-Term Income Fund | 22,090 | 2,378 | 3,728 | 20,485 | |||||||||
Small-MidCap Dividend Income Fund | 1,971 | — | 1,966 | — | |||||||||
$ | 199,050 | $ | 49,460 | $ | 59,413 | $ | 174,647 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | 1 | $ | 4 | $ | 676 | $ | (560 | ) | ||||
Diversified International Fund | 241 | 102 | 595 | (3,457 | ) | ||||||||
Diversified Real Asset Fund | 173 | 9 | — | (619 | ) | ||||||||
EDGEMidCap Fund | 67 | 25 | 193 | (509 | ) | ||||||||
Equity Income Account | 339 | (1 | ) | 845 | (1,905 | ) | |||||||
Global Diversified Income Fund | 234 | (29 | ) | — | (486 | ) | |||||||
Global Multi-Strategy Fund | 293 | 8 | 155 | (771 | ) | ||||||||
Global Real Estate Securities Fund | 118 | (14 | ) | 28 | (271 | ) | |||||||
Government & High Quality Bond Account | 700 | (171 | ) | — | (379 | ) | |||||||
High Yield Fund | 298 | 7 | — | (497 | ) | ||||||||
Income Account | 1,339 | 6 | — | (1,170 | ) | ||||||||
Inflation Protection Fund | 138 | (17 | ) | — | (199 | ) | |||||||
International Emerging Markets Fund | 16 | 211 | 29 | (738 | ) | ||||||||
International Small Company Fund | 42 | 12 | 75 | (464 | ) | ||||||||
LargeCapGrowth Fund | — | 268 | — | (101 | ) | ||||||||
LargeCapValue Fund | — | (277 | ) | — | 395 | ||||||||
Preferred Securities Fund | 425 | (54 | ) | — | (716 | ) | |||||||
Principal Active Global Dividend Income ETF | 98 | 60 | 40 | (565 | ) | ||||||||
Principal Capital Appreciation Fund | — | 423 | — | (371 | ) | ||||||||
Principal EDGE Active Income ETF | 237 | — | 43 | (425 | ) | ||||||||
Principal Government Money Market Fund 2.11% | 14 | — | — | — | |||||||||
Principal Investment Grade Corporate Active ETF | 111 | — | 4 | (97 | ) | ||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 261 | 4 | — | (536 | ) | ||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 28 | 35 | — | (327 | ) | ||||||||
Real Estate Debt Income Fund | 66 | (7 | ) | — | (26 | ) | |||||||
Short-Term Income Fund | 488 | (50 | ) | — | (205 | ) | |||||||
Small-MidCap Dividend Income Fund | — | 816 | — | (821 | ) | ||||||||
$ | 5,727 | $ | 1,370 | $ | 2,683 | $ | (15,820 | ) | |||||
Amounts in thousands |
See accompanying notes.
74
Schedule of Investments | |||||
SAM Conservative Growth Portfolio | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 99.90% | Shares Held Value (000's) | ||||
Money Market Funds- 0.26% | |||||
Principal Government Money Market Fund | 796,873 | $ | 797 | ||
2.11%(a),(b) | |||||
Principal Exchange-Traded Funds - 19.95% | |||||
Principal Active Global Dividend Income ETF(a) | 378,000 | 9,167 | |||
Principal Investment Grade Corporate Active | 86,500 | 2,084 | |||
ETF(a) | |||||
Principal U.S. Mega-Cap Multi-Factor Index | 1,637,800 | 40,929 | |||
ETF(a) | |||||
Principal U.S. Small-Cap Multi-Factor Index | 333,900 | 9,276 | |||
ETF(a) | |||||
$ | 61,456 | ||||
Principal Funds, Inc. Class R-6 - 33.85% | |||||
Blue Chip Fund(a) | 1,765,882 | 35,689 | |||
Diversified Real Asset Fund(a) | 1,130,820 | 11,715 | |||
EDGEMidCap Fund(a) | 1,475,600 | 17,707 | |||
Global Multi-Strategy Fund(a) | 496,436 | 5,034 | |||
Global Real Estate Securities Fund(a) | 1,227,389 | 10,875 | |||
International Small Company Fund(a) | 503,570 | 4,663 | |||
Multi-Manager Equity Long/Short Fund(a) | 905,048 | 7,946 | |||
Origin Emerging Markets Fund(a) | 588,981 | 5,466 | |||
Preferred Securities Fund(a) | 547,098 | 5,137 | |||
$ | 104,232 | ||||
Principal Funds, Inc. Institutional Class - 20.57% | |||||
Diversified International Fund(a) | 4,475,495 | 47,933 | |||
Short-Term Income Fund(a) | 1,284,283 | 15,424 | |||
$ | 63,357 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 25.27% | |||||
Equity Income Account(a) | 2,279,427 | 52,108 | |||
Government & High Quality Bond Account(a) | 1,016,784 | 9,629 | |||
Income Account(a) | 1,606,957 | 16,085 | |||
$ | 77,822 | ||||
TOTAL INVESTMENT COMPANIES | $ | 307,664 | |||
Total Investments | $ | 307,664 | |||
Other Assets and Liabilities - 0.10% | 297 | ||||
TOTAL NET ASSETS - 100.00% | $ | 307,961 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the InvestmentCompany Act of 1940 (controls 5.0% or more of the outstanding voting shares of the security). Please see affiliated sub-schedule for transactional information. |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 50.56 | % | |
International Equity Funds | 25.35 | % | |
Fixed Income Funds | 15.71 | % | |
Specialty Funds | 8.02 | % | |
Investment Companies | 0.26 | % | |
Other Assets and Liabilities | 0.10 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
75
Schedule of Investments | |||||||||||||
SAM Conservative Growth Portfolio | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 26,896 | $ | 14,225 | $ | 3,254 | $ | 35,689 | |||||
Diversified International Fund | 59,933 | 6,539 | 5,137 | 47,933 | |||||||||
Diversified Real Asset Fund | 13,646 | 1,104 | 1,622 | 11,715 | |||||||||
EDGEMidCap Fund | 18,803 | 3,167 | 2,006 | 17,707 | |||||||||
Equity Income Account | 44,082 | 20,115 | 4,775 | 52,108 | |||||||||
Global Multi-Strategy Fund | 5,732 | 710 | 856 | 5,034 | |||||||||
Global Real Estate Securities Fund | 6,797 | 6,255 | 1,389 | 10,875 | |||||||||
Government & High Quality Bond Account | 9,813 | 1,605 | 1,498 | 9,629 | |||||||||
Income Account | 18,397 | 2,049 | 3,743 | 16,085 | |||||||||
International Small Company Fund | 6,270 | 634 | 663 | 4,663 | |||||||||
LargeCapGrowth Fund | 10,129 | — | 10,782 | — | |||||||||
LargeCapValue Fund | 22,090 | — | 22,468 | — | |||||||||
Multi-Manager Equity Long/Short Fund | 9,429 | 1,294 | 1,172 | 7,946 | |||||||||
Origin Emerging Markets Fund | 11,948 | 262 | 4,752 | 5,466 | |||||||||
Preferred Securities Fund | 5,083 | 1,288 | 703 | 5,137 | |||||||||
Principal Active Global Dividend Income ETF | 10,584 | — | — | 9,167 | |||||||||
Principal Capital Appreciation Fund | 9,309 | — | 9,529 | — | |||||||||
Principal Government Money Market Fund 2.11% | 509 | 32,647 | 32,359 | 797 | |||||||||
Principal Investment Grade Corporate Active ETF | — | 2,130 | — | 2,084 | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 22,315 | 25,922 | 5,253 | 40,929 | |||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 9,059 | 1,983 | 520 | 9,276 | |||||||||
Short-Term Income Fund | 16,122 | 2,304 | 2,812 | 15,424 | |||||||||
Small-MidCap Dividend Income Fund | 10,164 | — | 10,124 | — | |||||||||
$ | 347,110 | $ | 124,233 | $ | 125,417 | $ | 307,664 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | 5 | $ | (136 | ) $ | 2,591 | $ | (2,042 | ) | ||||
Diversified International Fund | 947 | (64 | ) | 2,343 | (13,338 | ) | |||||||
Diversified Real Asset Fund | 400 | (27 | ) | — | (1,386 | ) | |||||||
EDGEMidCap Fund | 298 | 16 | 864 | (2,273 | ) | ||||||||
Equity Income Account | 1,291 | (304 | ) | 3,222 | (7,010 | ) | |||||||
Global Multi-Strategy Fund | 209 | 15 | 110 | (567 | ) | ||||||||
Global Real Estate Securities Fund | 312 | (38 | ) | 76 | (750 | ) | |||||||
Government & High Quality Bond Account | 374 | (107 | ) | — | (184 | ) | |||||||
Income Account | 726 | (142 | ) | — | (476 | ) | |||||||
International Small Company Fund | 147 | 13 | 261 | (1,591 | ) | ||||||||
LargeCapGrowth Fund | — | 676 | — | (23 | ) | ||||||||
LargeCapValue Fund | — | (1,414 | ) | — | 1,792 | ||||||||
Multi-Manager Equity Long/Short Fund | 126 | (4 | ) | 787 | (1,601 | ) | |||||||
Origin Emerging Markets Fund | 95 | 843 | — | (2,835 | ) | ||||||||
Preferred Securities Fund | 288 | (35 | ) | — | (496 | ) | |||||||
Principal Active Global Dividend Income ETF | 251 | — | 113 | (1,417 | ) | ||||||||
Principal Capital Appreciation Fund | — | 1,890 | — | (1,670 | ) | ||||||||
Principal Government Money Market Fund 2.11% | 30 | — | — | — | |||||||||
Principal Investment Grade Corporate Active ETF | 52 | — | 2 | (46 | ) | ||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 979 | 25 | — | (2,080 | ) | ||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 120 | 29 | — | (1,275 | ) | ||||||||
Short-Term Income Fund | 365 | (42 | ) | — | (148 | ) | |||||||
Small-MidCap Dividend Income Fund | — | 4,028 | — | (4,068 | ) | ||||||||
$ | 7,015 | $ | 5,222 | $ | 10,369 | $ | (43,484 | ) | |||||
Amounts in thousands |
See accompanying notes.
76
Schedule of Investments | |||||
SAM Flexible Income Portfolio | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 99.94% | Shares Held Value (000's) | ||||
Money Market Funds- 0.89% | |||||
Principal Government Money Market Fund | 1,632,262 | $ | 1,632 | ||
2.11%(a),(b) | |||||
Principal Exchange-Traded Funds - 16.50% | |||||
Principal Active Global Dividend Income ETF(a) | 505,300 | 12,255 | |||
Principal EDGE Active Income ETF(a) | 149,500 | 5,670 | |||
Principal Investment Grade Corporate Active | 243,500 | 5,868 | |||
ETF(a) | |||||
Principal U.S. Mega-Cap Multi-Factor Index | 253,600 | 6,337 | |||
ETF(a) | |||||
$ | 30,130 | ||||
Principal Funds, Inc. Class R-6 - 22.12% | |||||
Blue Chip Fund(a) | 93,375 | 1,887 | |||
EDGEMidCap Fund(a) | 209,601 | 2,515 | |||
Global Diversified Income Fund(a) | 704,792 | 8,979 | |||
Global Real Estate Securities Fund(a) | 764,275 | 6,772 | |||
High Yield Fund(a) | 1,142,564 | 7,655 | |||
Preferred Securities Fund(a) | 978,112 | 9,184 | |||
Real Estate Debt Income Fund(a) | 363,455 | 3,406 | |||
$ | 40,398 | ||||
Principal Funds, Inc. Institutional Class - 19.41% | |||||
Inflation Protection Fund(a) | 1,497,559 | 12,205 | |||
Short-Term Income Fund(a) | 1,936,559 | 23,258 | |||
$ | 35,463 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 41.02% | |||||
Equity Income Account(a) | 492,249 | 11,253 | |||
Government & High Quality Bond Account(a) | 2,217,564 | 21,000 | |||
Income Account(a) | 4,263,902 | 42,682 | |||
$ | 74,935 | ||||
TOTAL INVESTMENT COMPANIES | $ | 182,558 | |||
Total Investments | $ | 182,558 | |||
Other Assets and Liabilities - 0.06% | 117 | ||||
TOTAL NET ASSETS - 100.00% | $ | 182,675 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the InvestmentCompany Act of 1940 (controls 5.0% or more of the outstanding voting shares of the security). Please see affiliated sub-schedule for transactional information. |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Fixed Income Funds | 71.67 | % | |
Domestic Equity Funds | 12.04 | % | |
International Equity Funds | 10.42 | % | |
Specialty Funds | 4.92 | % | |
Investment Companies | 0.89 | % | |
Other Assets and Liabilities | 0.06 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
77
Schedule of Investments | |||||||||||||
SAM Flexible Income Portfolio | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | — $ | 2,262 | $ | — $ | 1,887 | |||||||
Diversified International Fund | 1,251 | — | 1,283 | — | |||||||||
EDGEMidCap Fund | 1,317 | 2,452 | 933 | 2,515 | |||||||||
Equity Income Account | 18,387 | 1,827 | 7,442 | 11,253 | |||||||||
Global Diversified Income Fund | 10,819 | 1,589 | 2,431 | 8,979 | |||||||||
Global Real Estate Securities Fund | 7,724 | 1,320 | 1,769 | 6,772 | |||||||||
Government & High Quality Bond Account | 24,468 | 2,958 | 5,754 | 21,000 | |||||||||
High Yield Fund | 9,653 | 1,188 | 2,294 | 7,655 | |||||||||
Income Account | 56,197 | 5,043 | 16,864 | 42,682 | |||||||||
Inflation Protection Fund | 14,106 | 1,409 | 2,741 | 12,205 | |||||||||
International Emerging Markets Fund | 775 | — | 815 | — | |||||||||
LargeCapGrowth Fund | 1,928 | — | 2,050 | — | |||||||||
LargeCapValue Fund | 3,063 | — | 3,115 | — | |||||||||
Preferred Securities Fund | 11,175 | 1,398 | 2,367 | 9,184 | |||||||||
Principal Active Global Dividend Income ETF | 9,660 | 4,537 | — | 12,255 | |||||||||
Principal EDGE Active Income ETF | 6,171 | — | — | 5,670 | |||||||||
Principal Government Money Market Fund 2.11% | 766 | 17,942 | 17,076 | 1,632 | |||||||||
Principal Investment Grade Corporate Active ETF | — | 6,003 | — | 5,868 | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 5,263 | 5,013 | 3,765 | 6,337 | |||||||||
Real Estate Debt Income Fund | 4,065 | 443 | 1,026 | 3,406 | |||||||||
Short-Term Income Fund | 27,645 | 2,358 | 6,429 | 23,258 | |||||||||
Small-MidCap Dividend Income Fund | 3,286 | — | 3,278 | — | |||||||||
$ | 217,719 | $ | 57,742 | $ | 81,432 | $ | 182,558 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | — $ | — $ | 136 | $ | (375 | ) | ||||||
Diversified International Fund | — | 286 | — | (254 | ) | ||||||||
EDGEMidCap Fund | 42 | — | 123 | (321 | ) | ||||||||
Equity Income Account | 295 | 3,106 | 735 | (4,625 | ) | ||||||||
Global Diversified Income Fund | 459 | 10 | — | (1,008 | ) | ||||||||
Global Real Estate Securities Fund | 209 | 29 | 48 | (532 | ) | ||||||||
Government & High Quality Bond Account | 823 | (267 | ) | — | (405 | ) | |||||||
High Yield Fund | 546 | 3 | — | (895 | ) | ||||||||
Income Account | 1,940 | (15 | ) | — | (1,679 | ) | |||||||
Inflation Protection Fund | 355 | (54 | ) | — | (515 | ) | |||||||
International Emerging Markets Fund | — | 226 | — | (186 | ) | ||||||||
LargeCapGrowth Fund | — | 195 | — | (73 | ) | ||||||||
LargeCapValue Fund | — | (219 | ) | — | 271 | ||||||||
Preferred Securities Fund | 570 | (87 | ) | — | (935 | ) | |||||||
Principal Active Global Dividend Income ETF | 337 | — | 151 | (1,942 | ) | ||||||||
Principal EDGE Active Income ETF | 279 | — | 51 | (501 | ) | ||||||||
Principal Government Money Market Fund 2.11% | 32 | — | — | — | |||||||||
Principal Investment Grade Corporate Active ETF | 154 | — | 5 | (135 | ) | ||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 175 | 89 | — | (263 | ) | ||||||||
Real Estate Debt Income Fund | 146 | (31 | ) | — | (45 | ) | |||||||
Short-Term Income Fund | 591 | (89 | ) | — | (227 | ) | |||||||
Small-MidCap Dividend Income Fund | — | 1,345 | — | (1,353 | ) | ||||||||
$ | 6,953 | $ | 4,527 | $ | 1,249 | $ | (15,998 | ) | |||||
Amounts in thousands |
See accompanying notes.
78
Schedule of Investments | |||||
SAM Strategic Growth Portfolio | |||||
December 31, 2018 | |||||
INVESTMENT COMPANIES - 99.87% | Shares Held Value (000's) | ||||
Money Market Funds- 0.31% | |||||
Principal Government Money Market Fund | 797,523 | $ | 798 | ||
2.11%(a),(b) | |||||
Principal Exchange-Traded Funds - 27.35% | |||||
Principal Active Global Dividend Income ETF(a) | 578,000 | 14,018 | |||
Principal EDGE Active Income ETF(a) | 302,600 | 11,476 | |||
Principal U.S. Mega-Cap Multi-Factor Index | 1,356,500 | 33,899 | |||
ETF(a) | |||||
Principal U.S. Small-Cap Multi-Factor Index | 374,100 | 10,392 | |||
ETF(a) | |||||
$ | 69,785 | ||||
Principal Funds, Inc. Class R-6 - 32.24% | |||||
Blue Chip Fund(a) | 1,871,184 | 37,817 | |||
EDGEMidCap Fund(a) | 1,366,166 | 16,394 | |||
Global Real Estate Securities Fund(a) | 1,675,037 | 14,841 | |||
International Small Company Fund(a) | 483,736 | 4,479 | |||
Origin Emerging Markets Fund(a) | 940,835 | 8,731 | |||
$ | 82,262 | ||||
Principal Funds, Inc. Institutional Class - 21.10% | |||||
Diversified International Fund(a) | 4,547,577 | 48,705 | |||
Short-Term Income Fund(a) | 426,410 | 5,121 | |||
$ | 53,826 | ||||
Principal Variable Contracts Funds, Inc. Class 1 - 18.87% | |||||
Equity Income Account(a) | 2,106,060 | 48,144 | |||
TOTAL INVESTMENT COMPANIES | $ | 254,815 | |||
Total Investments | $ | 254,815 | |||
Other Assets and Liabilities - 0.13% | 334 | ||||
TOTAL NET ASSETS - 100.00% | $ | 255,149 |
(a) | Affiliated Security. Security is either an affiliate (and registered under the Investment Company Act of 1940) or an affiliate as defined by the InvestmentCompany Act of 1940 (controls 5.0% or more of the outstanding voting shares of the security). Please see affiliated sub-schedule for transactional information. |
(b) | Current yield shown is as of period end. |
Portfolio Summary (unaudited) | |||
Fund Type | Percent | ||
Domestic Equity Funds | 57.47 | % | |
International Equity Funds | 35.58 | % | |
Fixed Income Funds | 6.51 | % | |
Investment Companies | 0.31 | % | |
Other Assets and Liabilities | 0.13 | % | |
TOTAL NET ASSETS | 100.00 | % |
See accompanying notes.
79
Schedule of Investments | |||||||||||||
SAM Strategic Growth Portfolio | |||||||||||||
December 31, 2018 | |||||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||||
Value | Cost | Proceeds | Value | ||||||||||
Blue Chip Fund | $ | 12,466 | $ | 32,392 | $ | 3,039 | $ | 37,817 | |||||
Diversified International Fund | 60,383 | 7,649 | 5,691 | 48,705 | |||||||||
EDGEMidCap Fund | 11,747 | 8,983 | 2,127 | 16,394 | |||||||||
Equity Income Account | 33,486 | 25,336 | 3,970 | 48,144 | |||||||||
Global Multi-Strategy Fund | 4,775 | 322 | 5,058 | — | |||||||||
Global Real Estate Securities Fund | 12,881 | 4,602 | 1,509 | 14,841 | |||||||||
International Small Company Fund | 6,073 | 667 | 720 | 4,479 | |||||||||
LargeCapGrowth Fund | 11,883 | — | 12,665 | — | |||||||||
LargeCapValue Fund | 16,785 | — | 17,065 | — | |||||||||
Multi-Manager Equity Long/Short Fund | 6,802 | 266 | 7,050 | — | |||||||||
Origin Emerging Markets Fund | 18,759 | 843 | 7,533 | 8,731 | |||||||||
Principal Active Global Dividend Income ETF | 13,944 | 2,273 | — | 14,018 | |||||||||
Principal Capital Appreciation Fund | 21,273 | — | 21,768 | — | |||||||||
Principal EDGE Active Income ETF | 10,662 | 1,797 | — | 11,476 | |||||||||
Principal Government Money Market Fund 2.11% | 253 | 28,861 | 28,316 | 798 | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 18,441 | 21,283 | 4,122 | 33,899 | |||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 11,346 | 1,179 | 634 | 10,392 | |||||||||
Real Estate Debt Income Fund | 6,955 | 595 | 7,441 | — | |||||||||
Short-Term Income Fund | 5,094 | 713 | 625 | 5,121 | |||||||||
Small-MidCap Dividend Income Fund | 6,399 | — | 6,372 | — | |||||||||
$ | 290,407 | $ | 137,761 | $ | 135,705 | $ | 254,815 | ||||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||||
Blue Chip Fund | $ | 5 | $ | (102 | ) $ | 2,743 | $ | (3,900 | ) | ||||
Diversified International Fund | 966 | (95 | ) | 2,386 | (13,541 | ) | |||||||
EDGEMidCap Fund | 276 | (63 | ) | 798 | (2,146 | ) | |||||||
Equity Income Account | 1,066 | (213 | ) | 2,660 | (6,495 | ) | |||||||
Global Multi-Strategy Fund | — | 124 | — | (163 | ) | ||||||||
Global Real Estate Securities Fund | 431 | 4 | 104 | (1,137 | ) | ||||||||
International Small Company Fund | 142 | 17 | 252 | (1,558 | ) | ||||||||
LargeCapGrowth Fund | — | 901 | — | (119 | ) | ||||||||
LargeCapValue Fund | — | (1,519 | ) | — | 1,799 | ||||||||
Multi-Manager Equity Long/Short Fund | — | 505 | — | (523 | ) | ||||||||
Origin Emerging Markets Fund | 153 | 960 | — | (4,298 | ) | ||||||||
Principal Active Global Dividend Income ETF | 354 | — | 172 | (2,199 | ) | ||||||||
Principal Capital Appreciation Fund | — | 4,295 | — | (3,800 | ) | ||||||||
Principal EDGE Active Income ETF | 523 | — | 103 | (983 | ) | ||||||||
Principal Government Money Market Fund 2.11% | 35 | — | — | — | |||||||||
Principal U.S. Mega-Cap Multi-Factor Index ETF | 809 | 23 | — | (1,726 | ) | ||||||||
Principal U.S. Small-Cap Multi-Factor Index ETF | 131 | 107 | — | (1,606 | ) | ||||||||
Real Estate Debt Income Fund | 164 | (123 | ) | — | 14 | ||||||||
Short-Term Income Fund | 117 | (8 | ) | — | (53 | ) | |||||||
Small-MidCap Dividend Income Fund | — | 2,636 | — | (2,663 | ) | ||||||||
$ | 5,172 | $ | 7,449 | $ | 9,218 | $ | (45,097 | ) | |||||
Amounts in thousands |
See accompanying notes.
80
Schedule of Investments | |||||||||||
Short-Term Income Account | |||||||||||
December 31, 2018 | |||||||||||
INVESTMENT COMPANIES - 3.17% | Shares Held Value (000's) | Principal | |||||||||
Money Market Funds- 3.17% | BONDS (continued) | Amount (000’s) Value (000’s) | |||||||||
Principal Government Money Market Fund | 4,856,251 | $ | 4,856 | Automobile Asset Backed Securities (continued) | |||||||
2.11%(a),(b) | CPS Auto Trust | ||||||||||
TOTAL INVESTMENT COMPANIES | $ | 4,856 | 1.68%, 08/17/2020(c) | $ | 64 | $ | 64 | ||||
Principal | 2.87%, 09/15/2021(c) | 386 | 386 | ||||||||
BONDS- 95.81% | Amount (000's) Value (000's) | Ford Credit Auto Owner Trust 2015-REV2 | |||||||||
Aerospace & Defense - 1.19% | 2.44%, 01/15/2027(c) | 173 | 172 | ||||||||
General Dynamics Corp | Ford Credit Auto Owner Trust 2016-REV2 | ||||||||||
2.88%, 05/11/2020 | $ | 200 | $ | 200 | 2.03%, 12/15/2027(c) | 750 | 732 | ||||
3.00%, 05/11/2021 | 250 | 250 | Ford Credit Auto Owner Trust 2017-REV1 | ||||||||
Northrop Grumman Corp | 2.62%, 08/15/2028(c) | 500 | 493 | ||||||||
2.08%, 10/15/2020 | 150 | 147 | Ford Credit Auto Owner Trust/Ford Credit | ||||||||
2.55%, 10/15/2022 | 250 | 242 | 3.47%, 01/15/2030(c) | 400 | 404 | ||||||
Rockwell Collins Inc | Ford Credit Auto Owner Trust/Ford Credit | ||||||||||
3.20%, 03/15/2024 | 250 | 241 | 2014-REV1 | ||||||||
United Technologies Corp | 2.26%, 11/15/2025(c) | 173 | 172 | ||||||||
1.50%, 11/01/2019 | 400 | 395 | OneMain Direct Auto Receivables Trust 2017-2 | ||||||||
1.90%, 05/04/2020 | 350 | 344 | 2.31%, 12/14/2021(c) | 670 | 666 | ||||||
$ | 1,819 | OneMain Direct Auto Receivables Trust 2018-1 | |||||||||
Airlines - 0.59% | 3.43%, 12/16/2024(c) | 500 | 501 | ||||||||
American Airlines 2013-2 Class A Pass Through | Santander Drive Auto Receivables Trust 2015-1 | ||||||||||
Trust | 2.57%, 04/15/2021 | 28 | 28 | ||||||||
4.95%, 07/15/2024 | 340 | 345 | Santander Drive Auto Receivables Trust 2015-2 | ||||||||
Continental Airlines 2009-2 Class A Pass Through | 2.44%, 04/15/2021 | 66 | 66 | ||||||||
Trust | Santander Drive Auto Receivables Trust 2018-1 | ||||||||||
7.25%, 05/10/2021 | 187 | 192 | 2.10%, 11/16/2020 | 68 | 68 | ||||||
Delta Air Lines 2009-1 Class A Pass Through | Santander Drive Auto Receivables Trust 2018-2 | ||||||||||
Trust | 2.58%, 10/15/2020 | 363 | 362 | ||||||||
7.75%, 06/17/2021 | 130 | 134 | Santander Drive Auto Receivables Trust 2018-3 | ||||||||
Delta Air Lines 2012-1 Class A Pass Through | 2.78%, 03/15/2021 | 387 | 387 | ||||||||
Trust | Santander Drive Auto Receivables Trust 2018-4 | ||||||||||
4.75%, 11/07/2021 | 238 | 241 | 2.73%, 04/15/2021 | 200 | 200 | ||||||
$ | 912 | 3.01%, 03/15/2022 | 200 | 200 | |||||||
Automobile Asset Backed Securities- 7.67% | Santander Drive Auto Receivables Trust 2018-5 | ||||||||||
AmeriCredit Automobile Receivables Trust | 2.97%, 07/15/2021 | 400 | 400 | ||||||||
2014-2 | TCF Auto Receivables Owner Trust 2016-PT1 | ||||||||||
2.57%, 07/08/2020 | 354 | 354 | 1.93%, 06/15/2022(c) | 350 | 346 | ||||||
AmeriCredit Automobile Receivables Trust | Westlake Automobile Receivables Trust 2016-3 | ||||||||||
2014-3 | 2.07%, 12/15/2021(c) | 102 | 102 | ||||||||
2.58%, 09/08/2020 | 12 | 12 | Westlake Automobile Receivables Trust 2017-2 | ||||||||
AmeriCredit Automobile Receivables Trust | 1.80%, 07/15/2020(c) | 70 | 70 | ||||||||
2017-4 | Westlake Automobile Receivables Trust 2018-1 | ||||||||||
1.83%, 05/18/2021 | 107 | 107 | 2.24%, 12/15/2020(c) | 281 | 280 | ||||||
Americredit Automobile Receivables Trust 2018-1 | Westlake Automobile Receivables Trust 2018-2 | ||||||||||
3.07%, 12/19/2022 | 250 | 250 | 2.84%, 09/15/2021(c) | 180 | 180 | ||||||
Americredit Automobile Receivables Trust 2018-2 | 3.20%, 01/16/2024(c) | 200 | 199 | ||||||||
3.15%, 03/20/2023 | 200 | 201 | Westlake Automobile Receivables Trust 2018-3 | ||||||||
Americredit Automobile Receivables Trust 2018-3 | 2.98%, 01/18/2022(c) | 300 | 300 | ||||||||
3.11%, 01/18/2022 | 500 | 500 | 3.32%, 10/16/2023(c) | 300 | 301 | ||||||
Bank of The West Auto Trust 2017-1 | World Omni Select Auto Trust 2018-1 | ||||||||||
1.78%, 02/15/2021(c) | 114 | 113 | 3.24%, 04/15/2022(c) | 300 | 300 | ||||||
Bank of The West Auto Trust 2018-1 | $ | 11,753 | |||||||||
3.09%, 04/15/2021(c) | 400 | 400 | Automobile Floor Plan Asset Backed Securities- 1.76% | ||||||||
Capital Auto Receivables Asset Trust 2017-1 | Ally Master Owner Trust | ||||||||||
1.76%, 06/22/2020(c) | 118 | 117 | 2.70%, 01/17/2023 | 500 | 496 | ||||||
Capital Auto Receivables Asset Trust 2018-1 | 3.29%, 05/15/2023 | 500 | 503 | ||||||||
2.54%, 10/20/2020(c) | 479 | 478 | BMW Floorplan Master Owner Trust | ||||||||
Capital Auto Receivables Asset Trust 2018-2 | 2.78%, 05/15/2023(c) | 250 | 250 | ||||||||
3.02%, 02/22/2021(c) | 500 | 500 | 1.00 x 1 Month USD LIBOR + 0.32% | ||||||||
3.27%, 06/20/2023(c) | 250 | 250 | Ford Credit Floorplan Master Owner Trust A | ||||||||
CPS Auto Receivables Trust 2014-C | 2.86%, 10/15/2023 | 250 | 249 | ||||||||
3.77%, 08/17/2020(c) | 138 | 138 | 1.00 x 1 Month USD LIBOR + 0.40% | ||||||||
CPS Auto Receivables Trust 2017-D | 2.92%, 11/15/2021 | 300 | 300 | ||||||||
1.87%, 03/15/2021(c) | 61 | 61 | 1.00 x 1 Month USD LIBOR + 0.46% | ||||||||
CPS Auto Receivables Trust 2018-A | Navistar Financial Dealer Note Master Owner | ||||||||||
2.16%, 05/17/2021(c) | 116 | 116 | Trust II | ||||||||
CPS Auto Receivables Trust 2018-B | 3.14%, 09/25/2023(c) | 250 | 250 | ||||||||
2.72%, 09/15/2021(c) | 245 | 244 | 1.00 x 1 Month USD LIBOR + 0.63% | ||||||||
CPS Auto Receivables Trust 2018-D | |||||||||||
3.06%, 01/18/2022(c) | 533 | 533 | |||||||||
See accompanying notes. | 81 |
Schedule of Investments | |||||||||
Short-Term Income Account | |||||||||
December 31, 2018 | |||||||||
Principal | Principal | ||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||
Automobile Floor Plan Asset Backed Securities (continued) | Banks (continued) | ||||||||
Volvo Financial Equipment Master Owner Trust | Fifth Third Bank/Cincinnati OH | ||||||||
2.96%, 11/15/2022(c) | $ | 250 | $ | 251 | 1.63%, 09/27/2019 | $ | 250 | $ | 247 |
1.00 x 1 Month USD LIBOR + 0.50% | 2.25%, 06/14/2021 | 300 | 293 | ||||||
2.98%, 07/17/2023(c) | 400 | 404 | Goldman Sachs GroupInc/The | ||||||
1.00 x 1 Month USD LIBOR + 0.52% | 2.30%, 12/13/2019 | 400 | 396 | ||||||
$ | 2,703 | 3.00%, 04/26/2022 | 800 | 775 | |||||
Automobile Manufacturers - 1.53% | 3.62%, 04/26/2022 | 1,000 | 989 | ||||||
Daimler Finance North America LLC | 3 Month USD LIBOR + 1.11% | ||||||||
1.75%, 10/30/2019(c) | 350 | 345 | 3.64%, 04/23/2020 | 400 | 401 | ||||
Ford Motor Credit Co LLC | 3 Month USD LIBOR + 1.16% | ||||||||
2.02%, 05/03/2019 | 400 | 399 | 4.46%, 02/25/2021 | 400 | 406 | ||||
General Motors Financial Co Inc | 3 Month USD LIBOR + 1.77% | ||||||||
3.26%, 04/09/2021 | 300 | 293 | HSBC Holdings PLC | ||||||
3 Month USD LIBOR + 0.85% | 3.64%, 05/18/2024 | 250 | 244 | ||||||
4.15%, 06/19/2023 | 150 | 146 | 3 Month USD LIBOR + 1.00% | ||||||
PACCAR Financial Corp | ING GroepNV | ||||||||
2.20%, 09/15/2019 | 323 | 321 | 3.15%, 03/29/2022 | 450 | 442 | ||||
3.10%, 05/10/2021 | 250 | 249 | 3.95%, 03/29/2022 | 250 | 250 | ||||
Toyota Motor Credit Corp | 3 Month USD LIBOR + 1.15% | ||||||||
2.10%, 01/17/2019 | 200 | 200 | JPMorgan Chase & Co | ||||||
2.60%, 01/11/2022 | 400 | 394 | 2.30%, 08/15/2021 | 250 | 244 | ||||
$ | 2,347 | 3.39%, 04/25/2023 | 1,500 | 1,478 | |||||
Banks- 19.63% | 3 Month USD LIBOR + 0.90% | ||||||||
Bank of America Corp | 3.72%, 10/24/2023 | 500 | 500 | ||||||
2.50%, 10/21/2022 | 500 | 481 | 3 Month USD LIBOR + 1.23% | ||||||
2.63%, 10/19/2020 | 250 | 247 | 4.25%, 10/15/2020 | 750 | 764 | ||||
3.00%, 12/20/2023(d) | 430 | 418 | KeyBank NA/Cleveland OH | ||||||
3 Month USD LIBOR + 0.79% | 2.35%, 03/08/2019 | 650 | 649 | ||||||
3.63%, 01/20/2023 | 1,350 | 1,349 | 2.40%, 06/09/2022 | 400 | 387 | ||||
3 Month USD LIBOR + 1.16% | Morgan Stanley | ||||||||
4.20%, 08/26/2024 | 500 | 496 | 3.17%, 02/10/2021 | 500 | 494 | ||||
Bank of New York Mellon Corp/The | 3 Month USD LIBOR + 0.55% | ||||||||
2.20%, 05/15/2019 | 673 | 671 | 3.87%, 04/21/2021 | 600 | 603 | ||||
2.50%, 04/15/2021 | 300 | 296 | 3 Month USD LIBOR + 1.40% | ||||||
3.57%, 10/30/2023 | 500 | 501 | 3.89%, 10/24/2023 | 1,400 | 1,393 | ||||
3 Month USD LIBOR + 1.05% | 3 Month USD LIBOR + 1.40% | ||||||||
BB&T Corp | 4.10%, 05/22/2023 | 300 | 300 | ||||||
2.05%, 05/10/2021 | 200 | 195 | PNC Bank NA | ||||||
3.05%, 04/01/2022 | 100 | 100 | 2.00%, 05/19/2020 | 500 | 492 | ||||
3 Month USD LIBOR + 0.65% | 2.70%, 11/01/2022 | 600 | 583 | ||||||
3.20%, 02/01/2019 | 336 | 336 | 3.01%, 07/27/2022 | 400 | 396 | ||||
3 Month USD LIBOR + 0.66% | 3 Month USD LIBOR + 0.50% | ||||||||
BNP Paribas SA | PNC Financial Services Group Inc/The | ||||||||
3.50%, 03/01/2023(c) | 500 | 485 | 3.90%, 04/29/2024 | 150 | 149 | ||||
Branch Banking & Trust Co | State Street Corp | ||||||||
2.10%, 01/15/2020 | 600 | 594 | 3.10%, 05/15/2023 | 688 | 676 | ||||
2.63%, 01/15/2022 | 600 | 589 | SunTrust Bank/Atlanta GA | ||||||
Capital One NA | 2.25%, 01/31/2020 | 400 | 395 | ||||||
3.54%, 09/13/2019 | 500 | 501 | 2.45%, 08/01/2022 | 600 | 578 | ||||
3 Month USD LIBOR + 0.77% | 3.15%, 08/02/2022 | 250 | 247 | ||||||
3.67%, 01/30/2023 | 600 | 593 | 3 Month USD LIBOR + 0.59% | ||||||
3 Month USD LIBOR + 1.15% | SunTrust Banks Inc | ||||||||
Citigroup Inc | 2.90%, 03/03/2021 | 500 | 496 | ||||||
2.70%, 03/30/2021 | 900 | 887 | UBS AG/London | ||||||
3.45%, 04/25/2022 | 200 | 197 | 2.20%, 06/08/2020(c) | 250 | 246 | ||||
3 Month USD LIBOR + 0.96% | 3.35%, 06/08/2020(c) | 250 | 250 | ||||||
3.50%, 05/15/2023 | 250 | 245 | 3 Month USD LIBOR + 0.58% | ||||||
3.74%, 05/17/2024 | 250 | 244 | UBS Group Funding Switzerland AG | ||||||
3 Month USD LIBOR + 1.10% | 3.49%, 05/23/2023(c) | 300 | 293 | ||||||
4.00%, 08/05/2024 | 274 | 271 | US Bancorp | ||||||
Credit Suisse Group AG | 3.60%, 09/11/2024 | 650 | 647 | ||||||
4.02%, 06/12/2024(c) | 250 | 246 | US Bank NA/Cincinnati OH | ||||||
3 Month USD LIBOR + 1.24% | 2.00%, 01/24/2020 | 400 | 396 | ||||||
4.21%, 06/12/2024(c),(d) | 250 | 249 | 2.05%, 10/23/2020 | 300 | 295 | ||||
3 Month USD LIBOR + 1.24% | Wells Fargo & Co | ||||||||
Fifth Third Bancorp | 3.60%, 01/24/2023 | 1,000 | 990 | ||||||
2.60%, 06/15/2022 | 600 | 584 | 3 Month USD LIBOR + 1.11% | ||||||
4.30%, 01/16/2024 | 400 | 405 |
See accompanying notes.
82
Schedule of Investments | |||||||||||
Short-Term Income Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Banks (continued) | Computers - 1.10% | ||||||||||
Wells Fargo Bank NA | Apple Inc | ||||||||||
2.98%, 07/23/2021 | $ | 500 | $ | 497 | 1.90%, 02/07/2020 | $ | 200 | $ | 198 | ||
3 Month USD LIBOR + 0.50% | 2.50%, 02/09/2022 | 400 | 394 | ||||||||
$ | 30,061 | Dell International LLC / EMC Corp | |||||||||
Beverages- 0.93% | 3.48%, 06/01/2019(c) | 600 | 598 | ||||||||
Anheuser-Busch InBev Finance Inc | International Business Machines Corp | ||||||||||
3.30%, 02/01/2023 | 400 | 389 | 2.25%, 02/19/2021 | 500 | 490 | ||||||
Anheuser-Busch InBevWorldwideInc | $ | 1,680 | |||||||||
3.17%, 01/12/2024 | 150 | 145 | Consumer Products - 0.26% | ||||||||
3 Month USD LIBOR + 0.74% | Reckitt Benckiser Treasury Services PLC | ||||||||||
KeurigDr Pepper Inc | 3.38%, 06/24/2022(c) | 400 | 393 | ||||||||
3.55%, 05/25/2021(c) | 250 | 250 | 3 Month USD LIBOR + 0.56% | ||||||||
4.06%, 05/25/2023(c) | 100 | 100 | Credit Card Asset Backed Securities- 0.20% | ||||||||
PepsiCo Inc | Capital One Multi-Asset Execution Trust | ||||||||||
1.35%, 10/04/2019 | 350 | 346 | 2.97%, 09/16/2024 | 300 | 301 | ||||||
2.15%, 10/14/2020 | 200 | 197 | 1.00 x 1 Month USD LIBOR + 0.51% | ||||||||
$ | 1,427 | Diversified Financial Services- 1.03% | |||||||||
Biotechnology- 1.53% | American Express Co | ||||||||||
Amgen Inc | 3.70%, 11/05/2021 | 150 | 151 | ||||||||
2.20%, 05/22/2019 | 373 | 372 | GE Capital International Funding Co Unlimited | ||||||||
2.20%, 05/11/2020 | 200 | 198 | Co | ||||||||
2.65%, 05/11/2022 | 400 | 391 | 2.34%, 11/15/2020 | 750 | 724 | ||||||
Biogen Inc | GTP Acquisition Partners I LLC | ||||||||||
2.90%, 09/15/2020 | 500 | 496 | 2.35%, 06/15/2045(c) | 721 | 710 | ||||||
Celgene Corp | $ | 1,585 | |||||||||
3.25%, 08/15/2022 | 250 | 246 | Electric - 3.83% | ||||||||
3.63%, 05/15/2024 | 350 | 341 | Alabama Power Co | ||||||||
Gilead SciencesInc | 2.45%, 03/30/2022 | 250 | 243 | ||||||||
1.85%, 09/20/2019 | 300 | 297 | Alliant Energy Finance LLC | ||||||||
$ | 2,341 | 3.75%, 06/15/2023(c) | 150 | 151 | |||||||
Building Materials- 0.19% | Black Hills Corp | ||||||||||
Martin Marietta Materials Inc | 4.25%, 11/30/2023 | 500 | 504 | ||||||||
3.29%, 12/20/2019 | 300 | 299 | CenterPoint Energy Inc | ||||||||
3 Month USD LIBOR + 0.50% | 3.60%, 11/01/2021 | 300 | 301 | ||||||||
Chemicals - 0.68% | Dominion Energy Inc | ||||||||||
Air Liquide Finance SA | 2.58%, 07/01/2020 | 200 | 197 | ||||||||
1.75%, 09/27/2021(c) | 250 | 239 | 2.96%, 07/01/2019(f) | 650 | 648 | ||||||
Chevron Phillips Chemical Co LLC / Chevron | Duke Energy Florida LLC | ||||||||||
Phillips Chemical Co LP | 1.85%, 01/15/2020 | 400 | 396 | ||||||||
2.45%, 05/01/2020(c) | 168 | 166 | 3.10%, 08/15/2021 | 250 | 250 | ||||||
3.30%, 05/01/2023(c) | 200 | 198 | Emera US Finance LP | ||||||||
DowDuPont Inc | 2.70%, 06/15/2021 | 300 | 292 | ||||||||
3.82%, 11/15/2023 | 250 | 246 | Exelon Corp | ||||||||
3 Month USD LIBOR + 1.11% | 3.50%, 06/01/2022 | 500 | 489 | ||||||||
International Flavors & Fragrances Inc | Fortis Inc/Canada | ||||||||||
3.40%, 09/25/2020 | 100 | 100 | 2.10%, 10/04/2021 | 633 | 608 | ||||||
Westlake Chemical Corp | Indiantown Cogeneration LP | ||||||||||
3.60%, 07/15/2022 | 100 | 99 | 9.77%, 12/15/2020 | 134 | 142 | ||||||
$ | 1,048 | San Diego Gas & Electric Co | |||||||||
Commercial Mortgage Backed Securities- 1.13% | 1.91%, 02/01/2022 | 101 | 99 | ||||||||
Ginnie Mae | Sempra Energy | ||||||||||
0.49%, 09/16/2055(e),(f) | 2,951 | 93 | 2.40%, 02/01/2020 | 250 | 247 | ||||||
0.70%, 01/16/2054(e),(f) | 2,669 | 92 | 2.94%, 01/15/2021 | 500 | 492 | ||||||
0.76%, 10/16/2054(e),(f) | 3,439 | 113 | 3 Month USD LIBOR + 0.50% | ||||||||
0.84%, 02/16/2055(e),(f) | 5,452 | 178 | Southern California Edison Co | ||||||||
0.87%, 01/16/2055(e),(f) | 5,599 | 224 | 1.85%, 02/01/2022 | 207 | 201 | ||||||
1.06%, 06/16/2045(e),(f) | 1,443 | 80 | Texas-New Mexico Power Co | ||||||||
1.37%, 12/16/2036(e),(f) | 2,050 | 109 | 9.50%, 04/01/2019(c) | 202 | 205 | ||||||
GS Mortgage Securities Trust 2017-GS6 | WEC Energy Group Inc | ||||||||||
1.95%, 05/10/2050 | 488 | 477 | 3.38%, 06/15/2021 | 400 | 400 | ||||||
JPMDB Commercial Mortgage Securities Trust | $ | 5,865 | |||||||||
2016- | C4 | Electronics - 0.59% | |||||||||
1.54%, 12/15/2049 | 373 | 363 | Fortive Corp | ||||||||
$ | 1,729 | 1.80%, 06/15/2019 | 35 | 35 | |||||||
2.35%, 06/15/2021 | 300 | 292 | |||||||||
Honeywell International Inc | |||||||||||
1.85%, 11/01/2021 | 600 | 580 | |||||||||
$ | 907 |
See accompanying notes.
83
Schedule of Investments Short-Term Income Account December 31, 2018
Principal | Principal | |||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | |||||||
Finance - Mortgage Loan/Banker- 11.22% | Insurance (continued) | |||||||||
Fannie Mae | MassMutual Global Funding II | |||||||||
1.38%, 10/07/2021 | $ | 650 | $ | 631 | 1.55%, 10/11/2019(c) | $ | 350 | $ | 346 | |
1.88%, 04/05/2022 | 3,000 | 2,940 | 2.00%, 04/15/2021(c) | 450 | 438 | |||||
2.00%, 01/05/2022 | 1,000 | 985 | 2.35%, 04/09/2019(c) | 865 | 864 | |||||
2.38%, 01/19/2023 | 4,000 | 3,970 | Metropolitan Life Global Funding I | |||||||
2.75%, 06/22/2021 | 1,225 | 1,232 | 1.95%, 09/15/2021(c) | 470 | 454 | |||||
2.88%, 10/30/2020 | 800 | 804 | 2.30%, 04/10/2019(c) | 573 | 572 | |||||
2.88%, 09/12/2023 | 1,600 | 1,619 | 3.03%, 09/07/2020(c) | 250 | 248 | |||||
Freddie Mac | United States Secured Overnight Financing | |||||||||
2.38%, 02/16/2021 | 500 | 498 | Rate + 0.57% | |||||||
2.38%, 01/13/2022 | 1,000 | 996 | 3.18%, 06/12/2020(c) | 250 | 250 | |||||
2.50%, 04/23/2020 | 2,000 | 1,997 | 3 Month USD LIBOR + 0.40% | |||||||
2.75%, 06/19/2023 | 1,500 | 1,509 | New York Life Global Funding | |||||||
$ | 17,181 | 1.95%, 02/11/2020(c) | 400 | 395 | ||||||
Food - 1.29% | 2.00%, 04/13/2021(c) | 400 | 390 | |||||||
ConagraBrandsInc | 2.15%, 06/18/2019(c) | 124 | 123 | |||||||
3.22%, 10/22/2020 | 250 | 249 | 3.29%, 06/10/2022(c) | 1,000 | 986 | |||||
3 Month USD LIBOR + 0.75% | 3 Month USD LIBOR + 0.52% | |||||||||
3.80%, 10/22/2021 | 100 | 100 | $ | 7,073 | ||||||
Kraft Heinz Foods Co | Internet - 0.49% | |||||||||
3.19%, 02/10/2021 | 400 | 397 | Amazon.comInc | |||||||
3 Month USD LIBOR + 0.57% | 2.40%, 02/22/2023 | 500 | 484 | |||||||
4.00%, 06/15/2023 | 150 | 150 | 2.60%, 12/05/2019 | 273 | 272 | |||||
Mondelez International Holdings Netherlands BV | $ | 756 | ||||||||
1.63%, 10/28/2019(c) | 500 | 493 | Machinery - Construction & Mining- 0.32% | |||||||
Tyson FoodsInc | Caterpillar Financial Services Corp | |||||||||
2.25%, 08/23/2021 | 150 | 145 | 2.55%, 11/29/2022 | 500 | 486 | |||||
3.10%, 08/21/2020 | 200 | 197 | Machinery - Diversified- 0.39% | |||||||
3 Month USD LIBOR + 0.45% | John Deere Capital Corp | |||||||||
3.16%, 05/30/2019 | 250 | 250 | 2.05%, 03/10/2020 | 350 | 346 | |||||
3 Month USD LIBOR + 0.45% | 3.32%, 06/07/2023 | 250 | 246 | |||||||
$ | 1,981 | 3 Month USD LIBOR + 0.55% | ||||||||
Healthcare - Products - 0.49% | $ | 592 | ||||||||
Medtronic Global Holdings SCA | Media - 0.98% | |||||||||
1.70%, 03/28/2019 | 500 | 499 | Comcast Corp | |||||||
MedtronicInc | 2.85%, 10/01/2021 | 250 | 247 | |||||||
2.50%, 03/15/2020 | 250 | 249 | 3 Month USD LIBOR + 0.44% | |||||||
$ | 748 | 3.30%, 10/01/2020 | 250 | 251 | ||||||
Healthcare - Services - 0.44% | Time Warner Cable LLC | |||||||||
Humana Inc | 8.25%, 04/01/2019 | 505 | 511 | |||||||
2.50%, 12/15/2020 | 100 | 98 | Walt Disney Co/The | |||||||
Roche HoldingsInc | 1.95%, 03/04/2020 | 500 | 495 | |||||||
3.14%, 09/30/2019(c) | 323 | 323 | $ | 1,504 | ||||||
3 Month USD LIBOR + 0.34% | Mining - 0.13% | |||||||||
UnitedHealth GroupInc | Glencore Funding LLC | |||||||||
1.95%, 10/15/2020 | 250 | 246 | 4.13%, 05/30/2023(c) | 200 | 196 | |||||
$ | 667 | Miscellaneous Manufacturers - 0.81% | ||||||||
Home Equity Asset Backed Securities- 0.01% | General Electric Co | |||||||||
RASC Series 2005-AHL2 Trust | 5.50%, 01/08/2020 | 150 | 152 | |||||||
2.86%, 10/25/2035 | 18 | 18 | Ingersoll-Rand Global Holding Co Ltd | |||||||
1.00 x 1 Month USD LIBOR + 0.35% | 2.90%, 02/21/2021 | 500 | 495 | |||||||
Housewares - 0.26% | SiemensFinancieringsmaatschappij NV | |||||||||
Newell BrandsInc | 2.20%, 03/16/2020(c) | 350 | 346 | |||||||
2.60%, 03/29/2019 | 200 | 200 | 3.40%, 03/16/2022(c) | 250 | 250 | |||||
3.85%, 04/01/2023 | 200 | 197 | 3 Month USD LIBOR + 0.61% | |||||||
$ | 397 | $ | 1,243 | |||||||
Insurance - 4.62% | Mortgage Backed Securities- 6.04% | |||||||||
Allstate Corp/The | Alternative Loan Trust 2004-J8 | |||||||||
3.43%, 03/29/2023 | 250 | 245 | 6.00%, 02/25/2017 | 4 | 4 | |||||
3 Month USD LIBOR + 0.63% | Banc of America Funding 2004-1 Trust | |||||||||
Berkshire Hathaway Finance Corp | 5.25%, 02/25/2019 | 1 | 1 | |||||||
1.70%, 03/15/2019 | 500 | 499 | Banc of America Funding 2004-3 Trust | |||||||
Berkshire Hathaway Inc | 4.75%, 09/25/2019 | 1 | 1 | |||||||
2.75%, 03/15/2023 | 500 | 491 | CHL Mortgage Pass-Through Trust 2003-46 | |||||||
Five Corners Funding Trust | 4.28%, 01/19/2034(f) | 35 | 35 | |||||||
4.42%, 11/15/2023(c) | 750 | 772 | CHL Mortgage Pass-Through Trust 2004-J7 | |||||||
5.00%, 09/25/2019 | 1 | 1 |
See accompanying notes.
84
Schedule of Investments | |||||||||||
Short-Term Income Account | |||||||||||
December 31, 2018 | |||||||||||
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Mortgage Backed Securities (continued) | Mortgage Backed Securities (continued) | ||||||||||
Credit Suisse First Boston Mortgage Securities | Sequoia Mortgage Trust 2018-6 | ||||||||||
Corp | 4.00%, 07/25/2048(c),(f) | $ | 197 | $ | 198 | ||||||
5.00%, 09/25/2019 | $ | 2 | $ | 2 | Sequoia Mortgage Trust 2018-7 | ||||||
CSFB Mortgage-Backed Pass-Through | 4.00%, 09/25/2048(c),(f) | 240 | 243 | ||||||||
Certificates Series 2004-AR4 | Sequoia Mortgage Trust 2018-8 | ||||||||||
3.47%, 05/25/2034 | 20 | 20 | 4.00%, 11/25/2048(c),(f) | 733 | 736 | ||||||
1.00 x 1 Month USD LIBOR + 0.96% | Sequoia Mortgage Trust 2018-CH3 | ||||||||||
CSFB Mortgage-Backed Trust Series 2004-7 | 4.00%, 08/25/2048(c),(f) | 214 | 215 | ||||||||
5.00%, 10/25/2019 | 4 | 4 | Wells Fargo Mortgage Backed Securities 2018-1 | ||||||||
CSMC 2017-HL2 Trust | 3.50%, 07/25/2047(c),(f) | 395 | 391 | ||||||||
3.50%, 10/25/2047(c),(f) | 434 | 429 | $ | 9,245 | |||||||
JP Morgan Mortgage Trust 2004-A3 | Oil & Gas - 1.47% | ||||||||||
4.28%, 07/25/2034(f) | 22 | 22 | BP Capital Markets PLC | ||||||||
JP Morgan Mortgage Trust 2004-S1 | 4.75%, 03/10/2019 | 423 | 424 | ||||||||
5.00%, 09/25/2034 | 38 | 38 | Chevron Corp | ||||||||
JP Morgan Mortgage Trust 2016-4 | 2.90%, 03/03/2024 | 250 | 244 | ||||||||
3.50%, 10/25/2046(c),(f) | 599 | 593 | 3.22%, 03/03/2022 | 250 | 250 | ||||||
JP Morgan Mortgage Trust 2017-2 | 3 Month USD LIBOR + 0.48% | ||||||||||
3.50%, 05/25/2047(c),(f) | 397 | 392 | Cimarex Energy Co | ||||||||
JP Morgan Mortgage Trust 2017-4 | 4.38%, 06/01/2024 | 250 | 249 | ||||||||
3.50%, 11/25/2048(c),(f) | 407 | 402 | Phillips 66 | ||||||||
JP Morgan Mortgage Trust 2017-6 | 3.19%, 04/15/2020(c) | 300 | 300 | ||||||||
3.50%, 12/25/2048(c),(f) | 221 | 218 | 3 Month USD LIBOR + 0.75% | ||||||||
JP Morgan Mortgage Trust 2018-3 | Shell International Finance BV | ||||||||||
3.50%, 09/25/2048(c),(f) | 464 | 457 | 2.13%, 05/11/2020 | 505 | 500 | ||||||
JP Morgan Mortgage Trust 2018-4 | 2.38%, 08/21/2022 | 300 | 292 | ||||||||
3.50%, 10/25/2048(c),(f) | 278 | 274 | $ | 2,259 | |||||||
JP Morgan Mortgage Trust 2018-6 | Oil & Gas Services - 0.16% | ||||||||||
3.50%, 12/25/2048(c),(f) | 379 | 374 | Baker Hughes a GE Co LLC / Baker Hughes Co- | ||||||||
MASTR Asset Securitization Trust 2004-11 | ObligorInc | ||||||||||
5.00%, 12/25/2019 | 1 | 1 | 2.77%, 12/15/2022 | 250 | 240 | ||||||
MASTR Asset Securitization Trust 2004-9 | Other Asset Backed Securities- 6.40% | ||||||||||
5.00%, 09/25/2019 | 2 | 2 | CCG Receivables Trust 2018-1 | ||||||||
PHH Mortgage Trust Series 2008-CIM1 | 2.50%, 06/16/2025(c) | 94 | 94 | ||||||||
5.22%, 06/25/2038 | 85 | 82 | CCG Receivables Trust 2018-2 | ||||||||
1.00 x 1 Month USD LIBOR + 2.25% | 3.09%, 12/15/2025(c) | 500 | 499 | ||||||||
Prime Mortgage Trust 2005-2 | Drug Royalty II LP 2 | ||||||||||
5.25%, 07/25/2020 | 42 | 41 | 3.48%, 07/15/2023(c) | 190 | 190 | ||||||
Provident Funding Mortgage Loan Trust 2005-1 | Drug Royalty III LP 1 | ||||||||||
3.09%, 05/25/2035 | 98 | 97 | 3.98%, 04/15/2027(c) | 103 | 103 | ||||||
1.00 x 1 Month USD LIBOR + 0.58% | 4.27%, 10/15/2031(c) | 250 | 252 | ||||||||
PSMC 2018-1 Trust | 4.94%, 04/15/2027(c) | 169 | 170 | ||||||||
3.50%, 02/25/2048(c),(f) | 457 | 452 | 1.00 x 3 Month USD LIBOR + 2.50% | ||||||||
PSMC 2018-2 Trust | MMAF Equipment Finance LLC 2018-A | ||||||||||
3.50%, 06/25/2048(c),(f) | 478 | 472 | 2.92%, 07/12/2021(c) | 298 | 297 | ||||||
PSMC 2018-3 Trust | MVW Owner Trust 2015-1 | ||||||||||
4.00%, 08/25/2048(c),(f) | 244 | 246 | 2.52%, 12/20/2032(c) | 253 | 250 | ||||||
PSMC 2018-4 Trust | MVW Owner Trust 2016-1 | ||||||||||
4.00%, 11/25/2048(c),(f) | 735 | 740 | 2.25%, 12/20/2033(c) | 217 | 212 | ||||||
RALI Series 2004-QS3 Trust | MVW Owner Trust 2018-1 | ||||||||||
5.00%, 03/25/2019 | 1 | — | 3.45%, 01/21/2036(c) | 466 | 471 | ||||||
RBSSPResecuritization Trust 2009-7 | PFS Financing Corp | ||||||||||
2.71%, 06/26/2037(c) | 19 | 18 | 2.40%, 10/17/2022(c) | 300 | 296 | ||||||
1.00 x 1 Month USD LIBOR + 0.40% | 2.93%, 10/15/2021(c) | 200 | 200 | ||||||||
Sequoia Mortgage Trust 2013-4 | 1.00 x 1 Month USD LIBOR + 0.47% | ||||||||||
1.55%, 04/25/2043(f) | 44 | 42 | 3.04%, 03/15/2021(c) | 750 | 750 | ||||||
Sequoia Mortgage Trust 2013-8 | 1.00 x 1 Month USD LIBOR + 0.58% | ||||||||||
2.25%, 06/25/2043(f) | 303 | 297 | 3.06%, 07/15/2022(c) | 750 | 752 | ||||||
Sequoia Mortgage Trust 2017-1 | 1.00 x 1 Month USD LIBOR + 0.60% | ||||||||||
3.50%, 02/25/2047(c),(f) | 411 | 406 | 3.19%, 04/17/2023(c) | 250 | 250 | ||||||
Sequoia Mortgage Trust 2017-2 | TrafiguraSecuritisationFinance PLC 2017-1 | ||||||||||
3.50%, 02/25/2047(c),(f) | 201 | 199 | 3.31%, 12/15/2020(c) | 1,000 | 1,005 | ||||||
Sequoia Mortgage Trust 2017-3 | 1.00 x 1 Month USD LIBOR + 0.85% | ||||||||||
3.50%, 04/25/2047(c),(f) | 361 | 358 | Verizon Owner Trust 2016-1 | ||||||||
Sequoia Mortgage Trust 2018-3 | 1.42%, 01/20/2021(c) | 246 | 245 | ||||||||
3.50%, 03/25/2048(c),(f) | 277 | 274 | Verizon Owner Trust 2016-2 | ||||||||
Sequoia Mortgage Trust 2018-5 | 1.68%, 05/20/2021(c) | 890 | 885 | ||||||||
3.50%, 05/25/2048(c),(f) | 472 | 468 |
See accompanying notes.
85
Schedule of Investments Short-Term Income Account December 31, 2018
Principal | Principal | ||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | ||||||||
Other Asset Backed Securities (continued) | REITs (continued) | ||||||||||
Verizon Owner Trust 2017-1 | SBA Tower Trust | ||||||||||
2.06%, 09/20/2021(c) | $ | 250 | $ | 248 | 2.88%, 07/15/2046(c) | $ | 400 | $ | 393 | ||
Verizon Owner Trust 2017-2 | 3.17%, 04/09/2047(c) | 400 | 393 | ||||||||
1.92%, 12/20/2021(c) | 750 | 742 | Welltower Inc | ||||||||
Verizon Owner Trust 2017-3 | 3.75%, 03/15/2023 | 80 | 80 | ||||||||
2.06%, 04/20/2022(c) | 300 | 296 | 4.95%, 01/15/2021 | 250 | 256 | ||||||
Verizon Owner Trust 2018-1 | $ | 3,087 | |||||||||
2.82%, 09/20/2022(c) | 500 | 499 | Retail - 0.81% | ||||||||
Verizon Owner Trust 2018-A | Home Depot Inc/The | ||||||||||
3.23%, 04/20/2023 | 600 | 604 | 1.80%, 06/05/2020 | 500 | 493 | ||||||
Volvo Financial Equipment LLC Series 2018-1 | McDonald's Corp | ||||||||||
2.26%, 09/15/2020(c) | 232 | 231 | 2.75%, 12/09/2020 | 500 | 496 | ||||||
VSE 2018-A VoiMortgage LLC | Walmart Inc | ||||||||||
3.56%, 02/20/2036(c) | 262 | 265 | 1.75%, 10/09/2019 | 100 | 99 | ||||||
$ | 9,806 | 1.90%, 12/15/2020 | 150 | 148 | |||||||
Packaging & Containers - 0.13% | $ | 1,236 | |||||||||
Packaging Corp of America | Savings & Loans - 0.00% | ||||||||||
2.45%, 12/15/2020 | 200 | 196 | Washington Mutual Bank / Henderson NV | ||||||||
Pharmaceuticals - 1.41% | 0.00%, 01/15/2013(g),(h),(i) | 200 | — | ||||||||
AbbVieInc | Semiconductors - 0.80% | ||||||||||
2.30%, 05/14/2021 | 200 | 195 | Broadcom Corp / Broadcom Cayman Finance Ltd | ||||||||
2.50%, 05/14/2020 | 336 | 334 | 2.38%, 01/15/2020 | 600 | 593 | ||||||
Bayer US Finance II LLC | 3.00%, 01/15/2022 | 200 | 192 | ||||||||
3.50%, 06/25/2021(c) | 250 | 248 | Microchip Technology Inc | ||||||||
3.80%, 12/15/2023(c) | 250 | 239 | 4.33%, 06/01/2023(c) | 200 | 195 | ||||||
3 Month USD LIBOR + 1.01% | QUALCOMMInc | ||||||||||
3.88%, 12/15/2023(c) | 200 | 197 | 3.25%, 01/30/2023 | 250 | 249 | ||||||
Cigna Corp | 3 Month USD LIBOR + 0.73% | ||||||||||
3.44%, 09/17/2021(c) | 500 | 493 | $ | 1,229 | |||||||
3 Month USD LIBOR + 0.65% | Software - 0.86% | ||||||||||
CVS Health Corp | Microsoft Corp | ||||||||||
3.13%, 03/09/2020 | 200 | 200 | 1.10%, 08/08/2019 | 250 | 247 | ||||||
Mead Johnson Nutrition Co | 1.85%, 02/12/2020 | 400 | 397 | ||||||||
3.00%, 11/15/2020 | 250 | 249 | Oracle Corp | ||||||||
$ | 2,155 | 1.90%, 09/15/2021 | 200 | 194 | |||||||
Pipelines - 2.24% | 2.25%, 10/08/2019 | 250 | 249 | ||||||||
Buckeye Partners LP | VMwareInc | ||||||||||
4.15%, 07/01/2023 | 400 | 389 | 2.95%, 08/21/2022 | 250 | 238 | ||||||
Columbia Pipeline Group Inc | $ | 1,325 | |||||||||
3.30%, 06/01/2020 | 168 | 167 | Student Loan Asset Backed Securities- 5.25% | ||||||||
Enterprise Products Operating LLC | Commonbond Student Loan Trust 2018-BGS | ||||||||||
3.50%, 02/01/2022 | 500 | 501 | 3.56%, 09/25/2045(c) | 380 | 380 | ||||||
Florida Gas Transmission Co LLC | Commonbond Student Loan Trust 2018-C-GS | ||||||||||
3.88%, 07/15/2022(c) | 250 | 252 | 3.87%, 02/25/2046(c) | 350 | 351 | ||||||
7.90%, 05/15/2019(c) | 559 | 567 | Keycorp Student Loan Trust 2000-b | ||||||||
Kinder MorganInc/DE | 2.80%, 07/25/2029 | 468 | 465 | ||||||||
3.72%, 01/15/2023 | 500 | 489 | 1.00 x 3 Month USD LIBOR + 0.31% | ||||||||
3 Month USD LIBOR + 1.28% | KeyCorp Student Loan Trust 2003-A | ||||||||||
ONEOK Partners LP | 3.02%, 01/25/2037 | 653 | 639 | ||||||||
5.00%, 09/15/2023 | 325 | 335 | 1.00 x 3 Month USD LIBOR + 0.53% | ||||||||
TransCanadaPipeLinesLtd | KeyCorp Student Loan Trust 2004-A | ||||||||||
4.83%, 05/15/2067 | 900 | 725 | 3.04%, 01/27/2042 | 2 | 2 | ||||||
3 Month USD LIBOR + 2.21% | 1.00 x 3 Month USD LIBOR + 0.53% | ||||||||||
$ | 3,425 | KeyCorp Student Loan Trust 2006-A | |||||||||
REITs - 2.02% | 3.13%, 09/27/2035 | 155 | 155 | ||||||||
Alexandria Real Estate EquitiesInc | 1.00 x 3 Month USD LIBOR + 0.31% | ||||||||||
2.75%, 01/15/2020 | 510 | 506 | NavientPrivate Education Loan Trust 2014-CT | ||||||||
3.90%, 06/15/2023 | 250 | 251 | 3.16%, 09/16/2024(c) | 84 | 84 | ||||||
CubeSmart LP | 1.00 x 1 Month USD LIBOR + 0.70% | ||||||||||
4.38%, 12/15/2023 | 92 | 94 | NavientPrivate Education Loan Trust 2017-A | ||||||||
Digital Realty Trust LP | 2.86%, 12/16/2058(c) | 126 | 126 | ||||||||
3.40%, 10/01/2020 | 300 | 299 | 1.00 x 1 Month USD LIBOR + 0.40% | ||||||||
Healthcare Realty Trust Inc | NavientPrivate Education Loan Trust 2018-B | ||||||||||
3.75%, 04/15/2023 | 365 | 359 | 2.81%, 12/15/2059(c) | 163 | 163 | ||||||
Hospitality Properties Trust | 1.00 x 1 Month USD LIBOR + 0.35% | ||||||||||
4.50%, 06/15/2023 | 200 | 202 | NavientPrivate Education Refi Loan Trust | ||||||||
Omega Healthcare InvestorsInc | 2018 | -A | |||||||||
4.95%, 04/01/2024 | 250 | 254 | 2.53%, 02/18/2042(c) | 333 | 330 |
See accompanying notes.
86
Schedule of Investments | ||||||||||||
Short-Term Income Account | ||||||||||||
December 31, 2018 | ||||||||||||
Principal | Principal | |||||||||||
BONDS (continued) | Amount (000’s) Value (000’s) | BONDS (continued) | Amount (000’s) Value (000’s) | |||||||||
Student Loan Asset Backed Securities (continued) | Transportation - 0.68% | |||||||||||
NavientPrivate Education Refi Loan Trust | Ryder SystemInc | |||||||||||
2018 | -C | 2.25%, 09/01/2021 | $ | 200 | $ | 193 | ||||||
3.01%, 06/16/2042(c) | $ | 220 | $ | 219 | 3.75%, 06/09/2023 | 200 | 199 | |||||
NavientPrivate Education Refi Loan Trust | United Parcel ServiceInc | |||||||||||
2018 | -D | 2.85%, 04/01/2023 | 650 | 646 | ||||||||
2.76%, 12/15/2059(c) | 329 | 329 | 3 Month USD LIBOR + 0.45% | |||||||||
1.00 x 1 Month USD LIBOR + 0.30% | $ | 1,038 | ||||||||||
NavientStudent Loan Trust 2018-EA | TOTAL BONDS | $ | 146,743 | |||||||||
3.43%, 12/15/2059(c) | 1,000 | 1,004 | U.S. GOVERNMENT & GOVERNMENT | Principal | ||||||||
SLM Private Credit Student Loan Trust 2002-A | AGENCY OBLIGATIONS- 2.73% | Amount (000's) Value (000's) | ||||||||||
3.34%, 12/16/2030 | 364 | 364 | Federal Home Loan Mortgage Corporation (FHLMC) - 0.01% | |||||||||
1.00 x 3 Month USD LIBOR + 0.55% | 4.13%, 09/01/2035 | $ | 12 | $ | 13 | |||||||
SLM Private Credit Student Loan Trust 2004-A | 1.00 x US Treasury Yield Curve Rate T | |||||||||||
3.19%, 06/15/2033 | 142 | 140 | Note Constant Maturity 1 Year + 2.25% | |||||||||
1.00 x 3 Month USD LIBOR + 0.40% | Federal National Mortgage Association (FNMA) - 0.08% | |||||||||||
SLM Private Credit Student Loan Trust 2004-B | 3.52%, 12/01/2032 | 4 | 4 | |||||||||
3.12%, 03/15/2024 | 462 | 460 | 1.00 x 12 Month USD LIBOR + 1.64% | |||||||||
1.00 x 3 Month USD LIBOR + 0.33% | 3.62%, 01/01/2035 | 8 | 9 | |||||||||
SLM Private Credit Student Loan Trust 2006-A | 1.00 x 12 Month USD LIBOR + 1.75% | |||||||||||
3.08%, 06/15/2039 | 848 | 823 | 4.01%, 04/01/2033 | 28 | 29 | |||||||
1.00 x 3 Month USD LIBOR + 0.29% | 1.00 x 6 Month USD LIBOR + 1.51% | |||||||||||
SLM Private Credit Student Loan Trust 2006-B | 4.11%, 02/01/2037 | 22 | 23 | |||||||||
2.99%, 12/15/2039 | 332 | 326 | 1.00 x US Treasury Yield Curve Rate T | |||||||||
1.00 x 3 Month USD LIBOR + 0.20% | Note Constant Maturity 1 Year + 2.11% | |||||||||||
SLM Private Education Loan Trust 2013-A | 4.34%, 08/01/2034 | 7 | 7 | |||||||||
1.77%, 05/17/2027(c) | 143 | 142 | 1.00 x 12 Month USD LIBOR + 1.63% | |||||||||
SLM Private Education Loan Trust 2013-B | 4.40%, 07/01/2034 | 19 | 19 | |||||||||
1.85%, 06/17/2030(c) | 120 | 120 | 1.00 x 12 Month USD LIBOR + 1.65% | |||||||||
SMB Private Education Loan Trust 2017-A | 4.57%, 02/01/2035 | 3 | 4 | |||||||||
2.91%, 06/17/2024(c) | 50 | 50 | 1.00 x 6 Month USD LIBOR + 2.07% | |||||||||
1.00 x 1 Month USD LIBOR + 0.45% | 4.69%, 11/01/2035 | 1 | 1 | |||||||||
SMB Private Education Loan Trust 2017-B | 1.00 x Cost of funds for the 11th District of | |||||||||||
2.73%, 06/17/2024(c) | 297 | 297 | San Francisco + 1.27% | |||||||||
1.00 x 1 Month USD LIBOR + 0.27% | 4.75%, 12/01/2033 | 12 | 12 | |||||||||
SMB Private Education Loan Trust 2018-A | 1.00 x 6 Month USD LIBOR + 2.25% | |||||||||||
2.81%, 03/16/2026(c) | 650 | 650 | 4.79%, 11/01/2032 | 3 | 3 | |||||||
1.00 x 1 Month USD LIBOR + 0.35% | 1.00 x US Treasury Yield Curve Rate T | |||||||||||
SMB Private Education Loan Trust 2018-B | Note Constant Maturity 1 Year + 2.29% | |||||||||||
2.78%, 12/16/2024(c) | 217 | 217 | 8.00%, 05/01/2027 | 6 | 6 | |||||||
1.00 x 1 Month USD LIBOR + 0.32% | $ | 117 | ||||||||||
SMB Private Education Loan Trust 2018-C | Government National Mortgage Association (GNMA) - 0.00% | |||||||||||
2.76%, 09/15/2025(c) | 208 | 208 | 10.00%, 06/15/2020 | 1 | 1 | |||||||
1.00 x 1 Month USD LIBOR + 0.30% | ||||||||||||
$ | 8,044 | U.S. Treasury- 2.64% | ||||||||||
1.88%, 08/31/2022 | 2,000 | 1,957 | ||||||||||
Telecommunications - 2.25% | 2.63%, 06/15/2021 | 125 | 125 | |||||||||
AT&T Inc | 2.75%, 07/31/2023 | 200 | 202 | |||||||||
3.50%, 02/15/2023 | 250 | 245 | 2.88%, 10/31/2020 | 750 | 755 | |||||||
3 Month USD LIBOR + 0.89% | 2.88%, 11/15/2021 | 1,000 | 1,011 | |||||||||
3.60%, 02/17/2023 | 200 | 199 | $ | 4,050 | ||||||||
Cisco Systems Inc | TOTAL U.S. GOVERNMENT & GOVERNMENT AGENCY | |||||||||||
2.20%, 02/28/2021 | 250 | 247 | OBLIGATIONS | $ | 4,181 | |||||||
4.95%, 02/15/2019 | 500 | 501 | Total Investments | $ | 155,780 | |||||||
Crown Castle Towers LLC | Other Assets and Liabilities - (1.71)% | (2,622 | ) | |||||||||
3.22%, 05/15/2022(c) | 75 | 74 | TOTAL NET ASSETS - 100.00% | $ | 153,158 | |||||||
Sprint Spectrum Co LLC / Sprint Spectrum Co II | ||||||||||||
LLC / Sprint Spectrum Co III LLC | ||||||||||||
3.36%, 03/20/2023(c) | 516 | 509 | (a) | Affiliated Security. Security is either an affiliate (and registered under the | ||||||||
4.74%, 03/20/2025(c) | 950 | 932 | Investment Company Act of 1940) or an affiliate as defined by the Investment | |||||||||
Verizon CommunicationsInc | Company Act of 1940 (controls 5.0% or more of the outstanding voting | |||||||||||
3.20%, 05/22/2020 | 200 | 199 | shares of the security). Please see affiliated sub-schedule for transactional | |||||||||
3 Month USD LIBOR + 0.55% | information. | |||||||||||
Vodafone Group PLC | (b) | Current yield shown is as of period end. | ||||||||||
3.43%, 01/16/2024 | 250 | 244 | (c) | Security exempt from registration under Rule 144A of the Securities Act of | ||||||||
3 Month USD LIBOR + 0.99% | 1933. These securities may be resold in transactions exempt from registration, | |||||||||||
3.75%, 01/16/2024 | 300 | 296 | normally to qualified institutional buyers. At the end of the period, the value of | |||||||||
$ | 3,446 | these securities totaled $49,562 or 32.36% of net assets. | ||||||||||
(d) | 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. |
See accompanying notes.
87
Schedule of Investments Short-Term Income Account December 31, 2018
(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 currentmarket 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) | Non-income producing security |
(h) | The value of these investments was determined using significant unobservable inputs. |
(i) | 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 resultsin not all securities being identified as Level 3 of the fair value hierarchy. At the end of the period, the fair value of these securities totaled $0 or 0.00% of net assets. |
Portfolio Summary (unaudited) | |||
Sector | Percent | ||
Financial | 27.30 | % | |
Asset Backed Securities | 21.29 | % | |
Government | 13.86 | % | |
Mortgage Securities | 7.26 | % | |
Consumer, Non-cyclical | 6.35 | % | |
Industrial | 4.30 | % | |
Energy | 3.87 | % | |
Utilities | 3.83 | % | |
Communications | 3.72 | % | |
Consumer, Cyclical | 3.19 | % | |
Investment Companies | 3.17 | % | |
Technology | 2.76 | % | |
Basic Materials | 0.81 | % | |
Other Assets and Liabilities | (1.71 | )% | |
TOTAL NET ASSETS | 100.00 | % |
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 2,438 | $ | 66,954 | $ | 64,536 | $ | 4,856 | |||
$ | 2,438 | $ | 66,954 | $ | 64,536 | $ | 4,856 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 51 | $ | — | $ | — | $ | — | |||
$ | 51 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
88
Schedule of Investments | ||||||||||
SmallCap Account | ||||||||||
December 31, 2018 | ||||||||||
COMMON STOCKS - 98.31% | Shares Held Value (000's) | COMMON STOCKS (continued) | Shares Held Value (000’s) | |||||||
Automobile Parts & Equipment - 2.03% | Electric - 3.18% | |||||||||
AltraIndustrial Motion Corp | 79,900 | $ | 2,010 | PNM Resources Inc | 63,280 | $ | 2,600 | |||
ModineManufacturing Co(a) | 48,300 | 522 | Portland General Electric Co | 60,000 | 2,751 | |||||
Visteon Corp(a) | 14,700 | 886 | $ | 5,351 | ||||||
$ | 3,418 | Electrical Components & Equipment - 0.23% | ||||||||
Banks- 10.46% | nLight Inc(a) | 21,290 | 379 | |||||||
CadenceBanCorp | 59,400 | 997 | Electronics - 3.83% | |||||||
Cathay General Bancorp | 68,600 | 2,300 | Advanced Energy IndustriesInc(a) | 28,300 | 1,215 | |||||
CenterState Bank Corp | 88,840 | 1,869 | II-VIInc(a) | 43,800 | 1,422 | |||||
First Interstate BancSystem Inc | 29,800 | 1,089 | SYNNEX Corp | 22,800 | 1,843 | |||||
First Merchants Corp | 32,800 | 1,124 | VishayIntertechnology Inc | 108,900 | 1,961 | |||||
Franklin Financial Network Inc(a) | 22,700 | 599 | $ | 6,441 | ||||||
Independent Bank Corp/MI | 2,600 | 55 | Engineering & Construction - 2.06% | |||||||
Lakeland BancorpInc | 22,750 | 337 | MasTec Inc(a) | 54,500 | 2,211 | |||||
Popular Inc | 35,500 | 1,676 | Tutor Perini Corp(a) | 78,100 | 1,247 | |||||
Sandy Spring BancorpInc | 35,900 | 1,125 | $ | 3,458 | ||||||
TCF Financial Corp | 107,600 | 2,097 | Entertainment - 4.00% | |||||||
Umpqua Holdings Corp | 114,200 | 1,816 | Eldorado ResortsInc(a) | 69,600 | 2,520 | |||||
Union Bankshares Corp | 38,000 | 1,073 | Golden EntertainmentInc(a) | 49,900 | 799 | |||||
United Community BanksInc/GA | 66,820 | 1,434 | Live Nation Entertainment Inc(a) | 31,300 | 1,542 | |||||
$ | 17,591 | Vail ResortsInc | 8,870 | 1,870 | ||||||
Biotechnology- 3.56% | $ | 6,731 | ||||||||
Acceleron Pharma Inc(a) | 18,600 | 810 | Environmental Control - 2.50% | |||||||
Allogene Therapeutics Inc(a) | 9,800 | 264 | Advanced Disposal ServicesInc(a) | 89,900 | 2,152 | |||||
Aratana Therapeutics Inc(a) | 55,800 | 342 | AquaVenture Holdings Ltd(a) | 15,540 | 294 | |||||
Bluebird BioInc(a) | 3,500 | 347 | Energy Recovery Inc(a) | 44,910 | 302 | |||||
Denali Therapeutics Inc(a) | 30,300 | 626 | Tetra Tech Inc | 28,100 | 1,455 | |||||
DNIB UnwindInc - Warrants(a),(b),(c) | 1,938 | — | $ | 4,203 | ||||||
Exact Sciences Corp(a) | 12,100 | 764 | ||||||||
FibroGen Inc(a) | 17,600 | 815 | Food - 1.37% | |||||||
InsmedInc(a) | 20,340 | 267 | Darling IngredientsInc(a) | 119,500 | 2,299 | |||||
MacroGenics Inc(a) | 29,800 | 378 | Gas - 1.48% | |||||||
Magenta Therapeutics Inc(a) | 38,100 | 217 | Southwest Gas HoldingsInc | 32,450 | 2,482 | |||||
Sage Therapeutics Inc(a) | 1,650 | 158 | Healthcare - Products - 1.61% | |||||||
Seattle Genetics Inc(a) | 11,952 | 677 | Intersect ENT Inc(a) | 25,300 | 713 | |||||
Spark Therapeutics Inc(a) | 8,155 | 319 | Nevro Corp(a) | 22,640 | 880 | |||||
$ | 5,984 | RA Medical SystemsInc(a) | 29,300 | 233 | ||||||
Chemicals - 1.47% | STAAR Surgical Co(a) | 27,700 | 884 | |||||||
Cabot Corp | 32,860 | 1,411 | $ | 2,710 | ||||||
Univar Inc(a) | 59,700 | 1,059 | Healthcare - Services - 3.98% | |||||||
$ | 2,470 | AddusHomeCare Corp(a) | 19,100 | 1,297 | ||||||
Commercial Services - 7.79% | Encompass Health Corp | 33,800 | 2,085 | |||||||
AMN Healthcare Services Inc(a) | 48,000 | 2,720 | Natera Inc(a) | 31,000 | 433 | |||||
Arlo Technologies Inc(a) | 55,950 | 558 | Syneos Health Inc(a) | 46,560 | 1,832 | |||||
ASGN Inc(a) | 23,940 | 1,305 | TeladocHealth Inc(a) | 21,200 | 1,051 | |||||
Brink's Co/The | 33,350 | 2,156 | $ | 6,698 | ||||||
ICF International Inc | 23,300 | 1,509 | Home Builders- 0.74% | |||||||
K12Inc(a) | 55,501 | 1,376 | William Lyon Homes(a) | 116,760 | 1,248 | |||||
KornFerry | 43,270 | 1,711 | Home Furnishings - 0.10% | |||||||
MedifastInc | 10,460 | 1,308 | Sonos Inc(a) | 16,500 | 162 | |||||
SP Plus Corp(a) | 15,300 | 452 | Insurance - 3.96% | |||||||
$ | 13,095 | First American Financial Corp | 2,370 | 106 | ||||||
Computers - 3.84% | Hanover Insurance Group Inc/The | 18,900 | 2,207 | |||||||
CACI International Inc(a) | 15,500 | 2,232 | Kemper Corp | 17,810 | 1,182 | |||||
ExlServiceHoldingsInc(a) | 24,400 | 1,284 | MGIC Investment Corp(a) | 148,500 | 1,553 | |||||
Perspecta Inc | 108,100 | 1,862 | National General Holdings Corp | 66,600 | 1,613 | |||||
PlayAGS Inc(a) | 35,400 | 814 | $ | 6,661 | ||||||
Tenable HoldingsInc(a) | 11,700 | 260 | Internet - 0.48% | |||||||
$ | 6,452 | Anaplan Inc(a) | 11,214 | 298 | ||||||
Consumer Products - 0.82% | Eventbrite Inc(a) | 18,100 | 503 | |||||||
Central Garden & Pet Co - A Shares(a) | 44,220 | 1,382 | $ | 801 | ||||||
Diversified Financial Services- 3.16% | Iron & Steel - 0.74% | |||||||||
BGC Partners Inc | 111,100 | 574 | Reliance Steel & Aluminum Co | 8,010 | 570 | |||||
Hamilton Lane Inc | 23,546 | 871 | Steel Dynamics Inc | 22,250 | 668 | |||||
LPL Financial HoldingsInc | 17,700 | 1,081 | $ | 1,238 | ||||||
Moelis & Co | 45,200 | 1,554 | Leisure Products & Services - 1.62% | |||||||
PiperJaffrayCos | 18,750 | 1,235 | Planet Fitness Inc(a) | 50,900 | 2,729 | |||||
$ | 5,315 | Lodging - 1.16% | ||||||||
Extended Stay AmericaInc | 125,300 | 1,942 |
See accompanying notes.
89
Schedule of Investments
SmallCap Account
December 31, 2018
COMMON STOCKS (continued) | Shares Held Value (000’s) | COMMON STOCKS (continued) | Shares Held Value (000’s) | |||||||||
Machinery - Diversified- 1.25% | Software (continued) | |||||||||||
Columbus McKinnon Corp/NY | 26,478 | $ | 798 | SolarWindsCorp(a) | 105,788 | $ | 1,463 | |||||
Gates Industrial Corp PLC(a) | 98,210 | 1,300 | $ | 7,918 | ||||||||
$ | 2,098 | Telecommunications - 1.65% | ||||||||||
Metal Fabrication & Hardware - 1.26% | NETGEAR Inc(a) | 27,230 | 1,417 | |||||||||
Rexnord Corp(a) | 91,980 | 2,111 | Plantronics Inc | 36,200 | 1,198 | |||||||
Mining - 0.31% | Switch Inc | 22,410 | 157 | |||||||||
Alcoa Corp(a) | 19,840 | 527 | $ | 2,772 | ||||||||
Miscellaneous Manufacturers - 1.20% | TOTAL COMMON STOCKS | $ | 165,274 | |||||||||
HillenbrandInc | 33,050 | 1,254 | INVESTMENT COMPANIES - 0.86% | Shares Held Value (000's) | ||||||||
Trinseo SA | 16,830 | 770 | Money Market Funds- 0.86% | |||||||||
$ | 2,024 | Principal Government Money Market Fund | 1,443,051 | 1,443 | ||||||||
Oil & Gas - 2.65% | 2.11%(d),(e) | |||||||||||
Carrizo Oil & GasInc(a) | 57,300 | 647 | TOTAL INVESTMENT COMPANIES | $ | 1,443 | |||||||
DelekUS HoldingsInc | 54,300 | 1,765 | Total Investments | $ | 166,717 | |||||||
Mammoth Energy Services Inc | 49,000 | 881 | Other Assets and Liabilities - 0.83% | 1,400 | ||||||||
Ring Energy Inc(a) | 125,300 | 637 | TOTAL NET ASSETS - 100.00% | $ | 168,117 | |||||||
Whiting Petroleum Corp(a) | 23,100 | 524 | ||||||||||
$ | 4,454 | (a) | Non-income producing security | |||||||||
Oil & Gas Services - 0.48% | (b) | The value of these investments was determined using significant unobservable | ||||||||||
Pioneer Energy Services Corp(a) | 153,000 | 188 | inputs. | |||||||||
Select Energy Services Inc(a) | 99,200 | 627 | (c) | Fair value of these investments is determined in good faith by the Manager | ||||||||
$ | 815 | under procedures established and periodically reviewed by the Board of | ||||||||||
Packaging & Containers - 0.64% | Directors. Certain inputs used in the valuation may be unobservable; however, | |||||||||||
Graphic Packaging Holding Co | 100,800 | 1,073 | each security is evaluated individually for purposes of ASC 820 which results | |||||||||
Pharmaceuticals - 4.22% | in not all securities being identified as Level 3 of the fair value hierarchy. At | |||||||||||
Array BioPharma Inc(a) | 42,670 | 608 | the end of the period, the fair value of these securities totaled $0 or 0.00% of | |||||||||
Bellicum Pharmaceuticals Inc(a) | 56,800 | 166 | net assets. | |||||||||
Clovis OncologyInc(a) | 11,080 | 199 | (d) | Affiliated Security. Security is either an affiliate (and registered under the | ||||||||
DexCom Inc(a) | 8,930 | 1,070 | Investment Company Act of 1940) or an affiliate as defined by the Investment | |||||||||
Horizon Pharma Plc(a) | 64,930 | 1,269 | Company Act of 1940 (controls 5.0% or more of the outstanding voting | |||||||||
Neurocrine Biosciences Inc(a) | 3,100 | 221 | shares of the security). Please see affiliated sub-schedule for transactional | |||||||||
PRA Health Sciences Inc(a) | 17,200 | 1,582 | information. | |||||||||
Prestige Consumer Healthcare Inc(a) | 50,300 | 1,553 | (e) | Current yield shown is as of period end. | ||||||||
Revance Therapeutics Inc(a) | 21,400 | 431 | ||||||||||
$ | 7,099 | Portfolio Summary (unaudited) | ||||||||||
Real Estate - 0.25% | Sector | Percent | ||||||||||
Newmark Group Inc | 52,300 | 419 | Financial | 24.70 | % | |||||||
REITs - 6.62% | Consumer, Non-cyclical | 23.35 | % | |||||||||
Agree Realty Corp | 39,200 | 2,317 | Consumer, Cyclical | 14.58 | % | |||||||
Brandywine Realty Trust | 156,900 | 2,019 | Industrial | 12.97 | % | |||||||
First Industrial Realty TrustInc | 86,680 | 2,502 | Technology | 10.27 | % | |||||||
Pebblebrook Hotel Trust | 80,820 | 2,288 | Utilities | 4.66 | % | |||||||
Tier REIT Inc | 51,900 | 1,071 | Energy | 3.13 | % | |||||||
Two Harbors Investment Corp | 72,560 | 932 | Basic Materials | 2.52 | % | |||||||
$ | 11,129 | Communications | 2.13 | % | ||||||||
Retail - 4.93% | Investment Companies | 0.86 | % | |||||||||
BJ's Wholesale Club HoldingsInc(a) | 87,800 | 1,946 | Other Assets and Liabilities | 0.83 | % | |||||||
Caleres Inc | 80,230 | 2,233 | TOTAL NET ASSETS | 100.00 | % | |||||||
Carvana Co(a) | 57,200 | 1,871 | ||||||||||
GMS Inc(a) | 86,700 | 1,288 | ||||||||||
Ruth's Hospitality GroupInc | 41,940 | 953 | ||||||||||
$ | 8,291 | |||||||||||
Savings & Loans - 0.25% | ||||||||||||
Berkshire Hills Bancorp Inc | 15,600 | 421 | ||||||||||
Semiconductors - 1.72% | ||||||||||||
Aquantia Corp(a) | 34,230 | 300 | ||||||||||
Entegris Inc | 92,600 | 2,583 | ||||||||||
$ | 2,883 | |||||||||||
Software - 4.71% | ||||||||||||
Alteryx Inc(a) | 13,190 | 784 | ||||||||||
Apptio Inc(a) | 19,020 | 722 | ||||||||||
Aspen Technology Inc(a) | 23,300 | 1,915 | ||||||||||
Ceridian HCM HoldingInc(a) | 13,019 | 449 | ||||||||||
Manhattan Associates Inc(a) | 21,940 | 930 | ||||||||||
Pluralsight Inc(a) | 15,084 | 355 | ||||||||||
SailPointTechnologies HoldingInc(a) | 36,600 | 860 | ||||||||||
Smartsheet Inc(a) | 17,709 | 440 |
See accompanying notes.
90
Schedule of Investments | |||||||||||
SmallCap Account | |||||||||||
December 31, 2018 | |||||||||||
Affiliated Securities | December 31, 2017 | Purchases | Sales | December 31, 2018 | |||||||
Value | Cost | Proceeds | Value | ||||||||
Principal Government Money Market Fund 2.11% | $ | 2,243 | $ | 52,880 | $ | 53,680 | $ | 1,443 | |||
$ | 2,243 | $ | 52,880 | $ | 53,680 | $ | 1,443 | ||||
Realized Gain/Loss | Realized Gain from | Change in Unrealized | |||||||||
Income | on Investments | Capital Gain Distributions | Gain/Loss | ||||||||
Principal Government Money Market Fund 2.11% | $ | 42 | $ | — | $ | — | $ | — | |||
$ | 42 | $ | — | $ | — | $ | — | ||||
Amounts in thousands |
See accompanying notes.
91
Glossary to the Schedule of Investments
December 31, 2018
Currency Abbreviations | |
USD/$ | United States Dollar |
See accompanying notes.
92
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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 | Net Realized | ||||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | ||||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | ||||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||||
DIVERSIFIED INTERNATIONAL ACCOUNT | |||||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||||
2018 | $ | 17.01 | $ | 0.31 | ($3.25 | ) | ($2.94 | ) | ($0.35 | ) | $– | ($0.35) | $ | 13.72 | |||||||||||||||
2017 | 13.42 | 0.21 | 3.67 | 3.88 | (0.29 | ) | – | (0.29 | ) | 17.01 | |||||||||||||||||||
2016 | 13.68 | 0.24 | (0.18 | ) | 0.06 | (0.32 | ) | – | (0.32 | ) | 13.42 | ||||||||||||||||||
2015 | 14.08 | 0.26 | (0.29 | ) | (0.03 | ) | (0.37 | ) | – | (0.37 | ) | 13.68 | |||||||||||||||||
2014 | 14.87 | 0.24 | (0.70 | ) | (0.46 | ) | (0.33 | ) | – | (0.33 | ) | 14.08 | |||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||||
2018 | 17.14 | 0.27 | (3.28 | ) | (3.01 | ) | (0.32 | ) | – | (0.32 | ) | 13.81 | |||||||||||||||||
2017 | 13.52 | 0.17 | 3.71 | 3.88 | (0.26 | ) | – | (0.26 | ) | 17.14 | |||||||||||||||||||
2016 | 13.78 | 0.20 | (0.18 | ) | 0.02 | (0.28 | ) | – | (0.28 | ) | 13.52 | ||||||||||||||||||
2015 | 14.19 | 0.21 | (0.29 | ) | (0.08 | ) | (0.33 | ) | – | (0.33 | ) | 13.78 | |||||||||||||||||
2014 | 14.97 | 0.21 | (0.70 | ) | (0.49 | ) | (0.29 | ) | – | (0.29 | ) | 14.19 | |||||||||||||||||
EQUITY INCOME ACCOUNT | |||||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||||
2018 | 26.08 | 0.64 | (1.72 | ) | (1.08 | ) | (0.52 | ) | (1.62 | ) | (2.14 | ) | 22.86 | ||||||||||||||||
2017 | 23.20 | 0.56 | 4.14 | 4.70 | (0.58 | ) | (1.24 | ) | (1.82 | ) | 26.08 | ||||||||||||||||||
2016 | 21.67 | 0.57 | 2.77 | 3.34 | (0.64 | ) | (1.17 | ) | (1.81 | ) | 23.20 | ||||||||||||||||||
2015 | 23.12 | 0.58 | (1.46 | ) | (0.88 | ) | (0.57 | ) | – | (0.57 | ) | 21.67 | |||||||||||||||||
2014 | 21.00 | 0.57 | 2.09 | 2.66 | (0.54 | ) | – | (0.54 | ) | 23.12 | |||||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||||
2018 | 25.87 | 0.57 | (1.70 | ) | (1.13 | ) | (0.46 | ) | (1.62 | ) | (2.08 | ) | 22.66 | ||||||||||||||||
2017 | 23.03 | 0.49 | 4.11 | 4.60 | (0.52 | ) | (1.24 | ) | (1.76 | ) | 25.87 | ||||||||||||||||||
2016 | 21.52 | 0.51 | 2.75 | 3.26 | (0.58 | ) | (1.17 | ) | (1.75 | ) | 23.03 | ||||||||||||||||||
2015 | 22.96 | 0.52 | (1.45 | ) | (0.93 | ) | (0.51 | ) | – | (0.51 | ) | 21.52 | |||||||||||||||||
2014 | 20.87 | 0.51 | 2.07 | 2.58 | (0.49 | ) | – | (0.49 | ) | 22.96 |
See accompanying notes.
94
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
(17.54 | )% | $ | 233,612 | 0.91 | % | 1.91 | % | 59.3 | % | ||||||
29.06 | 292,975 | 0.91 | 1.37 | 42.8 | |||||||||||
0.36 | 243,997 | 0.91 | 1.77 | 56.8 | |||||||||||
(0.35 | ) | 273,300 | 0.88 | 1.80 | 48.2 | ||||||||||
(3.21 | ) | 429,194 | 0.86 | 1.64 | 62.1 | ||||||||||
(17.78 | ) | 2,020 | 1.16 | 1.65 | 59.3 | ||||||||||
28.79 | 1,868 | 1.16 | 1.10 | 42.8 | |||||||||||
0.11 | 1,362 | 1.16 | 1.50 | 56.8 | |||||||||||
(0.65 | ) | 1,360 | 1.13 | 1.47 | 48.2 | ||||||||||
(3.41 | ) | 1,266 | 1.11 | 1.38 | 62.1 | ||||||||||
(5.01 | ) | 636,177 | 0.49 | 2.47 | 13.2 | ||||||||||
21.08 | 572,629 | 0.50 | 2.26 | 15.9 | |||||||||||
15.72 | 525,829 | 0.50 | 2.54 | 17.1 | |||||||||||
(3.93 | ) | 513,126 | 0.49 | 2.54 | 10.7 | ||||||||||
12.80 | 599,407 | 0.48 | 2.57 | 11.6 | |||||||||||
(5.24 | ) | 25,207 | 0.74 | 2.23 | 13.2 | ||||||||||
20.77 | 27,469 | 0.75 | 2.00 | 15.9 | |||||||||||
15.43 | 24,197 | 0.75 | 2.29 | 17.1 | |||||||||||
(4.15 | ) | 23,215 | 0.74 | 2.29 | 10.7 | ||||||||||
12.46 | 25,491 | 0.73 | 2.32 | 11.6 |
(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.
See accompanying notes.
95
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
GOVERNMENT & HIGH QUALITY BOND ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 9.76 | $ | 0.23 | ($0.15 | ) | $ | 0.08 | ($0.37 | ) | $– | ($0.37) | $ | 9.47 | ||||||||||||||
2017 | 9.98 | 0.31 | (0.12 | ) | 0.19 | (0.41 | ) | – | (0.41 | ) | 9.76 | |||||||||||||||||
2016 | 10.16 | 0.33 | (0.14 | ) | 0.19 | (0.37 | ) | – | (0.37 | ) | 9.98 | |||||||||||||||||
2015 | 10.44 | 0.27 | (0.19 | ) | 0.08 | (0.35 | ) | (0.01 | ) | (0.36 | ) | 10.16 | ||||||||||||||||
2014 | 10.33 | 0.27 | 0.25 | 0.52 | (0.41 | ) | – | (0.41 | ) | 10.44 | ||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 9.75 | 0.21 | (0.15 | ) | 0.06 | (0.35 | ) | – | (0.35 | ) | 9.46 | |||||||||||||||||
2017 | 9.98 | 0.28 | (0.13 | ) | 0.15 | (0.38 | ) | – | (0.38 | ) | 9.75 | |||||||||||||||||
2016 | 10.17 | 0.31 | (0.15 | ) | 0.16 | (0.35 | ) | – | (0.35 | ) | 9.98 | |||||||||||||||||
2015 | 10.45 | 0.25 | (0.18 | ) | 0.07 | (0.34 | ) | (0.01 | ) | (0.35 | ) | 10.17 | ||||||||||||||||
2014 | 10.34 | 0.24 | 0.25 | 0.49 | (0.38 | ) | – | (0.38 | ) | 10.45 | ||||||||||||||||||
INCOME ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 10.39 | 0.36 | (0.28 | ) | 0.08 | (0.46 | ) | – | (0.46 | ) | 10.01 | |||||||||||||||||
2017 | 10.34 | 0.36 | 0.16 | 0.52 | (0.47 | ) | – | (0.47 | ) | 10.39 | ||||||||||||||||||
2016 | 10.24 | 0.38 | 0.21 | 0.59 | (0.49 | ) | – | (0.49 | ) | 10.34 | ||||||||||||||||||
2015 | 10.78 | 0.39 | (0.46 | ) | (0.07 | ) | (0.47 | ) | – | (0.47 | ) | 10.24 | ||||||||||||||||
2014 | 10.68 | 0.43 | 0.16 | 0.59 | (0.49 | ) | – | (0.49 | ) | 10.78 | ||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 10.35 | 0.33 | (0.28 | ) | 0.05 | (0.44 | ) | – | (0.44 | ) | 9.96 | |||||||||||||||||
2017 | 10.30 | 0.34 | 0.16 | 0.50 | (0.45 | ) | – | (0.45 | ) | 10.35 | ||||||||||||||||||
2016 | 10.20 | 0.36 | 0.21 | 0.57 | (0.47 | ) | – | (0.47 | ) | 10.30 | ||||||||||||||||||
2015 | 10.73 | 0.36 | (0.45 | ) | (0.09 | ) | (0.44 | ) | – | (0.44 | ) | 10.20 | ||||||||||||||||
2014 | 10.63 | 0.40 | 0.16 | 0.56 | (0.46 | ) | – | (0.46 | ) | 10.73 |
See accompanying notes.
96
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
0.91 | % | $ | 219,612 | 0.51 | % | 2.43 | % | 17.4 | % | ||||||
1.88 | 241,839 | 0.51 | 3.09 | 24.3 | |||||||||||
1.80 | 247,620 | 0.51 | 3.25 | 25.8 | |||||||||||
0.79 | 286,659 | 0.51 | 2.61 | 21.9 | |||||||||||
5.08 | 314,509 | 0.51 | 2.56 | 19.1 | |||||||||||
0.69 | 2,627 | 0.76 | 2.17 | 17.4 | |||||||||||
1.50 | 2,302 | 0.76 | 2.83 | 24.3 | |||||||||||
1.54 | 2,307 | 0.76 | 3.02 | 25.8 | |||||||||||
0.67 | 1,837 | 0.76 | 2.37 | 21.9 | |||||||||||
4.75 | 916 | 0.76 | 2.31 | 19.1 | |||||||||||
0.78 | 178,598 | 0.51 | 3.53 | 9.4 | |||||||||||
5.12 | 220,194 | 0.51 | 3.47 | 8.7 | |||||||||||
5.72 | 228,874 | 0.51 | 3.66 | 8.1 | |||||||||||
(0.71 | ) | 254,751 | 0.51 | 3.62 | 12.6 | ||||||||||
5.55 | 275,597 | 0.51 | 3.95 | 16.6 | |||||||||||
0.47 | 3,173 | 0.76 | 3.27 | 9.4 | |||||||||||
4.87 | 2,869 | 0.76 | 3.22 | 8.7 | |||||||||||
5.52 | 2,695 | 0.76 | 3.40 | 8.1 | |||||||||||
(0.92 | ) | 2,445 | 0.76 | 3.38 | 12.6 | ||||||||||
5.26 | 3,036 | 0.76 | 3.71 | 16.6 |
(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.
See accompanying notes.
97
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
LARGECAP GROWTH ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 32.79 | $ | 0.02 | ($1.91 | ) | ($1.89 | ) | ($0.08 | ) | ($2.57 | ) | ($2.65) | $ | 28.25 | |||||||||||||
2017 | 24.40 | 0.07 | 8.43 | 8.50 | (0.11 | ) | – | (0.11 | ) | 32.79 | ||||||||||||||||||
2016 | 25.79 | 0.11 | (1.43 | ) | (1.32 | ) | (0.07 | ) | – | (0.07 | ) | 24.40 | ||||||||||||||||
2015 | 24.60 | 0.06 | 1.17 | 1.23 | (0.04 | ) | – | (0.04 | ) | 25.79 | ||||||||||||||||||
2014 | 22.26 | 0.03 | 2.44 | 2.47 | (0.13 | ) | – | (0.13 | ) | 24.60 | ||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 32.63 | (0.07 | ) | (1.90 | ) | (1.97 | ) | (0.03 | ) | (2.57 | ) | (2.60 | ) | 28.06 | ||||||||||||||
2017 | 24.29 | (0.02 | ) | 8.40 | 8.38 | (0.04 | ) | – | (0.04 | ) | 32.63 | |||||||||||||||||
2016 | 25.69 | 0.04 | (1.42 | ) | (1.38 | ) | (0.02 | ) | – | (0.02 | ) | 24.29 | ||||||||||||||||
2015 | 24.53 | – | 1.16 | 1.16 | – | – | – | 25.69 | ||||||||||||||||||||
2014 | 22.20 | (0.03 | ) | 2.44 | 2.41 | (0.08 | ) | – | (0.08 | ) | 24.53 | |||||||||||||||||
MIDCAP ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 59.42 | 0.17 | (2.93 | ) | (2.76 | ) | (0.17 | ) | (7.96 | ) | (8.13 | ) | 48.53 | |||||||||||||||
2017 | 50.96 | 0.19 | 12.48 | 12.67 | (0.32 | ) | (3.89 | ) | (4.21 | ) | 59.42 | |||||||||||||||||
2016 | 55.24 | 0.33 | 5.30 | 5.63 | (0.24 | ) | (9.67 | ) | (9.91 | ) | 50.96 | |||||||||||||||||
2015 | 60.79 | 0.22 | 1.19 | 1.41 | (0.32 | ) | (6.64 | ) | (6.96 | ) | 55.24 | |||||||||||||||||
2014 | 59.37 | 0.36 | 6.96 | 7.32 | (0.32 | ) | (5.58 | ) | (5.90 | ) | 60.79 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 59.05 | 0.02 | (2.89 | ) | (2.87 | ) | (0.03 | ) | (7.96 | ) | (7.99 | ) | 48.19 | |||||||||||||||
2017 | 50.69 | 0.05 | 12.39 | 12.44 | (0.19 | ) | (3.89 | ) | (4.08 | ) | 59.05 | |||||||||||||||||
2016 | 54.97 | 0.20 | 5.27 | 5.47 | (0.08 | ) | (9.67 | ) | (9.75 | ) | 50.69 | |||||||||||||||||
2015 | 60.54 | 0.07 | 1.17 | 1.24 | (0.17 | ) | (6.64 | ) | (6.81 | ) | 54.97 | |||||||||||||||||
2014 | 59.16 | 0.21 | 6.93 | 7.14 | (0.18 | ) | (5.58 | ) | (5.76 | ) | 60.54 |
See accompanying notes.
98
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
(7.30 | )% | $ | 98,106 | 0.69 | % | 0.05 | % | 77.8 | % | ||||||
34.89 | 119,450 | 0.69 | 0.23 | 72.3 | |||||||||||
(5.13 | ) | 96,198 | 0.69 | 0.43 | 78.2 | ||||||||||
4.98 | 118,385 | 0.69 | 0.23 | 47.1 | |||||||||||
11.12 | 123,091 | 0.69 | 0.13 | 67.2 | |||||||||||
(7.54 | ) | 2,184 | 0.94 | (0.20 | ) | 77.8 | |||||||||
34.54 | 1,452 | 0.94 | (0.06 | ) | 72.3 | ||||||||||
(5.38 | ) | 923 | 0.94 | 0.17 | 78.2 | ||||||||||
4.73 | 1,090 | 0.94 | (0.01 | ) | 47.1 | ||||||||||
10.85 | 661 | 0.94 | (0.11 | ) | 67.2 | ||||||||||
(6.55 | ) | 474,365 | 0.54 | 0.29 | 24.6 | ||||||||||
25.51 | 575,104 | 0.54 | 0.34 | 13.4 | |||||||||||
10.37 | 576,634 | 0.54 | 0.62 | 13.6 | |||||||||||
1.64 | 617,437 | 0.53 | 0.37 | 26.3 | |||||||||||
12.99 | 676,836 | 0.53 | 0.60 | 21.6 | |||||||||||
(6.79) (c) | 15,710 | 0.79 | 0.04 | 24.6 | |||||||||||
25.19 | (c) | 17,792 | 0.79 | 0.09 | 13.4 | ||||||||||
10.11 | 14,985 | 0.79 | 0.38 | 13.6 | |||||||||||
1.37 | 15,243 | 0.78 | 0.12 | 26.3 | |||||||||||
12.70 | 15,960 | 0.78 | 0.35 | 21.6 |
(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) 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.
99
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
PRINCIPAL CAPITAL APPRECIATION ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 28.54 | $ | 0.44 | ($1.19 | ) | ($0.75 | ) | ($0.34 | ) | ($1.59 | ) | ($1.93) | $ | 25.86 | |||||||||||||
2017 | 23.94 | 0.28 | 4.66 | 4.94 | (0.34 | ) | – | (0.34 | ) | 28.54 | ||||||||||||||||||
2016 | 22.35 | 0.30 | 1.73 | 2.03 | (0.26 | ) | (0.18 | ) | (0.44 | ) | 23.94 | |||||||||||||||||
2015 | 22.31 | 0.30 | 0.20 | 0.50 | (0.06 | ) | (0.40 | ) | (0.46 | ) | 22.35 | |||||||||||||||||
2014 | 24.45 | 0.24 | 2.52 | 2.76 | (0.81 | ) | (4.09 | ) | (4.90 | ) | 22.31 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 28.25 | 0.37 | (1.17 | ) | (0.80 | ) | (0.28 | ) | (1.59 | ) | (1.87 | ) | 25.58 | |||||||||||||||
2017 | 23.71 | 0.22 | 4.60 | 4.82 | (0.28 | ) | – | (0.28 | ) | 28.25 | ||||||||||||||||||
2016 | 22.14 | 0.24 | 1.72 | 1.96 | (0.21 | ) | (0.18 | ) | (0.39 | ) | 23.71 | |||||||||||||||||
2015 | 22.11 | 0.23 | 0.21 | 0.44 | (0.01 | ) | (0.40 | ) | (0.41 | ) | 22.14 | |||||||||||||||||
2014 | 24.27 | 0.18 | 2.50 | 2.68 | (0.75 | ) | (4.09 | ) | (4.84 | ) | 22.11 | |||||||||||||||||
REAL ESTATE SECURITIES ACCOUNT | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 20.62 | 0.37 | (1.09 | ) | (0.72 | ) | (0.37 | ) | (1.67 | ) | (2.04 | ) | 17.86 | |||||||||||||||
2017 | 21.30 | 0.25 | 1.62 | 1.87 | (0.39 | ) | (2.16 | ) | (2.55 | ) | 20.62 | |||||||||||||||||
2016 | 22.20 | 0.31 | 1.09 | 1.40 | (0.32 | ) | (1.98 | ) | (2.30 | ) | 21.30 | |||||||||||||||||
2015 | 22.33 | 0.34 | 0.57 | 0.91 | (0.34 | ) | (0.70 | ) | (1.04 | ) | 22.20 | |||||||||||||||||
2014 | 17.08 | 0.29 | 5.28 | 5.57 | (0.32 | ) | – | (0.32 | ) | 22.33 | ||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 20.70 | 0.34 | (1.12 | ) | (0.78 | ) | (0.33 | ) | (1.67 | ) | (2.00 | ) | 17.92 | |||||||||||||||
2017 | 21.36 | 0.19 | 1.64 | 1.83 | (0.33 | ) | (2.16 | ) | (2.49 | ) | 20.70 | |||||||||||||||||
2016 | 22.29 | 0.28 | 1.06 | 1.34 | (0.29 | ) | (1.98 | ) | (2.27 | ) | 21.36 | |||||||||||||||||
2015 | 22.45 | 0.34 | 0.53 | 0.87 | (0.33 | ) | (0.70 | ) | (1.03 | ) | 22.29 | |||||||||||||||||
2014 | 17.18 | 0.27 | 5.27 | 5.54 | (0.27 | ) | – | (0.27 | ) | 22.45 |
See accompanying notes.
100
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
(3.41 | )% | $ | 128,547 | 0.63 | % | 1.52 | % | 44.9 | % | ||||||
20.75 | 154,472 | 0.63 | 1.07 | 28.5 | |||||||||||
9.11 | 147,193 | 0.63 | 1.31 | 33.7 | |||||||||||
2.18 | 154,732 | 0.64 | 1.33 | 22.1 | (c) | ||||||||||
12.45 | 33,190 | 0.66 | 1.02 | 8.6 | |||||||||||
(3.64) (d) | 8,757 | 0.88 | 1.28 | 44.9 | |||||||||||
20.46 | (d) | 8,526 | 0.88 | 0.83 | 28.5 | ||||||||||
8.85 | 7,420 | 0.88 | 1.06 | 33.7 | |||||||||||
1.94 | 7,517 | 0.89 | 1.05 | 22.1 | (c) | ||||||||||
12.19 | 6,891 | 0.91 | 0.77 | 8.6 | |||||||||||
(4.21 | ) | 133,429 | 0.89 | 1.89 | 17.3 | ||||||||||
9.19 | 154,615 | 0.89 | 1.19 | 19.6 | |||||||||||
5.85 | 158,760 | 0.89 | 1.38 | 31.3 | |||||||||||
4.21 | 159,292 | 0.89 | 1.54 | 22.8 | |||||||||||
32.82 | 166,701 | 0.89 | 1.48 | 15.7 | |||||||||||
(4.47 | ) | 3,493 | 1.14 | 1.73 | 17.3 | ||||||||||
8.94 | 2,830 | 1.14 | 0.89 | 19.6 | |||||||||||
5.53 | 4,215 | 1.14 | 1.26 | 31.3 | |||||||||||
4.00 | 1,994 | 1.14 | 1.56 | 22.8 | |||||||||||
32.44 | 492 | 1.14 | 1.37 | 15.7 |
(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) Portfolio turnover rate excludes approximately $1,237,000 of purchases from portfolio realignment from the acquisition of LargeCap Blend Account II.
(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.
See accompanying notes.
101
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 | Net Realized | ||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | ||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | ||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||
SAM BALANCED PORTFOLIO | |||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||
2018 | $ | 15.89 | $ | 0.36 | ($1.07 | ) | ($0.71 | ) | ($0.50 | ) | ($0.78 | ) | ($1.28) | $ | 13.90 | ||||||||||||
2017 | 14.44 | 0.45 | 1.71 | 2.16 | (0.34 | ) | (0.37 | ) | (0.71 | ) | 15.89 | ||||||||||||||||
2016 | 14.69 | 0.30 | 0.70 | 1.00 | (0.32 | ) | (0.93 | ) | (1.25 | ) | 14.44 | ||||||||||||||||
2015 | 16.51 | 0.30 | (0.38 | ) | (0.08 | ) | (0.49 | ) | (1.25 | ) | (1.74 | ) | 14.69 | ||||||||||||||
2014 | 18.53 | 0.47 | 0.73 | 1.20 | (0.52 | ) | (2.70 | ) | (3.22 | ) | 16.51 | ||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||
2018 | 15.72 | 0.32 | (1.06 | ) | (0.74 | ) | (0.46 | ) | (0.78 | ) | (1.24 | ) | 13.74 | ||||||||||||||
2017 | 14.30 | 0.42 | 1.67 | 2.09 | (0.30 | ) | (0.37 | ) | (0.67 | ) | 15.72 | ||||||||||||||||
2016 | 14.55 | 0.27 | 0.69 | 0.96 | (0.28 | ) | (0.93 | ) | (1.21 | ) | 14.30 | ||||||||||||||||
2015 | 16.37 | 0.26 | (0.38 | ) | (0.12 | ) | (0.45 | ) | (1.25 | ) | (1.70 | ) | 14.55 | ||||||||||||||
2014 | 18.39 | 0.43 | 0.73 | 1.16 | (0.48 | ) | (2.70 | ) | (3.18 | ) | 16.37 | ||||||||||||||||
SAM CONSERVATIVE BALANCED PORTFOLIO | |||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||
2018 | 12.33 | 0.34 | (0.73 | ) | (0.39 | ) | (0.42 | ) | (0.47 | ) | (0.89 | ) | 11.05 | ||||||||||||||
2017 | 11.50 | 0.38 | 0.92 | 1.30 | (0.34 | ) | (0.13 | ) | (0.47 | ) | 12.33 | ||||||||||||||||
2016 | 11.52 | 0.31 | 0.42 | 0.73 | (0.30 | ) | (0.45 | ) | (0.75 | ) | 11.50 | ||||||||||||||||
2015 | 12.60 | 0.29 | (0.36 | ) | (0.07 | ) | (0.41 | ) | (0.60 | ) | (1.01 | ) | 11.52 | ||||||||||||||
2014 | 13.39 | 0.41 | 0.40 | 0.81 | (0.42 | ) | (1.18 | ) | (1.60 | ) | 12.60 | ||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||
2018 | 12.19 | 0.31 | (0.73 | ) | (0.42 | ) | (0.39 | ) | (0.47 | ) | (0.86 | ) | 10.91 | ||||||||||||||
2017 | 11.38 | 0.36 | 0.89 | 1.25 | (0.31 | ) | (0.13 | ) | (0.44 | ) | 12.19 | ||||||||||||||||
2016 | 11.41 | 0.27 | 0.42 | 0.69 | (0.27 | ) | (0.45 | ) | (0.72 | ) | 11.38 | ||||||||||||||||
2015 | 12.48 | 0.27 | (0.36 | ) | (0.09 | ) | (0.38 | ) | (0.60 | ) | (0.98 | ) | 11.41 | ||||||||||||||
2014 | 13.28 | 0.38 | 0.38 | 0.76 | (0.38 | ) | (1.18 | ) | (1.56 | ) | 12.48 |
See accompanying notes.
102
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | ||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | ||||||||||
(5.04 | )% | $ | 561,162 | 0.23%(c),(d) | 2.29 | % | 18.2 | % | ||||||
15.21 | 678,409 | 0.23 | (d) | 2.92 | 27.4 | |||||||||
6.82 | 672,562 | 0.23 | (d) | 2.07 | 16.5 | |||||||||
(0.81 | ) | 732,937 | 0.23 | (d) | 1.88 | 26.1 | ||||||||
6.82 | 826,908 | 0.23 | (d) | 2.64 | 16.4 | |||||||||
(5.25 | ) | 104,051 | 0.48 | (c),(d) | 2.10 | 18.2 | ||||||||
14.88 | 110,129 | 0.48 | (d) | 2.77 | 27.4 | |||||||||
6.62 | 97,047 | 0.48 | (d) | 1.88 | 16.5 | |||||||||
(1.08 | ) | 96,511 | 0.48 | (d) | 1.66 | 26.1 | ||||||||
6.59 | 99,852 | 0.48 | (d) | 2.44 | 16.4 | |||||||||
(3.49 | ) | 154,297 | 0.22 | (c),(d) | 2.79 | 19.5 | ||||||||
11.46 | 178,523 | 0.23 | (d) | 3.16 | 26.3 | |||||||||
6.37 | 183,830 | 0.23 | (d) | 2.64 | 19.8 | |||||||||
(0.78 | ) | 193,585 | 0.23 | (d) | 2.38 | 28.2 | ||||||||
6.22 | 206,621 | 0.23 | (d) | 3.10 | 21.2 | |||||||||
(3.75 | ) | 20,449 | 0.47 | (c),(d) | 2.59 | 19.5 | ||||||||
11.14 | 20,541 | 0.48 | (d) | 3.06 | 26.3 | |||||||||
6.08 | 17,477 | 0.48 | (d) | 2.39 | 19.8 | |||||||||
(0.93 | ) | 17,774 | 0.48 | (d) | 2.19 | 28.2 | ||||||||
5.92 | 16,731 | 0.48 | (d) | 2.87 | 21.2 |
(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)Does not include expenses of the investment companies in which the Portfolio invests.
See accompanying notes.
103
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 | Net Realized | |||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||
SAM CONSERVATIVE GROWTH PORTFOLIO | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | $ | 19.86 | $ | 0.35 | ($1.51 | ) | ($1.16 | ) | ($0.56 | ) | ($0.98 | ) | ($1.54) | $ | 17.16 | |||||||||||||
2017 | 17.22 | 0.54 | 2.82 | 3.36 | (0.30 | ) | (0.42 | ) | (0.72 | ) | 19.86 | |||||||||||||||||
2016 | 17.22 | 0.30 | 0.90 | 1.20 | (0.26 | ) | (0.94 | ) | (1.20 | ) | 17.22 | |||||||||||||||||
2015 | 19.02 | 0.26 | (0.41 | ) | (0.15 | ) | (0.43 | ) | (1.22 | ) | (1.65 | ) | 17.22 | |||||||||||||||
2014 | 20.60 | 0.48 | 0.97 | 1.45 | (0.39 | ) | (2.64 | ) | (3.03 | ) | 19.02 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 19.60 | 0.31 | (1.50 | ) | (1.19 | ) | (0.51 | ) | (0.98 | ) | (1.49 | ) | 16.92 | |||||||||||||||
2017 | 17.01 | 0.49 | 2.78 | 3.27 | (0.26 | ) | (0.42 | ) | (0.68 | ) | 19.60 | |||||||||||||||||
2016 | 17.02 | 0.25 | 0.89 | 1.14 | (0.21 | ) | (0.94 | ) | (1.15 | ) | 17.01 | |||||||||||||||||
2015 | 18.82 | 0.21 | (0.40 | ) | (0.19 | ) | (0.39 | ) | (1.22 | ) | (1.61 | ) | 17.02 | |||||||||||||||
2014 | 20.42 | 0.42 | 0.97 | 1.39 | (0.35 | ) | (2.64 | ) | (2.99 | ) | 18.82 | |||||||||||||||||
SAM FLEXIBLE INCOME PORTFOLIO | ||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||
2018 | 12.95 | 0.40 | (0.63 | ) | (0.23 | ) | (0.53 | ) | (0.33 | ) | (0.86 | ) | 11.86 | |||||||||||||||
2017 | 12.45 | 0.47 | 0.56 | 1.03 | (0.44 | ) | (0.09 | ) | (0.53 | ) | 12.95 | |||||||||||||||||
2016 | 12.27 | 0.42 | 0.44 | 0.86 | (0.43 | ) | (0.25 | ) | (0.68 | ) | 12.45 | |||||||||||||||||
2015 | 13.22 | 0.40 | (0.56 | ) | (0.16 | ) | (0.47 | ) | (0.32 | ) | (0.79 | ) | 12.27 | |||||||||||||||
2014 | 13.72 | 0.49 | 0.33 | 0.82 | (0.52 | ) | (0.80 | ) | (1.32 | ) | 13.22 | |||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||
2018 | 12.83 | 0.38 | (0.63 | ) | (0.25 | ) | (0.51 | ) | (0.33 | ) | (0.84 | ) | 11.74 | |||||||||||||||
2017 | 12.34 | 0.45 | 0.54 | 0.99 | (0.41 | ) | (0.09 | ) | (0.50 | ) | 12.83 | |||||||||||||||||
2016 | 12.17 | 0.38 | 0.44 | 0.82 | (0.40 | ) | (0.25 | ) | (0.65 | ) | 12.34 | |||||||||||||||||
2015 | 13.12 | 0.37 | (0.56 | ) | (0.19 | ) | (0.44 | ) | (0.32 | ) | (0.76 | ) | 12.17 | |||||||||||||||
2014 | 13.62 | 0.45 | 0.33 | 0.78 | (0.48 | ) | (0.80 | ) | (1.28 | ) | 13.12 |
See accompanying notes.
104
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | ||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | ||||||||||
(6.62 | )% | $ | 189,654 | 0.23%(c),(d) | 1.81 | % | 27.0 | % | ||||||
19.78 | 220,054 | 0.23 | (d) | 2.88 | 35.1 | |||||||||
7.00 | 194,284 | 0.23 | (d) | 1.73 | 25.5 | |||||||||
(1.09 | ) | 193,966 | 0.23 | (d) | 1.40 | 29.1 | ||||||||
7.43 | 198,465 | 0.23 | (d) | 2.40 | 19.4 | |||||||||
(6.82 | ) | 118,307 | 0.48 | (c),(d) | 1.60 | 27.0 | ||||||||
19.46 | 127,079 | 0.48 | (d) | 2.68 | 35.1 | |||||||||
6.76 | 108,247 | 0.48 | (d) | 1.49 | 25.5 | |||||||||
(1.34 | ) | 103,771 | 0.48 | (d) | 1.17 | 29.1 | ||||||||
7.14 | 102,757 | 0.48 | (d) | 2.11 | 19.4 | |||||||||
(1.97 | ) | 157,019 | 0.23 | (d) | 3.19 | 19.9 | ||||||||
8.41 | 194,742 | 0.23 | (d) | 3.69 | 29.3 | |||||||||
7.04 | 196,393 | 0.23 | (d) | 3.32 | 17.1 | |||||||||
(1.31 | ) | 200,828 | 0.23 | (d) | 3.05 | 25.2 | ||||||||
6.03 | 215,309 | 0.23 | (d) | 3.55 | 18.8 | |||||||||
(2.20 | ) | 25,656 | 0.48 | (d) | 3.07 | 19.9 | ||||||||
8.13 | 23,003 | 0.48 | (d) | 3.57 | 29.3 | |||||||||
6.73 | 20,085 | 0.48 | (d) | 3.06 | 17.1 | |||||||||
(1.55 | ) | 21,108 | 0.48 | (d) | 2.85 | 25.2 | ||||||||
5.80 | 19,836 | 0.48 | (d) | 3.27 | 18.8 |
(a) Calculated based on average shares outstanding during the period.
(b)Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c) Reflects Manager's contractual expense limit.
(d)Does not include expenses of the investment companies in which the Portfolio invests.
See accompanying notes.
105
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 | Net Realized | |||||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | |||||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | |||||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | |||||||||||||||||||||||
SAM STRATEGIC GROWTH PORTFOLIO | ||||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||||
2018 | $ | 21.72 | $ | 0.33 | ($2.01 | ) | ($1.68 | ) | ($0.52 | ) | ($1.16 | ) | ($1.68) | $ | 18.36 | |||||||||||||||
2017 | 18.54 | 0.51 | 3.54 | 4.05 | (0.30 | ) | (0.57 | ) | (0.87 | ) | 21.72 | |||||||||||||||||||
2016 | 18.70 | 0.30 | 0.85 | 1.15 | (0.28 | ) | (1.03 | ) | (1.31 | ) | 18.54 | |||||||||||||||||||
2015 | 21.00 | 0.29 | (0.56 | ) | (0.27 | ) | (0.47 | ) | (1.56 | ) | (2.03 | ) | 18.70 | |||||||||||||||||
2014 | 23.55 | 0.56 | 1.33 | 1.89 | (0.38 | ) | (4.06 | ) | (4.44 | ) | 21.00 | |||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||||
2018 | 21.46 | 0.28 | (2.00 | ) | (1.72 | ) | (0.47 | ) | (1.16 | ) | (1.63 | ) | 18.11 | |||||||||||||||||
2017 | 18.33 | 0.47 | 3.48 | 3.95 | (0.25 | ) | (0.57 | ) | (0.82 | ) | 21.46 | |||||||||||||||||||
2016 | 18.50 | 0.26 | 0.83 | 1.09 | (0.23 | ) | (1.03 | ) | (1.26 | ) | 18.33 | |||||||||||||||||||
2015 | 20.80 | 0.24 | (0.55 | ) | (0.31 | ) | (0.43 | ) | (1.56 | ) | (1.99 | ) | 18.50 | |||||||||||||||||
2014 | 23.38 | 0.49 | 1.32 | 1.81 | (0.33 | ) | (4.06 | ) | (4.39 | ) | 20.80 | |||||||||||||||||||
SHORT-TERM INCOME ACCOUNT | ||||||||||||||||||||||||||||||
Class 1 shares | ||||||||||||||||||||||||||||||
2018 | 2.55 | 0.06 | (0.03 | ) | 0.03 | (0.06 | ) | – | (0.06 | ) | 2.52 | |||||||||||||||||||
2017 | 2.54 | 0.05 | 0.01 | 0.06 | (0.05 | ) | – | (0.05 | ) | 2.55 | ||||||||||||||||||||
2016 | 2.54 | 0.05 | – | 0.05 | (0.05 | ) | – | (0.05 | ) | 2.54 | ||||||||||||||||||||
2015 | 2.59 | 0.04 | (0.02 | ) | 0.02 | (0.07 | ) | – | (0.07 | ) | 2.54 | |||||||||||||||||||
2014 | 2.59 | 0.05 | (0.01 | ) | 0.04 | (0.04 | ) | – | (0.04 | ) | 2.59 | |||||||||||||||||||
Class 2 shares | ||||||||||||||||||||||||||||||
2018 | 2.54 | 0.05 | (0.03 | ) | 0.02 | (0.05 | ) | – | (0.05 | ) | 2.51 | |||||||||||||||||||
2017 | 2.53 | 0.05 | 0.01 | 0.06 | (0.05 | ) | – | (0.05 | ) | 2.54 | ||||||||||||||||||||
2016 | 2.53 | 0.04 | 0.01 | 0.05 | (0.05 | ) | – | (0.05 | ) | 2.53 | ||||||||||||||||||||
2015 | 2.58 | 0.04 | (0.02 | ) | 0.02 | (0.07 | ) | – | (0.07 | ) | 2.53 | |||||||||||||||||||
2014 | 2.59 | 0.04 | (0.01 | ) | 0.03 | (0.04 | ) | – | (0.04 | ) | 2.58 |
See accompanying notes.
106
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | ||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | ||||||||||
(8.60 | )% | $ | 140,247 | 0.23%(c),(d) | 1.56 | % | 37.8 | % | ||||||
22.22 | 163,861 | 0.23 | (d) | 2.50 | 37.7 | |||||||||
6.15 | 145,083 | 0.23 | (d) | 1.61 | 23.4 | |||||||||
(1.62 | ) | 142,227 | 0.23 | (d) | 1.45 | 37.9 | ||||||||
8.68 | 138,863 | 0.23 | (d) | 2.50 | 20.4 | |||||||||
(8.87 | ) | 114,902 | 0.48 | (c),(d) | 1.34 | 37.8 | ||||||||
21.95 | 126,632 | 0.48 | (d) | 2.33 | 37.7 | |||||||||
5.90 | 103,870 | 0.48 | (d) | 1.41 | 23.4 | |||||||||
(1.87 | ) | 95,775 | 0.48 | (d) | 1.19 | 37.9 | ||||||||
8.35 | 96,446 | 0.48 | (d) | 2.21 | 20.4 | |||||||||
1.02 | 149,075 | 0.50 | (c) | 2.19 | 49.9 | |||||||||
2.39 | 158,446 | 0.50 | (c) | 2.01 | 67.3 | |||||||||
2.14 | 170,538 | 0.50 | (c) | 1.91 | 48.6 | |||||||||
0.71 | 160,833 | 0.49 | (c) | 1.63 | 57.0 | |||||||||
1.73 | 267,674 | 0.49 | (c) | 1.74 | 54.3 | |||||||||
1.23 | (e) | 4,083 | 0.75 | (c) | 1.96 | 49.9 | ||||||||
1.78 | (e) | 2,300 | 0.75 | (c) | 1.78 | 67.3 | ||||||||
2.01 | 2,072 | 0.75 | (c) | 1.65 | 48.6 | |||||||||
0.59 | 1,485 | 0.74 | (c) | 1.39 | 57.0 | |||||||||
1.02 | 913 | 0.74 | (c) | 1.49 | 54.3 |
(a) Calculated based on average shares outstanding during the period.
(b)Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c) Reflects Manager's contractual expense limit.
(d)Does not include expenses of the investment companies in which the Portfolio invests.
(e) 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.
107
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 | Net Realized | ||||||||||||||||||||||||||||
Net Asset Value, | Investment | and Unrealized | Total From | Dividends from | Distributions | Total | Net Asset | ||||||||||||||||||||||
Beginning of | Income | Gain (Loss) on | Investment | Net Investment | from Realized | Dividends and | Value, End of | ||||||||||||||||||||||
Period | (Loss)(a) | Investments | Operations | Income | Gains | Distributions | Period | ||||||||||||||||||||||
SMALLCAP ACCOUNT | |||||||||||||||||||||||||||||
Class 1 shares | |||||||||||||||||||||||||||||
2018 | $ | 17.10 | $ | 0.03 | ($1.62 | ) | ($1.59 | ) | ($0.06 | ) | ($1.15 | ) | ($1.21) | $ | 14.30 | ||||||||||||||
2017 | 15.21 | 0.06 | 1.89 | 1.95 | (0.06 | ) | – | (0.06 | ) | 17.10 | |||||||||||||||||||
2016 | 13.55 | 0.15 | 2.15 | 2.30 | (0.04 | ) | (0.60 | ) | (0.64 | ) | 15.21 | ||||||||||||||||||
2015 | 13.99 | 0.05 | (0.03 | ) | 0.02 | (0.01 | ) | (0.45 | ) | (0.46 | ) | 13.55 | |||||||||||||||||
2014 | 13.79 | 0.02 | 0.64 | 0.66 | (0.05 | ) | (0.41 | ) | (0.46 | ) | 13.99 | ||||||||||||||||||
Class 2 shares | |||||||||||||||||||||||||||||
2018 | 17.04 | (0.01 | ) | (1.62 | ) | (1.63 | ) | (0.02 | ) | (1.15 | ) | (1.17 | ) | 14.24 | |||||||||||||||
2017 | 15.17 | 0.02 | 1.87 | 1.89 | (0.02 | ) | – | (0.02 | ) | 17.04 | |||||||||||||||||||
2016 | 13.52 | 0.11 | 2.15 | 2.26 | (0.01 | ) | (0.60 | ) | (0.61 | ) | 15.17 | ||||||||||||||||||
2015 | (d) | 14.49 | 0.02 | (0.53 | ) | (0.51 | ) | (0.01 | ) | (0.45 | ) | (0.46 | ) | 13.52 |
See accompanying notes.
108
Financial Highlights (Continued)
Principal Variable Contracts Funds, Inc.
Net Assets, End of Period (in | Ratio of Expenses to Average Net | Ratio of Net Investment Income to | |||||||||||||
Total Return(b) | thousands) | Assets | Average Net Assets | Portfolio Turnover Rate | |||||||||||
(10.89 | )% | $ | 163,243 | 0.83 | % | 0.20 | % | 45.0 | % | ||||||
12.87 | 208,669 | 0.83 | 0.37 | 64.1 | |||||||||||
17.39 | 209,911 | 0.83 | 1.08 | 57.1 | |||||||||||
(0.10 | ) | 205,344 | 0.83 | 0.33 | 63.3 | ||||||||||
4.89 | 64,682 | 0.87 | 0.16 | 67.0 | |||||||||||
(11.17 | ) (c) | 4,874 | 1.08 | (0.05 | ) | 45.0 | |||||||||
12.57 | (c) | 5,371 | 1.08 | 0.12 | 64.1 | ||||||||||
17.15 | 4,938 | 1.08 | 0.80 | 57.1 | |||||||||||
(3.76) (e) | 4,523 | 1.08 | (f) | 0.13 | (f) | 63.3 | (f) |
(a) Calculated based on average shares outstanding during the period.
(b)Total return does not reflect charges attributable to separate accounts. Inclusion of these charges would reduce the amounts shown.
(c) 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.
(d)Period from February 17, 2015 date operations commenced, through December 31, 2015.
(e) Total return amounts have not been annualized.
(f) Computed on an annualized basis.
See accompanying notes.
109
Report of Independent Registered Public Accounting Firm
To the Shareholders of Diversified International Account, Equity Income Account, Government & High Quality Bond Account, Income Account,LargeCap Growth Account,MidCapAccount, Principal CapitalAppreciationAccount, Real Estate SecuritiesAccount, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, Short-Term Income Account, andSmallCapAccount and 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 Diversified International Account, Equity Income Account, Government & High Quality BondAccount, Income Account, LargeCap Growth Account,MidCap Account, Principal Capital Appreciation 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, andSmallCapAccount (collectively referred to as the “Accounts”) (15 of the accounts constituting Principal Variable Contracts Funds, Inc. (the “Fund”)), including the schedules of investments, as of December 31, 2018, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Accounts at December 31, 2018, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on each of the Accounts’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2018, by correspondence with the custodian, transfer agent, agent banks, and brokers or by other appropriate auditing procedures where replies from brokers and agent banks 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 15, 2019
110
Shareholder Expense Example
Principal Variable Contracts Funds, Inc.
December 31, 2018 (unaudited)
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 Accounts may indirectly bear its pro rata share of the expenses incurred by the investment companies in which the fund invests. 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, 2018 to December 31, 2018), unless otherwise noted.
Actual Expenses
The first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the table below provides information about hypothetical account values and hypothetical expenses based on each account’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the account’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in Principal Variable Contracts Funds, Inc. and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total cost of owning different funds.
Expenses Paid | ||||||||||
Ending | During Period | |||||||||
Beginning Account | Account Value | July 1, 2018 | Annualized | |||||||
ValueJuly 1, 2018 | December 31, 2018 | to December 31, 2018(a) | Expense Ratio | |||||||
Diversified International Account Class 1 | ||||||||||
Actual | $ | 1,000.00 | $ | 858.45 | $ | 4.26 | 0.91 | % | ||
Hypothetical | 1,000.00 | 1,020.62 | 4.63 | 0.91 | ||||||
Diversified International Account Class 2 | ||||||||||
Actual | 1,000.00 | 857.21 | 5.43 | 1.16 | ||||||
Hypothetical | 1,000.00 | 1,019.36 | 5.90 | 1.16 | ||||||
Equity Income Account Class 1 | ||||||||||
Actual | 1,000.00 | 952.07 | 2.36 | 0.48 | ||||||
Hypothetical | 1,000.00 | 1,022.79 | 2.45 | 0.48 | ||||||
Equity Income Account Class 2 | ||||||||||
Actual | 1,000.00 | 950.94 | 3.59 | 0.73 | ||||||
Hypothetical | 1,000.00 | 1,021.53 | 3.72 | 0.73 | ||||||
Government & High Quality Bond Account Class 1 | ||||||||||
Actual | 1,000.00 | 1,018.52 | 2.59 | 0.51 | ||||||
Hypothetical | 1,000.00 | 1,022.63 | 2.60 | 0.51 | ||||||
Government & High Quality Bond Account Class 2 | ||||||||||
Actual | 1,000.00 | 1,016.25 | 3.86 | 0.76 | ||||||
Hypothetical | 1,000.00 | 1,021.37 | 3.87 | 0.76 | ||||||
Income Account Class 1 | ||||||||||
Actual | 1,000.00 | 1,009.77 | 2.58 | 0.51 | ||||||
Hypothetical | 1,000.00 | 1,022.63 | 2.60 | 0.51 | ||||||
Income Account Class 2 | ||||||||||
Actual | 1,000.00 | 1,008.64 | 3.85 | 0.76 | ||||||
Hypothetical | 1,000.00 | 1,021.37 | 3.87 | 0.76 |
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Shareholder Expense Example | ||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||
December 31, 2018 (unaudited) | ||||||||||
Expenses Paid | ||||||||||
Ending | During Period | |||||||||
Beginning Account | Account Value | July 1, 2018 | Annualized | |||||||
ValueJuly 1, 2018 | December 31, 2018 | to December 31, 2018(a) | Expense Ratio | |||||||
LargeCap Growth Account Class 1 | ||||||||||
Actual | $ | 1,000.00 | $ | 845.52 | $ | 3.21 | 0.69 | % | ||
Hypothetical | 1,000.00 | 1,021.73 | 3.52 | 0.69 | ||||||
LargeCap Growth Account Class 2 | ||||||||||
Actual | 1,000.00 | 844.40 | 4.37 | 0.94 | ||||||
Hypothetical | 1,000.00 | 1,020.47 | 4.79 | 0.94 | ||||||
MidCap Account Class 1 | ||||||||||
Actual | 1,000.00 | 907.21 | 2.64 | 0.55 | ||||||
Hypothetical | 1,000.00 | 1,022.43 | 2.80 | 0.55 | ||||||
MidCap Account Class 2 | ||||||||||
Actual | 1,000.00 | 905.92 | 3.84 | 0.80 | ||||||
Hypothetical | 1,000.00 | 1,021.17 | 4.08 | 0.80 | ||||||
Principal Capital Appreciation Account Class 1 | ||||||||||
Actual | 1,000.00 | 940.20 | 3.13 | 0.64 | ||||||
Hypothetical | 1,000.00 | 1,021.98 | 3.26 | 0.64 | ||||||
Principal Capital Appreciation Account Class 2 | ||||||||||
Actual | 1,000.00 | 939.31 | 4.35 | 0.89 | ||||||
Hypothetical | 1,000.00 | 1,020.72 | 4.53 | 0.89 | ||||||
Real Estate Securities Account Class 1 | ||||||||||
Actual | 1,000.00 | 945.93 | 4.37 | 0.89 | ||||||
Hypothetical | 1,000.00 | 1,020.72 | 4.53 | 0.89 | ||||||
Real Estate Securities Account Class 2 | ||||||||||
Actual | 1,000.00 | 944.76 | 5.59 | 1.14 | ||||||
Hypothetical | 1,000.00 | 1,019.46 | 5.80 | 1.14 | ||||||
SAM Balanced Portfolio Class 1 | ||||||||||
Actual | 1,000.00 | 947.19 | 1.18 | 0.24 | ||||||
Hypothetical | 1,000.00 | 1,024.00 | 1.22 | 0.24 | ||||||
SAM Balanced Portfolio Class 2 | ||||||||||
Actual | 1,000.00 | 945.67 | 2.40 | 0.49 | ||||||
Hypothetical | 1,000.00 | 1,022.74 | 2.50 | 0.49 | ||||||
SAM Conservative Balanced Portfolio Class 1 | ||||||||||
Actual | 1,000.00 | 965.86 | 1.14 | 0.23 | ||||||
Hypothetical | 1,000.00 | 1,024.05 | 1.17 | 0.23 | ||||||
SAM Conservative Balanced Portfolio Class 2 | ||||||||||
Actual | 1,000.00 | 964.05 | 2.38 | 0.48 | ||||||
Hypothetical | 1,000.00 | 1,022.79 | 2.45 | 0.48 | ||||||
SAM Conservative Growth Portfolio Class 1 | ||||||||||
Actual | 1,000.00 | 928.66 | 1.12 | 0.23 | ||||||
Hypothetical | 1,000.00 | 1,024.05 | 1.17 | 0.23 | ||||||
SAM Conservative Growth Portfolio Class 2 | ||||||||||
Actual | 1,000.00 | 927.54 | 2.33 | 0.48 | ||||||
Hypothetical | 1,000.00 | 1,022.79 | 2.45 | 0.48 | ||||||
SAM Flexible Income Portfolio Class 1 | ||||||||||
Actual | 1,000.00 | 983.34 | 1.15 | 0.23 | ||||||
Hypothetical | 1,000.00 | 1,024.05 | 1.17 | 0.23 | ||||||
SAM Flexible Income Portfolio Class 2 | ||||||||||
Actual | 1,000.00 | 981.09 | 2.40 | 0.48 | ||||||
Hypothetical | 1,000.00 | 1,022.79 | 2.45 | 0.48 | ||||||
SAM Strategic Growth Portfolio Class 1 | ||||||||||
Actual | 1,000.00 | 911.49 | 1.11 | 0.23 | ||||||
Hypothetical | 1,000.00 | 1,024.05 | 1.17 | 0.23 | ||||||
SAM Strategic Growth Portfolio Class 2 | ||||||||||
Actual | 1,000.00 | 910.07 | 2.31 | 0.48 | ||||||
Hypothetical | 1,000.00 | 1,022.79 | 2.45 | 0.48 |
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Shareholder Expense Example | ||||||||||
Principal Variable Contracts Funds, Inc. | ||||||||||
December 31, 2018 (unaudited) | ||||||||||
Expenses Paid | ||||||||||
Ending | During Period | |||||||||
Beginning Account | Account Value | July 1, 2018 | Annualized | |||||||
ValueJuly 1, 2018 | December 31, 2018 | to December 31, 2018(a) | Expense Ratio | |||||||
Short-Term Income Account Class 1 | ||||||||||
Actual | $ | 1,000.00 | $ | 1,010.17 | $ | 2.53 | 0.50 | % | ||
Hypothetical | 1,000.00 | 1,022.68 | 2.55 | 0.50 | ||||||
Short-Term Income Account Class 2 | ||||||||||
Actual | 1,000.00 | 1,008.27 | 3.80 | 0.75 | ||||||
Hypothetical | 1,000.00 | 1,021.42 | 3.82 | 0.75 | ||||||
SmallCap Account Class 1 | ||||||||||
Actual | 1,000.00 | 806.67 | 3.78 | 0.83 | ||||||
Hypothetical | 1,000.00 | 1,021.02 | 4.23 | 0.83 | ||||||
SmallCap Account Class 2 | ||||||||||
Actual | 1,000.00 | 805.22 | 4.91 | 1.08 | ||||||
Hypothetical | 1,000.00 | 1,019.76 | 5.50 | 1.08 |
(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). |
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FUND DIRECTORS AND OFFICERS
Under Maryland law, a Board of Directors oversees the Fund. The Directors have financial or other relevant experience and meet several times during the year to review contracts, Fund activities and the quality of services provided to the Fund. Each director also has the same position with Principal Funds, Inc. and Principal Exchange-Traded Funds which are also sponsored by Principal Life Insurance Company. Each director holds office for an indefinite term or until reaching age 72. Directors considered to be “interested persons” as defined in the Investment Company Act of 1940, as shown below are considered to be interested because of an affiliation with the Manager and Principal
Life Insurance Company.
The following directors are considered not to be “interested persons” as defined in the 1940 Act
Other | ||||
Name, | Number of Portfolios | Directorships | ||
Position Held with the Fund, | Principal Occupation(s) | in Fund Complex | Held by Director | |
Year of Birth | During past 5 years | Overseen by Director | During Past 5 Years | |
Elizabeth Ballantine | Principal, EBA Associates | 131 | Durango Herald, Inc; | |
Director since 2004 | McClatchy Newspapers, Inc. | |||
Member, Nominating and Governance | ||||
Committee | ||||
1948 | ||||
Leroy T. Barnes, Jr. | Retired. | 131 | McClatchy Newspapers, | |
Director since 2012 | Inc.; Herbalife Ltd.; Frontier | |||
Member, Audit Committee | Communications, Inc. | |||
1951 | ||||
Craig Damos | President, The Damos Company | 131 | Hardin Construction | |
Director since 2008 | ||||
Member, Audit Committee Member, | ||||
15(c)Committee | ||||
1954 | ||||
Mark A. Grimmett | Formerly, Executive Vice President and CFO, Merle | 131 | None | |
Director since 2004 | Norman Cosmetics, Inc. | |||
Member, Nominating and Governance | ||||
Committee | ||||
Member, 15(c) Committee | ||||
Member, Executive Committee | ||||
1960 | ||||
Fritz S. Hirsch | Formerly, CEO, MAM USA | 131 | Focus Products Group; MAM | |
Director since 2005 | USA | |||
Member, Operations Committee | ||||
Member, 15(c) Committee | ||||
1951 | ||||
Tao Huang | Retired. | 131 | Armstrong World Industries, | |
Director since March 2012 | Inc. | |||
Member, Operations Committee | ||||
Member, 15(c) Committee | ||||
1962 | ||||
Karen (“Karrie”) McMillan | Managing Director, Patomak Global Partners, LLC. | 131 | None | |
Director since 2014 | Formerly, General Counsel, Investment Company | |||
Member, Operations Committee | Institute | |||
1961 | ||||
Elizabeth A. Nickels | Formerly, Executive Director, Herman Miller | 131 | Charlotte Russe; Follet | |
Director since 2015 | Foundation; Formerly President, Herman Miller | Corporation; PetSmart; | ||
Member, Audit Committee | Healthcare | SpartanNash; Spectrum | ||
1962 | Health Systems | |||
Mary M. (“Meg”) VanDeWeghe | CEO and President, Forte Consulting, Inc. | 131 | Brown Advisory; B/E | |
Director since 2018 | Aerospace; WP Carey; Nalco | |||
Member, Operations Committee | (and its successor Ecolab) | |||
1959 |
114
The following directors are considered to be “interested persons” as defined in the 1940 Act, because of an affiliation with the
Manager and Principal Life.
Other | |||
Name, | Number of Portfolios | Directorships | |
Position Held with the Fund, | Principal Occupation(s) | in Fund Complex | Held by Director |
Year of Birth | During past 5 years | Overseen by Director | During Past 5 Years |
Michael J. Beer | Chief Executive Officer, Principal Funds | 131 | None |
Director since 2012 | Distributor, Inc. (“PFD”) since 2015 Executive | ||
President, Chief Executive Officer | Director – Funds, Principal Global | ||
Member, Executive Committee | Investors, LLC (“PGI”) since 2017 Director, PGI | ||
1961 | since 2017 | ||
Director, PFD since 2015 | |||
Vice President/Mutual Funds and Broker | |||
Dealer, Principal Life Insurance Company | |||
(“PLIC”) (2001-2014) | |||
Vice President/Chief Operating Officer, | |||
Principal Funds, PLIC (2014-2015) | |||
Executive Director, Principal Funds & | |||
Trust, PLIC since 2015 | |||
Director, Principal Management | |||
Corporation, (“PMC”) (2006-2015) President & | |||
Chief Executive Officer, | |||
PMC (2015-2017) | |||
Executive Vice President/Chief Operating | |||
Officer, PMC (2008-2015) | |||
Chair, PMC (2015-2017) | |||
Director, Principal Securities, Inc. (“PSI”) (2005- | |||
2015) | |||
President, PSI (2005-2015) | |||
Director, Principal Shareholder | |||
Services (“PSS”) (2007-2015) | |||
Chairman, PSS since 2015 | |||
President, PSS (2007-2015) | |||
Executive Vice President, PSS since 2015 | |||
Nora M. Everett | Director, Finisterre Capital LLP since 2011 Director, | 131 | None |
Director since 2008 | Origin Asset Management | ||
Chair | LLP since 2011 | ||
Member, Executive Committee | Chairman, Principal Financial | ||
1959 | Advisors, Inc. (“PFA”) (2010-2015) Chairman, | ||
PFD (2011-2015) | |||
Senior Vice President/Retirement and | |||
Income Solutions (“RIS”), PLIC (2008-2015) | |||
President/RIS, PLIC since 2015 | |||
Chairman, PMC (2011-2015) | |||
President, PMC (2008-2015) | |||
Director, PSI (2008-2011, and since 2015) | |||
Chairman, PSI (2011-2015) | |||
Chief Executive Officer, PSI (2009-2015) Chairman, | |||
PSS (2011-2015) | |||
Patrick Halter | Director, Morley Capital Management, Inc. | 131 | None |
Director since 2017 | (“Morley”) since 2017 | ||
Member, Executive Committee | Chair, Post Advisory Group, LLC (“Post”) since | ||
1959 | 2017 | ||
Chief Operating Officer, PGI since 2017 Director, | |||
PGI since 2003 | |||
Chair, PREI since 2004 | |||
Chief Executive Officer, PREI since 2005 Chair, | |||
Spectrum since 2017 |
Correspondence intended for each Director who is other than an Interested Director may be sent to 655 9th Street, Des Moines, IA 50392.
115
The following table presents officers of the Funds.
Name, | |
Position Held with the Fund, | Principal Occupation(s) |
Address, and Year of Birth | During past 5 years |
Randy L. Bergstrom | Counsel, PGI |
Assistant Tax Counsel | Counsel, PLIC |
Des Moines, IA 50392 | |
1955 | |
Jennifer A. Block | Vice President and Counsel (2017-2018) |
Deputy Chief Compliance Officer | Assistant Counsel (2010-2017) |
Des Moines, IA 50392 | Assistant Secretary (2015-2018) |
1973 | Counsel, PGI (2017-2018) |
Counsel, PFD (2009-2013) | |
Counsel, PLIC (2009-2018) | |
Counsel, PMC (2009-2013, 2014-2017) | |
Counsel, PSI (2009-2013) | |
Counsel, PSS (2009-2013) | |
Tracy Bollin | Managing Director, PGI since 2016 |
Chief Financial Officer | Chief Operating Officer, PMC (2015-2017) |
Des Moines, IA 50392 | Chief Financial Officer, PFA (2010-2015) |
1970 | Senior Vice President, PFD since 2015 |
Chief Financial Officer, PFD (2010-2016) | |
Senior Vice President, PMC (2015–2017) | |
Chief Financial Officer, PMC (2010-2015) | |
Director, PMC (2014–2017) | |
Chief Financial Officer, PSI (2010-2015) | |
Director, PSS since 2014 | |
President, PSS since 2015 | |
Chief Financial Officer, PSS (2010-2015) | |
Gina L. Graham | Vice President/Treasurer, PFA since 2016 |
Treasurer | Vice President/Treasurer, Morely since 2016 |
Des Moines, IA 50392 | Vice President/Treasurer, PFD since 2016 |
1965 | Vice President/Treasurer, PGI since 2016 |
Vice President/Treasurer, PLIC since 2016 | |
Vice President/Treasurer, PMC (2016-2017) | |
Vice President/Treasurer, Principal Real Estate | |
Investors, LLC since 2016 | |
Vice President/Treasurer, PSI since 2016 | |
Vice President/Treasurer, PSS since 2016 | |
Laura B. Latham | Counsel, PGI since 2018 |
Assistant Counsel and Assistant Secretary | Prior thereto, Attorney in Private Practice |
Des Moines, IA 50392 | |
1986 | |
Diane K. Nelson | Chief Compliance Officer/AML Officer, PSS since |
AML Officer | 2015 |
Des Moines, IA 50392 | Compliance Advisor, PMC (2013-2015) |
1965 | |
Layne A. Rasmussen | Vice President/Controller, PMC prior to 2018 |
Vice President | Director – Accounting, PLIC since 2015 |
Des Moines, IA 50392 | Financial Controller, PLIC prior to 2015 |
1958 | |
Sara L. Reece | Director - Accounting, PLIC since 2015 |
Vice President and Controller | Assistant Financial Controller, PLIC prior to 2015 |
Des Moines, IA 50392 | |
1975 | |
Teri R. Root | Interim Chief Compliance Officer (2018) |
Chief Compliance Officer | Deputy Chief Compliance Officer (2015-2018) |
Des Moines, IA 50392 | Deputy Chief Compliance Officer, PGI since 2017 |
1979 | Vice President and Chief Compliance Officer, PMC |
(2015–2017) | |
Compliance Officer, PMC (2010-2013) | |
Vice President, PSS since 2015 |
116
Name, | |
Position Held with the Fund, | Principal Occupation(s) |
Address, and Year of Birth | During past 5 years |
Britney L. Schnathorst | Counsel, PLIC since 2013 |
Assistant Counsel and Assistant | Prior thereto, Attorney in Private Practice |
Secretary | |
Des Moines, IA 50392 | |
1981 | |
Adam U. Shaikh | Assistant General Counsel, PGI since 2018 |
Assistant Counsel | Counsel, PGI (2017-2018) |
Des Moines, IA 50392 | Counsel, PFD (2006-2013) |
1972 | Counsel, PLIC |
Counsel, PMC (2007-2013, 2014-2017) | |
Counsel, PSI (2007-2013) | |
Dan Westholm | Assistant Vice President/Treasurer, PGI since 2017 |
Assistant Treasurer | Assistant Vice President/Treasury, PFA since 2013 |
Des Moines, IA 50392 | Director – Treasury, PFA (2011-2013) |
1966 | Assistant Vice President/Treasury, PFD since 2013 |
Director – Treasury, PFD (2011-2013) | |
Assistant Vice President/Treasury, PLIC since 2014 | |
Director – Treasury, PLIC (2007-2014) | |
Director – Treasury, PMC (2003-2013) | |
Assistant Vice President/Treasury, PMC (2013- | |
2017) | |
Assistant Vice President/Treasury, PSI since 2013 | |
Director – Treasury, PSI (2011-2013) | |
Assistant Vice President/Treasury, PSS since 2013 | |
Director – Treasury, PSS (2007-2013) | |
Beth Wilson | Director and Secretary – Funds, PLIC |
Vice President and Secretary | Vice President, PMC (2007-2013) |
Des Moines, IA 50392 | |
1956 | |
Clint Woods | Of Counsel (2017-2018) |
Counsel, Vice President, and | Vice President (2016-2017) |
Assistant Secretary | Counsel (2015-2017) |
Des Moines, IA 50392 | Vice President, PLIC since 2015 |
1961 | Associate General Counsel, Governance Officer, and |
Assistant Corporate Secretary, PLIC since 2013 | |
Jared Yepsen | Counsel, PGI since 2017 |
Assistant Tax Counsel | Counsel, PLIC since 2015 |
Des Moines, IA 50392 | Senior Attorney, Transamerica Life Insurance |
1981 | Company (TLIC) |
(2013-2015) | |
Attorney, TLIC (2010-2013) |
The 15(c) Committee’s primary purpose is to assist the Board in performing the annual review of the Fund’s advisory and sub-advisory agreements pursuant to Section 15(c) of the 1940 Act. The Committee responsibilities include requesting and reviewing materials.
The Audit Committee’s primary purpose is to assist the Board in fulfilling certain of its responsibilities. The Audit Committee serves as an independent and objective party to monitor the Fund Complex’s accounting policies, financial reporting and internal control system, as well as the work of the independent registered public accountants. The Audit Committee assists Board oversight of 1) the integrity of the Fund Complex’s financial statements; 2) the Fund Complex’s compliance with certain legal and regulatory requirements; 3) the independent registered public accountants’qualifications and independence; and 4) the performance of the Fund Complex’s independent registered public accountants. The Audit Committee also provides an open avenue of communication among the independent registered public accountants, the Manager’s internal auditors, Fund Complex management, and the Board.
The Executive Committee’s primary purpose is to exercise certain powers of the Board when the Board is not in session. When the Board is not in session, the Committee may exercise all powers of the Board in the management of the business of the Fund Complex except the power to 1) authorize dividends or distributions on stock; 2) issue stock, except as permitted by law; 3) recommend to the stockholders any action which requires stockholder approval; 4) amend the bylaws; or 5) approve any merger or share exchange which does not require stockholderapproval.
The Nominating and Governance Committee’s primary purpose is to oversee the structure and efficiency of the Board and the committees established by the Board. The Committee responsibilities include evaluating Board membership and functions, committee membership and
117
functions, insurance coverage, and legal matters. The nominating functions of the Committee include selecting and nominating all candidates who are not “interested persons” of the Fund Complex for election to the Board. Generally, the Committee requests director nominee suggestions from the committee members and management. In addition, the Committee will consider Director candidates recommended by shareholders of the Fund Complex. Recommendations should be submitted in writing to Principal Funds, Inc. at 711 High Street, Des Moines, IA 50392. When evaluating a person as a potential nominee to serve as an Independent Director, the Committee will generally consider, among other factors: age; education; relevant business experience; geographical factors; whether the person is “independent” and otherwise qualified under applicable laws and regulations to serve as a director; and whether the person is willing to serve, and willing and able to commit the time necessary for attendance at meetings and the performance of the duties of an independent director. The Committee also meets personally with the nominees and conducts a reference check. The final decision is based on a combination of factors, including the strengths and the experience an individual may bring to the Board. The Committee believes the Board generally benefits from diversity of background, experience and views among its members, and considers these factors in evaluating the composition of the Board. The Board does not use regularly the services of any professional search firms to identify or evaluate or assist in identifying or evaluating potential candidates or nominees.
The Operations Committee’s primary purpose is to oversee the provision of administrative and distribution services to the Funds Complex, communications with the Fund Complex’s shareholders, and review and oversight of the Fund Complex’s operations.
Additional information about the Fund is available in the Prospectus dated May 1, 2018, and the Statement of Additional Information dated May 1, 2018. 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.
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 as of March 31 and September 30 of each year on Form N-Q. The Fund’s Form N-Q can be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. or on the Commission’s website at www.sec.gov. Information on the operation of the Public Reference Room may be obtained by calling the Commission at 1-202-551-8090.
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BOARD CONSIDERATION OF INVESTMENTADVISORY CONTRACTS
During the period covered by this report, the Board of Directors of Principal Variable Contracts Funds, Inc. (“PVC”) approved: (1) the renewal of the Management Agreement and various subadvisory agreements for all Funds, and (2) an amended and restated Sub-Advisory Agreement with Principal Real Estate Investors, LLC related to the Real Estate Securities Account.
Annual Review and Renewal of Management Agreement andSubadvisoryAgreements
At its September 11, 2018 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-six (37) 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; Columbus Circle Investors (“CCI”); Mellon Corporation (“Mellon”); 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, including the Independent Directors, considered the factors and reached the conclusions described below relating to the continuation of the Advisory Agreements. In evaluating the Advisory Agreements, the Board, including the Independent Directors, reviewed a broad range of information requested for this purpose by the Independent Directors, 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 ManagementAgreement for each Fund, the Board considered, among other factors, that the Manager, along with Principal Management Corporation (“PMC”), the previous investment adviser to the Funds that merged with and into the Manager on May 1, 2017, and its affiliates have demonstrated a long-term commitment to support the Funds, including undertakings to cap Fund expenses and/or waive fees for certain Funds. In addition, the Board considered the following factors, and made certain findings and conclusions with respect thereto, for each of the Funds. The Board concluded that a relationship with a capable and conscientious adviser is in the best interests of each Fund.
Nature, Extent and Quality of Services
The Board considered the nature, quality and extent of the services provided under the Management Agreements, including accounting and administrative services, as applicable. 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 Agreements. 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 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, 2018 and the blended investment return (50%/50%) of the three- and five-year periods ended March 31, 2018, and compared those returns to various agreed-upon performance measures, including peer-group data based upon a broad-based, industry category determined by Morningstar.
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, 2018, respectively, if available. The Board also compared each Fund’s investment performance over
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the one-, three- and five-year periods ended March 31, 2018, as available, to one or more relevant benchmark indices. The Board noted that certain Funds had commenced operations recently and, accordingly, no or limited performance information was considered. The Board also considered whether investment results were consistent with a Fund’s investment objective(s) and policies. For most Funds, the Board 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 management fee. For each Fund, the Board received certain information from Broadridge. For Funds the Board received information comparing each Fund’s (1) contractual management fee at current asset levels and at theoretical asset levels, (2) actual management fee (after any fee waivers) at average fiscal-year asset levels, (3) actual non-management fees at average fiscal-year asset levels, and (4) actual total 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 fees and expense ratios of funds in a peer group selected by Broadridge (“Expense Group”), and, if available, a broad-based, industry category defined by Broadridge (“Expense Universe”). For Funds that did not offer Class 1 shares, the information provided was based upon Class 2 shares.
In evaluating the management fees, the Board considered a variety of factors, including the amount of the fees, breakpoints, comparison to fees of peer group funds and other funds and non-fund accounts managed by the Manager, subadvisory fees paid, services provided, investment performance, total net expense ratios, profitability, the existence and sharing of economies of scale and expense caps and fee waivers. The Board considered that certain Principal Funds, Inc. Funds with similar investment strategies and policies have different management fees and noted the reasons cited by the Manager for the differing fees. 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, actual management fees were within the third quartile or better when compared to their Expense Group. For some Funds, although actual management fees were higher than the third quartile, total net expense ratios were within the third quartile or better. Discussion is set forth below regarding specific factors relevant to the Board’s review of certain other Funds.
With respect to the 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 and found them to be reasonable. The Board reviewed the total net expense ratios of the Funds, including acquired fund fees and expenses. The Board considered that many of the Principal LifeTime Accounts would benefit from the new contractual fee waivers for certain Funds in which the Funds invest, as discussed below, and determined to monitor the Funds’ total net expense ratios going forward.
With respect to the Largecap Growth Account I that uses the “Core Satellite” structure, the Board also considered that the Manager contractually agreed to continue to waive a portion of its management fee. The Board considered the services provided by the Manager in managing the enhanced index “Core” sleeve as a part of the overall services covered by the net management fee received by the Manager.
The Board also considered the expense caps and fee waivers that would be in place with respect to certain Funds and share classes. The list of agreed upon expense caps and fee waivers is the result of the Manager’s proposals to extend the expense caps and fee waivers for certain Funds and share classes and to terminate the expense caps and fee waivers for certain Funds and share classes that are both currently operating and projected to operate below current applicable expense caps.
The list of agreed upon expense caps and fee waivers also reflects new or revised fee waivers for the International Emerging MarketsAccount and the Real Estate Securities Account, to be effective from January 1, 2019 through April 30, 2020.
Considering all factors they deemed relevant, the Board concluded that the management fee payable by each Fund was reasonable in light of the nature, quality and extent of the services provided by the Manager and other relevant factors.
In addition, with regard to the Diversified Growth Volatility Control Account and the Diversified Balanced Volatility Control Account, each of which is permitted to invest in unaffiliated exchange-traded funds in excess of the limits set forth in Section 12(d)(1) of the Investment Company Act of 1940, as amended, in accordance with exemptive orders issued to such exchange-traded funds and procedures previously adopted by the Board, the Board considered information provided by the Manager relating to the non-duplicative nature of the Fund’s management fees and found that the management fees charged by the Manager under the Management Agreement for the Fund are for 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.
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Profitability
The Board reviewed detailed information regarding revenues PMC, the previous investment advisor to the Funds, and its affiliate, 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, 2017. The Board also considered the returns on revenue generated in connection with the payment of subadvisory fees to affiliated Subadvisors (Columbus Circle Investors, Principal Real Estate Investors LLC and SpectrumAsset Management, Inc.) and the aggregated return on revenue to PMC and its affiliates for the year ended December 31, 2017. 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 2018 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 fees at each breakpoint and the amount of fee reductions that had been provided to shareholders as a result of these breakpoints. 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 Diversified Balanced Account, the Diversified Balanced Managed Volatility Account, the Diversified Balanced Volatility Control Account, the Diversified Growth Account, the Diversified Growth Managed Volatility Account, the Diversified Growth Volatility Control Account, the Diversified Income Account, the Multi-Asset Income Account, the Bond Market Index Account, and the LargeCap S&P 500 Index Account do not include breakpoints, but each such Fund has a relatively low basis point fee (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 profitabilityto 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 fees, 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 at current asset levels and at theoretical asset levels to subadvisory fees of subadvised funds in the Expense Group and, if available, the Expense Universe.
The Board considered whether there are economies of scale with respect to the subadvisory services provided to each subadvised Fund and, if so, whether the subadvisory fees reflect such economies of scale through breakpoints in fees or whether the subadvisory fee schedule is otherwise appropriate at current asset levels. In addition, in evaluating the subadvisory fees and the factor of profitability, with respect to
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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.
Principal Real Estate Investors, LLC Amended and Restated Sub-Advisory Agreement
On December 11, 2018, the Board met to consider for the Real Estate Securities Account (the “Account”) the approval of an amended fee schedule under the subadvisory agreement (the “Subadvisory Agreement”) between the Manager and Principal Real Estate Investors, LLC (the “Subadvisor”) with respect to the Account, which would result in a reduction of the subadvisory fee rate at all asset levels.
The Board reviewed materials received from the Manager regarding the proposed change in the subadvisory fee schedule. The Board considered the Manager’s representation that the change in the subadvisory fee schedule would not reduce the quality or quantity of the services provided by the Subadvisor to the Account and that the Subadvisor’s obligations under the Subadvisory Agreement would remain the same in all material respects. The Board also considered that the Manager was not proposing any material changes to the terms of the Subadvisory Agreement other than to the fee schedule.
The Board considered that they had last approved the Subadvisory Agreement for the Account during the annual contract renewal process that concluded at the Board of Directors’ September 2018 meeting. They noted that during the annual contract renewal process, they had considered the nature, quality and extent of the services provided by the Subadvisor under the Subadvisory Agreement and had concluded, based upon the information provided, that the terms of the Subadvisory Agreement were reasonable and that approval of the SubadvisoryAgreement was in the best interests of the Account.
Based upon all of the information considered, the Board concluded that it was in the best interests of the Account to approve the amended Subadvisory Agreement at this time and, accordingly, recommended to the Board of Directors the approval of the amended SubadvisoryAgreement.
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Special Meeting of Shareholders
Principal Variable Contracts Funds, Inc.
Held October 1, 2018
1. Shareholders of LargeCap Value Account voted to approve a Plan of Acquisition providing the reorganization of LargeCap Value Account into Equity Income Account:
In Favor | Opposed | Abstained |
4,049,431.508 | 50,762.673 | 284,262.029 |
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Federal Income Tax Information
Principal Variable Contracts Funds, Inc.
December 31, 2018 (unaudited)
Long-Term Capital Gain Dividends.Certain accounts distributed long-term capital gain dividends during the fiscal year endedDecember31, 2018. Details of designated long-term capital gain dividends for federal income tax purposes are shown in the Notes to Financial Statements. To the extent necessary to distribute such capital gains, certain accounts may also utilize, and hereby designate, earnings and profits distributed to shareholders on redemptions of shares as part of the Dividends Paid Deduction.
Unrecaptured Section 1250 Gain Distribution.Principal Variable Contracts Funds, Inc. – Real Estate Securities Account distributed Unrecaputured Section 1250 gains, in addition to long-term capital gains, in 2018. Unrecaptured Section 1250 gains are gains from the sale of depreciable property that are subject to a maximum tax rate of 25%.
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, 2018, that qualifies for the DRD are as follows:
DRD | |||
Equity Income Account | 69.83 | % | |
Income Account | 0.98 | ||
LargeCap Growth Account | 100.00 | ||
MidCap Account | 99.98 | ||
Principal Capital Appreciation Account | 100.00 | ||
SAM Balanced Portfolio | 30.87 | ||
SAM Conservative Balanced Portfolio | 22.02 | ||
SAM Conservative Growth Portfolio | 38.80 | ||
SAM Flexible Income Portfolio | 21.21 | ||
SAM Strategic Growth Portfolio | 35.43 | ||
SmallCap Account | 35.21 |
Foreign Taxes Paid.The following accounts elect under the Internal Revenue Code Section (“IRC”) 853 to pass through foreign taxes paid to their shareholders. The total amounts of foreign taxes passed through to shareholders on a per share basis for the year endedDecember31, 2018, are as follows:
Foreign Taxes | Foreign | |||||
Per Share | Source Income | |||||
Diversified International Account | $ | 0.0454 | 99.37 | % | ||
SAM Balanced Portfolio | 0.0054 | 17.38 | ||||
SAM Conservative Balanced Portfolio | 0.0028 | 11.02 | ||||
SAM Conservative Growth Portfolio | 0.0105 | 25.58 | ||||
SAM Flexible Income Portfolio | 0.0003 | 0.80 | ||||
SAM Strategic Growth Portfolio | 0.0151 | 36.88 |
The accounts may receive a refund of taxes that can result in a redetermination of historical foreign taxes paid in accordance with IRC Section 905(c). The accounts will provide by February 28th annually, when applicable, any foreign tax redetermination on Principal’s Tax Center website under the Principal Variable Contracts Funds, Inc.’s Foreign Tax Redetermination Notices.
The latest Federal Income Tax Information is available on Principal's Tax Center website.Website: https://www.principalfunds.com/individual-investor/customer-support/tax-centerPlease consult your tax advisor if you have any questions.
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This report must be preceded or accompanied by a current prospectus for the Principal Variable Contracts Funds, Inc.
Principal Funds are distributed by Principal Funds Distributor, Inc.
MM1290B-11| © 2018 Principal Financial Services, Inc. | 12/2018 | t1712070973
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 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 12(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, 2017 - $610,734
December 31, 2018 - $572,733
(b) Audit-Related Fees.Ernst & Young provided audit-related services to the registrant during the last fiscal year 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, 2017 - $10,000
December 31, 2018 - $5,500
Ernst and Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(c) Tax Fees.Ernst & Young prepares and reviews the federal income tax returns and federal excise tax returns of the registrant. In connection with this service, Ernst & Young prepares and reviews the calculation of the registrant’s dividend distributions that are included as deductions on the tax returns. Ernst & Young also provides services to identify passive foreign investment companies. Ernst & Young also provides services to understand and comply with tax laws in certain foreign countries and services to determine the taxability of corporate actions. During the last two fiscal years, Ernst & Young has billed the following amounts for their professional tax services.
December 31, 2017 - $112,847
December 31, 2018 - $150,191
Ernst and Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(d) All Other Fees.Ernst & Young has not billed the registrant for other products or services during the last two fiscal years.
Ernst and Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.
(e) (1) Audit Committee Pre-Approval Policy.The audit committee of the registrant has adopted the following pre-approval policy:
Policy on Auditor Independence
The purpose of this policy is to ensure the independence of the Principal Funds' primary independent auditor. This policy is established by the Audit Committee (the "Committee") of the Boards of Directors of Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. and the Board of Trustees of Principal Exchange-Traded Funds (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 and concurring partners 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 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 June 12, 2017).
(End of policy)
(f) (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.
(g)Substantially all work in connection with the audit of the registrant’s financial statements was performed by full-time employees of Ernst & Young.
(h)The aggregate non-audit fees Ernst and Young billed to the registrant, the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant for each of registrant's last two fiscal years were as follows.
December 31, 2017 - $122,847
December 31, 2018 - $155,691
(i)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
Not applicable.
ITEM 6 – SCHEDULE OF INVESTMENTS
Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.
ITEM 7 – DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 8 – PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 9 – PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not applicable.
ITEM 10 – SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no material changes to the procedures by which shareholders may recommend nominees to registrant’s board of directors.
ITEM 11 – CONTROLS AND PROCEDURES
a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing).
(b) There have been no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter 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 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 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/ Michael J. Beer
Michael J. Beer, President and CEO
Date 2/12/2019
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/ Michael J. Beer
Michael J. Beer, President and CEO
Date 2/12/2019
By /s/ Michael J. Beer
Tracy W. Bollin, Chief Financial Officer
Date 2/12/2019