UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-01944 |
Principal Variable Contracts Funds, Inc. |
(Exact name of registrant as specified in charter)
801 Grand Avenue, Des Moines, IA 50309 |
(Address of principal executive offices) (Zip code)
Principal Global Investors, LLC, 801 Grand Avenue, Des Moines, IA 50309 |
(Name and address of agent for service)
Registrant’s telephone number, including area code: | 515-248-0156 |
Date of fiscal year end: | December 31, 2019 |
Date of reporting period: | December 31, 2019 |
ITEM 1 – REPORT TO STOCKHOLDERS
Principal
Variable
Contracts
Funds,
Inc.
Annual
Report
December
31,
2019
Beginning
on
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
you
may
not
be
receiving
paper
copies
of
the
Fund’s
shareholder
reports
from
the
insurance
company
that
offers
your
contract
unless
you
specifically
request
paper
copies
from
the
insurance
company
or
from
your
financial
intermediary.
Instead,
the
shareholder
reports
will
be
made
available
on
a
website,
and
the
insurance
company
will
notify
you
by
mail
each
time
a
report
is
posted
and
provide
you
with
a
website
link
to
access
the
report.
Instructions
for
requesting
paper
copies
will
be
provided
by
your
insurance
company.
If
you
already
elected
to
receive
shareholder
reports
electronically,
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will
not
be
affected
by
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change
and
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not
take
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action.
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shareholder
reports
by
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if
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if
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Table
of
Contents
Not
FDIC
or
NCUA
insured
May
lose
value
•
Not
a
deposit
•
No
bank
or
credit
union
guarantee
Not
insured
by
any
Federal
government
agency
Economic
&
Financial
Market
Review
1
Important
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
International
Emerging
Markets
Account
(unaudited)
15
LargeCap
Growth
Account
I
(unaudited)
16
LargeCap
S&P
500
Index
Account
(unaudited)
17
LargeCap
S&P
500
Managed
Volatility
Index
Account
(unaudited)
18
MidCap
Account
(unaudited)
19
Principal
Capital
Appreciation
Account
(unaudited)
20
Principal
LifeTime
2010
Account
(unaudited)
21
Principal
LifeTime
2020
Account
(unaudited)
22
Principal
LifeTime
2030
Account
(unaudited)
23
Principal
LifeTime
2040
Account
(unaudited)
24
Principal
LifeTime
2050
Account
(unaudited)
25
Principal
LifeTime
2060
Account
(unaudited)
26
Principal
LifeTime
Strategic
Income
Account
(unaudited)
27
Real
Estate
Securities
Account
(unaudited)
28
SAM
Balanced
Portfolio
(unaudited)
29
SAM
Conservative
Balanced
Portfolio
(unaudited)
30
SAM
Conservative
Growth
Portfolio
(unaudited)
31
SAM
Flexible
Income
Portfolio
(unaudited)
32
SAM
Strategic
Growth
Portfolio
(unaudited)
33
Short-Term
Income
Account
(unaudited)
34
SmallCap
Account
(unaudited)
35
Financial
Statements
36
Notes
to
Financial
Statements
75
Schedules
of
Investments
101
Financial
Highlights
(Includes
performance
information)
226
Report
of
Independent
Registered
Public
Accounting
Firm
246
Shareholder
Expense
Example
248
Supplemental
Information
252
1
Economic
&
Financial
Market
Review
Economic
momentum
has
clearly
improved
in
the
U.S.
and
China.
A
modest
upturn
has
started
in
the
Eurozone,
and
Japan’s
economy
appears
to
be
nearing
an
economic
trough.
China’s
leading
economic
indicator
created
by
the
Organization
of
Economic
Cooperation
and
Development
troughed
in
February,
and
our
own
activity
guide
has
been
picking
up
since
spring.
Broad
gauges
like
retail
sales,
industrial
production,
and
fixed
asset
investment
all
improved
significantly
in
November.
The
partial
détente
in
the
U.S.-China
trade
conflict
bodes
well
for
better
growth
next
year.
U.S.
activity
appears
to
be
bouncing.
Manufacturing
picked
up
in
November.
Small
business
optimism
has
perked
up
and
remains
near
all-time
highs.
Job
growth
is
extraordinarily
strong
for
this
late
in
an
expansion,
which
boosted
consumer
confidence.
Household
balance
sheets
are
in
excellent
shape
and
the
savings
rate
stays
high
at
8%.
The
Eurozone
economy
has
lagged
the
U.S.
and
China
recently,
avoiding
recession
as
the
weak
link
this
year.
Germany
kept
expanding
in
the
third
quarter.
For
the
Eurozone
as
a
whole,
the
trough
was
likely
the
fourth
quarter
of
2019.
Service
sector
surveys
have
picked
up
from
the
bottom,
but
canvasses
of
manufacturing
companies
may
not
be
there
yet.
Those
latter
surveys
showed
activity
ticked
down
in
December
after
weak
October
activity.
But
overall
business
sentiment
shows
signs
of
recovery.
Robust
household
activity
has
kept
a
recession
at
bay,
buoyed
by
a
vigorous
labor
market.
The
Eurozone
appears
set
for
an
upswing.
Wage
growth
has
accelerated,
and
job
gains
stay
hardy
as
the
labor
market
tightens.
The
hike
in
the
value-added
tax
(VAT)
in
Japan
on
October
1
had
the
same
negative
impact
as
prior
ones:
heightened
sales
before
the
hike
and
a
collapse
afterwards.
It
may
cause
growth
to
contract
in
the
fourth
quarter
and
has
surely
delayed
a
rebound
in
Japan.
Manufacturing
remains
weak
from
global
headwinds.
Although
the
job
market
is
incredibly
tight
and
job
openings
plentiful,
the
unemployment
rate
remains
remarkably
tiny
at
2.2%.
Nevertheless,
Japanese
industry
is
in
recession
as
machine
tool
orders
and
industrial
production
keep
falling.
We
do
look
for
growth
to
pick
up
modestly
in
2020
as
the
tax
impact
fades.
The
government
has
proposed
a
large
stimulus
package
to
offset
the
VAT
and
the
2020
Olympics
will
likely
provide
a
temporary
lift.
Industrial
output
in
Taiwan
and
South
Korea
has
trended
somewhat
higher,
a
harbinger
of
a
broader
pickup
in
Southeast
Asia
from
which
Japan
will
likely
benefit.
We
believe
the
foundation
is
being
set
for
a
mild
but
sustained
pickup
in
world
growth
for
2020.
Central
banks
are
very
accommodative.
Interest
rates
stay
extremely
low.
The
lagged
impact
of
rate
cuts
should
stay
beneficial
next
year.
Stimulus
in
China,
while
timid,
appears
to
be
supporting
growth.
Trade
uncertainty
has
lessened.
The
U.S.
dollar
has
weakened.
Credit
stress
is
negligible.
Inflation
stays
moderate.
Commodity
prices
are
rising,
sniffing
the
aroma
of
better
growth.
The
wave
of
revival
seems
to
have
begun.
*Commentary
taken
from
December
2019
Economic
Insights
by
Robert
F.
Baur,
Ph.D.,
executive
director,
chief
global
economist.
All
data
from
Bloomberg,
unless
otherwise
stated.
2
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.
.
3
Bond
Market
Index
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Security
specific
impacts
within
investment-grade
corporate
bonds
contributed.
Slightly
lower
allocation
compared
to
index
weight
to
commercial
mortgage-backed
securities
contributed.
Security
specific
impacts
within
emerging
market
debt
contributed.
Small
cash
allocation
to
manage
investor
flows
was
a
drag
on
performance.
Security
specific
impacts
within
mortgage-backed
securities
detracted.
Security
specific
impacts
within
U.S.
Treasury
securities
detracted.
Value
of
a
$10,000
Investment*
May
15,
2012
-
December
31,
2019
1-Year
5-Year
Since
Inception
Inception
Date
Class
1
Shares
8.47%
2.75%
2.47%
5/15/12
4
Core
Plus
Bond
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
An
out-of-index
allocation
to
below
investment-grade
corporate
bonds
contributed.
Overweight
allocation
to
investment-grade
corporate
bonds
contributed.
Security
selection
within
investment-grade
corporate
bonds
contributed.
Curve
positioning
detracted.
Duration
positioning
detracted.
Underweight
allocation
to
government
related
debt
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
9.81%
3.28%
4.66%
12/18/87
5
Diversified
Balanced
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
Diversified
Balanced
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.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date
Class
1
Shares
18.43%
6.51%
7.62%
5/1/17
12/30/09
Class
2
Shares
18.23%
6.38%
7.55%
12/30/09
–
***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.
6
Diversified
Balanced
Managed
Volatility
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Value
of
a
$10,000
Investment*
October
31,
2013
-
December
31,
2019
1-Year
5-Year
Since
Inception
Inception
Date
Class
2
Shares
17.48%
6.06%
6.34%
10/31/13
7
Diversified
Balanced
Volatility
Control
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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%.
Value
of
a
$10,000
Investment*
March
30,
2017
-
December
31,
2019
1-Year
Since
Inception
Inception
Date
Class
2
Shares
15.47%
6.90%
3/30/17
8
Diversified
Growth
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
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.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
2
Shares
21.20%
7.44%
8.79%
12/30/09
9
Diversified
Growth
Managed
Volatility
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Value
of
a
$10,000
Investment*
October
31,
2013
-
December
31,
2019
1-Year
5-Year
Since
Inception
Inception
Date
Class
2
Shares
20.18%
7.06%
7.32%
10/31/13
10
Diversified
Growth
Volatility
Control
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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%.
Value
of
a
$10,000
Investment*
March
30,
2017
-
December
31,
2019
1-Year
Since
Inception
Inception
Date
Class
2
Shares
17.57%
7.82%
3/30/17
11
Diversified
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Value
of
a
$10,000
Investment*
May
15,
2012
-
December
31,
2019
1-Year
5-Year
Since
Inception
Inception
Date
Class
2
Shares
15.16%
5.28%
6.14%
5/15/12
12
Diversified
International
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
Diversified
International
Account
seeks
long-term
growth
of
capital.
The
Account
invests
primarily
in
foreign
equity
securities.
It
has
no
limitation
on
the
percentage
of
assets
that
are
invested
in
any
one
country
or
denominated
in
any
one
currency,
but
the
Account
typically
invests
in
foreign
securities
of
at
least
20
countries.
The
Account
invests
in
equity
securities
regardless
of
market
capitalization
size
(small,
medium
or
large)
and
style
(growth
or
value).
Stock
selection
in
the
financials
sector
contributed,
led
by
overweight
to
Brookfield
Asset
Management,
a
global
asset
manager
focused
on
property,
renewable
power,
infrastructure,
and
private
equity
assets.
Stock
selection
in
the
United
Kingdom
also
contributed,
led
by
overweight
to
3I
Group,
a
global
leader
in
private
equity
with
a
focus
on
growth
capital,
buyouts,
and
infrastructure
investments
across
a
diversified
mix
of
sectors/industries.
Stock
selection
in
the
health
care
sector
contributed
positively
to
outperformance,
led
by
an
overweight
position
in
HOYA,
a
multinational
Japanese
company
that
produces
eyeglass
lenses,
contact
lenses,
intraocular
lenses,
and
endoscopes
for
health
care
markets,
with
additional
exposure
in
information
technology.
Stock
selection
in
Sweden
detracted,
led
by
an
overweight
position
in
Swedbank,
one
of
the
big
four
Swedish
banks.
Stock
selection
in
Brazil
detracted,
led
by
an
overweight
position
in
Vale,
the
world's
largest
seaborne
market
iron
ore
mining
company.
Stock
selection
in
the
Netherlands
detracted,
led
by
ASML
Holding,
the
market
leader
in
lithography
tools.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
22.69%
5.48%
5.95%
5/2/94
13
Equity
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
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.
Apple
Inc.
outperformed
as
the
company
continues
to
top
expectations
and
diversify
their
revenue
streams
with
service
revenues
seeing
double-digit
growth.
KKR
&
Co.
Inc.
outperformed
over
the
last
twelve
months
on
strong
fiscal
operating
results
and
AUM
growth.
Not
owning
Berkshire
Hathaway
Inc.
Class
B
contributed
to
relative
results. Cimarex
Energy
Company
underperformed
as
the
company
missed
earnings
due
to
lower
natural
gas
liquid
and
gas
prices. Investors
remained
concerned
about
low
gas
prices,
negative
spot
prices
and
that
takeaway
capacity
from
the
Permian
Basin
will
not
be
sufficient.
Kroger
Co.
detracted
from
excess
returns
due
to
results
in
the
grocery
store's
operating
profits. Royal
Dutch
Shell
Plc
underperformed
as
the
company
missed
earnings
estimates
in
3Q
and
as
the
sentiment
for
energy
companies
worsened
during
the
year.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
29.09%
10.54%
12.62%
4/28/98
Class
2
Shares
28.78%
10.27%
12.33%
5/1/01
14
Government
&
High
Quality
Bond
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Security
selection
was
a
contributor
for
the
year.
Allocations
to
call
protected
(i.e.
loan
balance)
pools
contributed
by
insulating
the
portfolio
from
elevated
prepayment
activity.
Out-of-index
allocation
to
commercial
mortgage
backed
securities
(CMBS),
both
agency
and
non-
agency,
contributed
to
overall
performance.
Underweight
to
30-year
Ginnie
Mae
(GNMA)
mortgages,
which
underperformed
the
index,
also
contributed.
Out-of-index
sector
allocations
were
the
largest
detractors.
An
out-of-index
allocation
to
agency
collateralized
mortgage
obligation
(CMOs)
detracted.
Further,
an
underweight
to
30-year
conventional
(Fannie
Mae/Freddie
Mac)
mortgages
detracted.
Out-of-index
allocation
to
asset
backed
securities
(ABS)
also
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
6.45%
2.35%
3.16%
5/6/93
15
International
Emerging
Markets
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
The
Account
invests
in
equity
securities
of
small,
medium,
and
large
market
capitalization
companies.
Overweight
to
Sunac
China,
one
of
the
top
Chinese
property
developers
with
high
exposure
in
tier
1
and
tier
2
cities;
ANTA
Sports
Products,
a
leading
China-based
branded
sportswear
producer
engaging
in
the
designing,
manufacturing,
and
distributing
of
sports
products;
and
Lukoil,
Russia’s
largest
private
oil
and
gas
company,
contributed
significantly. Notable
detractors
from
the
portfolio
include
overweight
to
Larsen
&
Toubro,
India’s
leading
private
sector
engineering
company;
Qudian,
a
leading
on-line
lender
in
China;
and
GAIL
Limited,
the
largest
Indian
natural
gas
company.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
17.60%
4.28%
2.88%
10/24/00
16
LargeCap
Growth
Account
I
Investment
Advisor:
Principal
Global
Investors,
LLC
Sub-Advisors:
Brown
Advisory,
LLC,
and
T.
Rowe
Price
Associates,
Inc.
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
Under
normal
circumstances,
LargeCap
Growth
Account
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.
Brown
outperformed
the
index
due
largely
to
positive
stock
selection
in
the
health
care,
industrials,
and
consumer
staples
sectors.
T.
Rowe
underperformed
the
index
due
to
negative
stock
selection
in
the
information
technology
sector
along
with
an
overweight
to
health
care.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
34.92%
15.32%
15.39%
6/1/94
17
LargeCap
S&P
500
Index
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
LargeCap
S&P
500
Index
Account
seeks
long-term
growth
of
capital.
Under
normal
circumstances,
the
fund
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
equity
securities
of
companies
that
compose
the
S&P
500
Index
at
the
time
of
purchase.
The
index
is
designed
to
represent
U.S.
equities
with
risk/return
characteristics
of
the
large
cap
universe,
which
include
growth
and
value
stocks.
Apple,
Nvidia,
and
Charter
Communications
contributed.
Occidental
Petroleum,
Walgreens
Boots
Alliance,
and
Pfizer
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date
Class
1
Shares
31.10%
11.40%
13.21%
5/3/99
–
Class
2
Shares
30.82%
11.11%
12.93%
5/1/15
5/3/99
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
1
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
18
LargeCap
S&P
500
Managed
Volatility
Index
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Sub-Advisor:
Spectrum
Asset
Management,
Inc.
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
LargeCap
S&P
500
Managed
Volatility
Index
Account
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.
Apple,
Nvidia,
and
Charter
Communications
contributed.
Occidental
Petroleum,
Walgreens
Boots
Alliance,
and
Pfizer
detracted.
Value
of
a
$10,000
Investment*
October
31,
2013
-
December
31,
2019
1-Year
5-Year
Since
Inception
Inception
Date
Class
1
Shares
28.92%
10.54%
11.29%
10/31/13
19
MidCap
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
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
Fair
Isaac
Corp.
contributed
to
results,
reporting
strong
performance
and
increasing
its
full-year
guidance.
Lululemon
Athletica
Inc.
contributed
due
to
strong
revenue
and
profit
growth,
particularly
in
its
online
sales.
Allocation
to
Chipotle
Mexican
Grill
contributed
as
the
company
beat
already
high
expectations
and
raised
guidance
for
2019
due
to
increased
transactions
from
new
customers,
higher
average
checks,
higher
operating
margins,
and
growing
digital
sales. Allocation
to
Cimarex
Energy
Co.
detracted
as
the
company
missed
earnings
due
to
lower
natural
gas
liquid
and
gas
prices
and
investor
concern
about
low
gas
prices,
negative
spot
prices,
and
that
takeaway
capacity
from
the
Permian
Basin
will
not
be
sufficient.
Allocation
to
Tanger
Factory
Outlet
Centers
lagged
due
to
concerns
about
slowing
retail
traffic
and
potential
retailer
bankruptcies
impacting
occupancy
rates. Markel
Corporation
detracted
due
to
higher
than
forecast
catastrophe
losses
in
addition
to
charges
associated
with
the
company’s
CatCo.
unit.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
43.10%
13.49%
16.42%
12/18/87
Class
2
Shares
42.72%
13.20%
16.13%
9/9/09
20
Principal
Capital
Appreciation
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
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.
Fair
Isaac
Corp.
contributed
to
results,
reporting
strong
performance
and
increasing
its
full
year
guidance.
Lam
Research
Corporation,
the
second-best
performing
stock
in
2019
in
the
S&P
500,
benefited
from
an
improving
outlook
for
semiconductors
following
the
recent
correction.
Not
owning
Berkshire
Hathaway
Inc.
Class
B
contributed
to
relative
results.
Royal
Dutch
Shell
Plc
underperformed
as
the
company
missed
earnings
estimates
in
3Q
and
as
the
sentiment
for
energy
companies
worsened
during
the
year.
Biogen
Inc.
detracted
as
investors
reacted
negatively
when
both
phase
3
trials
on
their
Alzheimer's
drug
were
discontinued
in
March.
Church
&
Dwight
Co.
underperformed
as
investors
remained
concerned
about
volume
growth.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
32.49%
11.49%
12.95%
4/28/98
Class
2
Shares
32.10%
11.21%
12.67%
11/6/01
21
Principal
LifeTime
2010
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Active
manager
performance
in
equities
remained
the
largest
driver
of
performance
across
the
series
for
the
one-year
period.
Blue
Chip,
Equity
Income,
MidCap,
MidCap
Value
I,
SmallCap
Growth
I,
SmallCap
Value
II,
and
all
international
equity
investment
options
outperformed
their
respective
indices.
The
core
fixed
income
asset
class
contributed
from
a
style
perspective
as
the
manager
index,
Barclays
U.S.
Aggregate
Bond
Index,
outperformed
the
S&P
U.S.
Aggregate
Bond
Index
due
to
its
lower
exposure
to
treasuries.
Real
Estate
Securities
investment
option
contributed
to
performance
in
the
later-dated
vintages
as
it
outperformed
its
index.
U.S
equity
midcap
investment
options
contributed
positively
as
it
outperformed
its
respective
S&P
index
for
the
year.
The
High
Income
investment
option
underperformed
its
manager
index
for
the
year,
hurting
performance
across
the
series.
While
active
manager
performance
for
the
Overseas
investment
option
contributed,
exposure
to
foreign
value
stocks
produced
negative
style
effect;
which
mitigated
any
positive
active
manager
performance
received.
An
underweight
to
U.S.
equity
and
an
overweight
to
fixed
income
hindered
performance
in
the
near-dated
vintages.
Exposure
to
U.S.
large
value
stocks
produced
a
negative
style
effect
on
a
relative
basis.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
14.10%
4.92%
6.67%
8/30/04
22
Principal
LifeTime
2020
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Active
manager
performance
in
equities
remained
the
largest
driver
of
performance
across
the
series
for
the
one-year
period.
Blue
Chip,
Equity
Income,
MidCap,
MidCap
Value
I,
SmallCap
Growth
I,
SmallCap
Value
II,
and
all
international
equity
investment
options
outperformed
their
respective
indices.
The
core
fixed
income
asset
class
contributed
from
a
style
perspective
as
the
manager
index,
Barclays
U.S.
Aggregate
Bond
Index,
outperformed
the
S&P
U.S.
Aggregate
Bond
Index
due
to
its
lower
exposure
to
treasuries.
Real
Estate
Securities
investment
option
contributed
to
performance
in
the
later-dated
vintages
as
it
outperformed
its
index.
U.S
equity
midcap
investment
options
contributed
positively
as
it
outperformed
its
respective
S&P
index
for
the
year.
The
High
Income
investment
option
underperformed
its
manager
index
for
the
year,
hurting
performance
across
the
series.
While
active
manager
performance
for
the
Overseas
investment
option
contributed,
exposure
to
foreign
value
stocks
produced
negative
style
effect;
which
mitigated
any
positive
active
manager
performance
received.
An
underweight
to
U.S.
equity
and
an
overweight
to
fixed
income
hindered
performance
in
the
near-dated
vintages.
Exposure
to
U.S.
large
value
stocks
produced
a
negative
style
effect
on
a
relative
basis.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
18.12%
6.09%
7.97%
8/30/04
23
Principal
LifeTime
2030
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Active
manager
performance
in
equities
remained
the
largest
driver
of
performance
across
the
series
for
the
one-year
period.
Blue
Chip,
Equity
Income,
MidCap,
MidCap
Value
I,
SmallCap
Growth
I,
SmallCap
Value
II,
and
all
international
equity
investment
options
outperformed
their
respective
indices.
The
core
fixed
income
asset
class
contributed
from
a
style
perspective
as
the
manager
index,
Barclays
U.S.
Aggregate
Bond
Index,
outperformed
the
S&P
U.S.
Aggregate
Bond
Index
due
to
its
lower
exposure
to
treasuries.
Real
Estate
Securities
investment
option
contributed
to
performance
in
the
later-dated
vintages
as
it
outperformed
its
index.
U.S
equity
midcap
investment
options
contributed
positively
as
it
outperformed
its
respective
S&P
index
for
the
year.
The
High
Income
investment
option
underperformed
its
manager
index
for
the
year,
hurting
performance
across
the
series.
While
active
manager
performance
for
the
Overseas
investment
option
contributed,
exposure
to
foreign
value
stocks
produced
negative
style
effect;
which
mitigated
any
positive
active
manager
performance
received.
An
underweight
to
U.S.
equity
and
an
overweight
to
fixed
income
hindered
performance
in
the
near-dated
vintages.
Exposure
to
U.S.
large
value
stocks
produced
a
negative
style
effect
on
a
relative
basis.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
22.01%
7.03%
8.74%
8/30/04
24
Principal
LifeTime
2040
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Active
manager
performance
in
equities
remained
the
largest
driver
of
performance
across
the
series
for
the
one-year
period.
Blue
Chip,
Equity
Income,
MidCap,
MidCap
Value
I,
SmallCap
Growth
I,
SmallCap
Value
II,
and
all
international
equity
investment
options
outperformed
their
respective
indices.
The
core
fixed
income
asset
class
contributed
from
a
style
perspective
as
the
manager
index,
Barclays
U.S.
Aggregate
Bond
Index,
outperformed
the
S&P
U.S.
Aggregate
Bond
Index
due
to
its
lower
exposure
to
treasuries.
Real
Estate
Securities
investment
option
contributed
to
performance
in
the
later-dated
vintages
as
it
outperformed
its
index.
U.S
equity
midcap
investment
options
contributed
positively
as
it
outperformed
its
respective
S&P
index
for
the
year.
The
High
Income
investment
option
underperformed
its
manager
index
for
the
year,
hurting
performance
across
the
series.
While
active
manager
performance
for
the
Overseas
investment
option
contributed,
exposure
to
foreign
value
stocks
produced
negative
style
effect;
which
mitigated
any
positive
active
manager
performance
received.
An
underweight
to
U.S.
equity
and
an
overweight
to
fixed
income
hindered
performance
in
the
near-dated
vintages.
Exposure
to
U.S.
large
value
stocks
produced
a
negative
style
effect
on
a
relative
basis.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
24.74%
7.72%
9.45%
8/30/04
25
Principal
LifeTime
2050
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
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.
Active
manager
performance
in
equities
remained
the
largest
driver
of
performance
across
the
series
for
the
one-year
period.
Blue
Chip,
Equity
Income,
MidCap,
MidCap
Value
I,
SmallCap
Growth
I,
SmallCap
Value
II,
and
all
international
equity
investment
options
outperformed
their
respective
indices.
The
core
fixed
income
asset
class
contributed
from
a
style
perspective
as
the
manager
index,
Barclays
U.S.
Aggregate
Bond
Index,
outperformed
the
S&P
U.S.
Aggregate
Bond
Index
due
to
its
lower
exposure
to
treasuries.
Real
Estate
Securities
investment
option
contributed
to
performance
in
the
later-dated
vintages
as
it
outperformed
its
index.
U.S
equity
midcap
investment
options
contributed
positively
as
it
outperformed
its
respective
S&P
index
for
the
year.
The
High
Income
investment
option
underperformed
its
manager
index
for
the
year,
hurting
performance
across
the
series.
While
active
manager
performance
for
the
Overseas
investment
option
contributed,
exposure
to
foreign
value
stocks
produced
negative
style
effect;
which
mitigated
any
positive
active
manager
performance
received.
An
underweight
to
U.S.
equity
and
an
overweight
to
fixed
income
hindered
performance
in
the
near-dated
vintages.
Exposure
to
U.S.
large
value
stocks
produced
a
negative
style
effect
on
a
relative
basis.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
26.39%
8.14%
9.77%
8/30/04
26
Principal
LifeTime
2060
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Active
manager
performance
in
equities
remained
the
largest
driver
of
performance
across
the
series
for
the
one-year
period.
Blue
Chip,
Equity
Income,
MidCap,
MidCap
Value
I,
SmallCap
Growth
I,
SmallCap
Value
II,
and
all
international
equity
investment
options
outperformed
their
respective
indices.
The
core
fixed
income
asset
class
contributed
from
a
style
perspective
as
the
manager
index,
Barclays
U.S.
Aggregate
Bond
Index,
outperformed
the
S&P
U.S.
Aggregate
Bond
Index
due
to
its
lower
exposure
to
treasuries.
Real
Estate
Securities
investment
option
contributed
to
performance
in
the
later-dated
vintages
as
it
outperformed
its
index.
U.S
equity
midcap
investment
options
contributed
positively
as
it
outperformed
its
respective
S&P
index
for
the
year.
The
High
Income
investment
option
underperformed
its
manager
index
for
the
year,
hurting
performance
across
the
series.
While
active
manager
performance
for
the
Overseas
investment
option
contributed,
exposure
to
foreign
value
stocks
produced
negative
style
effect;
which
mitigated
any
positive
active
manager
performance
received.
An
underweight
to
U.S.
equity
and
an
overweight
to
fixed
income
hindered
performance
in
the
near-dated
vintages.
Exposure
to
U.S.
large
value
stocks
produced
a
negative
style
effect
on
a
relative
basis.
Value
of
a
$10,000
Investment*
May
1,
2013
-
December
31,
2019
1-Year
5-Year
Since
Inception
Inception
Date
Class
1
Shares
27.24%
8.22%
9.35%
5/1/13
27
Principal
LifeTime
Strategic
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Active
manager
performance
in
equities
remained
the
largest
driver
of
performance
across
the
series
for
the
one-year
period.
Blue
Chip,
Equity
Income,
MidCap,
MidCap
Value
I,
SmallCap
Growth
I,
SmallCap
Value
II,
and
all
international
equity
investment
options
outperformed
their
respective
indices.
The
core
fixed
income
asset
class
contributed
from
a
style
perspective
as
the
manager
index,
Barclays
U.S.
Aggregate
Bond
Index,
outperformed
the
S&P
U.S.
Aggregate
Bond
Index
due
to
its
lower
exposure
to
treasuries.
Real
Estate
Securities
investment
option
contributed
to
performance
in
the
later-dated
vintages
as
it
outperformed
its
index.
U.S
equity
midcap
investment
options
contributed
positively
as
it
outperformed
its
respective
S&P
index
for
the
year.
The
High
Income
investment
option
underperformed
its
manager
index
for
the
year,
hurting
performance
across
the
series.
While
active
manager
performance
for
the
Overseas
investment
option
contributed,
exposure
to
foreign
value
stocks
produced
negative
style
effect;
which
mitigated
any
positive
active
manager
performance
received.
An
underweight
to
U.S.
equity
and
an
overweight
to
fixed
income
hindered
performance
in
the
near-dated
vintages.
Exposure
to
U.S.
large
value
stocks
produced
a
negative
style
effect
on
a
relative
basis.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
12.46%
4.25%
5.50%
8/30/04
28
Real
Estate
Securities
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Sub-Advisor:
Principal
Real
Estate
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
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.
An
overweight
position
to
Invitation
Homes
contributed
to
relative
performance
as
the
company
benefitted
from
positive
quarterly
results
through
the
year
and
progress
towards
the
removal
of
the
Blackstone
equity
overhang.
An
overweight
position
to
Prologis
contributed
to
relative
performance
as
the
company
benefitted
from
strong
operating
results,
outsized
returns
in
their
development
portfolio,
and
several
large
portfolio
trades
that
were
viewed
as
positive
pricing
comps
for
Prologis’
portfolio.
An
overweight
position
to
Equinix
contributed
to
relative
performance,
as
the
company’s
benefitted
from
positive
investor
sentiment
surrounding
the
data
center
sector.
An
overweight
position
to
Regency
Centers
(REG)
detracted
from
relative
performance
as
the
lower-quality
peers
posted
better
organic
growth
during
the
year,
which
caused
rotation
out
of
REG
into
other
names.
Part
of
the
weakness
was
driven
by
unique
tenant
issues
during
2019,
impacted
growth
outlook
and
drove
underperformance
relative
to
peers.
An
overweight
position
to
Taubman
Centers
detracted
from
relative
performance,
driven
by
an
elevated
store
closing
environment
and
fear
that
trade
war
escalations
could
put
further
pressure
on
retailers
via
new
tariffs.
Not
holding
Mid-America
Apartment
Communities,
Inc
detracted
from
relative
performance
as
easy
comps
and
low-bar
initial
guidance
helped
the
company
to
deliver
beat
and
raise
operation
results
through
the
year.
Meanwhile,
the
below
expectation
results
from
the
coastal
peers
towards
the
end
of
year
also
helped
the
company’s
relative
performance.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
31.26%
8.65%
12.88%
5/1/98
Class
2
Shares
30.94%
8.38%
12.59%
1/8/07
29
SAM
Balanced
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Strategic
allocation
to
high
yield
bonds,
which
outperformed
core
fixed
income
in
the
risk-on
environment,
was
the
largest
contributor.
Security
selection
in
international
developed
market
equities
aided
performance.
Strategic
underweight
to
Government
bonds,
which
underperformed
core
fixed
income,
contributed.
Security
selection
in
investment-grade
corporate
bonds
was
the
largest
detractor.
Strategic
allocation
to
international
emerging
market
equities,
which
underperformed
their
U.S.
and
developed
market
counterparts,
hindered
performance.
Strategic
overweight
to
multi-alternatives,
which
posted
a
positive
return
but
lagged
other
alternative
and
specialty
asset
classes
and
the
broad
equity
market,
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
20.01%
6.82%
8.51%
6/3/97
Class
2
Shares
19.74%
6.57%
8.24%
11/6/01
30
SAM
Conservative
Balanced
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Strategic
allocation
to
high
yield
bonds,
which
outperformed
core
fixed
income
in
the
risk-on
environment,
was
the
largest
contributor.
Strategic
underweight
to
Government
bonds,
which
underperformed
core
fixed
income,
aided
performance.
Strategic
overweight
to
preferred
capital,
which
was
the
top
performing
fixed
income
asset
classes,
contributed.
Security
selection
in
investment-grade
corporate
bonds
was
the
largest
detractor.
Strategic
allocation
to
international
emerging
market
equities,
which
underperformed
their
U.S.
and
developed
market
counterparts,
hindered
performance.
Strategic
overweight
to
multi-alternatives,
which
posted
a
positive
return
but
lagged
other
alternative
and
specialty
asset
classes
and
the
broad
equity
market,
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
15.88%
5.64%
7.08%
4/23/98
Class
2
Shares
15.66%
5.39%
6.83%
11/6/01
31
SAM
Conservative
Growth
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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
mid-cap
equities
was
the
largest
contributor.
Security
selection
in
international
developed
market
equities
aided
performance.
Slight
tactical
overweight
to
equities,
which
outperformed
fixed
income
and
alternatives
and
specialty
in
the
risk-on
environment,
contributed.
Strategic
allocation
to
international
emerging
market
equities,
which
underperformed
their
U.S.
and
developed
market
counterparts,
was
the
largest
detractor.
Strategic
overweight
to
multi-alternatives,
which
posted
a
positive
return
but
lagged
other
alternative
and
specialty
asset
classes
and
the
broad
equity
market,
hindered
performance.
Security
selection
in
large-cap
value
equities
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
24.06%
7.99%
9.78%
6/3/97
Class
2
Shares
23.68%
7.72%
9.51%
11/6/01
32
SAM
Flexible
Income
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Strategic
allocation
to
high
yield
bonds,
which
outperformed
core
fixed
income
in
the
risk-on
environment,
was
the
largest
contributor.
Strategic
underweight
to
Government
bonds,
which
underperformed
core
fixed
income,
aided
performance.
Strategic
overweight
to
preferred
capital,
which
was
the
top
performing
fixed
income
asset
classes,
contributed.
Security
selection
in
investment-grade
corporate
bonds
was
the
largest
detractor.
Security
selection
in
TIPS
hindered
performance.
Strategic
and
tactical
overweight
to
TIPS,
which
posted
positive
returns
but
underperformed
core
fixed
income,
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
13.25%
4.92%
6.27%
9/9/97
Class
2
Shares
12.97%
4.66%
6.00%
11/6/01
33
SAM
Strategic
Growth
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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
mid-cap
equities
was
the
largest
contributor.
Security
selection
in
international
developed
market
equities
aided
performance.
Security
selection
in
international
emerging
market
equities
contributed.
Strategic
allocation
to
International
emerging
market
equities,
which
underperformed
their
U.S.
and
developed
market
counterparts,
was
the
largest
detractor.
Security
selection
in
large-cap
value
equities
hindered
performance.
Strategic
underweight
to
large-cap
growth
equities,
which
outperformed
their
value
counterparts,
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
27.44%
8.25%
10.51%
6/3/97
Class
2
Shares
27.13%
7.99%
10.23%
11/6/01
34
Short-Term
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
Short-Term
Income
Account
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.
Issuer
selection
in
banking
contributed.
Underweight
to
supranational
and
government
guarantee
contributed.
Issuer
selection
in
consumer
non-cyclical
and
energy
contributed.
Issuer
selection
in
owned
no
guarantee
detracted.
Out-of-index
allocation
to
agency
commercial
mortgage-backed
securities,
asset-backed
securities
(ABS),
auto
backed
ABS,
and
treasurys
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
4.70%
2.18%
2.43%
1/12/94
35
SmallCap
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
The
investment
seeks
long-term
growth
of
capital.
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
purchase.
It
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.
Carvana,
Nevro,
Entegris,
CACI
International,
and
Eldorado
Resorts
contributed.
PlayAGS,
Nesco
Holdings,
Caleres,
McDermott
International
and
Mammoth
Energy
Services
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date
Class
1
Shares
27.40%
8.49%
12.58%
5/1/98
–
Class
2
Shares
27.12%
8.22%
12.31%
2/17/15
5/1/98
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
1
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
36
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Bond
Market
Index
Account
Core
Plus
Bond
Account
Diversified
Balanced
Account
Investment
in
securities--at
cost
..........................................................
$
2,439,417
$
251,067
$
7
Investment
in
affiliated
securities--at
cost
................................................
$
81,892
$
11,648
$
761,546
Assets
Investment
in
securities--at
value
..........................................................
$
2,524,165
(a)
$
257,154
(a)
$
2
Investment
in
affiliated
securities--at
value
.................................................
81,892
11,648
1,029,217
Cash
.........................................................................................
–
7
–
Deposits
with
counterparty
..................................................................
–
9
–
Receivables:
Dividends
and
interest
.................................................................
14,678
1,733
–
Fund
shares
sold
.......................................................................
26
1,459
3
Investment
securities
sold
.............................................................
12,006
59
1,603
Variation
margin
on
futures
...........................................................
–
1
–
Total
Assets
2,632,767
272,070
1,030,825
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
302
98
44
Accrued
distribution
fees
....................................................................
–
–
209
Accrued
directors'
expenses
.................................................................
9
–
3
Accrued
other
expenses
.....................................................................
16
7
5
Cash
overdraft
...............................................................................
3
–
–
Payables:
Fund
shares
redeemed
.................................................................
7,595
153
1,606
Investment
securities
purchased
......................................................
75,001
17,801
–
Variation
margin
on
futures
...........................................................
–
14
–
Collateral
obligation
on
securities
loaned,
at
value
.........................................
10,381
1,123
–
Total
Liabilities
93,307
19,196
1,867
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
2,539,460
$
252,874
$
1,028,958
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
2,411,321
$
241,689
$
707,227
Total
distributable
earnings
(accumulated
loss)
.............................................
128,139
11,185
321,731
Total
Net
Assets
$
2,539,460
$
252,874
$
1,028,958
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
300,000
400,000
450,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
2,539,460
$
252,874
$
40,694
Shares
issued
and
outstanding
........................................................
236,854
21,994
2,463
Net
Asset
Value
per
share
.............................................................
$
10.72
$
11.50
$
16.52
Class
2
:
Net
Assets
..........................................................................
N/A
N/A
$
988,264
Shares
issued
and
outstanding
........................................................
59,723
Net
Asset
Value
per
share
.............................................................
$
16.55
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
37
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Diversified
Balanced
Managed
Volatility
Account
Diversified
Balanced
Volatility
Control
Account
Diversified
Growth
Account
Investment
in
securities--at
cost
..........................................................
$
–
$
26,987
$
–
Investment
in
affiliated
securities--at
cost
................................................
$
154,365
$
112,491
$
2,753,635
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
29,208
$
–
Investment
in
affiliated
securities--at
value
.................................................
176,286
116,580
3,773,120
Receivables:
Fund
shares
sold
.......................................................................
33
–
460
Investment
securities
sold
.............................................................
41
495
8,606
Total
Assets
176,360
146,283
3,782,186
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
8
15
160
Accrued
distribution
fees
....................................................................
37
30
797
Accrued
directors'
expenses
.................................................................
1
1
12
Accrued
other
expenses
.....................................................................
5
6
6
Payables:
Fund
shares
redeemed
.................................................................
74
619
9,066
Investment
securities
purchased
......................................................
–
241
–
Total
Liabilities
125
912
10,041
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
176,235
$
145,371
$
3,772,145
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
144,534
$
134,769
$
2,562,772
Total
distributable
earnings
(accumulated
loss)
.............................................
31,701
10,602
1,209,373
Total
Net
Assets
$
176,235
$
145,371
$
3,772,145
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
300,000
Net
Asset
Value
Per
Share:
Class
2
:
Net
Assets
..........................................................................
$
176,235
$
145,371
$
3,772,145
Shares
issued
and
outstanding
........................................................
13,653
12,411
201,868
Net
Asset
Value
per
share
.............................................................
$
12.91
$
11.71
$
18.69
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
38
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Diversified
Growth
Managed
Volatility
Account
Diversified
Growth
Volatility
Control
Account
Diversified
Income
Account
Investment
in
securities--at
cost
..........................................................
$
–
$
141,907
$
–
Investment
in
affiliated
securities--at
cost
................................................
$
301,424
$
586,394
$
241,072
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
153,337
$
–
Investment
in
affiliated
securities--at
value
.................................................
353,783
613,862
279,966
Receivables:
Dividends
and
interest
.................................................................
–
1
–
Investment
securities
sold
.............................................................
1,120
1,963
3,385
Total
Assets
354,903
769,163
283,351
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
15
76
12
Accrued
distribution
fees
....................................................................
75
160
60
Accrued
directors'
expenses
.................................................................
1
3
1
Accrued
other
expenses
.....................................................................
5
6
5
Payables:
Fund
shares
redeemed
.................................................................
1,120
2,454
3,385
Investment
securities
purchased
......................................................
–
1,047
–
Total
Liabilities
1,216
3,746
3,463
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
353,687
$
765,417
$
279,888
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
278,969
$
699,994
$
230,307
Total
distributable
earnings
(accumulated
loss)
.............................................
74,718
65,423
49,581
Total
Net
Assets
$
353,687
$
765,417
$
279,888
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
50,000
Net
Asset
Value
Per
Share:
Class
2
:
Net
Assets
..........................................................................
$
353,687
$
765,417
$
279,888
Shares
issued
and
outstanding
........................................................
26,141
63,775
20,250
Net
Asset
Value
per
share
.............................................................
$
13.53
$
12.00
$
13.82
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
39
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Diversified
International
Account
Equity
Income
Account
Government
&
High
Quality
Bond
Account
Investment
in
securities--at
cost
..........................................................
$
213,306
$
434,328
$
237,105
Investment
in
affiliated
securities--at
cost
................................................
$
2,370
$
14,848
$
6,646
Assets
Investment
in
securities--at
value
..........................................................
$
263,791
$
757,255
(a)
$
238,212
(a)
Investment
in
affiliated
securities--at
value
.................................................
2,370
14,848
6,646
Cash
.........................................................................................
–
–
6
Deposits
with
counterparty
..................................................................
–
–
149
Receivables:
Dividends
and
interest
.................................................................
792
2,084
906
Fund
shares
sold
.......................................................................
65
311
542
Investment
securities
sold
.............................................................
409
229
–
Variation
margin
on
futures
...........................................................
–
–
29
Total
Assets
267,427
774,727
246,490
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
189
302
102
Accrued
distribution
fees
....................................................................
–
7
–
Accrued
directors'
expenses
.................................................................
1
4
1
Accrued
professional
fees
...................................................................
23
–
–
Accrued
other
expenses
.....................................................................
33
25
7
Cash
overdraft
...............................................................................
6
–
–
Payables:
Deferred
foreign
tax
...................................................................
10
–
–
Fund
shares
redeemed
.................................................................
314
1,195
215
Investment
securities
purchased
......................................................
83
–
2,319
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
9
2,514
Total
Liabilities
659
1,542
5,158
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
266,768
$
773,185
$
241,332
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
212,686
$
411,068
$
243,292
Total
distributable
earnings
(accumulated
loss)
.............................................
54,082
362,117
(
1,960
)
Total
Net
Assets
$
266,768
$
773,185
$
241,332
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
300,000
200,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
266,768
$
741,311
$
241,332
Shares
issued
and
outstanding
........................................................
16,984
26,295
24,602
Net
Asset
Value
per
share
.............................................................
$
15.71
$
28.19
$
9.81
Class
2
:
Net
Assets
..........................................................................
N/A
$
31,874
N/A
Shares
issued
and
outstanding
........................................................
1,140
Net
Asset
Value
per
share
.............................................................
$
27.93
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
40
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
International
Emerging
Markets
Account
LargeCap
Growth
Account
I
LargeCap
S&P
500
Index
Account
Investment
in
securities--at
cost
..........................................................
$
74,843
$
325,886
$
1,533,033
Investment
in
affiliated
securities--at
cost
................................................
$
637
$
5,462
$
34,952
Foreign
currency--at
cost
..................................................................
$
94
$
–
$
–
Assets
Investment
in
securities--at
value
..........................................................
$
88,609
$
494,450
(a)
$
2,677,718
Investment
in
affiliated
securities--at
value
.................................................
637
5,535
34,952
Foreign
currency--at
value
..................................................................
94
–
–
Cash
.........................................................................................
–
–
13
Deposits
with
counterparty
..................................................................
–
120
–
Receivables:
Dividends
and
interest
.................................................................
337
161
2,769
Expense
reimbursement
from
Manager
...............................................
19
11
–
Fund
shares
sold
.......................................................................
105
446
458
Investment
securities
sold
.............................................................
98
3,482
–
Variation
margin
on
futures
...........................................................
–
8
85
Total
Assets
89,899
504,213
2,715,995
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
93
296
570
Accrued
distribution
fees
....................................................................
–
–
3
Accrued
custodian
fees
......................................................................
20
–
–
Accrued
directors'
expenses
.................................................................
–
1
9
Accrued
other
expenses
.....................................................................
6
11
15
Cash
overdraft
...............................................................................
1
1
–
Payables:
Fund
shares
redeemed
.................................................................
50
192
6,220
Investment
securities
purchased
......................................................
–
36
–
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
1,023
–
Total
Liabilities
170
1,560
6,817
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
89,729
$
502,653
$
2,709,178
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
74,650
$
303,520
$
1,365,569
Total
distributable
earnings
(accumulated
loss)
.............................................
15,079
199,133
1,343,609
Total
Net
Assets
$
89,729
$
502,653
$
2,709,178
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
300,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
89,729
$
502,653
$
2,693,344
Shares
issued
and
outstanding
........................................................
5,237
13,354
133,428
Net
Asset
Value
per
share
.............................................................
$
17.13
$
37.64
$
20.19
Class
2
:
Net
Assets
..........................................................................
N/A
N/A
$
15,834
Shares
issued
and
outstanding
........................................................
793
Net
Asset
Value
per
share
.............................................................
$
19.97
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
41
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
LargeCap
S&P
500
Managed
Volatility
Index
Account
MidCap
Account
Principal
Capital
Appreciation
Account
Investment
in
securities--at
cost
..........................................................
$
136,550
$
377,772
$
82,796
Investment
in
affiliated
securities--at
cost
................................................
$
12,955
$
252
$
2,945
Assets
Investment
in
securities--at
value
..........................................................
$
205,538
(a)
$
608,173
(a)
$
154,351
Investment
in
affiliated
securities--at
value
.................................................
12,955
252
2,945
Cash
.........................................................................................
1
192
–
Receivables:
Dividends
and
interest
.................................................................
227
1,742
210
Fund
shares
sold
.......................................................................
–
27
6
Investment
securities
sold
.............................................................
–
2,275
82
Variation
margin
on
futures
...........................................................
7
–
–
Total
Assets
218,728
612,661
157,594
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
84
274
83
Accrued
distribution
fees
....................................................................
–
4
3
Accrued
directors'
expenses
.................................................................
1
3
1
Accrued
other
expenses
.....................................................................
10
6
7
Payables:
Fund
shares
redeemed
.................................................................
519
1,073
737
Investment
securities
purchased
......................................................
–
789
–
Options
and
swaptions
contracts
written
(premiums
received
$
411
,
$
0
and
$
0
)
.....
295
–
–
Collateral
obligation
on
securities
loaned,
at
value
.........................................
40
1,850
–
Total
Liabilities
949
3,999
831
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
217,779
$
608,662
$
156,763
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
149,981
$
320,310
$
76,951
Total
distributable
earnings
(accumulated
loss)
.............................................
67,798
288,352
79,812
Total
Net
Assets
$
217,779
$
608,662
$
156,763
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
100,000
105,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
217,779
$
587,854
$
143,227
Shares
issued
and
outstanding
........................................................
14,459
9,808
4,662
Net
Asset
Value
per
share
.............................................................
$
15.06
$
59.93
$
30.72
Class
2
:
Net
Assets
..........................................................................
N/A
$
20,808
$
13,536
Shares
issued
and
outstanding
........................................................
350
446
Net
Asset
Value
per
share
.............................................................
$
59.42
$
30.32
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
42
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
LifeTime
2010
Account
Principal
LifeTime
2020
Account
Principal
LifeTime
2030
Account
Investment
in
affiliated
securities--at
cost
................................................
$
29,042
$
170,244
$
162,909
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
31,505
$
190,480
$
182,178
Receivables:
Dividends
and
interest
.................................................................
28
127
73
Fund
shares
sold
.......................................................................
1
91
225
Investment
securities
sold
.............................................................
17
401
–
Total
Assets
31,551
191,099
182,476
Liabilities
Accrued
directors'
expenses
.................................................................
–
–
1
Accrued
professional
fees
...................................................................
5
–
–
Accrued
other
expenses
.....................................................................
–
5
5
Payables:
Fund
shares
redeemed
.................................................................
18
493
67
Investment
securities
purchased
......................................................
29
126
231
Total
Liabilities
52
624
304
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
31,499
$
190,475
$
182,172
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
27,673
$
162,552
$
155,689
Total
distributable
earnings
(accumulated
loss)
.............................................
3,826
27,923
26,483
Total
Net
Assets
$
31,499
$
190,475
$
182,172
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
100,000
200,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
31,499
$
190,475
$
182,172
Shares
issued
and
outstanding
........................................................
2,470
13,704
13,883
Net
Asset
Value
per
share
.............................................................
$
12.75
$
13.90
$
13.12
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
43
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
LifeTime
2040
Account
Principal
LifeTime
2050
Account
Principal
LifeTime
2060
Account
Investment
in
affiliated
securities--at
cost
................................................
$
76,020
$
33,732
$
7,425
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
85,410
$
38,887
$
8,136
Receivables:
Dividends
and
interest
.................................................................
22
5
–
Expense
reimbursement
from
Manager
...............................................
–
–
1
Fund
shares
sold
.......................................................................
309
76
10
Total
Assets
85,741
38,968
8,147
Liabilities
Accrued
professional
fees
...................................................................
–
5
5
Accrued
other
expenses
.....................................................................
6
–
–
Payables:
Fund
shares
redeemed
.................................................................
1
2
6
Investment
securities
purchased
......................................................
329
80
5
Total
Liabilities
336
87
16
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
85,405
$
38,881
$
8,131
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
72,463
$
32,087
$
7,083
Total
distributable
earnings
(accumulated
loss)
.............................................
12,942
6,794
1,048
Total
Net
Assets
$
85,405
$
38,881
$
8,131
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
100,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
85,405
$
38,881
$
8,131
Shares
issued
and
outstanding
........................................................
5,266
2,495
554
Net
Asset
Value
per
share
.............................................................
$
16.22
$
15.59
$
14.68
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
44
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
LifeTime
Strategic
Income
Account
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
Investment
in
securities--at
cost
..........................................................
$
–
$
116,094
$
–
Investment
in
affiliated
securities--at
cost
................................................
$
24,574
$
1,130
$
563,396
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
160,191
$
–
Investment
in
affiliated
securities--at
value
.................................................
26,285
1,130
698,192
Receivables:
Dividends
and
interest
.................................................................
27
618
1,179
Expense
reimbursement
from
Manager
...............................................
–
3
–
Fund
shares
sold
.......................................................................
26
58
230
Investment
securities
sold
.............................................................
–
261
412
Total
Assets
26,338
162,261
700,013
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
–
120
135
Accrued
distribution
fees
....................................................................
–
1
26
Accrued
directors'
expenses
.................................................................
–
1
2
Accrued
professional
fees
...................................................................
6
–
–
Accrued
other
expenses
.....................................................................
–
6
6
Payables:
Fund
shares
redeemed
.................................................................
–
95
643
Investment
securities
purchased
......................................................
53
108
371
Total
Liabilities
59
331
1,183
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
26,279
$
161,930
$
698,830
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
23,898
$
107,168
$
531,464
Total
distributable
earnings
(accumulated
loss)
.............................................
2,381
54,762
167,366
Total
Net
Assets
$
26,279
$
161,930
$
698,830
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
100,000
300,000
300,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
26,279
$
155,569
$
574,960
Shares
issued
and
outstanding
........................................................
2,204
7,235
36,683
Net
Asset
Value
per
share
.............................................................
$
11.92
$
21.50
$
15.67
Class
2
:
Net
Assets
..........................................................................
N/A
$
6,361
$
123,870
Shares
issued
and
outstanding
........................................................
295
8,004
Net
Asset
Value
per
share
.............................................................
$
21.56
$
15.48
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
45
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Investment
in
affiliated
securities--at
cost
................................................
$
165,152
$
286,661
$
171,736
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
189,384
$
356,534
$
188,444
Receivables:
Dividends
and
interest
.................................................................
291
491
399
Fund
shares
sold
.......................................................................
2
374
76
Investment
securities
sold
.............................................................
372
–
–
Total
Assets
190,049
357,399
188,919
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
37
69
37
Accrued
distribution
fees
....................................................................
5
30
6
Accrued
directors'
expenses
.................................................................
1
1
1
Accrued
other
expenses
.....................................................................
6
6
5
Payables:
Fund
shares
redeemed
.................................................................
374
80
11
Investment
securities
purchased
......................................................
151
366
274
Total
Liabilities
574
552
334
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
189,475
$
356,847
$
188,585
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
158,977
$
276,452
$
164,689
Total
distributable
earnings
(accumulated
loss)
.............................................
30,498
80,395
23,896
Total
Net
Assets
$
189,475
$
356,847
$
188,585
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
164,095
$
213,346
$
157,922
Shares
issued
and
outstanding
........................................................
13,458
10,700
12,553
Net
Asset
Value
per
share
.............................................................
$
12.19
$
19.94
$
12.58
Class
2
:
Net
Assets
..........................................................................
$
25,380
$
143,501
$
30,663
Shares
issued
and
outstanding
........................................................
2,110
7,309
2,464
Net
Asset
Value
per
share
.............................................................
$
12.03
$
19.63
$
12.44
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
46
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
SmallCap
Account
Investment
in
securities--at
cost
..........................................................
$
–
$
123,241
$
164,975
Investment
in
affiliated
securities--at
cost
................................................
$
264,331
$
4,444
$
10,018
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
124,846
(a)
$
190,538
(a)
Investment
in
affiliated
securities--at
value
.................................................
315,191
4,444
10,018
Receivables:
Dividends
and
interest
.................................................................
320
609
281
Expense
reimbursement
from
Manager
...............................................
–
1
–
Fund
shares
sold
.......................................................................
11
1,339
45
Investment
securities
sold
.............................................................
23
–
–
Total
Assets
315,545
131,239
200,882
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
60
55
133
Accrued
distribution
fees
....................................................................
31
–
1
Accrued
directors'
expenses
.................................................................
1
–
1
Accrued
other
expenses
.....................................................................
6
8
7
Payables:
Fund
shares
redeemed
.................................................................
34
15
348
Investment
securities
purchased
......................................................
–
–
3
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
309
9,126
Total
Liabilities
132
387
9,619
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
315,413
$
130,852
$
191,263
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
253,422
$
126,749
$
152,854
Total
distributable
earnings
(accumulated
loss)
.............................................
61,991
4,103
38,409
Total
Net
Assets
$
315,413
$
130,852
$
191,263
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
400,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
169,489
$
130,852
$
184,434
Shares
issued
and
outstanding
........................................................
7,759
50,963
12,031
Net
Asset
Value
per
share
.............................................................
$
21.85
$
2.57
$
15.33
Class
2
:
Net
Assets
..........................................................................
$
145,924
N/A
$
6,829
Shares
issued
and
outstanding
........................................................
6,775
447
Net
Asset
Value
per
share
.............................................................
$
21.53
$
15.26
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
47
See
accompanying
notes.
Amounts
in
thousands
Bond
Market
Index
Account
Core
Plus
Bond
Account
(a)
Diversified
Balanced
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
2,336
$
269
$
23,431
Dividends
..................................................................................
422
155
–
Interest
.....................................................................................
64,301
9,701
–
Securities
lending
-
net
....................................................................
11
3
–
Total
Income
67,070
10,128
23,431
Expenses:
Management
and
investment
advisory
fees
...............................................
4,713
1,317
517
Distribution
fees
-
Class
2
.................................................................
N/A
1
2,485
Chief
compliance
officer
expenses
........................................................
3
–
1
Custodian
fees
.............................................................................
55
21
–
Directors'
expenses
........................................................................
51
8
22
Professional fees
..........................................................................
11
14
6
Shareholder
meeting
expense
............................................................
2
11
7
Other
expenses
............................................................................
1
–
1
Total
Gross
Expenses
4,836
1,372
3,039
Less:
Reimbursement
from
Manager
.....................................................
1,179
–
–
Total
Net
Expenses
3,657
1,372
3,039
Net
Investment
Income
(Loss)
63,413
8,756
20,392
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts,
short
sales
and
swap
agreements
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
15,266
4,636
23
Investment
transactions
in
affiliated
securities
............................................
–
–
21,406
Futures
contracts
..........................................................................
–
616
–
Capital
gain
distribution
received
from
affiliated
securities
..............................
–
–
20,073
Short
sales
.................................................................................
(
117
)
–
–
Swap
agreements
..........................................................................
–
(
768
)
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
120,931
15,737
(
1
)
Investments
in
affiliated
securities
........................................................
–
–
110,316
Futures
contracts
..........................................................................
–
(
381
)
–
Short
sales
.................................................................................
50
–
–
Swap
agreements
..........................................................................
–
(
207
)
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts,
short
sales
and
swap
agreements
136,130
19,633
151,817
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
199,543
$
28,389
$
172,209
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
48
See
accompanying
notes.
Amounts
in
thousands
Diversified
Balanced
Managed
Volatility
Account
Diversified
Balanced
Volatility
Control
Account
Diversified
Growth
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
3,789
$
2,414
$
81,198
Dividends
..................................................................................
–
481
–
Interest
.....................................................................................
–
17
–
Total
Income
3,789
2,912
81,198
Expenses:
Management
and
investment
advisory
fees
...............................................
86
122
1,853
Distribution
fees
-
Class
2
.................................................................
430
255
9,265
Chief
compliance
officer
expenses
........................................................
–
–
5
Custodian
fees
.............................................................................
–
1
–
Directors'
expenses
........................................................................
6
5
74
Professional fees
..........................................................................
6
7
6
Shareholder
meeting
expense
............................................................
2
1
12
Other
expenses
............................................................................
–
–
3
Total
Expenses
530
391
11,218
Net
Investment
Income
(Loss)
3,259
2,521
69,980
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
1,039
–
Investment
transactions
in
affiliated
securities
............................................
1,633
18
47,199
Futures
contracts
..........................................................................
–
(
256
)
–
Capital
gain
distribution
received
from
affiliated
securities
..............................
4,914
1,415
91,948
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
2,221
–
Investments
in
affiliated
securities
........................................................
17,624
7,152
495,618
Futures
contracts
..........................................................................
–
48
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
24,171
11,637
634,765
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
27,430
$
14,158
$
704,745
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
49
See
accompanying
notes.
Amounts
in
thousands
Diversified
Growth
Managed
Volatility
Account
Diversified
Growth
Volatility
Control
Account
Diversified
Income
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
7,305
$
12,460
$
6,529
Dividends
..................................................................................
–
2,609
–
Interest
.....................................................................................
–
106
–
Total
Income
7,305
15,175
6,529
Expenses:
Management
and
investment
advisory
fees
...............................................
174
675
132
Distribution
fees
-
Class
2
.................................................................
868
1,406
661
Chief
compliance
officer
expenses
........................................................
–
1
–
Custodian
fees
.............................................................................
–
1
–
Directors'
expenses
........................................................................
9
14
8
Professional fees
..........................................................................
6
9
6
Shareholder
meeting
expense
............................................................
2
2
2
Other
expenses
............................................................................
–
2
–
Total
Expenses
1,059
2,110
809
Net
Investment
Income
(Loss)
6,246
13,065
5,720
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
5,207
–
Investment
transactions
in
affiliated
securities
............................................
3,497
191
1,175
Futures
contracts
..........................................................................
–
(
4,476
)
–
Capital
gain
distribution
received
from
affiliated
securities
..............................
12,675
11,107
3,919
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
11,429
–
Investments
in
affiliated
securities
........................................................
40,824
51,438
26,128
Futures
contracts
..........................................................................
–
1,487
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
56,996
76,383
31,222
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
63,242
$
89,448
$
36,942
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
50
See
accompanying
notes.
Amounts
in
thousands
Diversified
International
Account
(a)
Equity
Income
Account
Government
&
High
Quality
Bond
Account
(a)
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
35
$
242
$
93
Dividends
..................................................................................
7,780
19,426
–
Withholding
tax
...........................................................................
(
725
)
(
485
)
–
Interest
.....................................................................................
–
–
6,294
Securities
lending
-
net
....................................................................
11
14
1
Total
Income
7,101
19,197
6,388
Expenses:
Management
and
investment
advisory
fees
...............................................
2,158
3,411
1,149
Distribution
fees
-
Class
2
.................................................................
3
71
3
Chief
compliance
officer
expenses
........................................................
–
1
–
Custodian
fees
.............................................................................
123
19
5
Directors'
expenses
........................................................................
7
18
7
Professional fees
..........................................................................
50
5
11
Shareholder
meeting
expense
............................................................
16
–
10
Other
expenses
............................................................................
1
1
–
Total
Expenses
2,358
3,526
1,185
Net
Investment
Income
(Loss)
4,743
15,671
5,203
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
561
25,250
176
Foreign
currency
transactions
.............................................................
(
140
)
–
–
Futures
contracts
..........................................................................
–
–
271
Change
in
unrealized
appreciation/depreciation
of:
Investments
(net
of
foreign
taxes
of
$
10
,
$
0
and
$
0
,
respectively)
.......................
46,443
143,189
8,239
Futures
contracts
..........................................................................
–
–
185
Translation
of
assets
and
liabilities
in
foreign
currencies
.................................
2
–
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
46,866
168,439
8,871
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
51,609
$
184,110
$
14,074
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
51
See
accompanying
notes.
Amounts
in
thousands
International
Emerging
Markets
Account
(a)
LargeCap
Growth
Account
I
(a)
LargeCap
S&P
500
Index
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
24
$
152
$
693
Dividends
..................................................................................
3,446
2,932
52,169
Withholding
tax
...........................................................................
(
278
)
(
19
)
–
Interest
.....................................................................................
–
2
11
Securities
lending
-
net
....................................................................
2
19
8
Total
Income
3,194
3,086
52,881
Expenses:
Management
and
investment
advisory
fees
...............................................
1,094
2,999
6,429
Distribution
fees
-
Class
2
.................................................................
2
5
27
Chief
compliance
officer
expenses
........................................................
–
–
3
Custodian
fees
.............................................................................
84
25
13
Directors'
expenses
........................................................................
4
11
52
Professional fees
..........................................................................
43
10
7
Shareholder
meeting
expense
............................................................
9
18
10
Other
expenses
............................................................................
–
–
31
Total
Gross
Expenses
1,236
3,068
6,572
Less:
Reimbursement
from
Manager
.....................................................
131
67
–
Less:
Reimbursement
from
Manager
-
Class
1
...........................................
52
41
–
Total
Net
Expenses
1,053
2,960
6,572
Net
Investment
Income
(Loss)
2,141
126
46,309
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
23
36,888
193,053
Foreign
currency
transactions
.............................................................
(
181
)
–
–
Futures
contracts
..........................................................................
–
461
9,674
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
12,104
79,800
445,133
Investments
in
affiliated
securities
........................................................
–
102
–
Futures
contracts
..........................................................................
–
13
1,890
Translation
of
assets
and
liabilities
in
foreign
currencies
.................................
2
–
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies
and
futures
contracts
11,948
117,264
649,750
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
14,089
$
117,390
$
696,059
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
52
See
accompanying
notes.
Amounts
in
thousands
LargeCap
S&P
500
Managed
Volatility
Index
Account
MidCap
Account
Principal
Capital
Appreciation
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
276
$
15
$
61
Dividends
..................................................................................
4,188
7,445
2,843
Withholding
tax
...........................................................................
–
(
137
)
(
13
)
Interest
.....................................................................................
3
–
–
Securities
lending
-
net
....................................................................
1
20
–
Total
Income
4,468
7,343
2,891
Expenses:
Management
and
investment
advisory
fees
...............................................
977
3,101
943
Distribution
fees
-
Class
2
.................................................................
N/A
48
27
Chief
compliance
officer
expenses
........................................................
–
1
–
Custodian
fees
.............................................................................
14
2
3
Directors'
expenses
........................................................................
6
14
6
Professional fees
..........................................................................
12
6
6
Shareholder
meeting
expense
............................................................
–
29
9
Other
expenses
............................................................................
2
3
–
Total
Expenses
1,011
3,204
994
Net
Investment
Income
(Loss)
3,457
4,139
1,897
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
options
and
swaptions
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
8,706
65,028
9,392
Futures
contracts
..........................................................................
1,013
–
–
Options
and
swaptions
....................................................................
3,384
–
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
38,871
131,244
30,626
Futures
contracts
..........................................................................
245
–
–
Options
and
swaptions
....................................................................
(
325
)
–
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
futures
contracts
and
options
and
swaptions
51,894
196,272
40,018
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
55,351
$
200,411
$
41,915
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
53
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2010
Account
Principal
LifeTime
2020
Account
(a)
Principal
LifeTime
2030
Account
(a)
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
820
$
4,669
$
4,084
Total
Income
820
4,669
4,084
Expenses:
Distribution
fees
-
Class
2
.................................................................
N/A
2
2
Directors'
expenses
........................................................................
3
6
6
Professional fees
..........................................................................
8
8
8
Shareholder
meeting
expense
............................................................
3
5
5
Total
Expenses
14
21
21
Net
Investment
Income
(Loss)
806
4,648
4,063
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
in
affiliated
securities
............................................
369
986
462
Capital
gain
distribution
received
from
affiliated
securities
..............................
244
2,309
3,134
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
2,832
22,973
24,435
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
3,445
26,268
28,031
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
4,251
$
30,916
$
32,094
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
54
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2040
Account
(a)
Principal
LifeTime
2050
Account
(a)
Principal
LifeTime
2060
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
1,788
$
764
$
148
Total
Income
1,788
764
148
Expenses:
Distribution
fees
-
Class
2
.................................................................
1
1
N/A
Directors'
expenses
........................................................................
4
3
3
Professional fees
..........................................................................
8
8
8
Shareholder
meeting
expense
............................................................
5
4
2
Total
Gross
Expenses
18
16
13
Less:
Reimbursement
from
Manager
-
Class
1
...........................................
–
–
7
Total
Net
Expenses
18
16
6
Net
Investment
Income
(Loss)
1,770
748
142
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
in
affiliated
securities
............................................
(
64
)
(
25
)
3
Capital
gain
distribution
received
from
affiliated
securities
..............................
1,904
964
200
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
12,532
6,530
1,153
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
14,372
7,469
1,356
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
16,142
$
8,217
$
1,498
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
55
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
Strategic
Income
Account
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
675
$
18
$
16,020
Dividends
..................................................................................
–
3,927
–
Total
Income
675
3,945
16,020
Expenses:
Management
and
investment
advisory
fees
...............................................
–
1,389
1,591
Distribution
fees
-
Class
2
.................................................................
N/A
12
288
Chief
compliance
officer
expenses
........................................................
–
–
1
Custodian
fees
.............................................................................
–
3
–
Directors'
expenses
........................................................................
3
6
16
Professional fees
..........................................................................
8
6
7
Shareholder
meeting
expense
............................................................
3
11
15
Other
expenses
............................................................................
–
1
1
Total
Gross
Expenses
14
1,428
1,919
Less:
Reimbursement
from
Manager
.....................................................
–
31
–
Total
Net
Expenses
14
1,397
1,919
Net
Investment
Income
(Loss)
661
2,548
14,101
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
10,570
13
Investment
transactions
in
affiliated
securities
............................................
(
93
)
–
14,959
Capital
gain
distribution
received
from
affiliated
securities
..............................
124
–
5,877
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
28,328
–
Investments
in
affiliated
securities
........................................................
2,005
–
90,645
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
2,036
38,898
111,494
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
2,697
$
41,446
$
125,595
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
56
See
accompanying
notes.
Amounts
in
thousands
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
4,776
$
7,230
$
5,411
Total
Income
4,776
7,230
5,411
Expenses:
Management
and
investment
advisory
fees
...............................................
427
773
429
Distribution
fees
-
Class
2
.................................................................
57
330
70
Directors'
expenses
........................................................................
6
10
6
Professional fees
..........................................................................
7
7
7
Shareholder
meeting
expense
............................................................
6
15
6
Total
Expenses
503
1,135
518
Net
Investment
Income
(Loss)
4,273
6,095
4,893
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
in
affiliated
securities
............................................
2,931
1,618
3,996
Capital
gain
distribution
received
from
affiliated
securities
..............................
1,148
3,995
719
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
18,902
59,644
13,562
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
22,981
65,257
18,277
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
27,254
$
71,352
$
23,170
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
57
See
accompanying
notes.
Amounts
in
thousands
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
(a)
SmallCap
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
6,207
$
59
$
82
Dividends
..................................................................................
–
–
2,455
Withholding
tax
...........................................................................
–
–
(
1
)
Interest
.....................................................................................
–
3,811
–
Securities
lending
-
net
....................................................................
–
6
43
Total
Income
6,207
3,876
2,579
Expenses:
Management
and
investment
advisory
fees
...............................................
665
685
1,555
Distribution
fees
-
Class
2
.................................................................
332
4
15
Custodian
fees
.............................................................................
–
11
3
Directors'
expenses
........................................................................
9
5
6
Professional fees
..........................................................................
8
11
7
Shareholder
meeting
expense
............................................................
18
7
17
Total
Gross
Expenses
1,032
723
1,603
Less:
Reimbursement
from
Manager
-
Class
1
...........................................
–
14
–
Total
Net
Expenses
1,032
709
1,603
Net
Investment
Income
(Loss)
5,175
3,167
976
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
367
12,355
Investment
transactions
in
affiliated
securities
............................................
1,616
–
–
Capital
gain
distribution
received
from
affiliated
securities
..............................
5,578
–
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
2,788
31,227
Investments
in
affiliated
securities
........................................................
56,229
–
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
63,423
3,155
43,582
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
68,598
$
6,322
$
44,558
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
58
See
accompanying
notes.
Amounts
in
thousands
Bond
Market
Index
Account
Core
Plus
Bond
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
63,413
$
60,798
$
8,756
$
9,405
Net
realized
gain
(loss)
on
investments
,
futures
contracts
,
short
sales
and
swap
agreements
...........
15,149
(
20,805
)
4,484
(
4,080
)
Change
in
unrealized
appreciation/depreciation
of
investments
,
futures
contracts
,
short
sales
and
swap
agreements
...............................................................................................
120,981
(
48,394
)
15,149
(
9,640
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
199,543
(
8,401
)
28,389
(
4,315
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
63,629
)
(
52,158
)
(
10,172
)
(
9,608
)
Class
2
..............................................................................................
N/A
N/A
–
(
28
)
Total
Dividends
and
Distributions
(
63,629
)
(
52,158
)
(
10,172
)
(
9,636
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
629,823
364,715
50,731
45,295
Class
2
..............................................................................................
N/A
N/A
678
485
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A
N/A
13,863
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
63,629
52,158
10,172
9,608
Class
2
..............................................................................................
N/A
N/A
–
28
Dollars
redeemed:
Class
1
..............................................................................................
(
503,261
)
(
591,027
)
(
120,810
)
(
53,893
)
Class
2
..............................................................................................
N/A
N/A
(
1,497
)
(
306
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
190,191
(
174,154
)
(
46,863
)
1,217
Total
Increase
(Decrease)
326,105
(
234,713
)
(
28,646
)
(
12,734
)
Net
Assets
Beginning
of
period
......................................................................................
2,213,355
2,448,068
281,520
294,254
End
of
period
............................................................................................
$
2,539,460
$
2,213,355
$
252,874
$
281,520
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
59,835
35,856
4,480
4,117
Class
2
..............................................................................................
N/A
N/A
61
45
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A
N/A
1,210
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
5,969
5,216
891
891
Class
2
..............................................................................................
N/A
N/A
–
3
Shares
redeemed:
Class
1
..............................................................................................
(
47,091
)
(
58,606
)
(
10,571
)
(
4,899
)
Class
2
..............................................................................................
N/A
N/A
(
132
)
(
29
)
Net
Increase
(Decrease)
..................................................................................
18,713
(
17,534
)
(
4,061
)
128
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
59
See
accompanying
notes.
Amounts
in
thousands
Diversified
Balanced
Account
Diversified
Balanced
Managed
Volatility
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
20,392
$
18,859
$
3,259
$
2,782
Net
realized
gain
(loss)
on
investments
..................................................................
41,502
42,426
6,547
2,547
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
110,315
(
96,244
)
17,624
(
10,559
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
172,209
(
34,959
)
27,430
(
5,230
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
2,466
)
(
1,603
)
N/A
N/A
Class
2
..............................................................................................
(
58,890
)
(
39,311
)
(
5,335
)
(
7,738
)
Total
Dividends
and
Distributions
(
61,356
)
(
40,914
)
(
5,335
)
(
7,738
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
1,350
1,529
N/A
N/A
Class
2
..............................................................................................
9,218
11,925
8,008
7,201
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
2,466
1,603
N/A
N/A
Class
2
..............................................................................................
58,890
39,311
5,335
7,738
Dollars
redeemed:
Class
1
..............................................................................................
(
4,004
)
(
6,293
)
N/A
N/A
Class
2
..............................................................................................
(
155,027
)
(
141,065
)
(
21,369
)
(
20,810
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
87,107
)
(
92,990
)
(
8,026
)
(
5,871
)
Total
Increase
(Decrease)
23,746
(
168,863
)
14,069
(
18,839
)
Net
Assets
Beginning
of
period
......................................................................................
1,005,212
1,174,075
162,166
181,005
End
of
period
............................................................................................
$
1,028,958
$
1,005,212
$
176,235
$
162,166
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
83
97
N/A
N/A
Class
2
..............................................................................................
565
755
648
592
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
155
101
N/A
N/A
Class
2
..............................................................................................
3,699
2,482
429
644
Shares
redeemed:
Class
1
..............................................................................................
(
248
)
(
398
)
N/A
N/A
Class
2
..............................................................................................
(
9,604
)
(
8,911
)
(
1,721
)
(
1,721
)
Net
Increase
(Decrease)
..................................................................................
(
5,350
)
(
5,874
)
(
644
)
(
485
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
60
See
accompanying
notes.
Amounts
in
thousands
Diversified
Balanced
Volatility
Control
Account
Diversified
Growth
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
2,521
$
1,009
$
69,980
$
64,811
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
2,216
546
139,147
133,147
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
9,421
(
3,893
)
495,618
(
358,524
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
14,158
(
2,338
)
704,745
(
160,566
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
2
..............................................................................................
(
2,000
)
(
582
)
(
198,223
)
(
135,495
)
Total
Dividends
and
Distributions
(
2,000
)
(
582
)
(
198,223
)
(
135,495
)
Capital
Share
Transactions
Dollars
sold:
Class
2
..............................................................................................
68,215
35,517
21,912
41,392
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
2,000
582
198,223
135,495
Dollars
redeemed:
Class
2
..............................................................................................
(
3,985
)
(
2,718
)
(
442,824
)
(
338,227
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
66,230
33,381
(
222,689
)
(
161,340
)
Total
Increase
(Decrease)
78,388
30,461
283,833
(
457,401
)
Net
Assets
Beginning
of
period
......................................................................................
66,983
36,522
3,488,312
3,945,713
End
of
period
............................................................................................
$
145,371
$
66,983
$
3,772,145
$
3,488,312
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
2
..............................................................................................
6,096
3,315
1,219
2,331
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
178
53
11,142
7,629
Shares
redeemed:
Class
2
..............................................................................................
(
357
)
(
255
)
(
24,574
)
(
19,246
)
Net
Increase
(Decrease)
..................................................................................
5,917
3,113
(
12,213
)
(
9,286
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
61
See
accompanying
notes.
Amounts
in
thousands
Diversified
Growth
Managed
Volatility
Account
Diversified
Growth
Volatility
Control
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
6,246
$
5,363
$
13,065
$
5,626
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
16,172
5,267
12,029
6,099
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
40,824
(
24,370
)
64,354
(
30,259
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
63,242
(
13,740
)
89,448
(
18,534
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
2
..............................................................................................
(
10,642
)
(
17,296
)
(
10,290
)
(
3,112
)
Total
Dividends
and
Distributions
(
10,642
)
(
17,296
)
(
10,290
)
(
3,112
)
Capital
Share
Transactions
Dollars
sold:
Class
2
..............................................................................................
8,119
15,080
296,797
233,076
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
10,642
17,296
10,290
3,112
Dollars
redeemed:
Class
2
..............................................................................................
(
42,902
)
(
31,174
)
(
5,534
)
(
1,605
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
24,141
)
1,202
301,553
234,583
Total
Increase
(Decrease)
28,459
(
29,834
)
380,711
212,937
Net
Assets
Beginning
of
period
......................................................................................
325,228
355,062
384,706
171,769
End
of
period
............................................................................................
$
353,687
$
325,228
$
765,417
$
384,706
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
2
..............................................................................................
633
1,210
26,239
21,326
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
2
..............................................................................................
825
1,376
901
278
Shares
redeemed:
Class
2
..............................................................................................
(
3,332
)
(
2,476
)
(
478
)
(
143
)
Net
Increase
(Decrease)
..................................................................................
(
1,874
)
110
26,662
21,461
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
62
See
accompanying
notes.
Amounts
in
thousands
Diversified
Income
Account
Diversified
International
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
5,720
$
4,384
$
4,743
$
5,381
Net
realized
gain
(loss)
on
investments
and
foreign
currencies
.........................................
5,094
5,740
421
12,743
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
26,128
(
15,995
)
46,445
(
68,991
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
36,942
(
5,871
)
51,609
(
50,867
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
N/A
N/A
(
16,680
)
(
5,962
)
Class
2
..............................................................................................
(
10,164
)
(
6,908
)
–
(
45
)
Total
Dividends
and
Distributions
(
10,164
)
(
6,908
)
(
16,680
)
(
6,007
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
N/A
N/A
16,466
25,975
Class
2
..............................................................................................
49,724
31,949
282
757
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
N/A
N/A
16,680
5,962
Class
2
..............................................................................................
10,164
6,908
–
45
Dollars
redeemed:
Class
1
..............................................................................................
N/A
N/A
(
34,685
)
(
34,901
)
Class
2
..............................................................................................
(
48,109
)
(
52,882
)
(
2,536
)
(
175
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
11,779
(
14,025
)
(
3,793
)
(
2,337
)
Total
Increase
(Decrease)
38,557
(
26,804
)
31,136
(
59,211
)
Net
Assets
Beginning
of
period
......................................................................................
241,331
268,135
235,632
294,843
End
of
period
............................................................................................
$
279,888
$
241,331
$
266,768
$
235,632
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
N/A
N/A
1,091
1,569
Class
2
..............................................................................................
3,693
2,474
19
45
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
N/A
N/A
1,154
379
Class
2
..............................................................................................
756
533
–
3
Shares
redeemed:
Class
1
..............................................................................................
N/A
N/A
(
2,292
)
(
2,138
)
Class
2
..............................................................................................
(
3,573
)
(
4,073
)
(
165
)
(
11
)
Net
Increase
(Decrease)
..................................................................................
876
(
1,066
)
(
193
)
(
153
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
63
See
accompanying
notes.
Amounts
in
thousands
Equity
Income
Account
Government
&
High
Quality
Bond
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
15,671
$
15,325
$
5,203
$
5,612
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
25,250
26,702
447
(
4,919
)
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
143,189
(
78,310
)
8,424
1,170
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
184,110
(
36,283
)
14,074
1,863
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
31,963
)
(
45,062
)
(
6,457
)
(
8,577
)
Class
2
..............................................................................................
(
1,260
)
(
2,105
)
–
(
94
)
Total
Dividends
and
Distributions
(
33,223
)
(
47,167
)
(
6,457
)
(
8,671
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
30,924
58,053
45,780
23,115
Class
2
..............................................................................................
2,812
2,423
109
587
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A
138,113
N/A
N/A
Class
2
..............................................................................................
N/A
728
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
31,963
45,062
6,457
8,577
Class
2
..............................................................................................
1,260
2,105
–
94
Dollars
redeemed:
Class
1
..............................................................................................
(
102,774
)
(
97,723
)
(
38,035
)
(
47,180
)
Class
2
..............................................................................................
(
3,271
)
(
4,025
)
(
2,835
)
(
287
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
39,086
)
144,736
11,476
(
15,094
)
Total
Increase
(Decrease)
111,801
61,286
19,093
(
21,902
)
Net
Assets
Beginning
of
period
......................................................................................
661,384
600,098
222,239
244,141
End
of
period
............................................................................................
$
773,185
$
661,384
$
241,332
$
222,239
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,185
2,255
4,656
2,427
Class
2
..............................................................................................
107
94
11
62
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A
5,656
N/A
N/A
Class
2
..............................................................................................
N/A
30
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
1,212
1,759
662
922
Class
2
..............................................................................................
48
83
–
10
Shares
redeemed:
Class
1
..............................................................................................
(
3,931
)
(
3,796
)
(
3,904
)
(
4,946
)
Class
2
..............................................................................................
(
127
)
(
157
)
(
289
)
(
30
)
Net
Increase
(Decrease)
..................................................................................
(
1,506
)
5,924
1,136
(
1,555
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
64
See
accompanying
notes.
Amounts
in
thousands
International
Emerging
Markets
Account
LargeCap
Growth
Account
I
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
2,141
$
1,098
$
126
$
253
Net
realized
gain
(loss)
on
investments
,
foreign
currencies
and
futures
contracts
......................
(
158
)
2,108
37,349
39,058
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
12,106
(
26,211
)
79,915
(
27,387
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
14,089
(
23,005
)
117,390
11,924
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
3,085
)
(
1,219
)
(
34,797
)
(
23,659
)
Class
2
..............................................................................................
–
(
19
)
–
(
197
)
Total
Dividends
and
Distributions
(
3,085
)
(
1,238
)
(
34,797
)
(
23,856
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
10,185
12,049
49,655
40,614
Class
2
..............................................................................................
300
1,293
1,475
2,908
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A
N/A
112,835
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
3,085
1,219
34,797
23,659
Class
2
..............................................................................................
–
19
–
197
Dollars
redeemed:
Class
1
..............................................................................................
(
17,834
)
(
20,815
)
(
72,723
)
(
58,731
)
Class
2
..............................................................................................
(
1,909
)
(
294
)
(
5,277
)
(
266
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
6,173
)
(
6,529
)
120,762
8,381
Total
Increase
(Decrease)
4,831
(
30,772
)
203,355
(
3,551
)
Net
Assets
Beginning
of
period
......................................................................................
84,898
115,670
299,298
302,849
End
of
period
............................................................................................
$
89,729
$
84,898
$
502,653
$
299,298
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
632
664
1,406
1,205
Class
2
..............................................................................................
19
70
42
86
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A
N/A
3,150
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
198
74
1,003
687
Class
2
..............................................................................................
–
1
–
6
Shares
redeemed:
Class
1
..............................................................................................
(
1,108
)
(
1,137
)
(
2,043
)
(
1,745
)
Class
2
..............................................................................................
(
121
)
(
17
)
(
148
)
(
9
)
Net
Increase
(Decrease)
..................................................................................
(
380
)
(
345
)
3,410
230
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
65
See
accompanying
notes.
Amounts
in
thousands
LargeCap
S&P
500
Index
Account
LargeCap
S&P
500
Managed
Volatility
Index
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
46,309
$
49,484
$
3,457
$
3,583
Net
realized
gain
(loss)
on
investments
,
futures
contracts
and
options
and
swaptions
..................
202,727
134,502
13,103
11,285
Change
in
unrealized
appreciation/depreciation
of
investments
,
futures
contracts
and
options
and
swaptions
.................................................................................................
447,023
(
278,290
)
38,791
(
20,990
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
696,059
(
94,304
)
55,351
(
6,122
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
159,558
)
(
128,550
)
(
18,504
)
(
3,114
)
Class
2
..............................................................................................
(
807
)
(
322
)
N/A
N/A
Total
Dividends
and
Distributions
(
160,365
)
(
128,872
)
(
18,504
)
(
3,114
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
242,319
336,816
13,578
24,533
Class
2
..............................................................................................
6,806
4,642
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
159,558
128,550
18,504
3,114
Class
2
..............................................................................................
807
322
N/A
N/A
Dollars
redeemed:
Class
1
..............................................................................................
(
620,303
)
(
428,913
)
(
56,805
)
(
34,782
)
Class
2
..............................................................................................
(
872
)
(
292
)
N/A
N/A
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
211,685
)
41,125
(
24,723
)
(
7,135
)
Total
Increase
(Decrease)
324,009
(
182,051
)
12,124
(
16,371
)
Net
Assets
Beginning
of
period
......................................................................................
2,385,169
2,567,220
205,655
222,026
End
of
period
............................................................................................
$
2,709,178
$
2,385,169
$
217,779
$
205,655
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
12,839
19,434
939
1,872
Class
2
..............................................................................................
360
255
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
8,551
6,845
1,323
217
Class
2
..............................................................................................
44
17
N/A
N/A
Shares
redeemed:
Class
1
..............................................................................................
(
33,092
)
(
23,083
)
(
3,948
)
(
2,489
)
Class
2
..............................................................................................
(
47
)
(
16
)
N/A
N/A
Net
Increase
(Decrease)
..................................................................................
(
11,345
)
3,452
(
1,686
)
(
400
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
66
See
accompanying
notes.
Amounts
in
thousands
MidCap
Account
Principal
Capital
Appreciation
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
4,139
$
1,610
$
1,897
$
2,365
Net
realized
gain
(loss)
on
investments
..................................................................
65,028
91,599
9,392
15,443
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
131,244
(
126,070
)
30,626
(
21,803
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
200,411
(
32,861
)
41,915
(
3,995
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
78,890
)
(
71,720
)
(
14,537
)
(
9,374
)
Class
2
..............................................................................................
(
2,711
)
(
2,314
)
(
1,192
)
(
592
)
Total
Dividends
and
Distributions
(
81,601
)
(
74,034
)
(
15,729
)
(
9,966
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
16,147
14,347
2,236
3,936
Class
2
..............................................................................................
241
318
3,206
1,928
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
78,890
71,720
14,537
9,374
Class
2
..............................................................................................
2,711
2,314
1,192
592
Dollars
redeemed:
Class
1
..............................................................................................
(
96,550
)
(
83,342
)
(
26,520
)
(
26,219
)
Class
2
..............................................................................................
(
1,662
)
(
1,283
)
(
1,378
)
(
1,344
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
223
)
4,074
(
6,727
)
(
11,733
)
Total
Increase
(Decrease)
118,587
(
102,821
)
19,459
(
25,694
)
Net
Assets
Beginning
of
period
......................................................................................
490,075
592,896
137,304
162,998
End
of
period
............................................................................................
$
608,662
$
490,075
$
156,763
$
137,304
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
272
254
77
140
Class
2
..............................................................................................
4
6
109
66
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
1,395
1,273
509
320
Class
2
..............................................................................................
48
41
42
21
Shares
redeemed:
Class
1
..............................................................................................
(
1,633
)
(
1,432
)
(
894
)
(
902
)
Class
2
..............................................................................................
(
28
)
(
22
)
(
47
)
(
47
)
Net
Increase
(Decrease)
..................................................................................
58
120
(
204
)
(
402
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
67
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2010
Account
Principal
LifeTime
2020
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
806
$
908
$
4,648
$
4,533
Net
realized
gain
(loss)
on
investments
..................................................................
613
1,696
3,295
8,007
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
2,832
(
3,947
)
22,973
(
22,610
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
4,251
(
1,343
)
30,916
(
10,070
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
2,623
)
(
1,991
)
(
12,571
)
(
10,770
)
Class
2
..............................................................................................
N/A
N/A
–
(
77
)
Total
Dividends
and
Distributions
(
2,623
)
(
1,991
)
(
12,571
)
(
10,847
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
4,033
5,287
36,143
24,719
Class
2
..............................................................................................
N/A
N/A
57
847
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
2,623
1,991
12,571
10,770
Class
2
..............................................................................................
N/A
N/A
–
77
Dollars
redeemed:
Class
1
..............................................................................................
(
8,675
)
(
13,890
)
(
48,621
)
(
40,498
)
Class
2
..............................................................................................
N/A
N/A
(
1,506
)
(
121
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
2,019
)
(
6,612
)
(
1,356
)
(
4,206
)
Total
Increase
(Decrease)
(
391
)
(
9,946
)
16,989
(
25,123
)
Net
Assets
Beginning
of
period
......................................................................................
31,890
41,836
173,486
198,609
End
of
period
............................................................................................
$
31,499
$
31,890
$
190,475
$
173,486
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
316
401
2,639
1,791
Class
2
..............................................................................................
N/A
N/A
4
60
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
211
156
940
795
Class
2
..............................................................................................
N/A
N/A
–
6
Shares
redeemed:
Class
1
..............................................................................................
(
675
)
(
1,058
)
(
3,540
)
(
2,948
)
Class
2
..............................................................................................
N/A
N/A
(
109
)
(
9
)
Net
Increase
(Decrease)
..................................................................................
(
148
)
(
501
)
(
66
)
(
305
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
68
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2030
Account
Principal
LifeTime
2040
Account
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
4,063
$
3,489
$
1,770
$
1,440
Net
realized
gain
(loss)
on
investments
..................................................................
3,596
8,790
1,840
3,902
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
24,435
(
22,990
)
12,532
(
10,636
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
32,094
(
10,711
)
16,142
(
5,294
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
12,276
)
(
8,819
)
(
5,351
)
(
3,624
)
Class
2
..............................................................................................
–
(
86
)
–
(
35
)
Total
Dividends
and
Distributions
(
12,276
)
(
8,905
)
(
5,351
)
(
3,659
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
38,567
32,095
19,903
14,992
Class
2
..............................................................................................
193
1,181
158
571
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
12,276
8,819
5,351
3,624
Class
2
..............................................................................................
–
86
–
35
Dollars
redeemed:
Class
1
..............................................................................................
(
28,880
)
(
33,379
)
(
13,291
)
(
10,786
)
Class
2
..............................................................................................
(
2,217
)
(
92
)
(
905
)
(
221
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
19,939
8,710
11,216
8,215
Total
Increase
(Decrease)
39,757
(
10,906
)
22,007
(
738
)
Net
Assets
Beginning
of
period
......................................................................................
142,415
153,321
63,398
64,136
End
of
period
............................................................................................
$
182,172
$
142,415
$
85,405
$
63,398
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
3,010
2,454
1,269
953
Class
2
..............................................................................................
15
92
10
35
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
984
690
350
231
Class
2
..............................................................................................
–
7
–
2
Shares
redeemed:
Class
1
..............................................................................................
(
2,251
)
(
2,579
)
(
853
)
(
676
)
Class
2
..............................................................................................
(
172
)
(
7
)
(
57
)
(
14
)
Net
Increase
(Decrease)
..................................................................................
1,586
657
719
531
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
69
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
2050
Account
Principal
LifeTime
2060
Account
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
748
$
682
$
142
$
97
Net
realized
gain
(loss)
on
investments
..................................................................
939
2,171
203
352
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
6,530
(
5,787
)
1,153
(
860
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
8,217
(
2,934
)
1,498
(
411
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
2,861
)
(
2,121
)
(
454
)
(
305
)
Class
2
..............................................................................................
–
(
49
)
N/A
N/A
Total
Dividends
and
Distributions
(
2,861
)
(
2,170
)
(
454
)
(
305
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
7,098
9,326
4,342
4,605
Class
2
..............................................................................................
93
604
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
2,861
2,121
454
305
Class
2
..............................................................................................
–
49
N/A
N/A
Dollars
redeemed:
Class
1
..............................................................................................
(
6,652
)
(
7,749
)
(
2,358
)
(
5,257
)
Class
2
..............................................................................................
(
1,155
)
(
354
)
N/A
N/A
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
2,245
3,997
2,438
(
347
)
Total
Increase
(Decrease)
7,601
(
1,107
)
3,482
(
1,063
)
Net
Assets
Beginning
of
period
......................................................................................
31,280
32,387
4,649
5,712
End
of
period
............................................................................................
$
38,881
$
31,280
$
8,131
$
4,649
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
471
599
312
320
Class
2
..............................................................................................
6
39
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
196
139
33
22
Class
2
..............................................................................................
–
3
N/A
N/A
Shares
redeemed:
Class
1
..............................................................................................
(
442
)
(
492
)
(
168
)
(
362
)
Class
2
..............................................................................................
(
76
)
(
22
)
N/A
N/A
Net
Increase
(Decrease)
..................................................................................
155
266
177
(
20
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
70
See
accompanying
notes.
Amounts
in
thousands
Principal
LifeTime
Strategic
Income
Account
Real
Estate
Securities
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
661
$
605
$
2,548
$
2,786
Net
realized
gain
(loss)
on
investments
..................................................................
31
985
10,570
10,389
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
2,005
(
2,234
)
28,328
(
19,411
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
2,697
(
644
)
41,446
(
6,236
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
1,595
)
(
876
)
(
12,865
)
(
14,247
)
Class
2
..............................................................................................
N/A
N/A
(
409
)
(
340
)
Total
Dividends
and
Distributions
(
1,595
)
(
876
)
(
13,274
)
(
14,587
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
7,304
4,140
13,048
11,906
Class
2
..............................................................................................
N/A
N/A
2,340
1,190
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
1,595
876
12,865
14,247
Class
2
..............................................................................................
N/A
N/A
409
340
Dollars
redeemed:
Class
1
..............................................................................................
(
4,386
)
(
7,462
)
(
31,224
)
(
26,990
)
Class
2
..............................................................................................
N/A
N/A
(
602
)
(
393
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
4,513
(
2,446
)
(
3,164
)
300
Total
Increase
(Decrease)
5,615
(
3,966
)
25,008
(
20,523
)
Net
Assets
Beginning
of
period
......................................................................................
20,664
24,630
136,922
157,445
End
of
period
............................................................................................
$
26,279
$
20,664
$
161,930
$
136,922
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
609
346
621
611
Class
2
..............................................................................................
N/A
N/A
109
61
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
137
75
619
737
Class
2
..............................................................................................
N/A
N/A
20
17
Shares
redeemed:
Class
1
..............................................................................................
(
371
)
(
626
)
(
1,476
)
(
1,376
)
Class
2
..............................................................................................
N/A
N/A
(
29
)
(
20
)
Net
Increase
(Decrease)
..................................................................................
375
(
205
)
(
136
)
30
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
71
See
accompanying
notes.
Amounts
in
thousands
SAM
Balanced
Portfolio
SAM
Conservative
Balanced
Portfolio
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
14,101
$
16,876
$
4,273
$
5,257
Net
realized
gain
(loss)
on
investments
..................................................................
20,849
26,614
4,079
4,053
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
90,645
(
78,727
)
18,902
(
15,820
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
125,595
(
35,237
)
27,254
(
6,510
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
34,485
)
(
49,734
)
(
7,836
)
(
11,929
)
Class
2
..............................................................................................
(
6,978
)
(
8,765
)
(
1,118
)
(
1,454
)
Total
Dividends
and
Distributions
(
41,463
)
(
58,499
)
(
8,954
)
(
13,383
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
11,207
18,427
10,371
12,728
Class
2
..............................................................................................
12,791
9,719
3,994
4,078
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
34,485
49,734
7,836
11,929
Class
2
..............................................................................................
6,978
8,765
1,118
1,454
Dollars
redeemed:
Class
1
..............................................................................................
(
102,578
)
(
106,200
)
(
24,553
)
(
31,254
)
Class
2
..............................................................................................
(
13,398
)
(
10,034
)
(
2,337
)
(
3,360
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
50,515
)
(
29,589
)
(
3,571
)
(
4,425
)
Total
Increase
(Decrease)
33,617
(
123,325
)
14,729
(
24,318
)
Net
Assets
Beginning
of
period
......................................................................................
665,213
788,538
174,746
199,064
End
of
period
............................................................................................
$
698,830
$
665,213
$
189,475
$
174,746
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
740
1,191
886
1,055
Class
2
..............................................................................................
852
630
338
345
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
2,314
3,318
668
1,026
Class
2
..............................................................................................
474
591
96
127
Shares
redeemed:
Class
1
..............................................................................................
(
6,736
)
(
6,846
)
(
2,065
)
(
2,587
)
Class
2
..............................................................................................
(
895
)
(
654
)
(
199
)
(
282
)
Net
Increase
(Decrease)
..................................................................................
(
3,251
)
(
1,770
)
(
276
)
(
316
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
72
See
accompanying
notes.
Amounts
in
thousands
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
6,095
$
5,906
$
4,893
$
6,420
Net
realized
gain
(loss)
on
investments
..................................................................
5,613
15,591
4,715
5,776
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
59,644
(
43,484
)
13,562
(
15,998
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
71,352
(
21,987
)
23,170
(
3,802
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
13,076
)
(
16,069
)
(
9,918
)
(
11,234
)
Class
2
..............................................................................................
(
8,339
)
(
9,631
)
(
1,807
)
(
1,602
)
Total
Dividends
and
Distributions
(
21,415
)
(
25,700
)
(
11,725
)
(
12,836
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
13,665
21,584
11,700
8,441
Class
2
..............................................................................................
12,305
9,393
5,814
7,676
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A
N/A
346
N/A
Class
2
..............................................................................................
N/A
N/A
107
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
13,076
16,069
9,918
11,234
Class
2
..............................................................................................
8,339
9,631
1,807
1,602
Dollars
redeemed:
Class
1
..............................................................................................
(
33,646
)
(
38,633
)
(
30,930
)
(
42,935
)
Class
2
..............................................................................................
(
14,790
)
(
9,529
)
(
4,297
)
(
4,450
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
1,051
)
8,515
(
5,535
)
(
18,432
)
Total
Increase
(Decrease)
48,886
(
39,172
)
5,910
(
35,070
)
Net
Assets
Beginning
of
period
......................................................................................
307,961
347,133
182,675
217,745
End
of
period
............................................................................................
$
356,847
$
307,961
$
188,585
$
182,675
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
719
1,136
937
668
Class
2
..............................................................................................
654
491
468
613
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A
N/A
27
N/A
Class
2
..............................................................................................
N/A
N/A
8
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
698
847
811
921
Class
2
..............................................................................................
452
514
149
132
Shares
redeemed:
Class
1
..............................................................................................
(
1,766
)
(
2,012
)
(
2,464
)
(
3,390
)
Class
2
..............................................................................................
(
790
)
(
494
)
(
346
)
(
353
)
Net
Increase
(Decrease)
..................................................................................
(
33
)
482
(
410
)
(
1,409
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
73
See
accompanying
notes.
Amounts
in
thousands
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
5,175
$
4,190
$
3,167
$
3,396
Net
realized
gain
(loss)
on
investments
..................................................................
7,194
16,667
367
(
914
)
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
56,229
(
45,097
)
2,788
(
759
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
68,598
(
24,240
)
6,322
1,723
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
10,497
)
(
12,164
)
(
3,392
)
(
3,250
)
Class
2
..............................................................................................
(
8,871
)
(
9,663
)
–
(
71
)
Total
Dividends
and
Distributions
(
19,368
)
(
21,827
)
(
3,392
)
(
3,321
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
13,010
15,633
32,469
29,747
Class
2
..............................................................................................
9,949
9,438
1,115
2,906
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
10,497
12,164
3,392
3,250
Class
2
..............................................................................................
8,871
9,663
–
71
Dollars
redeemed:
Class
1
..............................................................................................
(
21,196
)
(
26,105
)
(
56,911
)
(
40,805
)
Class
2
..............................................................................................
(
10,097
)
(
10,070
)
(
5,301
)
(
1,159
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
11,034
10,723
(
25,236
)
(
5,990
)
Total
Increase
(Decrease)
60,264
(
35,344
)
(
22,306
)
(
7,588
)
Net
Assets
Beginning
of
period
......................................................................................
255,149
290,493
153,158
160,746
End
of
period
............................................................................................
$
315,413
$
255,149
$
130,852
$
153,158
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
625
737
12,624
11,770
Class
2
..............................................................................................
486
448
437
1,153
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
517
589
1,330
1,300
Class
2
..............................................................................................
443
474
–
28
Shares
redeemed:
Class
1
..............................................................................................
(
1,024
)
(
1,230
)
(
22,197
)
(
16,117
)
Class
2
..............................................................................................
(
496
)
(
480
)
(
2,065
)
(
460
)
Net
Increase
(Decrease)
..................................................................................
551
538
(
9,871
)
(
2,326
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
74
See
accompanying
notes.
Amounts
in
thousands
SmallCap
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
...................................................................................................................
$
976
$
394
Net
realized
gain
(loss)
on
investments
.........................................................................................................
12,355
28,868
Change
in
unrealized
appreciation/depreciation
of
investments
................................................................................
31,227
(
48,626
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
44,558
(
19,364
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
.....................................................................................................................................
(
28,785
)
(
13,133
)
Class
2
.....................................................................................................................................
(
937
)
(
366
)
Total
Dividends
and
Distributions
(
29,722
)
(
13,499
)
Capital
Share
Transactions
Dollars
sold:
Class
1
.....................................................................................................................................
7,971
12,588
Class
2
.....................................................................................................................................
1,072
866
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
.....................................................................................................................................
28,785
13,133
Class
2
.....................................................................................................................................
937
366
Dollars
redeemed:
Class
1
.....................................................................................................................................
(
29,980
)
(
39,263
)
Class
2
.....................................................................................................................................
(
475
)
(
750
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
8,310
(
13,060
)
Total
Increase
(Decrease)
23,146
(
45,923
)
Net
Assets
Beginning
of
period
.............................................................................................................................
168,117
214,040
End
of
period
...................................................................................................................................
$
191,263
$
168,117
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
.....................................................................................................................................
506
732
Class
2
.....................................................................................................................................
70
50
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
.....................................................................................................................................
1,996
716
Class
2
.....................................................................................................................................
65
20
Shares
redeemed:
Class
1
.....................................................................................................................................
(
1,890
)
(
2,233
)
Class
2
.....................................................................................................................................
(
30
)
(
43
)
Net
Increase
(Decrease)
.........................................................................................................................
717
(
758
)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
75
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
Control
Account,
Diversified
Income
Account,
Diversified
International
Account,
Equity
Income
Account,
Government
&
High
Quality
Bond
Account,
International
Emerging
Markets
Account,
LargeCap
Growth
Account
I,
LargeCap
S&P
500
Index
Account,
LargeCap
S&P
500
Managed
Volatility
Index
Account,
MidCap
Account,
Principal
Capital
Appreciation
Account,
Principal
LifeTime
2010
Account,
Principal
LifeTime
2020
Account,
Principal
LifeTime
2030
Account,
Principal
LifeTime
2040
Account,
Principal
LifeTime
2050
Account,
Principal
LifeTime
2060
Account,
Principal
LifeTime
Strategic
Income
Account,
Real
Estate
Securities
Account,
SAM
Balanced
Portfolio,
SAM
Conservative
Balanced
Portfolio,
SAM
Conservative
Growth
Portfolio,
SAM
Flexible
Income
Portfolio,
SAM
Strategic
Growth
Portfolio,
Short-Term
Income
Account
and
SmallCap
Account
(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
(“ASC”)
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
Income
Account
acquired
all
the
assets
and
assumed
all
the
liabilities
of
LargeCap
Value
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
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
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
Income
Account,
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.
Effective
June
7,
2019,
Core
Plus
Bond
Account
acquired
all
the
assets
and
assumed
all
the
liabilities
of
Income
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
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
taxable
exchange
of
5,873,000
shares
from
Income
Account
for
1,210,000
shares
valued
at
$13,863,000
of
Core
Plus
Bond
Account
at
an
approximate
exchange
rate
of
.21
and
.21
for
Class
1
and
Class
2
shares,
respectively.
The
investment
securities
of
Income
Account,
with
a
fair
value
of
approximately
$13,145,000
and
a
cost
of
$12,607,000
and
$613,000
cash
were
the
primary
assets
acquired
by
Core
Plus
Bond
Account
on
June
7,
2019.
For
financial
reporting
purposes,
assets
received
and
shares
issued
by
Core
Plus
Bond
Account
were
recorded
at
fair
value.
The
net
assets
of
Income
Account
and
Core
Plus
Bond
Account
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$13,863,000
($4,875,000
of
accumulated
realized
gain)
and
$304,718,000,
respectively.
The
net
assets
of
Core
Plus
Bond
Account
immediately
following
the
acquisition
were
$318,581,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
Core
Plus
Bond
Account,
Core
Plus
Bond
Account’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$11,379,000
of
net
investment
income,
$24,559,000
of
net
realized
and
unrealized
gain
on
investments,
and
$35,938,000
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
Income
Account
that
have
been
included
in
Core
Plus
Bond
Account’s
statement
of
operations
since
June
7,
2019.
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
76
Effective
June
7,
2019,
LargeCap
Growth
Account
I
acquired
all
the
assets
and
assumed
all
the
liabilities
of
LargeCap
Growth
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
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
non-taxable
exchange
of
4,657,000
shares
from
LargeCap
Growth
Account
for
3,150,000
shares
valued
at
$112,835,000
of
LargeCap
Growth
Account
I
at
an
approximate
exchange
rate
of
.68
and
.67
for
Class
1
and
Class
2
shares,
respectively.
The
investment
securities
of
LargeCap
Growth
Account,
with
a
fair
value
of
approximately
$109,603,000
and
a
cost
of
$97,236,000
and
$3,176,000
cash
were
the
primary
assets
acquired
by
LargeCap
Growth
Account
I
on
June
7,
2019.
For
financial
reporting
purposes,
assets
received
and
shares
issued
by
LargeCap
Growth
Account
I
were
recorded
at
fair
value;
however,
the
cost
basis
of
the
investments
received
from
LargeCap
Growth
Account
were
maintained
through
the
reorganization.
The
net
assets
of
LargeCap
Growth
Account
and
LargeCap
Growth
Account
I
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$112,835,000
($650,000
of
accumulated
realized
gain)
and
$351,045,000,
respectively.
The
net
assets
of
LargeCap
Growth
Account
I
immediately
following
the
acquisition
were
$463,880,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
LargeCap
Growth
Account
I,
LargeCap
Growth
Account
I’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$132,000
of
net
investment
income,
$134,661,000
of
net
realized
and
unrealized
gain
on
investments,
and
$134,793,000
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
LargeCap
Growth
Account
that
have
been
included
in
LargeCap
Growth
Account
I’s
statement
of
operations
since
June
7,
2019.
Effective
June
7,
2019,
SAM
Flexible
Income
Portfolio
acquired
all
the
assets
and
assumed
all
the
liabilities
of
Multi-Asset
Income
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
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
non-taxable
exchange
of
43,000
shares
from
Multi-Asset
Income
Account
for
35,000
shares
valued
at
$453,000
of
SAM
Flexible
Income
Portfolio
at
an
approximate
exchange
rate
of
.83
and
.83
for
Class
1
and
Class
2
shares,
respectively.
$457,000
cash
was
the
primary
asset
acquired
by
SAM
Flexible
Income
Portfolio
on
June
7,
2019.
The
net
assets
of
Multi-Asset
Income
Account
and
SAM
Flexible
Income
Portfolio
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$453,000
and
$185,924,000,
respectively.
The
net
assets
of
SAM
Flexible
Income
Portfolio
immediately
following
the
acquisition
were
$186,377,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
SAM
Flexible
Income
Portfolio,
SAM
Flexible
Income
Portfolio’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$4,900,000
of
net
investment
income,
$18,302,000
of
net
realized
and
unrealized
gain
on
investments,
and
$23,202,000
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
Multi-Asset
Income
Account
that
have
been
included
in
SAM
Flexible
Income
Portfolio’s
statement
of
operations
since
June
7,
2019.
Effective
June
14,
2019,
Class
2
shares
discontinued
and
converted
into
Class
1
shares
for
the
following
Accounts:
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:
Core
Plus
Bond
Account
Principal
LifeTime
2020
Account
Diversified
International
Account
Principal
LifeTime
2030
Account
Government
&
High-Quality
Bond
Account
Principal
LifeTime
2040
Account
International
Emerging
Markets
Account
Principal
LifeTime
2050
Account
LargeCap
Growth
Account
I
Short-Term
Income
Account
1.
Organization
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
77
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,
and
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,
and
Diversified
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,
which
are
valued
at
closing
exchange
price.
The
Accounts
also
invest
in
other
publicly
traded
investment
funds.
Other
publicly
traded
investment
funds
are
valued
at
the
respective
fund’s
net
asset
value.
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,
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
in
American
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
Fund
to
value
such
securities
at
prices
at
which
it
is
expected
those
shares
may
be
sold,
and
the
Manager
or
any
sub-advisor
is
authorized
to
make
such
determinations
subject
to
such
oversight
by
the
Fund’s
Board
of
Directors
as
may
occasionally
be
necessary.
Currency
Translation.
Foreign
holdings
are
translated
to
U.S.
dollars
using
the
exchange
rate
at
the
daily
close
of
the
New
York
Stock
Exchange.
The
identified
cost
of
the
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.
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
78
The
following accounts
held
securities
denominated
in
foreign
currencies
that
exceeded
5%
of
net
assets
of
the
respective
account as
of
December
31,
2019:
Income
and
Investment
Transactions.
The Accounts
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.
Callable
debt
securities
purchased
at
a
premium
are
amortized
to
the
earliest
call
date.
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
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
amortization
of
premiums
and
discounts,
net
operating
losses,
foreign
currency
transactions,
options
and
futures
contracts,
certain
defaulted
securities,
sales
of
passive
foreign
investment
companies,
losses
deferred
due
to
wash
sales,
mortgage-backed
securities,
certain
preferred
securities,
swap
agreements,
short
sales,
partnership
investments,
Real
Estate
Investment
Trusts
(“REITs”),
utilization
of
earnings
and
profits
distributed
to
shareholders
on
redemption
of
shares,
and
limitations
imposed
by
Sections
381
–
384
of
the
Internal
Revenue
Code.
Permanent
book
and
tax
basis
differences
are
reclassified
within
the
capital
accounts
based
on
federal
tax-basis
treatment;
temporary
differences
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
current
and
accumulated
earnings
and
profits
for
federal
income
tax
purposes,
they
are
reported
as
return
of
capital
distributions.
Distributions
from
REITs
may
be
characterized
as
ordinary
income,
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.
Diversified
International
Account
Euro
18.8%
Japanese
Yen
15.2
British
Pound
Sterling
9.2
Swiss
Franc
9.1
Canadian
Dollar
8.5
Hong
Kong
Dollar
5.1
International
Emerging
Markets
Account
Hong
Kong
Dollar
18.3%
South
Korean
Won
13.4
Indian
Rupee
12.0
New
Taiwan
Dollar
10.7
Brazilian
Real
7.9
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
79
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 year
ended
December
31,
2019,
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
2016-2018.
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,
2019,
Diversified
International
Account
had
a
deferred
tax
liability
of
$10,000
relating
to
foreign
securities.
Recent
Accounting
Pronouncements.
In
August
2018,
the
Financial
Accounting
Standards
Board
issued
Accounting
Standards
Update
("ASU")
No.
2018-13,
Fair
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.
The
Accounts
adopted
the
removal
and
modification
of
applicable
disclosures
during
the
year
ended
December
31,
2018
and
will
adopt
the
additional
disclosures
on
the
effective
date
of
the
ASU.
In
March
2017,
the
Financial
Accounting
Standards
Board
issued
ASU
No.
2017-08,
Premium
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 have
adopted
the
new
amendment
as
of
January
1,
2019.
The
adoption
of
the
ASU
resulted
in
a
cumulative
effective
adjustment
to
components
within
total
distributable
earnings
(accumulated
loss)
on
the
statements
of
assets
and
liabilities
as
of
the
beginning
of
the
fiscal
year.
This
cumulative
effective
adjustment did
not
have
a
material
impact
on
the
financial
statements
and
did
not
impact
net
assets
of
the
Accounts.
3.
Operating
Policies
Borrowings.
Pursuant
to
an
exemptive
order
issued
by
the
Securities
and
Exchange
Commission
(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
Interbank
Offered Rate
("LIBOR")
rate
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
the
statements
of
operations.
There
were
no
outstanding
loans
or borrowings
as
of
the
year ended
December
31,
2019.
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
80
During
the year
ended
December
31,
2019, Accounts
lending
to
the
Facility
were
as
follows
(amounts
in
thousands):
During
the year
ended
December
31,
2019, Accounts
borrowing
from
the
Facility
were
as
follows
(amounts
in
thousands):
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.
The
interest
expense
associated
with
these
borrowings
is
included
in
other
expenses
on
the
statements
of
operations.
The
Accounts
did
not
borrow
against
the
line
of
credit
during
the
year
ended
December
31,
2019
.
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,
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.
Average
Daily
Amount
Loaned
Weighted
Average
Annual
Interest
Rate
Bond
Market
Index
Account
$335
3.21%
Core
Plus
Bond
Account
104
2.77
Diversified
Balanced
Volatility
Control
Account
1
2.66
Diversified
Growth
Volatility
Control
Account
6
2.66
Diversified
International
Account
3
2.85
Equity
Income
Account
16
2.36
Government
&
High
Quality
Bond
Account
22
2.87
International
Emerging
Markets
Account
1
2.70
LargeCap
Growth
Account
I
17
2.94
LargeCap
S&P
500
Index
Account
360
3.05
LargeCap
S&P
500
Managed
Volatility
Index
Account
87
2.83
MidCap
Account
—
2.69
Principal
Capital
Appreciation
Account
5
2.97
Real
Estate
Securities
Account
5
2.59
Short-Term
Income
Account
25
2.96
SmallCap
Account
14
2.80
Average
Daily
Outstanding
Balance
Weighted
Average
Annual
Interest
Rate
Diversified
Balanced
Volatility
Control
Account
$12
2.67%
Diversified
Growth
Volatility
Control
Account
45
2.58
Diversified
International
Account
33
2.73
Government
&
High
Quality
Bond
Account
1
3.00
International
Emerging
Markets
Account
8
2.54
LargeCap
S&P
500
Index
Account
117
2.93
MidCap
Account
79
2.83
Real
Estate
Securities
Account
25
2.35
Short-Term
Income
Account
4
3.02
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
81
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,
as
stated
in
the
counterparties’
master
netting
agreements
(“Master
Netting
Agreements”),
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.
Collateral
information
relating
to
securities
on
loan
is
included
in
the
securities
lending
note
to
financial
statements.
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,
2019,
no
Accounts
had
financial
assets
and
liabilities
subject
to
Master
Netting
Agreements
or
similar
agreements.
Cross
Trades.
The
Accounts
may
engage
in
cross
trades.
A
cross
trade
is
a
purchase
or
sale
transaction
between
affiliated
portfolios
executed
directly
or
through
an
intermediary.
Mutual
funds
and
other
managed
portfolios
may
be
considered
affiliated
if
they
have
a
common
investment
advisor,
so
an
account may
be
considered
affiliated
with
any
portfolio
for
which
the
account's
sub-advisor
acts
as
an
investment
advisor.
Such
transactions
are
permissible
provided
that
the
conditions
of
Rule
17a-7
under
the
Investment
Company
Act
of
1940
are
satisfied.
Deposits
with
Counterparty.
Cash
pledged
as
collateral
is
reflected
as
an
asset
on
the
statements
of
assets
and
liabilities
as
deposits
with
counterparty.
There
are
a
variety
of
security
types
which
require
varying
levels
of
pledged
collateral.
Customer
account
agreements
govern
cleared
derivatives
transactions
such
as
futures
contracts
and
certain
swap
agreements.
Such
transactions
require
posting
of
initial
margin
as
determined
by
each
relevant
clearing
agency
which
is
segregated
in
an
account
at
a
futures
commission
merchant
(“FCM”)
registered
with
the
Commodity
Futures
Trading
Commission.
International
Swaps
and
Derivatives
Association
(“ISDA”)
accounts
are
maintained
in
a
segregated
account
at
the
custodian
for
over-the-counter
("OTC")
derivatives.
Master
Securities
Forward
Transaction
Agreements
("MSFTA")
accounts
are
also
maintained
in
a
segregated
account
at
the
custodian
for
collateral
related
to
forward
currency
contracts
and
"to-be-announced"
("TBA")
securities.
Certain
of
the Accounts may
pledge
cash
to
a
broker
for
securities
sold
short.
As
of
December
31,
2019,
deposits
with
counterparty
were
as
follows
(amounts
in
thousands):
Deposits
from
Counterparty.
Cash
received
from
a
counterparty
as
collateral
is
reflected
as
a
liability
on
the
statements
of
assets
and
liabilities
as
deposits
from
counterparty.
There
are
a
variety
of
security
types
which
require
varying
levels
of
pledged
collateral.
The
collateral
posted
to
the Accounts
by
the
broker
is
received
in
the
account’s
custodian
account.
As
of
December
31,
2019,
there
were
no
deposits
from
counterparty.
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.
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
FCM
(Futures
and
Cleared
Swaps)
ISDA
(OTC
Derivatives)
MSFTA
(Forward
Currency
Contracts
and
TBA
Securities)
Total
Deposits
with
Counterparty
Core
Plus
Bond
Account
$
—
$
1
$
8
$
9
Government
&
High
Quality
Bond
Account
149
—
—
149
LargeCap
Growth
Account
I
120
—
—
120
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
82
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
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
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
(accumulated
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
the
Accounts
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
year
ended
December
31,
2019
,
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
an
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
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
an
account as
a
writer
of
put
options
could
be
required
to
make
is
equal
to
the
notional
amount
multiplied
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
83
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
Fund's
policy
that
the
counterparties’
custodian
takes
possession
of
the
underlying
collateral
securities.
The
fair
value
of
the
collateral
is
at
all
times
at
least
equal
to
the
total
amount
of
the
repurchase
obligation.
In
the
event
of
default
on
the
obligation
to
repurchase,
the
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.
Securities
Lending.
To
earn
additional
income,
certain
of
the
Accounts
may
lend
portfolio
securities
to
approved
brokerage
firms.
The
Accounts
receive
collateral,
in
the
form
of
cash,
against
the
loaned
securities.
During
the
period
of
the
loan,
the
borrower
must
maintain
collateral
in
an
amount
not
less
than
102%
of
the
market
value
of
the
domestic
and
foreign
fixed
income
loaned
securities
and
105%
of
the
market
value
of
the
foreign
equity
loaned
securities. The
market
value
of
the
loaned
securities
is
determined
at
the
close
of
business
of
the
Accounts
and
any
additional
required
collateral
is
delivered
to
the
Accounts
on
the
next
business
day.
The
cash
collateral
received
is
usually
invested
in
a
SEC-registered
money
market
mutual
fund
and
the
Accounts
could
realize
a
loss
on
such
investments.
Further,
the
Accounts
could
experience
a
delay
in
recovering
its
securities
and
possible
loss
of
income
or
value
if
the
borrower
fails
to
return
them.
Security
lending
income,
net
of
related
fees, is
shown
on
the
statements
of
operations.
As
of
December
31,
2019,
the
Accounts
had
securities
on
loan
as
follows
(amounts
in
thousands):
Senior
Floating
Rate
Interests.
The
Accounts
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
the
LIBOR
rate.
Senior
floating
rate
interests
generally
are
subject
to
mandatory
and/or
optional
prepayment.
Because
of
these
mandatory
prepayment
conditions
and
because
there
may
be
significant
economic
incentives
for
the
Borrower
to
repay,
prepayments
of
senior
floating
rate
interests
Market
Value
Collateral
Value
Bond
Market
Index
Account
$
10,142
$
10,381
Core
Plus
Bond
Account
1,082
1,123
Diversified
International
Account
—
—
Equity
Income
Account
8
9
Government
&
High
Quality
Bond
Account
2,454
2,514
LargeCap
Growth
Account
I
1,009
1,023
LargeCap
S&P
500
Index
Account
—
—
LargeCap
S&P
500
Managed
Volatility
Index
Account
39
40
MidCap
Account
1,812
1,850
Short-Term
Income
Account
300
309
SmallCap
Account
8,924
9,126
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
84
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
applicable.
As
of
December
31,
2019
,
the
commitments
were
as
follows
(amounts
in
thousands):
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
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
schedules
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
entered
into
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.
Centrally
cleared
swaps
are
valued
using
the
last
traded
price
from
the
preliminary
trading
exchange.
OTC
swaps
are
modeled
taking
into
account
the
counterparties’
creditworthiness
and
using
a
series
of
techniques,
including
simulation
models.
Changes
in
value
are
recorded
as
unrealized
gain
or
loss.
These
unrealized
gains
or
losses
are
included
as
a
component
of
total
distributable
earnings
(accumulated
loss)
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),
Unfunded
Loan
Commitment
Unrealized
gain/loss
Core
Plus
Bond
Account
$
5
$
–
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
85
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
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,
2019
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.
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
86
Underlying
Funds.
The
performance
and
risks
of
each
of
the
Principal
LifeTime
Accounts,
each
of
the
SAM
Portfolios,
Diversified
Balanced
Account,
Diversified
Balanced
Volatility
Control
Account,
Diversified
Balanced
Managed
Volatility
Account,
Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Growth
Volatility
Control
Account,
and
Diversified
Income
Account
(singly,
“a
fund
of
funds”
and
collectively,
“the
funds
of
funds”)
directly
corresponds
to
the
performance
and
risks
of
the
Underlying
Funds
in
which
the
fund
of
funds
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.
Shareholder
reports
for
the
Underlying
Funds
can
be
found
online
at
www.principalfunds.com.
As
of
December
31,
2019,
series
of
the
Fund
owned
the
following
percentages,
in
the
aggregate,
of
the
outstanding
shares
of
the
Accounts
listed
below:
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
the FNMA
and
the
Federal
Home
Loan
Mortgage
Corporation
(“FHLMC”).
The
FNMA
is
a
government
sponsored
corporation,
the
common
stock
of
which
is
owned
entirely
by
private
stockholders.
The
FNMA
purchases
conventional
residential
mortgages
from
a
list
of
approved
seller/servicers
which
include
state
and
federally
chartered
savings
and
loan
associations,
mutual
savings
banks,
commercial
banks,
credit
unions,
and
mortgage
bankers.
Pass-through
securities
issued
by
the
FNMA
are
guaranteed
as
to
the
timely
payment
of
principal
and
interest
by
the
FNMA,
but
are
not
backed
by
the
full
faith
and
credit
of
the
U.S.
Government.
The
FHLMC
issues
participation
certificates,
which
are
pass-through
securities,
each
representing
an
undivided
interest
in
a
pool
of
residential
mortgages.
The
FHLMC
guarantees
the
timely
payment
of
interest
and
ultimate
collection
of
principal,
but
participation
certificates
are
not
backed
by
the
full
faith
and
credit
of
the
U.S.
Government.
Derivatives.
The
following
tables
provide
information
about
where
in
the
statements
of
assets
and
liabilities
and
statements
of
operations
information
about
derivatives
can
be
found
(amounts
in
thousands):
Account
Total
Percentage
of
Outstanding
Shares
Owned
Bond
Market
Index
Account
99.33%
Equity
Income
Account
31.70
Government
&
High
Quality
Bond
Account
41.77
LargeCap
S&P
500
Index
Account
87.33
LargeCap
S&P
500
Managed
Volatility
Index
Account
100.00
Asset
Derivatives
December
31,
2019
Liability
Derivatives
December
31,
2019
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
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
19
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
81
*
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
185
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
87
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
Core
Plus
Bond
Account
and
Government
&
High
Quality
Bond
Account.
The
notional
values
of
the
futures
contracts
will
vary
in
accordance
with
changing
duration
of
these
funds.
The
following
table
includes
a
summary
of
the
average
quarterly
outstanding
notional
by
derivative
instrument
type
for
the year
ended
December
31,
2019 (amounts
in
thousands):
Asset
Derivatives
December
31,
2019
Liability
Derivatives
December
31,
2019
Derivatives
not
accounted
for
as
hedging
instruments
Statement
of
Assets
and
Liabilities
Location
Fair
Value
Statement
of
Assets
and
Liabilities
Location
Fair
Value
LargeCap
Growth
Account
I
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
11
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
LargeCap
S&P
500
Index
Account
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
613
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
LargeCap
S&P
500
Managed
Volatility
Index
Account
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
511
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
295
*
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.
Derivatives
not
accounted
for
as
hedging
instruments
Location
of
Gain
or
(Loss)
on
Derivatives
Recognized
in
Statement
of
Operations
Net
Realized
Gain
or
(Loss)
on
Derivatives
Recognized
in
Statement
of
Operations
Net
Change
in
Unrealized
Appreciation/
(Depreciation)
of
Derivatives
Recognized
in
Statement
of Operations
Core
Plus
Bond
Account
Credit
contracts
Net
realized
gain
(loss)
from
Swap
agreements/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Swap
agreements
$
(768)
$
(207)
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
616
$
(381)
Total
$
(152)
$
(588)
Diversified
Balanced
Volatility
Control
Account
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
(256)
$
48
Diversified
Growth
Volatility
Control
Account
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
(4,476)
$
1,487
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
271
$
185
LargeCap
Growth
Account
I
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
461
$
13
LargeCap
S&P
500
Index
Account
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
9,674
$
1,890
LargeCap
S&P
500
Managed
Volatility
Index
Account
Equity
contracts
Net
realized
gain
(loss)
from
Investment
transactions,
Futures
contracts,
and
Options
and
swaptions/Net
change
in
unrealized
appreciation/
(depreciation)
of
Investments,
Futures
contracts,
and
Options
and
swaptions
$
451
$
314
Contract
Type
Derivative
Type
Average
Notional
Core
Plus
Bond
Account
Credit
Contracts
Exchange
Cleared
Credit
Default
Swaps
-
Buy
Protection
$
6,550
Interest
Rate
Contracts
Futures
-
Long
6,579
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
88
4.
Fair
Valuation
Fair
value
is
defined
as
the
price
that
the Accounts
would
receive
upon
selling
a
security
or
transferring
a
liability in
a
timely
transaction
to
an
independent
buyer
in
the
principal
or
most
advantageous
market
of
the
security
at
the
measurement
date.
In
determining
fair
value,
the 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 are
generally 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.
Contract
Type
Derivative
Type
Average
Notional
Core
Plus
Bond
Account
(continued)
Futures
-
Short
$
9,549
Government
&
High
Quality
Bond
Account
Interest
Rate
Contracts
Futures
-
Short
8,362
LargeCap
Growth
Account
I
Equity
Contracts
Futures
-
Long
3,064
LargeCap
S&P
500
Index
Account
Equity
Contracts
Futures
-
Long
22,620
LargeCap
S&P
500
Managed
Volatility
Index
Account
Equity
Contracts
Futures
-
Long
2,011
Purchased
Options
37
Written
Options
37
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
89
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
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,
2019
in
valuing
the
Accounts'
securities
carried
at
value
(amounts
in
thousands):
Account
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Bond
Market
Index
Account
Bonds*
$
—
$
810,926
$
—
$
810,926
Investment
Companies
111,71
0
—
—
111,71
0
Municipal
Bonds*
—
18,822
—
18,822
U.S.
Government
&
Government
Agency
Obligations*
—
1,664,599
—
1,664,599
Total
investments
in
securities
$
111,71
0
$
2,494,347
$
—
$
2,606,05
7
Core
Plus
Bond
Account
Bonds*
—
145,973
—
145,973
Investment
Companies
16,605
—
—
16,605
Preferred
Stocks
Consumer,
Non-cyclical
—
—
5
5
Senior
Floating
Rate
Interests*
—
2,317
—
2,317
U.S.
Government
&
Government
Agency
Obligations*
—
103,902
—
103,902
Total
investments
in
securities
$
16,605
$
252,192
$
5
$
268,802
Assets
Interest
Rate
Contracts
Futures**
19
—
—
19
Liabilities
Interest
Rate
Contracts
Futures**
(81)
—
—
(81)
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
90
Account
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Diversified
Balanced
Account
Bonds*
$
—
$
2
$
—
$
2
Investment
Companies
1,029,217
—
—
1,029,217
Preferred
Stocks
Consumer,
Non-cyclical
—
—
—
—
Total
investments
in
securities
$
1,029,217
$
2
$
—
$
1,029,219
Diversified
Balanced
Managed
Volatility
Account
Investment
Companies
176,286
—
—
176,286
Total
investments
in
securities
$
176,286
$
—
$
—
$
176,286
Diversified
Balanced
Volatility
Control
Account
Investment
Companies
145,78
8
—
—
145,788
Total
investments
in
securities
$
145,788
$
—
$
—
$
145,788
Diversified
Growth
Account
Investment
Companies
3,773,120
—
—
3,773,120
Total
investments
in
securities
$
3,773,120
$
—
$
—
$
3,773,120
Diversified
Growth
Managed
Volatility
Account
Investment
Companies
353,783
—
—
353,783
Total
investments
in
securities
$
353,783
$
—
$
—
$
353,783
Diversified
Growth
Volatility
Control
Account
Investment
Companies
767,199
—
—
767,
199
Total
investments
in
securities
$
767,199
$
—
$
—
$
767,199
Diversified
Income
Account
Investment
Companies
279,966
—
—
279,96
6
Total
investments
in
securities
$
279,966
$
—
$
—
$
279,966
Diversified
International
Account
Common
Stocks
Basic
Materials
2,516
7,701
—
10,217
Communications
6,295
15,178
—
21,473
Consumer,
Cyclical
4,444
40,563
—
45,007
Consumer,
Non-cyclical
1,812
40,746
—
42,558
Energy
7,309
10,643
—
17,952
Financial
16,894
50,784
—
67,678
Industrial
4,160
19,224
—
23,384
Technology
2,929
25,040
—
27,969
Utilities
—
6,443
—
6,443
Investment
Companies
2,370
—
—
2,370
Preferred
Stocks
1,110
—
—
1,110
Total
investments
in
securities
$
49,839
$
216,322
$
—
$
266,161
Equity
Income
Account
Common
Stocks*
757,246
—
—
757,246
Investment
Companies
14,857
—
—
14,857
Total
investments
in
securities
$
772,103
$
—
$
—
$
772,103
Government
&
High
Quality
Bond
Account
Bonds*
—
67,340
—
67,340
Investment
Companies
9,160
—
—
9,160
U.S.
Government
&
Government
Agency
Obligations*
—
168,35
8
—
168,35
8
Total
investments
in
securities
$
9,160
$
235,69
8
$
—
$
244,85
8
Assets
Interest
Rate
Contracts
Futures**
185
—
—
185
International
Emerging
Markets
Account
Common
Stocks
Basic
Materials
1,647
2,319
—
3,966
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
91
Account
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
International
Emerging
Markets
Account
Communications
$
9,064
$
8,958
$
—
$
18,022
Consumer,
Cyclical
1,981
3,840
—
5,821
Consumer,
Non-cyclical
807
4,887
—
5,694
Energy
1,186
7,480
—
8,666
Financial
4,257
18,957
—
23,214
Industrial
—
6,173
—
6,173
Technology
1,175
12,515
—
13,690
Utilities
—
1,325
—
1,325
Investment
Companies
637
—
—
637
Preferred
Stocks
2,038
—
—
2,038
Total
investments
in
securities
$
22,792
$
66,454
$
—
$
89,246
LargeCap
Growth
Account
I
Common
Stocks
Basic
Materials
8,595
—
—
8,595
Communications
106,013
—
—
106,013
Consumer,
Cyclical
32,548
—
—
32,548
Consumer,
Non-cyclical
134,438
—
—
134,438
Energy
1,475
—
—
1,475
Financial
37,610
—
—
37,610
Industrial
44,838
—
—
44,838
Technology
121,307
90
—
121,397
Utilities
4,720
—
—
4,720
Convertible
Preferred
Stocks
Communications
—
—
631
631
Investment
Companies
6,558
—
—
6,558
Preferred
Stocks
Communications
—
119
—
119
Consumer,
Cyclical
—
657
—
657
Technology
—
209
177
386
Total
investments
in
securities
$
498,102
$
1,075
$
808
$
499,985
Assets
Equity
Contracts
Futures**
11
—
—
$
11
LargeCap
S&P
500
Index
Account
Common
Stocks*
2,672,864
—
—
2,672,864
Investment
Companies
39,806
—
—
39,806
Total
investments
in
securities
$
2,712,670
$
—
$
—
$
2,712,670
Assets
Equity
Contracts
Futures**
613
—
—
613
LargeCap
S&P
500
Managed
Volatility
Index
Account
Common
Stocks*
203,864
—
—
203,864
Investment
Companies
14,171
—
—
14,171
Purchased
Options
458
—
—
458
Total
investments
in
securities
$
218,493
$
—
$
—
$
218,493
Assets
Equity
Contracts
Futures**
53
—
—
53
Liabilities
Equity
Contracts
Written
Options
(295)
—
—
(295)
MidCap
Account
Common
Stocks
Basic
Materials
4,177
—
—
4,177
Communications
67,320
—
—
67,320
Consumer,
Cyclical
134,831
—
—
134,831
Consumer,
Non-cyclical
70,628
147
—
70,775
Financial
170,739
—
—
170,739
Industrial
78,697
—
—
78,697
Technology
67,464
—
—
67,464
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
92
Account
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
MidCap
Account
Utilities
$
12,320
$
—
$
—
$
12,320
Investment
Companies
2,102
—
—
2,102
Total
investments
in
securities
$
608,278
$
147
$
—
$
608,425
Principal
Capital
Appreciation
Account
Common
Stocks*
154,351
—
—
154,351
Investment
Companies
2,945
—
—
2,945
Total
investments
in
securities
$
157,296
$
—
$
—
$
157,296
Principal
LifeTime
2010
Account
Investment
Companies
31,505
—
—
31,505
Total
investments
in
securities
$
31,505
$
—
$
—
$
31,505
Principal
LifeTime
2020
Account
Investment
Companies
190,480
—
—
190,480
Total
investments
in
securities
$
190,480
$
—
$
—
$
190,480
Principal
LifeTime
2030
Account
Investment
Companies
182,178
—
—
182,178
Total
investments
in
securities
$
182,178
$
—
$
—
$
182,178
Principal
LifeTime
2040
Account
Investment
Companies
85,410
—
—
85,410
Total
investments
in
securities
$
85,410
$
—
$
—
$
85,410
Principal
LifeTime
2050
Account
Investment
Companies
38,887
—
—
38,887
Total
investments
in
securities
$
38,887
$
—
$
—
$
38,887
Principal
LifeTime
2060
Account
Investment
Companies
8,136
—
—
8,136
Total
investments
in
securities
$
8,136
$
—
$
—
$
8,136
Principal
LifeTime
Strategic
Income
Account
Investment
Companies
26,285
—
—
26,285
Total
investments
in
securities
$
26,285
$
—
$
—
$
26,285
Real
Estate
Securities
Account
Common
Stocks*
160,191
—
—
160,191
Investment
Companies
1,13
0
—
—
1,13
0
Total
investments
in
securities
$
161,32
1
$
—
$
—
$
161,32
1
SAM
Balanced
Portfolio
Investment
Companies
698,192
—
—
698,192
Total
investments
in
securities
$
698,192
$
—
$
—
$
698,192
SAM
Conservative
Balanced
Portfolio
Investment
Companies
189,384
—
—
189,384
Total
investments
in
securities
$
189,384
$
—
$
—
$
189,384
SAM
Conservative
Growth
Portfolio
Investment
Companies
356,53
4
—
—
356,53
4
Total
investments
in
securities
$
356,53
4
$
—
$
—
$
356,53
4
SAM
Flexible
Income
Portfolio
Investment
Companies
188,444
—
—
188,444
Total
investments
in
securities
$
188,444
$
—
$
—
$
188,444
SAM
Strategic
Growth
Portfolio
Investment
Companies
315,191
—
—
315,191
Total
investments
in
securities
$
315,191
$
—
$
—
$
315,191
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
93
*For
additional
detail
regarding
sector
classifications,
please
see
the
schedules
of
investments.
**Futures
are
presented
at
the
unrealized
appreciation/(depreciation)
of
the
instrument.
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.
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
are
as
follows:
Account
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Short-Term
Income
Account
Bonds*
$
—
$
118,831
$
—
$
118,831
Investment
Companies
4,753
—
—
4,753
U.S.
Government
&
Government
Agency
Obligations*
—
5,706
—
5,706
Total
investments
in
securities
$
4,753
$
124,537
$
—
$
129,290
SmallCap
Account
Common
Stocks*
188,262
—
—
188,262
Investment
Companies
12,294
—
—
12,294
Total
investments
in
securities
$
200,556
$
—
$
—
$
200,556
Net
Assets
of
Account
(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
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%
International
Emerging
Markets
Account
1.25
1.20
1.15
1.10
1.05
Net
Assets
of
Account
(in
millions)
First
$200
Next
$300
Over
$500
Short-Term
Income
Account
.50%
.45%
.40%
Net
Assets
of
Account
(in
millions)
First
$500
Over
$500
Principal
Capital
Appreciation
Account
.625%
.50%
Net
Assets
of
Account
(in
billions)
First
$2
Over
$2
Government
&
High
Quality
Bond
Account
.50%
.45%
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
94
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
expenses
borne
by
the
Manager
are
subject
to
reimbursement
by
the Accounts
through
the
fiscal
year
end,
provided
no
reimbursement
will
be
made
if
it
would
result
in
the
Accounts
exceeding
the
total
operating
expense
limits. Any
amounts
outstanding
at
the
end
of
the
year
are
shown
as
an
expense
reimbursement
from
Manager
or
expense
reimbursement
to
Manager
on
the
statements
of
assets
and
liabilities.
The
operating
expense
limits,
which
expired
April
30,
2019, were
as
follows:
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:
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
expense
limits are
as
follows:
*Period
from
June
10,
2019
through
December
31,
2019.
Prior
to
June
10,
2019,
there
was
no
contractual
limit.
The
Manager
has
contractually
agreed
to
reduce
Short-Term
Income
Account’s
expenses
by
.01%
through
the
period
ended
April
30,
2020.
All
Net
Assets
Bond
Market
Index
Account
(Effective
July
1,
2019)
.14%
Bond
Market
Index
Account
(Prior
to
July
1,
2019)
.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
Account
.45
Period
from
January
1,
2019
through
April
30,
2019
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
Period
from
January
1,
2019
through
December
31,
2019
Expiration
Bond
Market
Index
Account
.100%
June
30,
2019
International
Emerging
Markets
Account
.150
April
30,
2020
LargeCap
Growth
Account
I
.016
April
30,
2020
Real
Estate
Securities
Account
.020
April
30,
2020
Period
from
January
1,
2019
through
December
31,
2019
Class
1
Class
2
Expiration
Diversified
Balanced
Managed
Volatility
Account
N/A
.31%
April
30,
2020
Diversified
Balanced
Volatility
Control
Account
N/A
.39
April
30,
2020
Diversified
Growth
Managed
Volatility
Account
N/A
.31
April
30,
2020
Diversified
Growth
Volatility
Control
Account
N/A
.39
April
30,
2019
International
Emerging
Markets
Account
1.20%
N/A
April
30,
2020
LargeCap
Growth
Account
I
.69*
N/A
April
30,
2021
Principal
LifeTime
2060
Account
.10
N/A
April
30,
2020
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
95
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
operating
expense
limits
are
as
follows:
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
the
Accounts.
A
portion
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.
At
December
31,
2019,
the
Manager,
Principal National
Life
Insurance
Company
(an
affiliate
of
the
Manager), 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):
Expense
Limit
Class
2
Diversified
Balanced
Account
.31%
Diversified
Growth
Account
.31
Diversified
Income
Account
.31
Class
1
Class
2
Bond
Market
Index
Account
1,578
N/A
Core
Plus
Bond
Account
21,420
N/A
Diversified
Balanced
Account
2,463
59,723
Diversified
Balanced
Managed
Volatility
Account
N/A
13,653
Diversified
Balanced
Volatility
Control
Account
N/A
12,411
Diversified
Growth
Account
N/A
201,868
Diversified
Growth
Managed
Volatility
Account
N/A
26,141
Diversified
Growth
Volatility
Control
Account
N/A
63,775
Diversified
Income
Account
N/A
20,251
Diversified
International
Account
16,770
N/A
Equity
Income
Account
13,465
274
Government
&
High
Quality
Bond
Account
13,958
N/A
International
Emerging
Markets
Account
5,237
N/A
LargeCap
Growth
Account
I
13,082
N/A
LargeCap
S&P
500
Index
Account
16,215
793
MidCap
Account
9,631
N/A
Principal
Capital
Appreciation
Account
4,008
174
Principal
LifeTime
2010
Account
2,470
N/A
Principal
LifeTime
2020
Account
13,704
N/A
Principal
LifeTime
2030
Account
13,883
N/A
Principal
LifeTime
2040
Account
5,267
N/A
Principal
LifeTime
2050
Account
2,495
N/A
Principal
LifeTime
2060
Account
554
N/A
Principal
LifeTime
Strategic
Income
Account
2,204
N/A
Real
Estate
Securities
Account
7,215
283
SAM
Balanced
Portfolio
33,876
1,474
SAM
Conservative
Balanced
Portfolio
13,166
742
SAM
Conservative
Growth
Portfolio
9,258
798
SAM
Flexible
Income
Portfolio
12,004
1,354
SAM
Strategic
Growth
Portfolio
7,316
456
Short-Term
Income
Account
50,051
N/A
SmallCap
Account
11,789
161
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
96
6.
Capital
Share
Transactions
The
following
table
reflects
the
conversion
of
Class 2
shares
into
Class 1
shares
(reflected
in
the
statements
of
changes
in
net
assets
as
Class 2
shares
and
dollars
redeemed
and
Class 1
dollars
sold)
for
the year ended December
31,
2019
(amounts
in
thousands).
7.
Investment
Transactions
For
the year ended
December
31,
2019,
the
cost
of
investment
securities
purchased
and
proceeds
from
investment
securities
sold
(not
including
short-term
investments,
return
of
capital, and
U.S.
government
securities)
by
the Accounts
were
as
follows
(amounts
in
thousands):
Shares
Dollars
Core
Plus
Bond
Account
129
$
1,465
Diversified
International
Account
147
2,256
Government
&
High-Quality
Bond
Account
274
2,691
International
Emerging
Markets
Account
117
1,851
LargeCap
Growth
Account
I
145
5,163
Principal
LifeTime
2020
Account
105
1,447
Principal
LifeTime
2030
Account
167
2,145
Principal
LifeTime
2040
Account
57
895
Principal
LifeTime
2050
Account
75
1,139
Short-Term
Income
Account
1,570
4,045
Purchases
Sales
Covers
on
Securities
Sold
Short
Securities
Sold
Short
Bond
Market
Index
Account
$
1,229,319
$
1,189,109
$
26,556
$
16,952
Core
Plus
Bond
Account
314,001
390,801
—
—
Diversified
Balanced
Account
174,616
282,589
—
—
Diversified
Balanced
Managed
Volatility
Account
36,535
41,718
—
—
Diversified
Balanced
Volatility
Control
Account
114,222
32,957
—
—
Diversified
Growth
Account
591,089
850,022
—
—
Diversified
Growth
Managed
Volatility
Account
65,235
81,090
—
—
Diversified
Growth
Volatility
Control
Account
584,688
197,733
—
—
Diversified
Income
Account
78,766
67,500
—
—
Diversified
International
Account
109,529
125,549
—
—
Equity
Income
Account
127,487
187,915
—
—
Government
&
High
Quality
Bond
Account
44,384
35,508
—
—
International
Emerging
Markets
Account
96,964
103,223
—
—
LargeCap
Growth
Account
I
124,048
149,167
—
—
LargeCap
S&P
500
Index
Account
87,074
378,636
—
—
LargeCap
S&P
500
Managed
Volatility
Index
Account
7,749
41,146
—
—
MidCap
Account
60,288
137,847
—
—
Principal
Capital
Appreciation
Account
43,488
62,366
—
—
Principal
LifeTime
2010
Account
19,492
23,081
—
—
Principal
LifeTime
2020
Account
98,785
105,754
—
—
Principal
LifeTime
2030
Account
73,925
59,064
—
—
Principal
LifeTime
2040
Account
31,161
21,621
—
—
Principal
LifeTime
2050
Account
10,025
8,927
—
—
Principal
LifeTime
2060
Account
4,860
2,533
—
—
Principal
LifeTime
Strategic
Income
Account
20,03
4
16,3
27
—
—
Real
Estate
Securities
Account
30,114
43,179
—
—
SAM
Balanced
Portfolio
158,511
231,169
—
—
SAM
Conservative
Balanced
Portfolio
57,00
7
63,78
6
—
—
SAM
Conservative
Growth
Portfolio
54,181
66,602
—
—
SAM
Flexible
Income
Portfolio
69,2
61
79,81
2
—
—
SAM
Strategic
Growth
Portfolio
61,004
58,371
—
—
Short-Term
Income
Account
65,761
96,500
—
—
SmallCap
Account
63,560
83,999
—
—
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
97
For
the year
ended
December
31,
2019,
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):
8.
Federal
Tax
Information
Distributions
to
Shareholders.
The
federal
income
tax
character
of
distributions
paid
for
the years
ended December
31,
2019 and
December
31,
2018 were
as
follows
(amounts
in
thousands):
*The
Accounts
designate
these
distributions
as
long-term
capital
gain
dividends
per
Internal
Revenue
Code
Sec.
852
(b)(3)(C)
in
the
20-percent
group
(which
may
be
taxed
at
a
20-percent
rate,
a
15-percent
rate
or
a
0-percent
rate,
depending
on
the
shareholder’s
taxable
income).
^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.
Purchases
Sales
Covers
on
Securities
Sold
Short
Securities
Sold
Short
Bond
Market
Index
Account
$
1,197,434
$
1,063,983
$
5,197
$
3,353
Core
Plus
Bond
Account
142,038
141,438
—
—
Government
&
High
Quality
Bond
Account
8,139
14,324
—
—
Short-Term
Income
Account
6,820
5,777
—
—
Ordinary
Income
Long-Term
Capital
Gain*
Section
1250
Gain^
2019
2018
2019
2018
2019
2018
Bond
Market
Index
Account
$
63,629
$
52,158
$
—
$
—
$
—
$
—
Core
Plus
Bond
Account
10,172
9,636
—
—
—
—
Diversified
Balanced
Account
19,161
28,469
42,195
12,445
—
—
Diversified
Balanced
Managed
Volatility
Account
2,985
6,912
2,350
826
—
—
Diversified
Balanced
Volatility
Control
Account
1,239
434
761
148
—
—
Diversified
Growth
Account
66,048
106,005
132,175
29,490
—
—
Diversified
Growth
Managed
Volatility
Account
6,096
15,420
4,546
1,876
—
—
Diversified
Growth
Volatility
Control
Account
5,625
2,237
4,665
875
—
—
Diversified
Income
Account
4,545
5,794
5,619
1,114
—
—
Diversified
International
Account
4,159
6,007
12,521
—
—
—
Equity
Income
Account
16,637
13,448
16,586
33,719
—
—
Government
&
High
Quality
Bond
Account
6,457
8,671
—
—
—
—
International
Emerging
Markets
Account
802
1,238
2,283
—
—
—
LargeCap
Growth
Account
I
230
452
34,567
23,404
—
—
LargeCap
S&P
500
Index
Account
48,899
45,501
111,466
83,371
—
—
LargeCap
S&P
500
Managed
Volatility
Index
Account
3,588
3,114
14,916
—
—
—
MidCap
Account
1,707
1,796
79,894
72,238
—
—
Principal
Capital
Appreciation
Account
2,602
1,753
13,127
8,213
—
—
Principal
LifeTime
2010
Account
911
1,158
1,712
833
—
—
Principal
LifeTime
2020
Account
4,556
5,625
8,015
5,222
—
—
Principal
LifeTime
2030
Account
3,601
4,192
8,675
4,713
—
—
Principal
LifeTime
2040
Account
1,500
1,460
3,851
2,199
—
—
Principal
LifeTime
2050
Account
719
834
2,142
1,336
—
—
Principal
LifeTime
2060
Account
129
124
325
181
—
—
Principal
LifeTime
Strategic
Income
Account
609
631
986
245
—
—
Real
Estate
Securities
Account
3,501
2,980
9,349
11,
385
424
222
SAM
Balanced
Portfolio
17,364
24,236
24,099
34,263
—
—
SAM
Conservative
Balanced
Portfolio
5,316
6,540
3,638
6,843
—
—
SAM
Conservative
Growth
Portfolio
5,992
10,266
15,423
15,434
—
—
SAM
Flexible
Income
Portfolio
6,506
8,176
5,219
4,660
—
—
SAM
Strategic
Growth
Portfolio
4,270
7,336
15,098
14,491
—
—
Short-Term
Income
Account
3,392
3,321
—
—
—
—
SmallCap
Account
6,293
1,441
23,429
12,058
—
—
7.
Investment
Transactions
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
98
For
U.S.
federal
income
tax
purposes,
short-term
capital
gain
distributions
are
considered
ordinary
income
distributions.
Distributable
Earnings.
As
of December
31,
2019,
the
components
of
total
distributable
earnings
(accumulated
loss)
on
a
federal
tax
basis
were
as
follows
(amounts
in
thousands):
*Represents
book-to-tax
accounting
differences.
^Undistributed
Ordinary
Income
reported
includes
$257
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,
2019,
the Accounts had
approximate
net
capital
loss
carryforwards
as
follows
(amounts
in
thousands):
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Accumulated
Losses
Net
Unrealized
Appreciation
(Depreciation)
Other
Temporary
Differences
*
Total
Accumulated
Earnings
(Deficit)
Bond
Market
Index
Account
$
66,615
$
—
$
(19,606
)
$
81,130
$
—
$
128,139
Core
Plus
Bond
Account
9,502
—
(3,611
)
5,284
10
11,185
Diversified
Balanced
Account
24,554
29,766
—
267,411
—
321,731
Diversified
Balanced
Managed
Volatility
Account
3,789
6,024
—
21,888
—
31,701
Diversified
Balanced
Volatility
Control
Account
3,187
1,296
—
6,119
—
10,602
Diversified
Growth
Account
80,730
110,068
—
1,018,575
—
1,209,373
Diversified
Growth
Managed
Volatility
Account
7,461
14,948
—
52,309
—
74,718
Diversified
Growth
Volatility
Control
Account
17,486
9,310
—
38,627
—
65,423
Diversified
Income
Account
6,760
4,036
—
38,785
—
49,581
Diversified
International
Account
6,492
—
(272
)
47,862
—
54,082
Equity
Income
Account
16,244
19,472
—
326,401
—
362,117
Government
&
High
Quality
Bond
Account
5,986
—
(9,021
)
1,107
(32
)
(1,960
)
International
Emerging
Markets
Account
1,960
—
(69
)
13,188
—
15,079
LargeCap
Growth
Account
I
3,033
29,010
—
167,090
—
199,133
LargeCap
S&P
500
Index
Account
51,949
159,289
—
1,132,371
—
1,343,609
LargeCap
S&P
500
Managed
Volatility
Index
Account
3,480
4,869
—
68,506
(9,057
)
67,798
MidCap
Account
3,538
53,798
—
231,016
—
288,352
Principal
Capital
Appreciation
Account
2,352
6,711
—
70,749
—
79,812
Principal
LifeTime
2010
Account
885
509
—
2,432
—
3,826
Principal
LifeTime
2020
Account
5,530
2,328
—
20,065
—
27,923
Principal
LifeTime
2030
Account
4,177
3,255
—
19,051
—
26,483
Principal
LifeTime
2040
Account
1,821
1,789
—
9,332
—
12,942
Principal
LifeTime
2050
Account
789
889
—
5,116
—
6,794
Principal
LifeTime
2060
Account
151
195
—
702
—
1,048
Principal
LifeTime
Strategic
Income
Account
686
—
—
1,695
—
2,381
Real
Estate
Securities
Account
2,828^
7,881
—
44,053
—
54,762
SAM
Balanced
Portfolio
14,661
19,995
—
132,710
—
167,366
SAM
Conservative
Balanced
Portfolio
4,482
3,128
—
22,888
—
30,498
SAM
Conservative
Growth
Portfolio
6,331
5,240
—
68,824
—
80,395
SAM
Flexible
Income
Portfolio
5,110
3,760
—
15,026
—
23,896
SAM
Strategic
Growth
Portfolio
5,533
7,048
—
49,410
—
61,991
Short-Term
Income
Account
3,165
—
(656
)
1,600
(6
)
4,103
SmallCap
Account
999
12,319
—
25,091
—
38,409
Short-Term
Long-Term
Total
Bond
Market
Index
Account
$
—
$
19,606
$
19,606
Core
Plus
Bond
Account
157
3,454
3,611
Diversified
International
Account
272
—
272
Government
&
High
Quality
Bond
Account
515
8,506
9,021
International
Emerging
Markets
Account
69
—
69
Short-Term
Income
Account
—
656
656
8.
Federal
Tax
Information
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
99
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.
For
the
year
ended December
31,
2019,
the
following
accounts
had
utilized
capital
loss
carryforwards
as
follows
(amounts
in
thousands):
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,
2019,
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
gain
on
investments
or
from
tax
return
of
capital
depending
on
the
type
of
book
and
tax
differences
that
exist.
For
the
year
ended
December
31,
2019,
the
Accounts
recorded
reclassifications
as
follows
(amounts
in
thousands):
Federal
Income
Tax
Basis.
At
December
31,
2019, the
net
federal
income
tax
unrealized
appreciation
(depreciation)
and
federal
tax
cost
of
investments
held
by
the
Accounts
were
as
follows
(amounts
in
thousands):
Utilized
Bond
Market
Index
Account
$
10,914
Core
Plus
Bond
Account
3,194
SAM
Flexible
Income
Portfolio
4
Short-Term
Income
Account
333
Total
Distributable
Earnings
(Accumulated
Loss)
Capital
Shares
and
Additional
Paid-in-Capital
Diversified
Balanced
Account
$
(7,476
)
$
7,476
Diversified
Growth
Account
(18,135
)
18,135
Equity
Income
Account
(4,802
)
4,802
LargeCap
Growth
Account
I
(6,036
)
6,036
LargeCap
S&P
500
Index
Account
(40,558
)
40,558
LargeCap
S&P
500
Managed
Volatility
Index
Account
(671
)
671
MidCap
Account
(11,336
)
11,336
Principal
Capital
Appreciation
Account
(2,189
)
2,189
Real
Estate
Securities
Account
(2,323
)
2,323
SAM
Flexible
Income
Portfolio
(4
)
4
Unrealized
Appreciation
Unrealized
(Depreciation)
Net
Unrealized
Appreciation/
(Depreciation)
Cost
for
Federal
Income
Tax
Purposes
Bond
Market
Index
Account
$
87,890
$
(6,760)
$
81,130
$
2,524,927
Core
Plus
Bond
Account
8,900
(3,616)
5,284
263,456
Diversified
Balanced
Account
268,054
(643)
267,411
761,808
Diversified
Balanced
Managed
Volatility
Account
22,023
(135)
21,888
154,398
Diversified
Balanced
Volatility
Control
Account
7,011
(893)
6,118
139,670
Diversified
Growth
Account
1,024,493
(5,918)
1,018,575
2,754,545
Diversified
Growth
Managed
Volatility
Account
52,673
(365)
52,308
301,475
Diversified
Growth
Volatility
Control
Account
43,397
(4,770)
38,627
728,572
Diversified
Income
Account
39,243
(458)
38,785
241,181
Diversified
International
Account
52,398
(4,520)
47,878
218,283
Equity
Income
Account
334,776
(8,375)
326,401
445,702
Government
&
High
Quality
Bond
Account
5,283
(4,176)
1,107
243,936
International
Emerging
Markets
Account
15,754
(2,568)
13,186
76,060
LargeCap
Growth
Account
I
171,553
(4,462)
167,091
332,905
LargeCap
S&P
500
Index
Account
1,224,453
(92,082)
1,132,371
1,580,912
LargeCap
S&P
500
Managed
Volatility
Index
Account
76,315
(7,809)
68,506
149,745
MidCap
Account
239,307
(8,291)
231,016
377,409
Principal
Capital
Appreciation
Account
72,190
(1,441)
70,749
86,547
Principal
LifeTime
2010
Account
2,874
(443)
2,431
29,074
Principal
LifeTime
2020
Account
23,986
(3,921)
20,065
170,415
Principal
LifeTime
2030
Account
21,834
(2,783)
19,051
163,127
Principal
LifeTime
2040
Account
10,721
(1,389)
9,332
76,078
8.
Federal
Tax
Information
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
100
9.
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.
Unrealized
Appreciation
Unrealized
(Depreciation)
Net
Unrealized
Appreciation/
(Depreciation)
Cost
for
Federal
Income
Tax
Purposes
Principal
LifeTime
2050
Account
$
5,767
$
(651)
$
5,116
$
33,771
Principal
LifeTime
2060
Account
836
(134)
702
7,434
Principal
LifeTime
Strategic
Income
Account
1,947
(252)
1,695
24,590
Real
Estate
Securities
Account
45,200
(1,147)
44,053
117,268
SAM
Balanced
Portfolio
134,901
(2,192)
132,709
565,483
SAM
Conservative
Balanced
Portfolio
24,438
(1,550)
22,888
166,496
SAM
Conservative
Growth
Portfolio
69,884
(1,060)
68,824
287,710
SAM
Flexible
Income
Portfolio
16,846
(1,820)
15,026
173,418
SAM
Strategic
Growth
Portfolio
50,957
(1,548)
49,409
265,782
Short-Term
Income
Account
1,981
(382)
1,599
127,691
SmallCap
Account
41,597
(16,506)
25,091
175,465
8.
Federal
Tax
Information
(continued)
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
101
INVESTMENT
COMPANIES
-
4.40%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
1.07%
iShares
MBS
ETF
251,968
$
27,22
7
Money
Market
Funds
-
3.33%
BlackRock
Liquidity
FedFund
1.53%
(a),(b)
2,590,832
2,591
Principal
Government
Money
Market
Fund
1.41%
(a),(b),(c)
81,892,179
81,892
$
84,48
3
TOTAL
INVESTMENT
COMPANIES
$
111,71
0
BONDS
-
31.93%
Principal
Amount
(000's)
Value
(000's)
Advertising
-
0.03%
Interpublic
Group
of
Cos
Inc/The
3.75%,
10/01/2021
$
300
$
309
5.40%,
10/01/2048
300
368
$
677
Aerospace
&
Defense
-
0.59%
Boeing
Co/The
1.88%,
06/15/2023
500
497
2.30%,
08/01/2021
100
101
2.70%,
02/01/2027
700
710
2.80%,
03/01/2024
600
614
2.95%,
02/01/2030
170
174
3.25%,
02/01/2035
170
174
3.50%,
03/01/2039
600
620
3.75%,
02/01/2050
235
250
3.95%,
08/01/2059
315
336
5.88%,
02/15/2040
154
204
Embraer
Netherlands
Finance
BV
5.05%,
06/15/2025
300
329
General
Dynamics
Corp
2.13%,
08/15/2026
350
347
2.25%,
11/15/2022
15
15
3.38%,
05/15/2023
300
313
3.50%,
05/15/2025
300
321
3.75%,
05/15/2028
300
330
L3Harris
Technologies
Inc
2.90%,
12/15/2029
60
61
3.83%,
04/27/2025
500
534
4.95%,
02/15/2021
(d)
277
284
Lockheed
Martin
Corp
3.35%,
09/15/2021
102
105
3.55%,
01/15/2026
240
257
3.60%,
03/01/2035
350
383
3.80%,
03/01/2045
25
28
4.07%,
12/15/2042
47
54
4.09%,
09/15/2052
389
456
4.70%,
05/15/2046
25
32
Northrop
Grumman
Corp
2.55%,
10/15/2022
380
386
3.20%,
02/01/2027
500
520
3.50%,
03/15/2021
277
282
3.85%,
04/15/2045
500
539
4.03%,
10/15/2047
25
28
Raytheon
Co
4.88%,
10/15/2040
154
193
Rockwell
Collins
Inc
3.50%,
03/15/2027
325
345
4.35%,
04/15/2047
40
47
4.80%,
12/15/2043
460
553
Spirit
AeroSystems
Inc
3.95%,
06/15/2023
250
258
4.60%,
06/15/2028
300
317
United
Technologies
Corp
1.95%,
11/01/2021
80
80
2.30%,
05/04/2022
600
605
3.10%,
06/01/2022
530
544
3.65%,
08/16/2023
450
474
3.75%,
11/01/2046
30
33
4.05%,
05/04/2047
300
344
4.13%,
11/16/2028
435
489
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Aerospace
&
Defense
(continued)
United
Technologies
Corp
(continued)
4.15%,
05/15/2045
$
40
$
46
4.50%,
06/01/2042
600
719
4.63%,
11/16/2048
210
263
5.70%,
04/15/2040
51
69
6.13%,
07/15/2038
18
25
6.70%,
08/01/2028
175
227
$
14,915
Agriculture
-
0.34%
Altria
Group
Inc
2.85%,
08/09/2022
40
41
3.88%,
09/16/2046
60
55
4.00%,
01/31/2024
350
371
4.25%,
08/09/2042
750
750
4.75%,
05/05/2021
163
169
4.80%,
02/14/2029
340
379
5.80%,
02/14/2039
380
447
6.20%,
02/14/2059
310
369
Archer-Daniels-Midland
Co
2.50%,
08/11/2026
850
863
BAT
Capital
Corp
2.76%,
08/15/2022
580
589
2.79%,
09/06/2024
245
246
3.46%,
09/06/2029
245
248
3.56%,
08/15/2027
550
562
4.54%,
08/15/2047
325
327
Philip
Morris
International
Inc
1.88%,
02/25/2021
70
70
2.38%,
08/17/2022
30
30
2.75%,
02/25/2026
310
314
2.90%,
11/15/2021
381
388
3.25%,
11/10/2024
30
32
3.38%,
08/11/2025
375
394
4.13%,
03/04/2043
300
322
4.25%,
11/10/2044
30
33
4.38%,
11/15/2041
61
68
4.50%,
03/20/2042
400
455
4.88%,
11/15/2043
35
42
Reynolds
American
Inc
4.45%,
06/12/2025
250
269
4.85%,
09/15/2023
350
380
5.70%,
08/15/2035
25
29
5.85%,
08/15/2045
415
476
$
8,718
Airlines
-
0.04%
American
Airlines
2014-1
Class
A
Pass
Through
Trust
3.70%,
04/01/2028
291
306
American
Airlines
2019-1
Class
AA
Pass
Through
Trust
3.15%,
08/15/2033
170
175
Delta
Air
Lines
Inc
2.90%,
10/28/2024
155
155
3.75%,
10/28/2029
155
155
United
Airlines
2014-2
Class
A
Pass
Through
Trust
3.75%,
03/03/2028
155
163
United
Airlines
2019-2
Class
AA
Pass
Through
Trust
2.70%,
11/01/2033
80
80
$
1,034
Apparel
-
0.03%
NIKE
Inc
2.25%,
05/01/2023
200
203
3.38%,
11/01/2046
350
370
3.63%,
05/01/2043
200
217
$
790
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
102
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Asset
Backed
Securities
-
0.20%
BMW
Vehicle
Owner
Trust
2018-A
2.51%,
06/25/2024
$
1,500
$
1,512
Nissan
Auto
Receivables
2017-B
Owner
Trust
1.75%,
10/15/2021
596
595
Toyota
Auto
Receivables
2018-A
Owner
Trust
2.35%,
05/16/2022
941
944
World
Omni
Auto
Receivables
Trust
2018-A
2.50%,
04/17/2023
591
593
World
Omni
Automobile
Lease
Securitization
Trust
2019-A
2.94%,
05/16/2022
1,500
1,519
$
5,163
Automobile
Manufacturers
-
0.54%
American
Honda
Finance
Corp
1.70%,
09/09/2021
30
30
1.95%,
05/20/2022
155
156
2.05%,
01/10/2023
490
492
2.15%,
09/10/2024
445
445
Daimler
Finance
North
America
LLC
8.50%,
01/18/2031
127
189
Ford
Motor
Co
5.29%,
12/08/2046
380
362
7.45%,
07/16/2031
125
149
Ford
Motor
Credit
Co
LLC
3.34%,
03/18/2021
1,000
1,007
4.25%,
09/20/2022
200
207
4.54%,
08/01/2026
890
911
5.11%,
05/03/2029
500
515
5.60%,
01/07/2022
600
632
5.88%,
08/02/2021
400
419
General
Motors
Co
4.88%,
10/02/2023
25
27
5.00%,
10/01/2028
400
436
5.00%,
04/01/2035
200
207
5.40%,
04/01/2048
360
373
6.75%,
04/01/2046
25
29
General
Motors
Financial
Co
Inc
3.20%,
07/06/2021
330
335
3.25%,
01/05/2023
400
409
3.45%,
01/14/2022
30
31
3.45%,
04/10/2022
325
332
3.55%,
07/08/2022
500
515
3.70%,
05/09/2023
325
335
4.30%,
07/13/2025
325
347
4.35%,
01/17/2027
30
31
4.38%,
09/25/2021
330
342
5.10%,
01/17/2024
500
543
5.25%,
03/01/2026
1,020
1,131
PACCAR
Financial
Corp
3.10%,
05/10/2021
300
305
Toyota
Motor
Corp
3.67%,
07/20/2028
200
220
Toyota
Motor
Credit
Corp
1.80%,
10/07/2021
400
400
2.00%,
10/07/2024
(e)
165
165
2.25%,
10/18/2023
350
353
3.30%,
01/12/2022
77
79
3.35%,
01/08/2024
400
420
3.45%,
09/20/2023
400
421
3.65%,
01/08/2029
400
438
$
13,738
Automobile
Parts
&
Equipment
-
0.02%
BorgWarner
Inc
3.38%,
03/15/2025
500
523
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
-
5.93%
Australia
&
New
Zealand
Banking
Group
Ltd/
New
York
NY
2.05%,
11/21/2022
$
250
$
251
2.30%,
06/01/2021
310
312
2.63%,
05/19/2022
250
254
Banco
Santander
SA
3.13%,
02/23/2023
600
612
Bank
of
America
Corp
2.46%,
10/22/2025
(f)
310
312
3
Month
USD
LIBOR
+
0.87%
2.63%,
04/19/2021
750
757
2.82%,
07/21/2023
(f)
500
508
3
Month
USD
LIBOR
+
0.93%
3.00%,
12/20/2023
(f)
1,389
1,421
3
Month
USD
LIBOR
+
0.79%
3.12%,
01/20/2023
(f)
500
510
3
Month
USD
LIBOR
+
1.16%
3.19%,
07/23/2030
(f)
335
347
3
Month
USD
LIBOR
+
1.18%
3.25%,
10/21/2027
40
42
3.30%,
01/11/2023
330
341
3.37%,
01/23/2026
(f)
500
523
3
Month
USD
LIBOR
+
0.81%
3.42%,
12/20/2028
(f)
1,041
1,093
3
Month
USD
LIBOR
+
1.04%
3.50%,
05/17/2022
(f)
300
306
3
Month
USD
LIBOR
+
0.63%
3.50%,
04/19/2026
795
846
3.59%,
07/21/2028
(f)
500
530
3
Month
USD
LIBOR
+
1.37%
3.82%,
01/20/2028
(f)
400
429
3
Month
USD
LIBOR
+
1.58%
3.86%,
07/23/2024
(f)
300
316
3
Month
USD
LIBOR
+
0.94%
3.88%,
08/01/2025
30
32
3.95%,
04/21/2025
830
886
3.97%,
02/07/2030
(f)
1,000
1,098
3
Month
USD
LIBOR
+
1.21%
4.13%,
01/22/2024
500
537
4.18%,
11/25/2027
560
607
4.20%,
08/26/2024
25
27
4.27%,
07/23/2029
(f)
360
400
3
Month
USD
LIBOR
+
1.31%
4.33%,
03/15/2050
(f)
310
374
3
Month
USD
LIBOR
+
1.52%
4.44%,
01/20/2048
(f)
30
37
3
Month
USD
LIBOR
+
1.99%
5.00%,
01/21/2044
25
33
5.70%,
01/24/2022
580
622
5.88%,
02/07/2042
228
324
7.75%,
05/14/2038
250
394
Bank
of
America
NA
6.00%,
10/15/2036
250
342
Bank
of
Montreal
2.55%,
11/06/2022
15
15
3.10%,
04/13/2021
1,000
1,016
3.30%,
02/05/2024
400
417
Bank
of
New
York
Mellon
Corp/The
1.95%,
08/23/2022
850
852
2.10%,
10/24/2024
775
776
Bank
of
Nova
Scotia/The
2.00%,
11/15/2022
160
160
2.45%,
09/19/2022
30
30
2.70%,
03/07/2022
15
15
2.70%,
08/03/2026
170
173
3.13%,
04/20/2021
1,000
1,016
3.40%,
02/11/2024
400
419
4.50%,
12/16/2025
500
549
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
103
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Barclays
Bank
PLC
2.65%,
01/11/2021
$
350
$
352
Barclays
PLC
3.20%,
08/10/2021
200
203
3.68%,
01/10/2023
1,700
1,743
4.34%,
01/10/2028
1,030
1,106
4.38%,
01/12/2026
200
216
4.97%,
05/16/2029
(f)
210
237
3
Month
USD
LIBOR
+
1.90%
BNP
Paribas
SA
4.25%,
10/15/2024
750
805
5.00%,
01/15/2021
77
79
BPCE
SA
4.00%,
04/15/2024
250
268
Canadian
Imperial
Bank
of
Commerce
2.61%,
07/22/2023
(f)
250
253
3
Month
USD
LIBOR
+
0.79%
3.50%,
09/13/2023
500
525
Capital
One
NA
2.15%,
09/06/2022
250
250
Citibank
NA
3.17%,
02/19/2022
(f)
400
405
3
Month
USD
LIBOR
+
0.53%
3.65%,
01/23/2024
500
529
Citigroup
Inc
2.31%,
11/04/2022
(f)
230
231
United
States
Secured
Overnight
Financing
Rate
+
0.87%
2.70%,
03/30/2021
30
30
2.70%,
10/27/2022
900
915
2.75%,
04/25/2022
15
15
2.88%,
07/24/2023
(f)
200
203
3
Month
USD
LIBOR
+
0.95%
2.90%,
12/08/2021
1,000
1,016
2.98%,
11/05/2030
(f)
155
157
United
States
Secured
Overnight
Financing
Rate
+
1.42%
3.20%,
10/21/2026
770
799
3.50%,
05/15/2023
600
625
3.67%,
07/24/2028
(f)
1,200
1,279
3
Month
USD
LIBOR
+
1.39%
3.75%,
06/16/2024
500
531
3.89%,
01/10/2028
(f)
400
431
3
Month
USD
LIBOR
+
1.56%
4.05%,
07/30/2022
200
209
4.07%,
04/23/2029
(f)
240
263
3
Month
USD
LIBOR
+
1.19%
4.28%,
04/24/2048
(f)
330
392
3
Month
USD
LIBOR
+
1.84%
4.30%,
11/20/2026
525
572
4.40%,
06/10/2025
780
848
4.45%,
09/29/2027
20
22
4.50%,
01/14/2022
454
476
4.60%,
03/09/2026
60
66
4.65%,
07/30/2045
222
275
5.30%,
05/06/2044
25
32
5.50%,
09/13/2025
325
372
5.88%,
01/30/2042
328
462
6.63%,
06/15/2032
112
151
6.68%,
09/13/2043
30
44
8.13%,
07/15/2039
132
220
Citizens
Bank
NA/Providence
RI
2.55%,
05/13/2021
250
252
Cooperatieve
Rabobank
UA
3.88%,
02/08/2022
328
342
3.95%,
11/09/2022
300
314
4.50%,
01/11/2021
51
52
5.25%,
05/24/2041
500
684
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Cooperatieve
Rabobank
UA
(continued)
5.25%,
08/04/2045
$
250
$
320
5.75%,
12/01/2043
250
331
Cooperatieve
Rabobank
UA/NY
2.50%,
01/19/2021
500
503
Credit
Suisse
AG/New
York
NY
3.00%,
10/29/2021
250
255
3.63%,
09/09/2024
400
426
Credit
Suisse
Group
Funding
Guernsey
Ltd
3.75%,
03/26/2025
750
794
4.88%,
05/15/2045
500
631
Deutsche
Bank
AG/New
York
NY
3.38%,
05/12/2021
500
505
4.10%,
01/13/2026
500
507
4.25%,
10/14/2021
400
411
5.00%,
02/14/2022
400
418
Discover
Bank
2.45%,
09/12/2024
320
319
3.20%,
08/09/2021
250
254
4.25%,
03/13/2026
500
540
Fifth
Third
Bancorp
2.38%,
01/28/2025
85
85
4.30%,
01/16/2024
30
32
Fifth
Third
Bank/Cincinnati
OH
2.25%,
06/14/2021
700
704
2.88%,
10/01/2021
200
203
3.85%,
03/15/2026
700
746
Goldman
Sachs
Group
Inc/The
2.35%,
11/15/2021
780
783
2.88%,
02/25/2021
90
91
3.00%,
04/26/2022
25
25
3.50%,
01/23/2025
1,500
1,575
3.63%,
02/20/2024
1,000
1,050
3.69%,
06/05/2028
(f)
1,000
1,064
3
Month
USD
LIBOR
+
1.51%
3.75%,
05/22/2025
30
32
3.85%,
01/26/2027
60
64
4.02%,
10/31/2038
(f)
750
815
3
Month
USD
LIBOR
+
1.37%
4.22%,
05/01/2029
(f)
415
458
3
Month
USD
LIBOR
+
1.30%
4.25%,
10/21/2025
1,280
1,390
4.41%,
04/23/2039
(f)
180
205
3
Month
USD
LIBOR
+
1.43%
4.80%,
07/08/2044
25
30
5.15%,
05/22/2045
310
381
5.25%,
07/27/2021
502
527
5.75%,
01/24/2022
228
245
6.75%,
10/01/2037
30
42
HSBC
Holdings
PLC
2.63%,
11/07/2025
(f)
230
231
3
Month
USD
LIBOR
+
1.14%
2.65%,
01/05/2022
200
202
2.95%,
05/25/2021
700
709
3.60%,
05/25/2023
500
522
3.90%,
05/25/2026
395
421
3.95%,
05/18/2024
(f)
400
421
3
Month
USD
LIBOR
+
0.99%
3.97%,
05/22/2030
(f)
400
431
3
Month
USD
LIBOR
+
1.61%
4.00%,
03/30/2022
148
154
4.04%,
03/13/2028
(f)
500
535
3
Month
USD
LIBOR
+
1.55%
4.25%,
03/14/2024
500
531
4.29%,
09/12/2026
(f)
500
541
3
Month
USD
LIBOR
+
1.35%
4.30%,
03/08/2026
945
1,029
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
104
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
HSBC
Holdings
PLC
(continued)
4.58%,
06/19/2029
(f)
$
365
$
408
3
Month
USD
LIBOR
+
1.53%
5.10%,
04/05/2021
728
755
5.25%,
03/14/2044
300
379
6.10%,
01/14/2042
174
247
6.50%,
05/02/2036
420
574
Huntington
Bancshares
Inc/OH
2.30%,
01/14/2022
500
503
Huntington
National
Bank/The
3.25%,
05/14/2021
400
407
3.55%,
10/06/2023
400
420
Industrial
&
Commercial
Bank
of
China
Ltd/New
York
NY
2.45%,
10/20/2021
1,850
1,851
ING
Groep
NV
3.55%,
04/09/2024
400
419
JPMorgan
Chase
&
Co
2.30%,
08/15/2021
880
882
2.30%,
10/15/2025
(f)
280
280
United
States
Secured
Overnight
Financing
Rate
+
1.16%
2.74%,
10/15/2030
(f)
260
260
United
States
Secured
Overnight
Financing
Rate
+
1.51%
2.78%,
04/25/2023
(f)
250
254
3
Month
USD
LIBOR
+
0.94%
2.97%,
01/15/2023
1,040
1,060
3.13%,
01/23/2025
1,000
1,044
3.20%,
01/25/2023
1,025
1,058
3.25%,
09/23/2022
320
331
3.30%,
04/01/2026
500
526
3.38%,
05/01/2023
400
416
3.51%,
01/23/2029
(f)
400
425
3
Month
USD
LIBOR
+
0.95%
3.63%,
12/01/2027
25
26
3.80%,
07/23/2024
(f)
270
285
3
Month
USD
LIBOR
+
0.89%
3.88%,
02/01/2024
20
21
3.88%,
09/10/2024
500
535
3.88%,
07/24/2038
(f)
500
553
3
Month
USD
LIBOR
+
1.36%
3.96%,
01/29/2027
(f)
1,000
1,085
3
Month
USD
LIBOR
+
1.25%
3.96%,
11/15/2048
(f)
400
453
3
Month
USD
LIBOR
+
1.38%
4.01%,
04/23/2029
(f)
270
297
3
Month
USD
LIBOR
+
1.12%
4.03%,
07/24/2048
(f)
30
34
3
Month
USD
LIBOR
+
1.46%
4.20%,
07/23/2029
(f)
300
335
3
Month
USD
LIBOR
+
1.26%
4.25%,
10/01/2027
10
11
4.26%,
02/22/2048
(f)
500
591
3
Month
USD
LIBOR
+
1.58%
4.50%,
01/24/2022
257
270
4.63%,
05/10/2021
287
297
4.85%,
02/01/2044
20
26
4.95%,
06/01/2045
55
70
5.40%,
01/06/2042
102
137
5.60%,
07/15/2041
154
211
5.63%,
08/16/2043
375
502
6.40%,
05/15/2038
200
290
KeyCorp
2.55%,
10/01/2029
310
303
5.10%,
03/24/2021
102
106
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Kreditanstalt
fuer
Wiederaufbau
0.00%,
04/18/2036
(g)
$
380
$
258
0.00%,
06/29/2037
(g)
200
132
1.50%,
06/15/2021
1,290
1,287
1.63%,
03/15/2021
1,170
1,170
2.00%,
05/02/2025
880
891
2.13%,
03/07/2022
500
505
2.13%,
06/15/2022
960
971
2.13%,
01/17/2023
500
506
2.38%,
12/29/2022
600
612
2.50%,
11/20/2024
300
310
2.63%,
01/25/2022
1,257
1,282
2.63%,
02/28/2024
1,500
1,553
Landwirtschaftliche
Rentenbank
1.75%,
07/27/2026
500
494
2.00%,
01/13/2025
300
303
2.38%,
06/10/2025
400
412
Lloyds
Bank
PLC
2.25%,
08/14/2022
700
703
6.38%,
01/21/2021
51
53
Lloyds
Banking
Group
PLC
3.57%,
11/07/2028
(f)
630
658
3
Month
USD
LIBOR
+
1.21%
3.75%,
01/11/2027
515
542
4.05%,
08/16/2023
400
424
4.45%,
05/08/2025
400
437
4.65%,
03/24/2026
500
544
5.30%,
12/01/2045
200
246
Mitsubishi
UFJ
Financial
Group
Inc
2.62%,
07/18/2022
700
710
2.76%,
09/13/2026
400
405
2.80%,
07/18/2024
650
663
3.20%,
07/18/2029
700
726
3.54%,
07/26/2021
300
307
3.75%,
07/18/2039
550
603
3.76%,
07/26/2023
300
316
3.85%,
03/01/2026
350
376
Mizuho
Financial
Group
Inc
2.27%,
09/13/2021
400
402
2.72%,
07/16/2023
(f)
600
607
3
Month
USD
LIBOR
+
0.84%
2.84%,
07/16/2025
(f)
1,000
1,013
3
Month
USD
LIBOR
+
0.98%
3.15%,
07/16/2030
(f)
400
409
3
Month
USD
LIBOR
+
1.13%
Morgan
Stanley
2.50%,
04/21/2021
1,000
1,008
2.63%,
11/17/2021
1,030
1,042
2.72%,
07/22/2025
(f)
250
253
United
States
Secured
Overnight
Financing
Rate
+
1.15%
2.75%,
05/19/2022
300
306
3.13%,
01/23/2023
300
308
3.13%,
07/27/2026
1,330
1,373
3.59%,
07/22/2028
(f)
30
32
3
Month
USD
LIBOR
+
1.34%
3.63%,
01/20/2027
30
32
3.70%,
10/23/2024
25
27
3.75%,
02/25/2023
1,230
1,288
3.77%,
01/24/2029
(f)
360
388
3
Month
USD
LIBOR
+
1.14%
3.88%,
04/29/2024
30
32
3.95%,
04/23/2027
50
54
3.97%,
07/22/2038
(f)
15
17
3
Month
USD
LIBOR
+
1.46%
4.00%,
07/23/2025
30
32
4.10%,
05/22/2023
380
401
4.30%,
01/27/2045
50
59
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
105
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Morgan
Stanley
(continued)
4.35%,
09/08/2026
$
30
$
33
4.38%,
01/22/2047
30
36
4.43%,
01/23/2030
(f)
1,000
1,131
3
Month
USD
LIBOR
+
1.63%
4.88%,
11/01/2022
30
32
5.00%,
11/24/2025
525
591
5.75%,
01/25/2021
1,050
1,091
6.38%,
07/24/2042
620
914
National
Australia
Bank
Ltd/New
York
1.88%,
07/12/2021
500
500
2.50%,
05/22/2022
570
577
Northern
Trust
Corp
3.95%,
10/30/2025
500
544
Oesterreichische
Kontrollbank
AG
1.88%,
01/20/2021
1,000
1,002
PNC
Bank
NA
2.23%,
07/22/2022
(f)
1,500
1,505
3
Month
USD
LIBOR
+
0.44%
2.70%,
10/22/2029
250
250
3.80%,
07/25/2023
400
420
PNC
Financial
Services
Group
Inc/The
2.20%,
11/01/2024
130
131
2.60%,
07/23/2026
140
142
3.45%,
04/23/2029
300
320
Regions
Financial
Corp
3.80%,
08/14/2023
1,000
1,059
Royal
Bank
of
Canada
2.25%,
11/01/2024
310
311
2.55%,
07/16/2024
125
127
Royal
Bank
of
Scotland
Group
PLC
3.88%,
09/12/2023
200
210
4.80%,
04/05/2026
500
556
4.89%,
05/18/2029
(f)
400
453
3
Month
USD
LIBOR
+
1.75%
5.08%,
01/27/2030
(f)
1,000
1,150
3
Month
USD
LIBOR
+
1.91%
6.13%,
12/15/2022
2,250
2,463
Santander
Holdings
USA
Inc
4.50%,
07/17/2025
780
842
Santander
UK
Group
Holdings
PLC
3.57%,
01/10/2023
520
532
Skandinaviska
Enskilda
Banken
AB
1.88%,
09/13/2021
500
499
State
Street
Corp
1.95%,
05/19/2021
35
35
2.35%,
11/01/2025
(f)
365
367
United
States
Secured
Overnight
Financing
Rate
+
0.94%
2.65%,
05/19/2026
60
61
3.10%,
05/15/2023
325
335
3.55%,
08/18/2025
225
242
3.70%,
11/20/2023
10
11
Sumitomo
Mitsui
Banking
Corp
3.65%,
07/23/2025
500
532
Sumitomo
Mitsui
Financial
Group
Inc
2.70%,
07/16/2024
420
426
2.93%,
03/09/2021
500
505
3.04%,
07/16/2029
200
204
3.36%,
07/12/2027
750
783
3.45%,
01/11/2027
140
147
3.78%,
03/09/2026
500
535
Svenska
Handelsbanken
AB
3.35%,
05/24/2021
400
408
Synchrony
Bank
3.65%,
05/24/2021
300
306
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Toronto-Dominion
Bank/The
1.80%,
07/13/2021
$
520
$
520
1.90%,
12/01/2022
115
115
Truist
Bank
2.15%,
12/06/2024
600
599
2.85%,
04/01/2021
1,000
1,011
3.63%,
09/16/2025
250
266
3.80%,
10/30/2026
250
268
Truist
Financial
Corp
2.15%,
02/01/2021
400
401
2.50%,
08/01/2024
350
355
2.70%,
01/27/2022
30
30
2.90%,
03/03/2021
65
66
US
Bancorp
2.40%,
07/30/2024
190
193
2.63%,
01/24/2022
55
56
2.95%,
07/15/2022
230
235
3.00%,
03/15/2022
158
162
3.00%,
07/30/2029
950
981
3.15%,
04/27/2027
25
26
US
Bank
NA/Cincinnati
OH
1.95%,
01/09/2023
1,070
1,069
Wells
Fargo
&
Co
2.10%,
07/26/2021
15
15
2.41%,
10/30/2025
(f)
1,310
1,311
3
Month
USD
LIBOR
+
0.83%
2.50%,
03/04/2021
1,020
1,027
2.88%,
10/30/2030
(f)
1,310
1,319
3
Month
USD
LIBOR
+
1.17%
3.00%,
04/22/2026
500
514
3.00%,
10/23/2026
530
543
3.07%,
01/24/2023
35
36
3.45%,
02/13/2023
215
223
3.50%,
03/08/2022
180
186
3.58%,
05/22/2028
(f)
500
532
3
Month
USD
LIBOR
+
1.31%
4.10%,
06/03/2026
600
647
4.40%,
06/14/2046
385
439
4.60%,
04/01/2021
102
105
4.65%,
11/04/2044
30
35
4.90%,
11/17/2045
520
636
5.38%,
02/07/2035
500
641
5.38%,
11/02/2043
20
26
5.61%,
01/15/2044
45
59
Wells
Fargo
Bank
NA
5.95%,
08/26/2036
750
999
6.60%,
01/15/2038
250
362
Wells
Fargo
Capital
X
5.95%,
12/15/2036
200
244
Westpac
Banking
Corp
2.00%,
08/19/2021
500
501
2.35%,
02/19/2025
155
155
2.65%,
01/25/2021
1,000
1,007
2.80%,
01/11/2022
500
508
3.65%,
05/15/2023
400
419
4.11%,
07/24/2034
(f)
165
173
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.00%
4.42%,
07/24/2039
165
182
$
150,534
Beverages
-
0.57%
Anheuser-Busch
Cos
LLC
/
Anheuser-Busch
InBev
Worldwide
Inc
3.65%,
02/01/2026
825
880
4.70%,
02/01/2036
1,030
1,194
4.90%,
02/01/2046
1,790
2,123
Anheuser-Busch
InBev
Finance
Inc
4.63%,
02/01/2044
25
28
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
106
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Beverages
(continued)
Anheuser-Busch
InBev
Worldwide
Inc
2.50%,
07/15/2022
$
91
$
93
3.75%,
07/15/2042
100
103
4.75%,
01/23/2029
560
649
4.90%,
01/23/2031
750
894
5.45%,
01/23/2039
500
629
5.80%,
01/23/2059
595
813
8.20%,
01/15/2039
51
81
Coca-Cola
Co/The
1.75%,
09/06/2024
190
189
2.13%,
09/06/2029
165
161
2.88%,
10/27/2025
520
542
Constellation
Brands
Inc
3.15%,
08/01/2029
630
637
3.75%,
05/01/2021
500
511
Diageo
Capital
PLC
2.13%,
10/24/2024
200
200
2.38%,
10/24/2029
200
197
2.63%,
04/29/2023
10
10
5.88%,
09/30/2036
139
187
Diageo
Investment
Corp
2.88%,
05/11/2022
200
204
Keurig
Dr
Pepper
Inc
3.13%,
12/15/2023
500
514
3.55%,
05/25/2021
500
511
4.06%,
05/25/2023
425
448
Molson
Coors
Beverage
Co
3.00%,
07/15/2026
530
537
5.00%,
05/01/2042
50
55
PepsiCo
Inc
2.38%,
10/06/2026
20
20
2.63%,
07/29/2029
170
174
2.75%,
03/05/2022
593
605
2.85%,
02/24/2026
500
519
2.88%,
10/15/2049
160
155
3.10%,
07/17/2022
15
15
3.38%,
07/29/2049
705
740
$
14,618
Biotechnology
-
0.24%
Amgen
Inc
1.85%,
08/19/2021
65
65
2.60%,
08/19/2026
500
506
2.65%,
05/11/2022
40
41
3.88%,
11/15/2021
25
26
4.10%,
06/15/2021
501
515
4.40%,
05/01/2045
40
45
4.56%,
06/15/2048
485
564
4.66%,
06/15/2051
810
954
Baxalta
Inc
4.00%,
06/23/2025
50
54
5.25%,
06/23/2045
130
168
Biogen
Inc
5.20%,
09/15/2045
540
652
Gilead
Sciences
Inc
2.95%,
03/01/2027
530
551
3.25%,
09/01/2022
60
62
4.00%,
09/01/2036
300
332
4.15%,
03/01/2047
70
78
4.40%,
12/01/2021
127
132
4.60%,
09/01/2035
500
597
4.75%,
03/01/2046
195
234
4.80%,
04/01/2044
500
601
$
6,177
Building
Materials
-
0.02%
Masco
Corp
4.45%,
04/01/2025
300
326
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Building
Materials
(continued)
Owens
Corning
4.40%,
01/30/2048
$
300
$
290
$
616
Chemicals
-
0.33%
Albemarle
Corp
5.45%,
12/01/2044
150
172
Dow
Chemical
Co/The
3.50%,
10/01/2024
5
5
3.63%,
05/15/2026
300
316
4.38%,
11/15/2042
230
246
4.80%,
05/15/2049
300
347
5.25%,
11/15/2041
30
35
7.38%,
11/01/2029
850
1,128
9.40%,
05/15/2039
51
84
DuPont
de
Nemours
Inc
5.32%,
11/15/2038
590
704
5.42%,
11/15/2048
245
302
Eastman
Chemical
Co
4.80%,
09/01/2042
100
109
Ecolab
Inc
4.35%,
12/08/2021
112
117
5.50%,
12/08/2041
307
404
LYB
International
Finance
BV
5.25%,
07/15/2043
515
608
LYB
International
Finance
II
BV
3.50%,
03/02/2027
35
37
LYB
International
Finance
III
LLC
4.20%,
10/15/2049
125
131
LyondellBasell
Industries
NV
4.63%,
02/26/2055
20
21
5.75%,
04/15/2024
130
147
Mosaic
Co/The
4.25%,
11/15/2023
496
529
4.88%,
11/15/2041
520
545
Nutrien
Ltd
3.63%,
03/15/2024
500
522
4.90%,
06/01/2043
200
225
6.13%,
01/15/2041
250
308
Praxair
Inc
2.20%,
08/15/2022
300
303
Sherwin-Williams
Co/The
2.75%,
06/01/2022
16
16
2.95%,
08/15/2029
450
455
3.80%,
08/15/2049
175
178
Westlake
Chemical
Corp
3.60%,
08/15/2026
350
363
$
8,357
Commercial
Mortgage
Backed
Securities
-
1.76%
BANK
2018-BNK10
3.69%,
02/15/2061
1,850
1,996
CFCRE
Commercial
Mortgage
Trust
2016-C4
3.28%,
05/10/2058
1,300
1,352
Citigroup
Commercial
Mortgage
Trust
2016-GC36
3.62%,
02/10/2049
1,000
1,064
COMM
2013-CCRE8
Mortgage
Trust
3.61%,
06/10/2046
(h)
500
521
COMM
2014-UBS3
Mortgage
Trust
3.82%,
06/10/2047
500
530
COMM
2015-DC1
Mortgage
Trust
3.35%,
02/10/2048
1,000
1,041
COMM
2015-LC19
Mortgage
Trust
3.18%,
02/10/2048
1,000
1,037
COMM
2016-CR28
Mortgage
Trust
3.76%,
02/10/2049
1,000
1,067
CSAIL
2015-C1
Commercial
Mortgage
Trust
2.97%,
04/15/2050
42
42
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
107
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
CSAIL
2016-C7
Commercial
Mortgage
Trust
3.31%,
11/15/2049
$
1,000
$
1,031
Fannie
Mae-Aces
2.42%,
10/25/2026
(h)
1,000
1,008
2.53%,
09/25/2024
1,000
1,016
2.65%,
04/25/2023
(h)
217
220
2.71%,
06/25/2025
(h)
2,000
2,056
2.80%,
02/25/2027
(h)
1,100
1,133
2.96%,
02/25/2027
(h)
1,000
1,038
2.99%,
12/25/2027
(h)
1,000
1,042
3.11%,
08/25/2024
(h)
907
945
3.38%,
07/25/2028
(h)
2,025
2,163
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
2.67%,
03/25/2026
1,050
1,077
2.87%,
12/25/2021
504
510
3.02%,
02/25/2023
188
192
3.06%,
07/25/2023
(h)
750
775
3.06%,
12/25/2024
500
522
3.31%,
05/25/2023
(h)
810
843
3.32%,
02/25/2023
1,000
1,037
3.41%,
12/25/2026
1,500
1,604
3.53%,
10/25/2023
(h)
1,050
1,103
GS
Mortgage
Securities
Trust
2012-GC6
3.48%,
01/10/2045
273
278
GS
Mortgage
Securities
Trust
2012-GCJ9
2.77%,
11/10/2045
494
500
GS
Mortgage
Securities
Trust
2014-GC18
3.80%,
01/10/2047
456
474
GS
Mortgage
Securities
Trust
2015-GC34
3.51%,
10/10/2048
1,000
1,055
GS
Mortgage
Securities
Trust
2017-GS5
3.47%,
03/10/2050
2,250
2,353
GS
Mortgage
Securities
Trust
2018-GS9
3.99%,
03/10/2051
(h)
1,500
1,645
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C22
3.80%,
09/15/2047
1,000
1,062
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2015-C24
3.48%,
05/15/2048
1,000
1,051
Morgan
Stanley
Capital
I
Trust
2017-H1
3.26%,
06/15/2050
2,500
2,615
SG
Commercial
Mortgage
Securities
Trust
2016-C5
3.06%,
10/10/2048
1,000
1,028
UBS
Commercial
Mortgage
Trust
2012-C1
3.40%,
05/10/2045
460
469
UBS-Barclays
Commercial
Mortgage
Trust
2012-C3
3.09%,
08/10/2049
550
561
UBS-Barclays
Commercial
Mortgage
Trust
2013-C6
3.24%,
04/10/2046
500
514
Wells
Fargo
Commercial
Mortgage
Trust
2012-LC5
2.92%,
10/15/2045
479
487
Wells
Fargo
Commercial
Mortgage
Trust
2015-C28
3.29%,
05/15/2048
1,832
1,903
WFRBS
Commercial
Mortgage
Trust
2013-C14
2.98%,
06/15/2046
741
748
$
44,708
Commercial
Services
-
0.23%
Automatic
Data
Processing
Inc
3.38%,
09/15/2025
500
533
California
Institute
of
Technology
4.32%,
08/01/2045
80
96
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Services
(continued)
Global
Payments
Inc
2.65%,
02/15/2025
$
170
$
171
3.20%,
08/15/2029
170
173
4.15%,
08/15/2049
85
91
IHS
Markit
Ltd
3.63%,
05/01/2024
372
387
Leland
Stanford
Junior
University/The
3.65%,
05/01/2048
287
320
Massachusetts
Institute
of
Technology
3.89%,
07/01/2116
250
272
4.68%,
07/01/2114
250
322
Moody's
Corp
5.25%,
07/15/2044
500
634
PayPal
Holdings
Inc
2.20%,
09/26/2022
160
161
2.40%,
10/01/2024
160
162
2.85%,
10/01/2029
160
162
President
&
Fellows
of
Harvard
College
3.15%,
07/15/2046
350
358
S&P
Global
Inc
2.50%,
12/01/2029
120
120
3.25%,
12/01/2049
120
123
4.40%,
02/15/2026
160
177
University
of
Southern
California
3.84%,
10/01/2047
500
569
5.25%,
10/01/2111
30
42
Verisk
Analytics
Inc
4.00%,
06/15/2025
500
538
William
Marsh
Rice
University
3.57%,
05/15/2045
500
533
$
5,944
Computers
-
0.74%
Apple
Inc
1.55%,
08/04/2021
30
30
1.70%,
09/11/2022
195
195
1.80%,
09/11/2024
740
735
2.15%,
02/09/2022
50
50
2.20%,
09/11/2029
165
162
2.25%,
02/23/2021
535
538
2.40%,
01/13/2023
300
305
2.40%,
05/03/2023
330
336
2.45%,
08/04/2026
750
761
2.50%,
02/09/2022
530
538
2.85%,
05/06/2021
1,285
1,305
2.85%,
02/23/2023
30
31
2.90%,
09/12/2027
230
239
2.95%,
09/11/2049
165
160
3.20%,
05/13/2025
445
470
3.20%,
05/11/2027
320
338
3.25%,
02/23/2026
775
821
3.35%,
02/09/2027
535
570
3.45%,
02/09/2045
30
32
3.75%,
09/12/2047
115
128
3.75%,
11/13/2047
150
166
3.85%,
05/04/2043
300
336
4.65%,
02/23/2046
1,235
1,550
Dell
International
LLC
/
EMC
Corp
4.42%,
06/15/2021
(d)
980
1,008
6.02%,
06/15/2026
(d)
1,000
1,151
8.10%,
07/15/2036
(d)
255
335
8.35%,
07/15/2046
(d)
335
462
DXC
Technology
Co
4.75%,
04/15/2027
505
544
Hewlett
Packard
Enterprise
Co
2.25%,
04/01/2023
165
165
4.90%,
10/15/2025
300
333
6.20%,
10/15/2035
80
96
6.35%,
10/15/2045
195
235
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
108
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Computers
(continued)
HP
Inc
6.00%,
09/15/2041
$
154
$
171
IBM
Credit
LLC
2.65%,
02/05/2021
100
101
International
Business
Machines
Corp
2.25%,
02/19/2021
300
301
2.85%,
05/13/2022
400
409
3.00%,
05/15/2024
685
711
3.30%,
05/15/2026
400
422
3.38%,
08/01/2023
335
351
3.50%,
05/15/2029
470
506
4.00%,
06/20/2042
35
39
4.15%,
05/15/2039
230
259
4.25%,
05/15/2049
340
389
4.70%,
02/19/2046
185
223
5.60%,
11/30/2039
92
122
5.88%,
11/29/2032
200
267
6.22%,
08/01/2027
351
439
$
18,835
Consumer
Products
-
0.06%
Church
&
Dwight
Co
Inc
3.15%,
08/01/2027
300
310
3.95%,
08/01/2047
300
327
Clorox
Co/The
3.80%,
11/15/2021
128
132
Kimberly-Clark
Corp
2.40%,
03/01/2022
257
260
2.75%,
02/15/2026
400
412
$
1,441
Cosmetics
&
Personal
Care
-
0.08%
Estee
Lauder
Cos
Inc/The
2.00%,
12/01/2024
240
241
2.38%,
12/01/2029
240
240
Procter
&
Gamble
Co/The
1.70%,
11/03/2021
30
30
2.15%,
08/11/2022
30
30
2.30%,
02/06/2022
441
447
3.10%,
08/15/2023
30
31
Unilever
Capital
Corp
2.13%,
09/06/2029
115
112
2.20%,
05/05/2022
100
101
2.60%,
05/05/2024
510
522
5.90%,
11/15/2032
230
313
$
2,067
Credit
Card
Asset
Backed
Securities
-
0.18%
Capital
One
Multi-Asset
Execution
Trust
1.99%,
07/17/2023
1,000
1,001
2.43%,
01/15/2025
1,500
1,519
Citibank
Credit
Card
Issuance
Trust
2.19%,
11/20/2023
1,000
1,006
2.88%,
01/23/2023
500
505
Synchrony
Credit
Card
Master
Note
Trust
2.97%,
03/15/2024
500
506
$
4,537
Distribution
&
Wholesale
-
0.01%
WW
Grainger
Inc
4.60%,
06/15/2045
250
299
Diversified
Financial
Services
-
0.79%
AerCap
Ireland
Capital
DAC
/
AerCap
Global
Aviation
Trust
2.88%,
08/14/2024
1,035
1,044
3.88%,
01/23/2028
300
312
3.95%,
02/01/2022
650
672
4.50%,
05/15/2021
150
155
5.00%,
10/01/2021
150
157
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
(continued)
Air
Lease
Corp
2.25%,
01/15/2023
$
130
$
130
2.50%,
03/01/2021
500
502
3.25%,
03/01/2025
500
515
3.25%,
10/01/2029
95
95
Ally
Financial
Inc
8.00%,
11/01/2031
540
750
American
Express
Co
2.65%,
12/02/2022
400
408
3.38%,
05/17/2021
400
408
4.05%,
12/03/2042
25
29
American
Express
Credit
Corp
2.25%,
05/05/2021
555
558
3.30%,
05/03/2027
30
32
Ameriprise
Financial
Inc
4.00%,
10/15/2023
225
241
BlackRock
Inc
3.38%,
06/01/2022
200
207
3.50%,
03/18/2024
500
532
4.25%,
05/24/2021
500
516
Brookfield
Finance
Inc
3.90%,
01/25/2028
400
429
Capital
One
Bank
USA
NA
3.38%,
02/15/2023
340
351
Capital
One
Financial
Corp
3.20%,
02/05/2025
415
430
3.50%,
06/15/2023
114
118
3.75%,
04/24/2024
5
5
3.75%,
03/09/2027
1,020
1,088
4.20%,
10/29/2025
30
32
4.75%,
07/15/2021
30
31
Charles
Schwab
Corp/The
3.45%,
02/13/2026
250
265
CME
Group
Inc
3.00%,
09/15/2022
25
26
3.00%,
03/15/2025
530
551
5.30%,
09/15/2043
200
268
Credit
Suisse
USA
Inc
7.13%,
07/15/2032
300
440
Discover
Financial
Services
4.10%,
02/09/2027
500
539
GE
Capital
International
Funding
Co
Unlimited
Co
3.37%,
11/15/2025
1,025
1,068
4.42%,
11/15/2035
2,000
2,139
Intercontinental
Exchange
Inc
3.75%,
12/01/2025
50
54
4.25%,
09/21/2048
150
179
Jefferies
Group
LLC
6.50%,
01/20/2043
200
238
6.88%,
04/15/2021
27
29
Jefferies
Group
LLC
/
Jefferies
Group
Capital
Finance
Inc
4.15%,
01/23/2030
400
424
Mastercard
Inc
2.00%,
03/03/2025
210
209
2.95%,
11/21/2026
500
520
3.38%,
04/01/2024
25
27
Nasdaq
Inc
4.25%,
06/01/2024
350
377
ORIX
Corp
3.70%,
07/18/2027
300
319
Synchrony
Financial
4.25%,
08/15/2024
800
854
4.50%,
07/23/2025
20
22
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
109
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
(continued)
Visa
Inc
2.80%,
12/14/2022
$
20
$
21
3.15%,
12/14/2025
600
634
3.65%,
09/15/2047
85
95
4.15%,
12/14/2035
215
254
4.30%,
12/14/2045
375
461
Western
Union
Co/The
6.20%,
11/17/2036
200
228
$
19,988
Electric
-
1.72%
AEP
Texas
Inc
3.45%,
01/15/2050
55
55
AEP
Transmission
Co
LLC
4.00%,
12/01/2046
600
668
Alabama
Power
Co
4.30%,
01/02/2046
400
457
Ameren
Illinois
Co
2.70%,
09/01/2022
300
305
3.25%,
03/15/2050
80
81
Appalachian
Power
Co
3.30%,
06/01/2027
400
415
7.00%,
04/01/2038
120
171
Arizona
Public
Service
Co
4.50%,
04/01/2042
77
88
Baltimore
Gas
&
Electric
Co
3.20%,
09/15/2049
445
436
Berkshire
Hathaway
Energy
Co
3.75%,
11/15/2023
500
531
3.80%,
07/15/2048
300
323
4.50%,
02/01/2045
250
295
5.15%,
11/15/2043
15
19
6.13%,
04/01/2036
156
214
CenterPoint
Energy
Houston
Electric
LLC
4.25%,
02/01/2049
300
353
CenterPoint
Energy
Inc
2.50%,
09/01/2024
90
90
2.95%,
03/01/2030
125
123
3.70%,
09/01/2049
90
89
CMS
Energy
Corp
3.45%,
08/15/2027
350
366
Commonwealth
Edison
Co
4.00%,
03/01/2049
300
340
Connecticut
Light
&
Power
Co/The
3.20%,
03/15/2027
165
174
4.00%,
04/01/2048
500
574
Consolidated
Edison
Co
of
New
York
Inc
3.13%,
11/15/2027
300
314
3.70%,
11/15/2059
80
83
3.88%,
06/15/2047
500
542
4.13%,
05/15/2049
300
341
4.20%,
03/15/2042
128
143
4.30%,
12/01/2056
230
260
5.85%,
03/15/2036
51
66
6.75%,
04/01/2038
125
179
Consumers
Energy
Co
3.10%,
08/15/2050
245
245
Delmarva
Power
&
Light
Co
4.15%,
05/15/2045
350
394
Dominion
Energy
Inc
4.70%,
12/01/2044
300
348
4.90%,
08/01/2041
77
90
5.95%,
06/15/2035
400
509
Dominion
Energy
South
Carolina
Inc
5.45%,
02/01/2041
77
100
DTE
Electric
Co
3.95%,
03/01/2049
500
572
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
DTE
Energy
Co
2.25%,
11/01/2022
$
155
$
155
3.50%,
06/01/2024
500
522
Duke
Energy
Carolinas
LLC
2.45%,
08/15/2029
225
224
2.50%,
03/15/2023
279
283
3.20%,
08/15/2049
450
449
4.00%,
09/30/2042
100
112
5.30%,
02/15/2040
512
663
Duke
Energy
Corp
1.80%,
09/01/2021
45
45
2.65%,
09/01/2026
555
558
3.15%,
08/15/2027
15
15
3.75%,
09/01/2046
600
621
Duke
Energy
Florida
LLC
2.50%,
12/01/2029
330
329
3.40%,
10/01/2046
300
306
5.65%,
04/01/2040
25
33
6.40%,
06/15/2038
66
95
Duke
Energy
Indiana
LLC
6.12%,
10/15/2035
77
102
6.45%,
04/01/2039
300
432
Duke
Energy
Progress
LLC
4.15%,
12/01/2044
300
339
Emera
US
Finance
LP
3.55%,
06/15/2026
25
26
4.75%,
06/15/2046
25
29
Entergy
Arkansas
LLC
3.70%,
06/01/2024
500
531
Entergy
Louisiana
LLC
3.12%,
09/01/2027
700
727
Entergy
Texas
Inc
4.00%,
03/30/2029
300
331
4.50%,
03/30/2039
300
345
Evergy
Inc
2.45%,
09/15/2024
165
166
4.85%,
06/01/2021
77
79
Evergy
Kansas
Central
Inc
4.25%,
12/01/2045
500
570
Exelon
Corp
3.95%,
06/15/2025
25
27
4.45%,
04/15/2046
20
23
Exelon
Generation
Co
LLC
4.25%,
06/15/2022
500
523
5.60%,
06/15/2042
500
572
6.25%,
10/01/2039
349
420
FirstEnergy
Corp
3.90%,
07/15/2027
900
963
Florida
Power
&
Light
Co
3.15%,
10/01/2049
90
91
3.70%,
12/01/2047
200
218
5.65%,
02/01/2037
478
637
5.69%,
03/01/2040
48
65
Fortis
Inc/Canada
3.06%,
10/04/2026
13
13
Georgia
Power
Co
2.20%,
09/15/2024
165
165
4.30%,
03/15/2042
228
250
Gulf
Power
Co
3.30%,
05/30/2027
400
417
Hydro-Quebec
8.05%,
07/07/2024
102
128
Iberdrola
International
BV
6.75%,
07/15/2036
128
179
Interstate
Power
&
Light
Co
4.10%,
09/26/2028
300
329
Kentucky
Utilities
Co
5.13%,
11/01/2040
250
310
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
110
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
MidAmerican
Energy
Co
3.15%,
04/15/2050
$
165
$
163
3.65%,
04/15/2029
300
328
4.25%,
05/01/2046
500
581
4.25%,
07/15/2049
300
360
Mississippi
Power
Co
4.25%,
03/15/2042
100
108
National
Rural
Utilities
Cooperative
Finance
Corp
2.40%,
04/25/2022
300
303
3.05%,
02/15/2022
102
104
3.05%,
04/25/2027
300
311
3.25%,
11/01/2025
500
528
NextEra
Energy
Capital
Holdings
Inc
2.40%,
09/01/2021
500
504
2.75%,
11/01/2029
115
116
5.65%,
05/01/2079
(f)
500
554
3
Month
USD
LIBOR
+
3.16%
Northern
States
Power
Co/MN
2.90%,
03/01/2050
80
76
3.40%,
08/15/2042
100
105
5.35%,
11/01/2039
82
108
NorthWestern
Corp
4.18%,
11/15/2044
300
335
NSTAR
Electric
Co
2.38%,
10/15/2022
750
757
Oncor
Electric
Delivery
Co
LLC
2.75%,
06/01/2024
300
304
3.10%,
09/15/2049
430
420
5.25%,
09/30/2040
51
65
7.25%,
01/15/2033
300
433
PacifiCorp
6.25%,
10/15/2037
92
129
PECO
Energy
Co
2.38%,
09/15/2022
100
101
3.90%,
03/01/2048
200
226
PPL
Capital
Funding
Inc
4.70%,
06/01/2043
100
112
PPL
Electric
Utilities
Corp
3.00%,
10/01/2049
80
77
3.95%,
06/01/2047
300
334
Progress
Energy
Inc
3.15%,
04/01/2022
128
131
7.75%,
03/01/2031
136
192
Public
Service
Co
of
Colorado
2.25%,
09/15/2022
500
504
3.20%,
03/01/2050
600
599
3.70%,
06/15/2028
300
327
Public
Service
Electric
&
Gas
Co
3.00%,
05/15/2027
400
414
3.25%,
09/01/2023
400
417
3.65%,
09/01/2042
200
214
Puget
Sound
Energy
Inc
3.25%,
09/15/2049
60
60
5.80%,
03/15/2040
351
467
Sempra
Energy
2.90%,
02/01/2023
300
306
3.40%,
02/01/2028
300
311
3.80%,
02/01/2038
300
314
4.00%,
02/01/2048
400
420
6.00%,
10/15/2039
112
145
Southern
California
Edison
Co
2.85%,
08/01/2029
125
125
4.00%,
04/01/2047
585
616
4.65%,
10/01/2043
550
624
5.50%,
03/15/2040
102
126
5.95%,
02/01/2038
117
148
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Southern
Co/The
2.35%,
07/01/2021
$
520
$
523
3.25%,
07/01/2026
570
594
5.50%,
03/15/2057
(f)
400
419
3
Month
USD
LIBOR
+
3.63%
Southern
Power
Co
5.25%,
07/15/2043
200
229
Southwestern
Electric
Power
Co
3.85%,
02/01/2048
300
312
4.10%,
09/15/2028
400
438
6.20%,
03/15/2040
51
67
Tampa
Electric
Co
4.35%,
05/15/2044
200
227
Union
Electric
Co
3.50%,
04/15/2024
500
526
Virginia
Electric
&
Power
Co
2.75%,
03/15/2023
500
509
2.88%,
07/15/2029
90
92
3.15%,
01/15/2026
30
31
3.30%,
12/01/2049
615
621
4.65%,
08/15/2043
250
299
6.00%,
05/15/2037
77
104
8.88%,
11/15/2038
10
17
WEC
Energy
Group
Inc
3.55%,
06/15/2025
110
117
Wisconsin
Electric
Power
Co
2.05%,
12/15/2024
65
65
5.70%,
12/01/2036
450
593
Xcel
Energy
Inc
2.60%,
12/01/2029
115
114
$
43,669
Electronics
-
0.15%
Allegion
US
Holding
Co
Inc
3.55%,
10/01/2027
500
513
Arrow
Electronics
Inc
4.50%,
03/01/2023
200
211
Fortive
Corp
3.15%,
06/15/2026
535
547
Honeywell
International
Inc
2.15%,
08/08/2022
115
116
2.30%,
08/15/2024
365
369
2.50%,
11/01/2026
50
51
2.70%,
08/15/2029
85
87
3.81%,
11/21/2047
77
88
Jabil
Inc
3.95%,
01/12/2028
300
308
Roper
Technologies
Inc
2.35%,
09/15/2024
110
111
2.80%,
12/15/2021
500
507
2.95%,
09/15/2029
95
96
3.13%,
11/15/2022
750
769
Tyco
Electronics
Group
SA
7.13%,
10/01/2037
14
21
$
3,794
Environmental
Control
-
0.09%
Republic
Services
Inc
2.50%,
08/15/2024
215
217
2.90%,
07/01/2026
500
512
3.95%,
05/15/2028
300
331
5.25%,
11/15/2021
200
212
Waste
Management
Inc
3.90%,
03/01/2035
200
220
4.10%,
03/01/2045
210
236
4.15%,
07/15/2049
115
132
4.60%,
03/01/2021
350
359
$
2,219
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
111
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Finance
-
Mortgage
Loan/Banker
-
0.87%
Fannie
Mae
1.25%,
05/06/2021
$
500
$
498
1.38%,
02/26/2021
750
748
1.38%,
10/07/2021
400
399
1.38%,
09/06/2022
300
298
2.00%,
01/05/2022
400
403
2.00%,
10/05/2022
500
505
2.13%,
04/24/2026
500
508
2.25%,
04/12/2022
250
254
2.38%,
01/19/2023
500
511
2.50%,
02/05/2024
500
515
2.63%,
01/11/2022
500
510
2.63%,
09/06/2024
750
781
5.63%,
07/15/2037
200
293
6.63%,
11/15/2030
602
858
7.13%,
01/15/2030
199
288
7.25%,
05/15/2030
280
412
Federal
Home
Loan
Banks
1.13%,
07/14/2021
1,500
1,489
1.38%,
02/18/2021
250
249
1.88%,
11/29/2021
250
251
2.13%,
06/09/2023
1,125
1,143
2.50%,
02/13/2024
2,000
2,062
3.00%,
10/12/2021
1,000
1,024
3.25%,
11/16/2028
1,500
1,640
5.50%,
07/15/2036
700
984
5.63%,
06/11/2021
350
370
Freddie
Mac
2.38%,
02/16/2021
1,000
1,009
2.38%,
01/13/2022
1,757
1,784
2.75%,
06/19/2023
1,000
1,039
6.25%,
07/15/2032
231
333
6.75%,
03/15/2031
577
836
$
21,994
Food
-
0.41%
Campbell
Soup
Co
3.30%,
03/19/2025
300
309
4.15%,
03/15/2028
160
174
Conagra
Brands
Inc
3.20%,
01/25/2023
567
584
4.85%,
11/01/2028
205
235
5.30%,
11/01/2038
120
143
5.40%,
11/01/2048
120
147
General
Mills
Inc
2.60%,
10/12/2022
500
508
3.15%,
12/15/2021
77
79
3.70%,
10/17/2023
300
316
4.00%,
04/17/2025
300
325
Hershey
Co/The
3.38%,
08/15/2046
350
359
Kellogg
Co
2.65%,
12/01/2023
417
425
3.25%,
04/01/2026
500
520
Koninklijke
Ahold
Delhaize
NV
5.70%,
10/01/2040
30
37
Kraft
Heinz
Foods
Co
3.00%,
06/01/2026
65
65
3.50%,
06/06/2022
330
340
3.75%,
04/01/2030
(d)
165
170
3.95%,
07/15/2025
625
662
4.38%,
06/01/2046
395
389
5.00%,
06/04/2042
200
214
5.20%,
07/15/2045
235
255
6.50%,
02/09/2040
75
91
6.88%,
01/26/2039
161
201
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Food
(continued)
Kroger
Co/The
3.30%,
01/15/2021
$
321
$
325
3.40%,
04/15/2022
154
158
3.70%,
08/01/2027
300
321
4.45%,
02/01/2047
55
58
5.15%,
08/01/2043
300
344
5.40%,
07/15/2040
25
29
5.40%,
01/15/2049
400
489
Mondelez
International
Inc
3.63%,
05/07/2023
300
315
4.13%,
05/07/2028
300
332
Sysco
Corp
4.85%,
10/01/2045
250
301
5.38%,
09/21/2035
500
614
Tyson
Foods
Inc
3.55%,
06/02/2027
20
21
4.55%,
06/02/2047
520
595
$
10,450
Forest
Products
&
Paper
-
0.10%
Celulosa
Arauco
y
Constitucion
SA
4.50%,
08/01/2024
500
524
Georgia-Pacific
LLC
7.75%,
11/15/2029
51
72
8.00%,
01/15/2024
228
277
International
Paper
Co
3.00%,
02/15/2027
35
36
3.65%,
06/15/2024
443
465
4.40%,
08/15/2047
350
375
4.80%,
06/15/2044
300
330
7.30%,
11/15/2039
25
35
7.50%,
08/15/2021
92
100
Suzano
Austria
GmbH
5.00%,
01/15/2030
300
315
$
2,529
Gas
-
0.09%
Atmos
Energy
Corp
3.38%,
09/15/2049
165
167
4.13%,
10/15/2044
400
451
Dominion
Energy
Gas
Holdings
LLC
2.50%,
11/15/2024
155
156
4.80%,
11/01/2043
300
343
NiSource
Inc
3.49%,
05/15/2027
20
21
5.95%,
06/15/2041
525
673
Southern
California
Gas
Co
3.15%,
09/15/2024
500
522
$
2,333
Hand
&
Machine
Tools
-
0.01%
Stanley
Black
&
Decker
Inc
2.90%,
11/01/2022
200
205
Healthcare
-
Products
-
0.26%
Abbott
Laboratories
2.55%,
03/15/2022
35
36
2.95%,
03/15/2025
500
521
3.75%,
11/30/2026
266
291
4.75%,
11/30/2036
40
50
4.90%,
11/30/2046
500
657
5.30%,
05/27/2040
200
263
Boston
Scientific
Corp
3.85%,
05/15/2025
270
290
4.70%,
03/01/2049
50
61
7.38%,
01/15/2040
51
78
DH
Europe
Finance
II
Sarl
2.05%,
11/15/2022
155
155
2.60%,
11/15/2029
155
154
3.25%,
11/15/2039
155
156
Koninklijke
Philips
NV
5.00%,
03/15/2042
128
154
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
112
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Products
(continued)
Medtronic
Inc
3.15%,
03/15/2022
$
220
$
226
3.50%,
03/15/2025
837
897
4.38%,
03/15/2035
15
18
4.63%,
03/15/2045
507
639
Stryker
Corp
3.50%,
03/15/2026
500
532
4.10%,
04/01/2043
200
218
4.63%,
03/15/2046
20
24
Thermo
Fisher
Scientific
Inc
2.60%,
10/01/2029
160
158
2.95%,
09/19/2026
530
545
4.15%,
02/01/2024
20
21
Zimmer
Biomet
Holdings
Inc
3.15%,
04/01/2022
500
511
$
6,655
Healthcare
-
Services
-
0.56%
Aetna
Inc
2.80%,
06/15/2023
35
36
4.13%,
11/15/2042
100
102
6.63%,
06/15/2036
105
142
6.75%,
12/15/2037
112
151
Anthem
Inc
2.88%,
09/15/2029
120
120
2.95%,
12/01/2022
300
307
3.30%,
01/15/2023
325
336
3.50%,
08/15/2024
15
16
3.65%,
12/01/2027
300
318
4.38%,
12/01/2047
300
331
4.63%,
05/15/2042
30
34
4.65%,
01/15/2043
115
130
Ascension
Health
3.95%,
11/15/2046
500
555
Baylor
Scott
&
White
Holdings
3.97%,
11/15/2046
232
252
Children's
Hospital
Corp/The
4.12%,
01/01/2047
500
567
Children's
Hospital
Medical
Center/Cincinnati
OH
4.27%,
05/15/2044
215
246
CommonSpirit
Health
4.35%,
11/01/2042
200
205
Dignity
Health
3.13%,
11/01/2022
500
509
HCA
Inc
4.13%,
06/15/2029
1,000
1,061
4.50%,
02/15/2027
400
431
5.25%,
06/15/2026
400
448
Humana
Inc
3.13%,
08/15/2029
85
87
4.95%,
10/01/2044
325
384
Kaiser
Foundation
Hospitals
3.27%,
11/01/2049
230
231
4.15%,
05/01/2047
470
537
Laboratory
Corp
of
America
Holdings
2.30%,
12/01/2024
310
309
2.95%,
12/01/2029
310
311
4.70%,
02/01/2045
115
130
Memorial
Sloan-Kettering
Cancer
Center
4.13%,
07/01/2052
200
228
4.20%,
07/01/2055
250
290
Mount
Sinai
Hospitals
Group
Inc
3.98%,
07/01/2048
400
406
Partners
Healthcare
System
Inc
4.12%,
07/01/2055
300
336
Quest
Diagnostics
Inc
2.95%,
06/30/2030
155
155
4.70%,
04/01/2021
102
105
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Services
(continued)
UnitedHealth
Group
Inc
2.38%,
10/15/2022
$
500
$
506
2.38%,
08/15/2024
250
253
2.88%,
03/15/2022
180
184
2.88%,
08/15/2029
175
180
3.45%,
01/15/2027
540
579
3.50%,
08/15/2039
200
210
3.70%,
08/15/2049
350
376
4.25%,
06/15/2048
165
192
4.38%,
03/15/2042
750
867
4.45%,
12/15/2048
120
144
4.63%,
07/15/2035
30
36
4.70%,
02/15/2021
90
92
6.50%,
06/15/2037
77
110
6.88%,
02/15/2038
491
728
$
14,263
Home
Furnishings
-
0.00%
Whirlpool
Corp
4.85%,
06/15/2021
77
80
Insurance
-
0.82%
Aflac
Inc
3.63%,
11/15/2024
230
246
Allied
World
Assurance
Co
Holdings
Ltd
4.35%,
10/29/2025
500
528
Allstate
Corp/The
3.28%,
12/15/2026
500
528
5.55%,
05/09/2035
(e)
200
253
American
International
Group
Inc
3.75%,
07/10/2025
20
21
3.88%,
01/15/2035
750
796
4.20%,
04/01/2028
190
209
4.38%,
01/15/2055
30
33
4.70%,
07/10/2035
750
869
4.80%,
07/10/2045
50
60
4.88%,
06/01/2022
280
299
Aon
Corp
2.20%,
11/15/2022
660
663
Arch
Capital
Finance
LLC
5.03%,
12/15/2046
250
313
Arch
Capital
Group
US
Inc
5.14%,
11/01/2043
375
465
Athene
Holding
Ltd
4.13%,
01/12/2028
500
518
AXA
Equitable
Holdings
Inc
4.35%,
04/20/2028
205
223
AXA
SA
8.60%,
12/15/2030
38
55
Berkshire
Hathaway
Finance
Corp
4.20%,
08/15/2048
285
337
4.25%,
01/15/2021
102
105
4.25%,
01/15/2049
400
475
4.30%,
05/15/2043
300
347
5.75%,
01/15/2040
115
158
Berkshire
Hathaway
Inc
2.20%,
03/15/2021
415
417
2.75%,
03/15/2023
30
31
3.13%,
03/15/2026
350
369
3.40%,
01/31/2022
205
212
4.50%,
02/11/2043
25
30
Chubb
Corp/The
6.50%,
05/15/2038
10
15
Chubb
INA
Holdings
Inc
2.88%,
11/03/2022
500
513
3.35%,
05/03/2026
30
32
4.35%,
11/03/2045
25
30
6.70%,
05/15/2036
250
362
CNA
Financial
Corp
5.75%,
08/15/2021
77
81
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
113
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Insurance
(continued)
Hartford
Financial
Services
Group
Inc/The
3.60%,
08/19/2049
$
170
$
175
4.30%,
04/15/2043
250
278
Lincoln
National
Corp
4.00%,
09/01/2023
1,000
1,065
4.35%,
03/01/2048
55
61
7.00%,
06/15/2040
47
67
Loews
Corp
2.63%,
05/15/2023
200
204
4.13%,
05/15/2043
200
222
Manulife
Financial
Corp
5.38%,
03/04/2046
250
333
Marsh
&
McLennan
Cos
Inc
3.75%,
03/14/2026
750
806
3.88%,
03/15/2024
500
533
4.38%,
03/15/2029
50
57
4.90%,
03/15/2049
400
508
MetLife
Inc
3.00%,
03/01/2025
300
312
3.60%,
04/10/2024
250
266
4.37%,
09/15/2023
235
255
4.60%,
05/13/2046
225
277
4.88%,
11/13/2043
20
25
5.70%,
06/15/2035
164
221
6.40%,
12/15/2066
288
353
3
Month
USD
LIBOR
+
2.21%
Progressive
Corp/The
3.75%,
08/23/2021
277
286
4.35%,
04/25/2044
200
234
Prudential
Financial
Inc
3.50%,
05/15/2024
700
745
3.70%,
03/13/2051
130
137
3.91%,
12/07/2047
177
191
4.35%,
02/25/2050
500
576
4.50%,
11/16/2021
128
134
5.20%,
03/15/2044
(f)
350
373
3
Month
USD
LIBOR
+
3.04%
5.70%,
12/14/2036
25
34
5.70%,
09/15/2048
(f)
150
171
3
Month
USD
LIBOR
+
2.67%
Reinsurance
Group
of
America
Inc
4.70%,
09/15/2023
200
217
Travelers
Cos
Inc/The
4.00%,
05/30/2047
400
453
6.25%,
06/15/2037
12
17
6.75%,
06/20/2036
51
74
Trinity
Acquisition
PLC
4.40%,
03/15/2026
500
544
Willis
North
America
Inc
2.95%,
09/15/2029
55
55
3.60%,
05/15/2024
300
313
3.88%,
09/15/2049
165
165
XLIT
Ltd
5.25%,
12/15/2043
400
517
$
20,847
Internet
-
0.28%
Alibaba
Group
Holding
Ltd
3.13%,
11/28/2021
270
275
3.40%,
12/06/2027
325
339
3.60%,
11/28/2024
300
316
4.40%,
12/06/2057
305
351
Alphabet
Inc
2.00%,
08/15/2026
30
30
3.38%,
02/25/2024
530
564
3.63%,
05/19/2021
51
52
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Internet
(continued)
Amazon.com
Inc
2.40%,
02/22/2023
$
370
$
377
2.50%,
11/29/2022
130
133
3.15%,
08/22/2027
490
519
3.80%,
12/05/2024
20
22
3.88%,
08/22/2037
340
386
4.05%,
08/22/2047
30
35
4.25%,
08/22/2057
630
768
4.80%,
12/05/2034
30
38
4.95%,
12/05/2044
515
675
Baidu
Inc
3.50%,
11/28/2022
500
514
4.13%,
06/30/2025
500
532
eBay
Inc
2.60%,
07/15/2022
600
603
3.45%,
08/01/2024
30
31
3.80%,
03/09/2022
500
517
4.00%,
07/15/2042
100
99
$
7,176
Iron
&
Steel
-
0.11%
ArcelorMittal
SA
3.60%,
07/16/2024
95
97
4.25%,
07/16/2029
(e)
70
73
Nucor
Corp
4.00%,
08/01/2023
500
529
Steel
Dynamics
Inc
2.80%,
12/15/2024
80
81
Vale
Overseas
Ltd
6.25%,
08/10/2026
400
470
6.88%,
11/21/2036
1,117
1,452
8.25%,
01/17/2034
38
53
$
2,755
Leisure
Products
&
Services
-
0.02%
Royal
Caribbean
Cruises
Ltd
7.50%,
10/15/2027
400
508
Lodging
-
0.08%
Las
Vegas
Sands
Corp
3.20%,
08/08/2024
170
175
3.50%,
08/18/2026
85
87
3.90%,
08/08/2029
170
178
Marriott
International
Inc/MD
2.30%,
01/15/2022
30
30
2.88%,
03/01/2021
500
505
3.13%,
10/15/2021
500
509
Sands
China
Ltd
4.60%,
08/08/2023
200
211
5.40%,
08/08/2028
300
338
$
2,033
Machinery
-
Construction
&
Mining
-
0.10%
ABB
Finance
USA
Inc
2.88%,
05/08/2022
100
102
Caterpillar
Financial
Services
Corp
1.70%,
08/09/2021
380
379
1.90%,
09/06/2022
815
817
1.93%,
10/01/2021
190
190
Caterpillar
Inc
3.25%,
09/19/2049
160
161
3.40%,
05/15/2024
30
32
3.80%,
08/15/2042
105
118
3.90%,
05/27/2021
60
62
4.75%,
05/15/2064
350
442
6.05%,
08/15/2036
132
180
$
2,483
Machinery
-
Diversified
-
0.09%
Deere
&
Co
2.88%,
09/07/2049
165
157
3.90%,
06/09/2042
30
34
5.38%,
10/16/2029
500
622
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
114
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Machinery
-
Diversified
(continued)
Dover
Corp
5.38%,
03/01/2041
$
77
$
93
John
Deere
Capital
Corp
1.95%,
06/13/2022
375
376
2.25%,
09/14/2026
60
60
2.80%,
03/06/2023
20
20
2.80%,
07/18/2029
385
395
3.90%,
07/12/2021
500
517
$
2,274
Media
-
0.90%
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
4.46%,
07/23/2022
340
357
4.80%,
03/01/2050
545
575
5.75%,
04/01/2048
605
707
6.38%,
10/23/2035
1,100
1,385
6.48%,
10/23/2045
435
539
Comcast
Corp
2.35%,
01/15/2027
60
60
2.65%,
02/01/2030
125
126
2.75%,
03/01/2023
115
118
2.85%,
01/15/2023
100
103
3.13%,
07/15/2022
30
31
3.15%,
03/01/2026
30
31
3.25%,
11/01/2039
245
249
3.38%,
08/15/2025
525
557
3.40%,
07/15/2046
20
20
3.45%,
02/01/2050
485
497
3.55%,
05/01/2028
125
135
3.70%,
04/15/2024
1,140
1,216
3.90%,
03/01/2038
150
166
4.00%,
08/15/2047
30
33
4.00%,
03/01/2048
400
444
4.00%,
11/01/2049
20
22
4.20%,
08/15/2034
750
856
4.25%,
01/15/2033
120
139
4.40%,
08/15/2035
500
587
4.60%,
10/15/2038
485
578
4.60%,
08/15/2045
500
601
4.65%,
07/15/2042
615
740
4.75%,
03/01/2044
45
55
5.65%,
06/15/2035
20
26
6.40%,
03/01/2040
500
714
6.45%,
03/15/2037
85
120
6.95%,
08/15/2037
274
406
7.05%,
03/15/2033
15
22
Discovery
Communications
LLC
3.95%,
03/20/2028
500
534
4.38%,
06/15/2021
500
516
4.88%,
04/01/2043
25
27
6.35%,
06/01/2040
73
93
Fox
Corp
5.58%,
01/25/2049
(d)
500
637
Grupo
Televisa
SAB
4.63%,
01/30/2026
500
536
NBCUniversal
Media
LLC
4.38%,
04/01/2021
151
156
4.45%,
01/15/2043
15
18
6.40%,
04/30/2040
251
359
Thomson
Reuters
Corp
5.85%,
04/15/2040
25
30
Time
Warner
Cable
LLC
4.00%,
09/01/2021
190
194
5.50%,
09/01/2041
340
380
5.88%,
11/15/2040
20
23
6.55%,
05/01/2037
176
216
6.75%,
06/15/2039
77
97
7.30%,
07/01/2038
300
391
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
(continued)
Time
Warner
Entertainment
Co
LP
8.38%,
07/15/2033
$
95
$
133
TWDC
Enterprises
18
Corp
2.30%,
02/12/2021
500
503
2.75%,
08/16/2021
102
104
3.70%,
12/01/2042
100
109
3.75%,
06/01/2021
200
206
7.00%,
03/01/2032
51
74
ViacomCBS
Inc
2.90%,
06/01/2023
200
204
3.88%,
12/15/2021
128
132
4.00%,
01/15/2026
515
552
4.30%,
02/15/2021
535
546
4.38%,
03/15/2043
435
461
4.85%,
07/01/2042
200
224
6.88%,
04/30/2036
181
242
7.88%,
07/30/2030
178
250
Walt
Disney
Co/The
1.75%,
08/30/2024
325
323
2.00%,
09/01/2029
245
238
2.75%,
09/01/2049
325
307
3.70%,
10/15/2025
500
541
4.50%,
02/15/2021
200
206
4.75%,
11/15/2046
230
294
4.95%,
10/15/2045
350
457
6.20%,
12/15/2034
154
216
6.40%,
12/15/2035
98
139
$
22,883
Metal
Fabrication
&
Hardware
-
0.02%
Precision
Castparts
Corp
2.50%,
01/15/2023
100
102
3.25%,
06/15/2025
25
26
4.38%,
06/15/2045
250
289
$
417
Mining
-
0.20%
Barrick
Gold
Corp
5.25%,
04/01/2042
20
24
Barrick
North
America
Finance
LLC
5.75%,
05/01/2043
355��
452
Barrick
PD
Australia
Finance
Pty
Ltd
5.95%,
10/15/2039
90
114
BHP
Billiton
Finance
USA
Ltd
4.13%,
02/24/2042
1,003
1,144
5.00%,
09/30/2043
270
346
Newmont
Goldcorp
Corp
3.50%,
03/15/2022
30
31
3.63%,
06/09/2021
300
306
4.88%,
03/15/2042
20
23
6.25%,
10/01/2039
515
682
Rio
Tinto
Alcan
Inc
6.13%,
12/15/2033
77
104
Rio
Tinto
Finance
USA
Ltd
7.13%,
07/15/2028
537
720
Rio
Tinto
Finance
USA
PLC
4.75%,
03/22/2042
328
402
Southern
Copper
Corp
5.88%,
04/23/2045
350
439
6.75%,
04/16/2040
258
344
$
5,131
Miscellaneous
Manufacturers
-
0.25%
3M
Co
1.63%,
09/19/2021
500
499
1.75%,
02/14/2023
65
65
2.00%,
02/14/2025
130
129
2.38%,
08/26/2029
500
493
3.25%,
08/26/2049
400
389
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
115
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Miscellaneous
Manufacturers
(continued)
Eaton
Corp
2.75%,
11/02/2022
$
100
$
102
3.92%,
09/15/2047
400
428
4.00%,
11/02/2032
100
113
4.15%,
11/02/2042
50
56
General
Electric
Co
2.70%,
10/09/2022
385
390
3.10%,
01/09/2023
35
36
4.13%,
10/09/2042
26
27
4.63%,
01/07/2021
77
79
4.65%,
10/17/2021
30
31
5.30%,
02/11/2021
308
318
6.15%,
08/07/2037
155
193
6.75%,
03/15/2032
896
1,151
Illinois
Tool
Works
Inc
2.65%,
11/15/2026
500
514
3.50%,
03/01/2024
350
371
Ingersoll-Rand
Luxembourg
Finance
SA
4.65%,
11/01/2044
300
339
Parker-Hannifin
Corp
3.50%,
09/15/2022
577
599
$
6,322
Oil
&
Gas
-
1.58%
Apache
Corp
4.75%,
04/15/2043
133
129
5.10%,
09/01/2040
342
348
BP
Capital
Markets
America
Inc
3.22%,
04/14/2024
420
439
3.59%,
04/14/2027
30
32
4.74%,
03/11/2021
128
132
BP
Capital
Markets
PLC
2.50%,
11/06/2022
1,220
1,242
3.06%,
03/17/2022
315
323
3.28%,
09/19/2027
175
184
3.56%,
11/01/2021
200
206
3.72%,
11/28/2028
40
44
3.81%,
02/10/2024
400
427
Canadian
Natural
Resources
Ltd
2.95%,
01/15/2023
30
31
3.85%,
06/01/2027
55
59
4.95%,
06/01/2047
20
24
6.25%,
03/15/2038
664
864
Cenovus
Energy
Inc
4.25%,
04/15/2027
400
424
5.40%,
06/15/2047
480
558
Chevron
Corp
2.10%,
05/16/2021
80
80
2.36%,
12/05/2022
325
330
2.41%,
03/03/2022
500
507
2.95%,
05/16/2026
355
371
CNOOC
Finance
2013
Ltd
2.88%,
09/30/2029
200
200
3.00%,
05/09/2023
150
152
4.25%,
05/09/2043
100
111
CNOOC
Nexen
Finance
2014
ULC
4.25%,
04/30/2024
500
534
Concho
Resources
Inc
4.30%,
08/15/2028
300
327
4.88%,
10/01/2047
120
140
Conoco
Funding
Co
7.25%,
10/15/2031
200
286
ConocoPhillips
6.50%,
02/01/2039
169
246
ConocoPhillips
Co
4.30%,
11/15/2044
420
493
ConocoPhillips
Holding
Co
6.95%,
04/15/2029
202
275
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Continental
Resources
Inc/OK
4.38%,
01/15/2028
$
600
$
638
Devon
Energy
Corp
5.00%,
06/15/2045
10
12
5.60%,
07/15/2041
425
517
Diamondback
Energy
Inc
2.88%,
12/01/2024
155
157
3.25%,
12/01/2026
155
157
Ecopetrol
SA
5.88%,
09/18/2023
650
719
5.88%,
05/28/2045
400
471
EOG
Resources
Inc
2.63%,
03/15/2023
200
204
4.15%,
01/15/2026
350
385
Equinor
ASA
2.45%,
01/17/2023
30
30
2.65%,
01/15/2024
400
410
3.15%,
01/23/2022
102
105
3.25%,
11/18/2049
420
423
5.10%,
08/17/2040
263
335
Exxon
Mobil
Corp
1.90%,
08/16/2022
500
503
2.02%,
08/16/2024
250
251
2.28%,
08/16/2026
500
503
2.44%,
08/16/2029
150
151
3.00%,
08/16/2039
150
150
3.10%,
08/16/2049
450
449
Hess
Corp
5.60%,
02/15/2041
51
60
7.13%,
03/15/2033
221
280
7.30%,
08/15/2031
25
32
HollyFrontier
Corp
5.88%,
04/01/2026
475
536
Marathon
Oil
Corp
2.80%,
11/01/2022
10
10
3.85%,
06/01/2025
505
535
6.60%,
10/01/2037
223
285
Marathon
Petroleum
Corp
3.63%,
09/15/2024
400
420
5.00%,
09/15/2054
200
216
5.13%,
03/01/2021
77
80
5.13%,
12/15/2026
300
340
Newfield
Exploration
Co
5.63%,
07/01/2024
500
549
Nexen
Inc
5.88%,
03/10/2035
340
434
6.40%,
05/15/2037
157
215
7.50%,
07/30/2039
15
23
Noble
Energy
Inc
3.25%,
10/15/2029
325
329
5.05%,
11/15/2044
25
28
5.25%,
11/15/2043
350
394
6.00%,
03/01/2041
102
123
Occidental
Petroleum
Corp
2.60%,
08/13/2021
85
86
2.70%,
08/15/2022
365
369
2.70%,
02/15/2023
330
333
2.90%,
08/15/2024
490
498
3.13%,
02/15/2022
30
31
3.20%,
08/15/2026
125
126
3.50%,
06/15/2025
500
516
3.50%,
08/15/2029
170
174
4.10%,
02/15/2047
300
292
4.30%,
08/15/2039
40
41
4.40%,
04/15/2046
50
51
4.40%,
08/15/2049
50
52
4.50%,
07/15/2044
100
101
4.63%,
06/15/2045
25
26
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
116
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Occidental
Petroleum
Corp
(continued)
4.85%,
03/15/2021
$
16
$
16
6.20%,
03/15/2040
25
30
6.45%,
09/15/2036
725
891
6.60%,
03/15/2046
40
52
7.50%,
05/01/2031
77
100
Petroleos
Mexicanos
4.50%,
01/23/2026
500
498
6.49%,
01/23/2027
(d)
559
595
6.50%,
03/13/2027
1,790
1,900
6.63%,
06/15/2035
536
549
6.75%,
09/21/2047
640
641
6.84%,
01/23/2030
(d)
240
256
7.69%,
01/23/2050
(d)
979
1,068
Phillips
66
4.30%,
04/01/2022
1,143
1,200
5.88%,
05/01/2042
128
173
Pioneer
Natural
Resources
Co
3.95%,
07/15/2022
100
104
Shell
International
Finance
BV
1.75%,
09/12/2021
65
65
2.00%,
11/07/2024
155
155
2.38%,
08/21/2022
130
132
2.38%,
11/07/2029
155
154
2.50%,
09/12/2026
330
336
3.13%,
11/07/2049
155
153
3.63%,
08/21/2042
100
107
3.75%,
09/12/2046
30
33
4.00%,
05/10/2046
245
279
4.13%,
05/11/2035
1,610
1,884
4.38%,
05/11/2045
490
585
4.55%,
08/12/2043
35
43
5.50%,
03/25/2040
25
34
6.38%,
12/15/2038
43
63
Suncor
Energy
Inc
4.00%,
11/15/2047
90
98
5.95%,
05/15/2035
400
520
6.50%,
06/15/2038
428
596
6.80%,
05/15/2038
12
17
6.85%,
06/01/2039
5
7
Total
Capital
International
SA
2.22%,
07/12/2021
1,035
1,041
2.43%,
01/10/2025
85
86
2.83%,
01/10/2030
85
87
2.88%,
02/17/2022
128
131
3.46%,
02/19/2029
800
867
3.46%,
07/12/2049
85
89
Valero
Energy
Corp
3.65%,
03/15/2025
500
532
6.63%,
06/15/2037
234
310
7.50%,
04/15/2032
15
21
$
40,171
Oil
&
Gas
Services
-
0.13%
Baker
Hughes
a
GE
Co
LLC
/
Baker
Hughes
Co-
Obligor
Inc
2.77%,
12/15/2022
155
158
3.14%,
11/07/2029
155
160
3.34%,
12/15/2027
165
172
4.08%,
12/15/2047
170
174
Halliburton
Co
3.25%,
11/15/2021
651
664
3.80%,
11/15/2025
1,000
1,067
4.50%,
11/15/2041
51
54
4.85%,
11/15/2035
275
311
7.45%,
09/15/2039
10
15
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
Services
(continued)
National
Oilwell
Varco
Inc
2.60%,
12/01/2022
$
144
$
145
3.60%,
12/01/2029
155
156
3.95%,
12/01/2042
200
184
$
3,260
Packaging
&
Containers
-
0.04%
Packaging
Corp
of
America
3.00%,
12/15/2029
310
312
4.05%,
12/15/2049
155
161
WestRock
RKT
LLC
4.00%,
03/01/2023
500
522
$
995
Pharmaceuticals
-
1.60%
AbbVie
Inc
2.15%,
11/19/2021
(d)
310
310
2.30%,
11/21/2022
(d)
310
312
2.60%,
11/21/2024
(d)
465
469
2.90%,
11/06/2022
200
204
2.95%,
11/21/2026
(d)
310
316
3.20%,
05/14/2026
335
347
3.20%,
11/21/2029
(d)
775
788
3.38%,
11/14/2021
350
359
3.60%,
05/14/2025
500
528
3.75%,
11/14/2023
350
368
4.05%,
11/21/2039
(d)
385
405
4.25%,
11/14/2028
220
243
4.25%,
11/21/2049
(d)
620
658
4.30%,
05/14/2036
170
187
4.40%,
11/06/2042
200
215
4.45%,
05/14/2046
280
300
4.50%,
05/14/2035
300
338
4.70%,
05/14/2045
330
369
4.88%,
11/14/2048
210
243
Allergan
Finance
LLC
3.25%,
10/01/2022
180
184
4.63%,
10/01/2042
100
105
Allergan
Funding
SCS
3.45%,
03/15/2022
30
31
3.80%,
03/15/2025
330
347
3.85%,
06/15/2024
445
467
4.75%,
03/15/2045
235
256
AmerisourceBergen
Corp
3.40%,
05/15/2024
250
260
AstraZeneca
PLC
2.38%,
06/12/2022
20
20
3.38%,
11/16/2025
305
324
4.00%,
09/18/2042
125
137
4.38%,
11/16/2045
185
216
4.38%,
08/17/2048
90
105
6.45%,
09/15/2037
164
231
Becton
Dickinson
and
Co
2.89%,
06/06/2022
50
51
3.36%,
06/06/2024
20
21
3.73%,
12/15/2024
394
418
4.67%,
06/06/2047
35
42
4.69%,
12/15/2044
196
229
Bristol-Myers
Squibb
Co
2.55%,
05/14/2021
(d)
500
505
2.60%,
05/16/2022
(d)
500
508
2.90%,
07/26/2024
(d)
610
630
3.25%,
08/15/2022
(d)
25
26
3.25%,
02/20/2023
(d)
400
414
3.25%,
08/01/2042
300
300
3.40%,
07/26/2029
(d)
540
578
3.55%,
08/15/2022
(d)
20
21
3.88%,
08/15/2025
(d)
470
508
3.90%,
02/20/2028
(d)
185
204
4.13%,
06/15/2039
(d)
230
266
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
117
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Bristol-Myers
Squibb
Co
(continued)
4.25%,
10/26/2049
(d)
$
430
$
511
4.35%,
11/15/2047
(d)
150
179
4.55%,
02/20/2048
(d)
185
227
4.63%,
05/15/2044
(d)
355
430
5.00%,
08/15/2045
(d)
30
39
Cardinal
Health
Inc
2.62%,
06/15/2022
250
253
3.08%,
06/15/2024
50
51
3.20%,
03/15/2023
200
205
3.41%,
06/15/2027
200
205
4.60%,
03/15/2043
100
100
Cigna
Corp
3.25%,
04/15/2025
(d)
775
804
3.40%,
09/17/2021
400
409
4.13%,
11/15/2025
270
293
4.38%,
10/15/2028
750
831
4.75%,
11/15/2021
(d)
77
81
4.80%,
08/15/2038
400
467
4.80%,
07/15/2046
(d)
25
29
4.90%,
12/15/2048
360
430
6.13%,
11/15/2041
(d)
16
20
CVS
Health
Corp
2.13%,
06/01/2021
30
30
2.63%,
08/15/2024
420
424
3.00%,
08/15/2026
375
383
3.25%,
08/15/2029
170
173
3.50%,
07/20/2022
1,000
1,032
4.00%,
12/05/2023
70
74
4.10%,
03/25/2025
1,000
1,074
4.30%,
03/25/2028
500
546
4.78%,
03/25/2038
485
551
4.88%,
07/20/2035
1,000
1,150
5.05%,
03/25/2048
980
1,161
5.13%,
07/20/2045
370
439
5.30%,
12/05/2043
25
30
Eli
Lilly
&
Co
3.95%,
03/15/2049
400
463
GlaxoSmithKline
Capital
Inc
3.88%,
05/15/2028
545
602
5.38%,
04/15/2034
500
644
GlaxoSmithKline
Capital
PLC
2.85%,
05/08/2022
143
146
Johnson
&
Johnson
2.45%,
03/01/2026
30
30
2.95%,
03/03/2027
5
5
3.50%,
01/15/2048
90
99
3.63%,
03/03/2037
20
22
3.70%,
03/01/2046
225
254
3.75%,
03/03/2047
30
34
4.95%,
05/15/2033
201
251
5.95%,
08/15/2037
775
1,103
McKesson
Corp
4.75%,
03/01/2021
250
256
4.88%,
03/15/2044
150
164
Mead
Johnson
Nutrition
Co
4.60%,
06/01/2044
250
299
Merck
&
Co
Inc
2.35%,
02/10/2022
800
808
2.75%,
02/10/2025
385
400
2.80%,
05/18/2023
230
237
3.60%,
09/15/2042
100
108
3.70%,
02/10/2045
10
11
3.88%,
01/15/2021
40
41
3.90%,
03/07/2039
115
132
4.00%,
03/07/2049
170
199
4.15%,
05/18/2043
200
239
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Mylan
NV
3.75%,
12/15/2020
$
76
$
78
3.95%,
06/15/2026
595
620
5.25%,
06/15/2046
170
191
Novartis
Capital
Corp
3.00%,
11/20/2025
500
526
4.40%,
05/06/2044
350
427
Pfizer
Inc
1.95%,
06/03/2021
30
30
2.75%,
06/03/2026
35
36
3.00%,
06/15/2023
530
551
3.45%,
03/15/2029
210
226
4.00%,
03/15/2049
140
161
4.13%,
12/15/2046
525
610
4.20%,
09/15/2048
470
552
4.40%,
05/15/2044
30
36
5.60%,
09/15/2040
380
514
7.20%,
03/15/2039
176
277
Sanofi
3.38%,
06/19/2023
400
419
3.63%,
06/19/2028
400
441
Shire
Acquisitions
Investments
Ireland
DAC
2.40%,
09/23/2021
500
503
3.20%,
09/23/2026
525
541
Wyeth
LLC
5.95%,
04/01/2037
91
124
6.50%,
02/01/2034
144
203
Zoetis
Inc
3.25%,
02/01/2023
100
103
3.95%,
09/12/2047
5
5
$
40,715
Pipelines
-
1.01%
Boardwalk
Pipelines
LP
3.38%,
02/01/2023
200
204
Cheniere
Corpus
Christi
Holdings
LLC
3.70%,
11/15/2029
(d)
310
317
Columbia
Pipeline
Group
Inc
5.80%,
06/01/2045
250
317
Enable
Midstream
Partners
LP
5.00%,
05/15/2044
500
459
Enbridge
Energy
Partners
LP
7.38%,
10/15/2045
100
149
Enbridge
Inc
2.50%,
01/15/2025
155
156
3.13%,
11/15/2029
155
157
4.25%,
12/01/2026
750
826
5.50%,
12/01/2046
30
39
Energy
Transfer
Operating
LP
3.60%,
02/01/2023
15
15
4.75%,
01/15/2026
50
54
4.90%,
03/15/2035
600
630
5.20%,
02/01/2022
102
107
5.25%,
04/15/2029
400
449
5.30%,
04/15/2047
15
16
5.95%,
10/01/2043
350
391
6.13%,
12/15/2045
525
609
6.25%,
04/15/2049
500
603
6.50%,
02/01/2042
402
478
Enterprise
Products
Operating
LLC
3.35%,
03/15/2023
300
310
3.70%,
02/15/2026
525
559
3.75%,
02/15/2025
500
533
3.90%,
02/15/2024
250
265
4.25%,
02/15/2048
155
167
4.85%,
08/15/2042
300
348
4.85%,
03/15/2044
430
498
4.90%,
05/15/2046
400
469
6.13%,
10/15/2039
123
161
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
118
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pipelines
(continued)
Enterprise
Products
Operating
LLC
(continued)
6.45%,
09/01/2040
$
177
$
241
6.88%,
03/01/2033
15
20
EQM
Midstream
Partners
LP
4.75%,
07/15/2023
300
301
Kinder
Morgan
Energy
Partners
LP
3.50%,
03/01/2021
750
760
3.50%,
09/01/2023
200
207
4.15%,
03/01/2022
300
311
4.70%,
11/01/2042
200
214
5.00%,
03/01/2043
100
110
5.40%,
09/01/2044
400
461
6.38%,
03/01/2041
128
161
6.50%,
09/01/2039
112
142
6.95%,
01/15/2038
112
148
7.40%,
03/15/2031
177
232
Kinder
Morgan
Inc/DE
3.15%,
01/15/2023
500
511
4.30%,
06/01/2025
55
60
5.05%,
02/15/2046
15
17
5.55%,
06/01/2045
50
60
Magellan
Midstream
Partners
LP
3.95%,
03/01/2050
525
540
MPLX
LP
4.13%,
03/01/2027
425
446
4.25%,
12/01/2027
(d)
400
421
4.50%,
07/15/2023
30
32
4.50%,
04/15/2038
220
224
4.70%,
04/15/2048
185
189
4.88%,
12/01/2024
30
33
4.90%,
04/15/2058
60
61
5.20%,
03/01/2047
330
357
5.20%,
12/01/2047
(d)
200
213
5.50%,
02/15/2049
170
193
ONEOK
Inc
2.75%,
09/01/2024
175
177
3.40%,
09/01/2029
100
102
4.25%,
02/01/2022
300
311
4.45%,
09/01/2049
500
519
ONEOK
Partners
LP
5.00%,
09/15/2023
250
271
Plains
All
American
Pipeline
LP
/
PAA
Finance
Corp
2.85%,
01/31/2023
200
202
3.55%,
12/15/2029
865
853
3.65%,
06/01/2022
128
131
4.30%,
01/31/2043
200
184
4.50%,
12/15/2026
520
554
4.65%,
10/15/2025
15
16
Sabine
Pass
Liquefaction
LLC
5.00%,
03/15/2027
360
396
5.63%,
03/01/2025
390
439
5.75%,
05/15/2024
300
335
5.88%,
06/30/2026
345
397
Spectra
Energy
Partners
LP
5.95%,
09/25/2043
200
251
Sunoco
Logistics
Partners
Operations
LP
3.45%,
01/15/2023
200
203
4.95%,
01/15/2043
200
198
5.35%,
05/15/2045
15
16
Texas
Eastern
Transmission
LP
7.00%,
07/15/2032
100
134
TransCanada
PipeLines
Ltd
4.25%,
05/15/2028
300
333
4.75%,
05/15/2038
300
343
4.88%,
05/15/2048
420
497
5.60%,
03/31/2034
300
372
6.10%,
06/01/2040
25
33
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pipelines
(continued)
TransCanada
PipeLines
Ltd
(continued)
7.25%,
08/15/2038
$
51
$
74
Western
Midstream
Operating
LP
5.50%,
08/15/2048
300
264
Williams
Cos
Inc/The
3.35%,
08/15/2022
15
15
3.75%,
06/15/2027
400
417
3.90%,
01/15/2025
350
369
4.00%,
09/15/2025
595
631
5.10%,
09/15/2045
180
201
6.30%,
04/15/2040
343
426
$
25,615
Private
Equity
-
0.01%
Brookfield
Asset
Management
Inc
4.00%,
01/15/2025
300
323
Regional
Authority
-
0.27%
Province
of
Alberta
Canada
3.30%,
03/15/2028
850
920
Province
of
British
Columbia
Canada
2.00%,
10/23/2022
750
756
2.65%,
09/22/2021
77
78
6.50%,
01/15/2026
18
22
Province
of
Manitoba
Canada
3.05%,
05/14/2024
500
523
Province
of
Ontario
Canada
2.00%,
10/02/2029
1,000
982
2.40%,
02/08/2022
500
506
2.50%,
09/10/2021
500
506
3.20%,
05/16/2024
750
790
3.40%,
10/17/2023
305
323
Province
of
Quebec
Canada
2.63%,
02/13/2023
1,000
1,027
2.75%,
08/25/2021
231
235
7.50%,
09/15/2029
64
92
$
6,760
REITs
-
0.83%
Alexandria
Real
Estate
Equities
Inc
2.75%,
12/15/2029
80
79
3.38%,
08/15/2031
115
120
4.00%,
01/15/2024
250
266
4.00%,
02/01/2050
85
93
American
Campus
Communities
Operating
Partnership
LP
3.63%,
11/15/2027
300
316
American
Tower
Corp
3.38%,
10/15/2026
500
520
3.50%,
01/31/2023
530
549
3.70%,
10/15/2049
165
164
4.70%,
03/15/2022
278
293
AvalonBay
Communities
Inc
4.20%,
12/15/2023
400
429
Boston
Properties
LP
2.75%,
10/01/2026
550
558
2.90%,
03/15/2030
575
574
4.13%,
05/15/2021
77
79
Brixmor
Operating
Partnership
LP
3.85%,
02/01/2025
300
315
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp
3.85%,
04/15/2023
20
21
Crown
Castle
International
Corp
3.10%,
11/15/2029
150
152
3.20%,
09/01/2024
400
414
3.70%,
06/15/2026
765
809
4.00%,
11/15/2049
110
114
5.25%,
01/15/2023
30
33
Digital
Realty
Trust
LP
4.45%,
07/15/2028
250
277
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
119
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
REITs
(continued)
Duke
Realty
LP
2.88%,
11/15/2029
$
75
$
75
3.88%,
10/15/2022
100
104
4.00%,
09/15/2028
400
436
Equinix
Inc
2.63%,
11/18/2024
155
155
3.20%,
11/18/2029
260
261
ERP
Operating
LP
2.50%,
02/15/2030
125
124
4.63%,
12/15/2021
500
522
Essex
Portfolio
LP
3.00%,
01/15/2030
170
172
4.00%,
03/01/2029
300
326
4.50%,
03/15/2048
300
344
Federal
Realty
Investment
Trust
4.50%,
12/01/2044
250
289
GLP
Capital
LP
/
GLP
Financing
II
Inc
4.00%,
01/15/2030
170
174
5.38%,
04/15/2026
300
332
Healthpeak
Properties
Inc
3.00%,
01/15/2030
150
151
3.40%,
02/01/2025
300
313
4.20%,
03/01/2024
250
267
6.75%,
02/01/2041
300
423
Highwoods
Realty
LP
3.20%,
06/15/2021
350
355
Kimco
Realty
Corp
3.20%,
05/01/2021
250
254
3.70%,
10/01/2049
330
321
Liberty
Property
LP
3.38%,
06/15/2023
300
312
Mid-America
Apartments
LP
4.00%,
11/15/2025
500
541
National
Retail
Properties
Inc
4.30%,
10/15/2028
400
443
4.80%,
10/15/2048
200
242
Office
Properties
Income
Trust
4.00%,
07/15/2022
400
409
Omega
Healthcare
Investors
Inc
4.50%,
01/15/2025
300
320
4.95%,
04/01/2024
750
821
Prologis
LP
3.88%,
09/15/2028
250
276
Realty
Income
Corp
4.65%,
08/01/2023
250
271
Service
Properties
Trust
4.75%,
10/01/2026
165
169
5.00%,
08/15/2022
100
105
Simon
Property
Group
LP
2.00%,
09/13/2024
915
911
2.45%,
09/13/2029
140
138
3.25%,
11/30/2026
500
526
3.25%,
09/13/2049
140
136
4.25%,
11/30/2046
130
149
6.75%,
02/01/2040
25
37
SL
Green
Operating
Partnership
LP
3.25%,
10/15/2022
300
307
UDR
Inc
3.20%,
01/15/2030
165
169
4.00%,
10/01/2025
200
216
Ventas
Realty
LP
3.00%,
01/15/2030
200
198
3.50%,
04/15/2024
300
313
5.70%,
09/30/2043
300
373
VEREIT
Operating
Partnership
LP
3.10%,
12/15/2029
375
369
Weingarten
Realty
Investors
3.38%,
10/15/2022
180
184
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
REITs
(continued)
Welltower
Inc
3.63%,
03/15/2024
$
600
$
630
3.75%,
03/15/2023
200
209
4.13%,
03/15/2029
300
327
Weyerhaeuser
Co
7.38%,
03/15/2032
300
415
$
21,089
Retail
-
0.68%
AutoZone
Inc
3.75%,
06/01/2027
250
267
Costco
Wholesale
Corp
2.15%,
05/18/2021
35
35
2.30%,
05/18/2022
310
314
2.75%,
05/18/2024
50
52
3.00%,
05/18/2027
150
158
Dollar
General
Corp
4.15%,
11/01/2025
500
544
Dollar
Tree
Inc
4.20%,
05/15/2028
185
198
Home
Depot
Inc/The
2.13%,
09/15/2026
250
250
2.63%,
06/01/2022
30
31
2.70%,
04/01/2023
30
31
3.50%,
09/15/2056
305
318
3.75%,
02/15/2024
380
406
3.90%,
06/15/2047
30
34
4.20%,
04/01/2043
20
23
4.25%,
04/01/2046
590
696
4.40%,
03/15/2045
20
24
5.95%,
04/01/2041
351
496
Kohl's
Corp
5.55%,
07/17/2045
250
255
Lowe's
Cos
Inc
3.10%,
05/03/2027
530
548
3.65%,
04/05/2029
465
497
3.70%,
04/15/2046
40
41
4.05%,
05/03/2047
30
32
4.38%,
09/15/2045
500
558
McDonald's
Corp
2.63%,
09/01/2029
415
416
3.38%,
05/26/2025
500
529
3.63%,
09/01/2049
115
117
3.70%,
02/15/2042
128
130
4.70%,
12/09/2035
25
30
4.88%,
07/15/2040
9
10
4.88%,
12/09/2045
250
301
6.30%,
10/15/2037
262
356
O'Reilly
Automotive
Inc
3.85%,
06/15/2023
300
314
4.35%,
06/01/2028
300
335
QVC
Inc
4.38%,
03/15/2023
250
258
Starbucks
Corp
3.55%,
08/15/2029
500
542
3.85%,
10/01/2023
530
562
4.45%,
08/15/2049
300
348
Target
Corp
2.50%,
04/15/2026
500
513
2.90%,
01/15/2022
25
26
3.50%,
07/01/2024
30
32
3.63%,
04/15/2046
35
38
TJX
Cos
Inc/The
2.50%,
05/15/2023
500
510
Walgreens
Boots
Alliance
Inc
3.45%,
06/01/2026
420
427
3.80%,
11/18/2024
300
313
4.80%,
11/18/2044
355
360
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
120
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Retail
(continued)
Walmart
Inc
2.35%,
12/15/2022
$
500
$
509
2.85%,
07/08/2024
575
597
2.95%,
09/24/2049
245
244
3.05%,
07/08/2026
500
527
3.25%,
07/08/2029
490
526
3.40%,
06/26/2023
530
557
3.70%,
06/26/2028
390
430
3.95%,
06/28/2038
185
214
5.63%,
04/01/2040
38
53
5.63%,
04/15/2041
280
394
7.55%,
02/15/2030
628
911
$
17,237
Semiconductors
-
0.45%
Analog
Devices
Inc
2.50%,
12/05/2021
750
756
2.95%,
01/12/2021
300
303
Applied
Materials
Inc
3.30%,
04/01/2027
35
37
3.90%,
10/01/2025
500
545
4.35%,
04/01/2047
40
48
5.10%,
10/01/2035
250
316
Broadcom
Corp
/
Broadcom
Cayman
Finance
Ltd
3.00%,
01/15/2022
550
558
3.88%,
01/15/2027
660
686
Broadcom
Inc
3.63%,
10/15/2024
(d)
350
364
4.25%,
04/15/2026
(d)
500
531
4.75%,
04/15/2029
(d)
730
798
Intel
Corp
2.45%,
11/15/2029
310
309
2.60%,
05/19/2026
530
543
2.70%,
12/15/2022
25
26
3.15%,
05/11/2027
540
572
3.25%,
11/15/2049
155
156
3.30%,
10/01/2021
207
213
3.73%,
12/08/2047
240
264
4.00%,
12/15/2032
200
233
4.25%,
12/15/2042
200
235
4.80%,
10/01/2041
77
96
4.90%,
07/29/2045
25
32
KLA
Corp
4.65%,
11/01/2024
500
549
Marvell
Technology
Group
Ltd
4.88%,
06/22/2028
300
331
Micron
Technology
Inc
4.19%,
02/15/2027
115
123
4.66%,
02/15/2030
115
127
NVIDIA
Corp
2.20%,
09/16/2021
500
503
QUALCOMM
Inc
2.60%,
01/30/2023
360
366
2.90%,
05/20/2024
20
21
3.00%,
05/20/2022
30
31
3.25%,
05/20/2027
320
337
3.45%,
05/20/2025
300
317
4.65%,
05/20/2035
115
137
4.80%,
05/20/2045
175
214
Texas
Instruments
Inc
2.75%,
03/12/2021
400
404
4.15%,
05/15/2048
205
244
$
11,325
Software
-
0.68%
CA
Inc
3.60%,
08/15/2022
300
307
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Software
(continued)
Fidelity
National
Information
Services
Inc
3.00%,
08/15/2026
$
40
$
41
3.50%,
04/15/2023
30
31
3.75%,
05/21/2029
400
439
Fiserv
Inc
3.50%,
10/01/2022
600
622
3.50%,
07/01/2029
310
326
3.80%,
10/01/2023
400
423
3.85%,
06/01/2025
300
320
Microsoft
Corp
1.55%,
08/08/2021
670
669
2.38%,
02/12/2022
380
385
2.40%,
02/06/2022
690
700
2.40%,
08/08/2026
55
56
2.65%,
11/03/2022
55
56
2.70%,
02/12/2025
30
31
3.13%,
11/03/2025
700
740
3.30%,
02/06/2027
200
214
3.45%,
08/08/2036
750
822
3.50%,
02/12/2035
800
881
3.63%,
12/15/2023
30
32
3.70%,
08/08/2046
950
1,074
4.00%,
02/12/2055
850
1,008
4.10%,
02/06/2037
180
213
4.20%,
11/03/2035
430
512
4.50%,
02/06/2057
325
422
5.30%,
02/08/2041
77
105
Oracle
Corp
2.40%,
09/15/2023
30
31
2.50%,
05/15/2022
30
30
2.50%,
10/15/2022
1,070
1,090
2.63%,
02/15/2023
390
398
2.65%,
07/15/2026
700
716
2.80%,
07/08/2021
80
81
3.80%,
11/15/2037
250
273
3.90%,
05/15/2035
1,200
1,338
4.00%,
07/15/2046
780
868
4.30%,
07/08/2034
1,015
1,188
4.38%,
05/15/2055
610
724
$
17,166
Sovereign
-
1.60%
Chile
Government
International
Bond
3.13%,
03/27/2025
250
261
3.25%,
09/14/2021
180
183
Colombia
Government
International
Bond
2.63%,
03/15/2023
500
501
4.00%,
02/26/2024
1,500
1,581
4.38%,
07/12/2021
100
103
4.50%,
01/28/2026
1,700
1,851
6.13%,
01/18/2041
200
259
8.13%,
05/21/2024
201
247
10.38%,
01/28/2033
100
161
Export
Development
Canada
2.00%,
05/17/2022
1,500
1,511
Export-Import
Bank
of
Korea
3.00%,
11/01/2022
500
514
3.25%,
11/10/2025
500
527
3.25%,
08/12/2026
500
524
5.00%,
04/11/2022
200
213
Hungary
Government
International
Bond
7.63%,
03/29/2041
250
411
Indonesia
Government
International
Bond
3.50%,
01/11/2028
200
209
3.70%,
10/30/2049
(e)
200
205
4.35%,
01/11/2048
500
551
4.75%,
02/11/2029
200
229
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
121
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Sovereign
(continued)
Israel
Government
AID
Bond
5.50%,
09/18/2023
$
25
$
28
5.50%,
04/26/2024
125
144
5.50%,
09/18/2033
12
16
Israel
Government
International
Bond
3.25%,
01/17/2028
300
322
4.00%,
06/30/2022
500
524
4.13%,
01/17/2048
300
347
Japan
Bank
for
International
Cooperation
1.63%,
10/17/2022
900
894
2.00%,
10/17/2029
200
195
2.38%,
04/20/2026
300
304
2.50%,
06/01/2022
500
507
3.00%,
05/29/2024
1,000
1,038
3.38%,
07/31/2023
1,000
1,050
Korea
International
Bond
3.88%,
09/11/2023
250
266
Mexico
Government
International
Bond
3.60%,
01/30/2025
210
220
3.63%,
03/15/2022
300
309
3.75%,
01/11/2028
500
519
4.50%,
04/22/2029
1,000
1,096
4.60%,
01/23/2046
670
727
4.60%,
02/10/2048
700
767
4.75%,
03/08/2044
506
559
5.55%,
01/21/2045
300
369
6.05%,
01/11/2040
464
603
Panama
Government
International
Bond
3.75%,
03/16/2025
800
850
3.88%,
03/17/2028
500
545
4.50%,
04/16/2050
900
1,065
6.70%,
01/26/2036
224
314
Peruvian
Government
International
Bond
5.63%,
11/18/2050
528
772
6.55%,
03/14/2037
126
184
7.35%,
07/21/2025
180
227
8.75%,
11/21/2033
192
316
Philippine
Government
International
Bond
3.00%,
02/01/2028
300
312
3.70%,
02/02/2042
230
260
3.95%,
01/20/2040
300
343
5.00%,
01/13/2037
300
383
6.38%,
10/23/2034
210
298
9.50%,
02/02/2030
400
638
10.63%,
03/16/2025
400
565
Republic
of
Italy
Government
International
Bond
2.38%,
10/17/2024
200
196
2.88%,
10/17/2029
200
190
5.38%,
06/15/2033
1,020
1,188
6.88%,
09/27/2023
712
816
Republic
of
Poland
Government
International
Bond
4.00%,
01/22/2024
1,000
1,076
5.00%,
03/23/2022
528
564
5.13%,
04/21/2021
51
53
Svensk
Exportkredit
AB
2.38%,
03/09/2022
500
507
2.88%,
05/22/2021
1,800
1,827
Tennessee
Valley
Authority
2.88%,
02/01/2027
250
262
3.50%,
12/15/2042
400
449
3.88%,
02/15/2021
500
511
4.25%,
09/15/2065
200
260
4.63%,
09/15/2060
300
412
5.25%,
09/15/2039
251
346
5.38%,
04/01/2056
154
234
6.75%,
11/01/2025
102
129
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Sovereign
(continued)
Uruguay
Government
International
Bond
4.13%,
11/20/2045
$
100
$
107
4.38%,
10/27/2027
1,240
1,371
4.98%,
04/20/2055
210
247
5.10%,
06/18/2050
725
870
8.00%,
11/18/2022
1,015
1,135
$
40,667
Supranational
Bank
-
1.32%
African
Development
Bank
2.38%,
09/23/2021
400
405
Asian
Development
Bank
1.75%,
06/08/2021
500
500
1.75%,
08/14/2026
500
494
1.88%,
02/18/2022
1,250
1,255
2.13%,
11/24/2021
(e)
750
756
2.13%,
03/19/2025
300
305
2.63%,
01/30/2024
1,000
1,035
2.75%,
03/17/2023
400
413
2.75%,
01/19/2028
300
318
5.82%,
06/16/2028
15
19
6.38%,
10/01/2028
51
68
Asian
Infrastructure
Investment
Bank/The
2.25%,
05/16/2024
500
510
Corp
Andina
de
Fomento
3.25%,
02/11/2022
900
915
4.38%,
06/15/2022
22
23
European
Bank
for
Reconstruction
&
Development
1.63%,
09/27/2024
650
645
1.88%,
02/23/2022
250
251
European
Investment
Bank
2.00%,
03/15/2021
1,775
1,782
2.25%,
03/15/2022
400
405
2.25%,
08/15/2022
(e)
750
761
2.25%,
06/24/2024
(e)
500
510
2.38%,
05/24/2027
300
310
2.50%,
04/15/2021
1,500
1,515
2.50%,
03/15/2023
600
615
2.63%,
05/20/2022
900
920
2.63%,
03/15/2024
1,000
1,036
3.25%,
01/29/2024
1,000
1,060
4.88%,
02/15/2036
25
34
FMS
Wertmanagement
2.75%,
01/30/2024
500
519
Inter-American
Development
Bank
1.75%,
04/14/2022
1,000
1,002
1.88%,
03/15/2021
500
501
2.13%,
01/18/2022
340
343
2.38%,
07/07/2027
500
516
2.50%,
01/18/2023
1,450
1,485
3.00%,
02/21/2024
250
262
3.13%,
09/18/2028
500
546
4.38%,
01/24/2044
50
66
International
Bank
for
Reconstruction
&
Development
1.38%,
05/24/2021
345
344
1.38%,
09/20/2021
500
498
1.63%,
02/10/2022
1,000
999
1.75%,
10/23/2029
230
225
2.25%,
06/24/2021
500
504
2.50%,
11/25/2024
500
517
2.50%,
07/29/2025
1,700
1,763
2.50%,
11/22/2027
1,500
1,564
7.63%,
01/19/2023
1,512
1,775
International
Finance
Corp
1.13%,
07/20/2021
1,500
1,487
2.25%,
01/25/2021
500
503
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
122
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Supranational
Bank
(continued)
Nordic
Investment
Bank
1.38%,
10/17/2022
$
200
$
198
2.25%,
02/01/2021
500
503
2.25%,
05/21/2024
500
510
$
33,490
Telecommunications
-
1.26%
America
Movil
SAB
de
CV
3.13%,
07/16/2022
600
614
6.13%,
03/30/2040
102
137
6.38%,
03/01/2035
200
267
AT&T
Inc
2.63%,
12/01/2022
630
640
2.95%,
07/15/2026
20
20
3.00%,
06/30/2022
200
204
3.40%,
05/15/2025
200
210
3.60%,
07/15/2025
500
529
3.80%,
02/15/2027
40
43
4.00%,
01/15/2022
180
187
4.05%,
12/15/2023
500
536
4.10%,
02/15/2028
81
88
4.13%,
02/17/2026
30
33
4.25%,
03/01/2027
530
582
4.30%,
02/15/2030
1,101
1,223
4.30%,
12/15/2042
221
237
4.35%,
03/01/2029
500
556
4.35%,
06/15/2045
1,005
1,085
4.50%,
05/15/2035
1,225
1,365
4.50%,
03/09/2048
572
632
4.55%,
03/09/2049
247
274
4.60%,
02/15/2021
171
175
4.65%,
06/01/2044
500
547
4.75%,
05/15/2046
230
260
4.85%,
07/15/2045
60
69
5.15%,
03/15/2042
30
35
5.15%,
11/15/2046
420
503
5.35%,
09/01/2040
30
36
5.38%,
10/15/2041
128
152
5.45%,
03/01/2047
30
37
5.65%,
02/15/2047
15
19
5.70%,
03/01/2057
530
684
6.00%,
08/15/2040
663
849
British
Telecommunications
PLC
9.62%,
12/15/2030
577
887
Cisco
Systems
Inc
1.85%,
09/20/2021
350
350
2.20%,
09/20/2023
30
30
2.50%,
09/20/2026
30
31
2.95%,
02/28/2026
1,500
1,565
3.63%,
03/04/2024
30
32
Corning
Inc
4.38%,
11/15/2057
300
308
4.75%,
03/15/2042
102
116
Deutsche
Telekom
International
Finance
BV
8.75%,
06/15/2030
641
944
Motorola
Solutions
Inc
4.00%,
09/01/2024
500
531
Orange
SA
4.13%,
09/14/2021
128
133
5.38%,
01/13/2042
102
131
Rogers
Communications
Inc
3.00%,
03/15/2023
400
410
3.70%,
11/15/2049
225
227
5.00%,
03/15/2044
500
606
Telefonica
Emisiones
SA
5.21%,
03/08/2047
530
629
7.05%,
06/20/2036
795
1,113
TELUS
Corp
4.60%,
11/16/2048
300
355
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
Verizon
Communications
Inc
2.63%,
08/15/2026
$
25
$
25
2.95%,
03/15/2022
746
763
3.13%,
03/16/2022
260
267
3.38%,
02/15/2025
40
42
3.85%,
11/01/2042
275
297
3.88%,
02/08/2029
400
441
4.02%,
12/03/2029
1,274
1,420
4.13%,
03/16/2027
500
555
4.33%,
09/21/2028
500
568
4.40%,
11/01/2034
750
870
4.50%,
08/10/2033
360
420
4.81%,
03/15/2039
25
30
4.86%,
08/21/2046
940
1,167
5.01%,
04/15/2049
540
692
5.15%,
09/15/2023
615
684
Vodafone
Group
PLC
4.25%,
09/17/2050
165
172
4.38%,
05/30/2028
560
621
5.00%,
05/30/2038
250
290
5.25%,
05/30/2048
400
481
6.15%,
02/27/2037
201
260
6.25%,
11/30/2032
500
640
$
31,931
Toys,
Games
&
Hobbies
-
0.01%
Hasbro
Inc
3.15%,
05/15/2021
250
253
6.35%,
03/15/2040
25
29
$
282
Transportation
-
0.59%
Burlington
Northern
Santa
Fe
LLC
3.00%,
04/01/2025
500
521
3.55%,
02/15/2050
115
121
4.15%,
04/01/2045
500
568
4.45%,
03/15/2043
20
24
4.55%,
09/01/2044
15
18
5.15%,
09/01/2043
350
447
6.20%,
08/15/2036
500
689
Canadian
National
Railway
Co
3.20%,
08/02/2046
400
408
3.65%,
02/03/2048
75
83
Canadian
Pacific
Railway
Co
4.00%,
06/01/2028
300
330
4.80%,
09/15/2035
500
596
CSX
Corp
2.40%,
02/15/2030
65
64
2.60%,
11/01/2026
300
305
3.25%,
06/01/2027
40
42
3.35%,
11/01/2025
500
530
3.35%,
09/15/2049
70
69
3.70%,
11/01/2023
500
531
3.80%,
03/01/2028
100
109
3.80%,
11/01/2046
30
31
4.25%,
11/01/2066
400
428
4.30%,
03/01/2048
105
119
4.75%,
05/30/2042
277
327
FedEx
Corp
3.10%,
08/05/2029
550
550
3.88%,
08/01/2042
100
96
4.40%,
01/15/2047
55
55
4.55%,
04/01/2046
400
411
4.75%,
11/15/2045
525
553
Kansas
City
Southern
4.70%,
05/01/2048
300
352
Norfolk
Southern
Corp
2.55%,
11/01/2029
155
155
3.25%,
12/01/2021
251
256
3.85%,
01/15/2024
200
212
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
123
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Transportation
(continued)
Norfolk
Southern
Corp
(continued)
3.94%,
11/01/2047
$
398
$
429
4.84%,
10/01/2041
100
119
Ryder
System
Inc
2.50%,
09/01/2024
80
80
2.90%,
12/01/2026
150
151
Union
Pacific
Corp
3.15%,
03/01/2024
400
416
3.55%,
08/15/2039
80
83
3.70%,
03/01/2029
900
984
3.80%,
10/01/2051
577
613
3.84%,
03/20/2060
(d)
225
228
3.95%,
09/10/2028
210
232
4.15%,
01/15/2045
350
384
4.16%,
07/15/2022
256
269
United
Parcel
Service
Inc
2.20%,
09/01/2024
200
201
2.45%,
10/01/2022
10
10
2.50%,
09/01/2029
125
125
3.13%,
01/15/2021
1,128
1,141
3.40%,
09/01/2049
470
476
4.88%,
11/15/2040
25
30
6.20%,
01/15/2038
23
32
$
15,003
Water
-
0.01%
American
Water
Capital
Corp
3.75%,
09/01/2047
180
191
6.59%,
10/15/2037
5
7
$
198
TOTAL
BONDS
$
810,926
MUNICIPAL
BONDS
-
0.74%
Principal
Amount
(000's)
Value
(000's)
California
-
0.28%
Bay
Area
Toll
Authority
6.26%,
04/01/2049
$
300
$
458
6.92%,
04/01/2040
120
176
East
Bay
Municipal
Utility
District
Water
System
Revenue
5.87%,
06/01/2040
60
82
Los
Angeles
Department
of
Water
&
Power
Power
System
Revenue
6.57%,
07/01/2045
150
234
Los
Angeles
Unified
School
District/CA
5.75%,
07/01/2034
80
102
5.76%,
07/01/2029
50
61
6.76%,
07/01/2034
530
731
Regents
of
the
University
of
California
Medical
Center
Pooled
Revenue
6.55%,
05/15/2048
250
361
San
Diego
County
Water
Authority
6.14%,
05/01/2049
260
369
Santa
Clara
Valley
Transportation
Authority
5.88%,
04/01/2032
25
31
State
of
California
3.50%,
04/01/2028
165
178
7.30%,
10/01/2039
375
573
7.35%,
11/01/2039
500
768
7.60%,
11/01/2040
180
297
7.63%,
03/01/2040
280
448
7.95%,
03/01/2036
1,900
1,918
University
of
California
5.77%,
05/15/2043
200
265
$
7,052
District
of
Columbia
-
0.02%
District
of
Columbia
Water
&
Sewer
Authority
4.81%,
10/01/2114
450
591
MUNICIPAL
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Georgia
-
0.02%
Municipal
Electric
Authority
of
Georgia
6.64%,
04/01/2057
$
150
$
202
7.06%,
04/01/2057
199
269
$
471
Illinois
-
0.08%
Chicago
Transit
Authority
6.20%,
12/01/2040
70
92
6.90%,
12/01/2040
200
270
City
of
Chicago
IL
6.31%,
01/01/2044
250
284
County
of
Cook
IL
6.23%,
11/15/2034
102
134
State
of
Illinois
4.95%,
06/01/2023
26
27
5.10%,
06/01/2033
1,000
1,078
7.35%,
07/01/2035
70
85
$
1,970
Kansas
-
0.01%
State
of
Kansas
Department
of
Transportation
4.60%,
09/01/2035
115
136
Massachusetts
-
0.01%
Commonwealth
of
Massachusetts
4.20%,
12/01/2021
270
278
Nevada
-
0.00%
County
of
Clark
Department
of
Aviation
6.82%,
07/01/2045
25
39
New
Jersey
-
0.07%
New
Jersey
Economic
Development
Authority
(credit
support
from
Assured
Guaranty
Municipal
Corp
)
0.00%,
02/15/2023
(g),(i)
51
47
New
Jersey
Economic
Development
Authority
(credit
support
from
National
Public
Finance
Guarantee
Corp
)
7.43%,
02/15/2029
(i)
700
878
New
Jersey
Transportation
Trust
Fund
Authority
5.75%,
12/15/2028
190
218
6.56%,
12/15/2040
210
277
New
Jersey
Turnpike
Authority
7.10%,
01/01/2041
147
224
Rutgers
The
State
University
of
New
Jersey
5.67%,
05/01/2040
130
170
$
1,814
New
York
-
0.10%
City
of
New
York
NY
5.52%,
10/01/2037
25
32
Metropolitan
Transportation
Authority
6.81%,
11/15/2040
135
192
New
York
City
Transitional
Finance
Authority
Future
Tax
Secured
Revenue
5.51%,
08/01/2037
250
317
New
York
City
Water
&
Sewer
System
5.72%,
06/15/2042
270
381
5.95%,
06/15/2042
125
180
New
York
State
Dormitory
Authority
5.60%,
03/15/2040
435
551
Port
Authority
of
New
York
&
New
Jersey
4.46%,
10/01/2062
400
490
4.96%,
08/01/2046
300
388
6.04%,
12/01/2029
50
64
$
2,595
Ohio
-
0.01%
American
Municipal
Power
Inc
6.27%,
02/15/2050
69
92
Ohio
State
University/The
4.91%,
06/01/2040
125
160
$
252
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
124
MUNICIPAL
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pennsylvania
-
0.02%
State
Public
School
Building
Authority
5.00%,
09/15/2027
$
500
$
577
Texas
-
0.09%
City
of
San
Antonio
TX
Electric
&
Gas
Systems
Revenue
5.81%,
02/01/2041
135
186
Dallas
Area
Rapid
Transit
5.02%,
12/01/2048
50
66
Dallas
Convention
Center
Hotel
Development
Corp
7.09%,
01/01/2042
70
97
Dallas
County
Hospital
District
5.62%,
08/15/2044
83
109
Dallas
Independent
School
District
(credit
support
from
Permanent
School
Fund
Guarantee
Program
)
6.45%,
02/15/2035
(i)
50
53
Grand
Parkway
Transportation
Corp
5.18%,
10/01/2042
300
384
State
of
Texas
4.68%,
04/01/2040
100
123
5.52%,
04/01/2039
405
547
Texas
Transportation
Commission
State
Highway
Fund
5.18%,
04/01/2030
625
752
$
2,317
Utah
-
0.01%
State
of
Utah
3.54%,
07/01/2025
300
315
Wisconsin
-
0.02%
State
of
Wisconsin
(credit
support
from
Assured
Guaranty
Municipal
Corp
)
5.70%,
05/01/2026
(i)
370
415
TOTAL
MUNICIPAL
BONDS
$
18,822
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
65.55%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
4.71%
2.00%,
08/01/2029
$
460
$
458
2.00%,
10/01/2031
103
102
2.00%,
03/01/2032
192
191
2.50%,
10/01/2027
162
164
2.50%,
03/01/2028
322
327
2.50%,
06/01/2028
172
174
2.50%,
06/01/2028
432
438
2.50%,
07/01/2028
293
297
2.50%,
10/01/2028
174
176
2.50%,
10/01/2028
147
149
2.50%,
10/01/2029
395
400
2.50%,
12/01/2029
475
482
2.50%,
09/01/2030
790
801
2.50%,
01/01/2031
839
851
2.50%,
01/01/2031
113
114
2.50%,
02/01/2031
93
94
2.50%,
03/01/2031
269
273
2.50%,
12/01/2031
295
299
2.50%,
12/01/2031
268
272
2.50%,
02/01/2032
333
337
2.50%,
03/01/2032
437
442
2.50%,
11/01/2032
851
861
2.50%,
02/01/2033
260
263
2.50%,
03/01/2033
785
795
2.50%,
03/01/2033
146
148
2.50%,
04/01/2033
332
336
2.50%,
05/01/2033
163
165
2.50%,
06/01/2033
258
261
2.50%,
11/01/2036
184
185
2.50%,
02/01/2043
176
175
2.50%,
03/01/2043
136
135
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
3.00%,
01/01/2027
$
136
$
140
3.00%,
03/01/2027
108
110
3.00%,
05/01/2027
99
101
3.00%,
10/01/2028
332
342
3.00%,
07/01/2029
409
422
3.00%,
08/01/2029
178
183
3.00%,
10/01/2029
106
110
3.00%,
11/01/2029
180
185
3.00%,
07/01/2030
408
420
3.00%,
09/01/2030
543
559
3.00%,
11/01/2030
155
159
3.00%,
11/01/2030
87
89
3.00%,
01/01/2031
198
203
3.00%,
04/01/2031
245
253
3.00%,
02/01/2032
79
82
3.00%,
05/01/2032
129
133
3.00%,
12/01/2032
679
698
3.00%,
12/01/2032
735
755
3.00%,
01/01/2033
1,066
1,096
3.00%,
02/01/2033
619
636
3.00%,
03/01/2033
381
394
3.00%,
04/01/2033
207
214
3.00%,
04/01/2033
221
228
3.00%,
06/01/2033
136
140
3.00%,
09/01/2033
195
202
3.00%,
09/01/2033
187
192
3.00%,
12/01/2034
67
69
3.00%,
01/01/2035
44
46
3.00%,
02/01/2035
63
65
3.00%,
05/01/2035
557
571
3.00%,
02/01/2036
123
127
3.00%,
09/01/2036
98
100
3.00%,
02/01/2037
141
145
3.00%,
05/01/2037
212
218
3.00%,
06/01/2037
234
241
3.00%,
07/01/2037
376
386
3.00%,
09/01/2037
76
78
3.00%,
01/01/2043
340
350
3.00%,
01/01/2043
211
217
3.00%,
02/01/2043
1,286
1,326
3.00%,
03/01/2043
839
865
3.00%,
04/01/2043
300
309
3.00%,
05/01/2043
307
316
3.00%,
06/01/2043
587
604
3.00%,
07/01/2043
518
534
3.00%,
07/01/2043
449
462
3.00%,
07/01/2043
944
973
3.00%,
07/01/2043
910
937
3.00%,
08/01/2043
176
181
3.00%,
08/01/2043
107
110
3.00%,
08/01/2043
1,577
1,624
3.00%,
08/01/2043
261
268
3.00%,
09/01/2043
563
579
3.00%,
09/01/2043
255
263
3.00%,
09/01/2043
388
400
3.00%,
10/01/2043
145
150
3.00%,
10/01/2043
481
495
3.00%,
03/01/2045
738
757
3.00%,
04/01/2045
241
248
3.00%,
06/01/2045
843
864
3.00%,
07/01/2045
500
513
3.00%,
07/01/2045
479
491
3.00%,
08/01/2045
927
950
3.00%,
08/01/2045
324
332
3.00%,
08/01/2045
251
257
3.00%,
12/01/2045
1,398
1,433
3.00%,
03/01/2046
209
214
3.00%,
03/01/2046
650
666
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
125
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
3.00%,
04/01/2046
$
114
$
117
3.00%,
04/01/2046
926
949
3.00%,
05/01/2046
212
218
3.00%,
09/01/2046
1,008
1,034
3.00%,
10/01/2046
786
806
3.00%,
11/01/2046
1,519
1,557
3.00%,
11/01/2046
153
157
3.00%,
11/01/2046
1,108
1,136
3.00%,
11/01/2046
903
926
3.00%,
12/01/2046
1,091
1,118
3.00%,
12/01/2046
1,318
1,351
3.00%,
01/01/2047
1,747
1,791
3.00%,
03/01/2047
1,617
1,655
3.00%,
03/01/2048
887
906
3.50%,
10/01/2025
119
123
3.50%,
11/01/2025
157
163
3.50%,
12/01/2026
157
163
3.50%,
01/01/2029
128
133
3.50%,
01/01/2032
107
112
3.50%,
02/01/2032
67
70
3.50%,
03/01/2032
82
86
3.50%,
04/01/2032
78
81
3.50%,
08/01/2032
65
68
3.50%,
09/01/2033
434
451
3.50%,
01/01/2034
71
74
3.50%,
01/01/2035
152
159
3.50%,
02/01/2035
135
141
3.50%,
07/01/2035
174
182
3.50%,
09/01/2035
346
362
3.50%,
04/01/2037
104
108
3.50%,
06/01/2037
246
256
3.50%,
05/01/2041
364
383
3.50%,
02/01/2042
435
458
3.50%,
04/01/2042
112
118
3.50%,
06/01/2042
263
277
3.50%,
07/01/2042
438
462
3.50%,
07/01/2042
357
377
3.50%,
08/01/2042
192
202
3.50%,
08/01/2042
431
454
3.50%,
02/01/2044
541
566
3.50%,
06/01/2044
716
751
3.50%,
09/01/2044
386
404
3.50%,
02/01/2045
422
443
3.50%,
03/01/2045
606
633
3.50%,
06/01/2045
675
706
3.50%,
07/01/2045
1,153
1,205
3.50%,
09/01/2045
653
682
3.50%,
10/01/2045
736
769
3.50%,
11/01/2045
1,175
1,228
3.50%,
12/01/2045
940
982
3.50%,
12/01/2045
688
719
3.50%,
12/01/2045
118
123
3.50%,
01/01/2046
128
134
3.50%,
01/01/2046
333
348
3.50%,
03/01/2046
3,148
3,289
3.50%,
03/01/2046
612
640
3.50%,
04/01/2046
761
794
3.50%,
05/01/2046
828
864
3.50%,
06/01/2046
919
960
3.50%,
08/01/2046
639
668
3.50%,
04/01/2047
1,153
1,198
3.50%,
08/01/2047
1,140
1,184
3.50%,
11/01/2047
1,122
1,168
3.50%,
11/01/2047
855
888
3.50%,
12/01/2047
925
963
3.50%,
01/01/2048
469
487
3.50%,
05/01/2048
168
174
3.50%,
06/01/2048
794
822
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
3.50%,
06/01/2048
$
481
$
499
3.50%,
06/01/2048
450
466
3.50%,
09/01/2048
454
468
3.50%,
09/01/2048
331
347
3.50%,
11/01/2048
439
451
4.00%,
06/01/2025
103
107
4.00%,
07/01/2025
143
150
4.00%,
12/01/2030
34
36
4.00%,
08/01/2031
37
39
4.00%,
10/01/2031
49
52
4.00%,
11/01/2031
15
16
4.00%,
12/01/2031
26
27
4.00%,
11/01/2033
71
76
4.00%,
01/01/2034
115
123
4.00%,
07/01/2035
50
53
4.00%,
03/01/2037
215
228
4.00%,
05/01/2038
113
120
4.00%,
02/01/2041
231
247
4.00%,
06/01/2042
148
158
4.00%,
06/01/2042
105
112
4.00%,
08/01/2043
710
756
4.00%,
01/01/2044
164
174
4.00%,
02/01/2044
366
391
4.00%,
03/01/2044
110
117
4.00%,
04/01/2044
470
499
4.00%,
05/01/2044
123
130
4.00%,
07/01/2044
382
405
4.00%,
07/01/2044
314
333
4.00%,
10/01/2044
329
348
4.00%,
11/01/2044
622
660
4.00%,
12/01/2044
711
754
4.00%,
01/01/2045
198
210
4.00%,
02/01/2045
275
290
4.00%,
04/01/2045
246
261
4.00%,
05/01/2045
127
135
4.00%,
06/01/2045
273
289
4.00%,
07/01/2045
346
367
4.00%,
08/01/2045
979
1,038
4.00%,
08/01/2045
106
113
4.00%,
08/01/2045
114
120
4.00%,
09/01/2045
320
337
4.00%,
09/01/2045
1,166
1,236
4.00%,
10/01/2045
1,224
1,298
4.00%,
11/01/2045
716
759
4.00%,
12/01/2045
314
333
4.00%,
03/01/2047
1,063
1,118
4.00%,
08/01/2047
1,197
1,259
4.00%,
10/01/2047
819
862
4.00%,
12/01/2047
1,347
1,416
4.00%,
07/01/2048
1,183
1,235
4.00%,
08/01/2048
687
716
4.00%,
09/01/2048
795
830
4.00%,
11/01/2048
693
721
4.50%,
08/01/2023
56
59
4.50%,
05/01/2024
56
59
4.50%,
02/01/2030
11
12
4.50%,
08/01/2030
8
9
4.50%,
05/01/2031
11
12
4.50%,
06/01/2031
75
81
4.50%,
06/01/2039
122
133
4.50%,
10/01/2039
88
95
4.50%,
10/01/2040
138
150
4.50%,
03/01/2041
281
304
4.50%,
03/01/2041
340
369
4.50%,
09/01/2041
107
113
4.50%,
11/01/2041
231
251
4.50%,
09/01/2043
193
210
4.50%,
11/01/2043
105
113
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
126
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
4.50%,
11/01/2043
$
131
$
142
4.50%,
01/01/2044
108
117
4.50%,
01/01/2044
143
154
4.50%,
03/01/2044
157
169
4.50%,
05/01/2044
256
275
4.50%,
07/01/2044
101
109
4.50%,
09/01/2044
98
105
4.50%,
10/01/2045
129
139
4.50%,
02/01/2046
594
637
4.50%,
03/01/2047
549
582
4.50%,
03/01/2047
111
117
4.50%,
04/01/2047
146
154
4.50%,
06/01/2047
323
343
4.50%,
09/01/2047
306
324
4.50%,
11/01/2047
75
80
4.50%,
05/01/2048
355
374
4.50%,
07/01/2048
660
695
4.50%,
09/01/2048
368
388
4.50%,
11/01/2048
686
723
4.50%,
11/01/2048
367
387
4.50%,
01/01/2049
1,186
1,250
4.50%,
05/01/2049
2,433
2,570
5.00%,
09/01/2023
47
50
5.00%,
04/01/2024
21
23
5.00%,
01/01/2025
75
80
5.00%,
12/01/2027
28
30
5.00%,
02/01/2030
5
5
5.00%,
03/01/2030
3
4
5.00%,
04/01/2034
94
103
5.00%,
06/01/2035
117
129
5.00%,
01/01/2038
212
233
5.00%,
11/01/2038
172
189
5.00%,
12/01/2038
179
197
5.00%,
09/01/2039
283
312
5.00%,
01/01/2040
191
211
5.00%,
05/01/2040
137
151
5.00%,
04/01/2041
124
136
5.00%,
06/01/2041
99
106
5.00%,
11/01/2041
295
316
5.00%,
11/01/2041
105
116
5.50%,
01/01/2028
69
74
5.50%,
04/01/2036
161
181
5.50%,
12/01/2036
109
123
5.50%,
12/01/2036
113
127
5.50%,
03/01/2039
165
185
5.50%,
04/01/2039
100
112
5.50%,
02/01/2040
154
173
5.50%,
06/01/2041
231
260
6.00%,
02/01/2027
8
9
$
119,645
Federal
National
Mortgage
Association
(FNMA)
-
0.16%
3.50%,
01/01/2035
(j)
4,000
4,146
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
13.37%
2.00%,
09/01/2028
129
128
2.00%,
05/01/2030
258
256
2.00%,
04/01/2032
117
116
2.50%,
01/01/2028
152
154
2.50%,
07/01/2028
188
191
2.50%,
08/01/2028
102
103
2.50%,
08/01/2028
191
194
2.50%,
09/01/2028
204
207
2.50%,
07/01/2029
104
105
2.50%,
07/01/2029
152
153
2.50%,
07/01/2029
234
236
2.50%,
09/01/2029
246
249
2.50%,
12/01/2029
129
130
2.50%,
01/01/2030
196
199
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
2.50%,
04/01/2030
$
237
$
240
2.50%,
05/01/2030
520
527
2.50%,
06/01/2030
294
298
2.50%,
08/01/2030
623
631
2.50%,
08/01/2030
128
129
2.50%,
01/01/2031
220
223
2.50%,
01/01/2031
214
217
2.50%,
02/01/2031
249
252
2.50%,
02/01/2031
289
293
2.50%,
05/01/2031
160
162
2.50%,
06/01/2031
263
267
2.50%,
11/01/2031
2,505
2,534
2.50%,
12/01/2031
410
415
2.50%,
01/01/2032
487
493
2.50%,
01/01/2032
893
904
2.50%,
02/01/2032
455
459
2.50%,
03/01/2032
163
165
2.50%,
03/01/2032
225
228
2.50%,
11/01/2032
43
43
2.50%,
12/01/2032
120
122
2.50%,
01/01/2033
188
191
2.50%,
02/01/2033
720
728
2.50%,
04/01/2033
1,348
1,364
2.50%,
07/01/2033
95
95
2.50%,
10/01/2034
1,605
1,619
2.50%,
10/01/2036
143
144
2.50%,
10/01/2036
56
56
2.50%,
12/01/2036
230
231
2.50%,
01/01/2043
521
518
2.50%,
08/01/2043
121
121
2.50%,
10/01/2043
319
317
2.50%,
12/01/2046
142
141
2.50%,
01/01/2050
(j)
6,000
5,933
3.00%,
11/01/2026
118
121
3.00%,
02/01/2027
213
218
3.00%,
04/01/2027
1,018
1,049
3.00%,
08/01/2027
160
164
3.00%,
10/01/2028
350
360
3.00%,
11/01/2028
179
185
3.00%,
02/01/2029
138
142
3.00%,
03/01/2029
228
234
3.00%,
03/01/2029
140
144
3.00%,
04/01/2029
185
191
3.00%,
05/01/2029
158
162
3.00%,
06/01/2029
114
117
3.00%,
08/01/2029
144
148
3.00%,
10/01/2029
103
106
3.00%,
10/01/2029
101
104
3.00%,
10/01/2029
131
135
3.00%,
11/01/2029
100
103
3.00%,
01/01/2030
522
537
3.00%,
01/01/2030
214
221
3.00%,
01/01/2030
478
492
3.00%,
03/01/2030
298
307
3.00%,
06/01/2030
301
310
3.00%,
06/01/2030
278
287
3.00%,
09/01/2030
517
533
3.00%,
09/01/2030
106
109
3.00%,
10/01/2030
299
307
3.00%,
02/01/2031
133
137
3.00%,
04/01/2032
1,213
1,252
3.00%,
05/01/2032
168
173
3.00%,
08/01/2032
272
280
3.00%,
01/01/2033
58
59
3.00%,
02/01/2033
1,255
1,290
3.00%,
08/01/2033
703
725
3.00%,
05/01/2034
416
427
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
127
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.00%,
05/01/2034
$
151
$
155
3.00%,
08/01/2034
537
554
3.00%,
10/01/2034
71
74
3.00%,
11/01/2034
195
201
3.00%,
12/01/2034
3,476
3,571
3.00%,
01/01/2035
(j)
1,950
1,999
3.00%,
02/01/2035
184
190
3.00%,
02/01/2035
212
217
3.00%,
03/01/2035
93
95
3.00%,
04/01/2035
97
99
3.00%,
06/01/2035
219
225
3.00%,
07/01/2035
82
85
3.00%,
11/01/2035
125
128
3.00%,
07/01/2036
199
204
3.00%,
12/01/2036
418
429
3.00%,
12/01/2036
569
584
3.00%,
12/01/2036
285
293
3.00%,
02/01/2037
241
247
3.00%,
02/01/2037
38
39
3.00%,
04/01/2037
150
154
3.00%,
04/01/2037
125
128
3.00%,
07/01/2037
92
94
3.00%,
08/01/2037
151
154
3.00%,
09/01/2037
380
389
3.00%,
04/01/2042
207
214
3.00%,
09/01/2042
117
120
3.00%,
11/01/2042
738
761
3.00%,
12/01/2042
115
118
3.00%,
02/01/2043
478
492
3.00%,
02/01/2043
464
479
3.00%,
02/01/2043
780
803
3.00%,
04/01/2043
276
284
3.00%,
04/01/2043
257
264
3.00%,
04/01/2043
1,051
1,083
3.00%,
04/01/2043
489
504
3.00%,
04/01/2043
467
481
3.00%,
04/01/2043
382
393
3.00%,
04/01/2043
401
413
3.00%,
04/01/2043
376
388
3.00%,
04/01/2043
641
660
3.00%,
05/01/2043
286
295
3.00%,
05/01/2043
528
544
3.00%,
05/01/2043
348
358
3.00%,
05/01/2043
57
58
3.00%,
06/01/2043
497
512
3.00%,
06/01/2043
363
373
3.00%,
06/01/2043
654
673
3.00%,
06/01/2043
890
914
3.00%,
06/01/2043
470
484
3.00%,
07/01/2043
664
683
3.00%,
07/01/2043
170
175
3.00%,
07/01/2043
267
275
3.00%,
08/01/2043
816
841
3.00%,
08/01/2043
168
174
3.00%,
08/01/2043
190
196
3.00%,
08/01/2043
113
116
3.00%,
08/01/2043
514
528
3.00%,
08/01/2043
286
294
3.00%,
09/01/2043
677
696
3.00%,
09/01/2043
285
293
3.00%,
10/01/2043
128
131
3.00%,
10/01/2043
866
892
3.00%,
11/01/2043
250
257
3.00%,
11/01/2043
165
170
3.00%,
11/01/2043
105
108
3.00%,
01/01/2044
125
129
3.00%,
01/01/2045
602
618
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.00%,
05/01/2045
$
786
$
806
3.00%,
09/01/2045
144
148
3.00%,
10/01/2045
500
512
3.00%,
11/01/2045
115
118
3.00%,
11/01/2045
289
296
3.00%,
12/01/2045
676
693
3.00%,
01/01/2046
455
466
3.00%,
02/01/2046
817
837
3.00%,
02/01/2046
534
547
3.00%,
02/01/2046
216
220
3.00%,
04/01/2046
120
123
3.00%,
05/01/2046
457
468
3.00%,
05/01/2046
114
117
3.00%,
05/01/2046
319
327
3.00%,
06/01/2046
174
178
3.00%,
07/01/2046
800
819
3.00%,
08/01/2046
801
820
3.00%,
08/01/2046
214
219
3.00%,
09/01/2046
290
297
3.00%,
09/01/2046
398
408
3.00%,
09/01/2046
1,018
1,043
3.00%,
09/01/2046
1,030
1,054
3.00%,
10/01/2046
1,461
1,497
3.00%,
10/01/2046
171
175
3.00%,
11/01/2046
1,030
1,055
3.00%,
11/01/2046
753
771
3.00%,
11/01/2046
121
124
3.00%,
11/01/2046
189
194
3.00%,
11/01/2046
822
842
3.00%,
11/01/2046
789
809
3.00%,
11/01/2046
1,074
1,100
3.00%,
12/01/2046
1,106
1,133
3.00%,
12/01/2046
2,122
2,173
3.00%,
01/01/2047
1,170
1,197
3.00%,
01/01/2047
398
407
3.00%,
02/01/2047
1,180
1,208
3.00%,
02/01/2047
205
210
3.00%,
02/01/2047
857
877
3.00%,
05/01/2047
413
423
3.00%,
11/01/2047
880
898
3.00%,
03/01/2048
976
994
3.00%,
04/01/2048
442
450
3.00%,
10/01/2048
110
112
3.00%,
10/01/2049
9,955
10,111
3.00%,
10/01/2049
2,021
2,057
3.00%,
11/01/2049
3,471
3,525
3.00%,
11/01/2049
991
1,007
3.00%,
11/01/2049
3,159
3,231
3.00%,
11/01/2049
1,871
1,904
3.00%,
01/01/2050
(j)
4,000
4,057
3.50%,
10/01/2025
208
216
3.50%,
11/01/2025
111
115
3.50%,
11/01/2025
257
267
3.50%,
01/01/2026
233
241
3.50%,
03/01/2026
230
238
3.50%,
12/01/2026
187
193
3.50%,
02/01/2027
120
125
3.50%,
11/01/2028
181
188
3.50%,
12/01/2028
101
105
3.50%,
03/01/2029
171
177
3.50%,
01/01/2031
8
8
3.50%,
04/01/2031
16
17
3.50%,
02/01/2032
88
91
3.50%,
04/01/2032
70
73
3.50%,
05/01/2032
154
161
3.50%,
06/01/2032
265
278
3.50%,
07/01/2032
98
102
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
128
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.50%,
09/01/2032
$
149
$
156
3.50%,
09/01/2033
73
77
3.50%,
09/01/2033
217
225
3.50%,
10/01/2033
152
159
3.50%,
10/01/2033
547
568
3.50%,
11/01/2033
157
164
3.50%,
01/01/2034
109
114
3.50%,
06/01/2034
194
203
3.50%,
08/01/2034
51
53
3.50%,
11/01/2034
122
128
3.50%,
12/01/2035
277
288
3.50%,
07/01/2036
303
316
3.50%,
02/01/2037
202
210
3.50%,
03/01/2037
254
264
3.50%,
05/01/2037
53
55
3.50%,
07/01/2037
122
127
3.50%,
10/01/2037
144
150
3.50%,
01/01/2038
369
385
3.50%,
01/01/2041
1,058
1,115
3.50%,
03/01/2041
1,437
1,514
3.50%,
10/01/2041
139
146
3.50%,
12/01/2041
398
420
3.50%,
12/01/2041
436
460
3.50%,
01/01/2042
151
159
3.50%,
03/01/2042
151
159
3.50%,
03/01/2042
100
105
3.50%,
03/01/2042
324
341
3.50%,
05/01/2042
695
732
3.50%,
05/01/2042
108
114
3.50%,
07/01/2042
185
195
3.50%,
07/01/2042
96
101
3.50%,
10/01/2042
782
825
3.50%,
04/01/2043
191
201
3.50%,
05/01/2043
222
234
3.50%,
05/01/2043
464
490
3.50%,
05/01/2043
604
636
3.50%,
06/01/2043
497
526
3.50%,
07/01/2043
762
802
3.50%,
07/01/2043
254
269
3.50%,
08/01/2043
570
600
3.50%,
08/01/2043
140
147
3.50%,
09/01/2043
179
188
3.50%,
12/01/2043
210
220
3.50%,
02/01/2044
189
199
3.50%,
07/01/2044
1,083
1,142
3.50%,
10/01/2044
221
232
3.50%,
10/01/2044
570
596
3.50%,
11/01/2044
584
611
3.50%,
12/01/2044
531
556
3.50%,
12/01/2044
510
533
3.50%,
12/01/2044
108
113
3.50%,
01/01/2045
668
698
3.50%,
04/01/2045
607
635
3.50%,
05/01/2045
227
237
3.50%,
07/01/2045
573
598
3.50%,
07/01/2045
118
124
3.50%,
08/01/2045
662
691
3.50%,
08/01/2045
689
720
3.50%,
09/01/2045
659
688
3.50%,
09/01/2045
361
377
3.50%,
09/01/2045
726
758
3.50%,
11/01/2045
549
574
3.50%,
11/01/2045
687
717
3.50%,
11/01/2045
291
303
3.50%,
12/01/2045
553
577
3.50%,
12/01/2045
643
671
3.50%,
12/01/2045
989
1,032
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.50%,
01/01/2046
$
857
$
895
3.50%,
01/01/2046
1,165
1,216
3.50%,
02/01/2046
237
247
3.50%,
02/01/2046
499
521
3.50%,
03/01/2046
740
770
3.50%,
03/01/2046
554
577
3.50%,
03/01/2046
532
555
3.50%,
03/01/2046
779
812
3.50%,
05/01/2046
909
944
3.50%,
06/01/2046
869
906
3.50%,
06/01/2046
160
166
3.50%,
07/01/2046
662
689
3.50%,
09/01/2046
639
665
3.50%,
11/01/2046
1,019
1,064
3.50%,
12/01/2046
735
766
3.50%,
01/01/2047
1,368
1,421
3.50%,
02/01/2047
1,160
1,206
3.50%,
03/01/2047
123
128
3.50%,
08/01/2047
262
272
3.50%,
09/01/2047
374
389
3.50%,
11/01/2047
1,627
1,690
3.50%,
12/01/2047
3,654
3,796
3.50%,
01/01/2048
1,430
1,487
3.50%,
02/01/2048
218
226
3.50%,
02/01/2048
1,350
1,398
3.50%,
03/01/2048
1,036
1,075
3.50%,
04/01/2048
650
675
3.50%,
06/01/2048
287
296
3.50%,
06/01/2048
829
859
3.50%,
07/01/2048
788
814
3.50%,
10/01/2048
531
547
3.50%,
10/01/2048
183
189
3.50%,
10/01/2048
176
181
3.50%,
11/01/2048
873
898
3.50%,
12/01/2048
400
412
3.50%,
02/01/2049
387
398
3.50%,
04/01/2049
2,143
2,217
3.50%,
06/01/2049
2,157
2,228
3.50%,
06/01/2049
4,204
4,334
3.50%,
06/01/2049
1,433
1,480
3.50%,
07/01/2049
6,839
7,050
3.50%,
07/01/2049
3,611
3,730
3.50%,
07/01/2049
4,224
4,359
3.50%,
08/01/2049
4,910
5,056
3.50%,
09/01/2049
3,281
3,410
3.50%,
11/01/2049
11,400
11,848
4.00%,
07/01/2025
168
175
4.00%,
04/01/2029
4
4
4.00%,
10/01/2030
12
13
4.00%,
12/01/2030
106
113
4.00%,
02/01/2031
35
38
4.00%,
03/01/2031
850
889
4.00%,
07/01/2031
22
24
4.00%,
10/01/2031
92
98
4.00%,
11/01/2031
22
23
4.00%,
12/01/2031
18
19
4.00%,
01/01/2032
27
29
4.00%,
09/01/2033
197
210
4.00%,
01/01/2036
206
220
4.00%,
02/01/2036
132
141
4.00%,
06/01/2036
114
121
4.00%,
01/01/2037
153
163
4.00%,
02/01/2037
394
417
4.00%,
07/01/2038
442
465
4.00%,
02/01/2039
131
136
4.00%,
10/01/2039
200
212
4.00%,
01/01/2041
366
392
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
129
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
4.00%,
02/01/2041
$
103
$
110
4.00%,
02/01/2041
290
311
4.00%,
09/01/2041
141
151
4.00%,
02/01/2043
137
147
4.00%,
12/01/2043
142
152
4.00%,
01/01/2044
410
438
4.00%,
06/01/2044
230
244
4.00%,
06/01/2044
372
398
4.00%,
07/01/2044
353
374
4.00%,
07/01/2044
460
487
4.00%,
09/01/2044
178
189
4.00%,
10/01/2044
258
274
4.00%,
10/01/2044
640
678
4.00%,
11/01/2044
267
284
4.00%,
12/01/2044
75
79
4.00%,
12/01/2044
347
368
4.00%,
01/01/2045
149
158
4.00%,
02/01/2045
240
254
4.00%,
02/01/2045
163
173
4.00%,
02/01/2045
440
466
4.00%,
07/01/2045
333
350
4.00%,
07/01/2045
267
282
4.00%,
09/01/2045
439
465
4.00%,
10/01/2045
419
444
4.00%,
10/01/2045
129
137
4.00%,
11/01/2045
176
185
4.00%,
11/01/2045
560
594
4.00%,
12/01/2045
248
263
4.00%,
12/01/2045
131
139
4.00%,
01/01/2046
443
469
4.00%,
02/01/2046
127
135
4.00%,
02/01/2046
498
526
4.00%,
03/01/2046
191
202
4.00%,
03/01/2046
95
101
4.00%,
04/01/2046
394
416
4.00%,
07/01/2046
520
544
4.00%,
04/01/2047
1,128
1,187
4.00%,
06/01/2047
1,074
1,128
4.00%,
08/01/2047
153
161
4.00%,
08/01/2047
1,008
1,060
4.00%,
08/01/2047
633
667
4.00%,
08/01/2047
1,153
1,212
4.00%,
09/01/2047
1,108
1,164
4.00%,
11/01/2047
2,123
2,232
4.00%,
01/01/2048
1,617
1,697
4.00%,
02/01/2048
784
823
4.00%,
03/01/2048
387
407
4.00%,
06/01/2048
799
836
4.00%,
06/01/2048
13,182
13,717
4.00%,
06/01/2048
2,253
2,352
4.00%,
07/01/2048
593
616
4.00%,
08/01/2048
378
396
4.00%,
08/01/2048
455
475
4.00%,
09/01/2048
1,179
1,227
4.00%,
09/01/2048
8,591
8,941
4.00%,
09/01/2048
1,083
1,127
4.00%,
11/01/2048
981
1,020
4.00%,
01/01/2049
6,990
7,450
4.00%,
03/01/2049
768
803
4.00%,
03/01/2049
356
369
4.00%,
04/01/2049
1,185
1,235
4.00%,
04/01/2049
1,291
1,342
4.00%,
07/01/2049
2,953
3,078
4.00%,
08/01/2049
2,887
3,018
4.00%,
10/01/2049
2,925
3,063
4.00%,
10/01/2049
992
1,049
4.00%,
11/01/2049
1,704
1,776
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
4.50%,
07/01/2029
$
2
$
2
4.50%,
02/01/2030
10
11
4.50%,
04/01/2030
4
4
4.50%,
08/01/2030
72
77
4.50%,
09/01/2030
58
63
4.50%,
01/01/2031
12
13
4.50%,
04/01/2031
7
7
4.50%,
05/01/2031
11
12
4.50%,
07/01/2031
46
49
4.50%,
08/01/2031
25
26
4.50%,
02/01/2035
104
113
4.50%,
08/01/2040
176
188
4.50%,
08/01/2040
97
105
4.50%,
12/01/2040
195
212
4.50%,
06/01/2041
131
142
4.50%,
09/01/2041
197
215
4.50%,
09/01/2043
115
125
4.50%,
10/01/2043
261
280
4.50%,
01/01/2044
469
506
4.50%,
01/01/2044
571
614
4.50%,
02/01/2044
238
256
4.50%,
03/01/2044
256
275
4.50%,
03/01/2044
150
161
4.50%,
05/01/2044
174
187
4.50%,
05/01/2044
111
120
4.50%,
05/01/2044
601
648
4.50%,
06/01/2044
311
334
4.50%,
07/01/2044
226
243
4.50%,
07/01/2044
97
103
4.50%,
08/01/2044
237
255
4.50%,
08/01/2044
225
242
4.50%,
12/01/2044
325
352
4.50%,
04/01/2046
254
271
4.50%,
08/01/2046
221
235
4.50%,
01/01/2047
158
167
4.50%,
02/01/2047
140
149
4.50%,
02/01/2047
313
332
4.50%,
03/01/2047
585
619
4.50%,
03/01/2047
238
253
4.50%,
10/01/2047
261
275
4.50%,
11/01/2047
481
508
4.50%,
02/01/2048
351
370
4.50%,
04/01/2048
1,282
1,352
4.50%,
05/01/2048
729
768
4.50%,
06/01/2048
444
467
4.50%,
08/01/2048
98
103
4.50%,
08/01/2048
654
689
4.50%,
08/01/2048
223
235
4.50%,
10/01/2048
2,649
2,793
4.50%,
10/01/2048
1,250
1,320
4.50%,
11/01/2048
73
77
4.50%,
12/01/2048
1,016
1,069
4.50%,
01/01/2049
1,011
1,064
4.50%,
02/01/2049
849
893
4.50%,
04/01/2049
1,091
1,147
4.50%,
07/01/2049
2,372
2,503
4.50%,
07/01/2049
1,394
1,474
4.50%,
09/01/2049
1,920
2,026
5.00%,
07/01/2024
4
4
5.00%,
04/01/2029
8
8
5.00%,
09/01/2029
101
109
5.00%,
03/01/2030
12
13
5.00%,
08/01/2030
16
17
5.00%,
07/01/2035
143
158
5.00%,
04/01/2037
182
197
5.00%,
01/01/2039
285
313
5.00%,
07/01/2039
120
132
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
130
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
5.00%,
07/01/2039
$
122
$
135
5.00%,
02/01/2041
157
173
5.00%,
02/01/2041
259
286
5.00%,
05/01/2042
352
388
5.00%,
03/01/2044
261
286
5.00%,
03/01/2044
165
178
5.00%,
05/01/2044
133
143
5.00%,
11/01/2044
231
253
5.00%,
04/01/2048
198
211
5.00%,
09/01/2048
2,524
2,698
5.00%,
05/01/2049
263
281
5.00%,
06/01/2049
1,680
1,796
5.00%,
07/01/2049
786
856
5.00%,
08/01/2049
948
1,023
5.50%,
01/01/2023
3
3
5.50%,
07/01/2023
3
4
5.50%,
08/01/2023
33
36
5.50%,
10/01/2023
41
44
5.50%,
11/01/2023
51
55
5.50%,
02/01/2026
48
51
5.50%,
03/01/2027
43
46
5.50%,
06/01/2028
4
5
5.50%,
09/01/2028
1
1
5.50%,
01/01/2029
3
4
5.50%,
01/01/2029
23
24
5.50%,
12/01/2029
19
21
5.50%,
11/01/2035
163
183
5.50%,
12/01/2036
95
106
5.50%,
03/01/2037
148
166
5.50%,
08/01/2037
108
122
5.50%,
08/01/2037
130
146
5.50%,
08/01/2037
102
115
5.50%,
05/01/2038
203
228
5.50%,
06/01/2038
100
113
6.00%,
05/01/2041
180
206
6.50%,
01/01/2038
96
109
$
339,461
Government
National
Mortgage
Association
(GNMA)
-
7.38%
2.50%,
03/20/2028
97
99
2.50%,
07/20/2028
96
98
2.50%,
03/20/2031
117
119
2.50%,
05/20/2032
153
154
2.50%,
07/20/2043
188
190
2.50%,
06/20/2045
117
118
2.50%,
12/20/2046
297
299
2.50%,
01/20/2047
470
474
2.50%,
01/01/2050
1,000
1,004
3.00%,
07/20/2030
206
212
3.00%,
01/20/2031
128
131
3.00%,
07/20/2032
177
182
3.00%,
01/20/2033
88
91
3.00%,
09/20/2042
1,281
1,327
3.00%,
10/15/2042
244
251
3.00%,
12/20/2042
362
375
3.00%,
01/20/2043
513
531
3.00%,
03/20/2043
216
223
3.00%,
03/20/2043
690
715
3.00%,
04/20/2043
900
933
3.00%,
06/15/2043
318
328
3.00%,
06/20/2043
196
203
3.00%,
07/15/2043
96
99
3.00%,
08/15/2043
199
205
3.00%,
08/15/2043
198
204
3.00%,
08/20/2043
93
97
3.00%,
09/20/2043
351
363
3.00%,
10/20/2043
179
185
3.00%,
11/20/2043
131
136
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
3.00%,
03/20/2044
$
250
$
259
3.00%,
08/20/2044
1,032
1,068
3.00%,
11/15/2044
266
273
3.00%,
11/20/2044
402
415
3.00%,
12/20/2044
475
491
3.00%,
02/15/2045
301
310
3.00%,
05/20/2045
420
435
3.00%,
07/15/2045
183
188
3.00%,
07/20/2045
3,138
3,242
3.00%,
08/15/2045
238
245
3.00%,
08/20/2045
910
941
3.00%,
10/20/2045
861
889
3.00%,
11/20/2045
494
510
3.00%,
12/20/2045
710
734
3.00%,
01/20/2046
182
188
3.00%,
02/20/2046
232
240
3.00%,
03/20/2046
1,204
1,244
3.00%,
04/20/2046
833
861
3.00%,
05/20/2046
735
759
3.00%,
06/20/2046
303
313
3.00%,
07/20/2046
1,104
1,140
3.00%,
08/20/2046
2,278
2,352
3.00%,
09/20/2046
1,315
1,359
3.00%,
10/20/2046
861
889
3.00%,
11/20/2046
1,304
1,346
3.00%,
11/20/2046
368
379
3.00%,
12/20/2046
1,573
1,624
3.00%,
01/20/2047
1,038
1,071
3.00%,
07/20/2047
54
56
3.00%,
10/20/2047
1,249
1,285
3.00%,
11/20/2047
602
620
3.00%,
12/20/2047
1,917
1,973
3.00%,
01/20/2048
836
860
3.00%,
02/20/2048
899
925
3.00%,
03/20/2048
843
867
3.00%,
01/01/2050
11,750
12,072
3.50%,
09/20/2028
133
138
3.50%,
04/20/2042
904
956
3.50%,
05/20/2042
942
995
3.50%,
06/20/2042
264
278
3.50%,
07/20/2042
1,050
1,109
3.50%,
10/20/2042
621
653
3.50%,
01/15/2043
345
360
3.50%,
01/20/2043
315
332
3.50%,
02/20/2043
967
1,017
3.50%,
03/20/2043
410
429
3.50%,
03/20/2043
921
967
3.50%,
04/15/2043
91
94
3.50%,
04/20/2043
645
681
3.50%,
04/20/2043
903
954
3.50%,
07/20/2043
1,067
1,127
3.50%,
08/15/2043
104
109
3.50%,
08/20/2043
869
916
3.50%,
09/20/2043
569
599
3.50%,
07/20/2044
745
778
3.50%,
08/20/2044
779
814
3.50%,
09/20/2044
291
304
3.50%,
10/20/2044
312
327
3.50%,
11/20/2044
343
358
3.50%,
12/20/2044
385
401
3.50%,
02/20/2045
384
400
3.50%,
05/20/2045
529
553
3.50%,
06/20/2045
107
111
3.50%,
07/20/2045
772
804
3.50%,
08/20/2045
353
367
3.50%,
09/20/2045
191
199
3.50%,
10/20/2045
1,431
1,497
3.50%,
11/20/2045
1,158
1,207
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
131
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
3.50%,
12/20/2045
$
723
$
756
3.50%,
01/20/2046
1,870
1,949
3.50%,
02/20/2046
103
107
3.50%,
03/20/2046
1,235
1,287
3.50%,
04/20/2046
755
786
3.50%,
05/20/2046
1,043
1,086
3.50%,
06/20/2046
1,363
1,418
3.50%,
07/15/2046
94
98
3.50%,
07/20/2046
559
580
3.50%,
08/20/2046
868
902
3.50%,
09/20/2046
988
1,027
3.50%,
10/20/2046
1,168
1,214
3.50%,
11/20/2046
898
933
3.50%,
12/20/2046
931
966
3.50%,
01/20/2047
1,033
1,071
3.50%,
02/20/2047
644
669
3.50%,
03/20/2047
906
942
3.50%,
04/20/2047
2,265
2,357
3.50%,
05/20/2047
674
701
3.50%,
06/20/2047
1,050
1,085
3.50%,
07/20/2047
1,910
1,985
3.50%,
08/20/2047
3,013
3,130
3.50%,
09/20/2047
231
240
3.50%,
10/20/2047
772
798
3.50%,
11/20/2047
988
1,025
3.50%,
12/20/2047
1,139
1,183
3.50%,
01/20/2048
1,684
1,747
3.50%,
02/20/2048
253
263
3.50%,
07/20/2048
501
517
3.50%,
01/01/2050
16,500
17,005
4.00%,
08/15/2040
88
94
4.00%,
12/20/2040
37
40
4.00%,
08/15/2041
93
99
4.00%,
11/15/2041
114
122
4.00%,
03/15/2042
130
136
4.00%,
03/20/2042
181
192
4.00%,
04/20/2042
156
166
4.00%,
05/15/2042
356
375
4.00%,
10/20/2043
96
102
4.00%,
11/20/2043
221
234
4.00%,
02/20/2044
528
561
4.00%,
03/15/2044
204
216
4.00%,
05/20/2044
345
366
4.00%,
06/20/2044
255
271
4.00%,
07/20/2044
1,023
1,084
4.00%,
08/20/2044
720
763
4.00%,
09/20/2044
648
687
4.00%,
10/20/2044
863
915
4.00%,
11/20/2044
391
414
4.00%,
12/20/2044
687
728
4.00%,
01/20/2045
570
604
4.00%,
04/20/2045
369
390
4.00%,
05/15/2045
149
157
4.00%,
07/20/2045
152
161
4.00%,
08/20/2045
423
447
4.00%,
09/20/2045
609
641
4.00%,
10/20/2045
318
334
4.00%,
11/20/2045
114
120
4.00%,
12/15/2045
141
149
4.00%,
12/20/2045
282
299
4.00%,
01/20/2046
179
188
4.00%,
02/20/2046
259
273
4.00%,
04/20/2046
438
461
4.00%,
05/20/2046
218
229
4.00%,
07/20/2046
467
489
4.00%,
01/20/2047
992
1,034
4.00%,
02/20/2047
853
887
4.00%,
03/20/2047
828
865
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
4.00%,
05/20/2047
$
1,132
$
1,183
4.00%,
06/20/2047
1,126
1,178
4.00%,
07/20/2047
2,826
2,953
4.00%,
08/20/2047
129
135
4.00%,
09/20/2047
8,663
9,084
4.00%,
10/20/2047
632
657
4.00%,
06/20/2048
282
293
4.00%,
08/20/2048
706
735
4.00%,
09/20/2048
261
272
4.00%,
10/20/2048
1,541
1,605
4.00%,
11/20/2048
689
714
4.00%,
12/20/2048
555
576
4.00%,
01/01/2050
7,200
7,452
4.50%,
02/15/2039
124
135
4.50%,
05/15/2039
117
127
4.50%,
11/15/2039
245
275
4.50%,
04/15/2040
341
371
4.50%,
01/20/2041
41
44
4.50%,
02/20/2041
41
44
4.50%,
03/20/2041
32
35
4.50%,
07/15/2041
167
179
4.50%,
05/20/2043
161
174
4.50%,
06/20/2043
148
160
4.50%,
10/20/2043
142
152
4.50%,
11/20/2043
461
495
4.50%,
03/20/2044
626
672
4.50%,
04/20/2044
28
30
4.50%,
05/20/2044
454
487
4.50%,
07/20/2044
233
250
4.50%,
12/20/2044
98
105
4.50%,
02/20/2045
256
275
4.50%,
03/20/2045
117
126
4.50%,
04/20/2045
144
154
4.50%,
06/20/2046
155
166
4.50%,
12/20/2046
440
471
4.50%,
02/20/2047
311
329
4.50%,
04/20/2047
248
261
4.50%,
06/15/2047
196
210
4.50%,
08/20/2047
549
582
4.50%,
10/20/2047
270
285
4.50%,
02/20/2048
4,811
5,079
4.50%,
05/20/2048
4,097
4,303
4.50%,
08/20/2048
994
1,046
4.50%,
10/20/2048
631
664
4.50%,
11/20/2048
1,007
1,057
4.50%,
12/20/2048
310
325
5.00%,
07/15/2035
99
110
5.00%,
04/15/2041
234
259
5.00%,
08/20/2041
90
99
5.00%,
04/20/2042
83
91
5.00%,
12/20/2042
233
257
5.00%,
07/20/2043
130
143
5.00%,
02/20/2044
132
146
5.00%,
03/20/2044
91
100
5.00%,
12/20/2045
121
133
5.00%,
03/20/2048
202
217
5.00%,
06/20/2048
4,069
4,323
5.00%,
10/20/2048
334
352
5.50%,
01/15/2040
102
114
5.50%,
06/20/2040
69
76
5.50%,
01/20/2041
196
219
5.50%,
10/20/2042
87
97
5.50%,
09/20/2043
102
113
6.00%,
04/15/2035
12
13
$
187,490
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
132
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
-
39.93%
1.13%,
02/28/2021
$
4,685
$
4,658
1.13%,
06/30/2021
11,300
11,221
1.13%,
07/31/2021
3,250
3,226
1.13%,
08/31/2021
4,050
4,019
1.13%,
09/30/2021
3,730
3,700
1.25%,
03/31/2021
10,040
9,994
1.25%,
10/31/2021
5,200
5,169
1.25%,
07/31/2023
5,000
4,933
1.25%,
08/31/2024
7,600
7,455
1.38%,
01/31/2021
5,650
5,634
1.38%,
04/30/2021
7,510
7,487
1.38%,
05/31/2021
4,265
4,252
1.38%,
06/30/2023
4,050
4,015
1.38%,
08/31/2023
13,785
13,658
1.38%,
09/30/2023
2,220
2,198
1.38%,
08/31/2026
3,400
3,308
1.50%,
10/31/2021
5,050
5,043
1.50%,
01/31/2022
3,104
3,099
1.50%,
02/28/2023
2,995
2,985
1.50%,
03/31/2023
3,340
3,328
1.50%,
09/30/2024
5,950
5,900
1.50%,
11/30/2024
(e)
8,080
8,015
1.50%,
08/15/2026
10,725
10,518
1.63%,
08/15/2022
1,990
1,992
1.63%,
08/31/2022
3,960
3,963
1.63%,
11/15/2022
2,790
2,792
1.63%,
12/15/2022
4,500
4,504
1.63%,
04/30/2023
3,000
3,000
1.63%,
05/31/2023
3,540
3,540
1.63%,
10/31/2023
3,035
3,032
1.63%,
02/15/2026
13,250
13,134
1.63%,
05/15/2026
3,345
3,311
1.63%,
09/30/2026
5,050
4,990
1.63%,
11/30/2026
3,000
2,962
1.63%,
08/15/2029
3,750
3,656
1.75%,
11/30/2021
3,975
3,987
1.75%,
02/28/2022
3,680
3,694
1.75%,
03/31/2022
4,435
4,452
1.75%,
04/30/2022
3,335
3,347
1.75%,
05/15/2022
3,430
3,443
1.75%,
05/31/2022
5,280
5,301
1.75%,
06/30/2022
3,860
3,876
1.75%,
09/30/2022
1,640
1,647
1.75%,
01/31/2023
2,560
2,571
1.75%,
05/15/2023
2,517
2,527
1.75%,
06/30/2024
3,970
3,983
1.75%,
12/31/2024
5,620
5,632
1.75%,
11/15/2029
4,305
4,243
1.88%,
11/30/2021
3,107
3,125
1.88%,
01/31/2022
3,580
3,601
1.88%,
02/28/2022
3,000
3,018
1.88%,
03/31/2022
6,700
6,743
1.88%,
04/30/2022
3,640
3,664
1.88%,
05/31/2022
4,785
4,818
1.88%,
07/31/2022
3,640
3,666
1.88%,
08/31/2022
3,810
3,838
1.88%,
09/30/2022
4,005
4,035
1.88%,
10/31/2022
4,000
4,030
1.88%,
08/31/2024
4,000
4,035
1.88%,
07/31/2026
7,400
7,433
2.00%,
01/15/2021
1,990
1,997
2.00%,
02/28/2021
3,720
3,735
2.00%,
05/31/2021
3,800
3,821
2.00%,
08/31/2021
3,995
4,021
2.00%,
10/31/2021
2,620
2,640
2.00%,
11/15/2021
11,310
11,399
2.00%,
12/31/2021
2,890
2,913
2.00%,
02/15/2022
1,545
1,558
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
2.00%,
07/31/2022
$
3,331
$
3,365
2.00%,
10/31/2022
4,050
4,094
2.00%,
11/30/2022
3,615
3,656
2.00%,
02/15/2023
4,597
4,651
2.00%,
04/30/2024
4,035
4,090
2.00%,
05/31/2024
6,765
6,859
2.00%,
06/30/2024
5,195
5,267
2.00%,
02/15/2025
8,570
8,694
2.00%,
08/15/2025
4,000
4,055
2.00%,
11/15/2026
8,630
8,730
2.13%,
01/31/2021
2,105
2,116
2.13%,
05/31/2021
3,000
3,022
2.13%,
06/30/2021
2,965
2,988
2.13%,
08/15/2021
3,140
3,166
2.13%,
09/30/2021
2,955
2,981
2.13%,
12/31/2021
3,105
3,138
2.13%,
05/15/2022
4,160
4,211
2.13%,
06/30/2022
4,365
4,423
2.13%,
12/31/2022
9,760
9,909
2.13%,
11/30/2023
3,080
3,135
2.13%,
02/29/2024
2,260
2,302
2.13%,
03/31/2024
10,250
10,441
2.13%,
07/31/2024
5,810
5,923
2.13%,
09/30/2024
4,770
4,865
2.13%,
11/30/2024
4,460
4,551
2.13%,
05/15/2025
8,950
9,135
2.13%,
05/31/2026
2,000
2,040
2.25%,
03/31/2021
5,340
5,381
2.25%,
04/30/2021
3,537
3,567
2.25%,
07/31/2021
5,370
5,424
2.25%,
04/15/2022
4,315
4,378
2.25%,
12/31/2023
3,655
3,738
2.25%,
01/31/2024
5,850
5,985
2.25%,
04/30/2024
4,850
4,967
2.25%,
10/31/2024
3,336
3,423
2.25%,
11/15/2024
10,663
10,942
2.25%,
12/31/2024
3,000
3,080
2.25%,
11/15/2025
2,500
2,568
2.25%,
03/31/2026
5,000
5,138
2.25%,
02/15/2027
8,160
8,389
2.25%,
08/15/2027
7,535
7,750
2.25%,
11/15/2027
9,840
10,120
2.25%,
08/15/2046
4,870
4,745
2.25%,
08/15/2049
6,380
6,207
2.38%,
03/15/2021
3,000
3,026
2.38%,
04/15/2021
3,600
3,635
2.38%,
03/15/2022
4,230
4,303
2.38%,
01/31/2023
4,235
4,331
2.38%,
02/29/2024
4,635
4,767
2.38%,
08/15/2024
4,595
4,736
2.38%,
04/30/2026
5,000
5,176
2.38%,
05/15/2027
15,430
16,006
2.38%,
05/15/2029
8,350
8,685
2.50%,
01/31/2021
4,420
4,461
2.50%,
02/28/2021
4,520
4,564
2.50%,
01/15/2022
4,200
4,276
2.50%,
02/15/2022
4,295
4,377
2.50%,
03/31/2023
4,560
4,686
2.50%,
08/15/2023
13,632
14,040
2.50%,
01/31/2024
4,530
4,679
2.50%,
05/15/2024
3,066
3,172
2.50%,
01/31/2025
3,300
3,429
2.50%,
02/15/2045
5,620
5,748
2.50%,
02/15/2046
7,575
7,753
2.50%,
05/15/2046
4,425
4,529
2.63%,
05/15/2021
3,320
3,366
2.63%,
06/15/2021
3,875
3,931
2.63%,
07/15/2021
9,320
9,465
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
133
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
2.63%,
12/15/2021
$
4,045
$
4,125
2.63%,
02/28/2023
4,265
4,397
2.63%,
06/30/2023
4,360
4,507
2.63%,
12/31/2023
4,360
4,523
2.63%,
03/31/2025
1,805
1,888
2.63%,
02/15/2029
6,785
7,196
2.75%,
08/15/2021
3,645
3,711
2.75%,
09/15/2021
4,285
4,367
2.75%,
04/30/2023
4,205
4,357
2.75%,
05/31/2023
5,000
5,184
2.75%,
07/31/2023
2,700
2,804
2.75%,
08/31/2023
4,495
4,671
2.75%,
11/15/2023
5,656
5,887
2.75%,
02/15/2024
5,336
5,566
2.75%,
02/28/2025
3,535
3,718
2.75%,
06/30/2025
4,570
4,814
2.75%,
02/15/2028
7,605
8,108
2.75%,
08/15/2042
1,591
1,703
2.75%,
11/15/2042
2,610
2,791
2.75%,
08/15/2047
4,280
4,601
2.75%,
11/15/2047
5,265
5,660
2.88%,
10/15/2021
4,110
4,202
2.88%,
11/15/2021
3,235
3,311
2.88%,
09/30/2023
4,750
4,961
2.88%,
10/31/2023
4,450
4,651
2.88%,
11/30/2023
4,535
4,743
2.88%,
04/30/2025
2,475
2,621
2.88%,
05/31/2025
4,120
4,364
2.88%,
07/31/2025
2,000
2,121
2.88%,
11/30/2025
3,435
3,650
2.88%,
05/15/2028
4,400
4,739
2.88%,
08/15/2028
11,265
12,149
2.88%,
05/15/2043
5,703
6,226
2.88%,
08/15/2045
4,255
4,662
2.88%,
11/15/2046
4,690
5,157
2.88%,
05/15/2049
5,720
6,322
3.00%,
09/30/2025
820
876
3.00%,
10/31/2025
4,500
4,810
3.00%,
05/15/2042
1,200
1,338
3.00%,
11/15/2044
4,995
5,580
3.00%,
05/15/2045
4,260
4,767
3.00%,
11/15/2045
4,735
5,309
3.00%,
02/15/2047
4,540
5,113
3.00%,
05/15/2047
4,900
5,519
3.00%,
02/15/2048
4,050
4,564
3.00%,
08/15/2048
5,255
5,933
3.00%,
02/15/2049
4,115
4,654
3.13%,
05/15/2021
4,745
4,842
3.13%,
11/15/2028
4,855
5,342
3.13%,
11/15/2041
1,700
1,932
3.13%,
02/15/2042
1,300
1,478
3.13%,
02/15/2043
4,020
4,568
3.13%,
08/15/2044
4,060
4,629
3.13%,
05/15/2048
4,020
4,641
3.38%,
05/15/2044
5,540
6,570
3.38%,
11/15/2048
5,255
6,357
3.63%,
02/15/2021
5,665
5,789
3.63%,
08/15/2043
3,570
4,387
3.63%,
02/15/2044
5,760
7,093
3.75%,
08/15/2041
1,100
1,368
3.75%,
11/15/2043
5,400
6,767
3.88%,
08/15/2040
1,669
2,108
4.25%,
05/15/2039
3,040
4,007
4.25%,
11/15/2040
2,060
2,731
4.38%,
11/15/2039
600
804
4.38%,
05/15/2040
3,259
4,383
4.38%,
05/15/2041
1,660
2,242
4.50%,
02/15/2036
2,000
2,655
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
4.50%,
05/15/2038
$
710
$
961
4.50%,
08/15/2039
1,235
1,679
4.75%,
02/15/2041
2,628
3,713
5.25%,
11/15/2028
2,415
3,077
5.25%,
02/15/2029
2,000
2,559
5.38%,
02/15/2031
3,616
4,857
6.00%,
02/15/2026
2,000
2,490
6.13%,
11/15/2027
2,225
2,924
6.13%,
08/15/2029
1,000
1,372
6.25%,
05/15/2030
1,500
2,111
6.38%,
08/15/2027
1,830
2,422
6.88%,
08/15/2025
1,000
1,276
8.00%,
11/15/2021
510
569
$
1,013,857
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
1,664,599
Total
Investments
$
2,606,05
7
Other
Assets
and
Liabilities
- (2.62)%
(66,59
7
)
TOTAL
NET
ASSETS
-
100.00%
$
2,539,460
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$10,381
or
0.41%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$18,076
or
0.71%
of
net
assets.
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
Rate
shown
is
as
of
period
end.
The
rate
may
be
a
variable
or
floating
rate
or
a
fixed
rate
which
may
convert
to
a
variable
or
floating
rate
in
the
future.
(g)
Non-income
producing
security
(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
or
liquidity
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.
Schedule
of
Investments
Bond
Market
Index
Account
December
31,
2019
See
accompanying
notes.
134
Portfolio
Summary (unaudited)
Sector
Percent
Government
43.99%
Mortgage
Securities
27.38%
Financial
8.38%
Consumer,
Non-cyclical
4.35%
Money
Market
Funds
3.33%
Energy
2.72%
Communications
2.47%
Industrial
1.95%
Technology
1.87%
Utilities
1.82%
Consumer,
Cyclical
1.43%
Investment
Companies
1.07%
Basic
Materials
0.74%
Revenue
Bonds
0.38%
Asset
Backed
Securities
0.38%
General
Obligation
Unlimited
0.30%
Insured
0.05%
General
Obligation
Limited
0.01%
Other
Assets
and
Liabilities
(2.62)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
120,512
$
909,185
$
947,805
$
81,892
$
120,512
$
909,185
$
947,805
$
81,892
Income
(a
)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
2,33
6
$
—
$
—
$
—
$
2,33
6
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
135
INVESTMENT
COMPANIES
-
6.57%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
1.52%
SPDR
Bloomberg
Barclays
High
Yield
Bond
ETF
35,000
$
3,834
Money
Market
Funds
-
5.05%
BlackRock
Liquidity
FedFund
1.53%
(a),(b)
1,123,094
1,123
Principal
Government
Money
Market
Fund
1.41%
(a),(c)
11,647,755
11,648
$
12,771
TOTAL
INVESTMENT
COMPANIES
$
16,605
PREFERRED
STOCKS
-
0.00%
Shares
Held
Value
(000's)
Agriculture
-
0.00%
Pinnacle
Operating
Corp
0.00%
(d),(e),(f)
81,952
$
5
TOTAL
PREFERRED
STOCKS
$
5
BONDS
-
57.72%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
1.80%
Air
2
US
8.63%,
10/01/2020
(g)
$
1
$
1
Boeing
Co/The
2.70%,
02/01/2027
540
548
2.80%,
03/01/2024
300
307
3.10%,
05/01/2026
190
196
3.20%,
03/01/2029
200
209
3.50%,
03/01/2039
65
67
3.63%,
03/01/2048
155
160
3.75%,
02/01/2050
180
191
3.90%,
05/01/2049
75
81
Bombardier
Inc
6.13%,
01/15/2023
(g)
120
123
7.50%,
03/15/2025
(g)
190
196
7.88%,
04/15/2027
(g)
45
46
Lockheed
Martin
Corp
2.90%,
03/01/2025
360
374
4.09%,
09/15/2052
120
141
SSL
Robotics
LLC
9.75%,
12/31/2023
(g)
65
71
TransDigm
Inc
6.25%,
03/15/2026
(g)
80
87
7.50%,
03/15/2027
165
180
Triumph
Group
Inc
5.25%,
06/01/2022
55
55
6.25%,
09/15/2024
(g)
20
21
7.75%,
08/15/2025
210
219
United
Technologies
Corp
3.10%,
06/01/2022
65
67
3.95%,
08/16/2025
390
425
4.13%,
11/16/2028
230
259
4.45%,
11/16/2038
115
136
4.50%,
06/01/2042
205
246
4.63%,
11/16/2048
80
100
5.40%,
05/01/2035
40
51
$
4,557
Agriculture
-
1.04%
Altria
Group
Inc
4.00%,
01/31/2024
235
249
4.50%,
05/02/2043
5
5
5.80%,
02/14/2039
85
100
5.95%,
02/14/2049
210
255
BAT
Capital
Corp
2.50%,
08/14/2020
200
200
3
Month
USD
LIBOR
+
0.59%
2.76%,
08/15/2022
395
401
3.22%,
08/15/2024
170
174
JBS
Investments
II
GmbH
7.00%,
01/15/2026
(g)
200
218
Pinnacle
Operating
Corp
9.00%,
05/15/2023
(g)
118
43
Reynolds
American
Inc
5.70%,
08/15/2035
165
192
5.85%,
08/15/2045
45
52
6.88%,
05/01/2020
580
589
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Agriculture
(continued)
Reynolds
American
Inc
(continued)
7.00%,
08/04/2041
$
120
$
147
$
2,625
Airlines
-
0.95%
American
Airlines
2013-2
Class
A
Pass
Through
Trust
4.95%,
07/15/2024
549
572
American
Airlines
2014-1
Class
A
Pass
Through
Trust
3.70%,
04/01/2028
120
126
American
Airlines
2015-1
Class
A
Pass
Through
Trust
3.38%,
11/01/2028
23
24
American
Airlines
2016-3
Class
A
Pass
Through
Trust
3.25%,
04/15/2030
201
205
Continental
Airlines
2007-1
Class
A
Pass
Through
Trust
5.98%,
10/19/2023
91
95
Continental
Airlines
2012-1
Class
A
Pass
Through
Trust
4.15%,
10/11/2025
316
332
JetBlue
2019-1
Class
AA
Pass
Through
Trust
2.75%,
11/15/2033
135
137
United
Airlines
2014-2
Class
A
Pass
Through
Trust
3.75%,
03/03/2028
232
245
United
Airlines
2018-1
Class
A
Pass
Through
Trust
3.70%,
09/01/2031
196
202
United
Airlines
2018-1
Class
AA
Pass
Through
Trust
3.50%,
09/01/2031
192
197
United
Airlines
2019-2
Class
AA
Pass
Through
Trust
2.70%,
11/01/2033
160
161
US
Airways
2013-1
Class
A
Pass
Through
Trust
3.95%,
05/15/2027
98
103
$
2,399
Automobile
Asset
Backed
Securities
-
1.44%
Americredit
Automobile
Receivables
Trust
2018-2
2.86%,
11/18/2021
292
292
Carmax
Auto
Owner
Trust
2018-4
1.94%,
02/15/2022
1,078
1,078
1.00
x
1
Month
USD
LIBOR
+
0.20%
Drive
Auto
Receivables
Trust
2019-1
2.13%,
09/15/2021
7
7
1.00
x
1
Month
USD
LIBOR
+
0.39%
Ford
Credit
Auto
Lease
Trust
2019-B
2.28%,
02/15/2022
350
351
Santander
Drive
Auto
Receivables
Trust
2019-1
2.01%,
01/18/2022
658
658
1.00
x
1
Month
USD
LIBOR
+
0.27%
Santander
Retail
Auto
Lease
Trust
2019-A
2.72%,
01/20/2022
(g)
911
916
World
Omni
Auto
Receivables
Trust
2019-A
3.02%,
04/15/2022
339
341
$
3,643
Automobile
Floor
Plan
Asset
Backed
Securities
-
1.54%
GMF
Floorplan
Owner
Revolving
Trust
2.06%,
09/15/2022
(g)
2,500
2,501
1.00
x
1
Month
USD
LIBOR
+
0.32%
Nissan
Master
Owner
Trust
Receivables
2.17%,
11/15/2023
1,400
1,402
1.00
x
1
Month
USD
LIBOR
+
0.43%
$
3,903
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
136
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Manufacturers
-
0.54%
Daimler
Finance
North
America
LLC
2.70%,
08/03/2020
(g)
$
450
$
452
General
Motors
Co
6.25%,
10/02/2043
30
34
6.60%,
04/01/2036
275
324
General
Motors
Financial
Co
Inc
3.45%,
01/14/2022
365
373
Navistar
International
Corp
6.63%,
11/01/2025
(g)
175
178
$
1,361
Banks
-
7.34%
Banco
de
Credito
del
Peru
2.70%,
01/11/2025
(g)
100
99
Banco
Internacional
del
Peru
SAA
Interbank
3.25%,
10/04/2026
(g)
150
150
Bank
of
America
Corp
2.88%,
10/22/2030
(h)
385
388
3
Month
USD
LIBOR
+
0.01%
3.19%,
07/23/2030
(h)
165
171
3
Month
USD
LIBOR
+
1.18%
3.46%,
03/15/2025
(h)
135
141
3
Month
USD
LIBOR
+
0.97%
3.50%,
05/17/2022
(h)
100
102
3
Month
USD
LIBOR
+
0.63%
3.97%,
02/07/2030
(h)
525
576
3
Month
USD
LIBOR
+
1.21%
4.10%,
07/24/2023
180
192
4.20%,
08/26/2024
700
752
4.25%,
10/22/2026
150
164
Barclays
PLC
7.75%,
12/31/2049
(h),(
i
)
200
218
USD
Swap
Semi-Annual
5
Year
+
4.84%
CIT
Group
Inc
4.13%,
03/09/2021
50
51
5.00%,
08/15/2022
120
127
5.80%,
12/31/2049
(h),(
i
)
95
98
3
Month
USD
LIBOR
+
3.97%
Citigroup
Inc
3.52%,
10/27/2028
(h)
175
184
3
Month
USD
LIBOR
+
1.15%
4.65%,
07/23/2048
105
131
Cooperatieve
Rabobank
UA
3.95%,
11/09/2022
300
314
4.75%,
01/15/2020
(g)
490
490
Danske
Bank
A/S
3.00%,
09/20/2022
(g),(h)
400
404
3
Month
USD
LIBOR
+
1.25%
DBS
Group
Holdings
Ltd
4.52%,
12/11/2028
(g),(h)
315
335
USD
Swap
Rate
NY
5
Year
+
1.59%
First
Republic
Bank/CA
2.50%,
06/06/2022
250
252
4.63%,
02/13/2047
500
571
Goldman
Sachs
Group
Inc/The
3.63%,
02/20/2024
535
562
3.85%,
01/26/2027
160
170
5.75%,
01/24/2022
730
784
6.75%,
10/01/2037
300
417
HSBC
Holdings
PLC
2.63%,
11/07/2025
(h)
335
336
3
Month
USD
LIBOR
+
1.14%
3.80%,
03/11/2025
(h)
200
210
3
Month
USD
LIBOR
+
1.21%
4.25%,
03/14/2024
435
462
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
JPMorgan
Chase
&
Co
3.21%,
04/01/2023
(h)
$
175
$
179
3
Month
USD
LIBOR
+
0.70%
3.96%,
11/15/2048
(h)
20
23
3
Month
USD
LIBOR
+
1.38%
4.35%,
08/15/2021
275
286
4.95%,
06/01/2045
100
127
5.50%,
10/15/2040
260
350
Morgan
Stanley
4.43%,
01/23/2030
(h)
50
57
3
Month
USD
LIBOR
+
1.63%
5.00%,
11/24/2025
210
237
5.55%,
12/31/2049
(h),(
i
)
565
576
3
Month
USD
LIBOR
+
3.81%
5.75%,
01/25/2021
100
104
6.38%,
07/24/2042
120
177
Popular
Inc
6.13%,
09/14/2023
50
54
Royal
Bank
of
Scotland
Group
PLC
4.27%,
03/22/2025
(h)
200
212
3
Month
USD
LIBOR
+
1.76%
5.13%,
05/28/2024
890
964
7.50%,
12/31/2049
(h),(
i
)
425
434
USD
Swap
Semi-Annual
5
Year
+
5.80%
Santander
UK
PLC
5.00%,
11/07/2023
(g)
815
876
Skandinaviska
Enskilda
Banken
AB
5.75%,
12/31/2049
(h),(
i
)
485
488
USD
Swap
Semi-Annual
5
Year
+
3.85%
Svenska
Handelsbanken
AB
3.90%,
11/20/2023
345
370
Synchrony
Bank
3.00%,
06/15/2022
1,125
1,147
Truist
Bank
4.05%,
11/03/2025
140
154
UBS
AG/London
4.50%,
06/26/2048
(g)
200
251
UBS
AG/Stamford
CT
2.35%,
03/26/2020
450
450
UBS
Group
AG
6.88%,
12/31/2049
(h),(
i
)
440
458
USD
Swap
Rate
NY
5
Year
+
5.50%
US
Bancorp
3.00%,
07/30/2029
175
181
Wells
Fargo
&
Co
3.75%,
01/24/2024
335
354
4.40%,
06/14/2046
170
194
Westpac
Banking
Corp
4.11%,
07/24/2034
(h)
85
89
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.00%
4.42%,
07/24/2039
65
71
Zions
Bancorp
NA
3.50%,
08/27/2021
825
844
$
18,558
Beverages
-
0.68%
Anheuser-Busch
Cos
LLC
/
Anheuser-Busch
InBev
Worldwide
Inc
3.65%,
02/01/2026
115
123
4.90%,
02/01/2046
565
670
Anheuser-Busch
InBev
Finance
Inc
3.70%,
02/01/2024
190
201
Anheuser-Busch
InBev
Worldwide
Inc
2.50%,
07/15/2022
27
27
4.75%,
04/15/2058
70
82
5.45%,
01/23/2039
225
283
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
137
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Beverages
(continued)
Constellation
Brands
Inc
2.65%,
11/07/2022
$
255
$
259
4.40%,
11/15/2025
70
77
$
1,722
Biotechnology
-
0.12%
Amgen
Inc
2.20%,
05/11/2020
315
315
Building
Materials
-
0.14%
BMC
East
LLC
5.50%,
10/01/2024
(g)
100
104
Builders
FirstSource
Inc
5.63%,
09/01/2024
(g)
78
81
6.75%,
06/01/2027
(g)
95
104
Norbord
Inc
5.75%,
07/15/2027
(g)
65
68
$
357
Chemicals
-
0.63%
Alpek
SAB
de
CV
4.25%,
09/18/2029
(g)
200
204
Aruba
Investments
Inc
8.75%,
02/15/2023
(g)
203
202
Blue
Cube
Spinco
LLC
9.75%,
10/15/2023
70
75
Braskem
Netherlands
Finance
BV
4.50%,
01/31/2030
(g)
200
199
Consolidated
Energy
Finance
SA
6.50%,
05/15/2026
(g)
165
155
6.88%,
06/15/2025
(g)
150
143
DuPont
de
Nemours
Inc
5.32%,
11/15/2038
165
197
5.42%,
11/15/2048
150
185
NOVA
Chemicals
Corp
5.25%,
08/01/2023
(g)
35
36
SABIC
Capital
II
BV
4.00%,
10/10/2023
(g)
200
211
$
1,607
Commercial
Mortgage
Backed
Securities
-
5.27%
Banc
of
America
Commercial
Mortgage
Trust
2015-UBS7
3.71%,
09/15/2048
500
532
BANK
2017-BNK9
4.03%,
11/15/2054
(j)
500
531
BBCMS
MORTGAGE
TRUST
2017-C1
3.67%,
02/15/2050
500
536
Benchmark
2018-B4
Mortgage
Trust
4.12%,
07/15/2051
(j)
500
555
Benchmark
2019-B15
Mortgage
Trust
3.56%,
12/15/2072
250
257
Citigroup
Commercial
Mortgage
Trust
2015-GC27
3.57%,
02/10/2048
900
936
Citigroup
Commercial
Mortgage
Trust
2015-GC29
4.14%,
04/10/2048
(j)
500
521
Citigroup
Commercial
Mortgage
Trust
2016-GC37
3.58%,
04/10/2049
350
364
Citigroup
Commercial
Mortgage
Trust
2018-B2
4.01%,
03/10/2051
350
385
COMM
2013-CCRE11
Mortgage
Trust
0.93%,
08/10/2050
(j),(k)
5,983
184
COMM
2013-CCRE8
Mortgage
Trust
3.95%,
06/10/2046
(g),(j)
350
363
COMM
2015-PC1
Mortgage
Trust
4.29%,
07/10/2050
(j)
250
268
Credit
Suisse
Commercial
Mortgage
Trust
Series
2006-C5
0.88%,
12/15/2039
(j),(k)
130
1
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
DBUBS
2011-LC2
Mortgage
Trust
4.54%,
07/10/2044
(g)
$
749
$
765
GS
Mortgage
Securities
Trust
2011-GC5
1.33%,
08/10/2044
(g),(j),(k)
9,178
141
GS
Mortgage
Securities
Trust
2012-GCJ7
2.16%,
05/10/2045
(j),(k)
1,692
47
GS
Mortgage
Securities
Trust
2013-GC16
1.03%,
11/10/2046
(j),(k)
1,926
66
GS
Mortgage
Securities
Trust
2013-GCJ12
3.78%,
06/10/2046
(j)
250
257
GS
Mortgage
Securities
Trust
2014-GC26
0.97%,
11/10/2047
(j),(k)
4,281
170
GS
Mortgage
Securities
Trust
2015-GC34
3.51%,
10/10/2048
375
396
GS
Mortgage
Securities
Trust
2015-GS1
3.73%,
11/10/2048
1,000
1,068
GS
Mortgage
Securities
Trust
2019-GC39
3.57%,
05/10/2052
300
322
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2010-C1
5.95%,
06/15/2043
(g)
400
402
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2011-C5
5.42%,
08/15/2046
(g),(j)
350
363
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2012-LC9
1.51%,
12/15/2047
(j),(k)
1,817
63
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2013-C16
0.94%,
12/15/2046
(j),(k)
8,041
244
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2016-JP3
3.14%,
08/15/2049
500
508
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C24
4.41%,
11/15/2047
(j)
500
513
LB-UBS
Commercial
Mortgage
Trust
2007-C1
0.21%,
02/15/2040
(j),(k)
397
—
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2012-C5
1.44%,
08/15/2045
(g),(j),(k)
3,248
95
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C14
1.00%,
02/15/2047
(j),(k)
6,317
172
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C16
1.00%,
06/15/2047
(j),(k)
3,519
118
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2015-C27
3.75%,
12/15/2047
100
107
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2016-C30
3.18%,
09/15/2049
500
505
MSBAM
Commercial
Mortgage
Securities
Trust
2012-CKSV
1.06%,
10/15/2030
(g),(j),(k)
3,529
84
UBS
Commercial
Mortgage
Trust
2012-C1
3.40%,
05/10/2045
138
141
UBS-Barclays
Commercial
Mortgage
Trust
2012-C4
1.63%,
12/10/2045
(g),(j),(k)
1,200
44
3.32%,
12/10/2045
(g)
500
510
Wells
Fargo
Commercial
Mortgage
Trust
2015-NXS1
3.66%,
05/15/2048
(j)
700
721
WFRBS
Commercial
Mortgage
Trust
2013-C12
1.22%,
03/15/2048
(g),(j),(k)
2,472
75
$
13,330
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
138
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Services
-
0.62%
Ahern
Rentals
Inc
7.38%,
05/15/2023
(g)
$
145
$
115
DP
World
PLC
6.85%,
07/02/2037
100
131
Global
Payments
Inc
2.65%,
02/15/2025
180
181
GW
B-CR
Security
Corp
9.50%,
11/01/2027
(g)
126
134
PayPal
Holdings
Inc
2.20%,
09/26/2022
265
267
2.65%,
10/01/2026
240
243
Refinitiv
US
Holdings
Inc
6.25%,
05/15/2026
(g)
95
104
8.25%,
11/15/2026
(g)
60
68
Tms
International
Holding
Corp
7.25%,
08/15/2025
(g)
195
176
United
Rentals
North
America
Inc
4.63%,
10/15/2025
75
77
4.88%,
01/15/2028
75
78
$
1,574
Computers
-
1.09%
Apple
Inc
2.20%,
09/11/2029
275
270
2.75%,
01/13/2025
220
227
2.85%,
05/11/2024
365
378
3.35%,
02/09/2027
385
410
Dell
Inc
4.63%,
04/01/2021
(l)
155
159
Dell
International
LLC
/
EMC
Corp
4.42%,
06/15/2021
(g)
365
376
4.90%,
10/01/2026
(g)
370
408
7.13%,
06/15/2024
(g)
330
348
8.35%,
07/15/2046
(g)
125
172
$
2,748
Consumer
Products
-
0.02%
Prestige
Brands
Inc
5.13%,
01/15/2028
(g)
55
58
Credit
Card
Asset
Backed
Securities
-
0.99%
World
Financial
Network
Credit
Card
Master
Trust
2.03%,
04/15/2025
2,500
2,498
Distribution
&
Wholesale
-
0.08%
American
Builders
&
Contractors
Supply
Co
Inc
4.00%,
01/15/2028
(g)
90
91
5.88%,
05/15/2026
(g)
105
112
$
203
Diversified
Financial
Services
-
1.40%
Aircastle
Ltd
5.13%,
03/15/2021
20
21
Ally
Financial
Inc
4.25%,
04/15/2021
30
31
Blackstone
Holdings
Finance
Co
LLC
2.50%,
01/10/2030
(g)
95
94
3.50%,
09/10/2049
(g)
70
69
Brookfield
Finance
Inc
4.00%,
04/01/2024
870
933
4.85%,
03/29/2029
100
114
Credit
Acceptance
Corp
5.13%,
12/31/2024
(g)
30
31
6.63%,
03/15/2026
(g)
285
308
7.38%,
03/15/2023
45
46
GE
Capital
International
Funding
Co
Unlimited
Co
4.42%,
11/15/2035
200
214
Global
Aircraft
Leasing
Co
Ltd
6.50%,
PIK
7.25%,
09/15/2024
(g),(j),(m)
185
193
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
(continued)
Navient
Corp
6.13%,
03/25/2024
$
105
$
114
6.63%,
07/26/2021
165
174
6.75%,
06/15/2026
170
187
Nuveen
Finance
LLC
4.13%,
11/01/2024
(g)
585
636
Springleaf
Finance
Corp
5.63%,
03/15/2023
75
81
6.63%,
01/15/2028
90
102
6.88%,
03/15/2025
175
199
$
3,547
Electric
-
2.90%
Alabama
Power
Co
3.45%,
10/01/2049
160
164
CMS
Energy
Corp
3.00%,
05/15/2026
75
77
4.70%,
03/31/2043
120
135
Commonwealth
Edison
Co
4.00%,
03/01/2049
225
255
Dominion
Energy
Inc
2.58%,
07/01/2020
900
902
3.90%,
10/01/2025
100
107
4.25%,
06/01/2028
220
243
DTE
Electric
Co
3.95%,
03/01/2049
75
86
DTE
Energy
Co
3.40%,
06/15/2029
280
289
Duke
Energy
Florida
LLC
3.80%,
07/15/2028
220
241
Enel
Chile
SA
4.88%,
06/12/2028
105
116
Evergy
Inc
2.90%,
09/15/2029
245
244
Exelon
Corp
3.50%,
06/01/2022
215
221
Fortis
Inc/Canada
3.06%,
10/04/2026
103
105
Georgia
Power
Co
4.30%,
03/15/2043
80
87
Indiantown
Cogeneration
LP
9.77%,
12/15/2020
21
22
MidAmerican
Energy
Co
3.15%,
04/15/2050
120
119
National
Rural
Utilities
Cooperative
Finance
Corp
2.40%,
04/25/2022
180
182
4.75%,
04/30/2043
(h)
125
130
3
Month
USD
LIBOR
+
2.91%
NextEra
Energy
Capital
Holdings
Inc
2.75%,
11/01/2029
280
281
3.50%,
04/01/2029
(l)
300
319
NextEra
Energy
Operating
Partners
LP
4.25%,
07/15/2024
(g)
130
135
Northern
States
Power
Co/MN
2.90%,
03/01/2050
145
139
NRG
Energy
Inc
5.25%,
06/15/2029
(g)
80
87
6.63%,
01/15/2027
110
119
7.25%,
05/15/2026
85
93
NSTAR
Electric
Co
3.25%,
05/15/2029
130
137
Perusahaan
Listrik
Negara
PT
3.88%,
07/17/2029
(g)
200
209
PPL
Electric
Utilities
Corp
3.95%,
06/01/2047
85
95
4.75%,
07/15/2043
90
109
PPL
WEM
Ltd
/
Western
Power
Distribution
Ltd
5.38%,
05/01/2021
(g)
735
757
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
139
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Public
Service
Co
of
Colorado
4.05%,
09/15/2049
$
55
$
63
Southern
California
Edison
Co
4.20%,
03/01/2029
135
149
4.88%,
03/01/2049
160
190
Southern
Co/The
5.50%,
03/15/2057
(h)
50
52
3
Month
USD
LIBOR
+
3.63%
Tucson
Electric
Power
Co
4.85%,
12/01/2048
25
31
Virginia
Electric
&
Power
Co
3.80%,
04/01/2028
180
196
4.60%,
12/01/2048
60
74
Vistra
Operations
Co
LLC
5.50%,
09/01/2026
(g)
100
106
5.63%,
02/15/2027
(g)
55
58
Xcel
Energy
Inc
2.60%,
12/01/2029
205
203
$
7,327
Electrical
Components
&
Equipment
-
0.03%
Energizer
Holdings
Inc
5.50%,
06/15/2025
(g)
65
67
Electronics
-
0.11%
ADT
Security
Corp/The
6.25%,
10/15/2021
45
48
Sensata
Technologies
BV
5.00%,
10/01/2025
(g)
155
168
Sensata
Technologies
Inc
4.38%,
02/15/2030
(g)
55
56
$
272
Engineering
&
Construction
-
0.02%
MasTec
Inc
4.88%,
03/15/2023
60
61
Entertainment
-
0.43%
Boyne
USA
Inc
7.25%,
05/01/2025
(g)
195
212
Caesars
Resort
Collection
LLC
/
CRC
Finco
Inc
5.25%,
10/15/2025
(g)
100
104
CCM
Merger
Inc
6.00%,
03/15/2022
(g)
145
148
Eldorado
Resorts
Inc
6.00%,
04/01/2025
35
37
6.00%,
09/15/2026
185
204
Enterprise
Development
Authority/The
12.00%,
07/15/2024
(g)
140
160
Scientific
Games
International
Inc
7.00%,
05/15/2028
(g)
30
32
7.25%,
11/15/2029
(g)
70
76
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp
5.13%,
10/01/2029
(g)
100
107
$
1,080
Environmental
Control
-
0.37%
Republic
Services
Inc
2.50%,
08/15/2024
155
157
3.55%,
06/01/2022
100
103
Stericycle
Inc
5.38%,
07/15/2024
(g)
75
79
Waste
Connections
Inc
4.25%,
12/01/2028
300
335
Waste
Management
Inc
3.20%,
06/15/2026
255
267
$
941
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Food
-
0.88%
Albertsons
Cos
Inc
/
Safeway
Inc
/
New
Albertsons
LP
/
Albertsons
LLC
4.63%,
01/15/2027
(g)
$
115
$
115
5.88%,
02/15/2028
(g)
90
96
6.63%,
06/15/2024
105
110
Gruma
SAB
de
CV
4.88%,
12/01/2024
(g)
350
379
Ingles
Markets
Inc
5.75%,
06/15/2023
113
115
JBS
USA
LUX
SA
/
JBS
USA
Finance
Inc
5.75%,
06/15/2025
(g)
100
103
JBS
USA
LUX
SA
/
JBS
USA
Food
Co
/
JBS
USA
Finance
Inc
6.50%,
04/15/2029
(g)
45
50
Kraft
Heinz
Foods
Co
3.50%,
06/06/2022
220
227
4.63%,
10/01/2039
(g)
70
73
McCormick
&
Co
Inc/MD
3.15%,
08/15/2024
225
234
Nestle
Holdings
Inc
3.35%,
09/24/2023
(g)
240
251
Post
Holdings
Inc
5.00%,
08/15/2026
(g)
225
238
TreeHouse
Foods
Inc
4.88%,
03/15/2022
30
30
Want
Want
China
Finance
Ltd
2.88%,
04/27/2022
200
201
$
2,222
Gas
-
0.24%
Dominion
Energy
Gas
Holdings
LLC
2.50%,
11/15/2024
125
125
3.00%,
11/15/2029
115
115
Piedmont
Natural
Gas
Co
Inc
3.50%,
06/01/2029
180
192
Southern
Co
Gas
Capital
Corp
4.40%,
05/30/2047
165
183
$
615
Healthcare
-
Products
-
0.59%
Abbott
Laboratories
3.75%,
11/30/2026
170
186
4.90%,
11/30/2046
290
381
Boston
Scientific
Corp
3.45%,
03/01/2024
290
303
4.00%,
03/01/2029
240
266
4.70%,
03/01/2049
190
231
Medtronic
Inc
4.38%,
03/15/2035
106
126
$
1,493
Healthcare
-
Services
-
0.71%
Centene
Corp
4.25%,
12/15/2027
(g)
20
21
4.63%,
12/15/2029
(g)
160
168
4.75%,
05/15/2022
155
158
4.75%,
01/15/2025
(g)
30
31
5.38%,
06/01/2026
(g)
100
106
6.13%,
02/15/2024
60
62
HCA
Healthcare
Inc
6.25%,
02/15/2021
120
125
HCA
Inc
5.88%,
02/01/2029
405
468
Tenet
Healthcare
Corp
4.63%,
07/15/2024
95
97
4.63%,
09/01/2024
(g)
80
84
5.13%,
11/01/2027
(g)
105
111
UnitedHealth
Group
Inc
3.50%,
08/15/2039
140
147
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
140
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Services
(continued)
WellCare
Health
Plans
Inc
5.25%,
04/01/2025
$
200
$
208
$
1,786
Home
Builders
-
0.32%
Forestar
Group
Inc
8.00%,
04/15/2024
(g)
220
239
Installed
Building
Products
Inc
5.75%,
02/01/2028
(g)
55
59
KB
Home
7.63%,
05/15/2023
55
62
Lennar
Corp
4.88%,
12/15/2023
80
86
LGI
Homes
Inc
6.88%,
07/15/2026
(g),(l)
200
209
Taylor
Morrison
Communities
Inc
5.75%,
01/15/2028
(g)
55
60
Taylor
Morrison
Communities
Inc
/
Taylor
Morrison
Holdings
II
Inc
5.63%,
03/01/2024
(g)
70
75
TRI
Pointe
Group
Inc
4.88%,
07/01/2021
30
31
$
821
Home
Equity
Asset
Backed
Securities
-
0.08%
Saxon
Asset
Securities
Trust
2004-1
2.81%,
03/25/2035
122
71
1.00
x
1
Month
USD
LIBOR
+
1.70%
Specialty
Underwriting
&
Residential
Finance
Trust
Series
2004-BC1
2.56%,
02/25/2035
123
121
1.00
x
1
Month
USD
LIBOR
+
0.77%
$
192
Insurance
-
1.62%
Acrisure
LLC
/
Acrisure
Finance
Inc
8.13%,
02/15/2024
(g)
95
103
American
International
Group
Inc
3.90%,
04/01/2026
400
430
4.50%,
07/16/2044
420
485
Arch
Capital
Finance
LLC
4.01%,
12/15/2026
125
137
5.03%,
12/15/2046
125
156
Markel
Corp
3.35%,
09/17/2029
305
313
4.30%,
11/01/2047
95
99
PartnerRe
Finance
B
LLC
3.70%,
07/02/2029
200
208
Swiss
Re
Finance
Luxembourg
SA
5.00%,
04/02/2049
(g),(h)
200
223
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.58%
Voya
Financial
Inc
5.65%,
05/15/2053
(h)
335
356
3
Month
USD
LIBOR
+
3.58%
6.13%,
12/31/2049
(h),(
i
)
50
54
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.36%
XLIT
Ltd
4.45%,
03/31/2025
885
964
5.50%,
03/31/2045
450
572
$
4,100
Internet
-
0.25%
Alibaba
Group
Holding
Ltd
3.40%,
12/06/2027
200
208
Baidu
Inc
4.38%,
05/14/2024
200
213
Netflix
Inc
5.38%,
02/01/2021
145
150
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Internet
(continued)
NortonLifeLock
Inc
3.95%,
06/15/2022
$
65
$
67
$
638
Investment
Companies
-
0.12%
Icahn
Enterprises
LP
/
Icahn
Enterprises
Finance
Corp
5.25%,
05/15/2027
(g)
90
92
6.25%,
02/01/2022
60
61
6.25%,
05/15/2026
80
86
6.38%,
12/15/2025
65
68
$
307
Iron
&
Steel
-
0.22%
AK
Steel
Corp
6.38%,
10/15/2025
25
25
7.50%,
07/15/2023
50
52
7.63%,
10/01/2021
95
95
Cleveland-Cliffs
Inc
4.88%,
01/15/2024
(g)
55
56
Steel
Dynamics
Inc
2.80%,
12/15/2024
145
146
3.45%,
04/15/2030
65
66
Vale
Overseas
Ltd
6.88%,
11/21/2036
86
112
$
552
Leisure
Products
&
Services
-
0.02%
NCL
Corp
Ltd
3.63%,
12/15/2024
(g)
40
41
Lodging
-
0.07%
Jack
Ohio
Finance
LLC
/
Jack
Ohio
Finance
1
Corp
6.75%,
11/15/2021
(g)
5
5
MGM
Resorts
International
6.00%,
03/15/2023
60
66
Wynn
Las
Vegas
LLC
/
Wynn
Las
Vegas
Capital
Corp
5.25%,
05/15/2027
(g)
100
106
$
177
Machinery
-
Diversified
-
0.09%
Cloud
Crane
LLC
10.13%,
08/01/2024
(g)
230
242
Media
-
2.62%
Altice
Financing
SA
6.63%,
02/15/2023
(g)
200
204
7.50%,
05/15/2026
(g)
200
215
AMC
Networks
Inc
4.75%,
12/15/2022
30
30
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp
5.13%,
02/15/2023
135
137
5.13%,
05/01/2023
(g)
200
204
5.50%,
05/01/2026
(g)
250
264
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
3.58%,
07/23/2020
305
307
4.46%,
07/23/2022
320
336
4.80%,
03/01/2050
215
227
6.48%,
10/23/2045
120
149
Comcast
Corp
3.95%,
10/15/2025
200
218
4.60%,
10/15/2038
280
334
4.60%,
08/15/2045
160
192
4.70%,
10/15/2048
110
136
6.45%,
03/15/2037
200
283
CSC
Holdings
LLC
6.50%,
02/01/2029
(g)
208
232
6.75%,
11/15/2021
40
43
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
141
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
(continued)
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co
5.38%,
08/15/2026
(g)
$
75
$
76
6.63%,
08/15/2027
(g),(l)
25
24
DISH
DBS
Corp
5.13%,
05/01/2020
70
71
5.88%,
07/15/2022
100
106
5.88%,
11/15/2024
100
102
Meredith
Corp
6.88%,
02/01/2026
200
208
NBCUniversal
Media
LLC
4.45%,
01/15/2043
145
169
Radiate
Holdco
LLC
/
Radiate
Finance
Inc
6.63%,
02/15/2025
(g)
35
35
Time
Warner
Cable
LLC
4.00%,
09/01/2021
225
230
5.88%,
11/15/2040
135
155
6.55%,
05/01/2037
100
123
UPC
Holding
BV
5.50%,
01/15/2028
(g)
300
304
ViacomCBS
Inc
4.25%,
09/01/2023
510
543
4.38%,
03/15/2043
320
339
Virgin
Media
Finance
PLC
6.00%,
10/15/2024
(g)
200
206
Walt
Disney
Co/The
5.40%,
10/01/2043
80
109
Ziggo
Bond
Co
BV
6.00%,
01/15/2027
(g)
150
158
Ziggo
BV
5.50%,
01/15/2027
(g)
150
159
$
6,628
Metal
Fabrication
&
Hardware
-
0.05%
Advanced
Drainage
Systems
Inc
5.00%,
09/30/2027
(g)
65
67
Park-Ohio
Industries
Inc
6.63%,
04/15/2027
60
61
$
128
Mining
-
0.63%
First
Quantum
Minerals
Ltd
7.00%,
02/15/2021
(g)
8
8
7.50%,
04/01/2025
(g)
200
205
FMG
Resources
August
2006
Pty
Ltd
4.75%,
05/15/2022
(g)
125
129
Glencore
Funding
LLC
3.00%,
10/27/2022
(g)
400
401
Hudbay
Minerals
Inc
7.25%,
01/15/2023
(g)
70
73
7.63%,
01/15/2025
(g)
130
137
IAMGOLD
Corp
7.00%,
04/15/2025
(g)
150
156
Kaiser
Aluminum
Corp
4.63%,
03/01/2028
(g)
55
56
Taseko
Mines
Ltd
8.75%,
06/15/2022
(g)
135
112
Teck
Resources
Ltd
6.13%,
10/01/2035
180
212
6.25%,
07/15/2041
85
97
$
1,586
Miscellaneous
Manufacturers
-
0.39%
General
Electric
Co
2.70%,
10/09/2022
370
375
5.55%,
01/05/2026
180
207
5.88%,
01/14/2038
105
128
6.88%,
01/10/2039
75
100
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Miscellaneous
Manufacturers
(continued)
Parker-Hannifin
Corp
2.70%,
06/14/2024
$
100
$
102
4.00%,
06/14/2049
60
65
$
977
Mortgage
Backed
Securities
-
3.96%
Fannie
Mae
REMIC
Trust
2005-W2
1.99%,
05/25/2035
35
35
1.00
x
1
Month
USD
LIBOR
+
0.20%
Fannie
Mae
REMICS
2.25%,
07/25/2040
81
82
3.00%,
04/25/2022
(k)
190
4
3.00%,
04/25/2027
(k)
211
14
3.50%,
11/25/2027
(k)
144
10
3.50%,
07/25/2028
(k)
275
22
3.50%,
03/25/2031
(k)
315
17
4.21%,
10/25/2046
(k)
1,049
224
(1.00)
x
1
Month
USD
LIBOR
+
6.00%
4.31%,
02/25/2043
(k)
308
54
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.31%,
09/25/2046
(k)
282
51
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.36%,
09/25/2047
(k)
773
161
(1.00)
x
1
Month
USD
LIBOR
+
6.15%
4.71%,
03/25/2022
(k)
16
1
(1.00)
x
1
Month
USD
LIBOR
+
6.50%
Freddie
Mac
REMICS
2.19%,
05/15/2049
1,942
1,942
1.00
x
1
Month
USD
LIBOR
+
0.45%
3.00%,
09/15/2025
(k)
40
—
3.00%,
03/15/2026
(k)
174
5
3.00%,
05/15/2027
(k)
178
10
3.00%,
10/15/2027
(k)
88
6
3.50%,
11/15/2020
(k)
72
1
3.50%,
09/15/2026
(k)
482
36
4.00%,
11/15/2038
(k)
392
16
4.26%,
10/15/2046
(k)
1,970
407
(1.00)
x
1
Month
USD
LIBOR
+
6.00%
Ginnie
Mae
3.74%,
05/20/2042
(k)
1,081
187
(1.00)
x
1
Month
USD
LIBOR
+
5.50%
4.34%,
11/20/2041
(k)
281
59
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.34%,
06/20/2046
(k)
688
131
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.36%,
07/16/2042
(k)
2,371
464
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.36%,
07/16/2043
(k)
666
128
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.38%,
12/20/2043
(k)
337
74
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
4.44%,
09/20/2041
(k)
2,959
420
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.44%,
11/20/2045
(k)
1,808
335
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.44%,
08/20/2047
(k)
1,736
402
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.44%,
09/20/2047
(k)
2,881
538
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.49%,
06/20/2044
(k)
4,433
556
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
4.50%,
04/16/2044
(k)
260
41
4.51%,
08/16/2045
(k)
2,717
535
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
4.89%,
02/20/2042
(k)
180
44
(1.00)
x
1
Month
USD
LIBOR
+
6.65%
4.91%,
04/16/2042
(k)
1,146
256
(1.00)
x
1
Month
USD
LIBOR
+
6.65%
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
142
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Ginnie
Mae
(continued)
4.99%,
11/20/2045
(k)
$
2,401
$
499
(1.00)
x
1
Month
USD
LIBOR
+
6.75%
5.15%,
04/20/2041
(k)
1,399
272
(1.10)
x
1
Month
USD
LIBOR
+
7.10%
HomeBanc
Mortgage
Trust
2005-5
2.13%,
01/25/2036
230
229
1.00
x
1
Month
USD
LIBOR
+
0.34%
JP
Morgan
Mortgage
Trust
2016-2
2.83%,
06/25/2046
(g),(j)
394
395
JP
Morgan
Mortgage
Trust
2016-3
3.50%,
10/25/2046
(g),(j)
331
337
Sequoia
Mortgage
Trust
2016-3
3.50%,
11/25/2046
(g),(j)
927
945
Washington
Mutual
Mortgage
Pass-Through
Certificates
WMALT
Series
2006-AR1
Trust
2.04%,
02/25/2036
73
67
1.00
x
1
Month
USD
LIBOR
+
0.25%
$
10,012
Office
&
Business
Equipment
-
0.02%
Xerox
Corp
4.12%,
03/15/2023
60
62
Oil
&
Gas
-
2.27%
Ascent
Resources
Utica
Holdings
LLC
/
ARU
Finance
Corp
7.00%,
11/01/2026
(g)
100
80
10.00%,
04/01/2022
(g)
148
147
BP
Capital
Markets
America
Inc
3.41%,
02/11/2026
180
192
4.23%,
11/06/2028
80
90
Canadian
Natural
Resources
Ltd
4.95%,
06/01/2047
75
91
Chesapeake
Oil
Op/Fin
Escrow
Shares
0.00%,
11/15/2019
(d),(e),(f)
90
—
Continental
Resources
Inc/OK
3.80%,
06/01/2024
605
626
4.38%,
01/15/2028
115
122
4.90%,
06/01/2044
55
58
Ecopetrol
SA
7.38%,
09/18/2043
65
88
EP
Energy
LLC
/
Everest
Acquisition
Finance
Inc
0.00%,
05/15/2026
(d),(g)
245
175
Extraction
Oil
&
Gas
Inc
7.38%,
05/15/2024
(g)
75
47
Exxon
Mobil
Corp
2.02%,
08/16/2024
135
136
2.44%,
08/16/2029
105
106
3.00%,
08/16/2039
75
75
3.10%,
08/16/2049
30
30
Gulfport
Energy
Corp
6.38%,
05/15/2025
210
133
Marathon
Oil
Corp
4.40%,
07/15/2027
175
190
6.60%,
10/01/2037
225
287
Nabors
Industries
Inc
5.00%,
09/15/2020
24
24
5.75%,
02/01/2025
220
198
Oasis
Petroleum
Inc
6.25%,
05/01/2026
(g)
125
104
6.88%,
01/15/2023
(l)
90
88
Occidental
Petroleum
Corp
2.60%,
08/13/2021
295
297
2.90%,
08/15/2024
120
122
3.20%,
08/15/2026
110
111
3.50%,
08/15/2029
95
97
4.40%,
08/15/2049
75
77
Petrobras
Global
Finance
BV
5.09%,
01/15/2030
(g)
301
323
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Petroleos
Mexicanos
6.50%,
03/13/2027
$
210
$
223
6.84%,
01/23/2030
(g)
105
112
Saudi
Arabian
Oil
Co
4.25%,
04/16/2039
(g)
250
268
Shell
International
Finance
BV
3.13%,
11/07/2049
55
54
Sinopec
Group
Overseas
Development
2017
Ltd
2.50%,
09/13/2022
(g)
325
326
SM
Energy
Co
6.63%,
01/15/2027
(l)
80
79
Southwestern
Energy
Co
7.75%,
10/01/2027
(l)
185
171
Sunoco
LP
/
Sunoco
Finance
Corp
4.88%,
01/15/2023
155
159
5.50%,
02/15/2026
95
99
Total
Capital
International
SA
2.83%,
01/10/2030
100
103
3.46%,
07/12/2049
15
16
Ultra
Resources
Inc/US
6.88%,
04/15/2022
(g)
65
8
$
5,732
Other
Asset
Backed
Securities
-
1.11%
Dell
Equipment
Finance
Trust
2018-1
2.09%,
10/22/2020
(g)
486
486
1.00
x
1
Month
USD
LIBOR
+
0.30%
Verizon
Owner
Trust
2017-1
2.06%,
09/20/2021
(g)
355
355
Verizon
Owner
Trust
2017-3
2.03%,
04/20/2022
(g)
1,453
1,453
1.00
x
1
Month
USD
LIBOR
+
0.27%
Verizon
Owner
Trust
2018-1
2.82%,
09/20/2022
(g)
500
503
$
2,797
Packaging
&
Containers
-
0.42%
Ardagh
Packaging
Finance
PLC
/
Ardagh
Holdings
USA
Inc
6.00%,
02/15/2025
(g)
200
210
Cascades
Inc/Cascades
USA
Inc
5.38%,
01/15/2028
(g)
40
41
Crown
Americas
LLC
/
Crown
Americas
Capital
Corp
VI
4.75%,
02/01/2026
125
132
Crown
Cork
&
Seal
Co
Inc
7.38%,
12/15/2026
132
157
Flex
Acquisition
Co
Inc
6.88%,
01/15/2025
(g)
110
111
Mauser
Packaging
Solutions
Holding
Co
7.25%,
04/15/2025
(g)
215
212
Reynolds
Group
Issuer
Inc
/
Reynolds
Group
Issuer
LLC
/
Reynolds
Group
Issuer
(Luxembourg)
S.A.
5.13%,
07/15/2023
(g)
155
158
5.50%,
07/15/2021
(g)
40
40
3
Month
USD
LIBOR
+
3.50%
$
1,061
Pharmaceuticals
-
2.59%
AbbVie
Inc
2.30%,
11/21/2022
(g)
400
402
2.60%,
11/21/2024
(g)
170
171
2.95%,
11/21/2026
(g)
180
183
3.38%,
11/14/2021
35
36
4.05%,
11/21/2039
(g)
105
110
Bausch
Health
Americas
Inc
8.50%,
01/31/2027
(g)
90
103
Bausch
Health
Cos
Inc
5.00%,
01/30/2028
(g)
40
41
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
143
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Bayer
US
Finance
II
LLC
3.88%,
12/15/2023
(g)
$
595
$
625
Becton
Dickinson
and
Co
2.89%,
06/06/2022
185
188
3.36%,
06/06/2024
200
208
3.70%,
06/06/2027
450
479
4.69%,
12/15/2044
141
165
Bristol-Myers
Squibb
Co
2.88%,
08/15/2020
(g)
315
317
2.90%,
07/26/2024
(g)
175
181
3.40%,
07/26/2029
(g)
105
112
4.13%,
06/15/2039
(g)
240
277
4.25%,
10/26/2049
(g)
195
232
Cigna
Corp
3.75%,
07/15/2023
645
676
4.38%,
10/15/2028
200
222
4.90%,
12/15/2048
35
42
CVS
Health
Corp
2.63%,
08/15/2024
110
111
3.00%,
08/15/2026
90
92
3.70%,
03/09/2023
215
224
4.30%,
03/25/2028
110
120
4.88%,
07/20/2035
190
219
5.05%,
03/25/2048
35
41
Eli
Lilly
&
Co
4.15%,
03/15/2059
80
94
Zoetis
Inc
3.90%,
08/20/2028
575
624
4.45%,
08/20/2048
95
111
4.70%,
02/01/2043
120
143
$
6,549
Pipelines
-
2.29%
Abu
Dhabi
Crude
Oil
Pipeline
LLC
3.65%,
11/02/2029
(g)
200
215
Buckeye
Partners
LP
3.95%,
12/01/2026
120
116
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp
5.63%,
05/01/2027
(g)
135
137
DCP
Midstream
Operating
LP
5.35%,
03/15/2020
(g)
450
452
Energy
Transfer
Operating
LP
4.50%,
04/15/2024
325
346
5.15%,
03/15/2045
75
79
5.25%,
04/15/2029
225
253
6.25%,
04/15/2049
170
205
Enterprise
Products
Operating
LLC
3.13%,
07/31/2029
65
67
4.20%,
01/31/2050
270
290
5.38%,
02/15/2078
(h)
250
248
3
Month
USD
LIBOR
+
2.57%
Hess
Midstream
Operations
LP
5.63%,
02/15/2026
(g)
150
156
Kinder
Morgan
Energy
Partners
LP
4.70%,
11/01/2042
150
160
MPLX
LP
4.00%,
03/15/2028
90
93
4.88%,
12/01/2024
195
212
5.50%,
02/15/2049
125
142
NuStar
Logistics
LP
6.00%,
06/01/2026
120
127
6.75%,
02/01/2021
120
125
Sabine
Pass
Liquefaction
LLC
5.00%,
03/15/2027
190
209
5.63%,
03/01/2025
100
113
5.75%,
05/15/2024
1,325
1,478
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pipelines
(continued)
Targa
Resources
Partners
LP
/
Targa
Resources
Partners
Finance
Corp
6.50%,
07/15/2027
(g)
$
176
$
193
Western
Midstream
Operating
LP
5.50%,
08/15/2048
90
79
Williams
Cos
Inc/The
5.75%,
06/24/2044
245
290
$
5,785
REITs
-
1.14%
Alexandria
Real
Estate
Equities
Inc
3.45%,
04/30/2025
715
751
4.70%,
07/01/2030
140
161
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp
3.85%,
04/15/2023
510
535
CyrusOne
LP
/
CyrusOne
Finance
Corp
2.90%,
11/15/2024
450
452
Essex
Portfolio
LP
3.00%,
01/15/2030
250
253
4.00%,
03/01/2029
155
169
Healthcare
Trust
of
America
Holdings
LP
3.10%,
02/15/2030
235
233
Mid-America
Apartments
LP
3.95%,
03/15/2029
130
142
VEREIT
Operating
Partnership
LP
3.10%,
12/15/2029
185
182
$
2,878
Retail
-
0.21%
1011778
BC
ULC
/
New
Red
Finance
Inc
4.38%,
01/15/2028
(g)
135
135
Golden
Nugget
Inc
6.75%,
10/15/2024
(g)
150
155
Home
Depot
Inc/The
5.88%,
12/16/2036
60
83
IRB
Holding
Corp
6.75%,
02/15/2026
(g)
130
136
Walmart
Inc
4.05%,
06/29/2048
10
12
$
521
Semiconductors
-
0.43%
Lam
Research
Corp
4.88%,
03/15/2049
25
31
NXP
BV
/
NXP
Funding
LLC
4.63%,
06/15/2022
(g)
370
390
4.63%,
06/01/2023
(g)
400
428
Xilinx
Inc
2.95%,
06/01/2024
225
231
$
1,080
Software
-
0.40%
Epicor
Software
Corp
9.19%,
06/30/2023
(g)
10
10
3
Month
USD
LIBOR
+
7.25%
Fiserv
Inc
3.80%,
10/01/2023
200
211
Microsoft
Corp
3.70%,
08/08/2046
120
136
4.45%,
11/03/2045
110
138
4.50%,
02/06/2057
90
117
Open
Text
Corp
5.88%,
06/01/2026
(g)
80
85
Oracle
Corp
2.95%,
11/15/2024
175
182
2.95%,
05/15/2025
100
104
4.00%,
11/15/2047
35
39
$
1,022
Sovereign
-
1.69%
Abu
Dhabi
Government
International
Bond
2.13%,
09/30/2024
(g)
200
199
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
144
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Sovereign
(continued)
Angolan
Government
International
Bond
8.00%,
11/26/2029
(g)
$
200
$
213
Argentine
Republic
Government
International
Bond
5.63%,
01/26/2022
160
83
Bahrain
Government
International
Bond
5.63%,
09/30/2031
(g)
200
214
CoBank
ACB
6.25%,
12/31/2049
(h),(
i
)
115
127
3
Month
USD
LIBOR
+
4.66%
Colombia
Government
International
Bond
5.00%,
06/15/2045
200
232
Ecuador
Government
International
Bond
9.63%,
06/02/2027
200
189
Egypt
Government
International
Bond
5.58%,
02/21/2023
(g)
200
209
Honduras
Government
International
Bond
7.50%,
03/15/2024
200
223
Hungary
Government
International
Bond
5.38%,
02/21/2023
44
48
Indonesia
Government
International
Bond
5.38%,
10/17/2023
(g)
300
332
Panama
Government
International
Bond
3.88%,
03/17/2028
200
218
Qatar
Government
International
Bond
3.25%,
06/02/2026
400
421
3.88%,
04/23/2023
(g)
200
211
Russian
Foreign
Bond
-
Eurobond
5.10%,
03/28/2035
(g)
200
239
Saudi
Government
International
Bond
4.00%,
04/17/2025
(g)
600
647
Turkey
Government
International
Bond
5.60%,
11/14/2024
225
229
Ukraine
Government
International
Bond
9.75%,
11/01/2028
(g)
200
243
$
4,277
Student
Loan
Asset
Backed
Securities
-
0.35%
Navient
Private
Education
Loan
Trust
2018-B
2.09%,
12/15/2059
(g)
568
567
1.00
x
1
Month
USD
LIBOR
+
0.35%
Navient
Student
Loan
Trust
2017-3
2.09%,
07/26/2066
(g)
73
73
1.00
x
1
Month
USD
LIBOR
+
0.30%
Navient
Student
Loan
Trust
2019-1
2.12%,
12/27/2067
(g)
246
246
1.00
x
1
Month
USD
LIBOR
+
0.33%
$
886
Telecommunications
-
2.09%
AT&T
Inc
3.88%,
01/15/2026
175
188
4.05%,
12/15/2023
425
455
4.30%,
02/15/2030
110
122
5.15%,
03/15/2042
50
58
5.35%,
09/01/2040
360
435
5.38%,
10/15/2041
130
155
5.45%,
03/01/2047
105
130
6.38%,
03/01/2041
85
113
Embarq
Corp
8.00%,
06/01/2036
105
111
GTT
Communications
Inc
7.88%,
12/31/2024
(g),(l)
90
68
Intelsat
Jackson
Holdings
SA
5.50%,
08/01/2023
190
163
8.00%,
02/15/2024
(g)
155
159
Level
3
Financing
Inc
5.13%,
05/01/2023
30
30
Ooredoo
International
Finance
Ltd
3.88%,
01/31/2028
250
268
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
Rogers
Communications
Inc
4.35%,
05/01/2049
$
255
$
285
Sprint
Capital
Corp
8.75%,
03/15/2032
70
85
Sprint
Communications
Inc
6.00%,
11/15/2022
75
79
Sprint
Corp
7.13%,
06/15/2024
120
129
7.63%,
03/01/2026
35
39
7.88%,
09/15/2023
180
199
Telecom
Italia
Capital
SA
6.38%,
11/15/2033
65
72
TELUS
Corp
4.30%,
06/15/2049
300
331
T-Mobile
USA
Inc
0.00%,
01/15/2024
(d),(e),(f)
30
—
0.00%,
04/15/2024
(d),(e),(f)
95
—
0.00%,
04/15/2025
(d),(e),(f)
320
—
0.00%,
01/15/2026
(d),(e),(f)
95
—
4.00%,
04/15/2022
125
128
5.13%,
04/15/2025
200
207
Verizon
Communications
Inc
3.88%,
02/08/2029
270
298
4.50%,
08/10/2033
355
414
5.25%,
03/16/2037
260
327
Vodafone
Group
PLC
4.88%,
06/19/2049
215
249
$
5,297
Transportation
-
0.21%
Burlington
Northern
Santa
Fe
LLC
4.15%,
12/15/2048
60
69
Eletson
Holdings
Inc
/
Eletson
Finance
US
LLC
/
Agathonissos
Finance
LLC
0.00%,
01/15/2022
(d)
121
36
Navios
Maritime
Acquisition
Corp
/
Navios
Acquisition
Finance
US
Inc
8.13%,
11/15/2021
(g)
200
158
Navios
Maritime
Holdings
Inc
/
Navios
Maritime
Finance
II
US
Inc
7.38%,
01/15/2022
(g)
55
32
11.25%,
08/15/2022
(g)
45
31
Navios
South
American
Logistics
Inc
/
Navios
Logistics
Finance
US
Inc
7.25%,
05/01/2022
(g),(l)
140
137
Union
Pacific
Corp
4.38%,
11/15/2065
60
66
$
529
Trucking
&
Leasing
-
0.09%
DAE
Funding
LLC
4.50%,
08/01/2022
(g)
95
96
5.25%,
11/15/2021
(g)
25
26
5.75%,
11/15/2023
(g)
100
105
$
227
TOTAL
BONDS
$
145,973
SENIOR
FLOATING
RATE
INTERESTS
-
0.92%
Principal
Amount
(000's)
Value
(000's)
Automobile
Manufacturers
-
0.04%
Navistar
Inc
5.37%,
11/06/2024
(n)
$
89
$
89
3
Month
USD
LIBOR
+
3.00%
Commercial
Services
-
0.01%
Refinitiv
US
Holdings
Inc
5.05%,
10/01/2025
(n)
35
35
3
Month
USD
LIBOR
+
3.00%
Computers
-
0.10%
McAfee
LLC
10.32%,
09/29/2025
(n)
240
241
3
Month
USD
LIBOR
+
3.25%
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
145
SENIOR
FLOATING
RATE
INTERESTS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
-
0.12%
Russell
Investments
US
Institutional
Holdco
Inc
5.05%,
06/01/2023
(n)
$
301
$
301
3
Month
USD
LIBOR
+
2.00%
Electrical
Components
&
Equipment
-
0.05%
Energizer
Holdings
Inc
4.00%,
12/17/2025
(n)
136
136
3
Month
USD
LIBOR
+
4.50%
Entertainment
-
0.04%
Eldorado
Resorts
Inc
4.05%,
04/17/2024
(n)
57
57
3
Month
USD
LIBOR
+
3.00%
Lions
Gate
Capital
Holdings
LLC
4.05%,
03/24/2025
(n)
50
50
3
Month
USD
LIBOR
+
2.00%
$
107
Insurance
-
0.03%
Asurion
LLC
4.80%,
11/03/2023
(n)
75
75
1
Month
USD
LIBOR
+
7.25%
Lodging
-
0.06%
Golden
Nugget
LLC
4.69%,
10/04/2023
(n)
76
76
3
Month
USD
LIBOR
+
2.25%
Spectacle
Gary
Holdings
LLC
10.80%,
12/23/2025
(n)
70
71
1
Month
USD
LIBOR
+
9.00%
$
147
Media
-
0.04%
CSC
Holdings
LLC
4.24%,
04/15/2027
(n)
50
50
1
Month
USD
LIBOR
+
2.50%
Diamond
Sports
Group
LLC
4.94%,
08/24/2026
(n)
45
45
1
Month
USD
LIBOR
+
3.50%
$
95
Oil
&
Gas
-
0.04%
California
Resources
Corp
6.55%,
12/31/2022
(n)
105
93
3
Month
USD
LIBOR
+
3.50%
Pharmaceuticals
-
0.17%
Bausch
Health
Americas
Inc
4.74%,
05/19/2025
(n)
262
263
3
Month
USD
LIBOR
+
7.50%
Endo
International
PLC
6.06%,
04/29/2024
(n)
163
156
3
Month
USD
LIBOR
+
4.00%
$
419
Pipelines
-
0.03%
Buckeye
Partners
LP
4.44%,
11/15/2026
(n)
85
86
1
Month
USD
LIBOR
+
2.75%
Retail
-
0.06%
Academy
Ltd
5.69%,
07/01/2022
(n)
104
85
3
Month
USD
LIBOR
+
4.50%
IRB
Holding
Corp
5.22%,
01/17/2025
(n)
74
75
3
Month
USD
LIBOR
+
2.75%
$
160
Telecommunications
-
0.13%
Avaya
Inc
5.99%,
12/16/2024
(n)
202
198
3
Month
USD
LIBOR
+
6.00%
SENIOR
FLOATING
RATE
INTERESTS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
Maxar
Technologies
Ltd
4.85%,
10/05/2024
(n)
$
142
$
135
3
Month
USD
LIBOR
+
4.25%
$
333
TOTAL
SENIOR
FLOATING
RATE
INTERESTS
$
2,317
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
41.09%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
4.06%
3.00%,
10/01/2042
$
50
$
52
3.00%,
11/01/2042
272
281
3.00%,
11/01/2042
50
52
3.00%,
03/01/2043
1,236
1,280
3.00%,
12/01/2046
121
124
3.00%,
01/01/2047
2,248
2,321
3.50%,
10/01/2041
48
50
3.50%,
04/01/2042
116
122
3.50%,
04/01/2042
59
63
3.50%,
04/01/2045
54
57
3.50%,
10/01/2045
874
922
3.50%,
03/01/2048
128
135
4.00%,
02/01/2045
27
29
4.00%,
02/01/2046
63
66
4.00%,
02/01/2046
444
472
4.00%,
06/01/2046
64
68
4.00%,
04/01/2047
379
406
4.00%,
11/01/2047
623
657
4.50%,
07/01/2024
11
11
4.50%,
07/01/2039
63
68
4.50%,
10/01/2041
36
39
4.50%,
12/01/2043
855
927
4.50%,
03/01/2046
284
315
4.50%,
01/01/2049
342
361
4.75%,
02/01/2037
19
20
1.00
x
12
Month
USD
LIBOR
+
1.63%
5.00%,
06/01/2031
90
97
5.00%,
10/01/2035
31
34
5.00%,
06/01/2041
911
1,003
5.03%,
02/01/2034
1
1
1.00
x
12
Month
USD
LIBOR
+
1.99%
6.00%,
06/01/2032
22
25
6.00%,
10/01/2032
11
13
6.00%,
01/01/2038
54
62
6.50%,
03/01/2029
3
3
6.50%,
05/01/2029
4
5
6.50%,
04/01/2031
2
2
6.50%,
02/01/2032
4
4
6.50%,
05/01/2032
4
4
6.50%,
04/01/2035
7
8
7.00%,
12/01/2029
13
14
7.00%,
06/01/2030
4
4
7.00%,
12/01/2030
1
1
7.00%,
01/01/2031
2
2
7.00%,
12/01/2031
30
30
7.50%,
04/01/2030
1
2
7.50%,
03/01/2031
7
8
8.00%,
09/01/2030
31
33
$
10,253
Federal
National
Mortgage
Association
(FNMA)
-
0.00%
4.56%,
07/01/2034
1
1
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.19%
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
14.05%
2.50%,
01/01/2035
(o)
2,000
2,018
3.00%,
03/01/2034
295
304
3.00%,
01/01/2035
(o)
4,000
4,099
3.00%,
03/01/2042
85
87
3.00%,
03/01/2042
92
95
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
146
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.00%,
05/01/2042
$
47
$
48
3.00%,
06/01/2042
42
44
3.00%,
06/01/2042
87
89
3.00%,
05/01/2043
171
176
3.00%,
01/01/2050
(o)
4,500
4,564
3.50%,
04/01/2030
321
337
3.50%,
05/01/2034
1,412
1,489
3.50%,
08/01/2034
339
355
3.50%,
12/01/2040
65
69
3.50%,
01/01/2041
39
41
3.50%,
12/01/2041
21
22
3.50%,
03/01/2042
37
39
3.50%,
04/01/2042
71
74
3.50%,
11/01/2042
918
984
3.50%,
02/01/2043
46
48
3.50%,
07/01/2043
815
867
3.50%,
07/01/2043
263
280
3.50%,
11/01/2044
1,652
1,743
3.50%,
03/01/2045
56
60
3.50%,
06/01/2045
106
112
3.50%,
11/01/2045
71
75
3.50%,
05/01/2046
63
66
3.50%,
08/01/2047
1,589
1,703
3.50%,
10/01/2047
1,629
1,735
3.50%,
11/01/2047
723
763
3.50%,
01/01/2048
514
547
3.50%,
03/01/2048
1,067
1,125
3.50%,
04/01/2048
1,436
1,513
4.00%,
08/01/2020
12
12
4.00%,
03/01/2034
381
410
4.00%,
09/01/2040
87
94
4.00%,
05/01/2041
195
209
4.00%,
10/01/2041
31
33
4.00%,
10/01/2041
48
51
4.00%,
11/01/2041
44
47
4.00%,
04/01/2042
29
31
4.00%,
11/01/2043
38
40
4.00%,
11/01/2043
107
115
4.00%,
02/01/2044
123
132
4.00%,
06/01/2044
265
283
4.00%,
09/01/2044
35
37
4.00%,
09/01/2045
114
121
4.00%,
12/01/2045
668
709
4.00%,
08/01/2046
90
96
4.00%,
01/01/2047
65
68
4.00%,
04/01/2047
365
391
4.00%,
05/01/2047
799
840
4.00%,
11/01/2047
1,885
2,011
4.00%,
10/01/2048
446
476
4.50%,
07/01/2025
37
39
4.50%,
08/01/2040
53
57
4.50%,
11/01/2040
848
921
4.50%,
12/01/2040
33
35
4.50%,
08/01/2041
35
38
4.50%,
09/01/2041
245
266
4.50%,
05/01/2044
43
46
4.50%,
12/01/2044
107
115
4.50%,
06/01/2046
45
48
4.50%,
05/01/2047
31
33
4.50%,
05/01/2047
119
126
5.00%,
10/01/2041
168
184
5.00%,
06/01/2048
418
459
5.50%,
12/01/2022
9
10
5.50%,
07/01/2033
231
260
5.50%,
04/01/2035
23
25
5.50%,
08/01/2036
446
501
5.50%,
02/01/2037
4
4
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
5.50%,
05/01/2040
$
41
$
46
6.00%,
05/01/2031
2
2
6.00%,
07/01/2035
135
155
6.00%,
02/01/2037
79
88
6.00%,
02/01/2038
49
56
6.50%,
03/01/2032
3
3
6.50%,
07/01/2037
18
20
6.50%,
07/01/2037
32
38
6.50%,
02/01/2038
34
39
6.50%,
03/01/2038
7
8
6.50%,
09/01/2038
111
128
$
35,527
Government
National
Mortgage
Association
(GNMA)
-
6.95%
3.00%,
02/15/2043
338
348
3.00%,
07/20/2044
501
519
3.00%,
01/20/2046
385
398
3.00%,
07/20/2046
622
642
3.00%,
12/20/2046
1,709
1,765
3.00%,
01/01/2050
1,200
1,233
3.25%,
07/20/2043
80
83
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.50%
3.50%,
04/20/2046
196
208
3.50%,
10/20/2046
297
310
3.50%,
07/20/2047
1,195
1,250
3.50%,
01/01/2050
5,050
5,204
4.00%,
02/15/2042
129
137
4.00%,
06/20/2046
79
83
4.00%,
01/20/2048
2,155
2,263
4.00%,
01/01/2050
635
657
4.50%,
09/15/2039
531
585
4.50%,
11/15/2040
103
113
4.50%,
06/20/2048
34
36
5.00%,
02/15/2034
206
228
5.00%,
10/15/2034
75
83
5.00%,
10/20/2039
40
44
5.00%,
07/20/2040
16
17
5.00%,
02/15/2042
85
95
5.50%,
12/20/2033
102
115
5.50%,
05/20/2035
11
13
5.50%,
12/20/2048
637
677
6.00%,
01/20/2029
19
21
6.00%,
07/20/2029
3
3
6.00%,
12/15/2033
25
29
6.00%,
12/20/2036
55
62
6.50%,
03/20/2028
3
3
6.50%,
05/20/2029
3
3
6.50%,
12/15/2032
291
322
7.00%,
03/15/2031
6
6
7.50%,
05/15/2029
14
14
8.00%,
12/15/2030
6
7
$
17,576
U.S.
Treasury
-
16.03%
1.25%,
07/31/2023
1,405
1,386
1.50%,
08/15/2026
1,420
1,392
1.63%,
10/31/2023
370
370
1.75%,
04/30/2022
3,385
3,398
2.00%,
10/31/2022
4,500
4,549
2.13%,
11/30/2023
(p)
1,140
1,160
2.50%,
05/15/2024
7,575
7,838
3.00%,
09/30/2025
3,000
3,205
3.00%,
05/15/2045
2,640
2,954
3.00%,
11/15/2045
2,000
2,243
3.13%,
05/15/2048
5,950
6,868
3.75%,
11/15/2043
1,650
2,068
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
147
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
4.75%,
02/15/2037
$
2,260
$
3,114
$
40,545
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
103,902
Total
Investments
$
268,802
Other
Assets
and
Liabilities
- (6.30)%
(15,928)
TOTAL
NET
ASSETS
-
100.00%
$
252,874
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,123
or
0.44%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(f)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$5
or
0.00%
of
net
assets.
(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
of
these
securities
totaled
$40,909
or
16.18%
of
net
assets.
(h)
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.
(
i
)
Perpetual
security.
Perpetual
securities
pay
an
indefinite
stream
of
interest,
but
they
may
be
called
by
the
issuer
at
an
earlier
date.
Date
shown,
if
any,
reflects
the
next
call
date
or
final
legal
maturity
date.
Rate
shown
is
as
of
period
end.
(j)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions. These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(k)
Security
is
an
Interest
Only
Strip.
(l)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(m)
Payment
in
kind;
the
issuer
has
the
option
of
paying
additional
securities
in
lieu
of
cash.
(n)
Rate
information
disclosed
is
based
on
an
average
weighted
rate
of
the
underlying
tranches
as
of
period
end.
(o)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction. See
Notes
to
Financial
Statements
for
additional
information.
(p)
Security
or
a
portion
of
the
security
was
pledged
to
cover
margin
requirements
for
futures
contracts.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$92
or
0.04%
of
net
assets.
Portfolio
Summary (unaudited)
Sector
Percent
Mortgage
Securities
34.29%
Government
17.72%
Financial
11.77%
Consumer,
Non-cyclical
7.43%
Asset
Backed
Securities
5.51%
Communications
5.13%
Money
Market
Funds
5.05%
Energy
4.63%
Industrial
3.77%
Utilities
3.14%
Consumer,
Cyclical
2.82%
Technology
2.04%
Investment
Companies
1.52%
Basic
Materials
1.48%
Other
Assets
and
Liabilities
(6.30)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
3,894
$
162,671
$
154,917
$
11,648
$
3,894
$
162,671
$
154,917
$
11,648
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
269
$
—
$
—
$
—
$
269
$
—
$
—
$
—
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
10
Year
Note;
March
2020
Long
10
$
1,284
$
(11)
US
2
Year
Note;
March
2020
Short
45
9,697
6
US
5
Year
Note;
March
2020
Short
28
3,321
12
US
Long
Bond;
March
2020
Long
22
3,430
(70)
US
Ultra
Bond;
March
2020
Long
3
545
1
Total
$
(62)
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
Diversified
Balanced
Account
December
31,
2019
See
accompanying
notes.
148
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
15.42%
International
Equity
Index
Fund
(
a)
6,964,469
$
73,545
MidCap
S&P
400
Index
Fund
(
a)
2,097,835
42,334
SmallCap
S&P
600
Index
Fund
(
a)
1,725,019
42,712
$
158,591
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
84.61%
Bond
Market
Index
Account
(
a)
47,063,286
504,518
LargeCap
S&P
500
Index
Account
(
a)
18,133,137
366,108
$
870,626
TOTAL
INVESTMENT
COMPANIES
$
1,029,217
PREFERRED
STOCKS
-
0.00%
Shares
Held
Value
(000's)
Agriculture
-
0.00%
Pinnacle
Operating
Corp
0.00
%
(
b),(c),(d)
5,058
$
—
TOTAL
PREFERRED
STOCKS
$
—
BONDS
-
0.00%
Principal
Amount
(000's)
Value
(000's)
Agriculture
-
0.00%
Pinnacle
Operating
Corp
9.00
%,
05
/15/2023
(e)
$
5
$
2
Oil
&
Gas
-
0.00%
Chesapeake
Oil
Op/Fin
Escrow
Shares
0.00
%,
11
/15/2019
(b),(c),(d)
5
—
TOTAL
BONDS
$
2
Total
Investments
$
1,029,219
Other
Assets
and
Liabilities
- (
0.03)%
(261)
TOTAL
NET
ASSETS
-
100.00%
$
1,028,958
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
(c)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(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
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$0
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
$2
or
0.00%
of
net
assets.
Portfolio
Summary (
unaudited)
Fund
Type
Percent
Fixed
Income
Funds
49.03%
Domestic
Equity
Funds
43.85%
International
Equity
Funds
7.15%
Energy
0.00%
Consumer,
Non-cyclical
0.00%
Other
Assets
and
Liabilities
(
0.03)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
494,742
$
98,716
$
118,110
$
504,518
International
Equity
Index
Fund
70,566
8,969
17,789
73,545
LargeCap
S&P
500
Index
Account
358,195
47,028
116,36
1
366,108
MidCap
S&P
400
Index
Fund
40,747
8,991
14,886
42,334
SmallCap
S&P
600
Index
Fund
41,218
10,912
15,443
42,712
$
1,005,468
$
174,616
$
282,58
9
$
1,029,217
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Bond
Market
Index
Account
$
13,16
1
$
1,535
$
—
$
27,635
International
Equity
Index
Fund
2,199
39
205
11,760
LargeCap
S&P
500
Index
Account
6,860
18,40
8
15,633
58,838
MidCap
S&P
400
Index
Fund
639
917
1,873
6,565
SmallCap
S&P
600
Index
Fund
572
507
2,362
5,518
$
23,43
1
$
21,40
6
$
20,073
$
110,316
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Balanced
Managed
Volatility
Account
December
31,
2019
See
accompanying
notes.
149
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
15.65%
International
Equity
Index
Fund
(
a)
1,211,509
$
12,794
MidCap
S&P
400
Index
Fund
(
a)
364,872
7,363
SmallCap
S&P
600
Index
Fund
(
a)
299,987
7,428
$
27,585
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
84.38%
Bond
Market
Index
Account
(
a)
8,192,628
87,825
LargeCap
S&P
500
Managed
Volatility
Index
Account
(
a)
4,042,255
60,876
$
148,701
TOTAL
INVESTMENT
COMPANIES
$
176,286
Total
Investments
$
176,286
Other
Assets
and
Liabilities
- (
0.03)%
(51)
TOTAL
NET
ASSETS
-
100.00%
$
176,235
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
Portfolio
Summary (
unaudited)
Fund
Type
Percent
Fixed
Income
Funds
49.84%
Domestic
Equity
Funds
42.93%
International
Equity
Funds
7.26%
Other
Assets
and
Liabilities
(
0.03)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
79,909
$
19,614
$
16,502
$
87,825
International
Equity
Index
Fund
11,398
2,085
2,630
12,794
LargeCap
S&P
500
Managed
Volatility
Index
Account
57,667
10,855
17,95
5
60,876
MidCap
S&P
400
Index
Fund
6,581
1,833
2,272
7,363
SmallCap
S&P
600
Index
Fund
6,657
2,148
2,359
7,428
$
162,212
$
36,535
$
41,71
8
$
176,286
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Bond
Market
Index
Account
$
2,20
1
$
146
$
—
$
4,658
International
Equity
Index
Fund
382
3
35
1,938
LargeCap
S&P
500
Managed
Volatility
Index
Account
999
1,47
4
4,154
8,835
MidCap
S&P
400
Index
Fund
109
(2)
321
1,223
SmallCap
S&P
600
Index
Fund
98
12
404
970
$
3,78
9
$
1,63
3
$
4,914
$
17,624
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Balanced
Volatility
Control
Account
December
31,
2019
See
accompanying
notes.
150
INVESTMENT
COMPANIES
-
100.29%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
20.09%
iShares
Core
S&P
500
ETF
90,359
$
29,20
8
Money
Market
Funds
-
0.17%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
241,565
242
Principal
Funds,
Inc.
Class
R-6
-
15.10%
International
Equity
Index
Fund
(
a)
964,920
10,190
MidCap
S&P
400
Index
Fund
(
a)
291,534
5,883
SmallCap
S&P
600
Index
Fund
(
a)
237,165
5,872
$
21,945
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
64.93%
Bond
Market
Index
Account
(
a)
6,769,331
72,567
LargeCap
S&P
500
Index
Account
(
a)
1,081,023
21,826
$
94,393
TOTAL
INVESTMENT
COMPANIES
$
145,78
8
Total
Investments
$
145,78
8
Other
Assets
and
Liabilities
- (
0.29)%
(41
7
)
TOTAL
NET
ASSETS
-
100.00%
$
145,371
(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
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
49.92%
Domestic
Equity
Funds
23.10%
Investment
Companies
20.09%
International
Equity
Funds
7.01%
Money
Market
Funds
0.17%
Other
Assets
and
Liabilities
(
0.29)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
33,032
$
43,186
$
5,758
$
72,567
International
Equity
Index
Fund
4,747
5,575
1,201
10,190
LargeCap
S&P
500
Index
Account
10,500
12,990
4,622
21,826
MidCap
S&P
400
Index
Fund
2,782
3,565
1,041
5,883
Principal
Government
Money
Market
Fund
1.41%
—
27,492
27,250
242
SmallCap
S&P
600
Index
Fund
2,789
3,737
1,113
5,872
$
53,850
$
96,545
$
40,985
$
116,580
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Bond
Market
Index
Account
$
1,567
$
9
$
—
$
2,098
International
Equity
Index
Fund
303
—
29
1,069
LargeCap
S&P
500
Index
Account
349
10
796
2,948
MidCap
S&P
400
Index
Fund
89
5
261
572
Principal
Government
Money
Market
Fund
1.41%
27
—
—
—
SmallCap
S&P
600
Index
Fund
79
(6)
329
465
$
2,414
$
18
$
1,415
$
7,152
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Growth
Account
December
31,
2019
See
accompanying
notes.
151
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
20.42%
International
Equity
Index
Fund
(
a)
36,261,131
$
382,917
MidCap
S&P
400
Index
Fund
(
a)
9,557,027
192,861
SmallCap
S&P
600
Index
Fund
(
a)
7,858,553
194,578
$
770,356
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
79.61%
Bond
Market
Index
Account
(
a)
120,075,475
1,287,209
LargeCap
S&P
500
Index
Account
(
a)
84,970,527
1,715,555
$
3,002,764
TOTAL
INVESTMENT
COMPANIES
$
3,773,120
Total
Investments
$
3,773,120
Other
Assets
and
Liabilities
- (
0.03)%
(975)
TOTAL
NET
ASSETS
-
100.00%
$
3,772,145
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
Portfolio
Summary (
unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
55.75%
Fixed
Income
Funds
34.13%
International
Equity
Funds
10.15%
Other
Assets
and
Liabilities
(
0.03)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
1,196,602
$
298,095
$
280,912
$
1,287,209
International
Equity
Index
Fund
348,261
38,997
63,589
382,917
LargeCap
S&P
500
Index
Account
1,590,506
173,276
399,916
1,715,555
MidCap
S&P
400
Index
Fund
175,905
35,777
51,310
192,861
SmallCap
S&P
600
Index
Fund
177,962
44,944
54,295
194,578
$
3,489,236
$
591,089
$
850,022
$
3,773,120
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Bond
Market
Index
Account
$
32,8
09
$
4,345
$
—
$
69,079
International
Equity
Index
Fund
11,456
133
1,067
59,115
LargeCap
S&P
500
Index
Account
31,423
40,445
71,608
311,244
MidCap
S&P
400
Index
Fund
2,909
803
8,523
31,686
SmallCap
S&P
600
Index
Fund
2,601
1,473
10,750
24,494
$
81,19
8
$
47,199
$
91,948
$
495,618
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Growth
Managed
Volatility
Account
December
31,
2019
See
accompanying
notes.
152
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
20.83%
International
Equity
Index
Fund
(
a)
3,468,863
$
36,631
MidCap
S&P
400
Index
Fund
(
a)
914,105
18,446
SmallCap
S&P
600
Index
Fund
(
a)
751,526
18,608
$
73,685
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
79.20%
Bond
Market
Index
Account
(
a)
11,494,168
123,218
LargeCap
S&P
500
Managed
Volatility
Index
Account
(
a)
10,417,012
156,880
$
280,098
TOTAL
INVESTMENT
COMPANIES
$
353,783
Total
Investments
$
353,783
Other
Assets
and
Liabilities
- (
0.03)%
(96)
TOTAL
NET
ASSETS
-
100.00%
$
353,687
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
Portfolio
Summary (
unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
54.83%
Fixed
Income
Funds
34.84%
International
Equity
Funds
10.36%
Other
Assets
and
Liabilities
(
0.03)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
111,746
$
30,478
$
25,828
$
123,218
International
Equity
Index
Fund
32,517
4,824
6,251
36,631
LargeCap
S&P
500
Managed
Volatility
Index
Account
148,017
21,229
38,85
1
156,880
MidCap
S&P
400
Index
Fund
16,424
3,924
4,943
18,446
SmallCap
S&P
600
Index
Fund
16,613
4,780
5,217
18,608
$
325,317
$
65,235
$
81,0
90
$
353,783
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Bond
Market
Index
Account
$
3,10
1
$
252
$
—
$
6,570
International
Equity
Index
Fund
1,096
—
100
5,541
LargeCap
S&P
500
Managed
Volatility
Index
Account
2,589
3,22
5
10,762
23,260
MidCap
S&P
400
Index
Fund
274
(2)
802
3,043
SmallCap
S&P
600
Index
Fund
245
22
1,011
2,410
$
7,30
5
$
3,49
7
$
12,675
$
40,824
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Growth
Volatility
Control
Account
December
31,
2019
See
accompanying
notes.
153
INVESTMENT
COMPANIES
-
100.23%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
20.03%
iShares
Core
S&P
500
ETF
474,376
$
153,33
7
Money
Market
Funds
-
0.14%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
1,047,357
1,047
Principal
Funds,
Inc.
Class
R-6
-
20.11%
International
Equity
Index
Fund
(
a)
7,255,709
76,620
MidCap
S&P
400
Index
Fund
(
a)
1,918,089
38,707
SmallCap
S&P
600
Index
Fund
(
a)
1,560,374
38,635
$
153,962
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
59.95%
Bond
Market
Index
Account
(
a)
24,942,251
267,381
LargeCap
S&P
500
Index
Account
(
a)
9,483,498
191,472
$
458,853
TOTAL
INVESTMENT
COMPANIES
$
767,
199
Total
Investments
$
767,
199
Other
Assets
and
Liabilities
- (
0.23)%
(1,78
2
)
TOTAL
NET
ASSETS
-
100.00%
$
765,417
(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
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
35.12%
Fixed
Income
Funds
34.93%
Investment
Companies
20.03%
International
Equity
Funds
10.01%
Money
Market
Funds
0.14%
Other
Assets
and
Liabilities
(
0.23)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
132,215
$
145,813
$
19,446
$
267,381
International
Equity
Index
Fund
38,786
35,399
5,907
76,620
LargeCap
S&P
500
Index
Account
100,102
90,07
4
25,995
191,472
MidCap
S&P
400
Index
Fund
19,887
20,065
5,266
38,707
Principal
Government
Money
Market
Fund
1.41%
—
167,267
166,220
1,047
SmallCap
S&P
600
Index
Fund
19,941
21,458
5,940
38,635
$
310,931
$
480,07
6
$
228,774
$
613,862
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Bond
Market
Index
Account
$
5,806
$
51
$
—
$
8,748
International
Equity
Index
Fund
2,278
(2)
214
8,344
LargeCap
S&P
500
Index
Account
3,084
32
7,029
27,25
9
MidCap
S&P
400
Index
Fund
584
81
1,709
3,940
Principal
Government
Money
Market
Fund
1.41%
186
—
—
—
SmallCap
S&P
600
Index
Fund
522
29
2,155
3,147
$
12,460
$
191
$
11,107
$
51,43
8
Amounts
in
thousands.
Schedule
of
Investments
Diversified
Income
Account
December
31,
2019
See
accompanying
notes.
154
INVESTMENT
COMPANIES
-
100.03%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
10.35%
International
Equity
Index
Fund
(
a)
1,089,218
$
11,502
MidCap
S&P
400
Index
Fund
(
a)
430,655
8,691
SmallCap
S&P
600
Index
Fund
(
a)
354,143
8,768
$
28,961
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
89.68%
Bond
Market
Index
Account
(
a)
16,738,373
179,43
4
LargeCap
S&P
500
Index
Account
(
a)
3,544,848
71,571
$
251,00
5
TOTAL
INVESTMENT
COMPANIES
$
279,96
6
Total
Investments
$
279,96
6
Other
Assets
and
Liabilities
- (
0.03)%
(7
8
)
TOTAL
NET
ASSETS
-
100.00%
$
279,888
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
Portfolio
Summary (
unaudited)
Fund
Type
Percent
Fixed
Income
Funds
64.11%
Domestic
Equity
Funds
31.81%
International
Equity
Funds
4.11%
Other
Assets
and
Liabilities
(
0.03)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Bond
Market
Index
Account
$
155,094
$
49,67
8
$
34,348
$
179,43
4
International
Equity
Index
Fund
9,727
3,035
2,994
11,502
LargeCap
S&P
500
Index
Account
61,743
19,630
23,822
71,571
MidCap
S&P
400
Index
Fund
7,374
3,044
3,131
8,691
SmallCap
S&P
600
Index
Fund
7,459
3,379
3,205
8,768
$
241,397
$
78,76
6
$
67,500
$
279,96
6
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Bond
Market
Index
Account
$
4,611
$
108
$
—
$
8,902
International
Equity
Index
Fund
347
6
32
1,728
LargeCap
S&P
500
Index
Account
1,319
969
3,007
13,051
MidCap
S&P
400
Index
Fund
133
27
389
1,377
SmallCap
S&P
600
Index
Fund
119
65
491
1,070
$
6,529
$
1,175
$
3,919
$
26,128
Amounts
in
thousands.
Schedule
of
Investments
Diversified
International
Account
December
31,
2019
See
accompanying
notes.
155
INVESTMENT
COMPANIES
-
0.89%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.89%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
2
$
—
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
2,369,881
2,370
$
2,370
TOTAL
INVESTMENT
COMPANIES
$
2,370
COMMON
STOCKS
-
98.47%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
1.28%
CAE
Inc
39,500
1,046
Kawasaki
Heavy
Industries
Ltd
23,000
502
Safran
SA
12,042
1,860
$
3,408
Apparel
-
2.28%
Adidas
AG
6,267
2,040
Fila
Korea
Ltd
15,565
711
LVMH
Moet
Hennessy
Louis
Vuitton
SE
7,124
3,320
$
6,071
Automobile
Manufacturers
-
3.81%
Ferrari
NV
11,021
1,830
Isuzu
Motors
Ltd
111,400
1,317
Kia
Motors
Corp
43,826
1,674
Maruti
Suzuki
India
Ltd
12,609
1,302
Toyota
Motor
Corp
57,300
4,037
$
10,160
Automobile
Parts
&
Equipment
-
0.43%
Toyota
Industries
Corp
19,800
1,139
Banks
-
9.25%
Banco
Comercial
Portugues
SA
1,809,850
413
Banco
do
Brasil
SA
92,900
1,220
Bangkok
Bank
PCL
118,500
630
Bank
Leumi
Le-Israel
BM
230,765
1,683
BNP
Paribas
SA
40,488
2,406
BOC
Hong
Kong
Holdings
Ltd
266,500
925
Credicorp
Ltd
7,234
1,542
DBS
Group
Holdings
Ltd
84,000
1,620
DNB
ASA
105,519
1,975
Erste
Group
Bank
AG
(
d)
33,776
1,269
Grupo
Financiero
Banorte
SAB
de
CV
129,859
725
HDFC
Bank
Ltd
ADR
15,362
973
ICICI
Bank
Ltd
ADR
52,858
798
Macquarie
Group
Ltd
26,079
2,526
Mediobanca
Banca
di
Credito
Finanziario
SpA
80,424
885
OTP
Bank
Nyrt
14,852
778
Shinhan
Financial
Group
Co
Ltd
24,459
917
Toronto-Dominion
Bank/The
45,400
2,546
United
Overseas
Bank
Ltd
43,300
851
$
24,682
Beverages
-
1.61%
Carlsberg
A/S
11,546
1,723
Coca-Cola
HBC
AG
(
d)
16,963
577
Jiangsu
Yanghe
Brewery
Joint-Stock
Co
Ltd
73,199
1,163
Thai
Beverage
PCL
1,273,100
843
$
4,306
Biotechnology
-
1.09%
CSL
Ltd
14,983
2,905
Building
Materials
-
0.72%
Anhui
Conch
Cement
Co
Ltd
117,998
929
Cie
de
Saint-Gobain
24,203
992
$
1,921
Chemicals
-
1.69%
JSR
Corp
36,800
673
Koninklijke
DSM
NV
12,667
1,656
Nitto
Denko
Corp
20,600
1,159
Nutrien
Ltd
21,200
1,015
$
4,503
Commercial
Services
-
0.22%
Dai
Nippon
Printing
Co
Ltd
21,600
584
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Computers
-
1.88%
CyberArk
Software
Ltd
(
d)
7,656
$
892
Logitech
International
SA
47,766
2,263
Nomura
Research
Institute
Ltd
40,200
860
Obic
Co
Ltd
7,400
997
$
5,012
Consumer
Products
-
0.24%
Hindustan
Unilever
Ltd
24,231
653
Cosmetics
&
Personal
Care
-
0.41%
Essity
AB
33,641
1,083
Distribution
&
Wholesale
-
2.05%
Ferguson
PLC
21,248
1,934
ITOCHU
Corp
124,900
2,895
Sumitomo
Corp
42,500
631
$
5,460
Diversified
Financial
Services
-
2.46%
AerCap
Holdings
NV
(
d)
25,056
1,540
Bajaj
Finance
Ltd
13,958
828
Housing
Development
Finance
Corp
Ltd
44,854
1,517
ORIX
Corp
129,300
2,143
Tisco
Financial
Group
PCL
164,300
544
$
6,572
Electric
-
2.42%
Chubu
Electric
Power
Co
Inc
56,200
794
Enel
SpA
355,195
2,822
Iberdrola
SA
274,331
2,827
$
6,443
Electrical
Components
&
Equipment
-
0.38%
Delta
Electronics
Inc
200,000
1,012
Electronics
-
1.45%
Halma
PLC
39,095
1,095
Hoya
Corp
29,096
2,777
$
3,872
Energy
-
Alternate
Sources
-
0.62%
Vestas
Wind
Systems
A/S
16,365
1,653
Engineering
&
Construction
-
1.05%
Vinci
SA
25,154
2,802
Food
-
4.52%
Associated
British
Foods
PLC
27,957
962
Koninklijke
Ahold
Delhaize
NV
35,625
893
MEIJI
Holdings
Co
Ltd
14,700
994
Nestle
India
Ltd
3,021
626
Nestle
SA
57,870
6,265
Uni-President
Enterprises
Corp
630,000
1,562
X5
Retail
Group
NV
22,226
767
$
12,069
Food
Service
-
0.78%
Compass
Group
PLC
83,181
2,085
Forest
Products
&
Paper
-
0.60%
Mondi
PLC
68,451
1,605
Hand
&
Machine
Tools
-
0.90%
Amada
Holdings
Co
Ltd
83,800
953
Techtronic
Industries
Co
Ltd
177,000
1,445
$
2,398
Healthcare
-
Products
-
1.41%
Carl
Zeiss
Meditec
AG
5,993
762
Koninklijke
Philips
NV
26,825
1,311
Sartorius
Stedim
Biotech
4,466
741
Straumann
Holding
AG
974
956
$
3,770
Healthcare
-
Services
-
1.35%
ICON
PLC
(
d)
10,518
1,812
Lonza
Group
AG
(
d)
4,907
1,790
$
3,602
Home
Builders
-
0.91%
Persimmon
PLC
34,444
1,230
Taylor
Wimpey
PLC
467,381
1,199
$
2,429
Schedule
of
Investments
Diversified
International
Account
December
31,
2019
See
accompanying
notes.
156
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Home
Furnishings
-
1.37%
Howden
Joinery
Group
PLC
115,537
$
1,029
Sony
Corp
38,700
2,628
$
3,657
Insurance
-
8.66%
ASR
Nederland
NV
27,219
1,020
AXA
SA
92,336
2,609
BB
Seguridade
Participacoes
SA
153,631
1,440
Fairfax
Financial
Holdings
Ltd
2,800
1,315
Hannover
Rueck
SE
10,029
1,934
IRB
Brasil
Resseguros
S/A
70,200
680
Legal
&
General
Group
PLC
695,509
2,794
M&G
PLC
(
d)
222,912
700
NN
Group
NV
50,281
1,912
PICC
Property
&
Casualty
Co
Ltd
692,000
834
Prudential
PLC
111,815
2,142
Sompo
Holdings
Inc
31,900
1,253
Swiss
Life
Holding
AG
4,699
2,357
Tokio
Marine
Holdings
Inc
37,700
2,111
$
23,101
Internet
-
3.33%
Alibaba
Group
Holding
Ltd
ADR
(d)
23,072
4,894
Tencent
Holdings
Ltd
82,993
3,998
$
8,892
Investment
Companies
-
0.61%
EXOR
NV
9,174
711
Investor
AB
16,826
919
$
1,630
Machinery
-
Diversified
-
0.95%
Keyence
Corp
4,000
1,404
Miura
Co
Ltd
9,800
339
Valmet
Oyj
33,058
793
$
2,536
Metal
Fabrication
&
Hardware
-
0.22%
SKF
AB
28,599
579
Mining
-
1.54%
MMC
Norilsk
Nickel
PJSC
ADR
49,214
1,501
Newcrest
Mining
Ltd
30,534
645
Rio
Tinto
Ltd
27,753
1,963
$
4,109
Oil
&
Gas
-
4.88%
BP
PLC
324,059
2,039
Canadian
Natural
Resources
Ltd
35,400
1,145
LUKOIL
PJSC
ADR
15,701
1,564
Neste
Oyj
68,247
2,375
Parkland
Fuel
Corp
15,500
570
Petrobras
Distribuidora
SA
90,700
678
PTT
PCL
552,900
811
Reliance
Industries
Ltd
103,771
2,201
Suncor
Energy
Inc
49,900
1,635
$
13,018
Pharmaceuticals
-
5.09%
Merck
KGaA
12,116
1,428
Novartis
AG
43,951
4,162
Novo
Nordisk
A/S
40,249
2,332
Roche
Holding
AG
17,427
5,664
$
13,586
Pipelines
-
1.23%
Pembina
Pipeline
Corp
33,500
1,241
TC
Energy
Corp
38,300
2,040
$
3,281
Private
Equity
-
2.98%
3i
Group
PLC
207,541
3,020
Brookfield
Asset
Management
Inc
71,213
4,115
Intermediate
Capital
Group
PLC
38,601
823
$
7,958
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Real
Estate
-
1.40%
CK
Asset
Holdings
Ltd
213,500
$
1,541
PSP
Swiss
Property
AG
6,440
889
Vonovia
SE
24,305
1,305
$
3,735
Retail
-
4.59%
Alimentation
Couche-Tard
Inc
95,246
3,023
ANTA
Sports
Products
Ltd
206,000
1,844
Grafton
Group
PLC
41,975
483
Hennes
&
Mauritz
AB
76,194
1,554
Home
Product
Center
PCL
1,333,500
711
JD
Sports
Fashion
PLC
22,475
250
Li
Ning
Co
Ltd
404,000
1,212
Pan
Pacific
International
Holdings
Corp
67,600
1,121
Wal-Mart
de
Mexico
SAB
de
CV
495,022
1,421
WH
Smith
PLC
18,183
627
$
12,246
Semiconductors
-
6.93%
ASML
Holding
NV
9,717
2,877
NXP
Semiconductors
NV
16,005
2,037
Samsung
Electronics
Co
Ltd
105,075
5,063
SK
Hynix
Inc
29,025
2,361
Taiwan
Semiconductor
Manufacturing
Co
Ltd
555,140
6,144
$
18,482
Software
-
1.68%
Capcom
Co
Ltd
30,500
844
Dassault
Systemes
SE
8,014
1,322
Nemetschek
SE
9,246
609
SimCorp
A/S
6,915
787
Tech
Mahindra
Ltd
85,498
913
$
4,475
Telecommunications
-
4.72%
China
Mobile
Ltd
209,500
1,770
Deutsche
Telekom
AG
93,801
1,533
Nice
Ltd
ADR
(d)
9,031
1,401
Nippon
Telegraph
&
Telephone
Corp
103,000
2,603
Orange
SA
68,999
1,014
SoftBank
Group
Corp
55,100
2,392
Telefonaktiebolaget
LM
Ericsson
133,277
1,165
Telenor
ASA
39,210
703
$
12,581
Toys,
Games
&
Hobbies
-
0.66%
Nintendo
Co
Ltd
4,400
1,760
Transportation
-
1.82%
Canadian
National
Railway
Co
34,428
3,114
East
Japan
Railway
Co
19,300
1,742
$
4,856
TOTAL
COMMON
STOCKS
$
262,681
PREFERRED
STOCKS
-
0.41%
Shares
Held
Value
(000's)
Investment
Companies
-
0.41%
Itausa
-
Investimentos
Itau
SA
0.08%
317,046
$
1,110
TOTAL
PREFERRED
STOCKS
$
1,110
Total
Investments
$
266,161
Other
Assets
and
Liabilities
- 0.23
%
607
TOTAL
NET
ASSETS
-
100.00%
$
266,768
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$0
or
0.00%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
Schedule
of
Investments
Diversified
International
Account
December
31,
2019
See
accompanying
notes.
157
Portfolio
Summary (
unaudited)
Location
Percent
Japan
15.24%
United
Kingdom
9.56%
Switzerland
9.34%
Canada
8.53%
France
6.40%
China
5.57%
Netherlands
4.65%
Korea,
Republic
Of
4.03%
India
3.67%
Germany
3.61%
Taiwan
3.27%
Denmark
2.42%
Australia
2.28%
Hong
Kong
2.13%
Italy
2.08%
Sweden
1.99%
Brazil
1.92%
Israel
1.50%
Ireland
1.44%
Russian
Federation
1.44%
Thailand
1.33%
Finland
1.19%
Spain
1.06%
Norway
1.00%
Singapore
0.93%
United
States
0.89%
Mexico
0.80%
Peru
0.58%
Austria
0.48%
Hungary
0.29%
Portugal
0.15%
Other
Assets
and
Liabilities
0.23%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
1,664
$
44,150
$
43,444
$
2,370
$
1,664
$
44,150
$
43,444
$
2,370
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
35
$
—
$
—
$
—
$
35
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
Equity
Income
Account
December
31,
2019
See
accompanying
notes.
158
INVESTMENT
COMPANIES
-
1.92%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.92%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
8,588
$
9
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
14,848,183
14,848
$
14,857
TOTAL
INVESTMENT
COMPANIES
$
14,857
COMMON
STOCKS
-
97.94%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
0.34%
Boeing
Co/The
8,107
2,641
Airlines
-
1.69%
Delta
Air
Lines
Inc
223,962
13,097
Apparel
-
1.37%
VF
Corp
106,499
10,614
Automobile
Manufacturers
-
1.52%
PACCAR
Inc
148,820
11,772
Automobile
Parts
&
Equipment
-
1.68%
Magna
International
Inc
236,290
12,958
Banks
-
10.76%
First
Republic
Bank/CA
100,582
11,813
JPMorgan
Chase
&
Co
166,790
23,251
PNC
Financial
Services
Group
Inc/The
126,725
20,229
Truist
Financial
Corp
220,274
12,406
US
Bancorp
261,003
15,475
$
83,174
Beverages
-
1.61%
Coca-Cola
Co/The
224,891
12,448
Biotechnology
-
0.60%
Corteva
Inc
156,724
4,633
Chemicals
-
2.95%
Air
Products
&
Chemicals
Inc
34,518
8,112
DuPont
de
Nemours
Inc
105,582
6,778
PPG
Industries
Inc
59,595
7,955
$
22,845
Computers
-
1.70%
Apple
Inc
44,756
13,142
Diversified
Financial
Services
-
4.27%
BlackRock
Inc
31,355
15,762
Discover
Financial
Services
203,758
17,283
$
33,045
Electric
-
6.31%
Eversource
Energy
107,309
9,129
NextEra
Energy
Inc
39,463
9,556
Sempra
Energy
75,900
11,497
WEC
Energy
Group
Inc
100,443
9,264
Xcel
Energy
Inc
146,872
9,325
$
48,771
Electronics
-
0.86%
Honeywell
International
Inc
37,763
6,684
Food
-
3.94%
Hormel
Foods
Corp
335,186
15,120
Tyson
Foods
Inc
168,424
15,333
$
30,453
Healthcare
-
Products
-
3.52%
Abbott
Laboratories
149,271
12,966
Medtronic
PLC
125,747
14,266
$
27,232
Healthcare
-
Services
-
1.74%
HCA
Healthcare
Inc
90,997
13,450
Insurance
-
6.77%
Allstate
Corp/The
97,935
11,013
Chubb
Ltd
98,771
15,375
Fidelity
National
Financial
Inc
324,721
14,726
Swiss
Re
AG
ADR
(d)
400,224
11,254
$
52,368
Machinery
-
Diversified
-
1.61%
Deere
&
Co
72,034
12,481
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Media
-
2.02%
Walt
Disney
Co/The
107,796
$
15,590
Miscellaneous
Manufacturers
-
2.31%
3M
Co
30,253
5,337
Parker-Hannifin
Corp
60,689
12,491
$
17,828
Oil
&
Gas
-
6.94%
Chevron
Corp
77,192
9,302
Cimarex
Energy
Co
54,977
2,886
EOG
Resources
Inc
145,617
12,197
Exxon
Mobil
Corp
53,075
3,704
Marathon
Petroleum
Corp
227,288
13,694
Royal
Dutch
Shell
PLC
-
B
shares
ADR
197,808
11,862
$
53,645
Pharmaceuticals
-
8.58%
Becton
Dickinson
and
Co
38,586
10,494
Merck
&
Co
Inc
187,548
17,057
Novartis
AG
ADR
119,611
11,326
Pfizer
Inc
275,052
10,777
Roche
Holding
AG
ADR
410,293
16,683
$
66,337
Pipelines
-
1.70%
Enterprise
Products
Partners
LP
466,091
13,125
Private
Equity
-
1.89%
KKR
&
Co
Inc
502,012
14,644
REITs
-
4.82%
Alexandria
Real
Estate
Equities
Inc
75,364
12,177
Digital
Realty
Trust
Inc
127,417
15,257
Realty
Income
Corp
133,256
9,812
$
37,246
Retail
-
2.96%
Costco
Wholesale
Corp
49,821
14,643
Starbucks
Corp
94,096
8,273
$
22,916
Semiconductors
-
2.82%
Microchip
Technology
Inc
104,797
10,975
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
185,960
10,804
$
21,779
Software
-
3.18%
Fidelity
National
Information
Services
Inc
57,940
8,059
Microsoft
Corp
57,785
9,113
SAP
SE
ADR
55,136
7,387
$
24,559
Telecommunications
-
4.02%
BCE
Inc
314,424
14,574
Verizon
Communications
Inc
268,585
16,491
$
31,065
Toys,
Games
&
Hobbies
-
2.17%
Hasbro
Inc
158,533
16,743
Transportation
-
1.29%
Union
Pacific
Corp
55,099
9,961
TOTAL
COMMON
STOCKS
$
757,246
Total
Investments
$
772,103
Other
Assets
and
Liabilities
- 0.14
%
1,082
TOTAL
NET
ASSETS
-
100.00%
$
773,185
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$9
or
0.00%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Schedule
of
Investments
Equity
Income
Account
December
31,
2019
See
accompanying
notes.
159
Portfolio
Summary (
unaudited)
Sector
Percent
Financial
28.51%
Consumer,
Non-cyclical
19.99%
Consumer,
Cyclical
11.39%
Energy
8.64%
Technology
7.70%
Industrial
6.41%
Utilities
6.31%
Communications
6.04%
Basic
Materials
2.95%
Money
Market
Funds
1.92%
Other
Assets
and
Liabilities
0.14%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
8,817
$
133,762
$
127,731
$
14,848
$
8,817
$
133,762
$
127,731
$
14,848
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
24
2
$
—
$
—
$
—
$
24
2
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2019
See
accompanying
notes.
160
INVESTMENT
COMPANIES
-
3.80%
Shares
Held
Value
(000's)
Money
Market
Funds
-
3.80%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
2,513,784
$
2,514
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
6,645,514
6,646
$
9,160
TOTAL
INVESTMENT
COMPANIES
$
9,160
BONDS
-
27.90%
Principal
Amount
(000's)
Value
(000's)
Automobile
Asset
Backed
Securities
-
0.11%
AmeriCredit
Automobile
Receivables
2016-1
2.89
%,
01
/10/2022
$
267
$
268
Commercial
Mortgage
Backed
Securities
-
13.20%
Bank
2019-BNK19
4.03
%,
08
/15/2061
(d)
600
629
BANK
2019-BNK21
3.52
%,
10
/17/2052
2,000
2,016
CD
2017-CD3
Mortgage
Trust
3.98
%,
02
/10/2050
(d)
1,000
1,051
COMM
2014-CCRE19
Mortgage
Trust
4.75
%,
08
/10/2047
(d)
600
632
COMM
2014-UBS5
Mortgage
Trust
4.61
%,
09
/10/2047
(d)
1,000
1,033
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
2.37
%,
05
/25/2022
1,100
1,109���
2.65
%,
08
/25/2026
1,595
1,634
3.19
%,
09
/25/2027
(d)
1,330
1,406
3.30
%,
04
/25/2023
(d)
1,300
1,351
3.46
%,
08
/25/2023
(d)
1,200
1,256
3.53
%,
10
/25/2023
(d)
870
914
3.60
%,
01
/25/2028
1,330
1,443
3.65
%,
02
/25/2028
(d)
700
761
3.90
%,
04
/25/2028
1,120
1,238
4.06
%,
10
/25/2028
(d)
1,300
1,454
Ginnie
Mae
0.48
%,
06
/16/2060
(d),(e)
6,842
365
0.54
%,
10
/16/2054
(d),(e)
10,179
274
0.55
%,
04
/16/2047
(d),(e)
9,110
293
0.57
%,
12
/16/2059
(d),(e)
7,697
407
0.59
%,
02
/16/2060
(d),(e)
11,220
648
0.59
%,
03
/16/2060
(d),(e)
4,652
261
0.61
%,
11
/16/2045
(d),(e)
15,128
489
0.70
%,
11
/16/2052
(d),(e)
12,133
460
0.74
%,
02
/16/2061
(d),(e)
3,482
254
0.79
%,
09
/16/2053
(d),(e)
9,452
358
0.83
%,
02
/16/2055
(d),(e)
21,563
619
0.84
%,
02
/16/2053
(d),(e)
10,744
578
0.94
%,
03
/16/2052
(d),(e)
10,089
555
2.60
%,
05
/16/2059
668
666
2.60
%,
03
/16/2060
1,147
1,144
GS
Mortgage
Securities
Trust
2014-GC20
4.96
%,
04
/10/2047
(d)
300
309
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2011-C5
5.42
%,
08
/15/2046
(d),(f)
2,000
2,081
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2013-C16
4.96
%,
12
/15/2046
(d)
1,800
1,954
JPMDB
Commercial
Mortgage
Securities
Trust
2018-C8
4.74
%,
06
/15/2051
(d)
500
540
Wells
Fargo
Commercial
Mortgage
Trust
2014-LC16
4.46
%,
08
/15/2050
600
604
WFRBS
Commercial
Mortgage
Trust
2014-C23
4.38
%,
10
/15/2057
(d)
1,000
1,063
$
31,849
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Home
Equity
Asset
Backed
Securities
-
0.31%
ACE
Securities
Corp
Mortgage
Loan
Trust
Series
2007-D1
6.93
%,
02
/25/2038
(d),(f)
$
778
$
752
Mortgage
Backed
Securities
-
13.80%
EverBank
Mortgage
Loan
Trust
18-1
3.50
%,
02
/25/2048
(d),(f)
579
585
Fannie
Mae
Grantor
Trust
2005-T1
2.14
%,
05
/25/2035
204
203
1.00
x
1
Month
USD
LIBOR
+
0.35%
Fannie
Mae
Interest
Strip
3.50
%,
12
/25/2043
(d),(e)
1,438
223
Fannie
Mae
REMICS
2.18
%,
06
/25/2045
(e)
3,679
194
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.00%
3.00
%,
10
/25/2040
(e)
4,762
306
3.00
%,
04
/25/2042
894
912
3.00
%,
08
/25/2042
290
295
3.00
%,
02
/25/2043
420
430
3.00
%,
01
/25/2046
687
706
3.00
%,
03
/25/2046
653
664
3.00
%,
05
/25/2048
197
202
3.50
%,
01
/25/2040
(e)
2,197
134
3.50
%,
11
/25/2042
2,500
2,638
4.00
%,
12
/25/2039
(e)
1,050
62
4.00
%,
03
/25/2045
1,000
1,121
4.11
%,
03
/25/2042
(e)
1,352
245
(1.00)
x
1
Month
USD
LIBOR
+
5.90%
4.21
%,
10
/25/2046
(e)
699
149
(1.00)
x
1
Month
USD
LIBOR
+
6.00%
4.31
%,
08
/25/2043
(e)
1,711
362
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.41
%,
06
/25/2048
(e)
1,704
373
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.50
%,
04
/25/2045
(e)
2,935
566
7.00
%,
04
/25/2032
108
124
Freddie
Mac
REMICS
1.50
%,
04
/15/2028
867
854
2.20
%,
05
/15/2038
(e)
3,213
151
1.00
x
12-Month
Treasury
Avera
ge
Index
+
0.00%
2.50
%,
11
/15/2032
886
893
2.50
%,
02
/15/2043
869
875
3.00
%,
11
/15/2030
(e)
2,000
86
3.00
%,
11
/15/2035
950
955
3.00
%,
06
/15/2040
418
426
3.00
%,
10
/15/2041
852
870
3.00
%,
04
/15/2046
271
280
3.50
%,
03
/15/2029
308
326
3.50
%,
08
/15/2040
(e)
2,341
163
3.50
%,
05
/15/2043
1,011
1,033
3.50
%,
09
/15/2043
1,200
1,244
4.00
%,
05
/15/2039
4,200
4,337
Ginnie
Mae
3.50
%,
12
/20/2034
(e)
228
1
3.50
%,
05
/20/2039
73
73
3.50
%,
10
/20/2044
(e)
4,772
594
3.50
%,
11
/20/2045
930
955
4.00
%,
02
/20/2044
(e)
3,019
381
4.00
%,
04
/20/2044
(e)
1,549
182
4.00
%,
01
/20/2046
(e)
1,572
164
4.34
%,
06
/20/2046
(e)
688
131
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.38
%,
12
/20/2043
(e)
1,521
336
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
4.44
%,
08
/20/2042
(e)
1,273
215
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2019
See
accompanying
notes.
161
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Ginnie
Mae
(continued)
4.44
%,
09
/20/2047
(e)
$
780
$
143
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.51
%,
08
/16/2045
(e)
487
96
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
4.99
%,
11
/20/2045
(e)
720
150
(1.00)
x
1
Month
USD
LIBOR
+
6.75%
JP
Morgan
Mortgage
Trust
2016-4
3.50
%,
10
/25/2046
(d),(f)
676
678
JP
Morgan
Mortgage
Trust
2017-3
3.84
%,
08
/25/2047
(d),(f)
566
586
JP
Morgan
Mortgage
Trust
2018-8
4.00
%,
01
/25/2049
(d),(f)
724
734
New
Residential
Mortgage
Loan
Trust
2014-1
5.00
%,
01
/25/2054
(d),(f)
1,469
1,561
New
Residential
Mortgage
Loan
Trust
2015-2
5.53
%,
08
/25/2055
(d),(f)
1,073
1,157
Sequoia
Mortgage
Trust
2013-2
3.64
%,
02
/25/2043
(d)
702
717
Sequoia
Mortgage
Trust
2017-2
3.63
%,
02
/25/2047
(d),(f)
466
475
Sequoia
Mortgage
Trust
2017-3
3.80
%,
04
/25/2047
(d),(f)
467
476
Sequoia
Mortgage
Trust
2018-5
3.50
%,
05
/25/2048
(d),(f)
516
516
$
33,308
Other
Asset
Backed
Securities
-
0.48%
Chase
Funding
Trust
Series
2004-1
2.25
%,
12
/25/2033
97
94
1.00
x
1
Month
USD
LIBOR
+
0.46%
CNH
Equipment
Trust
2016-C
1.76
%,
09
/15/2023
500
499
Towd
Point
Mortgage
Trust
4.25
%,
10
/25/2053
(d),(f)
550
570
$
1,163
TOTAL
BONDS
$
67,340
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
69.76%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
14.38%
2.00
%,
10
/01/2031
$
671
$
667
2.50
%,
02
/01/2028
609
619
3.00
%,
02
/01/2027
215
221
3.00
%,
01
/01/2031
516
535
3.00
%,
01
/01/2033
894
924
3.00
%,
03
/01/2037
384
393
3.00
%,
08
/01/2042
684
706
3.00
%,
10
/01/2042
505
520
3.00
%,
10
/01/2042
962
992
3.00
%,
10
/01/2042
1,041
1,078
3.00
%,
05
/01/2043
679
700
3.00
%,
10
/01/2046
739
765
3.00
%,
01
/01/2047
956
990
3.50
%,
02
/01/2032
1,038
1,087
3.50
%,
04
/01/2042
1,470
1,549
3.50
%,
05
/01/2042
548
580
3.50
%,
07
/01/2042
2,003
2,113
3.50
%,
02
/01/2044
793
834
3.50
%,
08
/01/2045
823
878
3.50
%,
07
/01/2046
667
710
3.50
%,
01
/01/2047
1,819
1,930
3.50
%,
01
/01/2048
977
1,042
3.50
%,
04
/01/2049
2,009
2,120
4.00
%,
07
/01/2042
729
795
4.00
%,
01
/01/2043
922
988
4.00
%,
04
/01/2043
1,201
1,310
4.00
%,
06
/01/2043
1,155
1,237
4.00
%,
10
/01/2045
1,130
1,230
4.00
%,
08
/01/2047
1,384
1,507
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
4.00
%,
01
/01/2048
$
1,165
$
1,273
4.00
%,
06
/01/2048
1,340
1,453
4.23
%,
09
/01/2032
13
14
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.23%
4.50
%,
11
/01/2043
811
904
5.00
%,
10
/01/2025
98
105
5.00
%,
02
/01/2033
142
156
5.00
%,
06
/01/2033
170
185
5.00
%,
01
/01/2034
444
490
5.00
%,
07
/01/2035
20
23
5.00
%,
07
/01/2035
9
10
5.00
%,
07
/01/2035
89
98
5.00
%,
10
/01/2035
38
42
5.50
%,
03
/01/2033
97
108
5.50
%,
04
/01/2038
4
4
5.50
%,
05
/01/2038
35
39
6.00
%,
12
/01/2023
2
2
6.00
%,
05
/01/2031
11
12
6.00
%,
12
/01/2031
11
13
6.00
%,
09
/01/2032
6
7
6.00
%,
11
/01/2033
12
13
6.00
%,
11
/01/2033
49
55
6.00
%,
09
/01/2034
44
51
6.00
%,
02
/01/2035
38
42
6.00
%,
10
/01/2036
41
47
6.00
%,
03
/01/2037
39
43
6.00
%,
01
/01/2038
7
8
6.00
%,
01
/01/2038
75
87
6.00
%,
04
/01/2038
31
34
6.50
%,
08
/01/2021
1
1
6.50
%,
12
/01/2021
5
5
6.50
%,
04
/01/2022
8
8
6.50
%,
05
/01/2022
5
5
6.50
%,
05
/01/2023
6
6
6.50
%,
04
/01/2024
2
2
6.50
%,
04
/01/2026
2
2
6.50
%,
05
/01/2026
1
1
6.50
%,
05
/01/2026
2
3
6.50
%,
01
/01/2028
3
4
6.50
%,
03
/01/2028
2
2
6.50
%,
10
/01/2028
14
16
6.50
%,
11
/01/2028
3
3
6.50
%,
12
/01/2028
7
8
6.50
%,
03
/01/2029
3
3
6.50
%,
07
/01/2031
18
20
6.50
%,
08
/01/2031
5
5
6.50
%,
10
/01/2031
8
8
6.50
%,
10
/01/2031
7
8
6.50
%,
12
/01/2031
12
14
6.50
%,
02
/01/2032
12
13
6.50
%,
05
/01/2032
31
35
6.50
%,
04
/01/2035
6
6
7.00
%,
09
/01/2023
4
4
7.00
%,
12
/01/2023
2
2
7.00
%,
01
/01/2024
2
2
7.00
%,
09
/01/2027
3
3
7.00
%,
01
/01/2028
24
26
7.00
%,
04
/01/2028
13
14
7.00
%,
05
/01/2028
2
2
7.00
%,
10
/01/2031
5
6
7.00
%,
10
/01/2031
11
12
7.00
%,
04
/01/2032
43
49
7.50
%,
10
/01/2030
7
8
7.50
%,
02
/01/2031
8
9
7.50
%,
02
/01/2031
2
2
7.50
%,
02
/01/2031
4
4
8.00
%,
10
/01/2030
14
16
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2019
See
accompanying
notes.
162
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
8.50
%,
07
/01/2029
$
16
$
17
$
34,692
Federal
National
Mortgage
Association
(FNMA)
-
0.53%
3.00
%,
04
/01/2043
862
880
3.61
%,
12
/01/2033
81
84
1.00
x
12
Month
USD
LIBOR
+
1.61%
4.56
%,
07
/01/2034
15
16
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.19%
4.77
%,
12
/01/2032
11
12
1.00
x
12
Month
USD
LIBOR
+
1.64%
5.50
%,
05
/01/2033
14
14
6.00
%,
05
/01/2037
161
177
6.50
%,
08
/01/2025
15
17
6.50
%,
11
/01/2032
14
15
7.00
%,
08
/01/2028
14
16
7.00
%,
12
/01/2028
11
13
7.50
%,
11
/01/2029
12
12
8.00
%,
05
/01/2027
7
7
8.00
%,
09
/01/2027
1
1
8.50
%,
10
/01/2027
24
24
$
1,288
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
37.84%
2.00
%,
02
/01/2032
406
403
2.50
%,
06
/01/2027
976
990
2.50
%,
08
/01/2028
662
673
2.50
%,
12
/01/2031
787
799
2.50
%,
09
/01/2032
536
545
3.00
%,
05
/01/2029
764
791
3.00
%,
08
/01/2031
1,422
1,473
3.00
%,
10
/01/2036
584
603
3.00
%,
10
/01/2042
1,416
1,462
3.00
%,
11
/01/2042
1,541
1,591
3.00
%,
12
/01/2042
1,379
1,424
3.00
%,
02
/01/2043
1,009
1,044
3.00
%,
06
/01/2043
1,722
1,777
3.00
%,
08
/01/2043
1,197
1,235
3.00
%,
09
/01/2046
1,420
1,467
3.00
%,
10
/01/2046
978
1,006
3.00
%,
11
/01/2046
1,479
1,530
3.00
%,
01
/01/2047
951
984
3.00
%,
01
/01/2047
918
950
3.00
%,
12
/01/2049
1,440
1,463
3.50
%,
08
/01/2031
726
762
3.50
%,
02
/01/2033
1,142
1,198
3.50
%,
09
/01/2033
1,598
1,676
3.50
%,
06
/01/2039
598
624
3.50
%,
02
/01/2042
1,076
1,153
3.50
%,
09
/01/2042
1,780
1,895
3.50
%,
11
/01/2042
1,188
1,264
3.50
%,
12
/01/2042
1,296
1,382
3.50
%,
02
/01/2043
464
497
3.50
%,
09
/01/2044
1,830
1,961
3.50
%,
10
/01/2044
583
625
3.50
%,
11
/01/2044
559
599
3.50
%,
03
/01/2045
567
604
3.50
%,
03
/01/2045
1,349
1,427
3.50
%,
06
/01/2045
935
1,002
3.50
%,
09
/01/2045
827
881
3.50
%,
10
/01/2045
642
689
3.50
%,
11
/01/2045
638
680
3.50
%,
01
/01/2046
644
690
3.50
%,
03
/01/2046
457
490
3.50
%,
04
/01/2046
987
1,058
3.50
%,
03
/01/2047
970
1,040
3.50
%,
10
/01/2047
710
761
3.50
%,
11
/01/2048
1,954
2,085
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.50
%,
05
/01/2049
$
928
$
986
4.00
%,
01
/01/2034
483
515
4.00
%,
10
/01/2037
875
927
4.00
%,
02
/01/2041
1,305
1,406
4.00
%,
02
/01/2042
780
844
4.00
%,
08
/01/2043
451
491
4.00
%,
10
/01/2043
366
391
4.00
%,
04
/01/2044
301
328
4.00
%,
08
/01/2044
500
546
4.00
%,
10
/01/2044
1,506
1,611
4.00
%,
11
/01/2044
486
533
4.00
%,
12
/01/2044
807
885
4.00
%,
02
/01/2045
838
920
4.00
%,
08
/01/2045
781
857
4.00
%,
09
/01/2045
1,783
1,957
4.00
%,
05
/01/2046
1,466
1,595
4.00
%,
07
/01/2046
673
739
4.00
%,
08
/01/2046
1,537
1,652
4.00
%,
07
/01/2047
1,003
1,100
4.00
%,
10
/01/2047
892
970
4.00
%,
12
/01/2047
812
889
4.00
%,
03
/01/2049
1,018
1,109
4.00
%,
07
/01/2049
1,967
2,128
4.00
%,
07
/01/2049
1,934
2,091
4.50%,
08/01/2039
1,549
1,706
4.50
%,
03
/01/2042
390
434
4.50
%,
09
/01/2043
1,600
1,784
4.50
%,
10
/01/2043
855
954
4.50
%,
11
/01/2043
958
1,068
4.50
%,
09
/01/2045
695
771
4.50
%,
10
/01/2045
897
1,000
4.50
%,
11
/01/2045
1,323
1,466
4.50
%,
08
/01/2048
972
1,075
4.50
%,
09
/01/2048
1,754
1,949
4.50
%,
12
/01/2048
1,324
1,450
5.00
%,
05
/01/2033
1,055
1,167
5.00
%,
04
/01/2035
102
113
5.00
%,
04
/01/2035
80
89
5.00
%,
07
/01/2035
5
5
5.00
%,
02
/01/2038
345
384
5.00
%,
02
/01/2040
1,211
1,359
5.00
%,
07
/01/2041
958
1,075
5.50
%,
05
/01/2024
6
6
5.50
%,
06
/01/2033
52
58
5.50
%,
02
/01/2037
3
4
5.50
%,
03
/01/2038
92
103
6.00
%,
06
/01/2022
8
9
6.00
%,
11
/01/2028
12
13
6.00
%,
12
/01/2031
5
6
6.00
%,
01
/01/2033
44
50
6.00
%,
07
/01/2037
121
138
6.00
%,
11
/01/2037
3
3
6.00
%,
12
/01/2037
8
8
6.00
%,
03
/01/2038
54
62
6.50
%,
11
/01/2023
15
16
6.50
%,
05
/01/2024
5
5
6.50
%,
09
/01/2024
7
7
6.50
%,
07
/01/2025
9
10
6.50
%,
02
/01/2026
3
3
6.50
%,
03
/01/2026
1
1
6.50
%,
05
/01/2026
2
3
6.50
%,
06
/01/2026
1
1
6.50
%,
07
/01/2028
9
10
6.50
%,
09
/01/2028
15
17
6.50
%,
02
/01/2029
2
2
6.50
%,
03
/01/2029
5
5
6.50
%,
04
/01/2029
4
5
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2019
See
accompanying
notes.
163
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
6.50
%,
06
/01/2031
$
10
$
11
6.50
%,
06
/01/2031
9
10
6.50
%,
01
/01/2032
4
4
6.50
%,
04
/01/2032
12
14
6.50
%,
08
/01/2032
8
9
6.50
%,
02
/01/2033
9
9
6.50
%,
12
/01/2036
32
37
6.50
%,
07
/01/2037
25
29
6.50
%,
07
/01/2037
14
15
6.50
%,
02
/01/2038
26
30
7.00
%,
10
/01/2029
12
14
7.00
%,
05
/01/2031
4
4
7.00
%,
11
/01/2031
19
21
8.00
%,
06
/01/2030
2
2
$
91,326
Government
National
Mortgage
Association
(GNMA)
-
8.81%
3.00
%,
11
/15/2042
818
843
3.00
%,
12
/15/2042
1,532
1,580
3.00
%,
02
/15/2043
1,346
1,395
3.00
%,
05
/15/2043
1,848
1,912
3.00
%,
12
/20/2046
1,170
1,208
3.00
%,
07
/20/2047
2,248
2,319
3.50
%,
01
/15/2043
1,117
1,187
3.50
%,
05
/15/2043
1,255
1,332
3.50
%,
06
/20/2043
744
788
3.50
%,
04
/20/2045
707
740
3.50
%,
06
/20/2046
102
106
3.50
%,
02
/20/2047
771
816
3.50
%,
04
/20/2047
1,833
1,907
3.50
%,
05
/20/2047
913
963
3.50
%,
11
/20/2047
704
735
4.00
%,
08
/15/2041
916
990
4.00
%,
07
/20/2047
853
894
4.50
%,
07
/15/2040
468
511
5.00
%,
09
/15/2033
5
5
5.00
%,
02
/15/2034
267
295
5.00
%,
09
/15/2039
34
38
5.50
%,
11
/15/2033
22
23
5.50
%,
05
/20/2035
114
127
5.50
%,
03
/15/2039
85
91
6.00
%,
04
/20/2026
4
4
6.00
%,
05
/20/2026
3
3
6.00
%,
03
/20/2028
2
2
6.00
%,
06
/20/2028
12
14
6.00
%,
07
/20/2028
6
7
6.00
%,
02
/20/2029
6
7
6.00
%,
03
/20/2029
13
15
6.00
%,
07
/20/2029
14
15
6.00
%,
07
/20/2033
102
117
6.50
%,
12
/20/2025
7
8
6.50
%,
02
/20/2026
5
5
6.50
%,
03
/20/2031
9
11
6.50
%,
04
/20/2031
10
12
7.00
%,
01
/15/2028
2
3
7.00
%,
01
/15/2028
4
4
7.00
%,
01
/15/2028
1
1
7.00
%,
01
/15/2028
1
1
7.00
%,
01
/15/2028
1
1
7.00
%,
03
/15/2028
54
55
7.00
%,
05
/15/2028
5
5
7.00
%,
01
/15/2029
11
12
7.00
%,
03
/15/2029
4
4
7.00
%,
05
/15/2031
7
8
7.00
%,
09
/15/2031
29
33
7.00
%,
06
/15/2032
84
92
7.50
%,
04
/15/2023
5
5
7.50
%,
09
/15/2023
1
1
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
7.50
%,
09
/15/2023
$
1
$
1
7.50
%,
10
/15/2023
3
3
7.50
%,
11
/15/2023
2
2
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
$
21,261
U.S.
Treasury
-
7.25%
1.13
%,
03
/31/2020
2,200
2,197
1.25
%,
01
/31/2020
2,400
2,399
1.25
%,
02
/29/2020
(g)
2,300
2,298
2.13
%,
12
/31/2022
2,400
2,437
3.13
%,
05
/15/2021
2,500
2,551
4.50
%,
02
/15/2036
1,000
1,328
5.25
%,
11
/15/2028
1,000
1,274
6.25
%,
08
/15/2023
2,600
3,020
$
17,504
U.S.
Treasury
Strip
-
0.95%
0.00
%,
05
/15/2020
(g),(h),(
i
)
2,300
2,28
7
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
168,35
8
Total
Investments
$
244,85
8
Other
Assets
and
Liabilities
- (
1.46)%
(3,52
6
)
TOTAL
NET
ASSETS
-
100.00%
$
241,332
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$2,514
or
1.04%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
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.
(e)
Security
is
an
Interest
Only
Strip.
(f)
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
$10,171
or
4.21%
of
net
assets.
(g)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(h)
Non-income
producing
security
(
i
)
Security
is
a
Principal
Only
Strip.
Portfolio
Summary (
unaudited)
Sector
Percent
Mortgage
Securities
88.56%
Government
8.20%
Money
Market
Funds
3.80%
Asset
Backed
Securities
0.90%
Other
Assets
and
Liabilities
(
1.46)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2019
See
accompanying
notes.
164
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
1,278
$
71,138
$
65,770
$
6,646
$
1,278
$
71,138
$
65,770
$
6,646
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
9
3
$
—
$
—
$
—
$
9
3
$
—
$
—
$
—
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
10
Year
Note;
March
2020
Short
44
$
5,651
$
54
US
Long
Bond;
March
2020
Short
6
935
21
US
Ultra
Bond;
March
2020
Short
19
3,451
110
Total
$
185
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
International
Emerging
Markets
Account
December
31,
2019
See
accompanying
notes.
165
INVESTMENT
COMPANIES
-
0.71%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.71%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
637,471
$
637
TOTAL
INVESTMENT
COMPANIES
$
637
COMMON
STOCKS
-
96.48%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
0.24%
Hanwha
Aerospace
Co
Ltd
(
c)
7,062
214
Agriculture
-
0.88%
KT&G
Corp
9,714
786
Apparel
-
0.49%
Fila
Korea
Ltd
9,559
437
Automobile
Manufacturers
-
2.11%
Hyundai
Motor
Co
9,254
964
Kia
Motors
Corp
24,324
929
$
1,893
Banks
-
11.88%
Axis
Bank
Ltd
73,462
777
Banco
do
Brasil
SA
62,000
814
Banco
Santander
Brasil
SA
33,100
407
Bangkok
Bank
PCL
58,900
313
Bank
Rakyat
Indonesia
Persero
Tbk
PT
2,142,100
678
Credicorp
Ltd
4,688
999
First
Abu
Dhabi
Bank
PJSC
172,932
715
Grupo
Financiero
Banorte
SAB
de
CV
129,500
723
HDFC
Bank
Ltd
42,262
754
ICICI
Bank
Ltd
110,763
840
OTP
Bank
Nyrt
24,121
1,263
PT
Bank
Central
Asia
Tbk
390,900
940
Sberbank
of
Russia
PJSC
ADR
34,216
564
Shinhan
Financial
Group
Co
Ltd
23,195
870
$
10,657
Beverages
-
1.40%
Kweichow
Moutai
Co
Ltd
1,996
340
Thai
Beverage
PCL
1,386,800
918
$
1,258
Building
Materials
-
2.33%
Anhui
Conch
Cement
Co
Ltd
104,595
824
China
Lesso
Group
Holdings
Ltd
165,000
212
Huaxin
Cement
Co
Ltd
154,875
588
UltraTech
Cement
Ltd
8,276
469
$
2,093
Chemicals
-
0.57%
UPL
Ltd
62,689
513
Coal
-
0.29%
Exxaro
Resources
Ltd
27,878
261
Commercial
Services
-
0.90%
New
Oriental
Education
&
Technology
Group
Inc
ADR
(c)
6,655
807
Computers
-
0.44%
Wipro
Ltd
114,670
395
Cosmetics
&
Personal
Care
-
0.31%
Colgate-Palmolive
India
Ltd
13,610
279
Diversified
Financial
Services
-
4.84%
Bajaj
Finance
Ltd
12,246
727
CTBC
Financial
Holding
Co
Ltd
790,000
591
Housing
Development
Finance
Corp
Ltd
52,992
1,792
Muthoot
Finance
Ltd
43,693
466
Tisco
Financial
Group
PCL
230,900
764
$
4,340
Electrical
Components
&
Equipment
-
0.48%
Delta
Electronics
Inc
85,000
430
Electronics
-
0.56%
Taiwan
Union
Technology
Corp
101,000
500
Engineering
&
Construction
-
1.20%
Daelim
Industrial
Co
Ltd
3,522
275
Larsen
&
Toubro
Ltd
43,849
798
$
1,073
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Food
-
2.33%
Indofood
Sukses
Makmur
Tbk
PT
499,600
$
285
Nestle
India
Ltd
1,520
315
Uni-President
Enterprises
Corp
340,000
843
X5
Retail
Group
NV
18,859
651
$
2,094
Forest
Products
&
Paper
-
0.31%
Mondi
PLC
11,975
281
Gas
-
0.75%
ENN
Energy
Holdings
Ltd
61,500
672
Insurance
-
6.67%
AIA
Group
Ltd
44,600
469
BB
Seguridade
Participacoes
SA
41,300
387
IRB
Brasil
Resseguros
S/A
95,700
927
PICC
Property
&
Casualty
Co
Ltd
986,000
1,188
Ping
An
Insurance
Group
Co
of
China
Ltd
191,000
2,260
Powszechny
Zaklad
Ubezpieczen
SA
70,965
750
$
5,981
Internet
-
18.51%
AfreecaTV
Co
Ltd
4,514
269
Alibaba
Group
Holding
Ltd
ADR
(c)
29,161
6,185
JD.com
Inc
ADR
(c)
33,289
1,173
Just
Dial
Ltd
(
c)
53,405
427
Meituan
Dianping
(
c)
56,000
732
MercadoLibre
Inc
(
c)
763
436
Naspers
Ltd
8,325
1,362
Tencent
Holdings
Ltd
98,700
4,755
Vipshop
Holdings
Ltd
ADR
(c)
89,602
1,270
$
16,609
Iron
&
Steel
-
2.11%
Eregli
Demir
ve
Celik
Fabrikalari
TAS
224,981
342
Kumba
Iron
Ore
Ltd
9,566
285
Severstal
PJSC
41,664
630
Vale
SA
48,421
641
$
1,898
Mining
-
1.42%
Impala
Platinum
Holdings
Ltd
(
c)
26,202
268
MMC
Norilsk
Nickel
PJSC
ADR
33,000
1,006
$
1,274
Miscellaneous
Manufacturers
-
1.30%
Largan
Precision
Co
Ltd
7,000
1,169
Oil
&
Gas
-
8.77%
China
Petroleum
&
Chemical
Corp
1,098,000
661
CNOOC
Ltd
461,000
767
Gazprom
PJSC
ADR
151,364
1,249
LUKOIL
PJSC
ADR
20,139
2,006
Petrobras
Distribuidora
SA
117,200
876
Petroleo
Brasileiro
SA
39,000
310
PTT
Exploration
&
Production
PCL
87,200
362
Reliance
Industries
Ltd
77,079
1,635
$
7,866
Pharmaceuticals
-
0.52%
China
National
Accord
Medicines
Corp
Ltd
72,197
470
Pipelines
-
0.60%
Petronet
LNG
Ltd
143,661
539
Real
Estate
-
2.49%
Shimao
Property
Holdings
Ltd
198,000
767
Sunac
China
Holdings
Ltd
246,000
1,469
$
2,236
Retail
-
3.89%
ANTA
Sports
Products
Ltd
107,000
958
Home
Product
Center
PCL
1,034,400
552
Lojas
Renner
SA
46,550
650
Wal-Mart
de
Mexico
SAB
de
CV
463,700
1,331
$
3,491
Schedule
of
Investments
International
Emerging
Markets
Account
December
31,
2019
See
accompanying
notes.
166
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Semiconductors
-
13.51%
Realtek
Semiconductor
Corp
(
c)
39,000
$
307
Samsung
Electronics
Co
Ltd
96,940
4,671
SK
Hynix
Inc
20,979
1,706
Taiwan
Semiconductor
Manufacturing
Co
Ltd
491,164
5,436
$
12,120
Software
-
1.31%
NetEase
Inc
ADR
3,832
1,175
Telecommunications
-
1.57%
Accton
Technology
Corp
60,000
337
China
Mobile
Ltd
102,000
862
KT
Corp
9,162
214
$
1,413
Transportation
-
0.77%
Hyundai
Glovis
Co
Ltd
5,624
694
Water
-
0.73%
Guangdong
Investment
Ltd
312,000
653
TOTAL
COMMON
STOCKS
$
86,571
PREFERRED
STOCKS
-
2.27%
Shares
Held
Value
(000's)
Banks
-
1.13%
Banco
Bradesco
SA
0.19%
112,460
$
1,011
Oil
&
Gas
-
1.14%
Petroleo
Brasileiro
SA
0.02%
136,800
1,027
TOTAL
PREFERRED
STOCKS
$
2,038
Total
Investments
$
89,246
Other
Assets
and
Liabilities
- 0.54
%
483
TOTAL
NET
ASSETS
-
100.00%
$
89,729
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Current
yield
shown
is
as
of
period
end.
(c)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Location
Percent
China
29.54%
Korea,
Republic
Of
13.42%
India
11.96%
Taiwan
10.71%
Brazil
7.85%
Russian
Federation
6.80%
Thailand
3.24%
Hong
Kong
3.06%
South
Africa
2.43%
Mexico
2.28%
Indonesia
2.12%
Hungary
1.41%
Peru
1.11%
Poland
0.84%
United
Arab
Emirates
0.80%
United
States
0.71%
Argentina
0.49%
Turkey
0.38%
United
Kingdom
0.31%
Other
Assets
and
Liabilities
0.54%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
2,711
$
36,692
$
38,766
$
637
$
2,711
$
36,692
$
38,766
$
637
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
24
$
—
$
—
$
—
$
24
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
167
INVESTMENT
COMPANIES
-
1.30%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.21%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
1,023,382
$
1,023
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
5,082,603
5,083
$
6,106
Principal
Exchange-Traded
Funds
-
0.09%
Principal
Millennials
Index
ETF
(
c),(d)
4,789
199
Principal
Price
Setters
Index
ETF
(
c),(d)
1,616
66
Principal
Sustainable
Momentum
Index
ETF
(
c)
749
21
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
c),(d)
5,280
166
$
452
TOTAL
INVESTMENT
COMPANIES
$
6,558
COMMON
STOCKS
-
97.81%
Shares
Held
Value
(000's)
Advertising
-
0.01%
Interpublic
Group
of
Cos
Inc/The
306
7
Omnicom
Group
Inc
401
33
Trade
Desk
Inc/
The
(
e)
132
34
$
74
Aerospace
&
Defense
-
2.91%
Boeing
Co/The
31,073
10,122
General
Dynamics
Corp
182
32
HEICO
Corp
153
17
HEICO
Corp
-
Class
A
279
25
L3Harris
Technologies
Inc
18,612
3,683
Lockheed
Martin
Corp
832
324
Northrop
Grumman
Corp
562
193
Raytheon
Co
658
145
Spirit
AeroSystems
Holdings
Inc
317
23
TransDigm
Group
Inc
128
72
$
14,636
Agriculture
-
0.20%
Altria
Group
Inc
3,740
187
Philip
Morris
International
Inc
9,501
808
$
995
Airlines
-
0.02%
Alaska
Air
Group
Inc
221
15
Delta
Air
Lines
Inc
763
45
Southwest
Airlines
Co
955
51
United
Airlines
Holdings
Inc
(
e)
194
17
$
128
Apparel
-
0.52%
Carter's
Inc
103
11
Columbia
Sportswear
Co
116
12
Hanesbrands
Inc
985
15
NIKE
Inc
24,208
2,452
Skechers
U.S.A.
Inc
(
e)
235
10
VF
Corp
988
99
$
2,599
Automobile
Manufacturers
-
0.03%
Tesla
Inc
(
e)
319
133
Automobile
Parts
&
Equipment
-
0.66%
Allison
Transmission
Holdings
Inc
423
20
Aptiv
PLC
34,316
3,259
WABCO
Holdings
Inc
(
e)
153
21
$
3,300
Banks
-
0.01%
CIT
Group
Inc
81
4
Comerica
Inc
67
5
Prosperity
Bancshares
Inc
48
4
Signature
Bank/New
York
NY
98
13
SVB
Financial
Group
(
e)
20
5
Synovus
Financial
Corp
102
4
Western
Alliance
Bancorp
76
4
$
39
Beverages
-
1.39%
Brown-Forman
Corp
-
A
Shares
182
12
Brown-Forman
Corp
-
B
Shares
86,940
5,877
Coca-Cola
Co/The
8,674
480
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Beverages
(continued)
Monster
Beverage
Corp
(
e)
1,209
$
77
PepsiCo
Inc
3,881
530
$
6,976
Biotechnology
-
2.29%
Alexion
Pharmaceuticals
Inc
(
e)
9,129
987
Alnylam
Pharmaceuticals
Inc
(
e)
272
31
Amgen
Inc
1,696
409
Biogen
Inc
(
e)
194
58
BioMarin
Pharmaceutical
Inc
(
e)
548
46
Exact
Sciences
Corp
(
e)
427
39
Exelixis
Inc
(
e)
426
8
Gilead
Sciences
Inc
561
36
Illumina
Inc
(
e)
17,652
5,855
Incyte
Corp
(
e)
545
48
Ionis
Pharmaceuticals
Inc
(
e)
391
24
Moderna
Inc
(
e)
640
13
Regeneron
Pharmaceuticals
Inc
(
e)
50
19
Sage
Therapeutics
Inc
(
e)
176
13
Seattle
Genetics
Inc
(
e)
352
40
Vertex
Pharmaceuticals
Inc
(
e)
17,645
3,864
$
11,490
Building
Materials
-
0.03%
Armstrong
World
Industries
Inc
194
18
Fortune
Brands
Home
&
Security
Inc
202
13
Lennox
International
Inc
110
27
Martin
Marietta
Materials
Inc
68
19
Vulcan
Materials
Co
383
55
$
132
Chemicals
-
1.71%
Air
Products
&
Chemicals
Inc
70
16
Axalta
Coating
Systems
Ltd
(
e)
313
10
CF
Industries
Holdings
Inc
127
6
Ecolab
Inc
573
111
NewMarket
Corp
29
14
PPG
Industries
Inc
401
54
RPM
International
Inc
119
9
Sherwin-Williams
Co/The
14,333
8,363
$
8,583
Commercial
Services
-
5.16%
Automatic
Data
Processing
Inc
989
169
Avalara
Inc
(
e)
179
13
Booz
Allen
Hamilton
Holding
Corp
499
35
Bright
Horizons
Family
Solutions
Inc
(
e)
205
31
Cintas
Corp
24,920
6,706
CoreLogic
Inc/United
States
155
7
CoStar
Group
Inc
(
e)
2,774
1,660
Equifax
Inc
337
47
Euronet
Worldwide
Inc
(
e)
190
30
FleetCor
Technologies
Inc
(
e)
280
81
Gartner
Inc
(
e)
295
45
Global
Payments
Inc
33,538
6,123
Grand
Canyon
Education
Inc
(
e)
53
5
H&R
Block
Inc
276
6
IHS
Markit
Ltd
(
e)
830
63
MarketAxess
Holdings
Inc
115
44
Moody's
Corp
373
89
Morningstar
Inc
78
12
Paylocity
Holding
Corp
(
e)
136
16
PayPal
Holdings
Inc
(
e)
94,571
10,229
Robert
Half
International
Inc
408
26
Rollins
Inc
522
17
S&P
Global
Inc
826
225
Sabre
Corp
412
9
Service
Corp
International/US
288
13
ServiceMaster
Global
Holdings
Inc
(
e)
148
6
Square
Inc
(
e)
1,076
67
TransUnion
627
54
Verisk
Analytics
Inc
521
78
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
168
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
WEX
Inc
(
e)
152
$
32
$
25,938
Computers
-
3.85%
Accenture
PLC
-
Class
A
2,436
513
Apple
Inc
40,681
11,946
Cognizant
Technology
Solutions
Corp
1,528
95
Dell
Technologies
Inc
(
e)
424
22
EPAM
Systems
Inc
(
e)
184
39
Fortinet
Inc
(
e)
493
53
Genpact
Ltd
147,165
6,205
HP
Inc
5,783
119
International
Business
Machines
Corp
2,278
305
NCR
Corp
(
e)
505
18
NetApp
Inc
819
51
$
19,366
Consumer
Products
-
0.03%
Avery
Dennison
Corp
264
35
Church
&
Dwight
Co
Inc
779
55
Clorox
Co/The
328
50
$
140
Cosmetics
&
Personal
Care
-
1.44%
Estee
Lauder
Cos
Inc/The
34,819
7,191
Procter
&
Gamble
Co/The
326
41
$
7,232
Distribution
&
Wholesale
-
0.04%
Copart
Inc
(
e)
660
60
Fastenal
Co
1,673
62
LKQ
Corp
(
e)
286
10
Pool
Corp
138
29
WW
Grainger
Inc
145
49
$
210
Diversified
Financial
Services
-
5.41%
Alliance
Data
Systems
Corp
60
7
American
Express
Co
1,341
167
Ameriprise
Financial
Inc
75
13
Cboe
Global
Markets
Inc
112
13
Charles
Schwab
Corp/The
31,884
1,517
Credit
Acceptance
Corp
(
e)
30
13
Discover
Financial
Services
367
31
Evercore
Inc
-
Class
A
70
5
Intercontinental
Exchange
Inc
15,610
1,445
Lazard
Ltd
173
7
LPL
Financial
Holdings
Inc
271
25
Mastercard
Inc
3,072
917
Raymond
James
Financial
Inc
121
11
SEI
Investments
Co
211
14
Synchrony
Financial
613
22
T
Rowe
Price
Group
Inc
216
26
TD
Ameritrade
Holding
Corp
18,179
904
Visa
Inc
116,079
21,811
Western
Union
Co/The
499
13
XP
Inc
(
e)
6,154
237
$
27,198
Electric
-
0.94%
NextEra
Energy
Inc
12,592
3,049
Sempra
Energy
11,029
1,671
$
4,720
Electrical
Components
&
Equipment
-
0.02%
AMETEK
Inc
603
60
Emerson
Electric
Co
138
11
Hubbell
Inc
121
18
Universal
Display
Corp
146
30
$
119
Electronics
-
4.39%
Agilent
Technologies
Inc
149
13
Allegion
PLC
256
32
Amphenol
Corp
57,986
6,276
FLIR
Systems
Inc
117
6
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Electronics
(continued)
Fortive
Corp
83,420
$
6,372
Honeywell
International
Inc
7,332
1,298
Jabil
Inc
257
11
Keysight
Technologies
Inc
(
e)
611
63
Mettler-Toledo
International
Inc
(
e)
80
63
National
Instruments
Corp
119
5
PerkinElmer
Inc
121
12
Roper
Technologies
Inc
22,096
7,827
Sensata
Technologies
Holding
PLC
(
e)
261
14
Trimble
Inc
(
e)
264
11
Waters
Corp
(
e)
217
51
Woodward
Inc
172
20
$
22,074
Entertainment
-
0.01%
Live
Nation
Entertainment
Inc
(
e)
438
31
Six
Flags
Entertainment
Corp
91
4
Vail
Resorts
Inc
125
30
$
65
Environmental
Control
-
0.03%
Republic
Services
Inc
106
9
Waste
Management
Inc
1,243
142
$
151
Food
-
0.07%
Campbell
Soup
Co
346
17
Hershey
Co/The
405
60
Kellogg
Co
322
22
Lamb
Weston
Holdings
Inc
138
12
McCormick
&
Co
Inc/MD
249
42
Pilgrim's
Pride
Corp
(
e)
154
5
Post
Holdings
Inc
(
e)
112
12
Sprouts
Farmers
Market
Inc
(
e)
357
7
Sysco
Corp
1,972
169
TreeHouse
Foods
Inc
(
e)
82
4
$
350
Hand
&
Machine
Tools
-
0.00%
Lincoln
Electric
Holdings
Inc
207
20
Healthcare
-
Products
-
8.06%
Abbott
Laboratories
1,697
147
Align
Technology
Inc
(
e)
249
69
Avantor
Inc
(
e)
78,469
1,424
Baxter
International
Inc
515
43
Bio-Techne
Corp
124
27
Boston
Scientific
Corp
(
e)
3,157
143
Bruker
Corp
375
19
Cantel
Medical
Corp
112
8
Cooper
Cos
Inc/The
37
12
Danaher
Corp
39,189
6,015
Edwards
Lifesciences
Corp
(
e)
24,147
5,634
Henry
Schein
Inc
(
e)
143
9
Hill-Rom
Holdings
Inc
146
16
Hologic
Inc
(
e)
746
39
ICU
Medical
Inc
(
e)
33
6
IDEXX
Laboratories
Inc
(
e)
273
71
Intuitive
Surgical
Inc
(
e)
20,947
12,383
Masimo
Corp
(
e)
163
26
Penumbra
Inc
(
e)
104
17
ResMed
Inc
457
71
STERIS
PLC
51
8
Stryker
Corp
24,452
5,134
Teleflex
Inc
151
57
Thermo
Fisher
Scientific
Inc
27,943
9,077
Varian
Medical
Systems
Inc
(
e)
308
44
West
Pharmaceutical
Services
Inc
197
30
$
40,529
Healthcare
-
Services
-
2.41%
Anthem
Inc
448
135
Centene
Corp
(
e)
25,778
1,621
Charles
River
Laboratories
International
Inc
(
e)
177
27
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
169
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Healthcare
-
Services
(continued)
Chemed
Corp
58
$
25
Encompass
Health
Corp
210
15
HCA
Healthcare
Inc
28,050
4,146
Humana
Inc
3,812
1,397
IQVIA
Holdings
Inc
(
e)
260
40
Laboratory
Corp
of
America
Holdings
(
e)
52
9
Molina
Healthcare
Inc
(
e)
184
25
UnitedHealth
Group
Inc
15,798
4,645
WellCare
Health
Plans
Inc
(
e)
153
50
$
12,135
Home
Builders
-
0.01%
Lennar
Corp
-
A
Shares
423
23
Lennar
Corp
-
B
Shares
129
6
NVR
Inc
(
e)
11
42
$
71
Home
Furnishings
-
0.00%
Dolby
Laboratories
Inc
109
8
Tempur
Sealy
International
Inc
(
e)
178
15
$
23
Housewares
-
0.01%
Scotts
Miracle-Gro
Co/The
143
15
Toro
Co/The
379
30
$
45
Insurance
-
0.10%
Alleghany
Corp
(
e)
5
4
Aon
PLC
531
111
Arch
Capital
Group
Ltd
(
e)
244
10
Arthur
J
Gallagher
&
Co
138
13
Athene
Holding
Ltd
(
e)
234
11
Axis
Capital
Holdings
Ltd
65
4
Brown
&
Brown
Inc
97
4
Erie
Indemnity
Co
63
10
Everest
Re
Group
Ltd
47
13
Kemper
Corp
70
5
Markel
Corp
(
e)
3
3
Marsh
&
McLennan
Cos
Inc
1,557
173
Primerica
Inc
96
13
Progressive
Corp/The
895
65
RenaissanceRe
Holdings
Ltd
62
12
Travelers
Cos
Inc/The
311
43
Voya
Financial
Inc
74
5
$
499
Internet
-
20.75%
Alibaba
Group
Holding
Ltd
ADR
(e)
51,770
10,980
Alphabet
Inc
-
A
Shares
(
e)
10,037
13,443
Alphabet
Inc
-
C
Shares
(
e)
10,737
14,356
Amazon.com
Inc
(
e)
15,464
28,576
Anaplan
Inc
(
e)
293
15
Booking
Holdings
Inc
(
e)
4,198
8,621
CDW
Corp/DE
485
69
eBay
Inc
2,558
92
Expedia
Group
Inc
394
43
F5
Networks
Inc
(
e)
205
29
Facebook
Inc
(
e)
61,257
12,573
FireEye
Inc
(
e)
715
12
GoDaddy
Inc
(
e)
591
40
IAC/
InterActiveCorp
(
e)
8,418
2,097
Match
Group
Inc
(
d),(e)
219
18
Netflix
Inc
(
e)
10,290
3,330
Okta
Inc
(
e)
4,781
551
Palo
Alto
Networks
Inc
(
e)
302
70
Proofpoint
Inc
(
e)
196
23
RingCentral
Inc
(
e)
237
40
Spotify
Technology
SA
(
e)
16,601
2,483
Tencent
Holdings
Ltd
ADR
112,363
5,395
Tencent
Music
Entertainment
Group
ADR
(e)
76,275
895
TripAdvisor
Inc
397
12
Twitter
Inc
(
e)
2,380
76
Uber
Technologies
Inc
(
e)
13,831
411
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Internet
(continued)
VeriSign
Inc
(
e)
249
$
48
$
104,298
Leisure
Products
&
Services
-
0.01%
Norwegian
Cruise
Line
Holdings
Ltd
(
e)
212
12
Planet
Fitness
Inc
(
e)
303
23
Polaris
Inc
188
19
$
54
Lodging
-
0.63%
Choice
Hotels
International
Inc
(
d)
103
11
Hilton
Worldwide
Holdings
Inc
18,141
2,011
Las
Vegas
Sands
Corp
5,396
373
Marriott
International
Inc/MD
907
137
MGM
Resorts
International
258
9
Wyndham
Hotels
&
Resorts
Inc
161
10
Wynn
Resorts
Ltd
4,407
612
$
3,163
Machinery
-
Construction
&
Mining
-
0.75%
BWX
Technologies
Inc
60,279
3,742
Caterpillar
Inc
96
14
$
3,756
Machinery
-
Diversified
-
0.04%
Deere
&
Co
78
14
Dover
Corp
235
27
Graco
Inc
590
31
IDEX
Corp
142
24
Nordson
Corp
184
30
Rockwell
Automation
Inc
374
76
$
202
Media
-
0.15%
Altice
USA
Inc
(
e)
1,026
28
AMC
Networks
Inc
(
e)
214
8
Cable
One
Inc
15
22
Charter
Communications
Inc
(
e)
213
103
Comcast
Corp
-
Class
A
10,204
459
Fox
Corp
-
A
Shares
221
8
Fox
Corp
-
B
Shares
176
6
New
York
Times
Co/The
179
6
Nexstar
Media
Group
Inc
132
16
Sinclair
Broadcast
Group
Inc
286
10
Sirius
XM
Holdings
Inc
4,770
34
ViacomCBS
Inc
971
41
$
741
Mining
-
0.00%
Southern
Copper
Corp
278
12
Miscellaneous
Manufacturers
-
0.12%
3M
Co
973
172
AO
Smith
Corp
149
7
AptarGroup
Inc
108
12
Carlisle
Cos
Inc
177
29
Donaldson
Co
Inc
438
25
Hexcel
Corp
295
22
Illinois
Tool
Works
Inc
1,146
206
Ingersoll-Rand
PLC
897
119
$
592
Office
&
Business
Equipment
-
0.01%
Zebra
Technologies
Corp
(
e)
183
47
Oil
&
Gas
-
0.28%
Cabot
Oil
&
Gas
Corp
905
16
Concho
Resources
Inc
15,448
1,353
Parsley
Energy
Inc
637
12
Pioneer
Natural
Resources
Co
233
35
$
1,416
Packaging
&
Containers
-
0.02%
Ball
Corp
1,047
68
Berry
Global
Group
Inc
(
e)
232
11
Crown
Holdings
Inc
(
e)
266
19
$
98
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
170
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pharmaceuticals
-
5.70%
AbbVie
Inc
4,549
$
403
Agios
Pharmaceuticals
Inc
(
e)
21
1
AmerisourceBergen
Corp
519
44
Becton
Dickinson
and
Co
15,264
4,151
Bristol-Myers
Squibb
Co
5,292
340
Cigna
Corp
23,302
4,765
DexCom
Inc
(
e)
33,913
7,418
Eli
Lilly
&
Co
1,957
257
Herbalife
Nutrition
Ltd
(
e)
116
5
Horizon
Therapeutics
Plc
(
e)
155
6
Jazz
Pharmaceuticals
PLC
(
e)
182
27
Johnson
&
Johnson
1,686
246
McKesson
Corp
94
13
Merck
&
Co
Inc
8,214
747
Neurocrine
Biosciences
Inc
(
e)
276
30
PRA
Health
Sciences
Inc
(
e)
227
25
Sarepta
Therapeutics
Inc
(
e)
215
28
Zoetis
Inc
76,667
10,147
$
28,653
Pipelines
-
0.01%
Cheniere
Energy
Inc
(
e)
425
26
Equitrans
Midstream
Corp
204
3
ONEOK
Inc
401
30
$
59
Real
Estate
-
0.01%
CBRE
Group
Inc
(
e)
399
25
Jones
Lang
LaSalle
Inc
30
5
$
30
REITs
-
1.96%
American
Homes
4
Rent
452
12
American
Tower
Corp
1,567
360
Americold
Realty
Trust
625
22
CoreSite
Realty
Corp
108
12
Crown
Castle
International
Corp
1,605
228
Equinix
Inc
190
111
Equity
LifeStyle
Properties
Inc
553
39
Extra
Space
Storage
Inc
321
34
Lamar
Advertising
Co
273
24
Public
Storage
255
54
SBA
Communications
Corp
36,680
8,840
Simon
Property
Group
Inc
619
92
Sun
Communities
Inc
80
12
UDR
Inc
79
4
$
9,844
Retail
-
4.52%
Advance
Auto
Parts
Inc
76
12
AutoZone
Inc
(
e)
78
93
Best
Buy
Co
Inc
198
17
Burlington
Stores
Inc
(
e)
218
50
CarMax
Inc
(
e)
275
24
Carvana
Co
(
e)
6,870
632
Casey's
General
Stores
Inc
47
8
Chipotle
Mexican
Grill
Inc
(
e)
82
69
Costco
Wholesale
Corp
17,770
5,223
Darden
Restaurants
Inc
414
45
Dollar
General
Corp
21,722
3,388
Dollar
Tree
Inc
(
e)
426
40
Domino's
Pizza
Inc
138
41
Dunkin'
Brands
Group
Inc
293
22
Home
Depot
Inc/The
1,971
430
Lowe's
Cos
Inc
2,483
297
Lululemon
Athletica
Inc
(
e)
6,319
1,464
McDonald's
Corp
422
83
O'Reilly
Automotive
Inc
(
e)
250
110
Restaurant
Brands
International
Inc
16,965
1,082
Ross
Stores
Inc
23,937
2,787
Starbucks
Corp
3,786
333
Target
Corp
159
20
TJX
Cos
Inc/The
101,440
6,194
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Retail
(continued)
Tractor
Supply
Co
403
$
38
Ulta
Beauty
Inc
(
e)
182
46
Wendy's
Co/The
752
17
Williams-Sonoma
Inc
108
8
Yum
China
Holdings
Inc
984
47
Yum!
Brands
Inc
925
93
$
22,713
Semiconductors
-
2.79%
Advanced
Micro
Devices
Inc
(
e)
39,396
1,807
Analog
Devices
Inc
112
13
Applied
Materials
Inc
1,138
70
ASML
Holding
NV
-
NY
Reg
Shares
10,584
3,132
Broadcom
Inc
879
278
Entegris
Inc
484
24
KLA
Corp
516
92
Lam
Research
Corp
808
236
Marvell
Technology
Group
Ltd
73,665
1,957
Maxim
Integrated
Products
Inc
388
24
Microchip
Technology
Inc
232
24
NVIDIA
Corp
1,327
312
NXP
Semiconductors
NV
42,484
5,407
QUALCOMM
Inc
2,767
244
Skyworks
Solutions
Inc
77
9
Teradyne
Inc
599
41
Texas
Instruments
Inc
2,133
274
Xilinx
Inc
820
80
$
14,024
Shipbuilding
-
0.01%
Huntington
Ingalls
Industries
Inc
111
28
Software
-
17.50%
Activision
Blizzard
Inc
106
6
Adobe
Inc
(
e)
14,734
4,859
Akamai
Technologies
Inc
(
e)
515
45
Alteryx
Inc
(
d),(e)
170
17
ANSYS
Inc
(
e)
279
72
Aspen
Technology
Inc
(
e)
250
30
Atlassian
Corp
PLC
(
e)
2,529
304
Autodesk
Inc
(
e)
43,806
8,037
Black
Knight
Inc
(
e)
519
34
Broadridge
Financial
Solutions
Inc
395
49
Cadence
Design
Systems
Inc
(
e)
937
65
CDK
Global
Inc
465
25
Ceridian
HCM
Holding
Inc
(
e)
261
18
Cerner
Corp
1,036
76
Citrix
Systems
Inc
395
44
Coupa
Software
Inc
(
e)
205
30
DocuSign
Inc
(
e)
503
37
Dropbox
Inc
-
A
Shares
(
e)
856
15
Electronic
Arts
Inc
(
e)
65,512
7,043
Fair
Isaac
Corp
(
e)
102
38
Fidelity
National
Information
Services
Inc
11,397
1,585
Fiserv
Inc
(
e)
1,283
148
Guidewire
Software
Inc
(
e)
273
30
Intuit
Inc
44,339
11,613
Jack
Henry
&
Associates
Inc
242
35
Manhattan
Associates
Inc
(
e)
273
22
Microsoft
Corp
197,825
31,199
MSCI
Inc
254
66
Oracle
Corp
8,443
447
Paychex
Inc
1,050
89
Paycom
Software
Inc
(
e)
2,362
626
Pegasystems
Inc
158
13
PTC
Inc
(
e)
351
26
RealPage
Inc
(
e)
304
16
salesforce.com
Inc
(
e)
63,544
10,336
ServiceNow
Inc
(
e)
9,157
2,585
Slack
Technologies
Inc
(
d),(e)
28,717
646
SolarWinds
Corp
(
e)
312
6
Splunk
Inc
(
e)
19,967
2,990
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
171
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
SS&C
Technologies
Holdings
Inc
693
$
43
Stripe
Inc
-
Class
B
(
e),(f),(g)
5,754
90
Synopsys
Inc
(
e)
497
69
Take-Two
Interactive
Software
Inc
(
e)
190
23
Teradata
Corp
(
e)
483
13
Tyler
Technologies
Inc
(
e)
133
40
Veeva
Systems
Inc
(
e)
413
58
VMware
Inc
(
e)
16,025
2,432
Workday
Inc
(
e)
10,831
1,781
Zoom
Video
Communications
Inc
(
e)
1,200
82
Zynga
Inc
(
e)
1,173
7
$
87,960
Telecommunications
-
0.18%
Arista
Networks
Inc
(
e)
197
40
Cisco
Systems
Inc
15,519
744
Motorola
Solutions
Inc
402
65
Switch
Inc
536
8
T-Mobile
US
Inc
(
e)
544
43
$
900
Toys,
Games
&
Hobbies
-
0.01%
Hasbro
Inc
419
44
Transportation
-
0.60%
CSX
Corp
1,187
86
Expeditors
International
of
Washington
Inc
428
33
JB
Hunt
Transport
Services
Inc
9,709
1,133
Landstar
System
Inc
138
16
Norfolk
Southern
Corp
6,064
1,178
Old
Dominion
Freight
Line
Inc
104
20
Union
Pacific
Corp
1,611
291
United
Parcel
Service
Inc
2,333
273
$
3,030
TOTAL
COMMON
STOCKS
$
491,634
CONVERTIBLE
PREFERRED
STOCKS
-
0.13%
Shares
Held
Value
(000's)
Internet
-
0.13%
Airbnb
Inc
-
Series
D
0.00
%
(
e),(f),(g),(h)
3,936
$
491
Airbnb
Inc
-
Series
E
0.00%
(e),(f),(g),(h)
1,119
140
$
631
TOTAL
CONVERTIBLE
PREFERRED
STOCKS
$
631
PREFERRED
STOCKS
-
0.23%
Shares
Held
Value
(000's)
Automobile
Manufacturers
-
0.13%
Rivian
Automotive
Series
D
0.00
%
(
e),(f),(g)
61,168
657
Software
-
0.08%
Magic
Leap
Inc
-
Series
C
0.00
%
(
e),(f),(g),(h)
5,653
130
Magic
Leap
Inc
-
Series
D
0.00
%
(
e),(f),(g),(h)
1,903
47
UIPATH
Inc
Ser
D-1
0.00
%
(
e),(f),(g)
4,548
179
UIPATH
Inc
Ser
D-2
0.00
%
(
e),(f),(g)
764
30
$
386
Telecommunications
-
0.02%
Aurora
Innovation
0.00
%
(
e),(f),(g)
12,920
119
TOTAL
PREFERRED
STOCKS
$
1,162
Total
Investments
$
499,985
Other
Assets
and
Liabilities
- 0.53
%
2,668
TOTAL
NET
ASSETS
-
100.00%
$
502,653
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,023
or
0.20%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(e)
Non-income
producing
security
(f)
Restricted
Security.
Please
see
Restricted
Security
Sub-Schedule
for
more
information.
(g)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$1,883
or
0.37%
of
net
assets.
(h)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
Portfolio
Summary (
unaudited)
Sector
Percent
Consumer,
Non-cyclical
26.75%
Technology
24.23%
Communications
21.24%
Industrial
8.92%
Financial
7.49%
Consumer,
Cyclical
6.60%
Basic
Materials
1.71%
Money
Market
Funds
1.21%
Utilities
0.94%
Energy
0.29%
Domestic
Equity
Funds
0.09%
Other
Assets
and
Liabilities
0.53%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
172
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
6,022
$
119,927
$
120,866
$
5,083
Principal
Millennials
Index
ETF
150
—
—
199
Principal
Price
Setters
Index
ETF
50
—
—
66
Principal
Sustainable
Momentum
Index
ETF
18
—
—
21
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
132
—
—
166
$
6,372
$
119,927
$
120,86
6
$
5,535
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
146
$
—
$
—
$
—
Principal
Millennials
Index
ETF
2
—
—
49
Principal
Price
Setters
Index
ETF
1
—
—
16
Principal
Sustainable
Momentum
Index
ETF
—
—
—
3
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
3
—
—
3
4
$
152
$
—
$
—
$
10
2
Amounts
in
thousands.
Restricted
Securities
Security
Name
Acquisition
Date
Cost
Value
Percent
of
Net
Assets
Airbnb
Inc
-
Series
D
0.00%
04/16/2014
$
16
0
$
491
0.10%
Airbnb
Inc - Series
E
0.00%
07/14/2015
104
140
0.03%
Aurora
Innovation
0.00%
03/01/2019
119
119
0.02%
Magic
Leap
Inc
-
Series
C
0.00%
01/20/2016
130
130
0.03%
Magic
Leap
Inc
-
Series
D
0.00%
10/12/2017
5
1
47
0.00%
Rivian
Automotive
Series
D
0.00%
12/23/2019
657
657
0.13%
Stripe
Inc
-
Class
B
12/17/2019
90
90
0.02%
UIPATH
Inc
Ser
D-1
0.00%
04/26/2019
179
179
0.04%
UIPATH
Inc
Ser
D-2
0.00%
04/26/2019
30
30
0.01%
Total
$
1,883
0.38%
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini
;
March
2020
Long
20
$
3,231
$
11
Total
$
11
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2019
See
accompanying
notes.
173
INVESTMENT
COMPANIES
-
1.47%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0.18%
iShares
Core
S&P
500
ETF
15,016
$
4,854
Money
Market
Funds
-
1.29%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
1
—
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
34,952,064
34,952
$
34,952
TOTAL
INVESTMENT
COMPANIES
$
39,806
COMMON
STOCKS
-
98.66%
Shares
Held
Value
(000's)
Advertising
-
0.10%
Interpublic
Group
of
Cos
Inc/The
38,728
895
Omnicom
Group
Inc
21,747
1,762
$
2,657
Aerospace
&
Defense
-
2.33%
Arconic
Inc
38,691
1,191
Boeing
Co/The
53,403
17,397
General
Dynamics
Corp
23,406
4,128
L3Harris
Technologies
Inc
22,081
4,369
Lockheed
Martin
Corp
24,793
9,654
Northrop
Grumman
Corp
15,656
5,385
Raytheon
Co
27,815
6,112
TransDigm
Group
Inc
4,974
2,785
United
Technologies
Corp
81,037
12,136
$
63,157
Agriculture
-
0.93%
Altria
Group
Inc
186,596
9,313
Archer-Daniels-Midland
Co
55,604
2,577
Philip
Morris
International
Inc
155,407
13,224
$
25,114
Airlines
-
0.36%
Alaska
Air
Group
Inc
12,303
833
American
Airlines
Group
Inc
38,943
1,117
Delta
Air
Lines
Inc
57,495
3,362
Southwest
Airlines
Co
47,311
2,554
United
Airlines
Holdings
Inc
(
d)
21,738
1,915
$
9,781
Apparel
-
0.73%
Capri
Holdings
Ltd
(
d)
15,145
578
Hanesbrands
Inc
36,127
536
NIKE
Inc
124,460
12,609
PVH
Corp
7,405
779
Ralph
Lauren
Corp
4,968
582
Tapestry
Inc
27,563
743
Under
Armour
Inc
-
Class
A
(
d)
18,798
406
Under
Armour
Inc
-
Class
C
(
d)
19,435
373
VF
Corp
32,710
3,260
$
19,866
Automobile
Manufacturers
-
0.50%
Cummins
Inc
15,303
2,739
Ford
Motor
Co
388,956
3,617
General
Motors
Co
125,587
4,596
PACCAR
Inc
34,547
2,733
$
13,685
Automobile
Parts
&
Equipment
-
0.12%
Aptiv
PLC
25,499
2,421
BorgWarner
Inc
20,625
895
$
3,316
Banks
-
6.37%
Bank
of
America
Corp
808,626
28,480
Bank
of
New
York
Mellon
Corp/The
83,824
4,219
Citigroup
Inc
218,068
17,421
Citizens
Financial
Group
Inc
43,423
1,763
Comerica
Inc
14,399
1,033
Fifth
Third
Bancorp
70,886
2,179
First
Republic
Bank/CA
16,832
1,977
Goldman
Sachs
Group
Inc/The
31,831
7,319
Huntington
Bancshares
Inc/OH
103,157
1,556
JPMorgan
Chase
&
Co
313,287
43,672
KeyCorp
98,383
1,991
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Banks
(continued)
M&T
Bank
Corp
13,181
$
2,238
Morgan
Stanley
122,872
6,281
Northern
Trust
Corp
21,164
2,249
PNC
Financial
Services
Group
Inc/The
43,768
6,987
Regions
Financial
Corp
96,354
1,653
State
Street
Corp
36,322
2,873
SVB
Financial
Group
(
d)
5,150
1,293
Truist
Financial
Corp
133,950
7,544
US
Bancorp
141,966
8,417
Wells
Fargo
&
Co
384,428
20,682
Zions
Bancorp
NA
17,028
884
$
172,711
Beverages
-
1.78%
Brown-Forman
Corp
-
B
Shares
18,198
1,230
Coca-Cola
Co/The
385,158
21,318
Constellation
Brands
Inc
16,730
3,175
Molson
Coors
Beverage
Co
18,763
1,011
Monster
Beverage
Corp
(
d)
38,133
2,423
PepsiCo
Inc
139,281
19,036
$
48,193
Biotechnology
-
1.75%
Alexion
Pharmaceuticals
Inc
(
d)
22,104
2,390
Amgen
Inc
59,351
14,308
Biogen
Inc
(
d)
18,024
5,348
Corteva
Inc
74,753
2,210
Gilead
Sciences
Inc
126,367
8,211
Illumina
Inc
(
d)
14,682
4,871
Incyte
Corp
(
d)
17,857
1,559
Regeneron
Pharmaceuticals
Inc
(
d)
7,978
2,996
Vertex
Pharmaceuticals
Inc
(
d)
25,685
5,624
$
47,517
Building
Materials
-
0.33%
Fortune
Brands
Home
&
Security
Inc
13,899
908
Johnson
Controls
International
plc
77,054
3,137
Martin
Marietta
Materials
Inc
6,242
1,745
Masco
Corp
28,379
1,362
Vulcan
Materials
Co
13,220
1,904
$
9,056
Chemicals
-
1.79%
Air
Products
&
Chemicals
Inc
22,017
5,174
Albemarle
Corp
10,591
774
Celanese
Corp
12,074
1,486
CF
Industries
Holdings
Inc
21,720
1,037
Dow
Inc
74,063
4,053
DuPont
de
Nemours
Inc
73,996
4,750
Eastman
Chemical
Co
13,583
1,077
Ecolab
Inc
25,048
4,834
FMC
Corp
12,947
1,292
International
Flavors
&
Fragrances
Inc
10,665
1,376
Linde
PLC
53,657
11,424
LyondellBasell
Industries
NV
25,644
2,423
Mosaic
Co/The
34,925
756
PPG
Industries
Inc
23,618
3,153
Sherwin-Williams
Co/The
8,205
4,788
$
48,397
Commercial
Services
-
2.03%
Automatic
Data
Processing
Inc
43,219
7,369
Cintas
Corp
8,373
2,253
Equifax
Inc
12,094
1,695
FleetCor
Technologies
Inc
(
d)
8,668
2,494
Gartner
Inc
(
d)
8,935
1,377
Global
Payments
Inc
30,019
5,480
H&R
Block
Inc
19,503
458
IHS
Markit
Ltd
(
d)
40,052
3,018
MarketAxess
Holdings
Inc
3,788
1,436
Moody's
Corp
16,217
3,850
Nielsen
Holdings
PLC
35,539
721
PayPal
Holdings
Inc
(
d)
117,283
12,686
Quanta
Services
Inc
14,212
579
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2019
See
accompanying
notes.
174
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
Robert
Half
International
Inc
11,742
$
742
Rollins
Inc
14,063
466
S&P
Global
Inc
24,412
6,666
United
Rentals
Inc
(
d)
7,507
1,252
Verisk
Analytics
Inc
16,368
2,444
$
54,986
Computers
-
6.08%
Accenture
PLC
-
Class
A
63,432
13,357
Apple
Inc
417,185
122,506
Cognizant
Technology
Solutions
Corp
54,695
3,392
DXC
Technology
Co
25,572
961
Fortinet
Inc
(
d)
14,179
1,514
Hewlett
Packard
Enterprise
Co
129,252
2,050
HP
Inc
148,019
3,042
International
Business
Machines
Corp
88,461
11,857
Leidos
Holdings
Inc
13,292
1,301
NetApp
Inc
22,798
1,419
Seagate
Technology
PLC
23,093
1,374
Western
Digital
Corp
29,706
1,886
$
164,659
Consumer
Products
-
0.35%
Avery
Dennison
Corp
8,341
1,091
Church
&
Dwight
Co
Inc
24,513
1,724
Clorox
Co/The
12,535
1,925
Kimberly-Clark
Corp
34,242
4,710
$
9,450
Cosmetics
&
Personal
Care
-
1.55%
Colgate-Palmolive
Co
85,605
5,893
Coty
Inc
29,523
332
Estee
Lauder
Cos
Inc/The
22,229
4,591
Procter
&
Gamble
Co/
The
(
e)
249,093
31,112
$
41,928
Distribution
&
Wholesale
-
0.24%
Copart
Inc
(
d)
20,432
1,858
Fastenal
Co
57,286
2,117
LKQ
Corp
(
d)
30,612
1,093
WW
Grainger
Inc
4,359
1,475
$
6,543
Diversified
Financial
Services
-
4.16%
Alliance
Data
Systems
Corp
4,094
459
American
Express
Co
67,022
8,344
Ameriprise
Financial
Inc
12,655
2,108
BlackRock
Inc
11,779
5,921
Capital
One
Financial
Corp
46,520
4,787
Cboe
Global
Markets
Inc
11,074
1,329
Charles
Schwab
Corp/The
114,197
5,431
CME
Group
Inc
35,794
7,185
Discover
Financial
Services
31,312
2,656
E*TRADE
Financial
Corp
22,565
1,024
Franklin
Resources
Inc
27,861
724
Intercontinental
Exchange
Inc
55,622
5,148
Invesco
Ltd
37,178
668
Mastercard
Inc
88,672
26,477
Nasdaq
Inc
11,461
1,228
Raymond
James
Financial
Inc
12,332
1,103
Synchrony
Financial
59,382
2,138
T
Rowe
Price
Group
Inc
23,341
2,844
Visa
Inc
170,987
32,128
Western
Union
Co/The
41,879
1,122
$
112,824
Electric
-
3.11%
AES
Corp/VA
66,312
1,319
Alliant
Energy
Corp
24,007
1,314
Ameren
Corp
24,574
1,887
American
Electric
Power
Co
Inc
49,337
4,663
CenterPoint
Energy
Inc
50,165
1,368
CMS
Energy
Corp
28,351
1,781
Consolidated
Edison
Inc
33,204
3,004
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Electric
(continued)
Dominion
Energy
Inc
82,213
$
6,809
DTE
Energy
Co
19,188
2,492
Duke
Energy
Corp
72,818
6,642
Edison
International
35,818
2,701
Entergy
Corp
19,887
2,382
Evergy
Inc
22,765
1,482
Eversource
Energy
32,338
2,751
Exelon
Corp
97,098
4,427
FirstEnergy
Corp
53,968
2,623
NextEra
Energy
Inc
48,820
11,822
NRG
Energy
Inc
25,132
999
Pinnacle
West
Capital
Corp
11,228
1,010
PPL
Corp
72,219
2,591
Public
Service
Enterprise
Group
Inc
50,513
2,983
Sempra
Energy
28,156
4,265
Southern
Co/The
104,751
6,673
WEC
Energy
Group
Inc
31,507
2,906
Xcel
Energy
Inc
52,378
3,325
$
84,219
Electrical
Components
&
Equipment
-
0.26%
AMETEK
Inc
22,832
2,277
Emerson
Electric
Co
60,846
4,640
$
6,917
Electronics
-
1.38%
Agilent
Technologies
Inc
30,910
2,637
Allegion
PLC
9,281
1,156
Amphenol
Corp
29,614
3,205
FLIR
Systems
Inc
13,401
698
Fortive
Corp
29,516
2,255
Garmin
Ltd
14,431
1,408
Honeywell
International
Inc
71,372
12,633
Keysight
Technologies
Inc
(
d)
18,736
1,923
Mettler-Toledo
International
Inc
(
d)
2,433
1,930
PerkinElmer
Inc
11,097
1,077
Roper
Technologies
Inc
10,393
3,681
TE
Connectivity
Ltd
33,410
3,202
Waters
Corp
(
d)
6,436
1,504
$
37,309
Engineering
&
Construction
-
0.04%
Jacobs
Engineering
Group
Inc
13,534
1,216
Entertainment
-
0.04%
Live
Nation
Entertainment
Inc
(
d)
14,075
1,006
Environmental
Control
-
0.26%
Pentair
PLC
16,789
770
Republic
Services
Inc
21,040
1,886
Waste
Management
Inc
38,984
4,443
$
7,099
Food
-
1.28%
Campbell
Soup
Co
16,873
834
Conagra
Brands
Inc
48,608
1,664
General
Mills
Inc
60,369
3,234
Hershey
Co/The
14,814
2,177
Hormel
Foods
Corp
27,774
1,253
JM
Smucker
Co/The
11,392
1,186
Kellogg
Co
24,871
1,720
Kraft
Heinz
Co/The
62,207
1,999
Kroger
Co/The
80,107
2,322
Lamb
Weston
Holdings
Inc
14,589
1,255
McCormick
&
Co
Inc/MD
12,342
2,095
Mondelez
International
Inc
143,815
7,921
Sysco
Corp
50,965
4,360
Tyson
Foods
Inc
29,484
2,684
$
34,704
Forest
Products
&
Paper
-
0.07%
International
Paper
Co
39,166
1,804
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2019
See
accompanying
notes.
175
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Gas
-
0.09%
Atmos
Energy
Corp
11,920
$
1,333
NiSource
Inc
37,311
1,039
$
2,372
Hand
&
Machine
Tools
-
0.13%
Snap-on
Inc
5,479
928
Stanley
Black
&
Decker
Inc
15,183
2,517
$
3,445
Healthcare
-
Products
-
3.77%
Abbott
Laboratories
176,534
15,334
ABIOMED
Inc
(
d)
4,511
770
Align
Technology
Inc
(
d)
7,164
1,999
Baxter
International
Inc
50,996
4,264
Boston
Scientific
Corp
(
d)
139,220
6,296
Cooper
Cos
Inc/The
4,951
1,591
Danaher
Corp
63,852
9,800
DENTSPLY
SIRONA
Inc
22,217
1,257
Edwards
Lifesciences
Corp
(
d)
20,832
4,860
Henry
Schein
Inc
(
d)
14,657
978
Hologic
Inc
(
d)
26,783
1,398
IDEXX
Laboratories
Inc
(
d)
8,568
2,237
Intuitive
Surgical
Inc
(
d)
11,544
6,824
Medtronic
PLC
133,882
15,189
ResMed
Inc
14,361
2,225
STERIS
PLC
8,468
1,291
Stryker
Corp
32,161
6,752
Teleflex
Inc
4,624
1,741
Thermo
Fisher
Scientific
Inc
40,052
13,012
Varian
Medical
Systems
Inc
(
d)
9,079
1,289
Zimmer
Biomet
Holdings
Inc
20,544
3,075
$
102,182
Healthcare
-
Services
-
2.07%
Anthem
Inc
25,328
7,650
Centene
Corp
(
d)
41,331
2,598
DaVita
Inc
(
d)
8,958
672
HCA
Healthcare
Inc
26,426
3,906
Humana
Inc
13,228
4,848
IQVIA
Holdings
Inc
(
d)
18,025
2,785
Laboratory
Corp
of
America
Holdings
(
d)
9,699
1,641
Quest
Diagnostics
Inc
13,454
1,437
UnitedHealth
Group
Inc
94,631
27,820
Universal
Health
Services
Inc
8,024
1,151
WellCare
Health
Plans
Inc
(
d)
5,024
1,659
$
56,167
Home
Builders
-
0.21%
DR
Horton
Inc
33,493
1,767
Lennar
Corp
-
A
Shares
27,957
1,560
NVR
Inc
(
d)
346
1,318
PulteGroup
Inc
25,446
987
$
5,632
Home
Furnishings
-
0.06%
Leggett
&
Platt
Inc
13,145
668
Whirlpool
Corp
6,313
932
$
1,600
Housewares
-
0.03%
Newell
Brands
Inc
38,061
732
Insurance
-
3.91%
Aflac
Inc
73,318
3,878
Allstate
Corp/The
32,360
3,639
American
International
Group
Inc
86,894
4,460
Aon
PLC
23,387
4,871
Arthur
J
Gallagher
&
Co
18,630
1,774
Assurant
Inc
6,057
794
Berkshire
Hathaway
Inc
-
Class
B
(
d)
195,377
44,253
Chubb
Ltd
45,269
7,047
Cincinnati
Financial
Corp
15,176
1,596
Everest
Re
Group
Ltd
4,073
1,128
Globe
Life
Inc
9,951
1,047
Hartford
Financial
Services
Group
Inc/The
36,000
2,188
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
(continued)
Lincoln
National
Corp
19,812
$
1,169
Loews
Corp
25,552
1,341
Marsh
&
McLennan
Cos
Inc
50,408
5,616
MetLife
Inc
78,080
3,980
Principal
Financial
Group
Inc
25,795
1,419
Progressive
Corp/The
58,395
4,227
Prudential
Financial
Inc
40,153
3,764
Travelers
Cos
Inc/The
25,782
3,531
Unum
Group
20,604
601
Willis
Towers
Watson
PLC
12,842
2,593
WR
Berkley
Corp
14,493
1,001
$
105,917
Internet
-
8.93%
Alphabet
Inc
-
A
Shares
(
d)
29,928
40,085
Alphabet
Inc
-
C
Shares
(
d)
29,855
39,917
Amazon.com
Inc
(
d)
41,598
76,867
Booking
Holdings
Inc
(
d)
4,181
8,587
CDW
Corp/DE
14,352
2,050
eBay
Inc
76,384
2,758
Expedia
Group
Inc
13,958
1,509
F5
Networks
Inc
(
d)
6,072
848
Facebook
Inc
(
d)
240,367
49,335
Netflix
Inc
(
d)
43,774
14,164
NortonLifeLock
Inc
57,272
1,462
Twitter
Inc
(
d)
77,545
2,485
VeriSign
Inc
(
d)
10,321
1,989
$
242,056
Iron
&
Steel
-
0.06%
Nucor
Corp
30,286
1,705
Leisure
Products
&
Services
-
0.23%
Carnival
Corp
40,009
2,034
Harley-Davidson
Inc
15,412
573
Norwegian
Cruise
Line
Holdings
Ltd
(
d)
21,253
1,241
Royal
Caribbean
Cruises
Ltd
17,169
2,292
$
6,140
Lodging
-
0.47%
Hilton
Worldwide
Holdings
Inc
28,185
3,126
Las
Vegas
Sands
Corp
33,754
2,330
Marriott
International
Inc/MD
27,105
4,105
MGM
Resorts
International
51,440
1,711
Wynn
Resorts
Ltd
9,650
1,340
$
12,612
Machinery
-
Construction
&
Mining
-
0.30%
Caterpillar
Inc
55,203
8,152
Machinery
-
Diversified
-
0.53%
Deere
&
Co
31,450
5,449
Dover
Corp
14,509
1,672
Flowserve
Corp
13,070
651
IDEX
Corp
7,597
1,307
Rockwell
Automation
Inc
11,542
2,339
Westinghouse
Air
Brake
Technologies
Corp
18,188
1,415
Xylem
Inc/NY
17,987
1,417
$
14,250
Media
-
2.26%
Charter
Communications
Inc
(
d)
15,661
7,597
Comcast
Corp
-
Class
A
453,455
20,392
Discovery
Inc
-
A
Shares
(
d)
15,795
517
Discovery
Inc
-
C
Shares
(
d)
33,504
1,022
DISH
Network
Corp
(
d)
25,469
903
Fox
Corp
-
A
Shares
35,410
1,313
Fox
Corp
-
B
Shares
16,217
590
News
Corp
-
A
Shares
38,810
549
News
Corp
-
B
Shares
12,163
176
ViacomCBS
Inc
53,977
2,265
Walt
Disney
Co/The
180,030
26,038
$
61,362
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2019
See
accompanying
notes.
176
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Mining
-
0.20%
Freeport-McMoRan
Inc
144,923
$
1,901
Newmont
Goldcorp
Corp
81,888
3,558
$
5,459
Miscellaneous
Manufacturers
-
1.35%
3M
Co
57,438
10,133
AO
Smith
Corp
13,692
652
Eaton
Corp
PLC
41,294
3,911
General
Electric
Co
872,345
9,736
Illinois
Tool
Works
Inc
29,215
5,248
Ingersoll-Rand
PLC
23,932
3,181
Parker-Hannifin
Corp
12,831
2,641
Textron
Inc
22,801
1,017
$
36,519
Office
&
Business
Equipment
-
0.08%
Xerox
Holdings
Corp
18,572
685
Zebra
Technologies
Corp
(
d)
5,385
1,375
$
2,060
Oil
&
Gas
-
3.50%
Apache
Corp
37,560
961
Cabot
Oil
&
Gas
Corp
40,747
709
Chevron
Corp
188,870
22,761
Cimarex
Energy
Co
10,169
534
Concho
Resources
Inc
20,079
1,758
ConocoPhillips
109,601
7,127
Devon
Energy
Corp
38,657
1,004
Diamondback
Energy
Inc
16,096
1,495
EOG
Resources
Inc
58,108
4,867
Exxon
Mobil
Corp
422,621
29,491
Helmerich
&
Payne
Inc
10,834
492
Hess
Corp
25,869
1,728
HollyFrontier
Corp
14,832
752
Marathon
Oil
Corp
79,902
1,085
Marathon
Petroleum
Corp
64,858
3,908
Noble
Energy
Inc
47,774
1,187
Occidental
Petroleum
Corp
89,228
3,677
Phillips
66
44,386
4,945
Pioneer
Natural
Resources
Co
16,546
2,505
Valero
Energy
Corp
41,019
3,841
$
94,827
Oil
&
Gas
Services
-
0.41%
Baker
Hughes
Co
64,911
1,664
Halliburton
Co
87,678
2,145
National
Oilwell
Varco
Inc
38,538
965
Schlumberger
Ltd
138,278
5,559
TechnipFMC
PLC
41,975
900
$
11,233
Packaging
&
Containers
-
0.25%
Amcor
PLC
161,826
1,754
Ball
Corp
32,677
2,113
Packaging
Corp
of
America
9,454
1,059
Sealed
Air
Corp
15,433
615
Westrock
Co
25,759
1,105
$
6,646
Pharmaceuticals
-
6.15%
AbbVie
Inc
147,710
13,078
Allergan
PLC
32,789
6,268
AmerisourceBergen
Corp
15,015
1,277
Becton
Dickinson
and
Co
27,014
7,347
Bristol-Myers
Squibb
Co
234,146
15,030
Cardinal
Health
Inc
29,216
1,478
Cigna
Corp
37,300
7,627
CVS
Health
Corp
129,945
9,654
Eli
Lilly
&
Co
84,395
11,092
Johnson
&
Johnson
262,883
38,347
McKesson
Corp
17,998
2,490
Merck
&
Co
Inc
254,306
23,129
Mylan
NV
(
d)
51,553
1,036
Perrigo
Co
PLC
13,595
702
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pharmaceuticals
(continued)
Pfizer
Inc
552,772
$
21,658
Zoetis
Inc
47,574
6,296
$
166,509
Pipelines
-
0.37%
Kinder
Morgan
Inc/DE
194,561
4,119
ONEOK
Inc
41,260
3,122
Williams
Cos
Inc/The
121,064
2,872
$
10,113
Real
Estate
-
0.08%
CBRE
Group
Inc
(
d)
33,438
2,049
REITs
-
2.81%
Alexandria
Real
Estate
Equities
Inc
11,501
1,858
American
Tower
Corp
44,242
10,168
Apartment
Investment
&
Management
Co
14,871
768
AvalonBay
Communities
Inc
13,950
2,925
Boston
Properties
Inc
14,363
1,980
Crown
Castle
International
Corp
41,528
5,903
Digital
Realty
Trust
Inc
20,847
2,496
Duke
Realty
Corp
36,714
1,273
Equinix
Inc
8,518
4,972
Equity
Residential
34,866
2,821
Essex
Property
Trust
Inc
6,600
1,986
Extra
Space
Storage
Inc
12,936
1,366
Federal
Realty
Investment
Trust
7,015
903
Healthpeak
Properties
Inc
49,438
1,704
Host
Hotels
&
Resorts
Inc
71,636
1,329
Iron
Mountain
Inc
28,681
914
Kimco
Realty
Corp
42,174
873
Mid-America
Apartment
Communities
Inc
11,393
1,502
Prologis
Inc
63,101
5,625
Public
Storage
15,005
3,196
Realty
Income
Corp
32,554
2,397
Regency
Centers
Corp
16,736
1,056
SBA
Communications
Corp
11,248
2,711
Simon
Property
Group
Inc
30,650
4,566
SL
Green
Realty
Corp
8,143
748
UDR
Inc
29,271
1,367
Ventas
Inc
37,230
2,150
Vornado
Realty
Trust
15,822
1,052
Welltower
Inc
40,528
3,314
Weyerhaeuser
Co
74,427
2,248
$
76,171
Retail
-
5.24%
Advance
Auto
Parts
Inc
6,918
1,108
AutoZone
Inc
(
d)
2,380
2,835
Best
Buy
Co
Inc
22,747
1,997
CarMax
Inc
(
d)
16,424
1,440
Chipotle
Mexican
Grill
Inc
(
d)
2,554
2,138
Costco
Wholesale
Corp
44,127
12,970
Darden
Restaurants
Inc
12,245
1,335
Dollar
General
Corp
25,431
3,967
Dollar
Tree
Inc
(
d)
23,638
2,223
Gap
Inc/The
21,255
376
Genuine
Parts
Co
14,513
1,542
Home
Depot
Inc/The
108,958
23,794
Kohl's
Corp
15,640
797
L
Brands
Inc
23,196
420
Lowe's
Cos
Inc
76,560
9,169
Macy's
Inc
30,864
525
McDonald's
Corp
75,224
14,865
Nordstrom
Inc
10,700
438
O'Reilly
Automotive
Inc
(
d)
7,558
3,312
Ross
Stores
Inc
36,133
4,207
Starbucks
Corp
117,965
10,372
Target
Corp
50,616
6,489
Tiffany
&
Co
10,783
1,441
TJX
Cos
Inc/The
121,126
7,396
Tractor
Supply
Co
11,825
1,105
Ulta
Beauty
Inc
(
d)
5,710
1,445
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2019
See
accompanying
notes.
177
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Retail
(continued)
Walgreens
Boots
Alliance
Inc
74,888
$
4,415
Walmart
Inc
141,694
16,839
Yum!
Brands
Inc
30,213
3,043
$
142,003
Savings
&
Loans
-
0.03%
People's
United
Financial
Inc
44,360
750
Semiconductors
-
4.19%
Advanced
Micro
Devices
Inc
(
d)
111,233
5,101
Analog
Devices
Inc
36,787
4,372
Applied
Materials
Inc
92,268
5,632
Broadcom
Inc
39,621
12,521
Intel
Corp
434,498
26,005
IPG
Photonics
Corp
(
d)
3,551
514
KLA
Corp
15,762
2,808
Lam
Research
Corp
14,491
4,237
Maxim
Integrated
Products
Inc
27,029
1,662
Microchip
Technology
Inc
23,870
2,500
Micron
Technology
Inc
(
d)
110,576
5,947
NVIDIA
Corp
61,129
14,384
Qorvo
Inc
(
d)
11,604
1,349
QUALCOMM
Inc
114,052
10,063
Skyworks
Solutions
Inc
17,018
2,057
Texas
Instruments
Inc
93,369
11,978
Xilinx
Inc
25,119
2,456
$
113,586
Shipbuilding
-
0.04%
Huntington
Ingalls
Industries
Inc
4,086
1,025
Software
-
8.16%
Activision
Blizzard
Inc
76,736
4,560
Adobe
Inc
(
d)
48,351
15,947
Akamai
Technologies
Inc
(
d)
16,142
1,394
ANSYS
Inc
(
d)
8,548
2,200
Autodesk
Inc
(
d)
21,977
4,032
Broadridge
Financial
Solutions
Inc
11,451
1,415
Cadence
Design
Systems
Inc
(
d)
28,026
1,944
Cerner
Corp
31,375
2,303
Citrix
Systems
Inc
12,227
1,356
Electronic
Arts
Inc
(
d)
29,166
3,136
Fidelity
National
Information
Services
Inc
61,388
8,538
Fiserv
Inc
(
d)
57,044
6,596
Intuit
Inc
26,000
6,810
Jack
Henry
&
Associates
Inc
7,684
1,119
Microsoft
Corp
761,999
120,167
MSCI
Inc
8,460
2,184
Oracle
Corp
216,397
11,465
Paychex
Inc
31,820
2,707
salesforce.com
Inc
(
d)
88,597
14,409
ServiceNow
Inc
(
d)
18,838
5,318
Synopsys
Inc
(
d)
15,015
2,090
Take-Two
Interactive
Software
Inc
(
d)
11,304
1,384
$
221,074
Telecommunications
-
3.13%
Arista
Networks
Inc
(
d)
5,418
1,102
AT&T
Inc
729,655
28,515
CenturyLink
Inc
98,006
1,295
Cisco
Systems
Inc
423,735
20,322
Corning
Inc
76,823
2,236
Juniper
Networks
Inc
33,433
823
Motorola
Solutions
Inc
17,113
2,758
T-Mobile
US
Inc
(
d)
31,619
2,480
Verizon
Communications
Inc
413,100
25,364
$
84,895
Textiles
-
0.03%
Mohawk
Industries
Inc
(
d)
5,938
810
Toys,
Games
&
Hobbies
-
0.05%
Hasbro
Inc
12,710
1,342
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Transportation
-
1.52%
CH
Robinson
Worldwide
Inc
13,509
$
1,056
CSX
Corp
77,675
5,621
Expeditors
International
of
Washington
Inc
17,010
1,327
FedEx
Corp
23,975
3,625
JB
Hunt
Transport
Services
Inc
8,516
995
Kansas
City
Southern
9,901
1,517
Norfolk
Southern
Corp
26,045
5,056
Old
Dominion
Freight
Line
Inc
6,378
1,210
Union
Pacific
Corp
69,341
12,536
United
Parcel
Service
Inc
69,994
8,194
$
41,137
Water
-
0.08%
American
Water
Works
Co
Inc
18,056
2,218
TOTAL
COMMON
STOCKS
$
2,672,864
Total
Investments
$
2,712,670
Other
Assets
and
Liabilities
- (
0.13)%
(3,492)
TOTAL
NET
ASSETS
-
100.00%
$
2,709,178
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$0
or
0.00%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
pledged
to
cover
margin
requirements
for
futures
contracts.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$2,292
or
0.08%
of
net
assets.
Portfolio
Summary (
unaudited)
Sector
Percent
Consumer,
Non-cyclical
21.66%
Technology
18.51%
Financial
17.36%
Communications
14.42%
Industrial
8.72%
Consumer,
Cyclical
8.31%
Energy
4.28%
Utilities
3.28%
Basic
Materials
2.12%
Money
Market
Funds
1.29%
Investment
Companies
0.18%
Other
Assets
and
Liabilities
(
0.13)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
S&P
500
Index
Account
December
31,
2019
See
accompanying
notes.
178
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
56,593
$
493,265
$
514,906
$
34,952
$
56,593
$
493,265
$
514,906
$
34,952
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
693
$
—
$
—
$
—
$
693
$
—
$
—
$
—
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini
;
March
2020
Long
217
$
35,057
$
613
Total
$
613
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2019
See
accompanying
notes.
179
INVESTMENT
COMPANIES
-
6.51%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
0.54%
iShares
Core
S&P
500
ETF
3,638
$
1,176
Money
Market
Funds
-
5.97%
BlackRock
Liquidity
FedFund
1.53%
(a),(b)
40,290
40
Principal
Government
Money
Market
Fund
1.41%
(a),(c)
12,955,549
12,955
$
12,995
TOTAL
INVESTMENT
COMPANIES
$
14,171
COMMON
STOCKS
-
93.61%
Shares
Held
Value
(000's)
Advertising
-
0.09%
Interpublic
Group
of
Cos
Inc/The
2,953
68
Omnicom
Group
Inc
1,658
135
$
203
Aerospace
&
Defense
-
2.21%
Arconic
Inc
2,950
91
Boeing
Co/The
4,073
1,327
General
Dynamics
Corp
1,785
315
L3Harris
Technologies
Inc
1,685
333
Lockheed
Martin
Corp
1,891
736
Northrop
Grumman
Corp
1,195
411
Raytheon
Co
2,121
466
TransDigm
Group
Inc
379
212
United
Technologies
Corp
6,180
926
$
4,817
Agriculture
-
0.88%
Altria
Group
Inc
14,231
710
Archer-Daniels-Midland
Co
4,240
197
Philip
Morris
International
Inc
11,852
1,008
$
1,915
Airlines
-
0.34%
Alaska
Air
Group
Inc
938
63
American
Airlines
Group
Inc
2,971
85
Delta
Air
Lines
Inc
4,387
257
Southwest
Airlines
Co
3,609
195
United
Airlines
Holdings
Inc
(d)
1,659
146
$
746
Apparel
-
0.70%
Capri
Holdings
Ltd
(d)
1,154
44
Hanesbrands
Inc
2,753
41
NIKE
Inc
9,494
962
PVH
Corp
564
59
Ralph
Lauren
Corp
378
44
Tapestry
Inc
2,103
57
Under
Armour
Inc
-
Class
A
(d)
1,433
31
Under
Armour
Inc
-
Class
C
(d)
1,482
28
VF
Corp
2,493
249
$
1,515
Automobile
Manufacturers
-
0.48%
Cummins
Inc
1,168
209
Ford
Motor
Co
29,667
276
General
Motors
Co
9,578
351
PACCAR
Inc
2,634
208
$
1,044
Automobile
Parts
&
Equipment
-
0.12%
Aptiv
PLC
1,944
185
BorgWarner
Inc
1,572
68
$
253
Banks
-
6.05%
Bank
of
America
Corp
61,678
2,172
Bank
of
New
York
Mellon
Corp/The
6,394
322
Citigroup
Inc
16,634
1,329
Citizens
Financial
Group
Inc
3,313
134
Comerica
Inc
1,099
79
Fifth
Third
Bancorp
5,407
166
First
Republic
Bank/CA
1,283
151
Goldman
Sachs
Group
Inc/The
2,429
558
Huntington
Bancshares
Inc/OH
7,868
119
JPMorgan
Chase
&
Co
23,896
3,331
KeyCorp
7,505
152
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Banks
(continued)
M&T
Bank
Corp
1,006
$
171
Morgan
Stanley
9,373
479
Northern
Trust
Corp
1,615
172
PNC
Financial
Services
Group
Inc/The
3,339
533
Regions
Financial
Corp
7,350
126
State
Street
Corp
2,771
219
SVB
Financial
Group
(d)
393
99
Truist
Financial
Corp
10,216
575
US
Bancorp
10,828
642
Wells
Fargo
&
Co
29,323
1,578
Zions
Bancorp
NA
1,299
67
$
13,174
Beverages
-
1.69%
Brown-Forman
Corp
-
B
Shares
1,387
94
Coca-Cola
Co/The
29,377
1,626
Constellation
Brands
Inc
1,276
242
Molson
Coors
Beverage
Co
1,430
77
Monster
Beverage
Corp
(d)
2,909
185
PepsiCo
Inc
10,622
1,452
$
3,676
Biotechnology
-
1.66%
Alexion
Pharmaceuticals
Inc
(d)
1,687
182
Amgen
Inc
4,529
1,092
Biogen
Inc
(d)
1,376
408
Corteva
Inc
5,701
169
Gilead
Sciences
Inc
9,637
626
Illumina
Inc
(d)
1,120
372
Incyte
Corp
(d)
1,361
119
Regeneron
Pharmaceuticals
Inc
(d)
608
228
Vertex
Pharmaceuticals
Inc
(d)
1,959
429
$
3,625
Building
Materials
-
0.32%
Fortune
Brands
Home
&
Security
Inc
1,060
69
Johnson
Controls
International
plc
5,878
240
Martin
Marietta
Materials
Inc
476
133
Masco
Corp
2,165
104
Vulcan
Materials
Co
1,008
145
$
691
Chemicals
-
1.69%
Air
Products
&
Chemicals
Inc
1,679
395
Albemarle
Corp
807
59
Celanese
Corp
921
113
CF
Industries
Holdings
Inc
1,656
79
Dow
Inc
5,648
309
DuPont
de
Nemours
Inc
5,645
362
Eastman
Chemical
Co
1,036
82
Ecolab
Inc
1,910
369
FMC
Corp
987
99
International
Flavors
&
Fragrances
Inc
813
105
Linde
PLC
4,095
872
LyondellBasell
Industries
NV
1,957
185
Mosaic
Co/The
2,665
58
PPG
Industries
Inc
1,800
240
Sherwin-Williams
Co/The
626
365
$
3,692
Commercial
Services
-
1.92%
Automatic
Data
Processing
Inc
3,295
562
Cintas
Corp
638
172
Equifax
Inc
921
129
FleetCor
Technologies
Inc
(d)
662
190
Gartner
Inc
(d)
682
105
Global
Payments
Inc
2,290
418
H&R
Block
Inc
1,488
35
IHS
Markit
Ltd
(d)
3,054
230
MarketAxess
Holdings
Inc
289
110
Moody's
Corp
1,237
294
Nielsen
Holdings
PLC
2,710
55
PayPal
Holdings
Inc
(d)
8,944
967
Quanta
Services
Inc
1,083
44
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2019
See
accompanying
notes.
180
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
Robert
Half
International
Inc
894
$
56
Rollins
Inc
1,072
36
S&P
Global
Inc
1,863
509
United
Rentals
Inc
(d)
572
95
Verisk
Analytics
Inc
1,247
186
$
4,193
Computers
-
5.77%
Accenture
PLC
-
Class
A
4,838
1,019
Apple
Inc
31,822
9,345
Cognizant
Technology
Solutions
Corp
4,172
259
DXC
Technology
Co
1,952
73
Fortinet
Inc
(d)
1,080
115
Hewlett
Packard
Enterprise
Co
9,859
156
HP
Inc
11,289
232
International
Business
Machines
Corp
6,746
904
Leidos
Holdings
Inc
1,013
99
NetApp
Inc
1,739
108
Seagate
Technology
PLC
1,763
105
Western
Digital
Corp
2,265
144
$
12,559
Consumer
Products
-
0.33%
Avery
Dennison
Corp
636
83
Church
&
Dwight
Co
Inc
1,870
131
Clorox
Co/The
955
147
Kimberly-Clark
Corp
2,611
359
$
720
Cosmetics
&
Personal
Care
-
1.47%
Colgate-Palmolive
Co
6,529
450
Coty
Inc
2,250
25
Estee
Lauder
Cos
Inc/The
1,696
350
Procter
&
Gamble
Co/The
18,998
2,373
$
3,198
Distribution
&
Wholesale
-
0.23%
Copart
Inc
(d)
1,557
142
Fastenal
Co
4,368
161
LKQ
Corp
(d)
2,335
83
WW
Grainger
Inc
333
113
$
499
Diversified
Financial
Services
-
3.95%
Alliance
Data
Systems
Corp
312
35
American
Express
Co
5,113
637
Ameriprise
Financial
Inc
965
161
BlackRock
Inc
898
451
Capital
One
Financial
Corp
3,549
365
Cboe
Global
Markets
Inc
845
101
Charles
Schwab
Corp/The
8,711
414
CME
Group
Inc
2,730
548
Discover
Financial
Services
2,389
203
E*TRADE
Financial
Corp
1,720
78
Franklin
Resources
Inc
2,126
55
Intercontinental
Exchange
Inc
4,243
393
Invesco
Ltd
2,837
51
Mastercard
Inc
6,765
2,020
Nasdaq
Inc
873
93
Raymond
James
Financial
Inc
940
84
Synchrony
Financial
4,530
163
T
Rowe
Price
Group
Inc
1,781
217
Visa
Inc
13,043
2,451
Western
Union
Co/The
3,195
86
$
8,606
Electric
-
2.95%
AES
Corp/VA
5,056
101
Alliant
Energy
Corp
1,830
100
Ameren
Corp
1,873
144
American
Electric
Power
Co
Inc
3,762
356
CenterPoint
Energy
Inc
3,825
104
CMS
Energy
Corp
2,161
136
Consolidated
Edison
Inc
2,531
229
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Electric
(continued)
Dominion
Energy
Inc
6,270
$
519
DTE
Energy
Co
1,462
190
Duke
Energy
Corp
5,553
506
Edison
International
2,731
206
Entergy
Corp
1,515
181
Evergy
Inc
1,737
113
Eversource
Energy
2,465
210
Exelon
Corp
7,405
338
FirstEnergy
Corp
4,115
200
NextEra
Energy
Inc
3,724
902
NRG
Energy
Inc
1,918
76
Pinnacle
West
Capital
Corp
855
77
PPL
Corp
5,507
198
Public
Service
Enterprise
Group
Inc
3,851
227
Sempra
Energy
2,146
325
Southern
Co/The
7,988
509
WEC
Energy
Group
Inc
2,402
221
Xcel
Energy
Inc
3,994
254
$
6,422
Electrical
Components
&
Equipment
-
0.24%
AMETEK
Inc
1,740
173
Emerson
Electric
Co
4,641
354
$
527
Electronics
-
1.31%
Agilent
Technologies
Inc
2,357
201
Allegion
PLC
708
88
Amphenol
Corp
2,258
245
FLIR
Systems
Inc
1,023
53
Fortive
Corp
2,250
172
Garmin
Ltd
1,100
107
Honeywell
International
Inc
5,445
964
Keysight
Technologies
Inc
(d)
1,428
147
Mettler-Toledo
International
Inc
(d)
187
148
PerkinElmer
Inc
846
82
Roper
Technologies
Inc
792
281
TE
Connectivity
Ltd
2,548
244
Waters
Corp
(d)
492
115
$
2,847
Engineering
&
Construction
-
0.04%
Jacobs
Engineering
Group
Inc
1,031
93
Entertainment
-
0.04%
Live
Nation
Entertainment
Inc
(d)
1,073
77
Environmental
Control
-
0.25%
Pentair
PLC
1,280
59
Republic
Services
Inc
1,606
144
Waste
Management
Inc
2,972
338
$
541
Food
-
1.21%
Campbell
Soup
Co
1,286
63
Conagra
Brands
Inc
3,706
127
General
Mills
Inc
4,604
247
Hershey
Co/The
1,129
166
Hormel
Foods
Corp
2,117
95
JM
Smucker
Co/The
868
90
Kellogg
Co
1,896
131
Kraft
Heinz
Co/The
4,743
152
Kroger
Co/The
6,109
177
Lamb
Weston
Holdings
Inc
1,112
96
McCormick
&
Co
Inc/MD
941
160
Mondelez
International
Inc
10,968
604
Sysco
Corp
3,888
333
Tyson
Foods
Inc
2,248
205
$
2,646
Forest
Products
&
Paper
-
0.06%
International
Paper
Co
2,986
137
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2019
See
accompanying
notes.
181
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Gas
-
0.08%
Atmos
Energy
Corp
909
$
102
NiSource
Inc
2,844
79
$
181
Hand
&
Machine
Tools
-
0.12%
Snap-on
Inc
417
70
Stanley
Black
&
Decker
Inc
1,157
192
$
262
Healthcare
-
Products
-
3.58%
Abbott
Laboratories
13,464
1,170
ABIOMED
Inc
(d)
344
59
Align
Technology
Inc
(d)
547
153
Baxter
International
Inc
3,888
325
Boston
Scientific
Corp
(d)
10,617
480
Cooper
Cos
Inc/The
378
121
Danaher
Corp
4,869
747
DENTSPLY
SIRONA
Inc
1,696
96
Edwards
Lifesciences
Corp
(d)
1,589
371
Henry
Schein
Inc
(d)
1,119
75
Hologic
Inc
(d)
2,042
107
IDEXX
Laboratories
Inc
(d)
655
171
Intuitive
Surgical
Inc
(d)
881
521
Medtronic
PLC
10,210
1,158
ResMed
Inc
1,095
170
STERIS
PLC
645
98
Stryker
Corp
2,453
515
Teleflex
Inc
352
133
Thermo
Fisher
Scientific
Inc
3,055
992
Varian
Medical
Systems
Inc
(d)
692
98
Zimmer
Biomet
Holdings
Inc
1,566
234
$
7,794
Healthcare
-
Services
-
1.97%
Anthem
Inc
1,932
584
Centene
Corp
(d)
3,152
198
DaVita
Inc
(d)
683
51
HCA
Healthcare
Inc
2,016
298
Humana
Inc
1,010
370
IQVIA
Holdings
Inc
(d)
1,375
212
Laboratory
Corp
of
America
Holdings
(d)
740
125
Quest
Diagnostics
Inc
1,025
109
UnitedHealth
Group
Inc
7,218
2,122
Universal
Health
Services
Inc
612
88
WellCare
Health
Plans
Inc
(d)
383
127
$
4,284
Home
Builders
-
0.20%
DR
Horton
Inc
2,554
135
Lennar
Corp
-
A
Shares
2,133
119
NVR
Inc
(d)
26
99
PulteGroup
Inc
1,942
75
$
428
Home
Furnishings
-
0.06%
Leggett
&
Platt
Inc
1,002
51
Whirlpool
Corp
480
71
$
122
Housewares
-
0.03%
Newell
Brands
Inc
2,902
56
Insurance
-
3.71%
Aflac
Inc
5,593
296
Allstate
Corp/The
2,469
278
American
International
Group
Inc
6,627
340
Aon
PLC
1,785
373
Arthur
J
Gallagher
&
Co
1,420
135
Assurant
Inc
462
60
Berkshire
Hathaway
Inc
-
Class
B
(d)
14,901
3,375
Chubb
Ltd
3,454
538
Cincinnati
Financial
Corp
1,157
122
Everest
Re
Group
Ltd
311
86
Globe
Life
Inc
759
80
Hartford
Financial
Services
Group
Inc/The
2,745
167
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
(continued)
Lincoln
National
Corp
1,512
$
89
Loews
Corp
1,950
102
Marsh
&
McLennan
Cos
Inc
3,844
428
MetLife
Inc
5,956
304
Principal
Financial
Group
Inc
1,966
108
Progressive
Corp/The
4,452
322
Prudential
Financial
Inc
3,061
287
Travelers
Cos
Inc/The
1,967
269
Unum
Group
1,573
46
Willis
Towers
Watson
PLC
979
198
WR
Berkley
Corp
1,104
76
$
8,079
Internet
-
8.48%
Alphabet
Inc
-
A
Shares
(d)
2,283
3,058
Alphabet
Inc
-
C
Shares
(d)
2,277
3,044
Amazon.com
Inc
(d)
3,173
5,863
Booking
Holdings
Inc
(d)
319
655
CDW
Corp/DE
1,095
156
eBay
Inc
5,827
210
Expedia
Group
Inc
1,064
115
F5
Networks
Inc
(d)
462
65
Facebook
Inc
(d)
18,333
3,763
Netflix
Inc
(d)
3,339
1,080
NortonLifeLock
Inc
4,367
112
Twitter
Inc
(d)
5,913
190
VeriSign
Inc
(d)
789
152
$
18,463
Iron
&
Steel
-
0.06%
Nucor
Corp
2,309
130
Leisure
Products
&
Services
-
0.21%
Carnival
Corp
3,051
155
Harley-Davidson
Inc
1,176
43
Norwegian
Cruise
Line
Holdings
Ltd
(d)
1,622
95
Royal
Caribbean
Cruises
Ltd
1,309
175
$
468
Lodging
-
0.44%
Hilton
Worldwide
Holdings
Inc
2,150
238
Las
Vegas
Sands
Corp
2,574
178
Marriott
International
Inc/MD
2,067
313
MGM
Resorts
International
3,924
131
Wynn
Resorts
Ltd
735
102
$
962
Machinery
-
Construction
&
Mining
-
0.29%
Caterpillar
Inc
4,211
622
Machinery
-
Diversified
-
0.50%
Deere
&
Co
2,398
415
Dover
Corp
1,105
127
Flowserve
Corp
996
50
IDEX
Corp
578
99
Rockwell
Automation
Inc
882
179
Westinghouse
Air
Brake
Technologies
Corp
1,387
108
Xylem
Inc/NY
1,371
108
$
1,086
Media
-
2.15%
Charter
Communications
Inc
(d)
1,196
580
Comcast
Corp
-
Class
A
34,586
1,555
Discovery
Inc
-
A
Shares
(d),(e)
1,203
39
Discovery
Inc
-
C
Shares
(d)
2,556
78
DISH
Network
Corp
(d)
1,942
69
Fox
Corp
-
A
Shares
2,700
100
Fox
Corp
-
B
Shares
1,236
45
News
Corp
-
A
Shares
2,958
42
News
Corp
-
B
Shares
926
14
ViacomCBS
Inc
4,116
173
Walt
Disney
Co/The
13,730
1,986
$
4,681
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2019
See
accompanying
notes.
182
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Mining
-
0.19%
Freeport-McMoRan
Inc
11,051
$
145
Newmont
Goldcorp
Corp
6,245
271
$
416
Miscellaneous
Manufacturers
-
1.28%
3M
Co
4,381
772
AO
Smith
Corp
1,045
50
Eaton
Corp
PLC
3,151
298
General
Electric
Co
66,536
743
Illinois
Tool
Works
Inc
2,229
400
Ingersoll-Rand
PLC
1,826
243
Parker-Hannifin
Corp
979
201
Textron
Inc
1,740
78
$
2,785
Office
&
Business
Equipment
-
0.07%
Xerox
Holdings
Corp
1,418
52
Zebra
Technologies
Corp
(d)
411
105
$
157
Oil
&
Gas
-
3.32%
Apache
Corp
2,864
73
Cabot
Oil
&
Gas
Corp
3,109
54
Chevron
Corp
14,405
1,736
Cimarex
Energy
Co
775
41
Concho
Resources
Inc
1,531
134
ConocoPhillips
8,361
544
Devon
Energy
Corp
2,949
77
Diamondback
Energy
Inc
1,228
114
EOG
Resources
Inc
4,431
371
Exxon
Mobil
Corp
(f)
32,233
2,249
Helmerich
&
Payne
Inc
827
38
Hess
Corp
1,972
132
HollyFrontier
Corp
1,132
57
Marathon
Oil
Corp
6,094
83
Marathon
Petroleum
Corp
4,948
298
Noble
Energy
Inc
3,643
91
Occidental
Petroleum
Corp
6,805
280
Phillips
66
3,386
377
Pioneer
Natural
Resources
Co
1,262
191
Valero
Energy
Corp
3,129
293
$
7,233
Oil
&
Gas
Services
-
0.39%
Baker
Hughes
Co
4,950
127
Halliburton
Co
6,687
164
National
Oilwell
Varco
Inc
2,938
73
Schlumberger
Ltd
10,545
424
TechnipFMC
PLC
3,200
69
$
857
Packaging
&
Containers
-
0.23%
Amcor
PLC
12,341
134
Ball
Corp
2,493
161
Packaging
Corp
of
America
720
81
Sealed
Air
Corp
1,176
47
Westrock
Co
1,963
84
$
507
Pharmaceuticals
-
5.83%
AbbVie
Inc
11,265
998
Allergan
PLC
2,501
478
AmerisourceBergen
Corp
1,145
97
Becton
Dickinson
and
Co
2,060
560
Bristol-Myers
Squibb
Co
17,858
1,146
Cardinal
Health
Inc
2,229
113
Cigna
Corp
2,845
582
CVS
Health
Corp
9,911
736
Eli
Lilly
&
Co
6,438
846
Johnson
&
Johnson
20,050
2,925
McKesson
Corp
1,373
190
Merck
&
Co
Inc
19,397
1,764
Mylan
NV
(d)
3,931
79
Perrigo
Co
PLC
1,036
54
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pharmaceuticals
(continued)
Pfizer
Inc
42,162
$
1,652
Zoetis
Inc
3,628
480
$
12,700
Pipelines
-
0.35%
Kinder
Morgan
Inc/DE
14,838
314
ONEOK
Inc
3,146
238
Williams
Cos
Inc/The
9,233
219
$
771
Real
Estate
-
0.07%
CBRE
Group
Inc
(d)
2,551
156
REITs
-
2.67%
Alexandria
Real
Estate
Equities
Inc
877
142
American
Tower
Corp
3,375
776
Apartment
Investment
&
Management
Co
1,134
59
AvalonBay
Communities
Inc
1,064
223
Boston
Properties
Inc
1,095
151
Crown
Castle
International
Corp
3,166
450
Digital
Realty
Trust
Inc
1,589
190
Duke
Realty
Corp
2,799
97
Equinix
Inc
650
379
Equity
Residential
2,658
215
Essex
Property
Trust
Inc
504
152
Extra
Space
Storage
Inc
985
104
Federal
Realty
Investment
Trust
535
69
Healthpeak
Properties
Inc
3,770
130
Host
Hotels
&
Resorts
Inc
5,464
101
Iron
Mountain
Inc
2,186
70
Kimco
Realty
Corp
3,216
67
Mid-America
Apartment
Communities
Inc
868
114
Prologis
Inc
4,812
429
Public
Storage
1,144
244
Realty
Income
Corp
2,482
183
Regency
Centers
Corp
1,275
80
SBA
Communications
Corp
859
207
Simon
Property
Group
Inc
2,336
348
SL
Green
Realty
Corp
621
57
UDR
Inc
2,232
104
Ventas
Inc
2,839
164
Vornado
Realty
Trust
1,206
80
Welltower
Inc
3,091
253
Weyerhaeuser
Co
5,676
171
$
5,809
Retail
-
4.97%
Advance
Auto
Parts
Inc
528
85
AutoZone
Inc
(d)
183
218
Best
Buy
Co
Inc
1,736
152
CarMax
Inc
(d)
1,253
110
Chipotle
Mexican
Grill
Inc
(d)
194
162
Costco
Wholesale
Corp
3,366
989
Darden
Restaurants
Inc
933
102
Dollar
General
Corp
1,940
303
Dollar
Tree
Inc
(d)
1,802
169
Gap
Inc/The
1,622
29
Genuine
Parts
Co
1,106
118
Home
Depot
Inc/The
8,311
1,815
Kohl's
Corp
1,194
61
L
Brands
Inc
1,768
32
Lowe's
Cos
Inc
5,840
699
Macy's
Inc
2,353
40
McDonald's
Corp
5,740
1,134
Nordstrom
Inc
815
33
O'Reilly
Automotive
Inc
(d)
577
253
Ross
Stores
Inc
2,757
321
Starbucks
Corp
8,998
791
Target
Corp
3,861
495
Tiffany
&
Co
822
110
TJX
Cos
Inc/The
9,238
564
Tractor
Supply
Co
902
84
Ulta
Beauty
Inc
(d)
437
111
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2019
See
accompanying
notes.
183
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Retail
(continued)
Walgreens
Boots
Alliance
Inc
5,713
$
337
Walmart
Inc
10,806
1,284
Yum!
Brands
Inc
2,305
232
$
10,833
Savings
&
Loans
-
0.03%
People's
United
Financial
Inc
3,382
57
Semiconductors
-
3.98%
Advanced
Micro
Devices
Inc
(d)
8,483
389
Analog
Devices
Inc
2,805
333
Applied
Materials
Inc
7,037
430
Broadcom
Inc
3,022
955
Intel
Corp
33,142
1,984
IPG
Photonics
Corp
(d)
270
39
KLA
Corp
1,203
214
Lam
Research
Corp
1,105
323
Maxim
Integrated
Products
Inc
2,060
127
Microchip
Technology
Inc
1,820
191
Micron
Technology
Inc
(d)
8,433
454
NVIDIA
Corp
4,663
1,097
Qorvo
Inc
(d)
885
103
QUALCOMM
Inc
8,698
767
Skyworks
Solutions
Inc
1,298
157
Texas
Instruments
Inc
7,120
913
Xilinx
Inc
1,916
187
$
8,663
Shipbuilding
-
0.04%
Huntington
Ingalls
Industries
Inc
313
79
Software
-
7.74%
Activision
Blizzard
Inc
5,852
348
Adobe
Inc
(d)
3,688
1,216
Akamai
Technologies
Inc
(d)
1,232
107
ANSYS
Inc
(d)
652
168
Autodesk
Inc
(d)
1,676
308
Broadridge
Financial
Solutions
Inc
873
108
Cadence
Design
Systems
Inc
(d)
2,137
148
Cerner
Corp
2,394
176
Citrix
Systems
Inc
932
103
Electronic
Arts
Inc
(d)
2,225
239
Fidelity
National
Information
Services
Inc
4,681
651
Fiserv
Inc
(d)
4,350
503
Intuit
Inc
1,983
519
Jack
Henry
&
Associates
Inc
585
85
Microsoft
Corp
(f)
58,119
9,165
MSCI
Inc
645
167
Oracle
Corp
16,506
875
Paychex
Inc
2,426
206
salesforce.com
Inc
(d)
6,756
1,099
ServiceNow
Inc
(d)
1,437
406
Synopsys
Inc
(d)
1,144
159
Take-Two
Interactive
Software
Inc
(d)
861
105
$
16,861
Telecommunications
-
2.97%
Arista
Networks
Inc
(d)
413
84
AT&T
Inc
55,652
2,175
CenturyLink
Inc
7,473
99
Cisco
Systems
Inc
32,319
1,550
Corning
Inc
5,860
171
Juniper
Networks
Inc
2,551
63
Motorola
Solutions
Inc
1,304
210
T-Mobile
US
Inc
(d)
2,411
189
Verizon
Communications
Inc
31,507
1,934
$
6,475
Textiles
-
0.03%
Mohawk
Industries
Inc
(d)
453
62
Toys,
Games
&
Hobbies
-
0.05%
Hasbro
Inc
969
102
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Transportation
-
1.44%
CH
Robinson
Worldwide
Inc
1,030
$
80
CSX
Corp
5,925
429
Expeditors
International
of
Washington
Inc
1,296
101
FedEx
Corp
1,828
276
JB
Hunt
Transport
Services
Inc
649
76
Kansas
City
Southern
756
116
Norfolk
Southern
Corp
1,988
386
Old
Dominion
Freight
Line
Inc
486
92
Union
Pacific
Corp
5,291
957
United
Parcel
Service
Inc
5,337
625
$
3,138
Water
-
0.08%
American
Water
Works
Co
Inc
1,376
169
TOTAL
COMMON
STOCKS
$
203,864
TOTAL
PURCHASED
OPTIONS
-
0.21%
$
458
Total
Investments
$
218,493
Other
Assets
and
Liabilities
- (0.33)%
(714)
TOTAL
NET
ASSETS
-
100.00%
$
217,779
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$40
or
0.02%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
Security
or
a
portion
of
the
security
was
pledged
to
cover
margin
requirements
for
futures
contracts.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,650
or
0.76%
of
net
assets.
Portfolio
Summary (unaudited)
Sector
Percent
Consumer,
Non-cyclical
20.54%
Technology
17.56%
Financial
16.48%
Communications
13.69%
Industrial
8.27%
Consumer,
Cyclical
7.90%
Money
Market
Funds
5.97%
Energy
4.06%
Utilities
3.11%
Basic
Materials
2.00%
Investment
Companies
0.54%
Purchased
Options
0.21%
Other
Assets
and
Liabilities
(0.33)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
S&P
500
Managed
Volatility
Index
Account
December
31,
2019
See
accompanying
notes.
184
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
16,994
$
56,051
$
60,090
$
12,955
$
16,994
$
56,051
$
60,090
$
12,955
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
276
$
—
$
—
$
—
$
276
$
—
$
—
$
—
Amounts
in
thousands.
Options
Purchased
Options
Outstanding
Counterparty
Contracts/
Shares
Notional
Amount
Exercise
Price
Expiration
Date
Upfront
Payments/
(Premiums)
Fair
Value
Unrealized
Appreciation/
(Depreciation)
Call
-
S&P
500
Index
N/A
125
$
13
$
3,280.00
01/21/2020
$
106
$
94
$
(12)
Put
-
S&P
500
Index
N/A
300
$
30
$
3,160.00
01/21/2019
492
364
(128)
Total
$
598
$
458
$
(140)
Written
Options
Outstanding
Counterparty
Contracts/
Shares
Notional
Amount
Exercise
Price
Expiration
Date
Upfront
Payments/
(Premiums)
Fair
Value
Unrealized
Appreciation/
(Depreciation)
Call
-
S&P
500
Index
N/A
125
$
13
$
3,300.00
01/21/2019
$
(60)
$
(48)
$
12
Put
-
S&P
500
Index
N/A
300
$
30
$
3,120.00
01/21/2019
(351)
(247)
104
Total
$
(411)
$
(295)
$
116
Amounts
in
thousands
except
contracts/shares.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini;
March
2020
Long
18
$
2,908
$
53
Total
$
53
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
MidCap
Account
December
31,
2019
See
accompanying
notes.
185
INVESTMENT
COMPANIES
-
0.34%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.34%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
1,849,930
$
1,850
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
252,537
252
$
2,102
TOTAL
INVESTMENT
COMPANIES
$
2,102
COMMON
STOCKS
-
99.62%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
4.36%
HEICO
Corp
-
Class
A
21,212
1,899
TransDigm
Group
Inc
44,013
24,647
$
26,546
Banks
-
2.28%
First
Republic
Bank/CA
92,101
10,817
M&T
Bank
Corp
18,149
3,081
$
13,898
Beverages
-
0.59%
Brown-Forman
Corp
-
B
Shares
53,216
3,597
Building
Materials
-
4.46%
Martin
Marietta
Materials
Inc
35,239
9,854
Summit
Materials
Inc
(
d)
133,588
3,193
Vulcan
Materials
Co
97,933
14,101
$
27,148
Chemicals
-
0.69%
Air
Products
&
Chemicals
Inc
17,775
4,177
Commercial
Services
-
9.99%
AMERCO
10,373
3,898
Everarc
Holdings
Ltd
(
d)
97,671
1,319
Everarc
Holdings
Ltd
-
Warrants
(
d)
97,671
147
Gartner
Inc
(
d)
87,776
13,526
IHS
Markit
Ltd
(
d)
150,087
11,309
Moody's
Corp
24,177
5,740
S&P
Global
Inc
10,968
2,995
Square
Inc
(
d)
23,761
1,486
TransUnion
127,205
10,890
Verisk
Analytics
Inc
63,372
9,464
$
60,774
Distribution
&
Wholesale
-
3.60%
Copart
Inc
(
d)
158,657
14,428
Fastenal
Co
202,082
7,467
$
21,895
Diversified
Financial
Services
-
1.01%
Credit
Acceptance
Corp
(
d)
13,870
6,135
Electric
-
2.02%
Brookfield
Infrastructure
Partners
LP
181,906
9,094
Brookfield
Renewable
Partners
LP
69,191
3,226
$
12,320
Electronics
-
2.98%
Mettler-Toledo
International
Inc
(
d)
10,456
8,295
Roper
Technologies
Inc
27,743
9,827
$
18,122
Entertainment
-
2.91%
Liberty
Media
Corp-Liberty
Braves
-
A
Shares
(
d)
5,176
153
Liberty
Media
Corp-Liberty
Braves
-
C
Shares
(
d)
20,023
591
Live
Nation
Entertainment
Inc
(
d)
99,896
7,140
Vail
Resorts
Inc
40,898
9,809
$
17,693
Hand
&
Machine
Tools
-
1.01%
Colfax
Corp
(
d)
168,602
6,134
Healthcare
-
Products
-
0.95%
IDEXX
Laboratories
Inc
(
d)
22,023
5,751
Home
Builders
-
1.58%
Lennar
Corp
-
A
Shares
96,158
5,365
Lennar
Corp
-
B
Shares
1,475
66
NVR
Inc
(
d)
1,099
4,185
$
9,616
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
9.56%
Aon
PLC
23,897
$
4,978
Arch
Capital
Group
Ltd
(
d)
244,826
10,501
Brown
&
Brown
Inc
218,062
8,609
Fidelity
National
Financial
Inc
260,977
11,835
Markel
Corp
(
d)
15,122
17,287
Progressive
Corp/The
68,614
4,967
$
58,177
Internet
-
4.21%
Shopify
Inc
(
d)
5,560
2,211
VeriSign
Inc
(
d)
55,462
10,686
Wayfair
Inc
(
d)
52,640
4,757
Wix.com
Ltd
(
d)
65,293
7,991
$
25,645
Investment
Companies
-
0.11%
Brookfield
Business
Partners
LP
15,995
660
Lodging
-
3.61%
Hilton
Worldwide
Holdings
Inc
148,697
16,492
Hyatt
Hotels
Corp
61,316
5,501
$
21,993
Machinery
-
Diversified
-
0.12%
Cognex
Corp
13,326
747
Media
-
5.09%
Liberty
Broadband
Corp
-
A
Shares
(
d)
23,522
2,930
Liberty
Broadband
Corp
-
C
Shares
(
d)
66,746
8,393
Liberty
Global
PLC
-
A
Shares
(
d)
15,943
363
Liberty
Global
PLC
-
C
Shares
(
d)
193,348
4,214
Liberty
Media
Corp-Liberty
Formula
One
-
A
Shares
(
d)
18,376
805
Liberty
Media
Corp-Liberty
Formula
One
-
C
Shares
(
d)
160,234
7,365
Liberty
Media
Corp-Liberty
SiriusXM
-
A
Shares
(
d)
35,379
1,710
Liberty
Media
Corp-Liberty
SiriusXM
-
C
Shares
(
d)
108,276
5,212
$
30,992
Pharmaceuticals
-
0.11%
Elanco
Animal
Health
Inc
(
d)
22,168
653
Private
Equity
-
7.62%
Brookfield
Asset
Management
Inc
437,784
25,304
Kennedy-Wilson
Holdings
Inc
188,425
4,202
KKR
&
Co
Inc
360,325
10,510
Onex
Corp
101,304
6,389
$
46,405
Real
Estate
-
3.91%
Brookfield
Property
Partners
LP
(
e)
94,961
1,736
CBRE
Group
Inc
(
d)
240,351
14,731
Howard
Hughes
Corp/
The
(
d)
57,825
7,332
$
23,799
REITs
-
3.56%
Equinix
Inc
7,010
4,092
SBA
Communications
Corp
67,746
16,326
Vornado
Realty
Trust
18,747
1,247
$
21,665
Retail
-
10.45%
CarMax
Inc
(
d)
190,021
16,659
Dollar
General
Corp
33,502
5,226
Domino's
Pizza
Inc
33,910
9,962
O'Reilly
Automotive
Inc
(
d)
37,384
16,384
Restaurant
Brands
International
Inc
223,020
14,222
Ross
Stores
Inc
10,148
1,181
$
63,634
Semiconductors
-
1.57%
Microchip
Technology
Inc
91,243
9,555
Software
-
9.51%
ANSYS
Inc
(
d)
44,713
11,510
Autodesk
Inc
(
d)
66,129
12,132
Black
Knight
Inc
(
d)
226,664
14,615
Guidewire
Software
Inc
(
d)
52,181
5,728
Schedule
of
Investments
MidCap
Account
December
31,
2019
See
accompanying
notes.
186
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
MSCI
Inc
20,477
$
5,287
RealPage
Inc
(
d)
112,267
6,034
Slack
Technologies
Inc
(
d),(e)
115,795
2,603
$
57,909
Telecommunications
-
1.76%
GCI
Liberty
Inc
(
d)
82,141
5,820
Motorola
Solutions
Inc
30,183
4,863
$
10,683
TOTAL
COMMON
STOCKS
$
606,323
Total
Investments
$
608,425
Other
Assets
and
Liabilities
- 0.04
%
237
TOTAL
NET
ASSETS
-
100.00%
$
608,662
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,850
or
0.30%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Portfolio
Summary (
unaudited)
Sector
Percent
Financial
28.05%
Consumer,
Cyclical
22.15%
Industrial
12.93%
Consumer,
Non-cyclical
11.64%
Technology
11.08%
Communications
11.06%
Utilities
2.02%
Basic
Materials
0.69%
Money
Market
Funds
0.34%
Other
Assets
and
Liabilities
0.04%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
4,942
$
85,882
$
90,572
$
252
$
4,942
$
85,882
$
90,572
$
252
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
15
$
—
$
—
$
—
$
15
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
Principal
Capital
Appreciation
Account
December
31,
2019
See
accompanying
notes.
187
INVESTMENT
COMPANIES
-
1.88%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.88%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
2,945,391
$
2,945
TOTAL
INVESTMENT
COMPANIES
$
2,945
COMMON
STOCKS
-
98.46%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
2.39%
Boeing
Co/The
2,296
748
Northrop
Grumman
Corp
5,778
1,988
Teledyne
Technologies
Inc
(
c)
2,915
1,010
$
3,746
Airlines
-
1.10%
Delta
Air
Lines
Inc
29,383
1,718
Apparel
-
1.58%
Deckers
Outdoor
Corp
(
c)
9,935
1,678
NIKE
Inc
7,932
803
$
2,481
Automobile
Manufacturers
-
0.80%
PACCAR
Inc
15,860
1,255
Banks
-
7.00%
JPMorgan
Chase
&
Co
45,290
6,314
PNC
Financial
Services
Group
Inc/The
16,125
2,574
US
Bancorp
35,156
2,084
$
10,972
Beverages
-
1.98%
Keurig
Dr
Pepper
Inc
13,695
397
PepsiCo
Inc
19,861
2,714
$
3,111
Chemicals
-
2.06%
DuPont
de
Nemours
Inc
11,526
740
FMC
Corp
18,729
1,869
HB
Fuller
Co
12,078
623
$
3,232
Commercial
Services
-
1.93%
Aaron's
Inc
35,669
2,037
PayPal
Holdings
Inc
(
c)
9,141
989
$
3,026
Computers
-
4.75%
Apple
Inc
25,338
7,440
Consumer
Products
-
0.96%
Church
&
Dwight
Co
Inc
21,377
1,504
Distribution
&
Wholesale
-
0.83%
IAA
Inc
(
c)
27,671
1,302
Diversified
Financial
Services
-
4.49%
Ameriprise
Financial
Inc
5,650
941
Charles
Schwab
Corp/The
24,532
1,167
Discover
Financial
Services
35,282
2,993
Visa
Inc
10,347
1,944
$
7,045
Electric
-
3.30%
NextEra
Energy
Inc
11,024
2,669
Xcel
Energy
Inc
39,512
2,509
$
5,178
Electronics
-
1.28%
Honeywell
International
Inc
11,287
1,998
Environmental
Control
-
0.11%
Waste
Connections
Inc
1,940
176
Food
-
1.58%
McCormick
&
Co
Inc/MD
6,055
1,028
Tyson
Foods
Inc
15,893
1,447
$
2,475
Hand
&
Machine
Tools
-
0.31%
Snap-on
Inc
2,855
484
Healthcare
-
Products
-
5.21%
Abbott
Laboratories
14,207
1,234
Edwards
Lifesciences
Corp
(
c)
4,155
969
Medtronic
PLC
21,982
2,494
Thermo
Fisher
Scientific
Inc
6,647
2,159
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Healthcare
-
Products
(continued)
Varian
Medical
Systems
Inc
(
c)
9,181
$
1,304
$
8,160
Healthcare
-
Services
-
2.16%
UnitedHealth
Group
Inc
5,950
1,749
Universal
Health
Services
Inc
11,415
1,638
$
3,387
Home
Builders
-
0.58%
Thor
Industries
Inc
12,312
915
Insurance
-
3.57%
Chubb
Ltd
9,027
1,405
Fidelity
National
Financial
Inc
48,526
2,201
Marsh
&
McLennan
Cos
Inc
17,795
1,982
$
5,588
Internet
-
7.27%
Alibaba
Group
Holding
Ltd
ADR
(c)
1,631
346
Alphabet
Inc
-
A
Shares
(
c)
3,210
4,299
Amazon.com
Inc
(
c)
2,130
3,936
Booking
Holdings
Inc
(
c)
191
392
Facebook
Inc
(
c)
11,788
2,420
$
11,393
Lodging
-
0.75%
Marriott
International
Inc/MD
7,733
1,171
Machinery
-
Diversified
-
0.92%
Deere
&
Co
8,277
1,434
Media
-
2.99%
Comcast
Corp
-
Class
A
43,674
1,964
Nexstar
Media
Group
Inc
7,506
880
Walt
Disney
Co/The
12,730
1,841
$
4,685
Miscellaneous
Manufacturers
-
0.40%
3M
Co
3,596
634
Oil
&
Gas
-
4.24%
Chevron
Corp
20,251
2,440
EOG
Resources
Inc
1,575
132
Royal
Dutch
Shell
PLC
-
B
shares
ADR
38,311
2,298
Valero
Energy
Corp
18,989
1,778
$
6,648
Pharmaceuticals
-
6.96%
Becton
Dickinson
and
Co
7,100
1,931
Bristol-Myers
Squibb
Co
29,464
1,891
Johnson
&
Johnson
12,082
1,762
Merck
&
Co
Inc
35,497
3,229
Pfizer
Inc
53,398
2,092
$
10,905
REITs
-
3.53%
Alexandria
Real
Estate
Equities
Inc
22,540
3,642
American
Tower
Corp
3,148
724
Extra
Space
Storage
Inc
11,080
1,170
$
5,536
Retail
-
3.46%
Costco
Wholesale
Corp
7,006
2,059
Home
Depot
Inc/The
8,209
1,793
Lululemon
Athletica
Inc
(
c)
4,092
948
Starbucks
Corp
7,173
631
$
5,431
Semiconductors
-
4.42%
Broadcom
Inc
4,995
1,579
Lam
Research
Corp
3,792
1,109
Microchip
Technology
Inc
11,539
1,208
NVIDIA
Corp
2,113
497
ON
Semiconductor
Corp
(
c)
34,310
837
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
29,266
1,700
$
6,930
Schedule
of
Investments
Principal
Capital
Appreciation
Account
December
31,
2019
See
accompanying
notes.
188
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
-
9.01%
Adobe
Inc
(
c)
5,577
$
1,839
Fair
Isaac
Corp
(
c)
3,784
1,418
Fidelity
National
Information
Services
Inc
16,132
2,244
Microsoft
Corp
48,598
7,664
ServiceNow
Inc
(
c)
3,418
965
$
14,130
Telecommunications
-
3.94%
Arista
Networks
Inc
(
c)
2,580
525
Cisco
Systems
Inc
34,979
1,677
T-Mobile
US
Inc
(
c)
18,426
1,445
Verizon
Communications
Inc
41,257
2,533
$
6,180
Toys,
Games
&
Hobbies
-
1.39%
Hasbro
Inc
20,626
2,178
Transportation
-
1.21%
Expeditors
International
of
Washington
Inc
13,013
1,015
Union
Pacific
Corp
4,909
888
$
1,903
TOTAL
COMMON
STOCKS
$
154,351
Total
Investments
$
157,296
Other
Assets
and
Liabilities
- (
0.34)%
(533)
TOTAL
NET
ASSETS
-
100.00%
$
156,763
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Current
yield
shown
is
as
of
period
end.
(c)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Sector
Percent
Consumer,
Non-cyclical
20.78%
Financial
18.59%
Technology
18.18%
Communications
14.20%
Consumer,
Cyclical
10.49%
Industrial
6.62%
Energy
4.24%
Utilities
3.30%
Basic
Materials
2.06%
Money
Market
Funds
1.88%
Other
Assets
and
Liabilities
(
0.34)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
2,989
$
27,319
$
27,363
$
2,945
$
2,989
$
27,319
$
27,363
$
2,945
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
61
$
—
$
—
$
—
$
61
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
Principal
LifeTime
2010
Account
December
31,
2019
See
accompanying
notes.
189
INVESTMENT
COMPANIES
-
100.02%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
41.86%
Blue
Chip
Fund
(
a)
34,780
$
931
Core
Fixed
Income
Fund
(
a)
762,729
7,452
Diversified
International
Fund
(
a)
93,086
1,198
Diversified
Real
Asset
Fund
(
a)
45,812
533
International
Small
Company
Fund
(
a)
34,153
390
LargeCap
Growth
Fund
I
(
a)
56,471
907
MidCap
Fund
(
a)
26,273
811
MidCap
Value
Fund
I
(
a)
33,639
481
SmallCap
Growth
Fund
I
(
a),(b)
19,565
264
SmallCap
Value
Fund
II
(
a)
19,828
218
$
13,185
Principal
Funds,
Inc.
Institutional
Class
-
58.16%
Bond
Market
Index
Fund
(
a)
425,427
4,795
Equity
Income
Fund
(
a)
22,047
752
High
Income
Fund
(
a)
219,570
2,075
Inflation
Protection
Fund
(
a)
156,428
1,353
LargeCap
S&P
500
Index
Fund
(
a)
83,383
1,639
LargeCap
Value
Fund
III
(
a)
44,605
759
Overseas
Fund
(
a)
117,694
1,177
Short-Term
Income
Fund
(
a)
469,505
5,770
$
18,320
TOTAL
INVESTMENT
COMPANIES
$
31,505
Total
Investments
$
31,505
Other
Assets
and
Liabilities
- (
0.02)%
(6)
TOTAL
NET
ASSETS
-
100.00%
$
31,499
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Fund
Type
Percent
Fixed
Income
Funds
71.88%
Domestic
Equity
Funds
21.47%
International
Equity
Funds
4.98%
Specialty
Funds
1.69%
Other
Assets
and
Liabilities
(
0.02)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2010
Account
December
31,
2019
See
accompanying
notes.
190
Affiliated
Securities
December
31,
2018
Purchases
(a
),(
b)
Sales
(a
),(
b)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
909
$
107
$
361
$
931
Bond
Market
Index
Fund
3,138
2,331
843
4,795
Core
Fixed
Income
Fund
—
7,757
267
7,452
Core
Plus
Bond
Account
6,111
641
7,125
—
Diversified
International
Fund
Class
R-6
—
1,733
308
1,198
Diversified
International
Fund
Institutional
Class
1,214
31
1,698
—
Diversified
Real
Asset
Fund
570
83
186
533
Equity
Income
Fund
722
100
225
752
Global
Multi-Strategy
Fund
1,925
108
2,141
—
High
Income
Fund
2,900
390
1,350
2,075
Inflation
Protection
Fund
1,777
185
712
1,353
International
Small
Company
Fund
380
52
123
390
LargeCap
Growth
Fund
I
898
133
338
907
LargeCap
S&P
500
Index
Fund
1,617
190
562
1,639
LargeCap
Value
Fund
III
746
112
232
759
MidCap
Fund
748
100
296
811
MidCap
Value
Fund
I
—
555
74
481
MidCap
Value
Fund
III
430
32
548
—
Overseas
Fund
1,220
160
393
1,177
Short-Term
Income
Account
6,128
278
6,502
—
Short-Term
Income
Fund
—
6,468
771
5,770
SmallCap
Growth
Fund
I
240
38
71
264
SmallCap
Value
Fund
II
220
21
68
218
$
31,893
$
21,605
$
25,194
$
31,505
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
7
$
91
$
35
$
185
Bond
Market
Index
Fund
113
5
—
164
Core
Fixed
Income
Fund
48
—
—
(38)
Core
Plus
Bond
Account
187
(265)
—
638
Diversified
International
Fund
Class
R-6
27
37
—
(264)
Diversified
International
Fund
Institutional
Class
—
3
—
450
Diversified
Real
Asset
Fund
13
12
—
54
Equity
Income
Fund
16
48
20
107
Global
Multi-Strategy
Fund
—
54
—
54
High
Income
Fund
160
(15)
—
150
Inflation
Protection
Fund
29
24
—
79
International
Small
Company
Fund
11
2
—
79
LargeCap
Growth
Fund
I
2
60
66
154
LargeCap
S&P
500
Index
Fund
32
130
29
264
LargeCap
Value
Fund
III
17
23
30
110
MidCap
Fund
5
88
33
171
MidCap
Value
Fund
I
10
—
13
—
MidCap
Value
Fund
III
6
—
—
86
Overseas
Fund
35
8
—
182
Short-Term
Income
Account
—
42
—
54
Short-Term
Income
Fund
100
4
—
69
SmallCap
Growth
Fund
I
—
11
18
46
SmallCap
Value
Fund
II
2
7
—
38
$
820
$
369
$
244
$
2,832
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
(b)
Purchases
and
Sales
include
transactions
related
to
the
acquisition
of
the
MidCap
Value
Fund
III
by
the
MidCap
Value
Fund
I.
Schedule
of
Investments
Principal
LifeTime
2020
Account
December
31,
2019
See
accompanying
notes.
191
INVESTMENT
COMPANIES
-
100.00%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
48.34%
Blue
Chip
Fund
(
a)
319,543
$
8,557
Core
Fixed
Income
Fund
(
a)
3,991,262
38,995
Diversified
International
Fund
(
a)
926,049
11,918
Diversified
Real
Asset
Fund
(
a)
289,670
3,372
International
Small
Company
Fund
(
a)
329,228
3,757
LargeCap
Growth
Fund
I
(
a)
530,410
8,518
MidCap
Fund
(
a)
242,087
7,471
MidCap
Value
Fund
I
(
a)
332,448
4,757
SmallCap
Growth
Fund
I
(
a),(b)
185,824
2,512
SmallCap
Value
Fund
II
(
a)
201,768
2,216
$
92,073
Principal
Funds,
Inc.
Institutional
Class
-
51.66%
Bond
Market
Index
Fund
(
a)
2,040,513
22,996
Equity
Income
Fund
(
a)
211,693
7,223
High
Income
Fund
(
a)
979,102
9,252
Inflation
Protection
Fund
(
a)
850,482
7,357
LargeCap
S&P
500
Index
Fund
(
a)
787,430
15,473
LargeCap
Value
Fund
III
(
a)
423,143
7,202
Overseas
Fund
(
a)
1,169,198
11,692
Short-Term
Income
Fund
(
a)
1,400,494
17,212
$
98,407
TOTAL
INVESTMENT
COMPANIES
$
190,480
Total
Investments
$
190,480
Other
Assets
and
Liabilities
- 0.00
%
(5)
TOTAL
NET
ASSETS
-
100.00%
$
190,475
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Fund
Type
Percent
Fixed
Income
Funds
56.56%
Domestic
Equity
Funds
33.56%
International
Equity
Funds
8.11%
Specialty
Funds
1.77%
Other
Assets
and
Liabilities
0.00%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2020
Account
December
31,
2019
See
accompanying
notes.
192
Affiliated
Securities
December
31,
2018
Purchases
(a
),(
b)
Sales
(a
),(
b)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
7,401
$
1,326
$
2,513
$
8,557
Bond
Market
Index
Fund
14,856
11,325
4,102
22,996
Core
Fixed
Income
Fund
—
40,661
1,467
38,995
Core
Plus
Bond
Account
29,308
5,414
36,595
—
Diversified
International
Fund
Class
R-6
—
17,441
3,120
11,918
Diversified
International
Fund
Institutional
Class
11,047
232
15,825
—
Diversified
Real
Asset
Fund
3,245
716
984
3,372
Equity
Income
Fund
6,379
1,278
1,872
7,223
Global
Multi-Strategy
Fund
8,687
663
9,844
—
High
Income
Fund
13,182
2,215
6,763
9,252
Inflation
Protection
Fund
6,906
1,620
1,595
7,357
International
Small
Company
Fund
3,385
677
1,067
3,757
LargeCap
Growth
Fund
I
7,561
1,581
2,476
8,518
LargeCap
S&P
500
Index
Fund
13,526
2,459
3,970
15,473
LargeCap
Value
Fund
III
6,481
1,389
1,862
7,202
MidCap
Fund
6,207
1,227
2,195
7,471
MidCap
Value
Fund
I
—
5,451
917
4,757
MidCap
Value
Fund
III
4,052
190
4,836
—
Overseas
Fund
11,082
2,164
3,358
11,692
Short-Term
Income
Account
16,035
431
16,721
—
Short-Term
Income
Fund
—
19,775
2,756
17,212
SmallCap
Growth
Fund
I
2,156
481
643
2,512
SmallCap
Value
Fund
II
1,994
325
529
2,216
$
173,490
$
119,041
$
126,010
$
190,480
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
66
$
457
$
321
$
1,886
Bond
Market
Index
Fund
544
19
—
898
Core
Fixed
Income
Fund
250
(2)
—
(197)
Core
Plus
Bond
Account
990
(774)
—
2,647
Diversified
International
Fund
Class
R-6
270
75
—
(2,478)
Diversified
International
Fund
Institutional
Class
—
4
—
4,542
Diversified
Real
Asset
Fund
80
(7)
—
402
Equity
Income
Fund
149
215
191
1,223
Global
Multi-Strategy
Fund
—
140
—
354
High
Income
Fund
729
(66)
—
684
Inflation
Protection
Fund
129
2
—
424
International
Small
Company
Fund
106
5
—
757
LargeCap
Growth
Fund
I
22
286
620
1,566
LargeCap
S&P
500
Index
Fund
307
127
273
3,331
LargeCap
Value
Fund
III
162
125
288
1,069
MidCap
Fund
49
267
303
1,965
MidCap
Value
Fund
I
103
(13)
136
236
MidCap
Value
Fund
III
62
6
—
588
Overseas
Fund
350
2
—
1,802
Short-Term
Income
Account
—
26
—
229
Short-Term
Income
Fund
281
5
—
188
SmallCap
Growth
Fund
I
—
61
177
457
SmallCap
Value
Fund
II
20
26
—
400
$
4,669
$
986
$
2,309
$
22,973
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
(b)
Purchases
and
Sales
include
transactions
related
to
the
acquisition
of
the
MidCap
Value
Fund
III
by
the
MidCap
Value
Fund
I.
Schedule
of
Investments
Principal
LifeTime
2030
Account
December
31,
2019
See
accompanying
notes.
193
INVESTMENT
COMPANIES
-
100.00%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
55.31%
Blue
Chip
Fund
(
a)
201,498
$
5,396
Core
Fixed
Income
Fund
(
a)
3,227,568
31,533
Diversified
International
Fund
(
a)
1,136,406
14,625
Diversified
Real
Asset
Fund
(
a)
288,800
3,362
International
Small
Company
Fund
(
a)
437,751
4,995
LargeCap
Growth
Fund
I
(
a)
972,955
15,626
MidCap
Fund
(
a)
306,628
9,463
MidCap
Value
Fund
I
(
a)
446,963
6,396
Origin
Emerging
Markets
Fund
(
a)
274,227
3,159
SmallCap
Growth
Fund
I
(
a),(b)
245,361
3,317
SmallCap
Value
Fund
II
(
a)
263,972
2,898
$
100,770
Principal
Funds,
Inc.
Institutional
Class
-
44.69%
Bond
Market
Index
Fund
(
a)
1,509,345
17,010
Equity
Income
Fund
(
a)
142,664
4,868
High
Income
Fund
(
a)
802,361
7,582
Inflation
Protection
Fund
(
a)
442,526
3,828
LargeCap
S&P
500
Index
Fund
(
a)
1,004,957
19,747
LargeCap
Value
Fund
III
(
a)
819,884
13,955
Overseas
Fund
(
a)
1,441,773
14,418
$
81,408
TOTAL
INVESTMENT
COMPANIES
$
182,178
Total
Investments
$
182,178
Other
Assets
and
Liabilities
- 0.00
%
(6)
TOTAL
NET
ASSETS
-
100.00%
$
182,172
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
44.82%
Fixed
Income
Funds
40.94%
International
Equity
Funds
12.39%
Specialty
Funds
1.85%
Other
Assets
and
Liabilities
0.00%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2030
Account
December
31,
2019
See
accompanying
notes.
194
Affiliated
Securities
December
31,
2018
Purchases
(a
),(
b)
Sales
(a
),(
b)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
4,165
$
962
$
1,083
$
5,396
Bond
Market
Index
Fund
9,760
8,361
1,628
17,010
Core
Fixed
Income
Fund
—
32,480
791
31,533
Core
Plus
Bond
Account
19,749
4,064
25,065
—
Diversified
International
Fund
Class
R-6
—
15,758
1,905
14,625
Diversified
International
Fund
Institutional
Class
11,512
407
13,519
—
Diversified
Real
Asset
Fund
2,743
789
518
3,362
Equity
Income
Fund
3,830
943
796
4,868
Global
Multi-Strategy
Fund
6,259
498
7,125
—
High
Income
Fund
7,946
1,834
2,573
7,582
Inflation
Protection
Fund
3,142
952
463
3,828
International
Emerging
Markets
Fund
1,385
82
1,503
—
International
Small
Company
Fund
3,807
990
705
4,995
LargeCap
Growth
Fund
I
12,275
3,310
3,014
15,626
LargeCap
S&P
500
Index
Fund
15,471
3,621
3,431
19,747
LargeCap
Value
Fund
III
11,001
3,007
2,127
13,955
MidCap
Fund
7,031
1,754
1,901
9,463
MidCap
Value
Fund
I
—
6,762
585
6,396
MidCap
Value
Fund
III
4,740
377
5,876
—
Origin
Emerging
Markets
Fund
1,340
1,913
627
3,159
Overseas
Fund
11,543
2,918
2,074
14,418
SmallCap
Growth
Fund
I
2,454
699
431
3,317
SmallCap
Value
Fund
II
2,267
491
371
2,898
$
142,420
$
92,972
$
78,111
$
182,178
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
42
$
90
$
199
$
1,262
Bond
Market
Index
Fund
397
1
—
516
Core
Fixed
Income
Fund
198
(1)
—
(155)
Core
Plus
Bond
Account
713
348
—
904
Diversified
International
Fund
Class
R-6
326
1
—
771
Diversified
International
Fund
Institutional
Class
—
—
—
1,600
Diversified
Real
Asset
Fund
79
—
—
348
Equity
Income
Fund
95
1
127
890
Global
Multi-Strategy
Fund
—
8
—
360
High
Income
Fund
511
(17)
—
392
Inflation
Protection
Fund
63
—
—
197
International
Emerging
Markets
Fund
—
(69)
—
105
International
Small
Company
Fund
141
—
—
903
LargeCap
Growth
Fund
I
39
32
1,125
3,023
LargeCap
S&P
500
Index
Fund
388
19
344
4,067
LargeCap
Value
Fund
III
310
2
551
2,072
MidCap
Fund
61
49
378
2,530
MidCap
Value
Fund
I
136
—
180
219
MidCap
Value
Fund
III
75
(1)
—
760
Origin
Emerging
Markets
Fund
55
—
—
533
Overseas
Fund
429
—
—
2,031
SmallCap
Growth
Fund
I
—
(2)
230
597
SmallCap
Value
Fund
II
26
1
—
510
$
4,084
$
462
$
3,134
$
24,435
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
(b)
Purchases
and
Sales
include
transactions
related
to
the
acquisition
of
the
MidCap
Value
Fund
III
by
the
MidCap
Value
Fund
I.
Schedule
of
Investments
Principal
LifeTime
2040
Account
December
31,
2019
See
accompanying
notes.
195
INVESTMENT
COMPANIES
-
100.01%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
51.12%
Blue
Chip
Fund
(
a)
111,504
$
2,986
Core
Fixed
Income
Fund
(
a)
924,949
9,037
Diversified
International
Fund
(
a)
645,403
8,306
International
Small
Company
Fund
(
a)
232,986
2,658
LargeCap
Growth
Fund
I
(
a)
543,339
8,726
MidCap
Value
Fund
I
(
a)
283,537
4,057
Origin
Emerging
Markets
Fund
(
a)
208,182
2,398
Real
Estate
Securities
Fund
(
a)
72,562
2,015
SmallCap
Growth
Fund
I
(
a),(b)
135,830
1,837
SmallCap
Value
Fund
II
(
a)
149,062
1,637
$
43,657
Principal
Funds,
Inc.
Institutional
Class
-
48.89%
Bond
Market
Index
Fund
(
a)
437,432
4,930
Equity
Income
Fund
(
a)
79,301
2,706
High
Income
Fund
(
a)
272,428
2,574
LargeCap
S&P
500
Index
Fund
(
a)
561,922
11,042
LargeCap
Value
Fund
III
(
a)
463,222
7,884
MidCap
Growth
Fund
III
(
a),(b)
377,079
4,465
Overseas
Fund
(
a)
815,240
8,152
$
41,753
TOTAL
INVESTMENT
COMPANIES
$
85,410
Total
Investments
$
85,410
Other
Assets
and
Liabilities
- (
0.01)%
(5)
TOTAL
NET
ASSETS
-
100.00%
$
85,405
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
55.46%
Fixed
Income
Funds
29.08%
International
Equity
Funds
15.47%
Other
Assets
and
Liabilities
(
0.01)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2040
Account
December
31,
2019
See
accompanying
notes.
196
Affiliated
Securities
December
31,
2018
Purchases
(a
),(
b)
Sales
(a
),(
b)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
2,222
$
627
$
585
$
2,986
Bond
Market
Index
Fund
3,098
2,281
612
4,930
Core
Fixed
Income
Fund
—
9,384
302
9,037
Core
Plus
Bond
Account
6,561
1,550
8,525
—
Diversified
International
Fund
Class
R-6
—
8,799
911
8,306
Diversified
International
Fund
Institutional
Class
6,277
284
7,450
—
Equity
Income
Fund
2,056
617
449
2,706
High
Income
Fund
2,331
694
559
2,574
International
Emerging
Markets
Fund
911
72
1,007
—
International
Small
Company
Fund
1,957
626
392
2,658
LargeCap
Growth
Fund
I
6,553
2,131
1,586
8,726
LargeCap
S&P
500
Index
Fund
8,255
2,393
1,805
11,042
LargeCap
Value
Fund
III
5,981
1,968
1,194
7,884
MidCap
Growth
Fund
III
3,267
1,151
773
4,465
MidCap
Value
Fund
I
—
4,370
387
4,057
MidCap
Value
Fund
III
2,913
292
3,732
—
Origin
Emerging
Markets
Fund
878
1,352
206
2,398
Overseas
Fund
6,294
1,954
1,215
8,152
Real
Estate
Securities
Fund
1,306
610
261
2,015
SmallCap
Growth
Fund
I
1,306
452
236
1,837
SmallCap
Value
Fund
II
1,236
338
218
1,637
$
63,402
$
41,945
$
32,405
$
85,410
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
23
$
24
$
109
$
698
Bond
Market
Index
Fund
114
—
—
163
Core
Fixed
Income
Fund
55
(1)
—
(44)
Core
Plus
Bond
Account
239
107
—
307
Diversified
International
Fund
Class
R-6
184
(1)
—
419
Diversified
International
Fund
Institutional
Class
—
(1)
—
890
Equity
Income
Fund
52
2
70
480
High
Income
Fund
163
(1)
—
109
International
Emerging
Markets
Fund
—
(221)
—
245
International
Small
Company
Fund
75
1
—
466
LargeCap
Growth
Fund
I
22
19
625
1,609
LargeCap
S&P
500
Index
Fund
216
4
192
2,195
LargeCap
Value
Fund
III
174
—
309
1,129
MidCap
Growth
Fund
III
—
1
341
819
MidCap
Value
Fund
I
86
—
114
74
MidCap
Value
Fund
III
47
—
—
527
Origin
Emerging
Markets
Fund
42
—
—
374
Overseas
Fund
241
2
—
1,117
Real
Estate
Securities
Fund
40
1
17
359
SmallCap
Growth
Fund
I
—
—
127
315
SmallCap
Value
Fund
II
15
—
—
281
$
1,788
$
(64)
$
1,904
$
12,532
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
(b)
Purchases
and
Sales
include
transactions
related
to
the
acquisition
of
the
MidCap
Value
Fund
III
by
the
MidCap
Value
Fund
I.
Schedule
of
Investments
Principal
LifeTime
2050
Account
December
31,
2019
See
accompanying
notes.
197
INVESTMENT
COMPANIES
-
100.02%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
50.63%
Blue
Chip
Fund
(
a)
54,699
$
1,465
Core
Fixed
Income
Fund
(
a)
249,395
2,437
Diversified
International
Fund
(
a)
320,727
4,128
International
Small
Company
Fund
(
a)
113,409
1,294
LargeCap
Growth
Fund
I
(
a)
271,152
4,355
MidCap
Value
Fund
I
(
a)
144,327
2,065
Origin
Emerging
Markets
Fund
(
a)
106,385
1,225
Real
Estate
Securities
Fund
(
a)
32,722
909
SmallCap
Growth
Fund
I
(
a),(b)
69,635
941
SmallCap
Value
Fund
II
(
a)
78,886
866
$
19,685
Principal
Funds,
Inc.
Institutional
Class
-
49.39%
Bond
Market
Index
Fund
(
a)
107,715
1,214
Equity
Income
Fund
(
a)
39,255
1,339
High
Income
Fund
(
a)
81,819
773
LargeCap
S&P
500
Index
Fund
(
a)
283,318
5,567
LargeCap
Value
Fund
III
(
a)
233,580
3,976
MidCap
Growth
Fund
III
(
a),(b)
191,622
2,269
Overseas
Fund
(
a)
406,418
4,064
$
19,202
TOTAL
INVESTMENT
COMPANIES
$
38,887
Total
Investments
$
38,887
Other
Assets
and
Liabilities
- (
0.02)%
(6)
TOTAL
NET
ASSETS
-
100.00%
$
38,881
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
61.10%
Fixed
Income
Funds
21.99%
International
Equity
Funds
16.93%
Other
Assets
and
Liabilities
(
0.02)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2050
Account
December
31,
2019
See
accompanying
notes.
198
Affiliated
Securities
December
31,
2018
Purchases
(a
),(
b)
Sales
(a
),(
b)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
1,206
$
219
$
344
$
1,465
Bond
Market
Ind
ex
Fund
669
735
213
1,214
Core
Fixed
Income
Fund
—
2,542
93
2,437
Core
Plus
Bond
Account
1,656
249
2,008
—
Diversified
International
Fund
Class
R-6
—
4,522
583
4,128
Diversified
International
Fund
Institutional
Class
3,451
94
4,050
—
Equity
Income
Fund
1,125
215
257
1,339
High
Income
Fund
703
203
164
773
International
Emerging
Markets
Fund
514
22
550
—
International
Small
Company
Fund
1,055
206
210
1,294
LargeCap
Growth
Fund
I
3,589
792
911
4,355
LargeCap
S&P
500
Index
Fund
4,520
832
960
5,567
LargeCap
Value
Fund
III
3,309
713
660
3,976
MidCap
Growth
Fund
III
1,828
430
446
2,269
MidCap
Value
Fund
I
—
2,224
210
2,065
MidCap
Value
Fund
III
1,606
96
1,980
—
Origin
Emerging
Markets
Fund
496
662
135
1,225
Overseas
Fund
3,459
657
646
4,064
Real
Estate
Securities
Fund
653
210
131
909
SmallCap
Growth
Fund
I
739
169
146
941
SmallCap
Value
Fund
II
706
121
118
866
$
31,284
$
15,913
$
14,815
$
38,887
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
11
$
34
$
54
$
350
Bond
Market
Index
Fund
28
—
—
23
Core
Fixed
Income
Fund
15
—
—
(12)
Core
Plus
Bond
Account
57
9
—
94
Diversified
International
Fund
Class
R-6
92
—
—
189
Diversified
International
Fund
Institutional
Class
—
—
—
505
Equity
Income
Fund
27
2
35
254
High
Income
Fund
52
—
—
31
International
Emerging
Markets
Fund
—
(113)
—
127
International
Small
Company
Fund
37
—
—
243
LargeCap
Growth
Fund
I
11
36
314
849
LargeCap
S&P
500
Index
Fund
109
6
97
1,169
LargeCap
Value
Fund
III
89
(1)
157
615
MidCap
Growth
Fund
III
—
2
175
455
MidCap
Value
Fund
I
44
—
58
51
MidCap
Value
Fund
III
23
—
—
278
Origin
Emerging
Markets
Fund
21
1
—
201
Overseas
Fund
121
—
—
594
Real
Estate
Securities
Fund
19
1
8
176
SmallCap
Growth
Fund
I
—
(1)
66
180
SmallCap
Value
Fund
II
8
(1)
—
158
$
764
$
(25)
$
964
$
6,530
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
(b)
Purchases
and
Sales
include
transactions
related
to
the
acquisition
of
the
MidCap
Value
Fund
III
by
the
MidCap
Value
Fund
I.
Schedule
of
Investments
Principal
LifeTime
2060
Account
December
31,
2019
See
accompanying
notes.
199
INVESTMENT
COMPANIES
-
100.06%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
50.15%
Blue
Chip
Fund
(
a)
11,811
$
317
Core
Fixed
Income
Fund
(
a)
27,346
267
Diversified
International
Fund
(
a)
72,271
930
International
Small
Company
Fund
(
a)
24,988
285
LargeCap
Growth
Fund
I
(
a)
58,017
932
MidCap
Value
Fund
I
(
a)
32,288
462
Origin
Emerging
Markets
Fund
(
a)
25,680
296
Real
Estate
Securities
Fund
(
a)
6,843
190
SmallCap
Growth
Fund
I
(
a),(b)
15,315
207
SmallCap
Value
Fund
II
(
a)
17,485
192
$
4,078
Principal
Funds,
Inc.
Institutional
Class
-
49.91%
Bond
Market
Index
Fund
(
a)
14,429
163
Equity
Income
Fund
(
a)
8,625
294
High
Income
Fund
(
a)
13,539
128
LargeCap
S&P
500
Index
Fund
(
a)
60,760
1,194
LargeCap
Value
Fund
III
(
a)
50,791
864
MidCap
Growth
Fund
III
(
a),(b)
42,002
497
Overseas
Fund
(
a)
91,768
918
$
4,058
TOTAL
INVESTMENT
COMPANIES
$
8,136
Total
Investments
$
8,136
Other
Assets
and
Liabilities
- (
0.06)%
(5)
TOTAL
NET
ASSETS
-
100.00%
$
8,131
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Fund
Type
Percent
Domestic
Equity
Funds
63.33%
International
Equity
Funds
18.43%
Fixed
Income
Funds
18.30%
Other
Assets
and
Liabilities
(
0.06)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
2060
Account
December
31,
2019
See
accompanying
notes.
200
Affiliated
Securities
December
31,
2018
Purchases
(a
),(
b)
Sales
(a
),(
b)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
187
$
156
$
95
$
317
Bond
Market
Index
Fund
27
175
40
163
Core
Fixed
Income
Fund
—
278
10
267
Core
Plus
Bond
Account
103
97
209
—
Diversified
International
Fund
Class
R-6
—
1,093
228
930
Diversified
International
Fund
Institutional
Class
543
88
696
—
Equity
Income
Fund
175
155
83
294
High
Income
Fund
102
84
62
128
International
Emerging
Markets
Fund
87
29
117
—
International
Small
Company
Fund
160
160
78
285
LargeCap
Growth
Fund
I
555
493
268
932
LargeCap
S&P
500
Index
Fund
700
614
333
1,194
LargeCap
Value
Fund
III
512
477
235
864
MidCap
Growth
Fund
III
287
274
143
497
MidCap
Value
Fund
I
—
570
92
462
MidCap
Value
Fund
III
257
95
427
—
Origin
Emerging
Markets
Fund
84
237
68
296
Overseas
Fund
544
522
257
918
Real
Estate
Securities
Fund
99
113
52
190
SmallCap
Growth
Fund
I
119
111
53
207
SmallCap
Value
Fund
II
112
101
49
192
$
4,653
$
5,922
$
3,595
$
8,136
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
2
$
2
$
11
$
67
Bond
Market
Index
Fund
4
—
—
1
Core
Fixed
Income
Fund
2
—
—
(1)
Core
Plus
Bond
Account
5
3
—
6
Diversified
International
Fund
Class
R-6
20
—
—
65
Diversified
International
Fund
Institutional
Class
—
—
—
65
Equity
Income
Fund
5
—
7
47
High
Income
Fund
8
—
—
4
International
Emerging
Markets
Fund
—
(8)
—
9
International
Small
Company
Fund
8
—
—
43
LargeCap
Growth
Fund
I
2
2
64
150
LargeCap
S&P
500
Index
Fund
23
2
20
211
LargeCap
Value
Fund
III
18
1
33
109
MidCap
Growth
Fund
III
—
—
37
79
MidCap
Value
Fund
I
9
—
12
(16)
MidCap
Value
Fund
III
5
—
—
75
Origin
Emerging
Markets
Fund
5
—
—
43
Overseas
Fund
27
1
—
108
Real
Estate
Securities
Fund
4
—
2
30
SmallCap
Growth
Fund
I
—
—
14
30
SmallCap
Value
Fund
II
1
—
—
28
$
148
$
3
$
200
$
1,153
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
(b)
Purchases
and
Sales
include
transactions
related
to
the
acquisition
of
the
MidCap
Value
Fund
III
by
the
MidCap
Value
Fund
I.
Schedule
of
Investments
Principal
LifeTime
Strategic
Income
Account
December
31,
2019
See
accompanying
notes.
201
INVESTMENT
COMPANIES
-
100.02%
Shares
Held
Value
(000's)
Principal
Funds,
Inc.
Class
R-6
-
39.97%
Blue
Chip
Fund
(a)
40,205
$
1,077
Core
Fixed
Income
Fund
(a)
701,276
6,851
Diversified
International
Fund
(a)
57,238
737
Diversified
Real
Asset
Fund
(a)
43,055
501
International
Small
Company
Fund
(a)
21,209
242
MidCap
Fund
(a)
25,863
798
SmallCap
Growth
Fund
I
(a),(b)
11,477
155
SmallCap
Value
Fund
II
(a)
13,023
143
$
10,504
Principal
Funds,
Inc.
Institutional
Class
-
60.05%
Bond
Market
Index
Fund
(a)
388,446
4,378
Equity
Income
Fund
(a)
26,958
920
High
Income
Fund
(a)
208,521
1,971
Inflation
Protection
Fund
(a)
139,039
1,203
LargeCap
S&P
500
Index
Fund
(a)
49,892
980
Overseas
Fund
(a)
73,006
730
Short-Term
Income
Fund
(a)
455,610
5,599
$
15,781
TOTAL
INVESTMENT
COMPANIES
$
26,285
Total
Investments
$
26,285
Other
Assets
and
Liabilities
- (0.02)%
(6)
TOTAL
NET
ASSETS
-
100.00%
$
26,279
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Non-income
producing
security
Portfolio
Summary (unaudited)
Fund
Type
Percent
Fixed
Income
Funds
78.91%
Domestic
Equity
Funds
15.50%
International
Equity
Funds
3.70%
Specialty
Funds
1.91%
Other
Assets
and
Liabilities
(0.02)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Principal
LifeTime
Strategic
Income
Account
December
31,
2019
See
accompanying
notes.
202
Affiliated
Securities
December
31,
2018
Purchases
(a)
Sales
(a)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
800
$
242
$
225
$
1,077
Bond
Market
Index
Fund
2,391
2,285
424
4,378
Core
Fixed
Income
Fund
—
7,104
219
6,851
Core
Plus
Bond
Account
4,624
1,429
6,341
—
Diversified
International
Fund
Class
R-6
—
850
75
737
Diversified
International
Fund
Institutional
Class
521
20
692
—
Diversified
Real
Asset
Fund
369
166
81
501
Equity
Income
Fund
662
235
135
920
Global
Multi-Strategy
Fund
1,443
203
1,731
—
High
Income
Fund
1,941
644
704
1,971
Inflation
Protection
Fund
976
329
163
1,203
International
Small
Company
Fund
165
68
32
242
LargeCap
S&P
500
Index
Fund
728
227
169
980
MidCap
Fund
540
196
137
798
Overseas
Fund
523
207
97
730
Short-Term
Income
Account
4,766
414
5,25
5
—
Short-Term
Income
Fund
—
6,010
473
5,599
SmallCap
Growth
Fund
I
111
42
24
155
SmallCap
Value
Fund
II
106
32
19
143
$
20,666
$
20,703
$
16,99
6
$
26,285
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
8
$
13
$
40
$
247
Bond
Market
Index
Fund
102
—
—
126
Core
Fixed
Income
Fund
42
(1)
—
(33)
Core
Plus
Bond
Account
182
(236)
—
524
Diversified
International
Fund
Class
R-6
17
1
—
(39)
Diversified
International
Fund
Institutional
Class
—
1
—
150
Diversified
Real
Asset
Fund
12
—
—
47
Equity
Income
Fund
17
2
24
156
Global
Multi-Strategy
Fund
—
39
—
46
High
Income
Fund
129
(4)
—
94
Inflation
Protection
Fund
21
—
—
61
International
Small
Company
Fund
7
—
—
41
LargeCap
S&P
500
Index
Fund
19
1
17
193
MidCap
Fund
5
4
32
195
Overseas
Fund
22
—
—
97
Short-Term
Income
Account
—
8
7
—
(12)
Short-Term
Income
Fund
91
—
—
62
SmallCap
Growth
Fund
I
—
—
11
26
SmallCap
Value
Fund
II
1
—
—
24
$
675
$
(9
3
)
$
124
$
2,005
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
Schedule
of
Investments
Real
Estate
Securities
Account
December
31,
2019
See
accompanying
notes.
203
INVESTMENT
COMPANIES
-
0.70%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.70%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
1,130,553
$
1,13
0
TOTAL
INVESTMENT
COMPANIES
$
1,13
0
COMMON
STOCKS
-
98.92%
Shares
Held
Value
(000's)
Lodging
-
1.17%
Hilton
Worldwide
Holdings
Inc
17,109
1,897
REITs
-
95.12%
Alexandria
Real
Estate
Equities
Inc
41,728
6,742
American
Homes
4
Rent
177,315
4,647
American
Tower
Corp
6,651
1,529
Americold
Realty
Trust
58,357
2,046
Apartment
Investment
&
Management
Co
78,908
4,076
AvalonBay
Communities
Inc
42,495
8,911
Boston
Properties
Inc
33,747
4,652
Brandywine
Realty
Trust
44,839
706
Cousins
Properties
Inc
89,067
3,670
Crown
Castle
International
Corp
6,771
962
CubeSmart
72,374
2,278
Duke
Realty
Corp
70,540
2,446
EPR
Properties
39,987
2,825
Equinix
Inc
18,509
10,804
Equity
LifeStyle
Properties
Inc
40,600
2,858
Equity
Residential
20,657
1,672
Essential
Properties
Realty
Trust
Inc
60,413
1,499
Essex
Property
Trust
Inc
22,849
6,874
Extra
Space
Storage
Inc
34,830
3,679
First
Industrial
Realty
Trust
Inc
30,552
1,268
Healthcare
Realty
Trust
Inc
57,150
1,907
Healthcare
Trust
of
America
Inc
179,956
5,449
Healthpeak
Properties
Inc
90,467
3,118
Host
Hotels
&
Resorts
Inc
146,850
2,724
Invitation
Homes
Inc
282,202
8,458
Kilroy
Realty
Corp
43,031
3,610
Park
Hotels
&
Resorts
Inc
54,240
1,403
Prologis
Inc
141,062
12,574
Public
Storage
10,682
2,275
Regency
Centers
Corp
71,491
4,510
Sabra
Health
Care
REIT
Inc
86,880
1,854
Saul
Centers
Inc
13,384
706
Simon
Property
Group
Inc
32,465
4,836
STORE
Capital
Corp
130,800
4,871
Sun
Communities
Inc
33,510
5,030
Sunstone
Hotel
Investors
Inc
101,331
1,411
Taubman
Centers
Inc
24,460
760
Terreno
Realty
Corp
54,610
2,957
VICI
Properties
Inc
93,774
2,396
Welltower
Inc
98,545
8,059
Weyerhaeuser
Co
32,570
984
$
154,036
Software
-
2.63%
InterXion
Holding
NV
(
c)
50,801
4,258
TOTAL
COMMON
STOCKS
$
160,191
Total
Investments
$
161,32
1
Other
Assets
and
Liabilities
- 0.38
%
60
9
TOTAL
NET
ASSETS
-
100.00%
$
161,930
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Current
yield
shown
is
as
of
period
end.
(c)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Sector
Percent
Financial
95.12%
Technology
2.63%
Consumer,
Cyclical
1.17%
Money
Market
Funds
0.70%
Other
Assets
and
Liabilities
0.38%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
911
$
24,54
8
$
24,329
$
1,13
0
$
911
$
24,54
8
$
24,329
$
1,13
0
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
18
$
—
$
—
$
—
$
18
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
SAM
Balanced
Portfolio
December
31,
2019
See
accompanying
notes.
204
INVESTMENT
COMPANIES
-
99.91%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.39%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
2,721,275
$
2,721
Principal
Exchange-Traded
Funds
-
20.25%
Principal
Active
Global
Dividend
Income
ETF
(
a)
1,219,500
36,652
Principal
Active
Income
ETF
(
a)
235,100
9,639
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
205,200
5,329
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
2,304,200
72,121
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
544,600
17,732
$
141,473
Principal
Funds,
Inc.
Class
R-6
-
50.27%
Blue
Chip
Fund
(
a)
2,392,691
64,076
Core
Fixed
Income
Fund
(
a)
8,626,058
84,277
Diversified
International
Fund
(
a)
6,395,534
82,310
Diversified
Real
Asset
Fund
(
a)
1,891,076
22,012
Edge
MidCap
Fund
(
a)
1,891,272
29,239
Global
Real
Estate
Securities
Fund
(
a)
1,944,690
20,186
High
Yield
Fund
(
a)
1,418,242
10,183
International
Small
Company
Fund
(
a)
895,962
10,223
Origin
Emerging
Markets
Fund
(
a)
899,462
10,362
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
1,774,868
18,459
$
351,327
Principal
Funds,
Inc.
Institutional
Class
-
9.06%
Inflation
Protection
Fund
(
a)
1,172,855
10,145
Short-Term
Income
Fund
(
a)
4,324,868
53,153
$
63,298
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
19.94%
Equity
Income
Account
(
a)
3,289,560
92,733
Government
&
High
Quality
Bond
Account
(
a)
4,754,341
46,640
$
139,373
TOTAL
INVESTMENT
COMPANIES
$
698,192
Total
Investments
$
698,192
Other
Assets
and
Liabilities
- 0.09
%
638
TOTAL
NET
ASSETS
-
100.00%
$
698,830
(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
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
45.81%
Domestic
Equity
Funds
39.48%
International
Equity
Funds
11.08%
Specialty
Funds
3.15%
Money
Market
Funds
0.39%
Other
Assets
and
Liabilities
0.09%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Balanced
Portfolio
December
31,
2019
See
accompanying
notes.
205
Affiliated
Securities
December
31,
2018
Purchases
(a)
Sales
(a)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
54,795
$
8,957
$
16,592
$
64,076
Core
Fixed
Income
Fund
—
89,332
7,198
84,277
Diversified
International
Fund
Class
R-6
—
84,482
9,99
2
82,310
Diversified
International
Fund
Institutional
Class
71,127
936
78,482
—
Diversified
Real
Asset
Fund
22,409
736
3,795
22,012
Edge
MidCap
Fund
24,457
3,028
5,093
29,239
Equity
Income
Account
80,186
7,973
13,65
2
92,733
Global
Multi-Strategy
Fund
26,336
14
27,843
—
Global
Real
Estate
Securities
Fund
20,436
2,203
5,883
20,186
Government
&
High
Quality
Bond
Account
40,125
12,055
6,808
46,640
High
Yield
Fund
10,242
841
1,616
10,183
Income
Account
79,967
262
83,449
—
Inflation
Protection
Fund
11,152
299
1,963
10,145
International
Emerging
Markets
Fund
8,258
6
9,276
—
International
Small
Company
Fund
7,392
1,823
795
10,223
Origin
Emerging
Markets
Fund
—
10,355
597
10,362
Principal
Active
Global
Dividend
Income
ETF
30,012
—
489
36,652
Principal
Active
Income
ETF
8,651
28
1
—
9,639
Principal
Government
Money
Market
Fund
1.41%
2,067
16,957
16,303
2,721
Principal
Investment
Grade
Corporate
Active
ETF
10,579
—
5,921
5,329
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
66,603
—
10,486
72,121
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
14,004
1,23
3
—
17,732
Real
Estate
Debt
Income
Fund
7,387
161
7,89
3
—
Short-Term
Income
Fund
50,441
10,045
8,477
53,153
Spectrum
Preferred
and
Capital
Securities
Income
Fund
17,967
1,577
2,958
18,459
$
664,593
$
253,55
6
$
325,56
1
$
698,192
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
496
$
1,188
$
2,391
$
15,728
Core
Fixed
Income
Fund
1,525
75
—
2,068
Diversified
International
Fund
Class
R-6
1,8
60
12
7
—
7,693
Diversified
International
Fund
Institutional
Class
—
(19)
—
6,438
Diversified
Real
Asset
Fund
520
98
—
2,564
Edge
MidCap
Fund
297
183
861
6,664
Equity
Income
Account
2,00
8
1,63
2
1,993
16,594
Global
Multi-Strategy
Fund
—
1,490
—
3
Global
Real
Estate
Securities
Fund
692
319
587
3,111
Government
&
High
Quality
Bond
Account
1,226
(122)
—
1,390
High
Yield
Fund
630
10
—
706
Income
Account
—
7,339
—
(4,119)
Inflation
Protection
Fund
191
(22)
—
679
International
Emerging
Markets
Fund
—
1,749
—
(737)
International
Small
Company
Fund
290
23
—
1,780
Origin
Emerging
Markets
Fund
183
5
—
599
Principal
Active
Global
Dividend
Income
ETF
1,019
(36)
—
7,165
Principal
Active
Income
ETF
454
—
—
707
Principal
Government
Money
Market
Fund
1.41%
50
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
417
152
45
519
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
1,586
718
—
15,286
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
235
—
—
2,495
Real
Estate
Debt
Income
Fund
16
0
15
4
—
191
Short-Term
Income
Fund
1,242
(30)
—
1,174
Spectrum
Preferred
and
Capital
Securities
Income
Fund
939
(74)
—
1,947
$
16,0
2
0
$
14,9
5
9
$
5,877
$
90,645
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
December
31,
2019
See
accompanying
notes.
206
INVESTMENT
COMPANIES
-
99.95%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.31%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
579,799
$
580
Principal
Exchange-Traded
Funds
-
13.98%
Principal
Active
Global
Dividend
Income
ETF
(
a)
133,000
3,997
Principal
Active
Income
ETF
(
a)
126,800
5,199
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
73,400
1,906
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
396,800
12,420���
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
91,200
2,969
$
26,491
Principal
Funds,
Inc.
Class
R-6
-
52.43%
Blue
Chip
Fund
(
a)
465,985
12,479
Core
Fixed
Income
Fund
(
a)
3,529,993
34,488
Diversified
International
Fund
(
a)
1,230,109
15,831
Diversified
Real
Asset
Fund
(
a)
464,580
5,408
Edge
MidCap
Fund
(
a)
363,496
5,620
Global
Diversified
Income
Fund
(
a)
372,382
5,124
Global
Real
Estate
Securities
Fund
(
a)
413,349
4,290
High
Yield
Fund
(
a)
585,043
4,201
International
Small
Company
Fund
(
a)
175,594
2,003
Origin
Emerging
Markets
Fund
(
a)
174,052
2,005
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
759,878
7,903
$
99,352
Principal
Funds,
Inc.
Institutional
Class
-
13.80%
Inflation
Protection
Fund
(
a)
544,667
4,712
Short-Term
Income
Fund
(
a)
1,744,691
21,442
$
26,154
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
19.43%
Equity
Income
Account
(
a)
610,085
17,198
Government
&
High
Quality
Bond
Account
(
a)
1,998,840
19,609
$
36,807
TOTAL
INVESTMENT
COMPANIES
$
189,384
Total
Investments
$
189,384
Other
Assets
and
Liabilities
- 0.05
%
91
TOTAL
NET
ASSETS
-
100.00%
$
189,475
(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
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
60.84%
Domestic
Equity
Funds
26.76%
International
Equity
Funds
6.49%
Specialty
Funds
5.55%
Money
Market
Funds
0.31%
Other
Assets
and
Liabilities
0.05%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
December
31,
2019
See
accompanying
notes.
207
Affiliated
Securities
December
31,
2018
Purchases
(a)
Sales
(a)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
9,319
$
2,391
$
2,254
$
12,479
Core
Fixed
Income
Fund
—
35,544
1,891
34,488
Diversified
International
Fund
Class
R-6
—
15,240
1,063
15,831
Diversified
International
Fund
Institutional
Class
12,173
563
13,647
—
Diversified
Real
Asset
Fund
5,061
425
700
5,408
Edge
MidCap
Fund
3,962
1,227
753
5,620
Equity
Income
Account
13,827
2,25
8
2,140
17,198
Global
Diversified
Income
Fund
4,642
583
475
5,124
Global
Multi-Strategy
Fund
6,969
152
7,521
—
Global
Real
Estate
Securities
Fund
3,917
630
940
4,290
Government
&
High
Quality
Bond
Account
17,903
3,138
2,053
19,609
High
Yield
Fund
4,362
594
1,068
4,201
Income
Account
29,763
686
31,689
—
Inflation
Protection
Fund
4,746
294
616
4,712
International
Emerging
Markets
Fund
1,347
47
1,561
—
International
Small
Company
Fund
1,335
484
161
2,003
Origin
Emerging
Markets
Fund
—
1,993
114
2,005
Principal
Active
Global
Dividend
Income
ETF
3,226
—
—
3,997
Principal
Active
Income
ETF
4,809
—
—
5,199
Principal
Government
Money
Market
Fund
1.41%
897
5,246
5,563
580
Principal
Investment
Grade
Corporate
Active
ETF
4,251
—
2,608
1,906
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
10,791
—
1,017
12,420
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
2,172
396
—
2,969
Real
Estate
Debt
Income
Fund
1,616
61
1,755
—
Short-Term
Income
Fund
20,485
3,109
2,630
21,442
Spectrum
Preferred
and
Capital
Securities
Income
Fund
7,074
839
777
7,903
$
174,647
$
75,90
0
$
82,99
6
$
189,384
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
97
$
126
$
467
$
2,897
Core
Fixed
Income
Fund
60
6
6
—
829
Diversified
International
Fund
Class
R-6
357
6
—
1,648
Diversified
International
Fund
Institutional
Class
—
—
—
911
Diversified
Real
Asset
Fund
128
16
—
606
Edge
MidCap
Fund
57
26
165
1,158
Equity
Income
Account
377
1
375
3,25
2
Global
Diversified
Income
Fund
260
(1
3
)
—
38
7
Global
Multi-Strategy
Fund
—
248
—
152
Global
Real
Estate
Securities
Fund
145
33
125
650
Government
&
High
Quality
Bond
Account
51
5
(65)
—
686
High
Yield
Fund
276
13
—
300
Income
Account
—
2,106
—
(866)
Inflation
Protection
Fund
86
(7)
—
295
International
Emerging
Markets
Fund
—
312
—
(145)
International
Small
Company
Fund
57
(8)
—
353
Origin
Emerging
Markets
Fund
36
—
—
126
Principal
Active
Global
Dividend
Income
ETF
110
—
—
77
1
Principal
Active
Income
ETF
250
—
—
390
Principal
Government
Money
Market
Fund
1.41%
19
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
156
67
16
196
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
265
60
—
2,586
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
38
—
—
401
Real
Estate
Debt
Income
Fund
37
34
—
44
Short-Term
Income
Fund
512
(8)
—
486
Spectrum
Preferred
and
Capital
Securities
Income
Fund
392
(22)
—
789
$
4,77
6
$
2,93
1
$
1,148
$
18,90
2
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
December
31,
2019
See
accompanying
notes.
208
INVESTMENT
COMPANIES
-
99.91%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.23%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
825,931
$
826
Principal
Exchange-Traded
Funds
-
21.75%
Principal
Active
Global
Dividend
Income
ETF
(
a)
401,000
12,052
Principal
Active
Income
ETF
(
a)
114,000
4,674
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
64,900
1,685
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
1,501,300
46,991
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
375,400
12,223
$
77,625
Principal
Funds,
Inc.
Class
R-6
-
52.97%
Blue
Chip
Fund
(
a)
1,673,589
44,819
Core
Fixed
Income
Fund
(
a)
1,774,786
17,340
Diversified
International
Fund
(
a)
4,777,279
61,484
Diversified
Real
Asset
Fund
(
a)
1,072,488
12,484
Edge
MidCap
Fund
(
a)
1,393,225
21,539
Global
Real
Estate
Securities
Fund
(
a)
1,153,672
11,975
International
Small
Company
Fund
(
a)
606,983
6,926
Origin
Emerging
Markets
Fund
(
a)
620,450
7,147
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
512,075
5,325
$
189,039
Principal
Funds,
Inc.
Institutional
Class
-
4.47%
Short-Term
Income
Fund
(
a)
1,296,546
15,93
5
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
20.49%
Equity
Income
Account
(
a)
2,200,448
62,031
Government
&
High
Quality
Bond
Account
(
a)
1,129,273
11,078
$
73,109
TOTAL
INVESTMENT
COMPANIES
$
356,53
4
Total
Investments
$
356,53
4
Other
Assets
and
Liabilities
- 0.09
%
31
3
TOTAL
NET
ASSETS
-
100.00%
$
356,847
(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
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
52.57%
Fixed
Income
Funds
32.94%
International
Equity
Funds
10.67%
Specialty
Funds
3.50%
Money
Market
Funds
0.23%
Other
Assets
and
Liabilities
0.09%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
December
31,
2019
See
accompanying
notes.
209
Affiliated
Securities
December
31,
2018
Purchases
(a)
Sales
(a)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
35,689
$
5,161
$
7,251
$
44,819
Core
Fixed
Income
Fund
—
17,675
750
17,340
Diversified
International
Fund
Class
R-6
—
59,494
3,522
61,484
Diversified
International
Fund
Institutional
Class
47,933
839
53,245
—
Diversified
Real
Asset
Fund
11,715
1,075
1,722
12,484
Edge
MidCap
Fund
17,707
1,766
2,913
21,539
Equity
Income
Account
52,108
5,382
7,356
62,031
Global
Multi-Strategy
Fund
5,034
11
5,318
—
Global
Real
Estate
Securities
Fund
10,875
1,615
2,354
11,975
Government
&
High
Quality
Bond
Account
9,629
2,252
1,134
11,078
Income
Account
16,085
107
16,840
—
International
Small
Company
Fund
4,663
1,428
338
6,926
Multi-Manager
Equity
Long/Short
Fund
7,946
15
8,527
—
Origin
Emerging
Markets
Fund
5,466
918
596
7,147
Principal
Active
Global
Dividend
Income
ETF
9,167
633
—
12,052
Principal
Active
Income
ETF
—
4,509
—
4,674
Principal
Government
Money
Market
Fund
1.41%
797
11,514
11,485
826
Principal
Investment
Grade
Corporate
Active
ETF
2,084
—
552
1,685
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
40,929
306
4,269
46,991
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
9,276
1,271
—
12,223
Short-Term
Income
Fund
15,424
2,288
2,12
7
15,93
5
Spectrum
Preferred
and
Capital
Securities
Income
Fund
5,137
667
1,019
5,325
$
307,664
$
118,926
$
131,31
8
$
356,53
4
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
347
$
198
$
1,672
$
11,022
Core
Fixed
Income
Fund
301
4
—
411
Diversified
International
Fund
Class
R-6
1,38
8
(53)
—
5,565
Diversified
International
Fund
Institutional
Class
—
(2)
—
4,475
Diversified
Real
Asset
Fund
295
(5)
—
1,421
Edge
MidCap
Fund
219
116
635
4,863
Equity
Income
Account
1,336
(81)
1,326
11,978
Global
Multi-Strategy
Fund
—
316
—
(43)
Global
Real
Estate
Securities
Fund
399
48
347
1,791
Government
&
High
Quality
Bond
Account
269
(43)
—
374
Income
Account
—
1,135
—
(487)
International
Small
Company
Fund
197
(4)
—
1,177
Multi-Manager
Equity
Long/Short
Fund
—
(288)
—
854
Origin
Emerging
Markets
Fund
126
28
—
1,331
Principal
Active
Global
Dividend
Income
ETF
320
—
—
2,252
Principal
Active
Income
ETF
89
—
—
165
Principal
Government
Money
Market
Fund
1.41%
21
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
113
20
15
133
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
1,001
248
—
9,777
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
159
—
—
1,676
Short-Term
Income
Fund
377
(10)
—
360
Spectrum
Preferred
and
Capital
Securities
Income
Fund
273
(9)
—
549
$
7,23
0
$
1,618
$
3,995
$
59,644
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
December
31,
2019
See
accompanying
notes.
210
INVESTMENT
COMPANIES
-
99.93%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.27%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
510,842
$
511
Principal
Exchange-Traded
Funds
-
15.92%
Principal
Active
Global
Dividend
Income
ETF
(
a)
505,300
15,187
Principal
Active
Income
ETF
(
a)
124,400
5,100
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
110,300
2,864
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
219,600
6,874
$
30,025
Principal
Funds,
Inc.
Class
R-6
-
45.61%
Blue
Chip
Fund
(
a)
127,002
3,401
Core
Fixed
Income
Fund
(
a)
4,657,912
45,508
Edge
MidCap
Fund
(
a)
193,900
2,998
Global
Diversified
Income
Fund
(
a)
677,262
9,319
Global
Real
Estate
Securities
Fund
(
a)
644,487
6,690
High
Yield
Fund
(
a)
1,138,068
8,171
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
953,668
9,918
$
86,005
Principal
Funds,
Inc.
Institutional
Class
-
18.48%
Inflation
Protection
Fund
(
a)
1,295,172
11,203
Short-Term
Income
Fund
(
a)
1,924,464
23,652
$
34,855
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
19.65%
Equity
Income
Account
(
a)
481,474
13,572
Government
&
High
Quality
Bond
Account
(
a)
2,393,062
23,476
$
37,048
TOTAL
INVESTMENT
COMPANIES
$
188,444
Total
Investments
$
188,444
Other
Assets
and
Liabilities
- 0.07
%
141
TOTAL
NET
ASSETS
-
100.00%
$
188,585
(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
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
68.87%
Domestic
Equity
Funds
14.25%
International
Equity
Funds
11.60%
Specialty
Funds
4.94%
Money
Market
Funds
0.27%
Other
Assets
and
Liabilities
0.07%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
December
31,
2019
See
accompanying
notes.
211
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
1,887
$
1,679
$
840
$
3,401
Core
Fixed
Income
Fund
—
48,670
4,316
45,508
Edge
MidCap
Fund
2,515
613
829
2,998
Equity
Income
Account
11,253
2,063
2,335
13,572
Global
Diversified
Income
Fund
8,979
1,175
1,538
9,319
Global
Real
Estate
Securities
Fund
6,772
919
2,129
6,690
Government
&
High
Quality
Bond
Account
21,000
5,395
3,601
23,476
High
Yield
Fund
7,655
2,290
2,316
8,171
Income
Account
42,682
635
45,071
—
Inflation
Protection
Fund
12,205
796
2,517
11,203
Principal
Active
Global
Dividend
Income
ETF
12,255
—
—
15,187
Principal
Active
Income
ETF
5,670
—
987
5,100
Principal
Government
Money
Market
Fund
1.41%
1,632
8,234
9,355
511
Principal
Investment
Grade
Corporate
Active
ETF
5,868
—
3,373
2,864
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
6,337
—
987
6,874
Real
Estate
Debt
Income
Fund
3,406
134
3,702
—
Short-Term
Income
Fund
23,258
3,528
3,669
23,652
Spectrum
Preferred
and
Capital
Securities
Income
Fund
9,184
1,364
1,602
9,918
$
182,558
$
77,495
$
89,167
$
188,444
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
26
$
(4)
$
127
$
679
Core
Fixed
Income
Fund
81
7
39
—
1,115
Edge
MidCap
Fund
30
8
88
691
Equity
Income
Account
285
546
283
2,045
Global
Diversified
Income
Fund
476
2
—
70
1
Global
Real
Estate
Securities
Fund
226
119
197
1,009
Government
&
High
Quality
Bond
Account
624
(82)
—
764
High
Yield
Fund
485
18
—
524
Income
Account
—
3,169
—
(1,415)
Inflation
Protection
Fund
207
(28)
—
747
Principal
Active
Global
Dividend
Income
ETF
418
—
—
2,932
Principal
Active
Income
ETF
266
3
—
414
Principal
Government
Money
Market
Fund
1.41%
34
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
227
86
24
283
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
151
93
—
1,431
Real
Estate
Debt
Income
Fund
76
84
—
78
Short-Term
Income
Fund
571
(8)
—
543
Spectrum
Preferred
and
Capital
Securities
Income
Fund
492
(49)
—
1,021
$
5,41
1
$
3,99
6
$
719
$
13,56
2
Amounts
in
thousands.
Schedule
of
Investments
SAM
Strategic
Growth
Portfolio
December
31,
2019
See
accompanying
notes.
212
INVESTMENT
COMPANIES
-
99.93%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.22%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
696,254
$
696
Principal
Exchange-Traded
Funds
-
16.89%
Principal
Active
Global
Dividend
Income
ETF
(
a)
606,000
18,213
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
715,000
22,380
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
389,100
12,669
$
53,262
Principal
Funds,
Inc.
Class
R-6
-
61.46%
Blue
Chip
Fund
(
a)
1,808,842
48,441
Diversified
International
Fund
(
a)
5,256,925
67,657
Edge
MidCap
Fund
(
a)
1,364,127
21,089
Global
Real
Estate
Securities
Fund
(
a)
1,544,414
16,031
International
Small
Company
Fund
(
a)
690,005
7,873
LargeCap
Growth
Fund
I
(
a)
988,021
15,867
Origin
Emerging
Markets
Fund
(
a)
1,467,523
16,906
$
193,864
Principal
Funds,
Inc.
Institutional
Class
-
2.44%
LargeCap
Value
Fund
III
(
a)
452,417
7,700
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
18.92%
Equity
Income
Account
(
a)
2,116,647
59,669
TOTAL
INVESTMENT
COMPANIES
$
315,191
Total
Investments
$
315,191
Other
Assets
and
Liabilities
- 0.07
%
222
TOTAL
NET
ASSETS
-
100.00%
$
315,413
(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
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
59.56%
Fixed
Income
Funds
21.45%
International
Equity
Funds
18.70%
Money
Market
Funds
0.22%
Other
Assets
and
Liabilities
0.07%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
(a)
Sales
(a)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
37,817
$
3,754
$
5,141
$
48,441
Diversified
International
Fund
Class
R-6
—
65,285
2,811
67,657
Diversified
International
Fund
Institutional
Class
48,705
809
54,608
—
Edge
MidCap
Fund
16,394
1,875
1,864
21,089
Equity
Income
Account
48,144
4,875
4,507
59,669
Global
Real
Estate
Securities
Fund
14,841
1,598
2,905
16,031
International
Small
Company
Fund
4,479
2,656
464
7,873
LargeCap
Growth
Fund
I
—
16,152
454
15,867
LargeCap
Value
Fund
III
—
7,773
163
7,700
Origin
Emerging
Markets
Fund
8,731
6,320
778
16,906
Principal
Active
Global
Dividend
Income
ETF
14,018
78
2
—
18,213
Principal
Active
Income
ETF
11,476
—
11,931
—
Principal
Government
Money
Market
Fund
1.41%
798
32,565
32,667
696
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
33,899
190
19,029
22,380
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
10,392
465
—
12,669
Short-Term
Income
Fund
5,121
2,677
7,923
—
$
254,815
$
147,77
6
$
145,24
5
$
315,191
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
373
$
(92)
$
1,791
$
12,103
Diversified
International
Fund
Class
R-6
1,52
2
(70)
—
5,253
Diversified
International
Fund
Institutional
Class
—
(42)
—
5,136
Edge
MidCap
Fund
213
3
618
4,681
Equity
Income
Account
1,261
(110)
1,252
11,267
Global
Real
Estate
Securities
Fund
533
74
463
2,423
International
Small
Company
Fund
224
6
—
1,196
LargeCap
Growth
Fund
I
40
(6)
1,148
175
LargeCap
Value
Fund
III
172
—
306
90
Origin
Emerging
Markets
Fund
298
1
—
2,632
Principal
Active
Global
Dividend
Income
ETF
485
—
—
3,413
Principal
Active
Income
ETF
213
22
—
433
Principal
Government
Money
Market
Fund
1.41%
24
—
—
—
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
609
1,758
—
5,562
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
171
—
—
1,812
Short-Term
Income
Fund
69
72
—
53
$
6,20
7
$
1,616
$
5,578
$
56,229
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
213
INVESTMENT
COMPANIES
-
3.63%
Shares
Held
Value
(000's)
Money
Market
Funds
-
3.63%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
309,002
$
309
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
4,443,889
4,444
$
4,753
TOTAL
INVESTMENT
COMPANIES
$
4,753
BONDS
-
90.82%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
0.74%
General
Dynamics
Corp
2.88
%,
05
/11/2020
$
200
$
201
3.00
%,
05
/11/2021
250
254
Northrop
Grumman
Corp
2.08
%,
10
/15/2020
150
150
Rockwell
Collins
Inc
3.20
%,
03
/15/2024
250
260
United
Technologies
Corp
1.90
%,
05
/04/2020
100
100
$
965
Airlines
-
0.35%
American
Airlines
2013-2
Class
A
Pass
Through
Trust
4.95
%,
07
/15/2024
253
264
Delta
Air
Lines
2012-1
Class
A
Pass
Through
Trust
4.75
%,
11
/07/2021
191
193
$
457
Automobile
Asset
Backed
Securities
-
7.33%
Americredit
Automobile
Receivables
Trust
2018-1
3.07
%,
12
/19/2022
250
251
Americredit
Automobile
Receivables
Trust
2018-2
3.15
%,
03
/20/2023
200
202
Americredit
Automobile
Receivables
Trust
2018-3
3.11
%,
01
/18/2022
188
188
Americredit
Automobile
Receivables
Trust
2019-1
2.93
%,
06
/20/2022
201
202
2.97
%,
11
/20/2023
200
202
Americredit
Automobile
Receivables
Trust
2019-2
2.28
%,
01
/18/2024
400
402
2.43
%,
09
/19/2022
189
190
AmeriCredit
Automobile
Receivables
Trust
2019-3
2.17
%,
01
/18/2023
259
259
Bank
of
The
West
Auto
Trust
2018-1
3.09
%,
04
/15/2021
(d)
108
108
Capital
Auto
Receivables
Asset
Trust
2018-2
3.02
%,
02
/22/2021
(d)
148
148
3.27
%,
06
/20/2023
(d)
250
252
CPS
Auto
Receivables
Trust
2018-B
2.72
%,
09
/15/2021
(d)
13
12
CPS
Auto
Receivables
Trust
2018-D
3.06
%,
01
/18/2022
(d)
146
146
CPS
Auto
Receivables
Trust
2019-A
3.18
%,
06
/15/2022
(d)
113
114
CPS
Auto
Receivables
Trust
2019-B
2.89
%,
05
/16/2022
(d)
138
138
CPS
Auto
Receivables
Trust
2019-C
2.55
%,
09
/15/2022
(d)
186
186
CPS
Auto
Trust
2.87
%,
09
/15/2021
(d)
58
58
Ford
Credit
Auto
Owner
Trust
2015-REV2
2.44
%,
01
/15/2027
(d)
173
173
Ford
Credit
Auto
Owner
Trust
2016-REV2
2.03
%,
12
/15/2027
(d)
750
750
Ford
Credit
Auto
Owner
Trust
2017-REV1
2.62
%,
08
/15/2028
(d)
500
506
Ford
Credit
Auto
Owner
Trust
2018-REV2
3.47
%,
01
/15/2030
(d)
400
418
Ford
Credit
Auto
Owner
Trust
2019-REV1
3.52
%,
07
/15/2030
(d)
300
315
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Asset
Backed
Securities
(continued)
OneMain
Direct
Auto
Receivables
Trust
2017-2
2.31
%,
12
/14/2021
(d)
$
39
$
39
OneMain
Direct
Auto
Receivables
Trust
2018-1
3.43
%,
12
/16/2024
(d)
500
507
OneMain
Direct
Auto
Receivables
Trust
2019-1
3.63
%,
09
/14/2027
(d)
750
772
Santander
Drive
Auto
Receivables
Trust
2018-4
3.01
%,
03
/15/2022
50
50
Santander
Drive
Auto
Receivables
Trust
2019-1
2.91
%,
01
/18/2022
53
53
Santander
Drive
Auto
Receivables
Trust
2019-3
2.28
%,
02
/15/2022
500
500
TCF
Auto
Receivables
Owner
Trust
2016-PT1
1.93
%,
06
/15/2022
(d)
134
134
Toyota
Auto
Loan
Extended
Note
Trust
2019-1
2.56
%,
11
/25/2031
(d)
250
254
Westlake
Automobile
Receivables
Trust
2018-2
2.84
%,
09
/15/2021
(d)
22
22
3.20
%,
01
/16/2024
(d)
200
201
Westlake
Automobile
Receivables
Trust
2018-3
2.98
%,
01
/18/2022
(d)
114
114
3.32
%,
10
/16/2023
(d)
300
302
Westlake
Automobile
Receivables
Trust
2019-1
3.06
%,
05
/16/2022
(d)
222
223
3.26
%,
10
/17/2022
(d)
350
354
Westlake
Automobile
Receivables
Trust
2019-3
2.15
%,
02
/15/2023
(d)
250
250
World
Omni
Select
Auto
Trust
2018-1
3.24
%,
04
/15/2022
(d)
99
99
World
Omni
Select
Auto
Trust
2019-A
2.06
%,
08
/15/2023
500
500
$
9,594
Automobile
Floor
Plan
Asset
Backed
Securities
-
1.46%
Ally
Master
Owner
Trust
2.70
%,
01
/17/2023
500
504
3.29
%,
05
/15/2023
500
509
Navistar
Financial
Dealer
Note
Master
Owner
Trust
II
2.42
%,
09
/25/2023
(d)
250
250
1.00
x
1
Month
USD
LIBOR
+
0.63%
Volvo
Financial
Equipment
Master
Owner
Trust
2.24
%,
11
/15/2022
(d)
250
251
1.00
x
1
Month
USD
LIBOR
+
0.50%
2.26
%,
07
/17/2023
(d)
400
401
1.00
x
1
Month
USD
LIBOR
+
0.52%
$
1,915
Automobile
Manufacturers
-
0.73%
General
Motors
Financial
Co
Inc
2.86
%,
04
/09/2021
300
301
3
Month
USD
LIBOR
+
0.85%
PACCAR
Financial
Corp
3.10
%,
05
/10/2021
250
254
Toyota
Motor
Credit
Corp
2.60
%,
01
/11/2022
400
406
$
961
Banks
-
18.29%
Bank
of
America
Corp
2.50
%,
10
/21/2022
500
505
2.63
%,
10
/19/2020
250
251
3.00
%,
12
/20/2023
(e)
430
440
3
Month
USD
LIBOR
+
0.79%
3.13
%,
01
/20/2023
350
355
3
Month
USD
LIBOR
+
1.16%
4.20
%,
08
/26/2024
500
537
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
214
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Bank
of
New
York
Mellon
Corp/The
2.10
%,
10
/24/2024
$
250
$
250
2.50
%,
04
/15/2021
300
302
2.99
%,
10
/30/2023
500
509
3
Month
USD
LIBOR
+
1.05%
BNP
Paribas
SA
3.50
%,
03
/01/2023
(d)
250
259
Capital
One
NA
3.09
%,
01
/30/2023
600
607
3
Month
USD
LIBOR
+
1.15%
Citigroup
Inc
2.70
%,
03
/30/2021
900
908
2.90
%,
04
/25/2022
200
203
3
Month
USD
LIBOR
+
0.96%
3.50
%,
05
/15/2023
250
260
4.00
%,
08
/05/2024
274
293
4.04
%,
06
/01/2024
(e)
250
264
3
Month
USD
LIBOR
+
1.02%
Credit
Suisse
AG/New
York
NY
2.10
%,
11
/12/2021
250
251
Credit
Suisse
Group
AG
4.21
%,
06
/12/2024
(d),(e)
500
529
3
Month
USD
LIBOR
+
1.24%
Fifth
Third
Bancorp
2.60
%,
06
/15/2022
600
608
3.65
%,
01
/25/2024
200
211
4.30
%,
01
/16/2024
400
430
Fifth
Third
Bank/Cincinnati
OH
2.25
%,
06
/14/2021
300
302
Goldman
Sachs
Group
Inc/The
3.00
%,
04
/26/2022
950
962
3.09
%,
04
/23/2020
400
401
3
Month
USD
LIBOR
+
1.16%
HSBC
Holdings
PLC
2.63
%,
11
/07/2025
(e)
200
201
3
Month
USD
LIBOR
+
1.14%
3.95
%,
05
/18/2024
(e)
250
263
3
Month
USD
LIBOR
+
0.99%
ING
Groep
NV
3.15
%,
03
/29/2022
450
460
JPMorgan
Chase
&
Co
2.30
%,
08
/15/2021
250
251
2.84
%,
04
/25/2023
500
504
3
Month
USD
LIBOR
+
0.90%
3.17
%,
10
/24/2023
500
508
3
Month
USD
LIBOR
+
1.23%
4.25
%,
10
/15/2020
750
763
KeyBank
NA/Cleveland
OH
2.40
%,
06
/09/2022
400
404
3.30
%,
02
/01/2022
250
257
KeyCorp
5.10
%,
03
/24/2021
488
506
Morgan
Stanley
2.45
%,
02
/10/2021
300
300
3
Month
USD
LIBOR
+
0.55%
3.34
%,
10
/24/2023
1,400
1,430
3
Month
USD
LIBOR
+
1.40%
4.10
%,
05
/22/2023
300
317
MUFG
Union
Bank
NA
2.10
%,
12
/09/2022
250
251
PNC
Bank
NA
2.00
%,
05
/19/2020
500
500
2.44
%,
07
/27/2022
400
402
3
Month
USD
LIBOR
+
0.50%
2.70
%,
11
/01/2022
600
612
PNC
Financial
Services
Group
Inc/The
3.90
%,
04
/29/2024
150
160
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Royal
Bank
of
Scotland
Group
PLC
4.27
%,
03
/22/2025
(e)
$
250
$
266
3
Month
USD
LIBOR
+
1.76%
State
Street
Corp
2.35
%,
11
/01/2025
(e)
200
201
United
States
Secured
Overnight
Financing
Rate
+
0.94%
3.10
%,
05
/15/2023
688
710
Truist
Bank
2.45
%,
08
/01/2022
700
708
2.49
%,
08
/02/2022
250
251
3
Month
USD
LIBOR
+
0.59%
2.63
%,
01
/15/2022
600
608
Truist
Financial
Corp
2.05
%,
05
/10/2021
200
200
2.90
%,
03
/03/2021
500
505
UBS
AG/London
2.20
%,
06
/08/2020
(d)
500
500
UBS
Group
AG
3.49
%,
05
/23/2023
(d)
300
309
US
Bancorp
3.60
%,
09
/11/2024
350
372
US
Bank
NA/Cincinnati
OH
1.95
%,
01
/09/2023
250
250
2.05
%,
10
/23/2020
300
300
Wells
Fargo
&
Co
3.07
%,
01
/24/2023
1,000
1,021
$
23,927
Beverages
-
0.77%
Anheuser-Busch
InBev
Worldwide
Inc
4.15
%,
01
/23/2025
500
545
Keurig
Dr
Pepper
Inc
3.55
%,
05
/25/2021
250
255
PepsiCo
Inc
2.15
%,
10
/14/2020
200
201
$
1,001
Biotechnology
-
0.85%
Amgen
Inc
2.20
%,
05
/11/2020
200
200
2.65
%,
05
/11/2022
400
406
Biogen
Inc
2.90
%,
09
/15/2020
500
504
$
1,110
Building
Materials
-
0.29%
Martin
Marietta
Materials
Inc
4.25
%,
07
/02/2024
349
374
Chemicals
-
1.07%
Air
Liquide
Finance
SA
1.75
%,
09
/27/2021
(d)
250
249
Celanese
US
Holdings
LLC
3.50
%,
05
/08/2024
200
207
Chevron
Phillips
Chemical
Co
LLC
/
Chevron
Phillips
Chemical
Co
LP
2.45
%,
05
/01/2020
(d)
168
168
3.30
%,
05
/01/2023
(d)
200
206
DuPont
de
Nemours
Inc
4.21
%,
11
/15/2023
250
267
International
Flavors
&
Fragrances
Inc
3.40
%,
09
/25/2020
100
101
Westlake
Chemical
Corp
3.60
%,
07
/15/2022
200
205
$
1,403
Commercial
Mortgage
Backed
Securities
-
1.04%
Ginnie
Mae
0.43
%,
09
/16/2055
(f),(g)
2,513
68
0.65
%,
01
/16/2054
(f),(g)
2,509
72
0.67
%,
10
/16/2054
(f),(g)
3,159
91
0.83
%,
02
/16/2055
(f),(g)
5,324
153
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
215
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
Ginnie
Mae
(continued)
0.84
%,
01
/16/2055
(f),(g)
$
5,129
$
179
0.89
%,
06
/16/2045
(f),(g)
913
43
1.37
%,
12
/16/2036
(f),(g)
1,916
90
GS
Mortgage
Securities
Trust
2017-GS6
1.95
%,
05
/10/2050
391
390
JPMDB
Commercial
Mortgage
Securities
Trust
2016-C4
1.54
%,
12
/15/2049
272
270
$
1,356
Computers
-
0.78%
Apple
Inc
1.90
%,
02
/07/2020
200
200
2.50
%,
02
/09/2022
150
152
Dell
International
LLC
/
EMC
Corp
5.45
%,
06
/15/2023
(d)
200
217
International
Business
Machines
Corp
2.25
%,
02
/19/2021
250
251
2.80
%,
05
/13/2021
200
203
$
1,023
Credit
Card
Asset
Backed
Securities
-
0.61%
BA
Credit
Card
Trust
1.74
%,
01
/15/2025
800
798
Diversified
Financial
Services
-
1.25%
American
Express
Co
2.75
%,
05
/20/2022
200
204
3.00
%,
02
/22/2021
250
253
3.70
%,
11
/05/2021
150
155
Capital
One
Financial
Corp
3.90
%,
01
/29/2024
100
106
GTP
Acquisition
Partners
I
LLC
2.35
%,
06
/15/2045
(d)
721
721
USAA
Capital
Corp
2.63
%,
06
/01/2021
(d)
200
202
$
1,641
Electric
-
5.40%
Alabama
Power
Co
2.45
%,
03
/30/2022
250
253
Alliant
Energy
Finance
LLC
3.75
%,
06
/15/2023
(d)
200
209
Black
Hills
Corp
4.25
%,
11
/30/2023
750
795
CenterPoint
Energy
Inc
3.60
%,
11
/01/2021
300
308
Dominion
Energy
Inc
2.58
%,
07
/01/2020
200
200
2.72
%,
08
/15/2021
(g)
200
202
3.07
%,
08
/15/2024
(g)
200
206
DTE
Energy
Co
2.25
%,
11
/01/2022
250
250
2.60
%,
06
/15/2022
200
201
Duke
Energy
Florida
LLC
1.85
%,
01
/15/2020
(h)
400
400
3.10
%,
08
/15/2021
250
254
Emera
US
Finance
LP
2.70
%,
06
/15/2021
300
303
Evergy
Inc
2.45
%,
09
/15/2024
200
201
Exelon
Corp
3.50
%,
06
/01/2022
500
514
Indiantown
Cogeneration
LP
9.77
%,
12
/15/2020
57
59
LG&E
&
KU
Energy
LLC
4.38
%,
10
/01/2021
310
320
NextEra
Energy
Capital
Holdings
Inc
2.90
%,
04
/01/2022
150
153
3.15
%,
04
/01/2024
150
156
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Public
Service
Enterprise
Group
Inc
2.88
%,
06
/15/2024
$
100
$
102
San
Diego
Gas
&
Electric
Co
1.91
%,
02
/01/2022
72
72
Sempra
Energy
2.40
%,
02
/01/2020
250
250
2.50
%,
01
/15/2021
500
500
3
Month
USD
LIBOR
+
0.50%
Southern
California
Edison
Co
1.85
%,
02
/01/2022
148
146
Tucson
Electric
Power
Co
3.05
%,
03
/15/2025
100
103
Vistra
Operations
Co
LLC
3.70
%,
01
/30/2027
(d)
500
497
WEC
Energy
Group
Inc
3.38
%,
06
/15/2021
400
408
$
7,062
Electronics
-
0.69%
Fortive
Corp
2.35
%,
06
/15/2021
300
301
Honeywell
International
Inc
1.85
%,
11
/01/2021
400
401
2.15
%,
08
/08/2022
200
202
$
904
Environmental
Control
-
0.16%
Republic
Services
Inc
2.50
%,
08
/15/2024
100
101
Waste
Management
Inc
2.95
%,
06
/15/2024
100
103
$
204
Finance
-
Mortgage
Loan/Banker
-
9.50%
Fannie
Mae
1.25
%,
08
/17/2021
600
597
1.38
%,
02
/26/2021
800
798
1.75
%,
07
/02/2024
600
601
1.88
%,
09
/24/2026
4,550
4,542
2.13
%,
04
/24/2026
2,000
2,030
2.50
%,
02
/05/2024
500
515
2.63
%,
09
/06/2024
750
781
Freddie
Mac
2.38
%,
02
/16/2021
1,000
1,008
2.75
%,
06
/19/2023
1,500
1,558
$
12,430
Food
-
1.28%
Conagra
Brands
Inc
2.70
%,
10
/22/2020
250
250
3
Month
USD
LIBOR
+
0.75%
3.80
%,
10
/22/2021
500
516
Kraft
Heinz
Foods
Co
2.47
%,
02
/10/2021
400
401
3
Month
USD
LIBOR
+
0.57%
4.00
%,
06
/15/2023
150
158
Tyson
Foods
Inc
2.25
%,
08
/23/2021
150
150
2.34
%,
08
/21/2020
200
200
3
Month
USD
LIBOR
+
0.45%
$
1,675
Healthcare
-
Services
-
0.27%
Humana
Inc
2.50
%,
12
/15/2020
100
100
UnitedHealth
Group
Inc
1.95
%,
10
/15/2020
250
250
$
350
Home
Builders
-
0.15%
DR
Horton
Inc
2.50
%,
10
/15/2024
200
200
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
216
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Home
Furnishings
-
0.15%
Panasonic
Corp
2.54
%,
07
/19/2022
(d)
$
200
$
202
Insurance
-
3.67%
Allstate
Corp/The
2.59
%,
03
/29/2023
250
251
3
Month
USD
LIBOR
+
0.63%
Berkshire
Hathaway
Inc
2.75
%,
03
/15/2023
500
513
Five
Corners
Funding
Trust
4.42
%,
11
/15/2023
(d)
750
814
MassMutual
Global
Funding
II
2.00
%,
04
/15/2021
(d)
450
451
Metropolitan
Life
Global
Funding
I
1.95
%,
09
/15/2021
(d)
470
470
2.11
%,
09
/07/2020
(d)
250
250
United
States
Secured
Overnight
Financing
Rate
+
0.57%
2.29
%,
06
/12/2020
(d)
250
250
3
Month
USD
LIBOR
+
0.40%
New
York
Life
Global
Funding
1.95
%,
02
/11/2020
(d)
400
400
2.00
%,
04
/13/2021
(d)
400
401
2.41
%,
06
/10/2022
(d)
1,000
1,005
3
Month
USD
LIBOR
+
0.52%
$
4,805
Lodging
-
0.16%
Las
Vegas
Sands
Corp
3.20
%,
08
/08/2024
200
206
Machinery
-
Construction
&
Mining
-
0.23%
Caterpillar
Financial
Services
Corp
2.55
%,
11
/29/2022
300
306
Machinery
-
Diversified
-
0.27%
John
Deere
Capital
Corp
2.05
%,
03
/10/2020
350
350
Media
-
0.26%
Discovery
Communications
LLC
3.25
%,
04
/01/2023
200
206
Sky
Ltd
3.13
%,
11
/26/2022
(d)
130
133
$
339
Mining
-
0.16%
Glencore
Funding
LLC
4.13
%,
05
/30/2023
(d)
200
208
Miscellaneous
Manufacturers
-
0.77%
General
Electric
Co
5.50
%,
01
/08/2020
150
150
Ingersoll-Rand
Global
Holding
Co
Ltd
2.90
%,
02
/21/2021
500
505
Siemens
Financieringsmaatschappij
NV
2.20
%,
03
/16/2020
(d)
350
350
$
1,005
Mortgage
Backed
Securities
-
7.20%
Chase
Home
Lending
Mortgage
Trust
2019-1
3.50
%,
03
/25/2050
(d),(g)
245
249
CHL
Mortgage
Pass-Through
Trust
2003-46
3.91
%,
01
/19/2034
(g)
27
28
Credit
Suisse
First
Boston
Mortgage
Securities
Corp
5.00
%,
09
/25/2019
1
1
CSMC
2017-HL1
Trust
3.50
%,
06
/25/2047
(d),(g)
400
404
CSMC
2017-HL2
Trust
3.50
%,
10
/25/2047
(d),(g)
343
348
JP
Morgan
Mortgage
Trust
2004-A3
4.46
%,
07
/25/2034
(g)
17
18
JP
Morgan
Mortgage
Trust
2004-S1
5.00
%,
09
/25/2034
19
19
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
JP
Morgan
Mortgage
Trust
2016-4
3.50
%,
10
/25/2046
(d),(g)
$
465
$
474
JP
Morgan
Mortgage
Trust
2017-2
3.50
%,
05
/25/2047
(d),(g)
314
318
JP
Morgan
Mortgage
Trust
2017-4
3.50
%,
11
/25/2048
(d),(g)
290
293
JP
Morgan
Mortgage
Trust
2017-6
3.50
%,
12
/25/2048
(d),(g)
168
170
JP
Morgan
Mortgage
Trust
2018-3
3.50
%,
09
/25/2048
(d),(g)
369
374
JP
Morgan
Mortgage
Trust
2018-4
3.50
%,
10
/25/2048
(d),(g)
216
219
JP
Morgan
Mortgage
Trust
2018-6
3.50
%,
12
/25/2048
(d),(g)
225
227
JP
Morgan
Mortgage
Trust
2019-2
4.00
%,
08
/25/2049
(d),(g)
154
155
JP
Morgan
Mortgage
Trust
2019-5
4.00
%,
11
/25/2049
(d),(g)
314
316
PHH
Mortgage
Trust
Series
2008-CIM1
3.94
%,
06
/25/2038
82
81
1.00
x
1
Month
USD
LIBOR
+
2.25%
Prime
Mortgage
Trust
2005-2
5.25
%,
07
/25/2020
25
25
Provident
Funding
Mortgage
Loan
Trust
2005-1
2.37
%,
05
/25/2035
55
55
1.00
x
1
Month
USD
LIBOR
+
0.58%
PSMC
2018-1
Trust
3.50
%,
02
/25/2048
(d),(g)
600
609
PSMC
2018-2
Trust
3.50
%,
06
/25/2048
(d),(g)
361
365
PSMC
2018-3
Trust
4.00
%,
08
/25/2048
(d),(g)
480
483
PSMC
2018-4
Trust
4.00
%,
11
/25/2048
(d),(g)
332
332
RALI
Series
2003-QS23
Trust
5.00
%,
12
/26/2018
1
1
RBSSP
Resecuritization
Trust
2009-7
2.11
%,
06
/26/2037
(d)
9
9
1.00
x
1
Month
USD
LIBOR
+
0.40%
Sequoia
Mortgage
Trust
2013-4
1.55
%,
04
/25/2043
(g)
37
36
Sequoia
Mortgage
Trust
2013-8
2.25
%,
06
/25/2043
(g)
216
215
Sequoia
Mortgage
Trust
2017-1
3.50
%,
02
/25/2047
(d),(g)
341
345
Sequoia
Mortgage
Trust
2017-2
3.50
%,
02
/25/2047
(d),(g)
165
168
Sequoia
Mortgage
Trust
2017-3
3.50
%,
04
/25/2047
(d),(g)
294
299
Sequoia
Mortgage
Trust
2018-3
3.50
%,
03
/25/2048
(d),(g)
204
206
Sequoia
Mortgage
Trust
2018-5
3.50
%,
05
/25/2048
(d),(g)
325
328
Sequoia
Mortgage
Trust
2018-6
4.00
%,
07
/25/2048
(d),(g)
108
108
Sequoia
Mortgage
Trust
2018-7
4.00
%,
09
/25/2048
(d),(g)
110
111
Sequoia
Mortgage
Trust
2018-8
4.00
%,
11
/25/2048
(d),(g)
384
387
Sequoia
Mortgage
Trust
2018-CH3
4.00
%,
08
/25/2048
(d),(g)
102
102
Sequoia
Mortgage
Trust
2019-1
4.00
%,
02
/25/2049
(d),(g)
81
82
Wells
Fargo
Mortgage
Backed
Securities
2018-1
3.50
%,
07
/25/2047
(d),(g)
310
314
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
217
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Wells
Fargo
Mortgage
Backed
Securities
2019-1
Trust
4.00
%,
11
/25/2048
(d),(g)
$
270
$
271
4.00
%,
11
/25/2048
(d),(g)
213
212
Wells
Fargo
Mortgage
Backed
Securities
2019-3
Trust
3.00
%,
07
/25/2049
(d),(g)
410
412
Wells
Fargo
Mortgage
Backed
Securities
2019-4
Trust
3.50
%,
09
/25/2049
(d),(g)
247
251
$
9,420
Oil
&
Gas
-
1.25%
Chevron
Corp
2.90
%,
03
/03/2024
250
259
Cimarex
Energy
Co
4.38
%,
06
/01/2024
250
264
Phillips
66
2.75
%,
04
/15/2020
(d)
300
300
3
Month
USD
LIBOR
+
0.75%
Shell
International
Finance
BV
2.13
%,
05
/11/2020
505
506
2.38
%,
08
/21/2022
300
304
$
1,633
Oil
&
Gas
Services
-
0.20%
Baker
Hughes
a
GE
Co
LLC
/
Baker
Hughes
Co-
Obligor
Inc
2.77
%,
12
/15/2022
250
255
Other
Asset
Backed
Securities
-
6.81%
CCG
Receivables
Trust
2.80
%,
09
/14/2026
(d)
500
504
CCG
Receivables
Trust
2018-1
2.50
%,
06
/16/2025
(d)
38
38
CCG
Receivables
Trust
2018-2
3.09
%,
12
/15/2025
(d)
325
328
CCG
Receivables
Trust
2019-2
2.11
%,
03
/15/2027
(d)
400
400
Daimler
Trucks
Retail
Trust
2019-1
2.77
%,
04
/15/2021
(d)
422
423
Drug
Royalty
II
LP
2
3.48
%,
07
/15/2023
(d)
31
31
Drug
Royalty
III
LP
1
3.98
%,
04
/15/2027
(d)
35
35
4.27
%,
10
/15/2031
(d)
198
203
4.80
%,
04
/15/2027
(d)
115
116
1.00
x
3
Month
USD
LIBOR
+
2.50%
MMAF
Equipment
Finance
LLC
2018-A
2.92
%,
07
/12/2021
(d)
100
101
MMAF
Equipment
Finance
LLC
2019-A
2.84
%,
01
/10/2022
(d)
389
390
MVW
Owner
Trust
2015-1
2.52
%,
12
/20/2032
(d)
173
173
MVW
Owner
Trust
2016-1
2.25
%,
12
/20/2033
(d)
146
145
MVW
Owner
Trust
2018-1
3.45
%,
01
/21/2036
(d)
341
351
PFS
Financing
Corp
2.23
%,
10
/15/2024
(d)
750
747
2.40
%,
10
/17/2022
(d)
300
300
2.86
%,
04
/15/2024
(d)
250
253
3.19
%,
04
/17/2023
(d)
250
253
Verizon
Owner
Trust
2016-2
1.68
%,
05
/20/2021
(d)
25
25
Verizon
Owner
Trust
2017-1
2.06
%,
09
/20/2021
(d)
59
59
Verizon
Owner
Trust
2017-2
1.92
%,
12
/20/2021
(d)
324
324
Verizon
Owner
Trust
2017-3
2.06
%,
04
/20/2022
(d)
236
236
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Other
Asset
Backed
Securities
(continued)
Verizon
Owner
Trust
2018-1
2.82
%,
09
/20/2022
(d)
$
500
$
503
Verizon
Owner
Trust
2018-A
3.23
%,
04
/20/2023
600
610
Verizon
Owner
Trust
2019-A
2.93
%,
09
/20/2023
500
508
Verizon
Owner
Trust
2019-B
2.33
%,
12
/20/2023
500
504
Verizon
Owner
Trust
2019-C
1.94
%,
04
/22/2024
500
500
Volvo
Financial
Equipment
LLC
2.02
%,
08
/15/2022
(d)
250
250
Volvo
Financial
Equipment
LLC
Series
2018-1
2.76
%,
10
/17/2022
(d)
100
101
Volvo
Financial
Equipment
LLC
Series
2019-1
3.00
%,
03
/15/2023
(d)
300
304
VSE
2018-A
VOI
Mortgage
LLC
3.56
%,
02
/20/2036
(d)
184
190
$
8,905
Pharmaceuticals
-
2.67%
AbbVie
Inc
2.15
%,
11
/19/2021
(d)
500
501
2.30
%,
05
/14/2021
200
201
2.50
%,
05
/14/2020
336
337
Bayer
US
Finance
II
LLC
3.88
%,
12
/15/2023
(d)
200
210
Bristol-Myers
Squibb
Co
2.90
%,
07
/26/2024
(d)
150
155
3.25
%,
08
/15/2022
(d)
250
258
3.63
%,
05
/15/2024
(d)
350
370
Cigna
Corp
3.40
%,
09
/17/2021
389
398
4.00
%,
02
/15/2022
(d)
100
103
CVS
Health
Corp
2.63
%,
08
/15/2024
250
252
Mead
Johnson
Nutrition
Co
3.00
%,
11
/15/2020
250
252
Merck
&
Co
Inc
2.90
%,
03
/07/2024
200
208
Pfizer
Inc
2.80
%,
03
/11/2022
250
255
$
3,500
Pipelines
-
2.41%
Buckeye
Partners
LP
4.15
%,
07
/01/2023
400
402
Columbia
Pipeline
Group
Inc
3.30
%,
06
/01/2020
168
168
Enterprise
Products
Operating
LLC
3.50
%,
02
/01/2022
500
515
Florida
Gas
Transmission
Co
LLC
3.88
%,
07
/15/2022
(d)
250
257
Kinder
Morgan
Inc/DE
3.28
%,
01
/15/2023
500
507
3
Month
USD
LIBOR
+
1.28%
ONEOK
Partners
LP
5.00
%,
09
/15/2023
325
353
Southeast
Supply
Header
LLC
4.25
%,
06
/15/2024
(d)
200
204
TransCanada
PipeLines
Ltd
4.12
%,
05
/15/2067
900
753
3
Month
USD
LIBOR
+
2.21%
$
3,159
REITs
-
1.64%
Alexandria
Real
Estate
Equities
Inc
3.90
%,
06
/15/2023
250
263
CubeSmart
LP
4.38
%,
12
/15/2023
92
98
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
218
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
REITs
(continued)
Healthcare
Realty
Trust
Inc
3.75
%,
04
/15/2023
$
365
$
377
Omega
Healthcare
Investors
Inc
4.95
%,
04
/01/2024
250
273
SBA
Tower
Trust
2.88
%,
07
/15/2046
(d)
150
150
3.17
%,
04
/09/2047
(d)
400
404
Service
Properties
Trust
4.50
%,
06
/15/2023
200
208
Ventas
Realty
LP
3.50
%,
04
/15/2024
198
207
Welltower
Inc
3.75
%,
03
/15/2023
154
161
$
2,141
Retail
-
0.88%
Home
Depot
Inc/The
1.80
%,
06
/05/2020
500
500
McDonald's
Corp
2.75
%,
12
/09/2020
500
503
Walmart
Inc
1.90
%,
12
/15/2020
150
150
$
1,153
Savings
&
Loans
-
0.00%
Washington
Mutual
Bank
/
Henderson
NV
0.00
%,
01
/15/2013
(
i
)
200
—
Semiconductors
-
0.81%
Broadcom
Corp
/
Broadcom
Cayman
Finance
Ltd
2.38
%,
01
/15/2020
600
600
Microchip
Technology
Inc
4.33
%,
06
/01/2023
200
211
QUALCOMM
Inc
2.60
%,
01
/30/2023
250
255
$
1,066
Software
-
0.69%
Microsoft
Corp
1.85
%,
02
/12/2020
400
400
Oracle
Corp
1.90
%,
09
/15/2021
200
200
VMware
Inc
2.95
%,
08
/21/2022
300
306
$
906
Student
Loan
Asset
Backed
Securities
-
4.98%
Commonbond
Student
Loan
Trust
2018-BGS
3.56
%,
09
/25/2045
(d)
265
269
Commonbond
Student
Loan
Trust
2018-C-GS
3.87
%,
02
/25/2046
(d)
366
375
Commonbond
Student
Loan
Trust
2019-A-GS
2.54
%,
01
/25/2047
(d)
495
490
Keycorp
Student
Loan
Trust
2000-b
2.25
%,
07
/25/2029
321
316
1.00
x
3
Month
USD
LIBOR
+
0.31%
KeyCorp
Student
Loan
Trust
2003-A
2.47
%,
01
/25/2037
653
642
1.00
x
3
Month
USD
LIBOR
+
0.53%
Laurel
Road
Prime
Student
Loan
Trust
2019-A
2.34
%,
10
/25/2048
(d)
178
179
Navient
Private
Education
Loan
Trust
2014-CT
2.44
%,
09
/16/2024
(d)
24
24
1.00
x
1
Month
USD
LIBOR
+
0.70%
Navient
Private
Education
Loan
Trust
2017-A
2.14
%,
12
/16/2058
(d)
3
3
1.00
x
1
Month
USD
LIBOR
+
0.40%
Navient
Private
Education
Loan
Trust
2018-B
2.09
%,
12
/15/2059
(d)
47
47
1.00
x
1
Month
USD
LIBOR
+
0.35%
Navient
Private
Education
Refi
Loan
Trust
2018-A
2.53
%,
02
/18/2042
(d)
100
100
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Student
Loan
Asset
Backed
Securities
(continued)
Navient
Private
Education
Refi
Loan
Trust
2018-C
3.01
%,
06
/16/2042
(d)
$
80
$
80
Navient
Private
Education
Refi
Loan
Trust
2018-D
2.04
%,
12
/15/2059
(d)
123
123
1.00
x
1
Month
USD
LIBOR
+
0.30%
Navient
Private
Education
Refi
Loan
Trust
2019-A
3.03
%,
01
/15/2043
(d)
37
37
3.42
%,
01
/15/2043
(d)
100
102
Navient
Private
Education
Refi
Loan
Trust
2019-C
2.82
%,
02
/15/2068
(d)
302
303
Navient
Private
Education
Refi
Loan
Trust
2019-D
2.14
%,
12
/15/2059
(d)
152
152
1.00
x
1
Month
USD
LIBOR
+
0.40%
Navient
Private
Education
Refi
Loan
Trust
2019-E
2.39
%,
05
/15/2068
(d)
204
204
Navient
Private
Education
Refi
Loan
Trust
2019-F
2.18
%,
08
/15/2068
(d)
236
236
Navient
Private
Education
Refi
Loan
Trust
2019-G
2.40
%,
10
/15/2068
(d)
400
398
Navient
Student
Loan
Trust
2018-EA
3.43
%,
12
/15/2059
(d)
367
369
Navient
Student
Loan
Trust
2019-B
2.14
%,
12
/15/2059
(d)
135
135
1.00
x
1
Month
USD
LIBOR
+
0.40%
SLM
Private
Credit
Student
Loan
Trust
2004-A
2.29
%,
06
/15/2033
112
111
1.00
x
3
Month
USD
LIBOR
+
0.40%
SLM
Private
Credit
Student
Loan
Trust
2004-B
2.22
%,
03
/15/2024
317
316
1.00
x
3
Month
USD
LIBOR
+
0.33%
SLM
Private
Credit
Student
Loan
Trust
2006-A
2.18
%,
06
/15/2039
698
680
1.00
x
3
Month
USD
LIBOR
+
0.29%
SLM
Private
Credit
Student
Loan
Trust
2006-B
2.09
%,
12
/15/2039
275
267
1.00
x
3
Month
USD
LIBOR
+
0.20%
SMB
Private
Education
Loan
Trust
2018-A
2.09
%,
03
/16/2026
(d)
153
153
1.00
x
1
Month
USD
LIBOR
+
0.35%
SMB
Private
Education
Loan
Trust
2018-B
2.06
%,
12
/16/2024
(d)
41
41
1.00
x
1
Month
USD
LIBOR
+
0.32%
SMB
Private
Education
Loan
Trust
2018-C
2.04
%,
09
/15/2025
(d)
66
66
1.00
x
1
Month
USD
LIBOR
+
0.30%
SMB
Private
Education
Loan
Trust
2019-A
2.09
%,
02
/16/2026
(d)
126
126
1.00
x
1
Month
USD
LIBOR
+
0.35%
SMB
Private
Education
Loan
Trust
2019-B
2.09
%,
07
/15/2026
(d)
172
171
1.00
x
1
Month
USD
LIBOR
+
0.35%
$
6,515
Telecommunications
-
2.13%
AT&T
Inc
2.80
%,
02
/15/2023
(h)
250
252
3
Month
USD
LIBOR
+
0.89%
3.60
%,
02
/17/2023
200
209
Cisco
Systems
Inc
2.20
%,
02
/28/2021
250
252
Crown
Castle
Towers
LLC
3.22
%,
05
/15/2022
(d)
272
275
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
219
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
Sprint
Spectrum
Co
LLC
/
Sprint
Spectrum
Co
II
LLC
/
Sprint
Spectrum
Co
III
LLC
3.36
%,
03
/20/2023
(d)
$
328
$
331��
4.74
%,
03
/20/2025
(d)
950
1,006
Verizon
Communications
Inc
2.45
%,
05
/22/2020
200
200
3
Month
USD
LIBOR
+
0.55%
Vodafone
Group
PLC
3.75
%,
01
/16/2024
250
264
$
2,789
Transportation
-
0.31%
Ryder
System
Inc
2.25
%,
09
/01/2021
200
201
3.75
%,
06
/09/2023
200
209
$
410
Trucking
&
Leasing
-
0.16%
Penske
Truck
Leasing
Co
Lp
/
PTL
Finance
Corp
3.45
%,
07
/01/2024
(d)
200
208
TOTAL
BONDS
$
118,831
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
4.36%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
0.01%
4.69
%,
09
/01/2035
$
10
$
11
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.25%
$
11
Federal
National
Mortgage
Association
(FNMA)
-
0.07%
3.59
%,
04
/01/2033
20
20
1.00
x
6
Month
USD
LIBOR
+
1.51%
4.04
%,
11
/01/2032
3
3
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.29%
4.30
%,
07
/01/2034
12
12
1.00
x
12
Month
USD
LIBOR
+
1.65%
4.31
%,
08
/01/2034
6
6
1.00
x
12
Month
USD
LIBOR
+
1.63%
4.45
%,
02
/01/2037
19
20
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.09%
4.62
%,
02
/01/2035
3
3
1.00
x
6
Month
USD
LIBOR
+
2.07%
4.77
%,
12
/01/2032
4
4
1.00
x
12
Month
USD
LIBOR
+
1.64%
4.87
%,
01
/01/2035
6
7
1.00
x
12
Month
USD
LIBOR
+
1.75%
4.88
%,
12
/01/2033
11
12
1.00
x
6
Month
USD
LIBOR
+
2.25%
8.00
%,
05
/01/2027
5
5
$
92
U.S.
Treasury
-
4.28%
1.38
%,
08
/31/2020
500
499
1.38
%,
09
/30/2020
1,000
998
1.50
%,
08
/31/2021
500
499
1.63
%,
10
/31/2023
1,000
999
1.63
%,
05
/15/2026
900
891
1.88
%,
07
/31/2026
700
703
2.00
%,
08
/15/2025
500
507
2.63
%,
05
/15/2021
500
507
$
5,603
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
5,706
Total
Investments
$
129,290
Other
Assets
and
Liabilities
- 1.19
%
1,562
TOTAL
NET
ASSETS
-
100.00%
$
130,852
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$309
or
0.24%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$41,136
or
31.44%
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)
Security
is
an
Interest
Only
Strip.
(g)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions. These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(h)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(
i
)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Sector
Percent
Financial
24.85%
Asset
Backed
Securities
21.19%
Government
13.78%
Mortgage
Securities
8.32%
Consumer,
Non-cyclical
5.84%
Utilities
5.40%
Energy
3.86%
Money
Market
Funds
3.63%
Industrial
3.62%
Consumer,
Cyclical
2.42%
Communications
2.39%
Technology
2.28%
Basic
Materials
1.23%
Other
Assets
and
Liabilities
1.19%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
220
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
4,856
$
56,074
$
56,486
$
4,444
$
4,856
$
56,074
$
56,486
$
4,444
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
59
$
—
$
—
$
—
$
59
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
SmallCap
Account
December
31,
2019
See
accompanying
notes.
221
INVESTMENT
COMPANIES
-
6.43%
Shares
Held
Value
(000's)
Money
Market
Funds
-
6.43%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
2,276,045
$
2,276
Principal
Government
Money
Market
Fund
1.41%
(a),(b),(c)
10,017,833
10,018
$
12,294
TOTAL
INVESTMENT
COMPANIES
$
12,294
COMMON
STOCKS
-
98.43%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
1.38%
Aerojet
Rocketdyne
Holdings
Inc
(
d)
57,900
2,644
Agriculture
-
1.62%
Darling
Ingredients
Inc
(
d)
110,600
3,106
Automobile
Parts
&
Equipment
-
0.84%
Modine
Manufacturing
Co
(
d)
47,700
367
Visteon
Corp
(
d)
14,200
1,230
$
1,597
Banks
-
8.22%
BancFirst
Corp
10,300
643
Cathay
General
Bancorp
66,500
2,530
First
Interstate
BancSystem
Inc
36,700
1,539
First
Merchants
Corp
31,900
1,327
First
Midwest
Bancorp
Inc/IL
43,025
992
Flagstar
Bancorp
Inc
35,000
1,339
IBERIABANK
Corp
36,900
2,761
Independent
Bank
Corp/MI
21,900
496
Lakeland
Bancorp
Inc
23,150
402
United
Community
Banks
Inc/GA
74,620
2,304
WesBanco
Inc
36,900
1,395
$
15,728
Biotechnology
-
3.87%
Acceleron
Pharma
Inc
(
d)
18,600
986
Allogene
Therapeutics
Inc
(
d),(e)
21,700
564
Bluebird
Bio
Inc
(
d)
6,100
535
Denali
Therapeutics
Inc
(
d)
37,000
644
DNIB
Unwind
Inc
-
Warrants
(
d),(f),(g)
1,938
—
FibroGen
Inc
(
d)
20,700
888
Insmed
Inc
(
d)
34,700
829
Iovance
Biotherapeutics
Inc
(
d)
10,200
282
MacroGenics
Inc
(
d)
36,500
397
Magenta
Therapeutics
Inc
(
d)
47,400
719
Precision
BioSciences
Inc
(
d)
46,200
642
Seattle
Genetics
Inc
(
d)
8,000
914
$
7,400
Building
Materials
-
0.80%
Builders
FirstSource
Inc
(
d)
60,100
1,527
Chemicals
-
0.81%
Cabot
Corp
32,460
1,543
Commercial
Services
-
8.66%
AMN
Healthcare
Services
Inc
(
d)
43,700
2,723
BrightView
Holdings
Inc
(
d)
75,000
1,265
Brink's
Co/The
25,500
2,312
FTI
Consulting
Inc
(
d)
24,800
2,745
HMS
Holdings
Corp
(
d)
80,000
2,368
ICF
International
Inc
17,700
1,622
K12
Inc
(
d)
58,100
1,182
Korn
Ferry
24,300
1,030
Medifast
Inc
(
e)
7,400
811
Nesco
Holdings
Inc
(
d),(e)
120,800
497
$
16,555
Computers
-
5.05%
CACI
International
Inc
(
d)
9,800
2,450
ExlService
Holdings
Inc
(
d)
23,500
1,632
Parsons
Corp
(
d)
50,000
2,064
Perspecta
Inc
83,900
2,218
Ping
Identity
Holding
Corp
(
d),(e)
53,400
1,298
$
9,662
Consumer
Products
-
0.68%
Central
Garden
&
Pet
Co
-
A
Shares
(
d)
44,520
1,307
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Diversified
Financial
Services
-
3.41%
Hamilton
Lane
Inc
24,046
$
1,433
LPL
Financial
Holdings
Inc
11,900
1,098
Piper
Jaffray
Cos
18,550
1,483
Stifel
Financial
Corp
41,295
2,504
$
6,518
Electric
-
2.48%
PNM
Resources
Inc
46,080
2,337
Portland
General
Electric
Co
43,300
2,415
$
4,752
Electrical
Components
&
Equipment
-
1.25%
EnerSys
26,600
1,991
nLight
Inc
(
d)
19,890
403
$
2,394
Electronics
-
3.25%
Advanced
Energy
Industries
Inc
(
d)
29,600
2,107
SYNNEX
Corp
18,500
2,383
Vishay
Intertechnology
Inc
80,700
1,718
$
6,208
Engineering
&
Construction
-
2.32%
Great
Lakes
Dredge
&
Dock
Corp
(
d)
103,900
1,177
MasTec
Inc
(
d)
35,800
2,297
Tutor
Perini
Corp
(
d)
75,000
965
$
4,439
Entertainment
-
2.87%
Eldorado
Resorts
Inc
(
d),(e)
48,000
2,862
Golden
Entertainment
Inc
(
d)
47,600
915
Vail
Resorts
Inc
7,100
1,703
$
5,480
Environmental
Control
-
0.92%
Tetra
Tech
Inc
20,400
1,758
Food
-
0.95%
Performance
Food
Group
Co
(
d)
35,200
1,812
Forest
Products
&
Paper
-
0.21%
PH
Glatfelter
Co
22,400
410
Gas
-
1.23%
Southwest
Gas
Holdings
Inc
31,050
2,359
Healthcare
-
Products
-
1.60%
Adaptive
Biotechnologies
Corp
(
d)
9,000
269
Nevro
Corp
(
d)
13,600
1,599
RA
Medical
Systems
Inc
(
d),(e)
62,600
71
STAAR
Surgical
Co
(
d)
31,900
1,122
$
3,061
Healthcare
-
Services
-
5.97%
Addus
HomeCare
Corp
(
d)
28,100
2,732
Encompass
Health
Corp
33,600
2,327
Natera
Inc
(
d)
49,077
1,653
Syneos
Health
Inc
(
d)
48,000
2,855
Teladoc
Health
Inc
(
d)
22,200
1,859
$
11,426
Home
Builders
-
1.16%
William
Lyon
Homes
(
d)
110,960
2,217
Insurance
-
4.56%
First
American
Financial
Corp
17,500
1,021
Hanover
Insurance
Group
Inc/The
17,200
2,351
Kemper
Corp
26,510
2,054
MGIC
Investment
Corp
142,900
2,025
National
General
Holdings
Corp
57,400
1,268
$
8,719
Internet
-
0.82%
Eventbrite
Inc
(
d)
57,400
1,158
Revolve
Group
Inc
(
d),(e)
22,198
407
$
1,565
Iron
&
Steel
-
0.64%
Cleveland-Cliffs
Inc
(
e)
145,800
1,225
Schedule
of
Investments
SmallCap
Account
December
31,
2019
See
accompanying
notes.
222
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Leisure
Products
&
Services
-
2.34%
Lindblad
Expeditions
Holdings
Inc
(
d)
36,800
$
602
OneSpaWorld
Holdings
Ltd
(
e)
90,000
1,516
Planet
Fitness
Inc
(
d)
31,700
2,367
$
4,485
Lodging
-
0.95%
Extended
Stay
America
Inc
122,300
1,817
Machinery
-
Diversified
-
0.59%
Columbus
McKinnon
Corp/NY
28,000
1,121
Media
-
0.68%
World
Wrestling
Entertainment
Inc
(
e)
20,000
1,297
Metal
Fabrication
&
Hardware
-
1.52%
Advanced
Drainage
Systems
Inc
23,758
923
Rexnord
Corp
(
d)
61,000
1,990
$
2,913
Mining
-
0.22%
Alcoa
Corp
(
d)
19,400
417
Miscellaneous
Manufacturers
-
1.52%
Hillenbrand
Inc
67,400
2,245
Trinseo
SA
17,800
662
$
2,907
Oil
&
Gas
-
1.92%
Callon
Petroleum
Co
(
d)
139,300
673
Delek
US
Holdings
Inc
23,500
788
PDC
Energy
Inc
(
d)
23,200
607
Ring
Energy
Inc
(
d)
146,700
387
Talos
Energy
Inc
(
d)
29,700
895
Whiting
Petroleum
Corp
(
d)
42,600
313
$
3,663
Oil
&
Gas
Services
-
0.75%
Matrix
Service
Co
(
d)
20,900
478
Select
Energy
Services
Inc
(
d)
103,700
963
$
1,441
Packaging
&
Containers
-
0.89%
Graphic
Packaging
Holding
Co
102,400
1,705
Pharmaceuticals
-
2.28%
Bellicum
Pharmaceuticals
Inc
(
d),(e)
97,299
125
DexCom
Inc
(
d)
2,700
591
Horizon
Therapeutics
Plc
(
d)
71,800
2,599
Revance
Therapeutics
Inc
(
d)
64,500
1,047
$
4,362
REITs
-
8.14%
Agree
Realty
Corp
38,700
2,716
Brandywine
Realty
Trust
141,000
2,221
Cousins
Properties
Inc
60,101
2,476
First
Industrial
Realty
Trust
Inc
69,830
2,899
Ladder
Capital
Corp
89,600
1,616
Pebblebrook
Hotel
Trust
98,320
2,636
Two
Harbors
Investment
Corp
68,560
1,002
$
15,566
Retail
-
3.72%
BJ's
Wholesale
Club
Holdings
Inc
(
d)
88,600
2,015
Caleres
Inc
73,240
1,739
Carvana
Co
(
d)
15,200
1,399
Ruth's
Hospitality
Group
Inc
42,510
925
World
Fuel
Services
Corp
23,900
1,038
$
7,116
Semiconductors
-
1.89%
Entegris
Inc
53,100
2,660
SiTime
Corp
(
d)
37,300
951
$
3,611
Software
-
4.82%
Aspen
Technology
Inc
(
d)
17,500
2,116
Bill.Com
Holdings
Inc
(
d)
4,195
160
Ceridian
HCM
Holding
Inc
(
d)
12,781
867
Cloudflare
Inc
(
d)
34,100
582
Dynatrace
Inc
(
d)
20,900
529
Manhattan
Associates
Inc
(
d)
27,500
2,193
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
SolarWinds
Corp
(
d)
105,288
$
1,953
Sprout
Social
Inc
(
d),(e)
51,100
820
$
9,220
Telecommunications
-
0.63%
Plantronics
Inc
31,100
850
Switch
Inc
24,200
359
$
1,209
TOTAL
COMMON
STOCKS
$
188,262
Total
Investments
$
200,556
Other
Assets
and
Liabilities
- (
4.86)%
(9,293)
TOTAL
NET
ASSETS
-
100.00%
$
191,263
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$9,126
or
4.77%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(g)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$0
or
0.00%
of
net
assets.
Portfolio
Summary (
unaudited)
Sector
Percent
Consumer,
Non-cyclical
25.63%
Financial
24.33%
Industrial
14.44%
Consumer,
Cyclical
11.88%
Technology
11.76%
Money
Market
Funds
6.43%
Utilities
3.71%
Energy
2.67%
Communications
2.13%
Basic
Materials
1.88%
Other
Assets
and
Liabilities
(
4.86)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SmallCap
Account
December
31,
2019
See
accompanying
notes.
223
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
1,443
$
90,883
$
82,308
$
10,018
$
1,443
$
90,883
$
82,308
$
10,018
Income
(a
)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
82
$
—
$
—
$
—
$
82
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Glossary
to
the
Schedule
of
Investments
December
31,
2019
See
accompanying
notes.
224
Currency
Abbreviations
USD/$
United
States
Dollar
See
accompanying
notes.
226
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
BOND
MARKET
INDEX
ACCOUNT
Class
1
shares
2019
$
10
.15
$
0
.28
$
0
.58
$
0
.86
(
$
0
.29
)
$
–
(
$
0
.29
)
$
10
.72
2018
10
.39
0
.26
(
0
.28
)
(
0
.02
)
(
0
.22
)
–
(
0
.22
)
10
.15
2017
10
.25
0
.22
0
.11
0
.33
(
0
.19
)
–
(
0
.19
)
10
.39
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
CORE
PLUS
BOND
ACCOUNT
Class
1
shares
2019
10
.81
0
.34
0
.72
1
.06
(
0
.37
)
–
(
0
.37
)
11
.50
2018
11
.35
0
.36
(
0
.52
)
(
0
.16
)
(
0
.38
)
–
(
0
.38
)
10
.81
2017
11
.15
0
.35
0
.18
0
.53
(
0
.33
)
–
(
0
.33
)
11
.35
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
DIVERSIFIED
BALANCED
ACCOUNT
Class
1
shares
2019
14
.87
0
.36
2
.34
2
.70
(
0
.35
)
(
0
.70
)
(
1
.05
)
16
.52
2018
15
.98
0
.31
(
0
.78
)
(
0
.47
)
(
0
.43
)
(
0
.21
)
(
0
.64
)
14
.87��
2017(e)
15
.36
0
.45
0
.65
1
.10
(
0
.26
)
(
0
.22
)
(
0
.48
)
15
.98
Class
2
shares
2019
14
.88
0
.32
2
.36
2
.68
(
0
.31
)
(
0
.70
)
(
1
.01
)
16
.55
2018
15
.99
0
.27
(
0
.78
)
(
0
.51
)
(
0
.39
)
(
0
.21
)
(
0
.60
)
14
.88
2017
14
.76
0
.35
1
.32
1
.67
(
0
.22
)
(
0
.22
)
(
0
.44
)
15
.99
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
See
accompanying
notes.
227
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Gross
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
8
.47
%
$
2,539,460
0
.15
%
(c)
–
%
2
.60
%
93
.6
%
(
0
.19
)
2,213,355
0
.15
(c)
–
2
.52
123
.1
3
.27
2,448,068
0
.23
(c)
–
2
.10
108
.9
2
.29
2,184,608
0
.25
–
1
.86
118
.5
0
.13
1,937,655
0
.25
–
1
.77
154
.0
9
.81
252,874
0
.47
–
2
.99
152
.4
(
1
.41
)
280,760
0
.47
–
3
.27
127
.5
4
.81
293,662
0
.46
–
3
.08
123
.5
4
.09
292,436
0
.46
–
2
.79
155
.1
(
0
.48
)
290,032
0
.46
–
2
.80
177
.2
18
.43
40,694
0
.05
(d)
0
.05
(d)
2
.25
16
.9
(
3
.14
)
36,763
0
.05
(d)
0
.05
(d)
1
.95
15
.7
7
.27
(f)
42,702
0
.05
(d)
,(g)
0
.05
(d)
,(g)
4
.27
(g)
13
.9
(g)
18
.23
988,264
0
.30
(d)
0
.30
(d)
,(h)
1
.96
16
.9
(
3
.40
)
968,449
0
.30
(d)
0
.30
(d)
,(h)
1
.69
15
.7
11
.43
1,131,373
0
.30
(d)
0
.30
(d)
,(h)
2
.27
13
.9
6
.90
1,099,647
0
.30
(d)
0
.30
(d)
,(h)
1
.51
14
.1
0
.16
1,031,111
0
.30
(d)
0
.30
(d)
,(h)
1
.29
14
.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
Account
invests.
(e)
Period
from
May
1,
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.
228
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
DIVERSIFIED
BALANCED
MANAGED
VOLATILITY
ACCOUNT
Class
2
shares
2019
$
11.34
$
0.23
$
1.74
$
1.97
(
$
0.21)
(
$
0.19)
(
$
0.40)
$
12.91
2018
12.25
0.19
(
0.55)
(
0.36)
(
0.46)
(
0.09)
(
0.55)
11.34
2017
11.27
0.43
0.78
1.21
(
0.15)
(
0.08)
(
0.23)
12.25
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
DIVERSIFIED
BALANCED
VOLATILITY
CONTROL
ACCOUNT
Class
2
shares
2019
10.31
0.28
1.30
1.58
(
0.09)
(
0.09)
(
0.18)
11.71
2018
10.80
0.20
(
0.58)
(
0
.38)
(
0.08)
(
0.03)
(
0.11)
10.31
2017(f)
10.00
0.27
0.53
0.80
–
–
–
10.80
DIVERSIFIED
GROWTH
ACCOUNT
Class
2
shares
2019
16.29
0.34
3.06
3.40
(
0.33)
(
0.67)
(
1.00)
18.69
2018
17.66
0.30
(
1.03)
(
0.73)
(
0.45)
(
0.19)
(
0.64)
16.29
2017
15.93
0.43
1.79
2.22
(
0.23)
(
0.26)
(
0.49)
17.66
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
See
accompanying
notes.
229
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Gross
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
17.48
%
$
176,235
0.31
%
(c),(d)
–
%
1.90
%
21.3
%
(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
15.47
145,371
0.38
(c),(d)
–
2.47
33.1
(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)
21.20
3,772,145
0.30
(d)
0.30
(d),(i)
1.89
16.0
(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
(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.
230
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
DIVERSIFIED
GROWTH
MANAGED
VOLATILITY
ACCOUNT
Class
2
shares
2019
$
11.61
$
0.23
$
2.09
$
2.32
(
$
0.20)
(
$
0.20)
(
$
0.40)
$
13.53
2018
12.72
0.19
(
0.66)
(
0.47)
(
0.54)
(
0.10)
(
0.64)
11.61
2017
11.46
0.52
0.99
1.51
(
0.15)
(
0.10)
(
0.25)
12.72
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
DIVERSIFIED
GROWTH
VOLATILITY
CONTROL
ACCOUNT
Class
2
shares
2019
10.37
0.26
1.55
1.81
(
0.10)
(
0.08)
(
0.18)
12.00
2018
10.97
0.21
(
0.71)
(
0.50)
(
0.07)
(
0.03)
(
0.10)
10.37
2017(e)
10.00
0.30
0.67
0.97
–
–
–
10.97
DIVERSIFIED
INCOME
ACCOUNT
Class
2
shares
2019
12.46
0.29
1.58
1.87
(
0.22)
(
0.29)
(
0.51)
13.82
2018
13.12
0.22
(
0.51)
(
0.29)
(
0.28)
(
0.09)
(
0.37)
12.46
2017
12.34
0.26
0.82
1.08
(
0.18)
(
0.12)
(
0.30)
13.12
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
See
accompanying
notes.
231
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Gross
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
20.18
%
$
353,687
0.31
%
(c),(d)
–
%
1.80
%
18.8
%
(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
17.57
765,417
0.37
(c),(d)
–
2.32
36.2
(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)
15.16
279,888
0.31
(d)
0.31
(d),(h)
2.16
25.6
(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
(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.
232
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
DIVERSIFIED
INTERNATIONAL
ACCOUNT
Class
1
shares
2019
$
13
.72
$
0
.28
$
2
.75
$
3
.03
(
$
0
.26
)
(
$
0
.78
)
(
$
1
.04
)
$
15
.71
2018
17
.01
0
.31
(
3
.25
)
(
2
.94
)
(
0
.35
)
–
(
0
.35
)
13
.72
2017
13
.42
0
.21
3
.67
3
.88
(
0
.29
)
–
(
0
.29
)
17
.01
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
EQUITY
INCOME
ACCOUNT
Class
1
shares
2019
22
.86
0
.56
6
.00
6
.56
(
0
.51
)
(
0
.72
)
(
1
.23
)
28
.19
2018
26
.08
0
.64
(
1
.72
)
(
1
.08
)
(
0
.52
)
(
1
.62
)
(
2
.14
)
22
.86
2017
23
.20
0
.56
4
.14
4
.70
(
0
.58
)
(
1
.24
)
(
1
.82
)
26
.08
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
Class
2
shares
2019
22
.66
0
.49
5
.95
6
.44
(
0
.45
)
(
0
.72
)
(
1
.17
)
27
.93
2018
25
.87
0
.57
(
1
.70
)
(
1
.13
)
(
0
.46
)
(
1
.62
)
(
2
.08
)
22
.66
2017
23
.03
0
.49
4
.11
4
.60
(
0
.52
)
(
1
.24
)
(
1
.76
)
25
.87
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
GOVERNMENT
&
HIGH
QUALITY
BOND
ACCOUNT
Class
1
shares
2019
9
.47
0
.22
0
.39
0
.61
(
0
.27
)
–
(
0
.27
)
9
.81
2018
9
.76
0
.23
(
0
.15
)
0
.08
(
0
.37
)
–
(
0
.37
)
9
.47
2017
9
.98
0
.31
(
0
.12
)
0
.19
(
0
.41
)
–
(
0
.41
)
9
.76
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
INTERNATIONAL
EMERGING
MARKETS
ACCOUNT
Class
1
shares
2019
15
.12
0
.40
2
.20
2
.60
(
0
.15
)
(
0
.44
)
(
0
.59
)
17
.13
2018
19
.40
0
.19
(
4
.25
)
(
4
.06
)
(
0
.22
)
–
(
0
.22
)
15
.12
2017
13
.94
0
.15
5
.53
5
.68
(
0
.22
)
–
(
0
.22
)
19
.40
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
See
accompanying
notes.
233
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
22
.69
%
$
266,768
0
.93
%
1
.86
%
43
.7
%
(
17
.54
)
233,612
0
.91
1
.91
59
.3
29
.06
292,975
0
.91
1
.37
42
.8
0
.36
243,997
0
.91
1
.77
56
.8
(
0
.35
)
273,300
0
.88
1
.80
48
.2
29
.09
741,311
0
.47
2
.16
17
.9
(
5
.01
)
636,177
0
.49
2
.47
13
.2
21
.08
572,629
0
.50
2
.26
15
.9
15
.72
525,829
0
.50
2
.54
17
.1
(
3
.93
)
513,126
0
.49
2
.54
10
.7
28
.78
31,874
0
.72
1
.91
17
.9
(
5
.24
)
25,207
0
.74
2
.23
13
.2
20
.77
27,469
0
.75
2
.00
15
.9
15
.43
24,197
0
.75
2
.29
17
.1
(
4
.15
)
23,215
0
.74
2
.29
10
.7
6
.45
241,332
0
.51
2
.26
22
.5
0
.91
219,612
0
.51
2
.43
17
.4
1
.88
241,839
0
.51
3
.09
24
.3
1
.80
247,620
0
.51
3
.25
25
.8
0
.79
286,659
0
.51
2
.61
21
.9
17
.60
89,729
1
.20
(c)
2
.46
112
.5
(
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
(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.
See
accompanying
notes.
234
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
LARGECAP
GROWTH
ACCOUNT
I
Class
1
shares
2019
$
30
.10
$
0
.01
$
10
.27
$
10
.28
(
$
0
.02
)
(
$
2
.72
)
(
$
2
.74
)
$
37
.64
2018
31
.18
0
.03
1
.41
1
.44
(
0
.01
)
(
2
.51
)
(
2
.52
)
30
.10
2017
24
.55
0
.01
8
.13
8
.14
(
0
.01
)
(
1
.50
)
(
1
.51
)
31
.18
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
LARGECAP
S&P
500
INDEX
ACCOUNT
Class
1
shares
2019
16
.39
0
.34
4
.66
5
.00
(
0
.37
)
(
0
.83
)
(
1
.20
)
20
.19
2018
18
.06
0
.36
(
1
.06
)
(
0
.70
)
(
0
.32
)
(
0
.65
)
(
0
.97
)
16
.39
2017
15
.44
0
.29
2
.97
3
.26
(
0
.29
)
(
0
.35
)
(
0
.64
)
18
.06
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
Class
2
shares
2019
16
.24
0
.29
4
.62
4
.91
(
0
.35
)
(
0
.83
)
(
1
.18
)
19
.97
2018
17
.95
0
.32
(
1
.07
)
(
0
.75
)
(
0
.31
)
(
0
.65
)
(
0
.96
)
16
.24
2017
15
.38
0
.25
2
.95
3
.20
(
0
.28
)
(
0
.35
)
(
0
.63
)
17
.95
2016
14
.39
0
.26
1
.35
1
.61
(
0
.25
)
(
0
.37
)
(
0
.62
)
15
.38
2015(d)
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
2019
12
.74
0
.23
3
.36
3
.59
(
0
.24
)
(
1
.03
)
(
1
.27
)
15
.06
2018
13
.42
0
.23
(
0
.71
)
(
0
.48
)
(
0
.20
)
–
(
0
.20
)
12
.74
2017
12
.15
0
.18
2
.11
2
.29
(
0
.18
)
(
0
.84
)
(
1
.02
)
13
.42
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
See
accompanying
notes.
235
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
34
.92
%
$
502,653
0
.71
%
(c)
0
.03
%
30
.4
%
3
.60
296,139
0
.74
(c)
0
.08
36
.9
33
.71
302,147
0
.75
(c)
0
.03
36
.2
1
.26
244,058
0
.76
(c)
0
.04
36
.8
7
.77
252,386
0
.76
(c)
0
.07
38
.6
31
.10
2,693,344
0
.25
1
.80
3
.5
(
4
.58
)
2,378,088
0
.25
1
.94
8
.7
21
.49
2,563,986
0
.25
1
.71
3
.0
11
.59
2,262,283
0
.25
1
.96
6
.4
1
.14
2,033,459
0
.25
1
.82
6
.3
30
.82
15,834
0
.50
1
.56
3
.5
(
4
.90
)
7,081
0
.50
1
.77
8
.7
21
.20
3,234
0
.50
1
.46
3
.0
11
.30
766
0
.50
1
.74
6
.4
(
1
.95
)
(e)
161
0
.50
(f)
1
.78
(f)
6
.3
(f)
28
.92
217,779
0
.47
1
.59
3
.8
(
3
.73
)
205,655
0
.46
1
.64
11
.2
19
.55
222,026
0
.46
(c)
1
.40
3
.0
10
.33
198,548
0
.46
(c)
1
.63
4
.8
0
.83
161,654
0
.47
(c)
1
.46
5
.5
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
(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.
236
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
MIDCAP
ACCOUNT
Class
1
shares
2019
$
48
.53
$
0
.43
$
19
.93
$
20
.36
(
$
0
.17
)
(
$
8
.79
)
(
$
8
.96
)
$
59
.93
2018
59
.42
0
.17
(
2
.93
)
(
2
.76
)
(
0
.17
)
(
7
.96
)
(
8
.13
)
48
.53
2017
50
.96
0
.19
12
.48
12
.67
(
0
.32
)
(
3
.89
)
(
4
.21
)
59
.42
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
Class
2
shares
2019
48
.19
0
.28
19
.77
20
.05
(
0
.03
)
(
8
.79
)
(
8
.82
)
59
.42
2018
59
.05
0
.02
(
2
.89
)
(
2
.87
)
(
0
.03
)
(
7
.96
)
(
7
.99
)
48
.19
2017
50
.69
0
.05
12
.39
12
.44
(
0
.19
)
(
3
.89
)
(
4
.08
)
59
.05
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
PRINCIPAL
CAPITAL
APPRECIATION
ACCOUNT
Class
1
shares
2019
25
.86
0
.38��
7
.77
8
.15
(
0
.50
)
(
2
.79
)
(
3
.29
)
30
.72
2018
28
.54
0
.44
(
1
.19
)
(
0
.75
)
(
0
.34
)
(
1
.59
)
(
1
.93
)
25
.86
2017
23
.94
0
.28
4
.66
4
.94
(
0
.34
)
–
(
0
.34
)
28
.54
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
Class
2
shares
2019
25
.58
0
.30
7
.67
7
.97
(
0
.44
)
(
2
.79
)
(
3
.23
)
30
.32
2018
28
.25
0
.37
(
1
.17
)
(
0
.80
)
(
0
.28
)
(
1
.59
)
(
1
.87
)
25
.58
2017
23
.71
0
.22
4
.60
4
.82
(
0
.28
)
–
(
0
.28
)
28
.25
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
PRINCIPAL
LIFETIME
2010
ACCOUNT
Class
1
shares
2019
12
.18
0
.32
1
.37
1
.69
(
0
.39
)
(
0
.73
)
(
1
.12
)
12
.75
2018
13
.41
0
.32
(
0
.80
)
(
0
.48
)
(
0
.41
)
(
0
.34
)
(
0
.75
)
12
.18
2017
12
.48
0
.34
1
.07
1
.41
(
0
.29
)
(
0
.19
)
(
0
.48
)
13
.41
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
See
accompanying
notes.
237
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
43
.10
%
(c)
$
587,854
0
.55
%
0
.72
%
10
.5
%
(
6
.55
)
474,365
0
.54
0
.29
24
.6
25
.51
575,104
0
.54
0
.34
13
.4
10
.37
576,634
0
.54
0
.62
13
.6
1
.64
617,437
0
.53
0
.37
26
.3
42
.72
(c)
20,808
0
.80
0
.48
10
.5
(
6
.79
)
(c)
15,710
0
.79
0
.04
24
.6
25
.19
(c)
17,792
0
.79
0
.09
13
.4
10
.11
14,985
0
.79
0
.38
13
.6
1
.37
15,243
0
.78
0
.12
26
.3
32
.49
143,227
0
.64
1
.27
29
.5
(
3
.41
)
128,547
0
.63
1
.52
44
.9
20
.75
154,472
0
.63
1
.07
28
.5
9
.11
147,193
0
.63
1
.31
33
.7
2
.18
154,732
0
.64
1
.33
22
.1
(d)
32
.10
13,536
0
.89
1
.03
29
.5
(
3
.64
)
(c)
8,757
0
.88
1
.28
44
.9
20
.46
(c)
8,526
0
.88
0
.83
28
.5
8
.85
7,420
0
.88
1
.06
33
.7
1
.94
7,517
0
.89
1
.05
22
.1
(d)
14
.10
31,499
0
.04
(e)
2
.51
60
.8
(
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
(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)
Portfolio
turnover
rate
excludes
approximately
$1,237,000
of
purchases
from
portfolio
realignment
from
the
acquisition
of
LargeCap
Blend
Account
II.
(e)
Does
not
include
expenses
of
the
investment
companies
in
which
the
Account
invests.
See
accompanying
notes.
238
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
PRINCIPAL
LIFETIME
2020
ACCOUNT
Class
1
shares
2019
$
12
.60
$
0
.34
$
1
.90
$
2
.24
(
$
0
.34
)
(
$
0
.60
)
(
$
0
.94
)
$
13
.90
2018
14
.11
0
.33
(
1
.04
)
(
0
.71
)
(
0
.38
)
(
0
.42
)
(
0
.80
)
12
.60
2017
12
.66
0
.36
1
.52
1
.88
(
0
.27
)
(
0
.16
)
(
0
.43
)
14
.11
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
PRINCIPAL
LIFETIME
2030
ACCOUNT
Class
1
shares
2019
11
.58
0
.32
2
.18
2
.50
(
0
.27
)
(
0
.69
)
(
0
.96
)
13
.12
2018
13
.17
0
.29
(
1
.15
)
(
0
.86
)
(
0
.32
)
(
0
.41
)
(
0
.73
)
11
.58
2017
11
.45
0
.34
1
.73
2
.07
(
0
.20
)
(
0
.15
)
(
0
.35
)
13
.17
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
PRINCIPAL
LIFETIME
2040
ACCOUNT
Class
1
shares
2019
13
.94
0
.37
3
.01
3
.38
(
0
.30
)
(
0
.80
)
(
1
.10
)
16
.22
2018
15
.97
0
.34
(
1
.50
)
(
1
.16
)
(
0
.33
)
(
0
.54
)
(
0
.87
)
13
.94
2017
13
.52
0
.36
2
.41
2
.77
(
0
.20
)
(
0
.12
)
(
0
.32
)
15
.97
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
PRINCIPAL
LIFETIME
2050
ACCOUNT
Class
1
shares
2019
13
.37
0
.32
3
.12
3
.44
(
0
.29
)
(
0
.93
)
(
1
.22
)
15
.59
2018
15
.62
0
.31
(
1
.53
)
(
1
.22
)
(
0
.33
)
(
0
.70
)
(
1
.03
)
13
.37
2017
13
.06
0
.32
2
.55
2
.87
(
0
.19
)
(
0
.12
)
(
0
.31
)
15
.62
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
See
accompanying
notes.
239
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
18
.12
%
$
190,475
0
.01
%
(c)
2
.47
%
52
.7
%
(
5
.40
)
172,173
0
.01
(c)
2
.37
28
.7
15
.00
197,935
0
.00
(c)
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
22
.01
182,172
0
.01
(c)
2
.47
35
.8
(
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
24
.74
85,405
0
.02
(c)
2
.36
28
.8
(
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
26
.39
38,881
0
.04
(c)
2
.11
24
.9
(
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
(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.
See
accompanying
notes.
240
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
PRINCIPAL
LIFETIME
2060
ACCOUNT
Class
1
shares
2019
$
12
.32
$
0
.30
$
2
.99
$
3
.29
(
$
0
.20
)
(
$
0
.73
)
(
$
0
.93
)
$
14
.68
2018
14
.38
0
.25
(
1
.47
)
(
1
.22
)
(
0
.31
)
(
0
.53
)
(
0
.84
)
12
.32
2017
11
.88
0
.40
2
.29
2
.69
(
0
.12
)
(
0
.07
)
(
0
.19
)
14
.38
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
PRINCIPAL
LIFETIME
STRATEGIC
INCOME
ACCOUNT
Class
1
shares
2019
11
.30
0
.33
1
.06
1
.39
(
0
.29
)
(
0
.48
)
(
0
.77
)
11
.92
2018
12
.11
0
.31
(
0
.66
)
(
0
.35
)
(
0
.33
)
(
0
.13
)
(
0
.46
)
11
.30
2017
11
.40
0
.30
0
.69
0
.99
(
0
.28
)
–
(
0
.28
)
12
.11
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
REAL
ESTATE
SECURITIES
ACCOUNT
Class
1
shares
2019
17
.86
0
.34
5
.18
5
.52
(
0
.40
)
(
1
.48
)
(
1
.88
)
21
.50
2018
20
.62
0
.37
(
1
.09
)
(
0
.72
)
(
0
.37
)
(
1
.67
)
(
2
.04
)
17
.86
2017
21
.30
0
.25
1
.62
1
.87
(
0
.39
)
(
2
.16
)
(
2
.55
)
20
.62
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
Class
2
shares
2019
17
.92
0
.30
5
.18
5
.48
(
0
.36
)
(
1
.48
)
(
1
.84
)
21
.56
2018
20
.70
0
.34
(
1
.12
)
(
0
.78
)
(
0
.33
)
(
1
.67
)
(
2
.00
)
17
.92
2017
21
.36
0
.19
1
.64
1
.83
(
0
.33
)
(
2
.16
)
(
2
.49
)
20
.70
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
See
accompanying
notes.
241
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
27
.24
%
$
8,131
0
.10
%
(c)
,(d)
2
.15
%
38
.6
%
(
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
12
.46
26,279
0
.06
(d)
2
.79
69
.0
(
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
31
.26
155,569
0
.88
(c)
1
.62
19
.3
(
4
.21
)
133,429
0
.89
1
.89
17
.3
9
.19
154,615
0
.89
1
.19
19
.6
5
.85
158,760
0
.89
1
.38
31
.3
4
.21
159,292
0
.89
1
.54
22
.8
30
.94
6,361
1
.13
(c)
1
.43
19
.3
(
4
.47
)
3,493
1
.14
1
.73
17
.3
8
.94
2,830
1
.14
0
.89
19
.6
5
.53
4,215
1
.14
1
.26
31
.3
4
.00
1,994
1
.14
1
.56
22
.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
Account
invests.
See
accompanying
notes.
242
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
BALANCED
PORTFOLIO
Class
1
shares
2019
$
13
.90
$
0
.31
$
2
.43
$
2
.74
(
$
0
.40
)
(
$
0
.57
)
(
$
0
.97
)
$
15
.67
2018
15
.89
0
.36
(
1
.07
)
(
0
.71
)
(
0
.50
)
(
0
.78
)
(
1
.28
)
13
.90
2017
14
.44
0
.45
1
.71
2
.16
(
0
.34
)
(
0
.37
)
(
0
.71
)
15
.89
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
Class
2
shares
2019
13
.74
0
.28
2
.39
2
.67
(
0
.36
)
(
0
.57
)
(
0
.93
)
15
.48
2018
15
.72
0
.32
(
1
.06
)
(
0
.74
)
(
0
.46
)
(
0
.78
)
(
1
.24
)
13
.74
2017
14
.30
0
.42
1
.67
2
.09
(
0
.30
)
(
0
.37
)
(
0
.67
)
15
.72
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
SAM
CONSERVATIVE
BALANCED
PORTFOLIO
Class
1
shares
2019
11
.05
0
.28
1
.45
1
.73
(
0
.35
)
(
0
.24
)
(
0
.59
)
12
.19
2018
12
.33
0
.34
(
0
.73
)
(
0
.39
)
(
0
.42
)
(
0
.47
)
(
0
.89
)
11
.05
2017
11
.50
0
.38
0
.92
1
.30
(
0
.34
)
(
0
.13
)
(
0
.47
)
12
.33
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
Class
2
shares
2019
10
.91
0
.25
1
.43
1
.68
(
0
.32
)
(
0
.24
)
(
0
.56
)
12
.03
2018
12
.19
0
.31
(
0
.73
)
(
0
.42
)
(
0
.39
)
(
0
.47
)
(
0
.86
)
10
.91
2017
11
.38
0
.36
0
.89
1
.25
(
0
.31
)
(
0
.13
)
(
0
.44
)
12
.19
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
SAM
CONSERVATIVE
GROWTH
PORTFOLIO
Class
1
shares
2019
17
.16
0
.36
3
.68
4
.04
(
0
.36
)
(
0
.90
)
(
1
.26
)
19
.94
2018
19
.86
0
.35
(
1
.51
)
(
1
.16
)
(
0
.56
)
(
0
.98
)
(
1
.54
)
17
.16
2017
17
.22
0
.54
2
.82
3
.36
(
0
.30
)
(
0
.42
)
(
0
.72
)
19
.86
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
Class
2
shares
2019
16
.92
0
.32
3
.61
3
.93
(
0
.32
)
(
0
.90
)
(
1
.22
)
19
.63
2018
19
.60
0
.31
(
1
.50
)
(
1
.19
)
(
0
.51
)
(
0
.98
)
(
1
.49
)
16
.92
2017
17
.01
0
.49
2
.78
3
.27
(
0
.26
)
(
0
.42
)
(
0
.68
)
19
.60
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
See
accompanying
notes.
243
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
20
.01
%
$
574,960
0
.24
%
(c)
,(d)
2
.06
%
23
.0
%
(
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
19
.74
123,870
0
.49
(c)
,(d)
1
.89
23
.0
(
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
15
.88
164,095
0
.24
(c)
,(d)
2
.32
30
.8
(
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
15
.66
25,380
0
.49
(c)
,(d)
2
.15
30
.8
(
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
24
.06
213,346
0
.24
(c)
,(d)
1
.89
16
.2
(
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
23
.68
143,501
0
.49
(c)
,(d)
1
.68
16
.2
(
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
(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.
244
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
FLEXIBLE
INCOME
PORTFOLIO
Class
1
shares
2019
$
11
.86
$
0
.33
$
1
.22
$
1
.55
(
$
0
.46
)
(
$
0
.37
)
(
$
0
.83
)
$
12
.58
2018
12
.95
0
.40
(
0
.63
)
(
0
.23
)
(
0
.53
)
(
0
.33
)
(
0
.86
)
11
.86
2017
12
.45
0
.47
0
.56
1
.03
(
0
.44
)
(
0
.09
)
(
0
.53
)
12
.95
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
Class
2
shares
2019
11
.74
0
.31
1
.19
1
.50
(
0
.43
)
(
0
.37
)
(
0
.80
)
12
.44
2018
12
.83
0
.38
(
0
.63
)
(
0
.25
)
(
0
.51
)
(
0
.33
)
(
0
.84
)
11
.74
2017
12
.34
0
.45
0
.54
0
.99
(
0
.41
)
(
0
.09
)
(
0
.50
)
12
.83
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
SAM
STRATEGIC
GROWTH
PORTFOLIO
Class
1
shares
2019
18
.36
0
.39
4
.54
4
.93
(
0
.33
)
(
1
.11
)
(
1
.44
)
21
.85
2018
21
.72
0
.33
(
2
.01
)
(
1
.68
)
(
0
.52
)
(
1
.16
)
(
1
.68
)
18
.36
2017
18
.54
0
.51
3
.54
4
.05
(
0
.30
)
(
0
.57
)
(
0
.87
)
21
.72
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
Class
2
shares
2019
18
.11
0
.34
4
.47
4
.81
(
0
.28
)
(
1
.11
)
(
1
.39
)
21
.53
2018
21
.46
0
.28
(
2
.00
)
(
1
.72
)
(
0
.47
)
(
1
.16
)
(
1
.63
)
18
.11
2017
18
.33
0
.47
3
.48
3
.95
(
0
.25
)
(
0
.57
)
(
0
.82
)
21
.46
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
SHORT-TERM
INCOME
ACCOUNT
Class
1
shares
2019
2
.52
0
.06
0
.06
0
.12
(
0
.07
)
–
(
0
.07
)
2
.57
2018
2
.55
0
.06
(
0
.03
)
0
.03
(
0
.06
)
–
(
0
.06
)
2
.52
2017
2
.54
0
.05
0
.01
0
.06
(
0
.05
)
–
(
0
.05
)
2
.55
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
SMALLCAP
ACCOUNT
Class
1
shares
2019
14
.30
0
.08
3
.67
3
.75
(
0
.06
)
(
2
.66
)
(
2
.72
)
15
.33
2018
17
.10
0
.03
(
1
.62
)
(
1
.59
)
(
0
.06
)
(
1
.15
)
(
1
.21
)
14
.30
2017
15
.21
0
.06
1
.89
1
.95
(
0
.06
)
–
(
0
.06
)
17
.10
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
Class
2
shares
2019
14
.24
0
.04
3
.66
3
.70
(
0
.02
)
(
2
.66
)
(
2
.68
)
15
.26
2018
17
.04
(
0
.01
)
(
1
.62
)
(
1
.63
)
(
0
.02
)
(
1
.15
)
(
1
.17
)
14
.24
2017
15
.17
0
.02
1
.87
1
.89
(
0
.02
)
–
(
0
.02
)
17
.04
2016
13
.52
0
.11
2
.15
2
.26
(
0
.01
)
(
0
.60
)
(
0
.61
)
15
.17
2015(f)
14
.49
0
.02
(
0
.53
)
(
0
.51
)
(
0
.01
)
(
0
.45
)
(
0
.46
)
13
.52
See
accompanying
notes.
245
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
13
.25
%
$
157,922
0
.24
%
(c)
2
.65
%
37
.4
%
(
1
.97
)
157,019
0
.23
(c)
3
.19
19
.9
8
.41
194,742
0
.23
(c)
3
.69
29
.3
7
.04
196,393
0
.23
(c)
3
.32
17
.1
(
1
.31
)
200,828
0
.23
(c)
3
.05
25
.2
12
.97
30,663
0
.49
(c)
2
.46
37
.4
(
2
.20
)
25,656
0
.48
(c)
3
.07
19
.9
8
.13
23,003
0
.48
(c)
3
.57
29
.3
6
.73
20,085
0
.48
(c)
3
.06
17
.1
(
1
.55
)
21,108
0
.48
(c)
2
.85
25
.2
27
.44
169,489
0
.24
(c)
,(d)
1
.89
20
.3
(
8
.60
)
140,247
0
.23
(c)
,(d)
1
.56
37
.8
22
.22
163,861
0
.23
(c)
2
.50
37
.7
6
.15
145,083
0
.23
(c)
1
.61
23
.4
(
1
.62
)
142,227
0
.23
(c)
1
.45
37
.9
27
.13
145,924
0
.49
(c)
,(d)
1
.67
20
.3
(
8
.87
)
114,902
0
.48
(c)
,(d)
1
.34
37
.8
21
.95
126,632
0
.48
(c)
2
.33
37
.7
5
.90
103,870
0
.48
(c)
1
.41
23
.4
(
1
.87
)
95,775
0
.48
(c)
1
.19
37
.9
4
.70
130,852
0
.51
(d)
2
.31
54
.2
1
.02
149,075
0
.50
(d)
2
.19
49
.9
2
.39
158,446
0
.50
(d)
2
.01
67
.3
2
.14
170,538
0
.50
(d)
1
.91
48
.6
0
.71
160,833
0
.49
(d)
1
.63
57
.0
27
.40
184,434
0
.84
0
.53
34
.7
(
10
.89
)
163,243
0
.83
0
.20
45
.0
12
.87
208,669
0
.83
0
.37
64
.1
17
.39
209,911
0
.83
1
.08
57
.1
(
0
.10
)
205,344
0
.83
0
.33
63
.3
27
.12
6,829
1
.09
0
.28
34
.7
(
11
.17
)
(e)
4,874
1
.08
(
0
.05
)
45
.0
12
.57
(e)
5,371
1
.08
0
.12
64
.1
17
.15
4,938
1
.08
0
.80
57
.1
(
3
.76
)
(g)
4,523
1
.08
(h)
0
.13
(h)
63
.3
(h)
(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
Portfolio
invests.
(d)
Reflects
Manager's
contractual
expense
limit.
(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
February
17,
2015
date
operations
commenced,
through
December
31,
2015.
(g)
Total
return
amounts
have
not
been
annualized.
(h)
Computed
on
an
annualized
basis.
Report
of
Independent
Registered
Public
Accounting
Firm
246
To
the
Shareholders
and
the
Board
of
Directors
of
Principal
Variable
Contracts
Funds,
Inc.
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities
of
Principal
Variable
Contracts
Funds,
Inc.
(the
“Fund”)
(comprising
Bond
Market
Index
Account,
Core
Plus
Bond
Account,
Diversified
Balanced
Account,
Diversified
Balanced
Managed
Volatility
Account,
Diversified
Balanced
Volatility
Control
Account,
Diversified
Growth
Account,
Diversified
Growth
Managed
Volatility
Account,
Diversified
Growth
Volatility
Control
Account,
Diversified
Income
Account,
Diversified
International
Account,
Equity
Income
Account,
Government
&
High
Quality
Bond
Account,
International
Emerging
Markets
Account,
LargeCap
Growth
Account
I,
LargeCap
S&P
500
Index
Account,
LargeCap
S&P
500
Managed
Volatility
Index
Account,
MidCap
Account,
Principal
Capital
Appreciation
Account,
Principal
LifeTime
2010
Account,
Principal
LifeTime
2020
Account,
Principal
LifeTime
2030
Account,
Principal
LifeTime
2040
Account,
Principal
LifeTime
2050
Account,
Principal
LifeTime
2060
Account,
Principal
LifeTime
Strategic
Income
Account,
Real
Estate
Securities
Account,
SAM
Balanced
Portfolio,
SAM
Conservative
Balanced
Portfolio,
SAM
Conservative
Growth
Portfolio,
SAM
Flexible
Income
Portfolio,
SAM
Strategic
Growth
Portfolio,
Short-Term
Income
Account,
and
SmallCap
Account
(collectively
referred
to
as
the
“Accounts”)),
including
the
schedules
of
investments,
as
of
December
31,
2019,
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,
2019,
the
results
of
their
operations,
changes
in
net
assets
and
financial
highlights
for
each
of
the
periods
indicated
in
the
table
below,
in
conformity
with
U.S.
generally
accepted
accounting
principles.
Accounts
comprising
the
Fund
Statement
of
operations
Statements
of
changes
in
net
assets
Financial
highlights
Bond
Market
Index
Account
Core
Plus
Bond
Account
Diversified
Balanced
Account
Diversified
Balanced
Managed
Volatility
Account
Diversified
Growth
Account
Diversified
Growth
Managed
Volatility
Account
Diversified
Income
Account
Diversified
International
Account
Equity
Income
Account
Government
&
High
Quality
Bond
Account
International
Emerging
Markets
Account
LargeCap
Growth
Account
I
LargeCap
S&P
500
Index
Account
LargeCap
S&P
500
Managed
Volatility
Index
Account
MidCap
Account
Principal
Capital
Appreciation
Account
Principal
LifeTime
2010
Account
Principal
LifeTime
2020
Account
Principal
LifeTime
2030
Account
Principal
LifeTime
2040
Account
Principal
LifeTime
2050
Account
Principal
LifeTime
2060
Account
Principal
LifeTime
Strategic
Income
Account
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
SmallCap
Account
For
the
year
ended
December
31,
2019
For
each
of
the
two
years
in
the
period
ended
December
31,
2019
For
each
of
the
five
years
in
the
period
ended
December
31,
2019
Diversified
Balanced
Volatility
Control
Account
Diversified
Growth
Volatility
Control
Account
For
the
year
ended
December
31,
2019
For
each
of
the
two
years
in
the
period
ended
December
31,
2019
For
each
of
the
two
years
ended
December
31,
2019
and
the
period
from
March
30,
2017,
date
operations
commenced,
through
December
31,
2017
Report
of
Independent
Registered
Public
Accounting
Firm
247
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,
2019,
by
correspondence
with
the
custodian,
transfer
agent,
agent
banks,
and
brokers
or
by
other
appropriate
auditing
procedures
where
replies
from
agent
banks
and
brokers
were
not
received.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
We
have
served
as
the
auditor
of
one
or
more
Principal
investment
companies
since
1969.
Minneapolis,
Minnesota
February
19,
2020
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
(unaudited)
248
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,
2019
to
December
31,
2019),
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.
Beginning
Account
Value
July
1,
2019
Ending
Account
Value
December
31,
2019
Expenses
Paid
During
Period
July
1,
2019
to
December
31,
2019
(a)
Annualized
Expense
Ratio
Bond
Market
Index
Account
Class
1
Actual
$
1,000.00
$
1,023.21
$
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
1,025.05
2.40
0.47
Hypothetical
1,000.00
1,022.84
2.40
0.47
Diversified
Balanced
Account
Class
1
Actual
1,000.00
1,060.23
0.26
0.05
Hypothetical
1,000.00
1,024.95
0.26
0.05
Diversified
Balanced
Account
Class
2
Actual
1,000.00
1,059.14
1.56
0.30
Hypothetical
1,000.00
1,023.69
1.53
0.30
Diversified
Balanced
Managed
Volatility
Account
Class
2
Actual
1,000.00
1,056.45
1.61
0.31
Hypothetical
1,000.00
1,023.64
1.58
0.31
Diversified
Balanced
Volatility
Control
Account
Class
2
Actual
1,000.00
1,054.46
1.97
0.38
Hypothetical
1,000.00
1,023.29
1.94
0.38
Diversified
Growth
Account
Class
2
Actual
1,000.00
1,069.49
1.56
0.30
Hypothetical
1,000.00
1,023.69
1.53
0.30
Diversified
Growth
Managed
Volatility
Account
Class
2
Actual
1,000.00
1,066.76
1.61
0.31
Hypothetical
1,000.00
1,023.64
1.58
0.31
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
(unaudited)
249
Beginning
Account
Value
July
1,
2019
Ending
Account
Value
December
31,
2019
Expenses
Paid
During
Period
July
1,
2019
to
December
31,
2019
(a)
Annualized
Expense
Ratio
Diversified
Growth
Volatility
Control
Account
Class
2
Actual
$
1,000.00
$
1,063.91
$
1.98
0.38
%
Hypothetical
1,000.00
1,023.29
1.94
0.38
Diversified
Income
Account
Class
2
Actual
1,000.00
1,048.12
1.60
0.31
Hypothetical
1,000.00
1,023.64
1.58
0.31
Diversified
International
Account
Class
1
Actual
1,000.00
1,068.75
4.85
0.93
Hypothetical
1,000.00
1,020.52
4.74
0.93
Equity
Income
Account
Class
1
Actual
1,000.00
1,102.73
2.49
0.47
Hypothetical
1,000.00
1,022.84
2.40
0.47
Equity
Income
Account
Class
2
Actual
1,000.00
1,101.60
3.81
0.72
Hypothetical
1,000.00
1,021.58
3.67
0.72
Government
&
High
Quality
Bond
Account
Class
1
Actual
1,000.00
1,019.33
2.65
0.52
Hypothetical
1,000.00
1,022.58
2.65
0.52
International
Emerging
Markets
Account
Class
1
Actual
1,000.00
1,067.33
6.25
1.20
Hypothetical
1,000.00
1,019.16
6.11
1.20
LargeCap
Growth
Account
I
Class
1
Actual
1,000.00
1,103.22
3.66
0.69
Hypothetical
1,000.00
1,021.73
3.52
0.69
LargeCap
S&P
500
Index
Account
Class
1
Actual
1,000.00
1,107.62
1.33
0.25
Hypothetical
1,000.00
1,023.95
1.28
0.25
LargeCap
S&P
500
Index
Account
Class
2
Actual
1,000.00
1,106.50
2.65
0.50
Hypothetical
1,000.00
1,022.68
2.55
0.50
LargeCap
S&P
500
Managed
Volatility
Index
Account
Class
1
Actual
1,000.00
1,101.55
2.49
0.47
Hypothetical
1,000.00
1,022.84
2.40
0.47
MidCap
Account
Class
1
Actual
1,000.00
1,097.77
2.91
0.55
Hypothetical
1,000.00
1,022.43
2.80
0.55
MidCap
Account
Class
2
Actual
1,000.00
1,096.20
4.23
0.80
Hypothetical
1,000.00
1,021.17
4.08
0.80
Principal
Capital
Appreciation
Account
Class
1
Actual
1,000.00
1,109.84
3.46
0.65
Hypothetical
1,000.00
1,021.93
3.31
0.65
Principal
Capital
Appreciation
Account
Class
2
Actual
1,000.00
1,108.27
4.78
0.90
Hypothetical
1,000.00
1,020.67
4.58
0.90
Principal
LifeTime
2010
Account
Class
1
Actual
1,000.00
1,039.45
0.31
0.06
Hypothetical
1,000.00
1,024.90
0.31
0.06
Principal
LifeTime
2020
Account
Class
1
Actual
1,000.00
1,052.54
0.05
0.01
Hypothetical
1,000.00
1,025.16
0.05
0.01
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
(unaudited)
250
Beginning
Account
Value
July
1,
2019
Ending
Account
Value
December
31,
2019
Expenses
Paid
During
Period
July
1,
2019
to
December
31,
2019
(a)
Annualized
Expense
Ratio
Principal
LifeTime
2030
Account
Class
1
Actual
$
1,000.00
$
1,064.69
$
0.05
0.01
%
Hypothetical
1,000.00
1,025.16
0.05
0.01
Principal
LifeTime
2040
Account
Class
1
Actual
1,000.00
1,074.74
0.16
0.03
Hypothetical
1,000.00
1,025.05
0.15
0.03
Principal
LifeTime
2050
Account
Class
1
Actual
1,000.00
1,079.06
0.31
0.06
Hypothetical
1,000.00
1,024.90
0.31
0.06
Principal
LifeTime
2060
Account
Class
1
Actual
1,000.00
1,082.61
0.52
0.10
Hypothetical
1,000.00
1,024.70
0.51
0.10
Principal
LifeTime
Strategic
Income
Account
Class
1
Actual
1,000.00
1,034.81
0.36
0.07
Hypothetical
1,000.00
1,024.85
0.36
0.07
Real
Estate
Securities
Account
Class
1
Actual
1,000.00
1,083.83
4.62
0.88
Hypothetical
1,000.00
1,020.77
4.48
0.88
Real
Estate
Securities
Account
Class
2
Actual
1,000.00
1,082.29
5.93
1.13
Hypothetical
1,000.00
1,019.51
5.75
1.13
SAM
Balanced
Portfolio
Class
1
Actual
1,000.00
1,065.18
1.25
0.24
Hypothetical
1,000.00
1,024.00
1.22
0.24
SAM
Balanced
Portfolio
Class
2
Actual
1,000.00
1,064.17
2.55
0.49
Hypothetical
1,000.00
1,022.74
2.50
0.49
SAM
Conservative
Balanced
Portfolio
Class
1
Actual
1,000.00
1,052.19
1.24
0.24
Hypothetical
1,000.00
1,024.00
1.22
0.24
SAM
Conservative
Balanced
Portfolio
Class
2
Actual
1,000.00
1,050.71
2.53
0.49
Hypothetical
1,000.00
1,022.74
2.50
0.49
SAM
Conservative
Growth
Portfolio
Class
1
Actual
1,000.00
1,077.90
1.26
0.24
Hypothetical
1,000.00
1,024.00
1.22
0.24
SAM
Conservative
Growth
Portfolio
Class
2
Actual
1,000.00
1,076.51
2.56
0.49
Hypothetical
1,000.00
1,022.74
2.50
0.49
SAM
Flexible
Income
Portfolio
Class
1
Actual
1,000.00
1,043.61
1.24
0.24
Hypothetical
1,000.00
1,024.00
1.22
0.24
SAM
Flexible
Income
Portfolio
Class
2
Actual
1,000.00
1,041.85
2.52
0.49
Hypothetical
1,000.00
1,022.74
2.50
0.49
SAM
Strategic
Growth
Portfolio
Class
1
Actual
1,000.00
1,089.33
1.32
0.25
Hypothetical
1,000.00
1,023.95
1.28
0.25
SAM
Strategic
Growth
Portfolio
Class
2
Actual
1,000.00
1,087.58
2.63
0.50
Hypothetical
1,000.00
1,022.68
2.55
0.50
Short-Term
Income
Account
Class
1
Actual
1,000.00
1,014.78
2.64
0.52
Hypothetical
1,000.00
1,022.58
2.65
0.52
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
(unaudited)
251
Beginning
Account
Value
July
1,
2019
Ending
Account
Value
December
31,
2019
Expenses
Paid
During
Period
July
1,
2019
to
December
31,
2019
(a)
Annualized
Expense
Ratio
SmallCap
Account
Class
1
Actual
$
1,000.00
$
1,065.38
$
4.43
0.85
%
Hypothetical
1,000.00
1,020.92
4.33
0.85
SmallCap
Account
Class
2
Actual
1,000.00
1,064.20
5.72
1.10
Hypothetical
1,000.00
1,019.66
5.60
1.10
(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).
252
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.,
Principal
Exchange-Traded
Funds,
and
Principal
Diversified
Select
Real
Asset
Fund
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
Name,
Position
Held
with
the
Fund,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Director
During
Past
5
Years
Elizabeth
Ballantine
Director
since
2004
Member,
Nominating
and
Governance
Committee
1948
Principal,
EBA
Associates
127
Durango
Herald,
Inc.;
McClatchy
Newspapers,
Inc.
Leroy
T.
Barnes,
Jr.
Director
since
2012
Member,
Audit
Committee
Member,
Nominating
and
Governance
Committee
1951
Retired.
127
McClatchy
Newspapers,
Inc.;
Frontier
Communications,
Inc.;
formerly,
Herbalife
Ltd.
Craig
Damos
Director
since
2008
Member,
Audit
Committee
Member,
15(c)
Committee
Member,
Executive
Committee
1954
President,
C.P.
Damos
Consulting
LLC
127
None
Mark
A.
Grimmett
Lead
Independent
Director
since
2011
Director
since
2004
Member,
Nominating
and
Governance
Committee
Member,
15(c)
Committee
Member,
Executive
Committee
1960
Formerly,
Executive
Vice
President
and
CFO,
Merle
Norman
Cosmetics,
Inc.
127
None
Fritz
S.
Hirsch
Director
since
2005
Member,
Nominating
and
Governance
Committee
Member,
Operations
Committee
Member,
15(c)
Committee
1951
Formerly,
CEO,
MAM
USA
127
MAM
USA
Tao
Huang
Director
since
2012
Member,
Operations
Committee
Member,
15(c)
Committee
1962
Retired.
127
Armstrong
World
Industries,
Inc.
and
Equity
Lifestyle
Properties,
Inc.
Karen
(“Karrie”)
McMillan
Director
since
2014
Member,
Operations
Committee
1961
Managing
Director,
Patomak
Global
Partners,
LLC.
127
None
Elizabeth
A.
Nickels
Director
since
2015
Member,
Audit
Committee
1962
Retired.
127
SpartanNash;
formerly:
Charlotte
Russe;
Follet
Corporation;
PetSmart;
Spectrum
Health
Systems
Mary
M.
(“Meg”)
VanDeWeghe
Director
since
2018
Member,
Operations
Committee
1959
CEO
and
President,
Forte
Consulting,
Inc.
127
Denbury
Resources
Inc.
and
Helmerich
&
Payne;
Formerly:
Brown
Advisory;
B/E
Aerospace;
WP
Carey;
Nalco
(and
its
successor
Ecolab)
253
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.
Correspondence
intended
for
each
Director
who
is
other
than
an
Interested
Director
may
be
sent
to
655
9th
Street,
Des
Moines,
IA
50392.
Name,
Position
Held
with
the
Fund,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Director
During
Past
5
Years
Timothy
M.
Dunbar
Director
since
2019
1957
Director,
PGI
since
2018
President,
Principal
Global
Asset
Management,
PGI,
Principal
Life
Insurance
Company
(“PLIC”),
Principal
Financial
Services,
Inc.
(“PFSI”),
and
Principal
Financial
Group
(“PFG”)
since
2018
Chair/Executive
Vice
President,
RobustWealth,
Inc.
since
2018
Director,
Post
Advisory
Group,
LLC
(“Post”)
since
2018
Executive
Vice
President/Chief
Investment
Officer,
PLIC,
PFSI
and
PFG
(2014-2018)
127
None
Patrick
Halter
Director
since
2017
Member,
Executive
Committee
1959
Chief
Executive
Officer
and
President,
PGI
since
2018
Chief
Operating
Officer,
PGI
(2017-2018)
Chair,
PGI
since
2018
Director,
PGI
(2003-2018)
Director,
Finisterre
Capital
LLP
since
2018
Director,
Origin
Asset
Management
LLP
since
2018
Chair,
Post
since
2017
Chief
Executive
Officer,
Principal
Real
Estate
Investors,
LLC
(“PREI”)
since
2005
Chair,
PREI
since
2004
Chair,
Spectrum
Asset
Management,
Inc.
since
2017
Director,
CCIP,
LLC
since
2017
127
None
254
The
following
table
presents
officers
of
the
Funds.
Name,
Position
Held
with
the
Fund,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Randy
L.
Bergstrom
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1955
Counsel,
PGI
Counsel,
PLIC
Jennifer
A.
Block
Deputy
Chief
Compliance
Officer
Des
Moines,
IA
50392
1973
Vice
President
and
Counsel
(2017-2018)
Assistant
Counsel
(2010-2017)
Assistant
Secretary
(2015-2018)
Counsel,
PGI
(2017-2018)
Counsel,
PLIC
(2009-2018)
Counsel,
PMC
(2009-2013,
2014-2017)
Kamal
Bhatia
President,
Chief
Executive
Officer
1972
President,
PFG,
PFSI,
and
PLIC
since
2019
Senior
Vice
President,
OppenheimerFunds
(2011-
2019)
Principal
Executive
Officer,
OC
Private
Capital
(2017-2019)
Tracy
Bollin
Chief
Financial
Officer
Des
Moines,
IA
50392
1970
Managing
Director,
PGI
since
2016
Chief
Operating
Officer,
PMC
(2015-2017)
Chief
Financial
Officer,
PFA
(2010-2015)
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
Treasurer
Des
Moines,
IA
50392
1965
Vice
President/Treasurer,
PFA
since
2016
Vice
President/Treasurer,
PFD
since
2016
Vice
President/Treasurer,
PGI
since
2016
Vice
President/Treasurer,
PLIC
since
2016
Vice
President/Treasurer,
PMC
(2016-2017)
Vice
President/Treasurer,
PREI
since
2016
Vice
President/Treasurer,
PSI
since
2016
Vice
President/Treasurer,
PSS
since
2016
Laura
B.
Latham
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1986
Counsel,
PGI
since
2018
Prior
thereto,
Attorney
in
Private
Practice
Diane
K.
Nelson
AML
Officer
Des
Moines,
IA
50392
1965
Chief
Compliance
Officer/AML
Officer,
PSS
since
2015
Compliance
Advisor,
PMC
(2013-2015)
Sara
L.
Reece
Vice
President
and
Controller
Des
Moines,
IA
50392
1975
Director
-
Accounting,
PLIC
since
2015
Assistant
Financial
Controller,
PLIC
prior
to
2015
Teri
R.
Root
Chief
Compliance
Officer
Des
Moines,
IA
50392
1979
Interim
Chief
Compliance
Officer
(2018)
Deputy
Chief
Compliance
Officer
(2015-2018)
Deputy
Chief
Compliance
Officer,
PGI
(2017-2018)
Vice
President
and
Chief
Compliance
Officer,
PMC
(2015–2017)
Vice
President,
PSS
since
2015
Britney
L.
Schnathorst
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1981
Counsel,
PLIC
since
2013
Adam
U.
Shaikh
Assistant
Counsel
Des
Moines,
IA
50392
1972
Assistant
General
Counsel,
PGI
since
2018
Counsel,
PGI
(2017-2018)
Counsel,
PLIC
since
2006
Counsel,
PMC
(2007-2013,
2014-2017)
255
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
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
Name,
Position
Held
with
the
Fund,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
John
Sullivan
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1970
Counsel,
PGI
since
2019
Prior
thereto,
Attorney
in
Private
Practice
Dan
Westholm
Assistant
Treasurer
Des
Moines,
IA
50392
1966
Assistant
Vice
President/Treasurer,
PGI
since
2017
Assistant
Vice
President/Treasury,
PFA
since
2013
Assistant
Vice
President/Treasury,
PFD
since
2013
Assistant
Vice
President/Treasury,
PLIC
since
2014
Director
–
Treasury,
PLIC
(2007-2014)
Assistant
Vice
President/Treasury,
PMC
(2013-
2017)
Assistant
Vice
President/Treasury,
PSI
since
2013
Assistant
Vice
President/Treasury,
PSS
since
2013
Beth
Wilson
Vice
President
and
Secretary
Des
Moines,
IA
50392
1956
Director
and
Secretary
–
Funds,
PLIC
Clint
Woods
Counsel,
Vice
President,
and
Assistant
Secretary
Des
Moines,
IA
50392
1961
Of
Counsel
(2017-2018)
Vice
President
(2016-2017)
Counsel
(2015-2017)
Vice
President,
PLIC
since
2015
Associate
General
Counsel,
Governance
Officer,
and
Assistant
Corporate
Secretary,
PLIC
since
2013
Jared
Yepsen
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1981
Counsel,
PGI
since
2017
Counsel,
PLIC
since
2015
Senior
Attorney,
Transamerica
Life
Insurance
Company
(2013-2015)
256
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,
2019,
and
the
Statement
of
Additional
Information
dated
May
1,
2019.
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.
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
each
year
as
a
part
of
Form
N-PORT.
The
Fund’s
Form
N-PORT
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.
STATEMENT
REGARDING
LIQUIDITY
RISK
MANAGEMENT
PROGRAM
On
June
1,
2019,
a
Liquidity
Risk
Management
Program
(the
“Program”)
was
adopted
by
the
Fund.
The
Board
is
expected
to
review
the
operation
and
effectiveness
of
the
Program
in
June
2020.
257
BOARD
CONSIDERATION
OF
INVESTMENT
ADVISORY
CONTRACTS
During
the
period
covered
by
this
report,
the
Board
of
Directors
of
Principal
Variable
Contracts
Funds,
Inc.
(“PVC”)
approved
the
renewal
of
the
Management
Agreement
and
various
subadvisory
agreements
for
all
Funds
as
well
as
an
amended
and
restated
Sub-Advisory
Agreement
with
Brown
Advisory,
LLC
related
to
the
LargeCap
Growth
I
Account.
Annual
Review
and
Renewal
of
Management
Agreement
and
Subadvisory
Agreements
At
its
September
10,
2019
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-three
(33)
series
of
PVC
(each
series
is
referred
to
as
a
“Fund”);
and
(2)
the
Subadvisory
Agreements
between
the
Manager
and
each
of
Brown
Advisory,
LLC;
Principal
Real
Estate
Investors,
LLC
(“Principal-REI”);
Spectrum
Asset
Management
Inc.
(“Spectrum”)
and
T.
Rowe
Price
Associates,
Inc.
(collectively,
the
“Subadvisors”).
The
Management
Agreement
and
the
Subadvisory
Agreements
are
collectively
referred
to
as
the
“Advisory
Agreements.”
The
Board
considered
the
factors
and
reached
the
conclusions
described
below
relating
to
the
continuation
of
the
Advisory
Agreements.
In
evaluating
the
Advisory
Agreements,
the
Board,
reviewed
a
broad
range
of
information
including,
among
other
information,
information
regarding
performance,
advisory
fees,
total
expenses,
profitability
from
the
Advisory
Agreements
to
the
Manager
and
information
about
economies
of
scale.
The
Board
reviewed
the
materials
provided
and
concluded
that
it
was
provided
all
information
reasonably
necessary
to
evaluate
the
Advisory
Agreements.
Management
Agreement
With
respect
to
the
Management
Agreement
for
each
Fund,
the
Board
considered,
among
other
factors,
that
the
Manager,
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,
Quality
and
Extent
of
Services
The
Board
considered
the
nature,
quality
and
extent
of
the
services
provided
under
the
Management
Agreements,
including
accounting
and
administrative
services.
The
Board
considered
the
experience
and
skills
of
senior
management
leading
Fund
operations,
the
experience
and
skills
of
the
personnel
performing
the
functions
under
the
Management
Agreements
and
the
resources
made
available
to
such
personnel,
the
ability
of
the
Manager
to
attract
and
retain
high-quality
personnel
and
the
organizational
depth
and
stability
of
the
Manager.
The
Board
concluded
that
appropriate
resources
were
provided
under
the
Management
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,
2019
and
the
blended
investment
return
(50%/50%)
of
the
three-
and
five-year
periods
ended
March
31,
2019,
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,
2019,
respectively,
if
available.
The
Board
also
compared
each
Fund’s
investment
performance
over
the
one-,
three-
and
five-year
periods
ended
March
31,
2019,
as
available,
to
one
or
more
relevant
benchmark
indices.
The
Board
noted
that
258
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)
net
management
fee
rate
(after
any
fee
waivers)
at
average
fiscal-year
asset
levels,
(3)
actual
non-management
fees
at
average
fiscal-
year
asset
levels,
and
(4)
total
net
expense
ratio
(including,
as
applicable,
acquired
fund
fees
and
expenses
and
after
any
expense
caps
or
fee
waivers)
at
average
fiscal-year
asset
levels
for
Class
1
shares
of
the
Funds,
in
each
case
as
available,
to
investment
advisory
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
fee
rates,
breakpoints,
comparison
to
fee
rates
of
peer
group
funds
and
other
funds
and
non-fund
accounts
managed
by
the
Manager,
subadvisory
fee
rates
paid,
services
provided,
investment
performance,
total
net
expense
ratios,
profitability,
the
existence
and
sharing
of
economies
of
scale,
fall-out
benefits
and
expense
caps
and
fee
waivers.
The
Board
considered
that
certain
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
fee
rates.
In
reviewing
the
fees
of
other
accounts
managed
by
the
Manager,
the
Board
considered
information
provided
by
the
Manager
regarding
differences
between
the
services
provided
to
the
Funds
and
the
services
provided
to
such
other
accounts.
For
most
Funds,
net
management
fees
were
within
the
third
quartile
or
better
when
compared
to
their
Expense
Group.
For
some
Funds,
although
net
management
fees
were
higher
than
the
third
quartile,
total
net
expense
ratios
were
within
the
third
quartile
or
better.
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,
which
the
Board
concluded
were
reasonable.
The
Board
reviewed
the
total
net
expense
ratios
of
the
Funds,
including
acquired
fund
fees
and
expenses.
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.
With
regard
to
the
Real
Estate
Securities
Account,
the
Board
noted
that
the
contractual
management
fee
rate,
the
current
net
management
fee
rate
and
the
total
net
expense
ratio
on
the
basis
of
Class
1
shares
were
higher
than
third
quartile
(99th,
99th
and
78th
percentiles,
respectively)
in
the
Expense
Group.
The
Board
accepted
management’s
proposal
to
amend
the
Management
Agreement
for
the
Fund
to
reduce
the
management
fee
rate
payable
at
each
asset
level
and
considered
the
pro
forma
effect
of
the
fee
reduction
on
the
ranking
of
the
Fund’s
net
management
fee
rate
and
total
net
expense
ratio
on
the
basis
of
Class
1
shares
in
the
Expense
Group,
noting
that
the
Fund’s
net
management
fee
rate
and
total
net
expense
ratio
would
move
into
the
67th
percentile
and
the
56th
percentile,
respectively.
Considering
all
relevant
factors,
including
the
Fund’s
performance
in
the
first
quartile
of
its
Performance
Universe
for
the
three-year
and
blended
three-
and
five
year
periods
ended
March
31,
2019
(15th
and
10th
percentiles,
respectively),
the
Board
concluded
that
the
Management
Agreement
should
be
renewed.
With
regard
to
the
LargeCap
S&P
500
Managed
Volatility
Index
Account,
the
Board
noted
that
the
contractual
management
fee
rate,
the
net
management
fee
rate
and
the
total
net
expense
ratio
on
the
basis
of
Class
1
shares
were
higher
than
third
quartile
(each
was
at
the
99th
percentile)
in
the
Expense
Group.
Considering
all
relevant
factors,
including
that
the
other
funds
in
the
Expense
Group
did
not
include
the
additional
feature
of
a
volatility
mitigation
strategy,
that
the
Fund’s
performance
was
in
the
second
quartile
of
its
Performance
Universe
for
the
three-year
and
blended
three-
and
five-year
periods
ended
March
31,
2019
(47th
and
41st
percentiles,
respectively)
and
that
the
Fund’s
performance
was
within
a
reasonable
range
of
its
underlying
index,
the
Board
concluded
that
the
Management
Agreement
should
be
renewed.
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.
259
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.
Profitability
The
Board
reviewed
detailed
information
regarding
revenues
the
Manager,
received
under
the
Management
Agreements
and
the
estimated
direct
and
indirect
costs
incurred
in
providing
to
each
Fund
the
services
described
in
the
applicable
Management
Agreements
for
the
year
ended
December
31,
2018.
The
Board
also
considered
the
returns
on
revenue
generated
in
connection
with
the
payment
of
subadvisory
fees
to
affiliated
Subadvisors
(Principal-REI
and
Spectrum)
and
the
aggregated
return
on
revenue
to
the
Manager
and
its
affiliates
for
the
year
ended
December
31,
2018.
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
cost
saving
passed
along
to
the
Funds
as
a
result
of
certain
expense
caps
and
fee
waivers.
The
Board
considered
whether
the
effective
management
fee
rate
for
each
Fund
under
the
applicable
Management
Agreement
is
reasonable
in
relation
to
the
asset
size
of
such
Fund.
The
Board
also
noted
management’s
explanation
of
efficiencies
in
the
Manager’s
cost
structure.
The
Board
concluded
that
the
fee
schedule
for
each
Fund
reflects
an
appropriate
level
of
sharing
of
any
economies
of
scale.
The
Board
noted
that
the
Principal
LifeTime
Accounts
do
not
directly
pay
management
fees,
although
shareholders
bear
a
portion
of
the
cost
of
the
management
fees
at
the
underlying
fund
level
as
reflected
in
the
acquired
fund
fees
and
expenses.
The
Board
also
noted
that
the
management
fees
for
the
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
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
fee
rates,
noting
that
the
Manager
compensates
each
Subadvisor
from
its
own
management
fee,
so
that
shareholders
pay
only
the
management
fee.
For
each
subadvised
Fund,
the
Board
received
certain
information
260
from
Broadridge
comparing
each
such
Fund’s
subadvisory
fee
rate
at
current
asset
levels
and
at
theoretical
asset
levels
to
subadvisory
fee
rates
of
subadvised
funds
in
the
Expense
Group
and,
if
available,
the
Expense
Universe.
With
regard
to
the
LargeCap
Growth
Account
I,
the
Board
accepted
management’s
proposal
to
amend
the
Fund’s
Subadvisory
Agreement
with
Brown
Advisory,
LLC
to
add
a
new
breakpoint
to
the
subadvisory
fee
schedule
and
considered
both
the
amended
subadvisory
fee
schedule
and
the
pro
forma
ranking
of
the
reduced
subadvisory
fee
rate
in
concluding
that
the
Subadvisory
Agreement,
as
amended,
should
be
renewed.
The
Board
considered
whether
there
are
economies
of
scale
with
respect
to
the
subadvisory
services
provided
to
each
subadvised
Fund
and,
if
so,
whether
the
subadvisory
fees
reflect
such
economies
of
scale
through
breakpoints
in
fees
or
whether
the
subadvisory
fee
schedule
is
otherwise
appropriate
at
current
asset
levels.
In
addition,
in
evaluating
the
subadvisory
fees
and
the
factor
of
profitability,
with
respect
to
unaffiliated
Subadvisors,
the
Board
considered
that
the
subadvisory
fee
rate
was
negotiated
at
arm’s
length
between
the
Manager
and
the
Subadvisor.
The
Board
considered
the
profitability
of
the
affiliated
Subadvisors
in
conjunction
with
their
review
of
the
profitability
of
the
Manager.
On
the
basis
of
the
information
provided,
the
Board
concluded
that
the
subadvisory
fees
were
reasonable.
Other
Benefits
to
Subadvisors
The
Board
also
considered
the
character
and
amount
of
other
incidental
benefits
received
by
each
Subadvisor
when
evaluating
the
subadvisory
fees.
The
Board
considered
as
a
part
of
this
analysis
each
Subadvisor’s
brokerage
practices,
soft
dollar
practices
and
use
of
research
payment
accounts.
The
Board
concluded
that,
on
the
basis
of
the
information
provided,
the
subadvisory
fees
were
reasonable.
Overall
Conclusions
Based
upon
all
of
the
information
considered
and
the
conclusions
reached,
the
Board
determined
that
the
terms
of
each
Advisory
Agreement
continue
to
be
fair
and
reasonable
and
that
the
continuation
of
each
Advisory
Agreement,
with
the
actions
proposed
by
the
Manager,
is
in
the
best
interests
of
each
Fund.
Federal
Income
Tax
Information
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
(unaudited)
261
Long-Term
Capital
Gain
Dividends.
Certain
Accounts
distributed
long-term
capital
gain
dividends
during
the
fiscal
year
ended
December
31,
2019
.
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
Unrecaptured
Section
1250
gains,
in
addition
to
long-term
capital
gains,
in
2019
.
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,
2019
,
that
qualifies
for
the
DRD
are
as
follows:
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,
2019
,
are
as
follows:
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.
DRD
DRD
Bond
Market
Index
Account
0.00%
Principal
Capital
Appreciation
Account
100.00%
Core
Plus
Bond
Account
1.74
Principal
LifeTime
2010
Account
12.18
Diversified
Balanced
Account
39.67
Principal
LifeTime
2020
Account
18.50
Diversified
Balanced
Managed
Volatility
Account
34.29
Principal
LifeTime
2030
Account
25.74
Diversified
Balanced
Volatility
Control
Account
29.62
Principal
LifeTime
2040
Account
31.30
Diversified
Growth
Account
51.61
Principal
LifeTime
2050
Account
36.09
Diversified
Growth
Managed
Volatility
Account
43.00
Principal
LifeTime
2060
Account
30.29
Diversified
Growth
Volatility
Control
Account
46.89
Principal
LifeTime
Strategic
Income
Account
8.40
Diversified
Income
Account
27.79
Real
Estate
Securities
Account
0.84
Diversified
International
Account
0.00
SAM
Balanced
Portfolio
23.43
Equity
Income
Account
71.33
SAM
Conservative
Balanced
Portfolio
15.35
Government
&
High
Quality
Bond
Account
0.00
SAM
Conservative
Growth
Portfolio
39.42
International
Emerging
Markets
Account
0.00
SAM
Flexible
Income
Portfolio
11.99
LargeCap
Growth
Account
I
100.00
SAM
Strategic
Growth
Portfolio
43.18
LargeCap
S&P
500
Index
Account
100.00
Short-Term
Income
Account
0.00
LargeCap
S&P
500
Managed
Volatility
Index
Account
100.00
SmallCap
Account
27.01
MidCap
Account
81.24
Foreign
Taxes
Per
Share
Foreign
Source
Income
Foreign
Taxes
Per
Share
Foreign
Source
Income
Diversified
Balanced
Account
$
0.0035
9.70%
Principal
LifeTime
2020
Account
$
0.0062
14.60%
Diversified
Balanced
Managed
Volatility
Account
0.0026
9.98
Principal
LifeTime
2030
Account
0.0076
20.59
Diversified
Balanced
Volatility
Control
Account
0.0013
10.11
Principal
LifeTime
2040
Account
0.0110
26.73
Diversified
Growth
Account
0.0053
13.77
Principal
LifeTime
2050
Account
0.0126
30.51
Diversified
Growth
Managed
Volatility
Account
0.0037
13.80
Principal
LifeTime
2060
Account
0.0096
25.93
Diversified
Growth
Volatility
Control
Account
0.0021
17.56
Principal
LifeTime
Strategic
Income
Account
0.0019
5.19
Diversified
Income
Account
0.0015
5.71
SAM
Balanced
Portfolio
0.0065
9.79
Diversified
International
Account
0.0502
99.41
SAM
Conservative
Balanced
Portfolio
0.0032
5.64
International
Emerging
Markets
Account
0.0591
98.91
SAM
Conservative
Growth
Portfolio
0.0116
18.12
Principal
LifeTime
2010
Account
0.0038
8.06
SAM
Strategic
Growth
Portfolio
0.0158
25.82
Federal
Income
Tax
Information
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
(unaudited)
262
The
following
information
is
being
provided
to
you,
prompted
by
the
acquisition
of
the
following
Accounts
effective
June
7,
2019:
Long-Term
Capital
Gain
Distribution.
The
Accounts
distributed
long-term
capital
gain
dividends
during
the
tax
year
ended
June
7,
2019.
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,
the
Accounts
may
also
utilize,
and
hereby
designate,
earnings
and
profits
distributed
to
shareholders
on
redemptions
of
shares
as
part
of
the
Dividends
Paid
Deduction.
Dividends
Received
Deduction
(“DRD”).
For
corporate
shareholders,
the
percentage
of
ordinary
income
distributions
(dividend
income
and
short-term
gains,
if
any)
for
the
tax
year
that
qualifies
for
DRD
are
as
follows:
The
latest
Federal
Income
Tax
Information
is
available
on
Principal's
Tax
Center
website.
Website:
https://www.principalfunds.com/individual-investor/customer-support/tax-center
Please
consult
your
tax
advisor
if
you
have
any
questions.
Acquired
Account
Acquiring
Account
Income
Account
Core
Plus
Bond
Account
LargeCap
Growth
Account
LargeCap
Growth
Account
I
Multi-Asset
Income
Account
SAM
Flexible
Income
Portfolio
Per
Share
Long-Term
Capital
Gain
Distributions
(EX-DATE:
6/6/2019)
Income
Account
$
0.2140
LargeCap
Growth
Account
8.7869
Multi-Asset
Income
Account
0.0544
DRD
Income
Account
5.72%
LargeCap
Growth
Account
100.00
Multi-Asset
Income
Account
14.85
principalfunds.com
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Financial
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2019
Principal
Financial
Services,
Inc.
|
MM1290-25
|
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|
1033321
Principal
Variable
Contracts
Funds,
Inc.
Annual
Report
December
31,
2019
Beginning
on
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
you
may
not
be
receiving
paper
copies
of
the
Fund’s
shareholder
reports
from
the
insurance
company
that
offers
your
contract
unless
you
specifically
request
paper
copies
from
the
insurance
company
or
from
your
financial
intermediary.
Instead,
the
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reports
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available
on
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you
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link
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Table
of
Contents
Not
FDIC
or
NCUA
insured
May
lose
value
•
Not
a
deposit
•
No
bank
or
credit
union
guarantee
Not
insured
by
any
Federal
government
agency
Economic
&
Financial
Market
Review
1
Important
Account
Information
2
Core
Plus
Bond
Account
(unaudited)
3
Diversified
International
Account
(unaudited)
4
Equity
Income
Account
(unaudited)
5
Government
&
High
Quality
Bond
Account
(unaudited)
6
LargeCap
Growth
Account
I
(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
56
Financial
Highlights
(Includes
performance
information)
112
Report
of
Independent
Registered
Public
Accounting
Firm
128
Shareholder
Expense
Example
129
Supplemental
Information
131
1
Economic
&
Financial
Market
Review
Economic
momentum
has
clearly
improved
in
the
U.S.
and
China.
A
modest
upturn
has
started
in
the
Eurozone,
and
Japan’s
economy
appears
to
be
nearing
an
economic
trough.
China’s
leading
economic
indicator
created
by
the
Organization
of
Economic
Cooperation
and
Development
troughed
in
February,
and
our
own
activity
guide
has
been
picking
up
since
spring.
Broad
gauges
like
retail
sales,
industrial
production,
and
fixed
asset
investment
all
improved
significantly
in
November.
The
partial
détente
in
the
U.S.-China
trade
conflict
bodes
well
for
better
growth
next
year.
U.S.
activity
appears
to
be
bouncing.
Manufacturing
picked
up
in
November.
Small
business
optimism
has
perked
up
and
remains
near
all-time
highs.
Job
growth
is
extraordinarily
strong
for
this
late
in
an
expansion,
which
boosted
consumer
confidence.
Household
balance
sheets
are
in
excellent
shape
and
the
savings
rate
stays
high
at
8%.
The
Eurozone
economy
has
lagged
the
U.S.
and
China
recently,
avoiding
recession
as
the
weak
link
this
year.
Germany
kept
expanding
in
the
third
quarter.
For
the
Eurozone
as
a
whole,
the
trough
was
likely
the
fourth
quarter
of
2019.
Service
sector
surveys
have
picked
up
from
the
bottom,
but
canvasses
of
manufacturing
companies
may
not
be
there
yet.
Those
latter
surveys
showed
activity
ticked
down
in
December
after
weak
October
activity.
But
overall
business
sentiment
shows
signs
of
recovery.
Robust
household
activity
has
kept
a
recession
at
bay,
buoyed
by
a
vigorous
labor
market.
The
Eurozone
appears
set
for
an
upswing.
Wage
growth
has
accelerated,
and
job
gains
stay
hardy
as
the
labor
market
tightens.
The
hike
in
the
value-added
tax
(VAT)
in
Japan
on
October
1
had
the
same
negative
impact
as
prior
ones:
heightened
sales
before
the
hike
and
a
collapse
afterwards.
It
may
cause
growth
to
contract
in
the
fourth
quarter
and
has
surely
delayed
a
rebound
in
Japan.
Manufacturing
remains
weak
from
global
headwinds.
Although
the
job
market
is
incredibly
tight
and
job
openings
plentiful,
the
unemployment
rate
remains
remarkably
tiny
at
2.2%.
Nevertheless,
Japanese
industry
is
in
recession
as
machine
tool
orders
and
industrial
production
keep
falling.
We
do
look
for
growth
to
pick
up
modestly
in
2020
as
the
tax
impact
fades.
The
government
has
proposed
a
large
stimulus
package
to
offset
the
VAT
and
the
2020
Olympics
will
likely
provide
a
temporary
lift.
Industrial
output
in
Taiwan
and
South
Korea
has
trended
somewhat
higher,
a
harbinger
of
a
broader
pickup
in
Southeast
Asia
from
which
Japan
will
likely
benefit.
We
believe
the
foundation
is
being
set
for
a
mild
but
sustained
pickup
in
world
growth
for
2020.
Central
banks
are
very
accommodative.
Interest
rates
stay
extremely
low.
The
lagged
impact
of
rate
cuts
should
stay
beneficial
next
year.
Stimulus
in
China,
while
timid,
appears
to
be
supporting
growth.
Trade
uncertainty
has
lessened.
The
U.S.
dollar
has
weakened.
Credit
stress
is
negligible.
Inflation
stays
moderate.
Commodity
prices
are
rising,
sniffing
the
aroma
of
better
growth.
The
wave
of
revival
seems
to
have
begun.
*Commentary
taken
from
December
2019
Economic
Insights
by
Robert
F.
Baur,
Ph.D.,
executive
director,
chief
global
economist.
All
data
from
Bloomberg,
unless
otherwise
stated.
2
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
would
be
lower.
**
Performance
shown
for
the
benchmark
assumes
reinvestment
of
all
dividends
and
distributions.
Indices
are
unmanaged,
and
individuals
cannot
invest
directly
in
an
index.
3
Core
Plus
Bond
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
An
out-of-index
allocation
to
below
investment-grade
corporate
bonds
contributed.
Overweight
allocation
to
investment-grade
corporate
bonds
contributed.
Security
selection
within
investment-grade
corporate
bonds
contributed.
Curve
positioning
detracted.
Duration
positioning
detracted.
Underweight
allocation
to
government
related
debt
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
9.81%
3.28%
4.66%
12/18/87
4
Diversified
International
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
Diversified
International
Account
seeks
long-term
growth
of
capital.
The
Account
invests
primarily
in
foreign
equity
securities.
It
has
no
limitation
on
the
percentage
of
assets
that
are
invested
in
any
one
country
or
denominated
in
any
one
currency,
but
the
Account
typically
invests
in
foreign
securities
of
at
least
20
countries.
The
Account
invests
in
equity
securities
regardless
of
market
capitalization
size
(small,
medium
or
large)
and
style
(growth
or
value).
Stock
selection
in
the
financials
sector
contributed,
led
by
overweight
to
Brookfield
Asset
Management,
a
global
asset
manager
focused
on
property,
renewable
power,
infrastructure,
and
private
equity
assets.
Stock
selection
in
the
United
Kingdom
also
contributed,
led
by
overweight
to
3I
Group,
a
global
leader
in
private
equity
with
a
focus
on
growth
capital,
buyouts,
and
infrastructure
investments
across
a
diversified
mix
of
sectors/industries.
Stock
selection
in
the
health
care
sector
contributed
positively
to
outperformance,
led
by
an
overweight
position
in
HOYA,
a
multinational
Japanese
company
that
produces
eyeglass
lenses,
contact
lenses,
intraocular
lenses,
and
endoscopes
for
health
care
markets,
with
additional
exposure
in
information
technology.
Stock
selection
in
Sweden
detracted,
led
by
an
overweight
position
in
Swedbank,
one
of
the
big
four
Swedish
banks.
Stock
selection
in
Brazil
detracted,
led
by
an
overweight
position
in
Vale,
the
world's
largest
seaborne
market
iron
ore
mining
company.
Stock
selection
in
the
Netherlands
detracted,
led
by
ASML
Holding,
the
market
leader
in
lithography
tools.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
22.69%
5.48%
5.95%
5/2/94
5
Equity
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
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.
Apple
Inc.
outperformed
as
the
company
continues
to
top
expectations
and
diversify
their
revenue
streams
with
service
revenues
seeing
double-digit
growth.
KKR
&
Co.
Inc.
outperformed
over
the
last
twelve
months
on
strong
fiscal
operating
results
and
AUM
growth.
Not
owning
Berkshire
Hathaway
Inc.
Class
B
contributed
to
relative
results.
Cimarex
Energy
Company
underperformed
as
the
company
missed
earnings
due
to
lower
natural
gas
liquid
and
gas
prices. Investors
remained
concerned
about
low
gas
prices,
negative
spot
prices
and
that
takeaway
capacity
from
the
Permian
Basin
will
not
be
sufficient.
Kroger
Co.
detracted
from
excess
returns
due
to
results
in
the
grocery
store's
operating
profits. Royal
Dutch
Shell
Plc
underperformed
as
the
company
missed
earnings
estimates
in
3Q
and
as
the
sentiment
for
energy
companies
worsened
during
the
year.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
29.09%
10.54%
12.62%
4/28/98
Class
2
Shares
28.78%
10.27%
12.33%
5/1/01
6
Government
&
High
Quality
Bond
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Security
selection
was
a
contributor
for
the
year.
Allocations
to
call
protected
(i.e.
loan
balance)
pools
contributed
by
insulating
the
portfolio
from
elevated
prepayment
activity.
Out-of-index
allocation
to
commercial
mortgage
backed
securities
(CMBS),
both
agency
and
non-
agency,
contributed
to
overall
performance.
Underweight
to
30-year
Ginnie
Mae
(GNMA)
mortgages,
which
underperformed
the
index,
also
contributed.
Out-of-index
sector
allocations
were
the
largest
detractors.
An
out-of-index
allocation
to
agency
collateralized
mortgage
obligation
(CMOs)
detracted.
Further,
an
underweight
to
30-year
conventional
(Fannie
Mae/Freddie
Mac)
mortgages
detracted.
Out-of-index
allocation
to
asset
backed
securities
(ABS)
also
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
6.45%
2.35%
3.16%
5/6/93
7
LargeCap
Growth
Account
I
Investment
Advisor:
Principal
Global
Investors,
LLC
Sub-Advisors:
Brown
Advisory,
LLC,
and
T.
Rowe
Price
Associates,
Inc.
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
Under
normal
circumstances,
LargeCap
Growth
Account
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.
Brown
outperformed
the
index
due
largely
to
positive
stock
selection
in
the
health
care,
industrials,
and
consumer
staples
sectors.
T.
Rowe
underperformed
the
index
due
to
negative
stock
selection
in
the
information
technology
sector
along
with
an
overweight
to
health
care.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
34.92%
15.32%
15.39%
6/1/94
8
MidCap
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
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
Fair
Isaac
Corp.
contributed
to
results,
reporting
strong
performance
and
increasing
its
full-year
guidance.
Lululemon
Athletica
Inc.
contributed
due
to
strong
revenue
and
profit
growth,
particularly
in
its
online
sales.
Allocation
to
Chipotle
Mexican
Grill
contributed
as
the
company
beat
already
high
expectations
and
raised
guidance
for
2019
due
to
increased
transactions
from
new
customers,
higher
average
checks,
higher
operating
margins,
and
growing
digital
sales. Allocation
to
Cimarex
Energy
Co.
detracted
as
the
company
missed
earnings
due
to
lower
natural
gas
liquid
and
gas
prices
and
investor
concern
about
low
gas
prices,
negative
spot
prices,
and
that
takeaway
capacity
from
the
Permian
Basin
will
not
be
sufficient.
Allocation
to
Tanger
Factory
Outlet
Centers
lagged
due
to
concerns
about
slowing
retail
traffic
and
potential
retailer
bankruptcies
impacting
occupancy
rates. Markel
Corporation
detracted
due
to
higher
than
forecast
catastrophe
losses
in
addition
to
charges
associated
with
the
company’s
CatCo.
unit.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
43.10%
13.49%
16.42%
12/18/87
Class
2
Shares
42.72%
13.20%
16.13%
9/9/09
9
Principal
Capital
Appreciation
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
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.
Fair
Isaac
Corp.
contributed
to
results,
reporting
strong
performance
and
increasing
its
full
year
guidance.
Lam
Research
Corporation,
the
second-best
performing
stock
in
2019
in
the
S&P
500,
benefited
from
an
improving
outlook
for
semiconductors
following
the
recent
correction.
Not
owning
Berkshire
Hathaway
Inc.
Class
B
contributed
to
relative
results.
Royal
Dutch
Shell
Plc
underperformed
as
the
company
missed
earnings
estimates
in
3Q
and
as
the
sentiment
for
energy
companies
worsened
during
the
year.
Biogen
Inc.
detracted
as
investors
reacted
negatively
when
both
phase
3
trials
on
their
Alzheimer's
drug
were
discontinued
in
March.
Church
&
Dwight
Co.
underperformed
as
investors
remained
concerned
about
volume
growth.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
32.49%
11.49%
12.95%
4/28/98
Class
2
Shares
32.10%
11.21%
12.67%
11/6/01
10
Real
Estate
Securities
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Sub-Advisor:
Principal
Real
Estate
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
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.
An
overweight
position
to
Invitation
Homes
contributed
to
relative
performance
as
the
company
benefitted
from
positive
quarterly
results
through
the
year
and
progress
towards
the
removal
of
the
Blackstone
equity
overhang.
An
overweight
position
to
Prologis
contributed
to
relative
performance
as
the
company
benefitted
from
strong
operating
results,
outsized
returns
in
their
development
portfolio,
and
several
large
portfolio
trades
that
were
viewed
as
positive
pricing
comps
for
Prologis’
portfolio.
An
overweight
position
to
Equinix
contributed
to
relative
performance,
as
the
company’s
benefitted
from
positive
investor
sentiment
surrounding
the
data
center
sector.
An
overweight
position
to
Regency
Centers
(REG)
detracted
from
relative
performance
as
the
lower-quality
peers
posted
better
organic
growth
during
the
year,
which
caused
rotation
out
of
REG
into
other
names.
Part
of
the
weakness
was
driven
by
unique
tenant
issues
during
2019,
impacted
growth
outlook
and
drove
underperformance
relative
to
peers.
An
overweight
position
to
Taubman
Centers
detracted
from
relative
performance,
driven
by
an
elevated
store
closing
environment
and
fear
that
trade
war
escalations
could
put
further
pressure
on
retailers
via
new
tariffs.
Not
holding
Mid-America
Apartment
Communities,
Inc
detracted
from
relative
performance
as
easy
comps
and
low-bar
initial
guidance
helped
the
company
to
deliver
beat
and
raise
operation
results
through
the
year.
Meanwhile,
the
below
expectation
results
from
the
coastal
peers
towards
the
end
of
year
also
helped
the
company’s
relative
performance.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
31.26%
8.65%
12.88%
5/1/98
Class
2
Shares
30.94%
8.38%
12.59%
1/8/07
11
SAM
Balanced
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Strategic
allocation
to
high
yield
bonds,
which
outperformed
core
fixed
income
in
the
risk-on
environment,
was
the
largest
contributor.
Security
selection
in
international
developed
market
equities
aided
performance.
Strategic
underweight
to
Government
bonds,
which
underperformed
core
fixed
income,
contributed.
Security
selection
in
investment-grade
corporate
bonds
was
the
largest
detractor.
Strategic
allocation
to
international
emerging
market
equities,
which
underperformed
their
U.S.
and
developed
market
counterparts,
hindered
performance.
Strategic
overweight
to
multi-alternatives,
which
posted
a
positive
return
but
lagged
other
alternative
and
specialty
asset
classes
and
the
broad
equity
market,
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
20.01%
6.82%
8.51%
6/3/97
Class
2
Shares
19.74%
6.57%
8.24%
11/6/01
12
SAM
Conservative
Balanced
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Strategic
allocation
to
high
yield
bonds,
which
outperformed
core
fixed
income
in
the
risk-on
environment,
was
the
largest
contributor.
Strategic
underweight
to
Government
bonds,
which
underperformed
core
fixed
income,
aided
performance.
Strategic
overweight
to
preferred
capital,
which
was
the
top
performing
fixed
income
asset
classes,
contributed.
Security
selection
in
investment-grade
corporate
bonds
was
the
largest
detractor.
Strategic
allocation
to
international
emerging
market
equities,
which
underperformed
their
U.S.
and
developed
market
counterparts,
hindered
performance.
Strategic
overweight
to
multi-alternatives,
which
posted
a
positive
return
but
lagged
other
alternative
and
specialty
asset
classes
and
the
broad
equity
market,
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
15.88%
5.64%
7.08%
4/23/98
Class
2
Shares
15.66%
5.39%
6.83%
11/6/01
13
SAM
Conservative
Growth
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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
mid-cap
equities
was
the
largest
contributor.
Security
selection
in
international
developed
market
equities
aided
performance.
Slight
tactical
overweight
to
equities,
which
outperformed
fixed
income
and
alternatives
and
specialty
in
the
risk-on
environment,
contributed.
Strategic
allocation
to
international
emerging
market
equities,
which
underperformed
their
U.S.
and
developed
market
counterparts,
was
the
largest
detractor.
Strategic
overweight
to
multi-alternatives,
which
posted
a
positive
return
but
lagged
other
alternative
and
specialty
asset
classes
and
the
broad
equity
market,
hindered
performance.
Security
selection
in
large-cap
value
equities
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
24.06%
7.99%
9.78%
6/3/97
Class
2
Shares
23.68%
7.72%
9.51%
11/6/01
14
SAM
Flexible
Income
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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.
Strategic
allocation
to
high
yield
bonds,
which
outperformed
core
fixed
income
in
the
risk-on
environment,
was
the
largest
contributor.
Strategic
underweight
to
Government
bonds,
which
underperformed
core
fixed
income,
aided
performance.
Strategic
overweight
to
preferred
capital,
which
was
the
top
performing
fixed
income
asset
classes,
contributed.
Security
selection
in
investment-grade
corporate
bonds
was
the
largest
detractor.
Security
selection
in
TIPS
hindered
performance.
Strategic
and
tactical
overweight
to
TIPS,
which
posted
positive
returns
but
underperformed
core
fixed
income,
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
13.25%
4.92%
6.27%
9/9/97
Class
2
Shares
12.97%
4.66%
6.00%
11/6/01
15
SAM
Strategic
Growth
Portfolio
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
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
mid-cap
equities
was
the
largest
contributor.
Security
selection
in
international
developed
market
equities
aided
performance.
Security
selection
in
international
emerging
market
equities
contributed.
Strategic
allocation
to
International
emerging
market
equities,
which
underperformed
their
U.S.
and
developed
market
counterparts,
was
the
largest
detractor.
Security
selection
in
large-cap
value
equities
hindered
performance.
Strategic
underweight
to
large-cap
growth
equities,
which
outperformed
their
value
counterparts,
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
27.44%
8.25%
10.51%
6/3/97
Class
2
Shares
27.13%
7.99%
10.23%
11/6/01
16
Short-Term
Income
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
Short-Term
Income
Account
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.
Issuer
selection
in
banking
contributed.
Underweight
to
supranational
and
government
guarantee
contributed.
Issuer
selection
in
consumer
non-cyclical
and
energy
contributed.
Issuer
selection
in
owned
no
guarantee
detracted.
Out-of-index
allocation
to
agency
commercial
mortgage-backed
securities,
asset-backed
securities
(ABS),
auto
backed
ABS,
and
treasurys
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Class
1
Shares
4.70%
2.18%
2.43%
1/12/94
17
SmallCap
Account
Investment
Advisor:
Principal
Global
Investors,
LLC
Average
Annual
Total
Returns*
as
of
December
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
SmallCap
Account
seeks
long-term
growth
of
capital.
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
this
Account,
companies
with
small
market
capitalizations
are
those
with
market
capitalizations
within
the
range
of
companies
comprising
the
Russell
2000®
Index.
Carvana,
Nevro,
Entegris,
CACI
International,
and
Eldorado
Resorts
contributed.
PlayAGS,
Nesco
Holdings,
Caleres,
McDermott
International
and
Mammoth
Energy
Services
detracted.
Value
of
a
$10,000
Investment*
December
31,
2009
-
December
31,
2019
1-Year
5-Year
10-Year
Inception
Date
Extended
Performance
Inception
Date
Class
1
Shares
27.40%
8.49%
12.58%
5/1/98
–
Class
2
Shares
27.12%
8.22%
12.31%
2/17/15
5/1/98
***Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
1
share
class,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
18
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Core
Plus
Bond
Account
Diversified
International
Account
Equity
Income
Account
Investment
in
securities--at
cost
..........................................................
$
251,067
$
213,306
$
434,328
Investment
in
affiliated
securities--at
cost
................................................
$
11,648
$
2,370
$
14,848
Assets
Investment
in
securities--at
value
..........................................................
$
257,154
(a)
$
263,791
$
757,255
(a)
Investment
in
affiliated
securities--at
value
.................................................
11,648
2,370
14,848
Cash
.........................................................................................
7
–
–
Deposits
with
counterparty
..................................................................
9
–
–
Receivables:
Dividends
and
interest
.................................................................
1,733
792
2,084
Fund
shares
sold
.......................................................................
1,459
65
311
Investment
securities
sold
.............................................................
59
409
229
Variation
margin
on
futures
...........................................................
1
–
–
Total
Assets
272,070
267,427
774,727
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
98
189
302
Accrued
distribution
fees
....................................................................
–
–
7
Accrued
directors'
expenses
.................................................................
–
1
4
Accrued
professional
fees
...................................................................
–
23
–
Accrued
other
expenses
.....................................................................
7
33
25
Cash
overdraft
...............................................................................
–
6
–
Payables:
Deferred
foreign
tax
...................................................................
–
10
–
Fund
shares
redeemed
.................................................................
153
314
1,195
Investment
securities
purchased
......................................................
17,801
83
–
Variation
margin
on
futures
...........................................................
14
–
–
Collateral
obligation
on
securities
loaned,
at
value
.........................................
1,123
–
9
Total
Liabilities
19,196
659
1,542
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
252,874
$
266,768
$
773,185
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
241,689
$
212,686
$
411,068
Total
distributable
earnings
(accumulated
loss)
.............................................
11,185
54,082
362,117
Total
Net
Assets
$
252,874
$
266,768
$
773,185
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
400,000
300,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
252,874
$
266,768
$
741,311
Shares
issued
and
outstanding
........................................................
21,994
16,984
26,295
Net
Asset
Value
per
share
.............................................................
$
11.50
$
15.71
$
28.19
Class
2
:
Net
Assets
..........................................................................
N/A
N/A
$
31,874
Shares
issued
and
outstanding
........................................................
1,140
Net
Asset
Value
per
share
.............................................................
$
27.93
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
19
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Government
&
High
Quality
Bond
Account
LargeCap
Growth
Account
I
MidCap
Account
Investment
in
securities--at
cost
..........................................................
$
237,105
$
325,886
$
377,772
Investment
in
affiliated
securities--at
cost
................................................
$
6,646
$
5,462
$
252
Assets
Investment
in
securities--at
value
..........................................................
$
238,212
(a)
$
494,450
(a)
$
608,173
(a)
Investment
in
affiliated
securities--at
value
.................................................
6,646
5,535
252
Cash
.........................................................................................
6
–
192
Deposits
with
counterparty
..................................................................
149
120
–
Receivables:
Dividends
and
interest
.................................................................
906
161
1,742
Expense
reimbursement
from
Manager
...............................................
–
11
–
Fund
shares
sold
.......................................................................
542
446
27
Investment
securities
sold
.............................................................
–
3,482
2,275
Variation
margin
on
futures
...........................................................
29
8
–
Total
Assets
246,490
504,213
612,661
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
102
296
274
Accrued
distribution
fees
....................................................................
–
–
4
Accrued
directors'
expenses
.................................................................
1
1
3
Accrued
other
expenses
.....................................................................
7
11
6
Cash
overdraft
...............................................................................
–
1
–
Payables:
Fund
shares
redeemed
.................................................................
215
192
1,073
Investment
securities
purchased
......................................................
2,319
36
789
Collateral
obligation
on
securities
loaned,
at
value
.........................................
2,514
1,023
1,850
Total
Liabilities
5,158
1,560
3,999
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
241,332
$
502,653
$
608,662
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
243,292
$
303,520
$
320,310
Total
distributable
earnings
(accumulated
loss)
.............................................
(
1,960
)
199,133
288,352
Total
Net
Assets
$
241,332
$
502,653
$
608,662
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
105,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
241,332
$
502,653
$
587,854
Shares
issued
and
outstanding
........................................................
24,602
13,354
9,808
Net
Asset
Value
per
share
.............................................................
$
9.81
$
37.64
$
59.93
Class
2
:
Net
Assets
..........................................................................
N/A
N/A
$
20,808
Shares
issued
and
outstanding
........................................................
350
Net
Asset
Value
per
share
.............................................................
$
59.42
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
20
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
Capital
Appreciation
Account
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
Investment
in
securities--at
cost
..........................................................
$
82,796
$
116,094
$
–
Investment
in
affiliated
securities--at
cost
................................................
$
2,945
$
1,130
$
563,396
Assets
Investment
in
securities--at
value
..........................................................
$
154,351
$
160,191
$
–
Investment
in
affiliated
securities--at
value
.................................................
2,945
1,130
698,192
Receivables:
Dividends
and
interest
.................................................................
210
618
1,179
Expense
reimbursement
from
Manager
...............................................
–
3
–
Fund
shares
sold
.......................................................................
6
58
230
Investment
securities
sold
.............................................................
82
261
412
Total
Assets
157,594
162,261
700,013
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
83
120
135
Accrued
distribution
fees
....................................................................
3
1
26
Accrued
directors'
expenses
.................................................................
1
1
2
Accrued
other
expenses
.....................................................................
7
6
6
Payables:
Fund
shares
redeemed
.................................................................
737
95
643
Investment
securities
purchased
......................................................
–
108
371
Total
Liabilities
831
331
1,183
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
156,763
$
161,930
$
698,830
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
76,951
$
107,168
$
531,464
Total
distributable
earnings
(accumulated
loss)
.............................................
79,812
54,762
167,366
Total
Net
Assets
$
156,763
$
161,930
$
698,830
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
300,000
300,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
143,227
$
155,569
$
574,960
Shares
issued
and
outstanding
........................................................
4,662
7,235
36,683
Net
Asset
Value
per
share
.............................................................
$
30.72
$
21.50
$
15.67
Class
2
:
Net
Assets
..........................................................................
$
13,536
$
6,361
$
123,870
Shares
issued
and
outstanding
........................................................
446
295
8,004
Net
Asset
Value
per
share
.............................................................
$
30.32
$
21.56
$
15.48
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
21
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Investment
in
affiliated
securities--at
cost
................................................
$
165,152
$
286,661
$
171,736
Assets
Investment
in
affiliated
securities--at
value
.................................................
$
189,384
$
356,534
$
188,444
Receivables:
Dividends
and
interest
.................................................................
291
491
399
Fund
shares
sold
.......................................................................
2
374
76
Investment
securities
sold
.............................................................
372
–
–
Total
Assets
190,049
357,399
188,919
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
37
69
37
Accrued
distribution
fees
....................................................................
5
30
6
Accrued
directors'
expenses
.................................................................
1
1
1
Accrued
other
expenses
.....................................................................
6
6
5
Payables:
Fund
shares
redeemed
.................................................................
374
80
11
Investment
securities
purchased
......................................................
151
366
274
Total
Liabilities
574
552
334
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
189,475
$
356,847
$
188,585
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
158,977
$
276,452
$
164,689
Total
distributable
earnings
(accumulated
loss)
.............................................
30,498
80,395
23,896
Total
Net
Assets
$
189,475
$
356,847
$
188,585
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
200,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
164,095
$
213,346
$
157,922
Shares
issued
and
outstanding
........................................................
13,458
10,700
12,553
Net
Asset
Value
per
share
.............................................................
$
12.19
$
19.94
$
12.58
Class
2
:
Net
Assets
..........................................................................
$
25,380
$
143,501
$
30,663
Shares
issued
and
outstanding
........................................................
2,110
7,309
2,464
Net
Asset
Value
per
share
.............................................................
$
12.03
$
19.63
$
12.44
Statements
of
Assets
and
Liabilities
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
22
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
SmallCap
Account
Investment
in
securities--at
cost
..........................................................
$
–
$
123,241
$
164,975
Investment
in
affiliated
securities--at
cost
................................................
$
264,331
$
4,444
$
10,018
Assets
Investment
in
securities--at
value
..........................................................
$
–
$
124,846
(a)
$
190,538
(a)
Investment
in
affiliated
securities--at
value
.................................................
315,191
4,444
10,018
Receivables:
Dividends
and
interest
.................................................................
320
609
281
Expense
reimbursement
from
Manager
...............................................
–
1
–
Fund
shares
sold
.......................................................................
11
1,339
45
Investment
securities
sold
.............................................................
23
–
–
Total
Assets
315,545
131,239
200,882
Liabilities
Accrued
management
and
investment
advisory
fees
........................................
60
55
133
Accrued
distribution
fees
....................................................................
31
–
1
Accrued
directors'
expenses
.................................................................
1
–
1
Accrued
other
expenses
.....................................................................
6
8
7
Payables:
Fund
shares
redeemed
.................................................................
34
15
348
Investment
securities
purchased
......................................................
–
–
3
Collateral
obligation
on
securities
loaned,
at
value
.........................................
–
309
9,126
Total
Liabilities
132
387
9,619
Net
Assets
Applicable
to
Outstanding
Shares
............................................
$
315,413
$
130,852
$
191,263
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
...............................................
$
253,422
$
126,749
$
152,854
Total
distributable
earnings
(accumulated
loss)
.............................................
61,991
4,103
38,409
Total
Net
Assets
$
315,413
$
130,852
$
191,263
Capital
Stock
(par
value:
$.01
per
share):
Shares
authorized
............................................................................
200,000
400,000
200,000
Net
Asset
Value
Per
Share:
Class
1
:
Net
Assets
..........................................................................
$
169,489
$
130,852
$
184,434
Shares
issued
and
outstanding
........................................................
7,759
50,963
12,031
Net
Asset
Value
per
share
.............................................................
$
21.85
$
2.57
$
15.33
Class
2
:
Net
Assets
..........................................................................
$
145,924
N/A
$
6,829
Shares
issued
and
outstanding
........................................................
6,775
447
Net
Asset
Value
per
share
.............................................................
$
21.53
$
15.26
(a)
Includes
fair
market
value
of
securities
loaned,
see
"Securities
Lending"
in
Notes
to
Financial
Statements.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
23
See
accompanying
notes.
Amounts
in
thousands
Core
Plus
Bond
Account
(a)
Diversified
International
Account
(a)
Equity
Income
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
269
$
35
$
242
Dividends
..................................................................................
155
7,780
19,426
Withholding
tax
...........................................................................
–
(
725
)
(
485
)
Interest
.....................................................................................
9,701
–
–
Securities
lending
-
net
....................................................................
3
11
14
Total
Income
10,128
7,101
19,197
Expenses:
Management
and
investment
advisory
fees
...............................................
1,317
2,158
3,411
Distribution
fees
-
Class
2
.................................................................
1
3
71
Chief
compliance
officer
expenses
........................................................
–
–
1
Custodian
fees
.............................................................................
21
123
19
Directors'
expenses
........................................................................
8
7
18
Professional fees
..........................................................................
14
50
5
Shareholder
meeting
expense
............................................................
11
16
–
Other
expenses
............................................................................
–
1
1
Total
Expenses
1,372
2,358
3,526
Net
Investment
Income
(Loss)
8,756
4,743
15,671
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies,
futures
contracts
and
swap
agreements
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
4,636
561
25,250
Foreign
currency
transactions
.............................................................
–
(
140
)
–
Futures
contracts
..........................................................................
616
–
–
Swap
agreements
..........................................................................
(
768
)
–
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
(net
of
foreign
taxes
of
$
0
,
$
10
and
$
0
,
respectively)
.......................
15,737
46,443
143,189
Futures
contracts
..........................................................................
(
381
)
–
–
Swap
agreements
..........................................................................
(
207
)
–
–
Translation
of
assets
and
liabilities
in
foreign
currencies
.................................
–
2
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments,
foreign
currencies,
futures
contracts
and
swap
agreements
19,633
46,866
168,439
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
28,389
$
51,609
$
184,110
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
24
See
accompanying
notes.
Amounts
in
thousands
Government
&
High
Quality
Bond
Account
(a)
LargeCap
Growth
Account
I
(a)
MidCap
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
93
$
152
$
15
Dividends
..................................................................................
–
2,932
7,445
Withholding
tax
...........................................................................
–
(
19
)
(
137
)
Interest
.....................................................................................
6,294
2
–
Securities
lending
-
net
....................................................................
1
19
20
Total
Income
6,388
3,086
7,343
Expenses:
Management
and
investment
advisory
fees
...............................................
1,149
2,999
3,101
Distribution
fees
-
Class
2
.................................................................
3
5
48
Chief
compliance
officer
expenses
........................................................
–
–
1
Custodian
fees
.............................................................................
5
25
2
Directors'
expenses
........................................................................
7
11
14
Professional fees
..........................................................................
11
10
6
Shareholder
meeting
expense
............................................................
10
18
29
Other
expenses
............................................................................
–
–
3
Total
Gross
Expenses
1,185
3,068
3,204
Less:
Reimbursement
from
Manager
.....................................................
–
67
–
Less:
Reimbursement
from
Manager
-
Class
1
...........................................
–
41
–
Total
Net
Expenses
1,185
2,960
3,204
Net
Investment
Income
(Loss)
5,203
126
4,139
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
176
36,888
65,028
Futures
contracts
..........................................................................
271
461
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
8,239
79,800
131,244
Investments
in
affiliated
securities
........................................................
–
102
–
Futures
contracts
..........................................................................
185
13
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
and
futures
contracts
8,871
117,264
196,272
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
14,074
$
117,390
$
200,411
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
25
See
accompanying
notes.
Amounts
in
thousands
Principal
Capital
Appreciation
Account
Real
Estate
Securities
Account
SAM
Balanced
Portfolio
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
61
$
18
$
16,020
Dividends
..................................................................................
2,843
3,927
–
Withholding
tax
...........................................................................
(
13
)
–
–
Total
Income
2,891
3,945
16,020
Expenses:
Management
and
investment
advisory
fees
...............................................
943
1,389
1,591
Distribution
fees
-
Class
2
.................................................................
27
12
288
Chief
compliance
officer
expenses
........................................................
–
–
1
Custodian
fees
.............................................................................
3
3
–
Directors'
expenses
........................................................................
6
6
16
Professional fees
..........................................................................
6
6
7
Shareholder
meeting
expense
............................................................
9
11
15
Other
expenses
............................................................................
–
1
1
Total
Gross
Expenses
994
1,428
1,919
Less:
Reimbursement
from
Manager
.....................................................
–
31
–
Total
Net
Expenses
994
1,397
1,919
Net
Investment
Income
(Loss)
1,897
2,548
14,101
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
9,392
10,570
13
Investment
transactions
in
affiliated
securities
............................................
–
–
14,959
Capital
gain
distribution
received
from
affiliated
securities
..............................
–
–
5,877
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
30,626
28,328
–
Investments
in
affiliated
securities
........................................................
–
–
90,645
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
40,018
38,898
111,494
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
41,915
$
41,446
$
125,595
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
26
See
accompanying
notes.
Amounts
in
thousands
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
4,776
$
7,230
$
5,411
Total
Income
4,776
7,230
5,411
Expenses:
Management
and
investment
advisory
fees
...............................................
427
773
429
Distribution
fees
-
Class
2
.................................................................
57
330
70
Directors'
expenses
........................................................................
6
10
6
Professional fees
..........................................................................
7
7
7
Shareholder
meeting
expense
............................................................
6
15
6
Total
Expenses
503
1,135
518
Net
Investment
Income
(Loss)
4,273
6,095
4,893
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
in
affiliated
securities
............................................
2,931
1,618
3,996
Capital
gain
distribution
received
from
affiliated
securities
..............................
1,148
3,995
719
Change
in
unrealized
appreciation/depreciation
of:
Investments
in
affiliated
securities
........................................................
18,902
59,644
13,562
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
22,981
65,257
18,277
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
27,254
$
71,352
$
23,170
Statements
of
Operations
Principal
Variable
Contracts
Funds,
Inc.
Year
Ended
December
31,
2019
27
See
accompanying
notes.
Amounts
in
thousands
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
(a)
SmallCap
Account
Net
Investment
Income
(Loss)
Income:
Dividends
from
affiliated
securities
.......................................................
$
6,207
$
59
$
82
Dividends
..................................................................................
–
–
2,455
Withholding
tax
...........................................................................
–
–
(
1
)
Interest
.....................................................................................
–
3,811
–
Securities
lending
-
net
....................................................................
–
6
43
Total
Income
6,207
3,876
2,579
Expenses:
Management
and
investment
advisory
fees
...............................................
665
685
1,555
Distribution
fees
-
Class
2
.................................................................
332
4
15
Custodian
fees
.............................................................................
–
11
3
Directors'
expenses
........................................................................
9
5
6
Professional fees
..........................................................................
8
11
7
Shareholder
meeting
expense
............................................................
18
7
17
Total
Gross
Expenses
1,032
723
1,603
Less:
Reimbursement
from
Manager
-
Class
1
...........................................
–
14
–
Total
Net
Expenses
1,032
709
1,603
Net
Investment
Income
(Loss)
5,175
3,167
976
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
...................................................................
–
367
12,355
Investment
transactions
in
affiliated
securities
............................................
1,616
–
–
Capital
gain
distribution
received
from
affiliated
securities
..............................
5,578
–
–
Change
in
unrealized
appreciation/depreciation
of:
Investments
................................................................................
–
2,788
31,227
Investments
in
affiliated
securities
........................................................
56,229
–
–
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
63,423
3,155
43,582
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
68,598
$
6,322
$
44,558
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
28
See
accompanying
notes.
Amounts
in
thousands
Core
Plus
Bond
Account
Diversified
International
Account
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
8,756
$
9,405
$
4,743
$
5,381
Net
realized
gain
(loss)
on
investments
,
foreign
currencies
,
futures
contracts
and
swap
agreements
...
4,484
(
4,080
)
421
12,743
Change
in
unrealized
appreciation/depreciation
of
investments
,
futures
contracts
and
swap
agreements
...............................................................................................
15,149
(
9,640
)
46,445
(
68,991
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
28,389
(
4,315
)
51,609
(
50,867
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
10,172
)
(
9,608
)
(
16,680
)
(
5,962
)
Class
2
..............................................................................................
–
(
28
)
–
(
45
)
Total
Dividends
and
Distributions
(
10,172
)
(
9,636
)
(
16,680
)
(
6,007
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
50,731
45,295
16,466
25,975
Class
2
..............................................................................................
678
485
282
757
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
13,863
N/A
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
10,172
9,608
16,680
5,962
Class
2
..............................................................................................
–
28
–
45
Dollars
redeemed:
Class
1
..............................................................................................
(
120,810
)
(
53,893
)
(
34,685
)
(
34,901
)
Class
2
..............................................................................................
(
1,497
)
(
306
)
(
2,536
)
(
175
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
46,863
)
1,217
(
3,793
)
(
2,337
)
Total
Increase
(Decrease)
(
28,646
)
(
12,734
)
31,136
(
59,211
)
Net
Assets
Beginning
of
period
......................................................................................
281,520
294,254
235,632
294,843
End
of
period
............................................................................................
$
252,874
$
281,520
$
266,768
$
235,632
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
4,480
4,117
1,091
1,569
Class
2
..............................................................................................
61
45
19
45
Shares
issued
in
acquisition:
Class
1
..............................................................................................
1,210
N/A
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
891
891
1,154
379
Class
2
..............................................................................................
–
3
–
3
Shares
redeemed:
Class
1
..............................................................................................
(
10,571
)
(
4,899
)
(
2,292
)
(
2,138
)
Class
2
..............................................................................................
(
132
)
(
29
)
(
165
)
(
11
)
Net
Increase
(Decrease)
..................................................................................
(
4,061
)
128
(
193
)
(
153
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
29
See
accompanying
notes.
Amounts
in
thousands
Equity
Income
Account
Government
&
High
Quality
Bond
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
15,671
$
15,325
$
5,203
$
5,612
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
25,250
26,702
447
(
4,919
)
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
143,189
(
78,310
)
8,424
1,170
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
184,110
(
36,283
)
14,074
1,863
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
31,963
)
(
45,062
)
(
6,457
)
(
8,577
)
Class
2
..............................................................................................
(
1,260
)
(
2,105
)
–
(
94
)
Total
Dividends
and
Distributions
(
33,223
)
(
47,167
)
(
6,457
)
(
8,671
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
30,924
58,053
45,780
23,115
Class
2
..............................................................................................
2,812
2,423
109
587
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A
138,113
N/A
N/A
Class
2
..............................................................................................
N/A
728
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
31,963
45,062
6,457
8,577
Class
2
..............................................................................................
1,260
2,105
–
94
Dollars
redeemed:
Class
1
..............................................................................................
(
102,774
)
(
97,723
)
(
38,035
)
(
47,180
)
Class
2
..............................................................................................
(
3,271
)
(
4,025
)
(
2,835
)
(
287
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
39,086
)
144,736
11,476
(
15,094
)
Total
Increase
(Decrease)
111,801
61,286
19,093
(
21,902
)
Net
Assets
Beginning
of
period
......................................................................................
661,384
600,098
222,239
244,141
End
of
period
............................................................................................
$
773,185
$
661,384
$
241,332
$
222,239
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,185
2,255
4,656
2,427
Class
2
..............................................................................................
107
94
11
62
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A
5,656
N/A
N/A
Class
2
..............................................................................................
N/A
30
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
1,212
1,759
662
922
Class
2
..............................................................................................
48
83
–
10
Shares
redeemed:
Class
1
..............................................................................................
(
3,931
)
(
3,796
)
(
3,904
)
(
4,946
)
Class
2
..............................................................................................
(
127
)
(
157
)
(
289
)
(
30
)
Net
Increase
(Decrease)
..................................................................................
(
1,506
)
5,924
1,136
(
1,555
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
30
See
accompanying
notes.
Amounts
in
thousands
LargeCap
Growth
Account
I
MidCap
Account
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
126
$
253
$
4,139
$
1,610
Net
realized
gain
(loss)
on
investments
and
futures
contracts
...........................................
37,349
39,058
65,028
91,599
Change
in
unrealized
appreciation/depreciation
of
investments
and
futures
contracts
..................
79,915
(
27,387
)
131,244
(
126,070
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
117,390
11,924
200,411
(
32,861
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
34,797
)
(
23,659
)
(
78,890
)
(
71,720
)
Class
2
..............................................................................................
–
(
197
)
(
2,711
)
(
2,314
)
Total
Dividends
and
Distributions
(
34,797
)
(
23,856
)
(
81,601
)
(
74,034
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
49,655
40,614
16,147
14,347
Class
2
..............................................................................................
1,475
2,908
241
318
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
112,835
N/A
N/A
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
34,797
23,659
78,890
71,720
Class
2
..............................................................................................
–
197
2,711
2,314
Dollars
redeemed:
Class
1
..............................................................................................
(
72,723
)
(
58,731
)
(
96,550
)
(
83,342
)
Class
2
..............................................................................................
(
5,277
)
(
266
)
(
1,662
)
(
1,283
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
120,762
8,381
(
223
)
4,074
Total
Increase
(Decrease)
203,355
(
3,551
)
118,587
(
102,821
)
Net
Assets
Beginning
of
period
......................................................................................
299,298
302,849
490,075
592,896
End
of
period
............................................................................................
$
502,653
$
299,298
$
608,662
$
490,075
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
1,406
1,205
272
254
Class
2
..............................................................................................
42
86
4
6
Shares
issued
in
acquisition:
Class
1
..............................................................................................
3,150
N/A
N/A
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
1,003
687
1,395
1,273
Class
2
..............................................................................................
–
6
48
41
Shares
redeemed:
Class
1
..............................................................................................
(
2,043
)
(
1,745
)
(
1,633
)
(
1,432
)
Class
2
..............................................................................................
(
148
)
(
9
)
(
28
)
(
22
)
Net
Increase
(Decrease)
..................................................................................
3,410
230
58
120
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
31
See
accompanying
notes.
Amounts
in
thousands
Principal
Capital
Appreciation
Account
Real
Estate
Securities
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
1,897
$
2,365
$
2,548
$
2,786
Net
realized
gain
(loss)
on
investments
..................................................................
9,392
15,443
10,570
10,389
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
30,626
(
21,803
)
28,328
(
19,411
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
41,915
(
3,995
)
41,446
(
6,236
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
14,537
)
(
9,374
)
(
12,865
)
(
14,247
)
Class
2
..............................................................................................
(
1,192
)
(
592
)
(
409
)
(
340
)
Total
Dividends
and
Distributions
(
15,729
)
(
9,966
)
(
13,274
)
(
14,587
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
2,236
3,936
13,048
11,906
Class
2
..............................................................................................
3,206
1,928
2,340
1,190
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
14,537
9,374
12,865
14,247
Class
2
..............................................................................................
1,192
592
409
340
Dollars
redeemed:
Class
1
..............................................................................................
(
26,520
)
(
26,219
)
(
31,224
)
(
26,990
)
Class
2
..............................................................................................
(
1,378
)
(
1,344
)
(
602
)
(
393
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
6,727
)
(
11,733
)
(
3,164
)
300
Total
Increase
(Decrease)
19,459
(
25,694
)
25,008
(
20,523
)
Net
Assets
Beginning
of
period
......................................................................................
137,304
162,998
136,922
157,445
End
of
period
............................................................................................
$
156,763
$
137,304
$
161,930
$
136,922
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
77
140
621
611
Class
2
..............................................................................................
109
66
109
61
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
509
320
619
737
Class
2
..............................................................................................
42
21
20
17
Shares
redeemed:
Class
1
..............................................................................................
(
894
)
(
902
)
(
1,476
)
(
1,376
)
Class
2
..............................................................................................
(
47
)
(
47
)
(
29
)
(
20
)
Net
Increase
(Decrease)
..................................................................................
(
204
)
(
402
)
(
136
)
30
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
32
See
accompanying
notes.
Amounts
in
thousands
SAM
Balanced
Portfolio
SAM
Conservative
Balanced
Portfolio
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
14,101
$
16,876
$
4,273
$
5,257
Net
realized
gain
(loss)
on
investments
..................................................................
20,849
26,614
4,079
4,053
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
90,645
(
78,727
)
18,902
(
15,820
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
125,595
(
35,237
)
27,254
(
6,510
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
34,485
)
(
49,734
)
(
7,836
)
(
11,929
)
Class
2
..............................................................................................
(
6,978
)
(
8,765
)
(
1,118
)
(
1,454
)
Total
Dividends
and
Distributions
(
41,463
)
(
58,499
)
(
8,954
)
(
13,383
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
11,207
18,427
10,371
12,728
Class
2
..............................................................................................
12,791
9,719
3,994
4,078
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
34,485
49,734
7,836
11,929
Class
2
..............................................................................................
6,978
8,765
1,118
1,454
Dollars
redeemed:
Class
1
..............................................................................................
(
102,578
)
(
106,200
)
(
24,553
)
(
31,254
)
Class
2
..............................................................................................
(
13,398
)
(
10,034
)
(
2,337
)
(
3,360
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
50,515
)
(
29,589
)
(
3,571
)
(
4,425
)
Total
Increase
(Decrease)
33,617
(
123,325
)
14,729
(
24,318
)
Net
Assets
Beginning
of
period
......................................................................................
665,213
788,538
174,746
199,064
End
of
period
............................................................................................
$
698,830
$
665,213
$
189,475
$
174,746
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
740
1,191
886
1,055
Class
2
..............................................................................................
852
630
338
345
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
2,314
3,318
668
1,026
Class
2
..............................................................................................
474
591
96
127
Shares
redeemed:
Class
1
..............................................................................................
(
6,736
)
(
6,846
)
(
2,065
)
(
2,587
)
Class
2
..............................................................................................
(
895
)
(
654
)
(
199
)
(
282
)
Net
Increase
(Decrease)
..................................................................................
(
3,251
)
(
1,770
)
(
276
)
(
316
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
33
See
accompanying
notes.
Amounts
in
thousands
SAM
Conservative
Growth
Portfolio
SAM
Flexible
Income
Portfolio
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
6,095
$
5,906
$
4,893
$
6,420
Net
realized
gain
(loss)
on
investments
..................................................................
5,613
15,591
4,715
5,776
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
59,644
(
43,484
)
13,562
(
15,998
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
71,352
(
21,987
)
23,170
(
3,802
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
13,076
)
(
16,069
)
(
9,918
)
(
11,234
)
Class
2
..............................................................................................
(
8,339
)
(
9,631
)
(
1,807
)
(
1,602
)
Total
Dividends
and
Distributions
(
21,415
)
(
25,700
)
(
11,725
)
(
12,836
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
13,665
21,584
11,700
8,441
Class
2
..............................................................................................
12,305
9,393
5,814
7,676
Dollars
issued
in
acquisition:
Class
1
..............................................................................................
N/A
N/A
346
N/A
Class
2
..............................................................................................
N/A
N/A
107
N/A
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
13,076
16,069
9,918
11,234
Class
2
..............................................................................................
8,339
9,631
1,807
1,602
Dollars
redeemed:
Class
1
..............................................................................................
(
33,646
)
(
38,633
)
(
30,930
)
(
42,935
)
Class
2
..............................................................................................
(
14,790
)
(
9,529
)
(
4,297
)
(
4,450
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
(
1,051
)
8,515
(
5,535
)
(
18,432
)
Total
Increase
(Decrease)
48,886
(
39,172
)
5,910
(
35,070
)
Net
Assets
Beginning
of
period
......................................................................................
307,961
347,133
182,675
217,745
End
of
period
............................................................................................
$
356,847
$
307,961
$
188,585
$
182,675
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
719
1,136
937
668
Class
2
..............................................................................................
654
491
468
613
Shares
issued
in
acquisition:
Class
1
..............................................................................................
N/A
N/A
27
N/A
Class
2
..............................................................................................
N/A
N/A
8
N/A
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
698
847
811
921
Class
2
..............................................................................................
452
514
149
132
Shares
redeemed:
Class
1
..............................................................................................
(
1,766
)
(
2,012
)
(
2,464
)
(
3,390
)
Class
2
..............................................................................................
(
790
)
(
494
)
(
346
)
(
353
)
Net
Increase
(Decrease)
..................................................................................
(
33
)
482
(
410
)
(
1,409
)
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
34
See
accompanying
notes.
Amounts
in
thousands
SAM
Strategic
Growth
Portfolio
Short-Term
Income
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Year
Ended
December
31,
2019
(a)
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
............................................................................
$
5,175
$
4,190
$
3,167
$
3,396
Net
realized
gain
(loss)
on
investments
..................................................................
7,194
16,667
367
(
914
)
Change
in
unrealized
appreciation/depreciation
of
investments
.........................................
56,229
(
45,097
)
2,788
(
759
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
68,598
(
24,240
)
6,322
1,723
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
..............................................................................................
(
10,497
)
(
12,164
)
(
3,392
)
(
3,250
)
Class
2
..............................................................................................
(
8,871
)
(
9,663
)
–
(
71
)
Total
Dividends
and
Distributions
(
19,368
)
(
21,827
)
(
3,392
)
(
3,321
)
Capital
Share
Transactions
Dollars
sold:
Class
1
..............................................................................................
13,010
15,633
32,469
29,747
Class
2
..............................................................................................
9,949
9,438
1,115
2,906
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
10,497
12,164
3,392
3,250
Class
2
..............................................................................................
8,871
9,663
–
71
Dollars
redeemed:
Class
1
..............................................................................................
(
21,196
)
(
26,105
)
(
56,911
)
(
40,805
)
Class
2
..............................................................................................
(
10,097
)
(
10,070
)
(
5,301
)
(
1,159
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
11,034
10,723
(
25,236
)
(
5,990
)
Total
Increase
(Decrease)
60,264
(
35,344
)
(
22,306
)
(
7,588
)
Net
Assets
Beginning
of
period
......................................................................................
255,149
290,493
153,158
160,746
End
of
period
............................................................................................
$
315,413
$
255,149
$
130,852
$
153,158
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
..............................................................................................
625
737
12,624
11,770
Class
2
..............................................................................................
486
448
437
1,153
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
..............................................................................................
517
589
1,330
1,300
Class
2
..............................................................................................
443
474
–
28
Shares
redeemed:
Class
1
..............................................................................................
(
1,024
)
(
1,230
)
(
22,197
)
(
16,117
)
Class
2
..............................................................................................
(
496
)
(
480
)
(
2,065
)
(
460
)
Net
Increase
(Decrease)
..................................................................................
551
538
(
9,871
)
(
2,326
)
(a)
Class
2
shares
discontinued
operations
and
converted
to
Class
1
shares
on
June
14,
2019.
Statements
of
Changes
in
Net
Assets
Principal
Variable
Contracts
Funds,
Inc.
35
See
accompanying
notes.
Amounts
in
thousands
SmallCap
Account
Year
Ended
December
31,
2019
Year
Ended
December
31,
2018
Operations
Net
investment
income
(loss)
...................................................................................................................
$
976
$
394
Net
realized
gain
(loss)
on
investments
.........................................................................................................
12,355
28,868
Change
in
unrealized
appreciation/depreciation
of
investments
................................................................................
31,227
(
48,626
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
44,558
(
19,364
)
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments:
Class
1
.....................................................................................................................................
(
28,785
)
(
13,133
)
Class
2
.....................................................................................................................................
(
937
)
(
366
)
Total
Dividends
and
Distributions
(
29,722
)
(
13,499
)
Capital
Share
Transactions
Dollars
sold:
Class
1
.....................................................................................................................................
7,971
12,588
Class
2
.....................................................................................................................................
1,072
866
Dollars
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
.....................................................................................................................................
28,785
13,133
Class
2
.....................................................................................................................................
937
366
Dollars
redeemed:
Class
1
.....................................................................................................................................
(
29,980
)
(
39,263
)
Class
2
.....................................................................................................................................
(
475
)
(
750
)
Net
Increase
(Decrease)
in
Net
Assets
from
Capital
Share
Transactions
8,310
(
13,060
)
Total
Increase
(Decrease)
23,146
(
45,923
)
Net
Assets
Beginning
of
period
.............................................................................................................................
168,117
214,040
End
of
period
...................................................................................................................................
$
191,263
$
168,117
Increase
(Decrease)
in
Capital
Shares
Shares
sold:
Class
1
.....................................................................................................................................
506
732
Class
2
.....................................................................................................................................
70
50
Shares
issued
in
reinvestment
of
dividends
and
distributions:
Class
1
.....................................................................................................................................
1,996
716
Class
2
.....................................................................................................................................
65
20
Shares
redeemed:
Class
1
.....................................................................................................................................
(
1,890
)
(
2,233
)
Class
2
.....................................................................................................................................
(
30
)
(
43
)
Net
Increase
(Decrease)
.........................................................................................................................
717
(
758
)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
36
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
Core
Plus
Bond
Account,
Diversified
International
Account,
Equity
Income
Account,
Government
&
High
Quality
Bond
Account,
LargeCap
Growth
Account
I,
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
(“ASC”)
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
Income
Account
acquired
all
the
assets
and
assumed
all
the
liabilities
of
LargeCap
Value
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
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
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
Income
Account,
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.
Effective
June
7,
2019,
Core
Plus
Bond
Account
acquired
all
the
assets
and
assumed
all
the
liabilities
of
Income
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
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
taxable
exchange
of
5,873,000
shares
from
Income
Account
for
1,210,000
shares
valued
at
$13,863,000
of
Core
Plus
Bond
Account
at
an
approximate
exchange
rate
of
.21
and
.21
for
Class
1
and
Class
2
shares,
respectively.
The
investment
securities
of
Income
Account,
with
a
fair
value
of
approximately
$13,145,000
and
a
cost
of
$12,607,000
and
$613,000
cash
were
the
primary
assets
acquired
by
Core
Plus
Bond
Account
on
June
7,
2019.
For
financial
reporting
purposes,
assets
received
and
shares
issued
by
Core
Plus
Bond
Account
were
recorded
at
fair
value.
The
net
assets
of
Income
Account
and
Core
Plus
Bond
Account
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$13,863,000
($4,875,000
of
accumulated
realized
gain)
and
$304,718,000,
respectively.
The
net
assets
of
Core
Plus
Bond
Account
immediately
following
the
acquisition
were
$318,581,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
Core
Plus
Bond
Account,
Core
Plus
Bond
Account’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$11,379,000
of
net
investment
income,
$24,559,000
of
net
realized
and
unrealized
gain
on
investments,
and
$35,938,000
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
Income
Account
that
have
been
included
in
Core
Plus
Bond
Account’s
statement
of
operations
since
June
7,
2019.
Effective
June
7,
2019,
LargeCap
Growth
Account
I
acquired
all
the
assets
and
assumed
all
the
liabilities
of
LargeCap
Growth
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
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
non-taxable
exchange
of
4,657,000
shares
from
LargeCap
Growth
Account
for
3,150,000
shares
valued
at
$112,835,000
of
LargeCap
Growth
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
37
Account
I
at
an
approximate
exchange
rate
of
.68
and
.67
for
Class
1
and
Class
2
shares,
respectively.
The
investment
securities
of
LargeCap
Growth
Account,
with
a
fair
value
of
approximately
$109,603,000
and
a
cost
of
$97,236,000
and
$3,176,000
cash
were
the
primary
assets
acquired
by
LargeCap
Growth
Account
I
on
June
7,
2019.
For
financial
reporting
purposes,
assets
received
and
shares
issued
by
LargeCap
Growth
Account
I
were
recorded
at
fair
value;
however,
the
cost
basis
of
the
investments
received
from
LargeCap
Growth
Account
were
maintained
through
the
reorganization.
The
net
assets
of
LargeCap
Growth
Account
and
LargeCap
Growth
Account
I
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$112,835,000
($650,000
of
accumulated
realized
gain)
and
$351,045,000,
respectively.
The
net
assets
of
LargeCap
Growth
Account
I
immediately
following
the
acquisition
were
$463,880,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
LargeCap
Growth
Account
I,
LargeCap
Growth
Account
I’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$132,000
of
net
investment
income,
$134,661,000
of
net
realized
and
unrealized
gain
on
investments,
and
$134,793,000
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
LargeCap
Growth
Account
that
have
been
included
in
LargeCap
Growth
Account
I’s
statement
of
operations
since
June
7,
2019.
Effective
June
7,
2019,
SAM
Flexible
Income
Portfolio
acquired
all
the
assets
and
assumed
all
the
liabilities
of
Multi-Asset
Income
Account
pursuant
to
a
plan
of
reorganization
approved
by
shareholders
on
December
11,
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
non-taxable
exchange
of
43,000
shares
from
Multi-Asset
Income
Account
for
35,000
shares
valued
at
$453,000
of
SAM
Flexible
Income
Portfolio
at
an
approximate
exchange
rate
of
.83
and
.83
for
Class
1
and
Class
2
shares,
respectively.
$457,000
cash
was
the
primary
asset
acquired
by
SAM
Flexible
Income
Portfolio
on
June
7,
2019.
The
net
assets
of
Multi-Asset
Income
Account
and
SAM
Flexible
Income
Portfolio
immediately
prior
to
the
acquisition
in
accordance
with
U.S.
GAAP
were
approximately
$453,000
and
$185,924,000,
respectively.
The
net
assets
of
SAM
Flexible
Income
Portfolio
immediately
following
the
acquisition
were
$186,377,000.
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,
2019,
the
beginning
of
the
fiscal
year
for
SAM
Flexible
Income
Portfolio,
SAM
Flexible
Income
Portfolio’s
pro
forma
results
of
operations
for
the
year
ended
December
31,
2019,
would
have
been
$4,900,000
of
net
investment
income,
$18,302,000
of
net
realized
and
unrealized
gain
on
investments,
and
$23,202,000
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
Multi-Asset
Income
Account
that
have
been
included
in
SAM
Flexible
Income
Portfolio’s
statement
of
operations
since
June
7,
2019.
Effective
June
14,
2019,
Class
2
shares
discontinued
and
converted
into
Class
1
shares
for
the
following
Accounts:
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
SAM
Balanced
Portfolio,
SAM
Conservative
Balanced
Portfolio,
SAM
Conservative
Growth
Portfolio,
SAM
Flexible
Income
Portfolio,
and
SAM
Strategic
Growth
Portfolio
(collectively,
the
“SAM
Portfolios”),
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,
which
are
valued
at
closing
exchange
price.
The
Accounts
also
invest
in
other
publicly
traded
investment
funds.
Other
publicly
traded
Core
Plus
Bond
Account
LargeCap
Growth
Account
I
Diversified
International
Account
Short-Term
Account
Government
&
High
Quality
Bond
Account
1.
Organization
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
38
investment
funds
are
valued
at
the
respective
fund’s
net
asset
value.
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
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
in
American
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
Fund
to
value
such
securities
at
prices
at
which
it
is
expected
those
shares
may
be
sold,
and
the
Manager
or
any
sub-advisor
is
authorized
to
make
such
determinations
subject
to
such
oversight
by
the
Fund’s
Board
of
Directors
as
may
occasionally
be
necessary.
Currency
Translation.
Foreign
holdings
are
translated
to
U.S.
dollars
using
the
exchange
rate
at
the
daily
close
of
the
New
York
Stock
Exchange.
The
identified
cost
of
the
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,
2019:
Income
and
Investment
Transactions.
The Accounts
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
Diversified
International
Account
Euro
18.8%
Japanese
Yen
15.2
British
Pound
Sterling
9.2
Swiss
Franc
9.1
Canadian
Dollar
8.5
Hong
Kong
Dollar
5.1
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
39
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.
Callable
debt
securities
purchased
at
a
premium
are
amortized
to
the
earliest
call
date.
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
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
amortization
of
premiums
and
discounts,
net
operating
losses,
foreign
currency
transactions,
options
and
futures
contracts,
certain
defaulted
securities,
sales
of
passive
foreign
investment
companies,
losses
deferred
due
to
wash
sales,
mortgage-backed
securities,
certain
preferred
securities,
swap
agreements,
short
sales,
partnership
investments,
Real
Estate
Investment
Trusts
(“REITs”),
utilization
of
earnings
and
profits
distributed
to
shareholders
on
redemption
of
shares,
and
limitations
imposed
by
Sections
381
–
384
of
the
Internal
Revenue
Code.
Permanent
book
and
tax
basis
differences
are
reclassified
within
the
capital
accounts
based
on
federal
tax-basis
treatment;
temporary
differences
do
not
require
reclassification.
To
the
extent
dividends
and
distributions
exceed
current
and
accumulated
earnings
and
profits
for
federal
income
tax
purposes,
they
are
reported
as
return
of
capital
distributions.
Distributions
from
REITs
may
be
characterized
as
ordinary
income,
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 year
ended
December
31,
2019,
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
2016-2018.
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
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
40
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,
2019,
Diversified
International
Account
had
a
deferred
tax
liability
of
$10,000
relating
to
foreign
securities.
Recent
Accounting
Pronouncements.
In
August
2018,
the
Financial
Accounting
Standards
Board
issued
Accounting
Standards
Update
("ASU")
No.
2018-13,
Fair
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.
The
Accounts
adopted
the
removal
and
modification
of
applicable
disclosures
during
the
year
ended
December
31,
2018
and
will
adopt
the
additional
disclosures
on
the
effective
date
of
the
ASU.
In
March
2017,
the
Financial
Accounting
Standards
Board
issued
ASU
No.
2017-08,
Premium
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 have
adopted
the
new
amendment
as
of
January
1,
2019.
The
adoption
of
the
ASU
resulted
in
a
cumulative
effective
adjustment
to
components
within
total
distributable
earnings
(accumulated
loss)
on
the
statements
of
assets
and
liabilities
as
of
the
beginning
of
the
fiscal
year.
This
cumulative
effective
adjustment did
not
have
a
material
impact
on
the
financial
statements
and
did
not
impact
net
assets
of
the
Accounts.
3.
Operating
Policies
Borrowings.
Pursuant
to
an
exemptive
order
issued
by
the
Securities
and
Exchange
Commission
(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
Interbank
Offered Rate
("LIBOR")
rate
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
the
statements
of
operations.
There
were
no
outstanding
loans
or borrowings
as
of
the
year ended
December
31,
2019.
During
the year
ended
December
31,
2019, Accounts
lending
to
the
Facility
were
as
follows
(amounts
in
thousands):
During
the year
ended
December
31,
2019, Accounts
borrowing
from
the
Facility
were
as
follows
(amounts
in
thousands):
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.
The
interest
expense
Average
Daily
Amount
Loaned
Weighted
Average
Annual
Interest
Rate
Core
Plus
Bond
Account
$104
2.77%
Diversified
International
Account
3
2.85
Equity
Income
Account
16
2.36
Government
&
High
Quality
Bond
Account
22
2.87
LargeCap
Growth
Account
I
17
2.94
MidCap
Account
—
2.69
Principal
Capital
Appreciation
Account
5
2.97
Real
Estate
Securities
Account
5
2.59
Short-Term
Income
Account
25
2.96
SmallCap
Account
14
2.80
Average
Daily
Outstanding
Balance
Weighted
Average
Annual
Interest
Rate
Diversified
International
Account
$33
2.73%
Government
&
High
Quality
Bond
Account
1
3.00
MidCap
Account
79
2.83
Real
Estate
Securities
Account
25
2.35
Short-Term
Income
Account
4
3.02
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
41
associated
with
these
borrowings
is
included
in
other
expenses
on
the
statements
of
operations.
The
Accounts
did
not
borrow
against
the
line
of
credit
during
the
year
ended
December
31,
2019
.
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,
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,
as
stated
in
the
counterparties’
master
netting
agreements
(“Master
Netting
Agreements”),
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.
Collateral
information
relating
to
securities
on
loan
is
included
in
the
securities
lending
note
to
financial
statements.
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,
2019
,
no
Accounts
had
financial
assets
and
liabilities
subject
to
Master
Netting
Agreements
or
similar
agreements.
Cross
Trades.
The
Accounts
may
engage
in
cross
trades.
A
cross
trade
is
a
purchase
or
sale
transaction
between
affiliated
portfolios
executed
directly
or
through
an
intermediary.
Mutual
funds
and
other
managed
portfolios
may
be
considered
affiliated
if
they
have
a
common
investment
advisor,
so
an
account may
be
considered
affiliated
with
any
portfolio
for
which
the
account's
sub-advisor
acts
as
an
investment
advisor.
Such
transactions
are
permissible
provided
that
the
conditions
of
Rule
17a-7
under
the
Investment
Company
Act
of
1940
are
satisfied.
Deposits
with
Counterparty.
Cash
pledged
as
collateral
is
reflected
as
an
asset
on
the
statements
of
assets
and
liabilities
as
deposits
with
counterparty.
There
are
a
variety
of
security
types
which
require
varying
levels
of
pledged
collateral.
Customer
account
agreements
govern
cleared
derivatives
transactions
such
as
futures
contracts
and
certain
swap
agreements.
Such
transactions
require
posting
of
initial
margin
as
determined
by
each
relevant
clearing
agency
which
is
segregated
in
an
account
at
a
futures
commission
merchant
(“FCM”)
registered
with
the
Commodity
Futures
Trading
Commission.
International
Swaps
and
Derivatives
Association
(“ISDA”)
accounts
are
maintained
in
a
segregated
account
at
the
custodian
for
over-the-counter
("OTC")
derivatives.
Master
Securities
Forward
Transaction
Agreements
("MSFTA")
accounts
are
also
maintained
in
a
segregated
account
at
the
custodian
for
collateral
related
to
forward
currency
contracts
and
"to-be-announced"
("TBA")
securities.
Certain
of
the Accounts may
pledge
cash
to
a
broker
for
securities
sold
short.
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
42
As
of
December
31,
2019,
deposits
with
counterparty
were
as
follows
(amounts
in
thousands):
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 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
(accumulated
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
the
Accounts
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.
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 Fund's
policy
that
the
counterparties’
custodian
takes
possession
of
the
underlying
collateral
securities.
The
fair
value
of
the
collateral
is
at
all
times
at
least
equal
to
the
total
amount
of
the
repurchase
obligation.
In
the
event
of
default
FCM
(Futures
and
Cleared
Swaps)
ISDA
(OTC
Derivatives)
MSFTA
(Forward
Currency
Contracts
and
TBA
Securities)
Total
Deposits
with
Counterparty
Core
Plus
Bond
Account
$
—
$
1
$
8
$
9
Government
&
High
Quality
Bond
Account
149
—
—
149
LargeCap
Growth
Account
I
120
—
—
120
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
43
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.
Securities
Lending.
To
earn
additional
income,
certain
of
the
Accounts
may
lend
portfolio
securities
to
approved
brokerage
firms.
The
Accounts
receive
collateral,
in
the
form
of
cash,
against
the
loaned
securities.
During
the
period
of
the
loan,
the
borrower
must
maintain
collateral
in
an
amount
not
less
than
102%
of
the
market
value
of
the
domestic
and
foreign
fixed
income
loaned
securities
and
105%
of
the
market
value
of
the
foreign
equity
loaned
securities. The
market
value
of
the
loaned
securities
is
determined
at
the
close
of
business
of
the
Accounts
and
any
additional
required
collateral
is
delivered
to
the
Accounts
on
the
next
business
day.
The
cash
collateral
received
is
usually
invested
in
a
SEC-registered
money
market
mutual
fund
and
the
Accounts
could
realize
a
loss
on
such
investments.
Further,
the
Accounts
could
experience
a
delay
in
recovering
its
securities
and
possible
loss
of
income
or
value
if
the
borrower
fails
to
return
them.
Security
lending
income,
net
of
related
fees, is
shown
on
the
statements
of
operations.
As
of
December
31,
2019,
the
Accounts
had
securities
on
loan
as
follows
(amounts
in
thousands):
Senior
Floating
Rate
Interests.
The
Accounts
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
the
LIBOR
rate.
Senior
floating
rate
interests
generally
are
subject
to
mandatory
and/or
optional
prepayment.
Because
of
these
mandatory
prepayment
conditions
and
because
there
may
be
significant
economic
incentives
for
the
Borrower
to
repay,
prepayments
of
senior
floating
rate
interests
may
occur.
As
a
result,
the
actual
remaining
maturity
of
senior
floating
rate
interests
may
be
substantially
less
than
stated
maturities
shown
in
the
schedules
of
investments.
In
connection
with
the
senior
floating
rate
interests,
the
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
applicable.
As
of
December
31,
2019
,
the
commitments
were
as
follows
(amounts
in
thousands):
Swap
Agreements.
Core
Plus
Bond Account
entered
into
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
Market
Value
Collateral
Value
Core
Plus
Bond
Account
$
1,082
$
1,123
Diversified
International
Account
—
—
Equity
Income
Account
8
9
Government
&
High
Quality
Bond
Account
2,454
2,514
LargeCap
Growth
Account
I
1,009
1,023
MidCap
Account
1,812
1,850
Short-Term
Income
Account
300
309
SmallCap
Account
8,924
9,126
Unfunded
Loan
Commitment
Unrealized
gain/loss
Core
Plus
Bond
Account
$
5
$
–
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
44
may
be
identified
as
collateral
in
accordance
with
the
terms
of
the
respective
swap
agreements
to
provide
assets
of
value
and
recourse
in
the
event
of
default
or
bankruptcy/insolvency.
Swap
agreements
are
valued
through
a
pricing
service
or
using
procedures
established
and
periodically
reviewed
by
the
Fund’s
Board
of
Directors.
Centrally
cleared
swaps
are
valued
using
the
last
traded
price
from
the
preliminary
trading
exchange.
OTC
swaps
are
modeled
taking
into
account
the
counterparties’
creditworthiness
and
using
a
series
of
techniques,
including
simulation
models.
Changes
in
value
are
recorded
as
unrealized
gain
or
loss.
These
unrealized
gains
or
losses
are
included
as
a
component
of
total
distributable
earnings
(accumulated
loss)
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
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
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
45
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,
2019
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.
Underlying
Funds.
The
performance
and
risks
of
each
of
the
SAM
Portfolios
(singly,
a
“fund
of
funds”)
directly
corresponds
to
the
performance
and
risks
of
the
Underlying
Funds
in
which
the
fund
of
funds
invests.
By
investing
in
many
Underlying
Funds,
a
fund
of
funds
has
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.
Shareholder
reports
for
the
Underlying
Funds
can
be
found
online
at
www.principalfunds.com.
As
of
December
31,
2019
,
series
of
the
Fund
owned
the
following
percentages,
in
the
aggregate,
of
the
outstanding
shares
of
the
Accounts
listed
below:
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.
Account
Total
Percentage
of
Outstanding
Shares
Owned
Equity
Income
Account
31.70%
Government
&
High
Quality
Bond
Account
41.77
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
46
Government
related
guarantors
(those
not
backed
by
the
full
faith
and
credit
of
the U.S.
Government)
include
the FNMA
and
the
Federal
Home
Loan
Mortgage
Corporation
(“FHLMC”).
The
FNMA
is
a
government
sponsored
corporation,
the
common
stock
of
which
is
owned
entirely
by
private
stockholders.
The
FNMA
purchases
conventional
residential
mortgages
from
a
list
of
approved
seller/servicers
which
include
state
and
federally
chartered
savings
and
loan
associations,
mutual
savings
banks,
commercial
banks,
credit
unions,
and
mortgage
bankers.
Pass-through
securities
issued
by
the
FNMA
are
guaranteed
as
to
the
timely
payment
of
principal
and
interest
by
the
FNMA,
but
are
not
backed
by
the
full
faith
and
credit
of
the
U.S.
Government.
The
FHLMC
issues
participation
certificates,
which
are
pass-through
securities,
each
representing
an
undivided
interest
in
a
pool
of
residential
mortgages.
The
FHLMC
guarantees
the
timely
payment
of
interest
and
ultimate
collection
of
principal,
but
participation
certificates
are
not
backed
by
the
full
faith
and
credit
of
the
U.S.
Government.
Derivatives.
The
following
tables
provide
information
about
where
in
the
statements
of
assets
and
liabilities
and
statements
of
operations
information
about
derivatives
can
be
found
(amounts
in
thousands):
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
Core
Plus
Bond
Account
and
Government
&
High
Quality
Bond
Account.
The
notional
values
of
the
futures
contracts
will
vary
in
accordance
with
changing
duration
of
these
funds.
Asset
Derivatives
December
31,
2019
Liability
Derivatives
December
31,
2019
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
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
19
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
81
*
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
185
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
LargeCap
Growth
Account
I
Equity
contracts
Receivables,
Total
distributable
earnings
(accumulated
loss)
$
11
*
Payables,
Total
distributable
earnings
(accumulated
loss)
$
—
*
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.
Derivatives
not
accounted
for
as
hedging
instruments
Location
of
Gain
or
(Loss)
on
Derivatives
Recognized
in
Statement
of
Operations
Net
Realized
Gain
or
(Loss)
on
Derivatives
Recognized
in
Statement
of
Operations
Net
Change
in
Unrealized
Appreciation/
(Depreciation)
of
Derivatives
Recognized
in
Statement
of Operations
Core
Plus
Bond
Account
Credit
contracts
Net
realized
gain
(loss)
from
Swap
agreements/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Swap
agreements
$
(768)
$
(207)
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
616
$
(381)
Total
$
(152)
$
(588)
Government
&
High
Quality
Bond
Account
Interest
rate
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
271
$
185
LargeCap
Growth
Account
I
Equity
contracts
Net
realized
gain
(loss)
from
Futures
contracts/
Net
change
in
unrealized
appreciation/
(depreciation)
of
Futures
contracts
$
461
$
13
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
47
The
following
table
includes
a
summary
of
the
average
quarterly
outstanding
notional
by
derivative
instrument
type
for
the year
ended
December
31,
2019 (amounts
in
thousands):
4.
Fair
Valuation
Fair
value
is
defined
as
the
price
that
the Accounts
would
receive
upon
selling
a
security
or
transferring
a
liability in
a
timely
transaction
to
an
independent
buyer
in
the
principal
or
most
advantageous
market
of
the
security
at
the
measurement
date.
In
determining
fair
value,
the 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 are
generally 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
Contract
Type
Derivative
Type
Average
Notional
Core
Plus
Bond
Account
Credit
Contracts
Exchange
Cleared
Credit
Default
Swaps
–
Buy
Protection
$
6,550
Interest
Rate
Contracts
Futures
-
Long
6,579
Futures
-
Short
9,549
Government
&
High
Quality
Bond
Account
Interest
Rate
Contracts
Futures
-
Short
8,362
LargeCap
Growth
Account
I
Equity
Contracts
Futures
-
Long
3,064
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
48
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
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,
2019
in
valuing
the
Accounts'
securities
carried
at
value
(amounts
in
thousands):
Account
und
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Core
Plus
Bond
Account
Bonds*
$
—
$
145,973
$
—
$
145,973
Investment
Companies
16,605
—
—
16,605
Preferred
Stocks
Consumer,
Non-cyclical
—
—
5
5
Senior
Floating
Rate
Interests*
—
2,317
—
2,317
U.S.
Government
&
Government
Agency
Obligations*
—
103,902
—
103,902
Total
investments
in
securities
$
16,605
$
252,192
$
5
$
268,802
Assets
Interest
Rate
Contracts
Futures**
19
—
—
19
Liabilities
Interest
Rate
Contracts
Futures**
(81)
—
—
(81)
Diversified
International
Account
Common
Stocks
Basic
Materials
2,516
7,701
—
10,217
Communications
6,295
15,178
—
21,473
Consumer,
Cyclical
4,444
40,563
—
45,007
Consumer,
Non-cyclical
1,812
40,746
—
42,558
Energy
7,309
10,643
—
17,952
Financial
16,894
50,784
—
67,678
Industrial
4,160
19,224
—
23,384
Technology
2,929
25,040
—
27,969
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
49
Account
und
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
Diversified
International
Account
Utilities
$
—
$
6,443
$
—
$
6,443
Investment
Companies
2,370
—
—
2,370
Preferred
Stocks
1,110
—
—
1,110
Total
investments
in
securities
$
49,839
$
216,322
$
—
$
266,161
Equity
Income
Account
Common
Stocks*
757,246
—
—
757,246
Investment
Companies
14,857
—
—
14,857
Total
investments
in
securities
$
772,103
$
—
$
—
$
772,103
Government
&
High
Quality
Bond
Account
Bonds*
—
67,340
—
67,340
Investment
Companies
9,160
—
—
9,160
U.S.
Government
&
Government
Agency
Obligations*
—
168,35
8
—
168,35
8
Total
investments
in
securities
$
9,160
$
235,69
8
$
—
$
244,85
8
Assets
Interest
Rate
Contracts
Futures**
185
—
—
185
LargeCap
Growth
Account
I
Common
Stocks
Basic
Materials
8,595
—
—
8,595
Communications
106,013
—
—
106,013
Consumer,
Cyclical
32,548
—
—
32,548
Consumer,
Non-cyclical
134,438
—
—
134,438
Energy
1,475
—
—
1,475
Financial
37,610
—
—
37,610
Industrial
44,838
—
—
44,838
Technology
121,307
90
—
121,397
Utilities
4,720
—
—
4,720
Convertible
Preferred
Stocks
Communications
—
—
631
631
Investment
Companies
6,558
—
—
6,558
Preferred
Stocks
Communications
—
119
—
119
Consumer,
Cyclical
—
657
—
657
Technology
—
209
177
386
Total
investments
in
securities
$
498,102
$
1,075
$
808
$
499,985
Assets
Equity
Contracts
Futures**
11
—
—
$
11
MidCap
Account
Common
Stocks
Basic
Materials
4,177
—
—
4,177
Communications
67,320
—
—
67,320
Consumer,
Cyclical
134,831
—
—
134,831
Consumer,
Non-cyclical
70,628
147
—
70,775
Financial
170,739
—
—
170,739
Industrial
78,697
—
—
78,697
Technology
67,464
—
—
67,464
Utilities
12,320
—
—
12,320
Investment
Companies
2,102
—
—
2,102
Total
investments
in
securities
$
608,278
$
147
$
—
$
608,425
Principal
Capital
Appreciation
Account
Common
Stocks*
154,351
—
—
154,351
Investment
Companies
2,945
—
—
2,945
Total
investments
in
securities
$
157,296
$
—
$
—
$
157,296
Real
Estate
Securities
Account
Common
Stocks*
160,191
—
—
160,191
Investment
Companies
1,13
0
—
—
1,13
0
Total
investments
in
securities
$
161,32
1
$
—
$
—
$
161,32
1
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
50
*For
additional
detail
regarding
sector
classifications,
please
see
the
schedules
of
investments.
**Futures
are
presented
at
the
unrealized
appreciation/(depreciation)
of
the
instrument.
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.
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:
Account
und
Level
1
-
Quoted
Prices
Level
2
-
Other
Significant
Observable
Inputs
Level
3
-
Significant
Unobservable
Inputs
Totals
(Level
1,2,3)
SAM
Balanced
Portfolio
Investment
Companies
$
698,192
$
—
$
—
$
698,192
Total
investments
in
securities
$
698,192
$
—
$
—
$
698,192
SAM
Conservative
Balanced
Portfolio
Investment
Companies
189,384
—
—
189,384
Total
investments
in
securities
$
189,384
$
—
$
—
$
189,384
SAM
Conservative
Growth
Portfolio
Investment
Companies
356,53
4
—
—
356,53
4
Total
investments
in
securities
$
356,53
4
$
—
$
—
$
356,53
4
SAM
Flexible
Income
Portfolio
Investment
Companies
188,444
—
—
188,444
Total
investments
in
securities
$
188,444
$
—
$
—
$
188,444
SAM
Strategic
Growth
Portfolio
Investment
Companies
315,191
—
—
315,191
Total
investments
in
securities
$
315,191
$
—
$
—
$
315,191
Short-Term
Income
Account
Bonds*
—
118,831
—
118,831
Investment
Companies
4,753
—
—
4,753
U.S.
Government
&
Government
Agency
Obligations*
—
5,706
—
5,706
Total
investments
in
securities
$
4,753
$
124,537
$
—
$
129,290
SmallCap
Account
Common
Stocks*
188,262
—
—
188,262
Investment
Companies
12,294
—
—
12,294
Total
investments
in
securities
$
200,556
$
—
$
—
$
200,556
Net
Assets
of
Account
(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
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%
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
51
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
expenses
borne
by
the
Manager
are
subject
to
reimbursement
by
the Accounts
through
the
fiscal
year
end,
provided
no
reimbursement
will
be
made
if
it
would
result
in
the
Accounts
exceeding
the
total
operating
expense
limits. Any
amounts
outstanding
at
the
end
of
the
year
are
shown
as
an
expense
reimbursement
from
Manager
or
expense
reimbursement
to
Manager
on
the
statements
of
assets
and
liabilities.
The
operating
expense
limits,
which
expired
April
30,
2019, were
as
follows:
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:
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
expense
limits are
as
follows:
*Prior
to
June
10,
2019,
there
was
no
contractual
limit.
The
Manager
has
contractually
agreed
to
reduce
Short-Term
Income
Account’s
expenses
by
.01%
through
the
period
ended
April
30,
2020.
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
Net
Assets
of
Account
(in
millions)
First
$200
Next
$300
Over
$500
Short-Term
Income
Account
.50%
.45%
.40%
Net
Assets
of
Account
(in
millions)
First
$500
Over
$500
Principal
Capital
Appreciation
Account
.625%
.50%
Net
Assets
of
Account
(in
billions)
First
$2
Over
$2
Government
&
High
Quality
Bond
Account
.50%
.45%
Period
from
January
1,
2019
through
April
30,
2019
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
Period
from
January
1,
2019
through
December
31,
2019
Expiration
LargeCap
Growth
Account
I
.016%
April
30,
2020
Real
Estate
Securities
Account
.020
April
30,
2020
Period
from
June
10,
2019
through
December
31,
2019
Class
1
Class
2
Expiration
LargeCap
Growth
Account
I
.69%*
N/A
April
30,
2021
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
52
Manager),
the
principal
distributor
of
the
Accounts.
A
portion
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.
At
December
31,
2019,
the
Manager,
Principal National
Life
Insurance
Company
(an
affiliate
of
the
Manager), 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):
6.
Capital
Share
Transactions
The
following
table
reflects
the
conversion
of
Class 2
shares
into
Class 1
shares
(reflected
in
the
statements
of
changes
in
net
assets
as
Class 2
shares
and
dollars
redeemed
and
Class 1
dollars
sold)
for
the year ended December
31,
2019
(amounts
in
thousands).
7.
Investment
Transactions
For
the year ended
December
31,
2019,
the
cost
of
investment
securities
purchased
and
proceeds
from
investment
securities
sold
(not
including
short-term
investments,
return
of
capital, and
U.S.
government
securities)
by
the Accounts
were
as
follows
(amounts
in
thousands):
Class
1
Class
2
Core
Plus
Bond
Account
21,420
N/A
Diversified
International
Account
16,770
N/A
Equity
Income
Account
13,465
274
Government
&
High
Quality
Bond
Account
13,958
N/A
LargeCap
Growth
Account
I
13,082
N/A
MidCap
Account
9,631
N/A
Principal
Capital
Appreciation
Account
4,008
174
Real
Estate
Securities
Account
7,215
283
SAM
Balanced
Portfolio
33,876
1,474
SAM
Conservative
Balanced
Portfolio
13,166
742
SAM
Conservative
Growth
Portfolio
9,258
798
SAM
Flexible
Income
Portfolio
12,004
1,354
SAM
Strategic
Growth
Portfolio
7,316
456
Short-Term
Income
Account
50,051
N/A
SmallCap
Account
11,789
161
Shares
Dollars
Core
Plus
Bond
Account
129
$
1,465
Diversified
International
Account
147
2,256
Government
&
High-Quality
Bond
Account
274
2,691
LargeCap
Growth
Account
I
145
5,163
Short-Term
Income
Account
1,570
4,045
Purchases
Sales
Core
Plus
Bond
Account
$
314,001
$
390,801
Diversified
International
Account
109,529
125,549
Equity
Income
Account
127,487
187,915
Government
&
High
Quality
Bond
Account
44,384
35,508
LargeCap
Growth
Account
I
124,048
149,167
MidCap
Account
60,288
137,847
Principal
Capital
Appreciation
Account
43,488
62,366
Real
Estate
Securities
Account
30,114
43,179
SAM
Balanced
Portfolio
158,511
231,169
SAM
Conservative
Balanced
Portfolio
57,00
7
63,78
6
SAM
Conservative
Growth
Portfolio
54,181
66,602
SAM
Flexible
Income
Portfolio
69,2
61
79,8
12
SAM
Strategic
Growth
Portfolio
61,004
58,371
Short-Term
Income
Account
65,761
96,500
SmallCap
Account
63,560
83,999
5.
Management
Agreement
and
Transactions
with
Affiliates
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
53
For
the year
ended
December
31,
2019,
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):
8.
Federal
Tax
Information
Distributions
to
Shareholders.
The
federal
income
tax
character
of
distributions
paid
for
the years
ended December
31,
2019 and
December
31,
2018 were
as
follows
(amounts
in
thousands):
*The
Accounts
designate
these
distributions
as
long-term
capital
gain
dividends
per
Internal
Revenue
Code
Sec.
852
(b)(3)(C)
in
the
20-percent
group
(which
may
be
taxed
at
a
20-percent
rate,
a
15-percent
rate
or
a
0-percent
rate,
depending
on
the
shareholder’s
taxable
income).
^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,
2019,
the
components
of
total
distributable
earnings
(accumulated
loss)
on
a
federal
tax
basis
were
as
follows
(amounts
in
thousands):
Purchases
Sales
Core
Plus
Bond
Account
$
142,038
$
141,438
Government
&
High
Quality
Bond
Account
8,139
14,324
Short-Term
Income
Account
6,820
5,777
Ordinary
Income
Long-Term
Capital
Gain*
Section
1250
Gain^
2019
2018
2019
2018
2019
2018
Core
Plus
Bond
Account
$
10,172
$
9,636
$
—
$
—
$
—
$
—
Diversified
International
Account
4,159
6,007
12,521
—
—
—
Equity
Income
Account
16,637
13,448
16,586
33,719
—
—
Government
&
High
Quality
Bond
Account
6,457
8,671
—
—
—
—
LargeCap
Growth
Account
I
230
452
34,567
23,404
—
—
MidCap
Account
1,707
1,796
79,894
72,238
—
—
Principal
Capital
Appreciation
Account
2,602
1,753
13,127
8,213
—
—
Real
Estate
Securities
Account
3,501
2,980
9,349
11,
385
424
222
SAM
Balanced
Portfolio
17,364
24,236
24,099
34,263
—
—
SAM
Conservative
Balanced
Portfolio
5,316
6,540
3,638
6,843
—
—
SAM
Conservative
Growth
Portfolio
5,992
10,266
15,423
15,434
—
—
SAM
Flexible
Income
Portfolio
6,506
8,176
5,219
4,660
—
—
SAM
Strategic
Growth
Portfolio
4,270
7,336
15,098
14,491
—
—
Short-Term
Income
Account
3,392
3,321
—
—
—
—
SmallCap
Account
6,293
1,441
23,429
12,058
—
—
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Accumulated
Losses
Net
Unrealized
Appreciation
(Depreciation)
Other
Temporary
Differences
*
Total
Accumulated
Earnings
(Deficit)
Core
Plus
Bond
Account
$
9,502
$
—
$
(3,611
)
$
5,284
$
10
$
11,185
Diversified
International
Account
6,492
—
(272
)
47,862
—
54,082
Equity
Income
Account
16,244
19,472
—
326,401
—
362,117
Government
&
High
Quality
Bond
Account
5,986
—
(9,021
)
1,107
(32
)
(1,960
)
LargeCap
Growth
Account
I
3,033
29,010
—
167,090
—
199,133
MidCap
Account
3,538
53,798
—
231,016
—
288,352
Principal
Capital
Appreciation
Account
2,352
6,711
—
70,749
—
79,812
Real
Estate
Securities
Account
2,828^
7,881
—
44,053
—
54,762
SAM
Balanced
Portfolio
14,661
19,995
—
132,710
—
167,366
SAM
Conservative
Balanced
Portfolio
4,482
3,128
—
22,888
—
30,498
SAM
Conservative
Growth
Portfolio
6,331
5,240
—
68,824
—
80,395
SAM
Flexible
Income
Portfolio
5,110
3,760
—
15,026
—
23,896
SAM
Strategic
Growth
Portfolio
5,533
7,048
—
49,410
—
61,991
7.
Investment
Transactions
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
54
*Represents
book-to-tax
accounting
differences.
^Undistributed
Ordinary
Income
reported
includes
$257
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,
2019,
the Accounts had
approximate
net
capital
loss
carryforwards
as
follows
(amounts
in
thousands):
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.
For
the
year
ended December
31,
2019,
the
following
accounts
had
utilized
capital
loss
carryforwards
as
follows
(amounts
in
thousands):
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,
2019,
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
gain
on
investments
or
from
tax
return
of
capital
depending
on
the
type
of
book
and
tax
differences
that
exist.
For
the
year
ended
December
31,
2019,
the
Accounts
recorded
reclassifications
as
follows
(amounts
in
thousands):
Federal
Income
Tax
Basis.
At
December
31,
2019, the
net
federal
income
tax
unrealized
appreciation
(depreciation)
and
federal
tax
cost
of
investments
held
by
the
Accounts
were
as
follows
(amounts
in
thousands):
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Accumulated
Losses
Net
Unrealized
Appreciation
(Depreciation)
Other
Temporary
Differences
*
Total
Accumulated
Earnings
(Deficit)
Short-Term
Income
Account
$
3,165
$
—
$
(656
)
$
1,600
$
(6
)
$
4,103
SmallCap
Account
999
12,319
—
25,091
—
38,409
Short-Term
Long-Term
Total
Core
Plus
Bond
Account
$
157
$
3,454
$
3,611
Diversified
International
Account
272
—
272
Government
&
High
Quality
Bond
Account
515
8,506
9,021
Short-Term
Income
Account
—
656
656
Utilized
Core
Plus
Bond
Account
$
3,194
SAM
Flexible
Income
Portfolio
4
Short-Term
Income
Account
333
Total
Distributable
Earnings
(Accumulated
Loss)
Capital
Shares
and
Additional
Paid-in-Capital
Equity
Income
Account
$
(4,802
)
$
4,802
LargeCap
Growth
Account
I
(6,036
)
6,036
MidCap
Account
(11,336
)
11,336
Principal
Capital
Appreciation
Account
(2,189
)
2,189
Real
Estate
Securities
Account
(2,323
)
2,323
SAM
Flexible
Income
Portfolio
(4
)
4
Unrealized
Appreciation
Unrealized
(Depreciation)
Net
Unrealized
Appreciation/
(Depreciation)
Cost
for
Federal
Income
Tax
Purposes
Core
Plus
Bond
Account
$
8,900
$
(3,616)
$
5,284
$
263,456
Diversified
International
Account
52,398
(4,520)
47,878
218,283
Equity
Income
Account
334,776
(8,375)
326,401
445,702
Government
&
High
Quality
Bond
Account
5,283
(4,176)
1,107
243,936
LargeCap
Growth
Account
I
171,553
(4,462)
167,091
332,905
MidCap
Account
239,307
(8,291)
231,016
377,409
8.
Federal
Tax
Information
(continued)
Notes
to
Financial
Statements
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
55
9.
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.
Unrealized
Appreciation
Unrealized
(Depreciation)
Net
Unrealized
Appreciation/
(Depreciation)
Cost
for
Federal
Income
Tax
Purposes
Principal
Capital
Appreciation
Account
$
72,190
$
(1,441)
$
70,749
$
86,547
Real
Estate
Securities
Account
45,200
(1,147)
44,053
117,268
SAM
Balanced
Portfolio
134,901
(2,192)
132,709
565,483
SAM
Conservative
Balanced
Portfolio
24,438
(1,550)
22,888
166,496
SAM
Conservative
Growth
Portfolio
69,884
(1,060)
68,824
287,710
SAM
Flexible
Income
Portfolio
16,846
(1,820)
15,026
173,418
SAM
Strategic
Growth
Portfolio
50,957
(1,548)
49,409
265,782
Short-Term
Income
Account
1,981
(382)
1,599
127,691
SmallCap
Account
41,597
(16,506)
25,091
175,465
8.
Federal
Tax
Information
(continued)
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
56
INVESTMENT
COMPANIES
-
6.57%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
1.52%
SPDR
Bloomberg
Barclays
High
Yield
Bond
ETF
35,000
$
3,834
Money
Market
Funds
-
5.05%
BlackRock
Liquidity
FedFund
1.53%
(a),(b)
1,123,094
1,123
Principal
Government
Money
Market
Fund
1.41%
(a),(c)
11,647,755
11,648
$
12,771
TOTAL
INVESTMENT
COMPANIES
$
16,605
PREFERRED
STOCKS
-
0.00%
Shares
Held
Value
(000's)
Agriculture
-
0.00%
Pinnacle
Operating
Corp
0.00%
(d),(e),(f)
81,952
$
5
TOTAL
PREFERRED
STOCKS
$
5
BONDS
-
57.72%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
1.80%
Air
2
US
8.63%,
10/01/2020
(g)
$
1
$
1
Boeing
Co/The
2.70%,
02/01/2027
540
548
2.80%,
03/01/2024
300
307
3.10%,
05/01/2026
190
196
3.20%,
03/01/2029
200
209
3.50%,
03/01/2039
65
67
3.63%,
03/01/2048
155
160
3.75%,
02/01/2050
180
191
3.90%,
05/01/2049
75
81
Bombardier
Inc
6.13%,
01/15/2023
(g)
120
123
7.50%,
03/15/2025
(g)
190
196
7.88%,
04/15/2027
(g)
45
46
Lockheed
Martin
Corp
2.90%,
03/01/2025
360
374
4.09%,
09/15/2052
120
141
SSL
Robotics
LLC
9.75%,
12/31/2023
(g)
65
71
TransDigm
Inc
6.25%,
03/15/2026
(g)
80
87
7.50%,
03/15/2027
165
180
Triumph
Group
Inc
5.25%,
06/01/2022
55
55
6.25%,
09/15/2024
(g)
20
21
7.75%,
08/15/2025
210
219
United
Technologies
Corp
3.10%,
06/01/2022
65
67
3.95%,
08/16/2025
390
425
4.13%,
11/16/2028
230
259
4.45%,
11/16/2038
115
136
4.50%,
06/01/2042
205
246
4.63%,
11/16/2048
80
100
5.40%,
05/01/2035
40
51
$
4,557
Agriculture
-
1.04%
Altria
Group
Inc
4.00%,
01/31/2024
235
249
4.50%,
05/02/2043
5
5
5.80%,
02/14/2039
85
100
5.95%,
02/14/2049
210
255
BAT
Capital
Corp
2.50%,
08/14/2020
200
200
3
Month
USD
LIBOR
+
0.59%
2.76%,
08/15/2022
395
401
3.22%,
08/15/2024
170
174
JBS
Investments
II
GmbH
7.00%,
01/15/2026
(g)
200
218
Pinnacle
Operating
Corp
9.00%,
05/15/2023
(g)
118
43
Reynolds
American
Inc
5.70%,
08/15/2035
165
192
5.85%,
08/15/2045
45
52
6.88%,
05/01/2020
580
589
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Agriculture
(continued)
Reynolds
American
Inc
(continued)
7.00%,
08/04/2041
$
120
$
147
$
2,625
Airlines
-
0.95%
American
Airlines
2013-2
Class
A
Pass
Through
Trust
4.95%,
07/15/2024
549
572
American
Airlines
2014-1
Class
A
Pass
Through
Trust
3.70%,
04/01/2028
120
126
American
Airlines
2015-1
Class
A
Pass
Through
Trust
3.38%,
11/01/2028
23
24
American
Airlines
2016-3
Class
A
Pass
Through
Trust
3.25%,
04/15/2030
201
205
Continental
Airlines
2007-1
Class
A
Pass
Through
Trust
5.98%,
10/19/2023
91
95
Continental
Airlines
2012-1
Class
A
Pass
Through
Trust
4.15%,
10/11/2025
316
332
JetBlue
2019-1
Class
AA
Pass
Through
Trust
2.75%,
11/15/2033
135
137
United
Airlines
2014-2
Class
A
Pass
Through
Trust
3.75%,
03/03/2028
232
245
United
Airlines
2018-1
Class
A
Pass
Through
Trust
3.70%,
09/01/2031
196
202
United
Airlines
2018-1
Class
AA
Pass
Through
Trust
3.50%,
09/01/2031
192
197
United
Airlines
2019-2
Class
AA
Pass
Through
Trust
2.70%,
11/01/2033
160
161
US
Airways
2013-1
Class
A
Pass
Through
Trust
3.95%,
05/15/2027
98
103
$
2,399
Automobile
Asset
Backed
Securities
-
1.44%
Americredit
Automobile
Receivables
Trust
2018-2
2.86%,
11/18/2021
292
292
Carmax
Auto
Owner
Trust
2018-4
1.94%,
02/15/2022
1,078
1,078
1.00
x
1
Month
USD
LIBOR
+
0.20%
Drive
Auto
Receivables
Trust
2019-1
2.13%,
09/15/2021
7
7
1.00
x
1
Month
USD
LIBOR
+
0.39%
Ford
Credit
Auto
Lease
Trust
2019-B
2.28%,
02/15/2022
350
351
Santander
Drive
Auto
Receivables
Trust
2019-1
2.01%,
01/18/2022
658
658
1.00
x
1
Month
USD
LIBOR
+
0.27%
Santander
Retail
Auto
Lease
Trust
2019-A
2.72%,
01/20/2022
(g)
911
916
World
Omni
Auto
Receivables
Trust
2019-A
3.02%,
04/15/2022
339
341
$
3,643
Automobile
Floor
Plan
Asset
Backed
Securities
-
1.54%
GMF
Floorplan
Owner
Revolving
Trust
2.06%,
09/15/2022
(g)
2,500
2,501
1.00
x
1
Month
USD
LIBOR
+
0.32%
Nissan
Master
Owner
Trust
Receivables
2.17%,
11/15/2023
1,400
1,402
1.00
x
1
Month
USD
LIBOR
+
0.43%
$
3,903
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
57
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Manufacturers
-
0.54%
Daimler
Finance
North
America
LLC
2.70%,
08/03/2020
(g)
$
450
$
452
General
Motors
Co
6.25%,
10/02/2043
30
34
6.60%,
04/01/2036
275
324
General
Motors
Financial
Co
Inc
3.45%,
01/14/2022
365
373
Navistar
International
Corp
6.63%,
11/01/2025
(g)
175
178
$
1,361
Banks
-
7.34%
Banco
de
Credito
del
Peru
2.70%,
01/11/2025
(g)
100
99
Banco
Internacional
del
Peru
SAA
Interbank
3.25%,
10/04/2026
(g)
150
150
Bank
of
America
Corp
2.88%,
10/22/2030
(h)
385
388
3
Month
USD
LIBOR
+
0.01%
3.19%,
07/23/2030
(h)
165
171
3
Month
USD
LIBOR
+
1.18%
3.46%,
03/15/2025
(h)
135
141
3
Month
USD
LIBOR
+
0.97%
3.50%,
05/17/2022
(h)
100
102
3
Month
USD
LIBOR
+
0.63%
3.97%,
02/07/2030
(h)
525
576
3
Month
USD
LIBOR
+
1.21%
4.10%,
07/24/2023
180
192
4.20%,
08/26/2024
700
752
4.25%,
10/22/2026
150
164
Barclays
PLC
7.75%,
12/31/2049
(h),(
i
)
200
218
USD
Swap
Semi-Annual
5
Year
+
4.84%
CIT
Group
Inc
4.13%,
03/09/2021
50
51
5.00%,
08/15/2022
120
127
5.80%,
12/31/2049
(h),(
i
)
95
98
3
Month
USD
LIBOR
+
3.97%
Citigroup
Inc
3.52%,
10/27/2028
(h)
175
184
3
Month
USD
LIBOR
+
1.15%
4.65%,
07/23/2048
105
131
Cooperatieve
Rabobank
UA
3.95%,
11/09/2022
300
314
4.75%,
01/15/2020
(g)
490
490
Danske
Bank
A/S
3.00%,
09/20/2022
(g),(h)
400
404
3
Month
USD
LIBOR
+
1.25%
DBS
Group
Holdings
Ltd
4.52%,
12/11/2028
(g),(h)
315
335
USD
Swap
Rate
NY
5
Year
+
1.59%
First
Republic
Bank/CA
2.50%,
06/06/2022
250
252
4.63%,
02/13/2047
500
571
Goldman
Sachs
Group
Inc/The
3.63%,
02/20/2024
535
562
3.85%,
01/26/2027
160
170
5.75%,
01/24/2022
730
784
6.75%,
10/01/2037
300
417
HSBC
Holdings
PLC
2.63%,
11/07/2025
(h)
335
336
3
Month
USD
LIBOR
+
1.14%
3.80%,
03/11/2025
(h)
200
210
3
Month
USD
LIBOR
+
1.21%
4.25%,
03/14/2024
435
462
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
JPMorgan
Chase
&
Co
3.21%,
04/01/2023
(h)
$
175
$
179
3
Month
USD
LIBOR
+
0.70%
3.96%,
11/15/2048
(h)
20
23
3
Month
USD
LIBOR
+
1.38%
4.35%,
08/15/2021
275
286
4.95%,
06/01/2045
100
127
5.50%,
10/15/2040
260
350
Morgan
Stanley
4.43%,
01/23/2030
(h)
50
57
3
Month
USD
LIBOR
+
1.63%
5.00%,
11/24/2025
210
237
5.55%,
12/31/2049
(h),(
i
)
565
576
3
Month
USD
LIBOR
+
3.81%
5.75%,
01/25/2021
100
104
6.38%,
07/24/2042
120
177
Popular
Inc
6.13%,
09/14/2023
50
54
Royal
Bank
of
Scotland
Group
PLC
4.27%,
03/22/2025
(h)
200
212
3
Month
USD
LIBOR
+
1.76%
5.13%,
05/28/2024
890
964
7.50%,
12/31/2049
(h),(
i
)
425
434
USD
Swap
Semi-Annual
5
Year
+
5.80%
Santander
UK
PLC
5.00%,
11/07/2023
(g)
815
876
Skandinaviska
Enskilda
Banken
AB
5.75%,
12/31/2049
(h),(
i
)
485
488
USD
Swap
Semi-Annual
5
Year
+
3.85%
Svenska
Handelsbanken
AB
3.90%,
11/20/2023
345
370
Synchrony
Bank
3.00%,
06/15/2022
1,125
1,147
Truist
Bank
4.05%,
11/03/2025
140
154
UBS
AG/London
4.50%,
06/26/2048
(g)
200
251
UBS
AG/Stamford
CT
2.35%,
03/26/2020
450
450
UBS
Group
AG
6.88%,
12/31/2049
(h),(
i
)
440
458
USD
Swap
Rate
NY
5
Year
+
5.50%
US
Bancorp
3.00%,
07/30/2029
175
181
Wells
Fargo
&
Co
3.75%,
01/24/2024
335
354
4.40%,
06/14/2046
170
194
Westpac
Banking
Corp
4.11%,
07/24/2034
(h)
85
89
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.00%
4.42%,
07/24/2039
65
71
Zions
Bancorp
NA
3.50%,
08/27/2021
825
844
$
18,558
Beverages
-
0.68%
Anheuser-Busch
Cos
LLC
/
Anheuser-Busch
InBev
Worldwide
Inc
3.65%,
02/01/2026
115
123
4.90%,
02/01/2046
565
670
Anheuser-Busch
InBev
Finance
Inc
3.70%,
02/01/2024
190
201
Anheuser-Busch
InBev
Worldwide
Inc
2.50%,
07/15/2022
27
27
4.75%,
04/15/2058
70
82
5.45%,
01/23/2039
225
283
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
58
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Beverages
(continued)
Constellation
Brands
Inc
2.65%,
11/07/2022
$
255
$
259
4.40%,
11/15/2025
70
77
$
1,722
Biotechnology
-
0.12%
Amgen
Inc
2.20%,
05/11/2020
315
315
Building
Materials
-
0.14%
BMC
East
LLC
5.50%,
10/01/2024
(g)
100
104
Builders
FirstSource
Inc
5.63%,
09/01/2024
(g)
78
81
6.75%,
06/01/2027
(g)
95
104
Norbord
Inc
5.75%,
07/15/2027
(g)
65
68
$
357
Chemicals
-
0.63%
Alpek
SAB
de
CV
4.25%,
09/18/2029
(g)
200
204
Aruba
Investments
Inc
8.75%,
02/15/2023
(g)
203
202
Blue
Cube
Spinco
LLC
9.75%,
10/15/2023
70
75
Braskem
Netherlands
Finance
BV
4.50%,
01/31/2030
(g)
200
199
Consolidated
Energy
Finance
SA
6.50%,
05/15/2026
(g)
165
155
6.88%,
06/15/2025
(g)
150
143
DuPont
de
Nemours
Inc
5.32%,
11/15/2038
165
197
5.42%,
11/15/2048
150
185
NOVA
Chemicals
Corp
5.25%,
08/01/2023
(g)
35
36
SABIC
Capital
II
BV
4.00%,
10/10/2023
(g)
200
211
$
1,607
Commercial
Mortgage
Backed
Securities
-
5.27%
Banc
of
America
Commercial
Mortgage
Trust
2015-UBS7
3.71%,
09/15/2048
500
532
BANK
2017-BNK9
4.03%,
11/15/2054
(j)
500
531
BBCMS
MORTGAGE
TRUST
2017-C1
3.67%,
02/15/2050
500
536
Benchmark
2018-B4
Mortgage
Trust
4.12%,
07/15/2051
(j)
500
555
Benchmark
2019-B15
Mortgage
Trust
3.56%,
12/15/2072
250
257
Citigroup
Commercial
Mortgage
Trust
2015-GC27
3.57%,
02/10/2048
900
936
Citigroup
Commercial
Mortgage
Trust
2015-GC29
4.14%,
04/10/2048
(j)
500
521
Citigroup
Commercial
Mortgage
Trust
2016-GC37
3.58%,
04/10/2049
350
364
Citigroup
Commercial
Mortgage
Trust
2018-B2
4.01%,
03/10/2051
350
385
COMM
2013-CCRE11
Mortgage
Trust
0.93%,
08/10/2050
(j),(k)
5,983
184
COMM
2013-CCRE8
Mortgage
Trust
3.95%,
06/10/2046
(g),(j)
350
363
COMM
2015-PC1
Mortgage
Trust
4.29%,
07/10/2050
(j)
250
268
Credit
Suisse
Commercial
Mortgage
Trust
Series
2006-C5
0.88%,
12/15/2039
(j),(k)
130
1
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
DBUBS
2011-LC2
Mortgage
Trust
4.54%,
07/10/2044
(g)
$
749
$
765
GS
Mortgage
Securities
Trust
2011-GC5
1.33%,
08/10/2044
(g),(j),(k)
9,178
141
GS
Mortgage
Securities
Trust
2012-GCJ7
2.16%,
05/10/2045
(j),(k)
1,692
47
GS
Mortgage
Securities
Trust
2013-GC16
1.03%,
11/10/2046
(j),(k)
1,926
66
GS
Mortgage
Securities
Trust
2013-GCJ12
3.78%,
06/10/2046
(j)
250
257
GS
Mortgage
Securities
Trust
2014-GC26
0.97%,
11/10/2047
(j),(k)
4,281
170
GS
Mortgage
Securities
Trust
2015-GC34
3.51%,
10/10/2048
375
396
GS
Mortgage
Securities
Trust
2015-GS1
3.73%,
11/10/2048
1,000
1,068
GS
Mortgage
Securities
Trust
2019-GC39
3.57%,
05/10/2052
300
322
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2010-C1
5.95%,
06/15/2043
(g)
400
402
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2011-C5
5.42%,
08/15/2046
(g),(j)
350
363
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2012-LC9
1.51%,
12/15/2047
(j),(k)
1,817
63
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2013-C16
0.94%,
12/15/2046
(j),(k)
8,041
244
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2016-JP3
3.14%,
08/15/2049
500
508
JPMBB
Commercial
Mortgage
Securities
Trust
2014-C24
4.41%,
11/15/2047
(j)
500
513
LB-UBS
Commercial
Mortgage
Trust
2007-C1
0.21%,
02/15/2040
(j),(k)
397
—
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2012-C5
1.44%,
08/15/2045
(g),(j),(k)
3,248
95
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C14
1.00%,
02/15/2047
(j),(k)
6,317
172
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2014-C16
1.00%,
06/15/2047
(j),(k)
3,519
118
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2015-C27
3.75%,
12/15/2047
100
107
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust
2016-C30
3.18%,
09/15/2049
500
505
MSBAM
Commercial
Mortgage
Securities
Trust
2012-CKSV
1.06%,
10/15/2030
(g),(j),(k)
3,529
84
UBS
Commercial
Mortgage
Trust
2012-C1
3.40%,
05/10/2045
138
141
UBS-Barclays
Commercial
Mortgage
Trust
2012-C4
1.63%,
12/10/2045
(g),(j),(k)
1,200
44
3.32%,
12/10/2045
(g)
500
510
Wells
Fargo
Commercial
Mortgage
Trust
2015-NXS1
3.66%,
05/15/2048
(j)
700
721
WFRBS
Commercial
Mortgage
Trust
2013-C12
1.22%,
03/15/2048
(g),(j),(k)
2,472
75
$
13,330
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
59
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Services
-
0.62%
Ahern
Rentals
Inc
7.38%,
05/15/2023
(g)
$
145
$
115
DP
World
PLC
6.85%,
07/02/2037
100
131
Global
Payments
Inc
2.65%,
02/15/2025
180
181
GW
B-CR
Security
Corp
9.50%,
11/01/2027
(g)
126
134
PayPal
Holdings
Inc
2.20%,
09/26/2022
265
267
2.65%,
10/01/2026
240
243
Refinitiv
US
Holdings
Inc
6.25%,
05/15/2026
(g)
95
104
8.25%,
11/15/2026
(g)
60
68
Tms
International
Holding
Corp
7.25%,
08/15/2025
(g)
195
176
United
Rentals
North
America
Inc
4.63%,
10/15/2025
75
77
4.88%,
01/15/2028
75
78
$
1,574
Computers
-
1.09%
Apple
Inc
2.20%,
09/11/2029
275
270
2.75%,
01/13/2025
220
227
2.85%,
05/11/2024
365
378
3.35%,
02/09/2027
385
410
Dell
Inc
4.63%,
04/01/2021
(l)
155
159
Dell
International
LLC
/
EMC
Corp
4.42%,
06/15/2021
(g)
365
376
4.90%,
10/01/2026
(g)
370
408
7.13%,
06/15/2024
(g)
330
348
8.35%,
07/15/2046
(g)
125
172
$
2,748
Consumer
Products
-
0.02%
Prestige
Brands
Inc
5.13%,
01/15/2028
(g)
55
58
Credit
Card
Asset
Backed
Securities
-
0.99%
World
Financial
Network
Credit
Card
Master
Trust
2.03%,
04/15/2025
2,500
2,498
Distribution
&
Wholesale
-
0.08%
American
Builders
&
Contractors
Supply
Co
Inc
4.00%,
01/15/2028
(g)
90
91
5.88%,
05/15/2026
(g)
105
112
$
203
Diversified
Financial
Services
-
1.40%
Aircastle
Ltd
5.13%,
03/15/2021
20
21
Ally
Financial
Inc
4.25%,
04/15/2021
30
31
Blackstone
Holdings
Finance
Co
LLC
2.50%,
01/10/2030
(g)
95
94
3.50%,
09/10/2049
(g)
70
69
Brookfield
Finance
Inc
4.00%,
04/01/2024
870
933
4.85%,
03/29/2029
100
114
Credit
Acceptance
Corp
5.13%,
12/31/2024
(g)
30
31
6.63%,
03/15/2026
(g)
285
308
7.38%,
03/15/2023
45
46
GE
Capital
International
Funding
Co
Unlimited
Co
4.42%,
11/15/2035
200
214
Global
Aircraft
Leasing
Co
Ltd
6.50%,
PIK
7.25%,
09/15/2024
(g),(j),(m)
185
193
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
(continued)
Navient
Corp
6.13%,
03/25/2024
$
105
$
114
6.63%,
07/26/2021
165
174
6.75%,
06/15/2026
170
187
Nuveen
Finance
LLC
4.13%,
11/01/2024
(g)
585
636
Springleaf
Finance
Corp
5.63%,
03/15/2023
75
81
6.63%,
01/15/2028
90
102
6.88%,
03/15/2025
175
199
$
3,547
Electric
-
2.90%
Alabama
Power
Co
3.45%,
10/01/2049
160
164
CMS
Energy
Corp
3.00%,
05/15/2026
75
77
4.70%,
03/31/2043
120
135
Commonwealth
Edison
Co
4.00%,
03/01/2049
225
255
Dominion
Energy
Inc
2.58%,
07/01/2020
900
902
3.90%,
10/01/2025
100
107
4.25%,
06/01/2028
220
243
DTE
Electric
Co
3.95%,
03/01/2049
75
86
DTE
Energy
Co
3.40%,
06/15/2029
280
289
Duke
Energy
Florida
LLC
3.80%,
07/15/2028
220
241
Enel
Chile
SA
4.88%,
06/12/2028
105
116
Evergy
Inc
2.90%,
09/15/2029
245
244
Exelon
Corp
3.50%,
06/01/2022
215
221
Fortis
Inc/Canada
3.06%,
10/04/2026
103
105
Georgia
Power
Co
4.30%,
03/15/2043
80
87
Indiantown
Cogeneration
LP
9.77%,
12/15/2020
21
22
MidAmerican
Energy
Co
3.15%,
04/15/2050
120
119
National
Rural
Utilities
Cooperative
Finance
Corp
2.40%,
04/25/2022
180
182
4.75%,
04/30/2043
(h)
125
130
3
Month
USD
LIBOR
+
2.91%
NextEra
Energy
Capital
Holdings
Inc
2.75%,
11/01/2029
280
281
3.50%,
04/01/2029
(l)
300
319
NextEra
Energy
Operating
Partners
LP
4.25%,
07/15/2024
(g)
130
135
Northern
States
Power
Co/MN
2.90%,
03/01/2050
145
139
NRG
Energy
Inc
5.25%,
06/15/2029
(g)
80
87
6.63%,
01/15/2027
110
119
7.25%,
05/15/2026
85
93
NSTAR
Electric
Co
3.25%,
05/15/2029
130
137
Perusahaan
Listrik
Negara
PT
3.88%,
07/17/2029
(g)
200
209
PPL
Electric
Utilities
Corp
3.95%,
06/01/2047
85
95
4.75%,
07/15/2043
90
109
PPL
WEM
Ltd
/
Western
Power
Distribution
Ltd
5.38%,
05/01/2021
(g)
735
757
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
60
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Public
Service
Co
of
Colorado
4.05%,
09/15/2049
$
55
$
63
Southern
California
Edison
Co
4.20%,
03/01/2029
135
149
4.88%,
03/01/2049
160
190
Southern
Co/The
5.50%,
03/15/2057
(h)
50
52
3
Month
USD
LIBOR
+
3.63%
Tucson
Electric
Power
Co
4.85%,
12/01/2048
25
31
Virginia
Electric
&
Power
Co
3.80%,
04/01/2028
180
196
4.60%,
12/01/2048
60
74
Vistra
Operations
Co
LLC
5.50%,
09/01/2026
(g)
100
106
5.63%,
02/15/2027
(g)
55
58
Xcel
Energy
Inc
2.60%,
12/01/2029
205
203
$
7,327
Electrical
Components
&
Equipment
-
0.03%
Energizer
Holdings
Inc
5.50%,
06/15/2025
(g)
65
67
Electronics
-
0.11%
ADT
Security
Corp/The
6.25%,
10/15/2021
45
48
Sensata
Technologies
BV
5.00%,
10/01/2025
(g)
155
168
Sensata
Technologies
Inc
4.38%,
02/15/2030
(g)
55
56
$
272
Engineering
&
Construction
-
0.02%
MasTec
Inc
4.88%,
03/15/2023
60
61
Entertainment
-
0.43%
Boyne
USA
Inc
7.25%,
05/01/2025
(g)
195
212
Caesars
Resort
Collection
LLC
/
CRC
Finco
Inc
5.25%,
10/15/2025
(g)
100
104
CCM
Merger
Inc
6.00%,
03/15/2022
(g)
145
148
Eldorado
Resorts
Inc
6.00%,
04/01/2025
35
37
6.00%,
09/15/2026
185
204
Enterprise
Development
Authority/The
12.00%,
07/15/2024
(g)
140
160
Scientific
Games
International
Inc
7.00%,
05/15/2028
(g)
30
32
7.25%,
11/15/2029
(g)
70
76
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp
5.13%,
10/01/2029
(g)
100
107
$
1,080
Environmental
Control
-
0.37%
Republic
Services
Inc
2.50%,
08/15/2024
155
157
3.55%,
06/01/2022
100
103
Stericycle
Inc
5.38%,
07/15/2024
(g)
75
79
Waste
Connections
Inc
4.25%,
12/01/2028
300
335
Waste
Management
Inc
3.20%,
06/15/2026
255
267
$
941
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Food
-
0.88%
Albertsons
Cos
Inc
/
Safeway
Inc
/
New
Albertsons
LP
/
Albertsons
LLC
4.63%,
01/15/2027
(g)
$
115
$
115
5.88%,
02/15/2028
(g)
90
96
6.63%,
06/15/2024
105
110
Gruma
SAB
de
CV
4.88%,
12/01/2024
(g)
350
379
Ingles
Markets
Inc
5.75%,
06/15/2023
113
115
JBS
USA
LUX
SA
/
JBS
USA
Finance
Inc
5.75%,
06/15/2025
(g)
100
103
JBS
USA
LUX
SA
/
JBS
USA
Food
Co
/
JBS
USA
Finance
Inc
6.50%,
04/15/2029
(g)
45
50
Kraft
Heinz
Foods
Co
3.50%,
06/06/2022
220
227
4.63%,
10/01/2039
(g)
70
73
McCormick
&
Co
Inc/MD
3.15%,
08/15/2024
225
234
Nestle
Holdings
Inc
3.35%,
09/24/2023
(g)
240
251
Post
Holdings
Inc
5.00%,
08/15/2026
(g)
225
238
TreeHouse
Foods
Inc
4.88%,
03/15/2022
30
30
Want
Want
China
Finance
Ltd
2.88%,
04/27/2022
200
201
$
2,222
Gas
-
0.24%
Dominion
Energy
Gas
Holdings
LLC
2.50%,
11/15/2024
125
125
3.00%,
11/15/2029
115
115
Piedmont
Natural
Gas
Co
Inc
3.50%,
06/01/2029
180
192
Southern
Co
Gas
Capital
Corp
4.40%,
05/30/2047
165
183
$
615
Healthcare
-
Products
-
0.59%
Abbott
Laboratories
3.75%,
11/30/2026
170
186
4.90%,
11/30/2046
290
381
Boston
Scientific
Corp
3.45%,
03/01/2024
290
303
4.00%,
03/01/2029
240
266
4.70%,
03/01/2049
190
231
Medtronic
Inc
4.38%,
03/15/2035
106
126
$
1,493
Healthcare
-
Services
-
0.71%
Centene
Corp
4.25%,
12/15/2027
(g)
20
21
4.63%,
12/15/2029
(g)
160
168
4.75%,
05/15/2022
155
158
4.75%,
01/15/2025
(g)
30
31
5.38%,
06/01/2026
(g)
100
106
6.13%,
02/15/2024
60
62
HCA
Healthcare
Inc
6.25%,
02/15/2021
120
125
HCA
Inc
5.88%,
02/01/2029
405
468
Tenet
Healthcare
Corp
4.63%,
07/15/2024
95
97
4.63%,
09/01/2024
(g)
80
84
5.13%,
11/01/2027
(g)
105
111
UnitedHealth
Group
Inc
3.50%,
08/15/2039
140
147
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
61
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Healthcare
-
Services
(continued)
WellCare
Health
Plans
Inc
5.25%,
04/01/2025
$
200
$
208
$
1,786
Home
Builders
-
0.32%
Forestar
Group
Inc
8.00%,
04/15/2024
(g)
220
239
Installed
Building
Products
Inc
5.75%,
02/01/2028
(g)
55
59
KB
Home
7.63%,
05/15/2023
55
62
Lennar
Corp
4.88%,
12/15/2023
80
86
LGI
Homes
Inc
6.88%,
07/15/2026
(g),(l)
200
209
Taylor
Morrison
Communities
Inc
5.75%,
01/15/2028
(g)
55
60
Taylor
Morrison
Communities
Inc
/
Taylor
Morrison
Holdings
II
Inc
5.63%,
03/01/2024
(g)
70
75
TRI
Pointe
Group
Inc
4.88%,
07/01/2021
30
31
$
821
Home
Equity
Asset
Backed
Securities
-
0.08%
Saxon
Asset
Securities
Trust
2004-1
2.81%,
03/25/2035
122
71
1.00
x
1
Month
USD
LIBOR
+
1.70%
Specialty
Underwriting
&
Residential
Finance
Trust
Series
2004-BC1
2.56%,
02/25/2035
123
121
1.00
x
1
Month
USD
LIBOR
+
0.77%
$
192
Insurance
-
1.62%
Acrisure
LLC
/
Acrisure
Finance
Inc
8.13%,
02/15/2024
(g)
95
103
American
International
Group
Inc
3.90%,
04/01/2026
400
430
4.50%,
07/16/2044
420
485
Arch
Capital
Finance
LLC
4.01%,
12/15/2026
125
137
5.03%,
12/15/2046
125
156
Markel
Corp
3.35%,
09/17/2029
305
313
4.30%,
11/01/2047
95
99
PartnerRe
Finance
B
LLC
3.70%,
07/02/2029
200
208
Swiss
Re
Finance
Luxembourg
SA
5.00%,
04/02/2049
(g),(h)
200
223
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.58%
Voya
Financial
Inc
5.65%,
05/15/2053
(h)
335
356
3
Month
USD
LIBOR
+
3.58%
6.13%,
12/31/2049
(h),(
i
)
50
54
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.36%
XLIT
Ltd
4.45%,
03/31/2025
885
964
5.50%,
03/31/2045
450
572
$
4,100
Internet
-
0.25%
Alibaba
Group
Holding
Ltd
3.40%,
12/06/2027
200
208
Baidu
Inc
4.38%,
05/14/2024
200
213
Netflix
Inc
5.38%,
02/01/2021
145
150
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Internet
(continued)
NortonLifeLock
Inc
3.95%,
06/15/2022
$
65
$
67
$
638
Investment
Companies
-
0.12%
Icahn
Enterprises
LP
/
Icahn
Enterprises
Finance
Corp
5.25%,
05/15/2027
(g)
90
92
6.25%,
02/01/2022
60
61
6.25%,
05/15/2026
80
86
6.38%,
12/15/2025
65
68
$
307
Iron
&
Steel
-
0.22%
AK
Steel
Corp
6.38%,
10/15/2025
25
25
7.50%,
07/15/2023
50
52
7.63%,
10/01/2021
95
95
Cleveland-Cliffs
Inc
4.88%,
01/15/2024
(g)
55
56
Steel
Dynamics
Inc
2.80%,
12/15/2024
145
146
3.45%,
04/15/2030
65
66
Vale
Overseas
Ltd
6.88%,
11/21/2036
86
112
$
552
Leisure
Products
&
Services
-
0.02%
NCL
Corp
Ltd
3.63%,
12/15/2024
(g)
40
41
Lodging
-
0.07%
Jack
Ohio
Finance
LLC
/
Jack
Ohio
Finance
1
Corp
6.75%,
11/15/2021
(g)
5
5
MGM
Resorts
International
6.00%,
03/15/2023
60
66
Wynn
Las
Vegas
LLC
/
Wynn
Las
Vegas
Capital
Corp
5.25%,
05/15/2027
(g)
100
106
$
177
Machinery
-
Diversified
-
0.09%
Cloud
Crane
LLC
10.13%,
08/01/2024
(g)
230
242
Media
-
2.62%
Altice
Financing
SA
6.63%,
02/15/2023
(g)
200
204
7.50%,
05/15/2026
(g)
200
215
AMC
Networks
Inc
4.75%,
12/15/2022
30
30
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp
5.13%,
02/15/2023
135
137
5.13%,
05/01/2023
(g)
200
204
5.50%,
05/01/2026
(g)
250
264
Charter
Communications
Operating
LLC
/
Charter
Communications
Operating
Capital
3.58%,
07/23/2020
305
307
4.46%,
07/23/2022
320
336
4.80%,
03/01/2050
215
227
6.48%,
10/23/2045
120
149
Comcast
Corp
3.95%,
10/15/2025
200
218
4.60%,
10/15/2038
280
334
4.60%,
08/15/2045
160
192
4.70%,
10/15/2048
110
136
6.45%,
03/15/2037
200
283
CSC
Holdings
LLC
6.50%,
02/01/2029
(g)
208
232
6.75%,
11/15/2021
40
43
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
62
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Media
(continued)
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co
5.38%,
08/15/2026
(g)
$
75
$
76
6.63%,
08/15/2027
(g),(l)
25
24
DISH
DBS
Corp
5.13%,
05/01/2020
70
71
5.88%,
07/15/2022
100
106
5.88%,
11/15/2024
100
102
Meredith
Corp
6.88%,
02/01/2026
200
208
NBCUniversal
Media
LLC
4.45%,
01/15/2043
145
169
Radiate
Holdco
LLC
/
Radiate
Finance
Inc
6.63%,
02/15/2025
(g)
35
35
Time
Warner
Cable
LLC
4.00%,
09/01/2021
225
230
5.88%,
11/15/2040
135
155
6.55%,
05/01/2037
100
123
UPC
Holding
BV
5.50%,
01/15/2028
(g)
300
304
ViacomCBS
Inc
4.25%,
09/01/2023
510
543
4.38%,
03/15/2043
320
339
Virgin
Media
Finance
PLC
6.00%,
10/15/2024
(g)
200
206
Walt
Disney
Co/The
5.40%,
10/01/2043
80
109
Ziggo
Bond
Co
BV
6.00%,
01/15/2027
(g)
150
158
Ziggo
BV
5.50%,
01/15/2027
(g)
150
159
$
6,628
Metal
Fabrication
&
Hardware
-
0.05%
Advanced
Drainage
Systems
Inc
5.00%,
09/30/2027
(g)
65
67
Park-Ohio
Industries
Inc
6.63%,
04/15/2027
60
61
$
128
Mining
-
0.63%
First
Quantum
Minerals
Ltd
7.00%,
02/15/2021
(g)
8
8
7.50%,
04/01/2025
(g)
200
205
FMG
Resources
August
2006
Pty
Ltd
4.75%,
05/15/2022
(g)
125
129
Glencore
Funding
LLC
3.00%,
10/27/2022
(g)
400
401
Hudbay
Minerals
Inc
7.25%,
01/15/2023
(g)
70
73
7.63%,
01/15/2025
(g)
130
137
IAMGOLD
Corp
7.00%,
04/15/2025
(g)
150
156
Kaiser
Aluminum
Corp
4.63%,
03/01/2028
(g)
55
56
Taseko
Mines
Ltd
8.75%,
06/15/2022
(g)
135
112
Teck
Resources
Ltd
6.13%,
10/01/2035
180
212
6.25%,
07/15/2041
85
97
$
1,586
Miscellaneous
Manufacturers
-
0.39%
General
Electric
Co
2.70%,
10/09/2022
370
375
5.55%,
01/05/2026
180
207
5.88%,
01/14/2038
105
128
6.88%,
01/10/2039
75
100
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Miscellaneous
Manufacturers
(continued)
Parker-Hannifin
Corp
2.70%,
06/14/2024
$
100
$
102
4.00%,
06/14/2049
60
65
$
977
Mortgage
Backed
Securities
-
3.96%
Fannie
Mae
REMIC
Trust
2005-W2
1.99%,
05/25/2035
35
35
1.00
x
1
Month
USD
LIBOR
+
0.20%
Fannie
Mae
REMICS
2.25%,
07/25/2040
81
82
3.00%,
04/25/2022
(k)
190
4
3.00%,
04/25/2027
(k)
211
14
3.50%,
11/25/2027
(k)
144
10
3.50%,
07/25/2028
(k)
275
22
3.50%,
03/25/2031
(k)
315
17
4.21%,
10/25/2046
(k)
1,049
224
(1.00)
x
1
Month
USD
LIBOR
+
6.00%
4.31%,
02/25/2043
(k)
308
54
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.31%,
09/25/2046
(k)
282
51
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.36%,
09/25/2047
(k)
773
161
(1.00)
x
1
Month
USD
LIBOR
+
6.15%
4.71%,
03/25/2022
(k)
16
1
(1.00)
x
1
Month
USD
LIBOR
+
6.50%
Freddie
Mac
REMICS
2.19%,
05/15/2049
1,942
1,942
1.00
x
1
Month
USD
LIBOR
+
0.45%
3.00%,
09/15/2025
(k)
40
—
3.00%,
03/15/2026
(k)
174
5
3.00%,
05/15/2027
(k)
178
10
3.00%,
10/15/2027
(k)
88
6
3.50%,
11/15/2020
(k)
72
1
3.50%,
09/15/2026
(k)
482
36
4.00%,
11/15/2038
(k)
392
16
4.26%,
10/15/2046
(k)
1,970
407
(1.00)
x
1
Month
USD
LIBOR
+
6.00%
Ginnie
Mae
3.74%,
05/20/2042
(k)
1,081
187
(1.00)
x
1
Month
USD
LIBOR
+
5.50%
4.34%,
11/20/2041
(k)
281
59
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.34%,
06/20/2046
(k)
688
131
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.36%,
07/16/2042
(k)
2,371
464
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.36%,
07/16/2043
(k)
666
128
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.38%,
12/20/2043
(k)
337
74
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
4.44%,
09/20/2041
(k)
2,959
420
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.44%,
11/20/2045
(k)
1,808
335
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.44%,
08/20/2047
(k)
1,736
402
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.44%,
09/20/2047
(k)
2,881
538
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.49%,
06/20/2044
(k)
4,433
556
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
4.50%,
04/16/2044
(k)
260
41
4.51%,
08/16/2045
(k)
2,717
535
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
4.89%,
02/20/2042
(k)
180
44
(1.00)
x
1
Month
USD
LIBOR
+
6.65%
4.91%,
04/16/2042
(k)
1,146
256
(1.00)
x
1
Month
USD
LIBOR
+
6.65%
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
63
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Ginnie
Mae
(continued)
4.99%,
11/20/2045
(k)
$
2,401
$
499
(1.00)
x
1
Month
USD
LIBOR
+
6.75%
5.15%,
04/20/2041
(k)
1,399
272
(1.10)
x
1
Month
USD
LIBOR
+
7.10%
HomeBanc
Mortgage
Trust
2005-5
2.13%,
01/25/2036
230
229
1.00
x
1
Month
USD
LIBOR
+
0.34%
JP
Morgan
Mortgage
Trust
2016-2
2.83%,
06/25/2046
(g),(j)
394
395
JP
Morgan
Mortgage
Trust
2016-3
3.50%,
10/25/2046
(g),(j)
331
337
Sequoia
Mortgage
Trust
2016-3
3.50%,
11/25/2046
(g),(j)
927
945
Washington
Mutual
Mortgage
Pass-Through
Certificates
WMALT
Series
2006-AR1
Trust
2.04%,
02/25/2036
73
67
1.00
x
1
Month
USD
LIBOR
+
0.25%
$
10,012
Office
&
Business
Equipment
-
0.02%
Xerox
Corp
4.12%,
03/15/2023
60
62
Oil
&
Gas
-
2.27%
Ascent
Resources
Utica
Holdings
LLC
/
ARU
Finance
Corp
7.00%,
11/01/2026
(g)
100
80
10.00%,
04/01/2022
(g)
148
147
BP
Capital
Markets
America
Inc
3.41%,
02/11/2026
180
192
4.23%,
11/06/2028
80
90
Canadian
Natural
Resources
Ltd
4.95%,
06/01/2047
75
91
Chesapeake
Oil
Op/Fin
Escrow
Shares
0.00%,
11/15/2019
(d),(e),(f)
90
—
Continental
Resources
Inc/OK
3.80%,
06/01/2024
605
626
4.38%,
01/15/2028
115
122
4.90%,
06/01/2044
55
58
Ecopetrol
SA
7.38%,
09/18/2043
65
88
EP
Energy
LLC
/
Everest
Acquisition
Finance
Inc
0.00%,
05/15/2026
(d),(g)
245
175
Extraction
Oil
&
Gas
Inc
7.38%,
05/15/2024
(g)
75
47
Exxon
Mobil
Corp
2.02%,
08/16/2024
135
136
2.44%,
08/16/2029
105
106
3.00%,
08/16/2039
75
75
3.10%,
08/16/2049
30
30
Gulfport
Energy
Corp
6.38%,
05/15/2025
210
133
Marathon
Oil
Corp
4.40%,
07/15/2027
175
190
6.60%,
10/01/2037
225
287
Nabors
Industries
Inc
5.00%,
09/15/2020
24
24
5.75%,
02/01/2025
220
198
Oasis
Petroleum
Inc
6.25%,
05/01/2026
(g)
125
104
6.88%,
01/15/2023
(l)
90
88
Occidental
Petroleum
Corp
2.60%,
08/13/2021
295
297
2.90%,
08/15/2024
120
122
3.20%,
08/15/2026
110
111
3.50%,
08/15/2029
95
97
4.40%,
08/15/2049
75
77
Petrobras
Global
Finance
BV
5.09%,
01/15/2030
(g)
301
323
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Oil
&
Gas
(continued)
Petroleos
Mexicanos
6.50%,
03/13/2027
$
210
$
223
6.84%,
01/23/2030
(g)
105
112
Saudi
Arabian
Oil
Co
4.25%,
04/16/2039
(g)
250
268
Shell
International
Finance
BV
3.13%,
11/07/2049
55
54
Sinopec
Group
Overseas
Development
2017
Ltd
2.50%,
09/13/2022
(g)
325
326
SM
Energy
Co
6.63%,
01/15/2027
(l)
80
79
Southwestern
Energy
Co
7.75%,
10/01/2027
(l)
185
171
Sunoco
LP
/
Sunoco
Finance
Corp
4.88%,
01/15/2023
155
159
5.50%,
02/15/2026
95
99
Total
Capital
International
SA
2.83%,
01/10/2030
100
103
3.46%,
07/12/2049
15
16
Ultra
Resources
Inc/US
6.88%,
04/15/2022
(g)
65
8
$
5,732
Other
Asset
Backed
Securities
-
1.11%
Dell
Equipment
Finance
Trust
2018-1
2.09%,
10/22/2020
(g)
486
486
1.00
x
1
Month
USD
LIBOR
+
0.30%
Verizon
Owner
Trust
2017-1
2.06%,
09/20/2021
(g)
355
355
Verizon
Owner
Trust
2017-3
2.03%,
04/20/2022
(g)
1,453
1,453
1.00
x
1
Month
USD
LIBOR
+
0.27%
Verizon
Owner
Trust
2018-1
2.82%,
09/20/2022
(g)
500
503
$
2,797
Packaging
&
Containers
-
0.42%
Ardagh
Packaging
Finance
PLC
/
Ardagh
Holdings
USA
Inc
6.00%,
02/15/2025
(g)
200
210
Cascades
Inc/Cascades
USA
Inc
5.38%,
01/15/2028
(g)
40
41
Crown
Americas
LLC
/
Crown
Americas
Capital
Corp
VI
4.75%,
02/01/2026
125
132
Crown
Cork
&
Seal
Co
Inc
7.38%,
12/15/2026
132
157
Flex
Acquisition
Co
Inc
6.88%,
01/15/2025
(g)
110
111
Mauser
Packaging
Solutions
Holding
Co
7.25%,
04/15/2025
(g)
215
212
Reynolds
Group
Issuer
Inc
/
Reynolds
Group
Issuer
LLC
/
Reynolds
Group
Issuer
(Luxembourg)
S.A.
5.13%,
07/15/2023
(g)
155
158
5.50%,
07/15/2021
(g)
40
40
3
Month
USD
LIBOR
+
3.50%
$
1,061
Pharmaceuticals
-
2.59%
AbbVie
Inc
2.30%,
11/21/2022
(g)
400
402
2.60%,
11/21/2024
(g)
170
171
2.95%,
11/21/2026
(g)
180
183
3.38%,
11/14/2021
35
36
4.05%,
11/21/2039
(g)
105
110
Bausch
Health
Americas
Inc
8.50%,
01/31/2027
(g)
90
103
Bausch
Health
Cos
Inc
5.00%,
01/30/2028
(g)
40
41
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
64
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pharmaceuticals
(continued)
Bayer
US
Finance
II
LLC
3.88%,
12/15/2023
(g)
$
595
$
625
Becton
Dickinson
and
Co
2.89%,
06/06/2022
185
188
3.36%,
06/06/2024
200
208
3.70%,
06/06/2027
450
479
4.69%,
12/15/2044
141
165
Bristol-Myers
Squibb
Co
2.88%,
08/15/2020
(g)
315
317
2.90%,
07/26/2024
(g)
175
181
3.40%,
07/26/2029
(g)
105
112
4.13%,
06/15/2039
(g)
240
277
4.25%,
10/26/2049
(g)
195
232
Cigna
Corp
3.75%,
07/15/2023
645
676
4.38%,
10/15/2028
200
222
4.90%,
12/15/2048
35
42
CVS
Health
Corp
2.63%,
08/15/2024
110
111
3.00%,
08/15/2026
90
92
3.70%,
03/09/2023
215
224
4.30%,
03/25/2028
110
120
4.88%,
07/20/2035
190
219
5.05%,
03/25/2048
35
41
Eli
Lilly
&
Co
4.15%,
03/15/2059
80
94
Zoetis
Inc
3.90%,
08/20/2028
575
624
4.45%,
08/20/2048
95
111
4.70%,
02/01/2043
120
143
$
6,549
Pipelines
-
2.29%
Abu
Dhabi
Crude
Oil
Pipeline
LLC
3.65%,
11/02/2029
(g)
200
215
Buckeye
Partners
LP
3.95%,
12/01/2026
120
116
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp
5.63%,
05/01/2027
(g)
135
137
DCP
Midstream
Operating
LP
5.35%,
03/15/2020
(g)
450
452
Energy
Transfer
Operating
LP
4.50%,
04/15/2024
325
346
5.15%,
03/15/2045
75
79
5.25%,
04/15/2029
225
253
6.25%,
04/15/2049
170
205
Enterprise
Products
Operating
LLC
3.13%,
07/31/2029
65
67
4.20%,
01/31/2050
270
290
5.38%,
02/15/2078
(h)
250
248
3
Month
USD
LIBOR
+
2.57%
Hess
Midstream
Operations
LP
5.63%,
02/15/2026
(g)
150
156
Kinder
Morgan
Energy
Partners
LP
4.70%,
11/01/2042
150
160
MPLX
LP
4.00%,
03/15/2028
90
93
4.88%,
12/01/2024
195
212
5.50%,
02/15/2049
125
142
NuStar
Logistics
LP
6.00%,
06/01/2026
120
127
6.75%,
02/01/2021
120
125
Sabine
Pass
Liquefaction
LLC
5.00%,
03/15/2027
190
209
5.63%,
03/01/2025
100
113
5.75%,
05/15/2024
1,325
1,478
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Pipelines
(continued)
Targa
Resources
Partners
LP
/
Targa
Resources
Partners
Finance
Corp
6.50%,
07/15/2027
(g)
$
176
$
193
Western
Midstream
Operating
LP
5.50%,
08/15/2048
90
79
Williams
Cos
Inc/The
5.75%,
06/24/2044
245
290
$
5,785
REITs
-
1.14%
Alexandria
Real
Estate
Equities
Inc
3.45%,
04/30/2025
715
751
4.70%,
07/01/2030
140
161
CC
Holdings
GS
V
LLC
/
Crown
Castle
GS
III
Corp
3.85%,
04/15/2023
510
535
CyrusOne
LP
/
CyrusOne
Finance
Corp
2.90%,
11/15/2024
450
452
Essex
Portfolio
LP
3.00%,
01/15/2030
250
253
4.00%,
03/01/2029
155
169
Healthcare
Trust
of
America
Holdings
LP
3.10%,
02/15/2030
235
233
Mid-America
Apartments
LP
3.95%,
03/15/2029
130
142
VEREIT
Operating
Partnership
LP
3.10%,
12/15/2029
185
182
$
2,878
Retail
-
0.21%
1011778
BC
ULC
/
New
Red
Finance
Inc
4.38%,
01/15/2028
(g)
135
135
Golden
Nugget
Inc
6.75%,
10/15/2024
(g)
150
155
Home
Depot
Inc/The
5.88%,
12/16/2036
60
83
IRB
Holding
Corp
6.75%,
02/15/2026
(g)
130
136
Walmart
Inc
4.05%,
06/29/2048
10
12
$
521
Semiconductors
-
0.43%
Lam
Research
Corp
4.88%,
03/15/2049
25
31
NXP
BV
/
NXP
Funding
LLC
4.63%,
06/15/2022
(g)
370
390
4.63%,
06/01/2023
(g)
400
428
Xilinx
Inc
2.95%,
06/01/2024
225
231
$
1,080
Software
-
0.40%
Epicor
Software
Corp
9.19%,
06/30/2023
(g)
10
10
3
Month
USD
LIBOR
+
7.25%
Fiserv
Inc
3.80%,
10/01/2023
200
211
Microsoft
Corp
3.70%,
08/08/2046
120
136
4.45%,
11/03/2045
110
138
4.50%,
02/06/2057
90
117
Open
Text
Corp
5.88%,
06/01/2026
(g)
80
85
Oracle
Corp
2.95%,
11/15/2024
175
182
2.95%,
05/15/2025
100
104
4.00%,
11/15/2047
35
39
$
1,022
Sovereign
-
1.69%
Abu
Dhabi
Government
International
Bond
2.13%,
09/30/2024
(g)
200
199
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
65
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Sovereign
(continued)
Angolan
Government
International
Bond
8.00%,
11/26/2029
(g)
$
200
$
213
Argentine
Republic
Government
International
Bond
5.63%,
01/26/2022
160
83
Bahrain
Government
International
Bond
5.63%,
09/30/2031
(g)
200
214
CoBank
ACB
6.25%,
12/31/2049
(h),(
i
)
115
127
3
Month
USD
LIBOR
+
4.66%
Colombia
Government
International
Bond
5.00%,
06/15/2045
200
232
Ecuador
Government
International
Bond
9.63%,
06/02/2027
200
189
Egypt
Government
International
Bond
5.58%,
02/21/2023
(g)
200
209
Honduras
Government
International
Bond
7.50%,
03/15/2024
200
223
Hungary
Government
International
Bond
5.38%,
02/21/2023
44
48
Indonesia
Government
International
Bond
5.38%,
10/17/2023
(g)
300
332
Panama
Government
International
Bond
3.88%,
03/17/2028
200
218
Qatar
Government
International
Bond
3.25%,
06/02/2026
400
421
3.88%,
04/23/2023
(g)
200
211
Russian
Foreign
Bond
-
Eurobond
5.10%,
03/28/2035
(g)
200
239
Saudi
Government
International
Bond
4.00%,
04/17/2025
(g)
600
647
Turkey
Government
International
Bond
5.60%,
11/14/2024
225
229
Ukraine
Government
International
Bond
9.75%,
11/01/2028
(g)
200
243
$
4,277
Student
Loan
Asset
Backed
Securities
-
0.35%
Navient
Private
Education
Loan
Trust
2018-B
2.09%,
12/15/2059
(g)
568
567
1.00
x
1
Month
USD
LIBOR
+
0.35%
Navient
Student
Loan
Trust
2017-3
2.09%,
07/26/2066
(g)
73
73
1.00
x
1
Month
USD
LIBOR
+
0.30%
Navient
Student
Loan
Trust
2019-1
2.12%,
12/27/2067
(g)
246
246
1.00
x
1
Month
USD
LIBOR
+
0.33%
$
886
Telecommunications
-
2.09%
AT&T
Inc
3.88%,
01/15/2026
175
188
4.05%,
12/15/2023
425
455
4.30%,
02/15/2030
110
122
5.15%,
03/15/2042
50
58
5.35%,
09/01/2040
360
435
5.38%,
10/15/2041
130
155
5.45%,
03/01/2047
105
130
6.38%,
03/01/2041
85
113
Embarq
Corp
8.00%,
06/01/2036
105
111
GTT
Communications
Inc
7.88%,
12/31/2024
(g),(l)
90
68
Intelsat
Jackson
Holdings
SA
5.50%,
08/01/2023
190
163
8.00%,
02/15/2024
(g)
155
159
Level
3
Financing
Inc
5.13%,
05/01/2023
30
30
Ooredoo
International
Finance
Ltd
3.88%,
01/31/2028
250
268
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
Rogers
Communications
Inc
4.35%,
05/01/2049
$
255
$
285
Sprint
Capital
Corp
8.75%,
03/15/2032
70
85
Sprint
Communications
Inc
6.00%,
11/15/2022
75
79
Sprint
Corp
7.13%,
06/15/2024
120
129
7.63%,
03/01/2026
35
39
7.88%,
09/15/2023
180
199
Telecom
Italia
Capital
SA
6.38%,
11/15/2033
65
72
TELUS
Corp
4.30%,
06/15/2049
300
331
T-Mobile
USA
Inc
0.00%,
01/15/2024
(d),(e),(f)
30
—
0.00%,
04/15/2024
(d),(e),(f)
95
—
0.00%,
04/15/2025
(d),(e),(f)
320
—
0.00%,
01/15/2026
(d),(e),(f)
95
—
4.00%,
04/15/2022
125
128
5.13%,
04/15/2025
200
207
Verizon
Communications
Inc
3.88%,
02/08/2029
270
298
4.50%,
08/10/2033
355
414
5.25%,
03/16/2037
260
327
Vodafone
Group
PLC
4.88%,
06/19/2049
215
249
$
5,297
Transportation
-
0.21%
Burlington
Northern
Santa
Fe
LLC
4.15%,
12/15/2048
60
69
Eletson
Holdings
Inc
/
Eletson
Finance
US
LLC
/
Agathonissos
Finance
LLC
0.00%,
01/15/2022
(d)
121
36
Navios
Maritime
Acquisition
Corp
/
Navios
Acquisition
Finance
US
Inc
8.13%,
11/15/2021
(g)
200
158
Navios
Maritime
Holdings
Inc
/
Navios
Maritime
Finance
II
US
Inc
7.38%,
01/15/2022
(g)
55
32
11.25%,
08/15/2022
(g)
45
31
Navios
South
American
Logistics
Inc
/
Navios
Logistics
Finance
US
Inc
7.25%,
05/01/2022
(g),(l)
140
137
Union
Pacific
Corp
4.38%,
11/15/2065
60
66
$
529
Trucking
&
Leasing
-
0.09%
DAE
Funding
LLC
4.50%,
08/01/2022
(g)
95
96
5.25%,
11/15/2021
(g)
25
26
5.75%,
11/15/2023
(g)
100
105
$
227
TOTAL
BONDS
$
145,973
SENIOR
FLOATING
RATE
INTERESTS
-
0.92%
Principal
Amount
(000's)
Value
(000's)
Automobile
Manufacturers
-
0.04%
Navistar
Inc
5.37%,
11/06/2024
(n)
$
89
$
89
3
Month
USD
LIBOR
+
3.00%
Commercial
Services
-
0.01%
Refinitiv
US
Holdings
Inc
5.05%,
10/01/2025
(n)
35
35
3
Month
USD
LIBOR
+
3.00%
Computers
-
0.10%
McAfee
LLC
10.32%,
09/29/2025
(n)
240
241
3
Month
USD
LIBOR
+
3.25%
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
66
SENIOR
FLOATING
RATE
INTERESTS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Diversified
Financial
Services
-
0.12%
Russell
Investments
US
Institutional
Holdco
Inc
5.05%,
06/01/2023
(n)
$
301
$
301
3
Month
USD
LIBOR
+
2.00%
Electrical
Components
&
Equipment
-
0.05%
Energizer
Holdings
Inc
4.00%,
12/17/2025
(n)
136
136
3
Month
USD
LIBOR
+
4.50%
Entertainment
-
0.04%
Eldorado
Resorts
Inc
4.05%,
04/17/2024
(n)
57
57
3
Month
USD
LIBOR
+
3.00%
Lions
Gate
Capital
Holdings
LLC
4.05%,
03/24/2025
(n)
50
50
3
Month
USD
LIBOR
+
2.00%
$
107
Insurance
-
0.03%
Asurion
LLC
4.80%,
11/03/2023
(n)
75
75
1
Month
USD
LIBOR
+
7.25%
Lodging
-
0.06%
Golden
Nugget
LLC
4.69%,
10/04/2023
(n)
76
76
3
Month
USD
LIBOR
+
2.25%
Spectacle
Gary
Holdings
LLC
10.80%,
12/23/2025
(n)
70
71
1
Month
USD
LIBOR
+
9.00%
$
147
Media
-
0.04%
CSC
Holdings
LLC
4.24%,
04/15/2027
(n)
50
50
1
Month
USD
LIBOR
+
2.50%
Diamond
Sports
Group
LLC
4.94%,
08/24/2026
(n)
45
45
1
Month
USD
LIBOR
+
3.50%
$
95
Oil
&
Gas
-
0.04%
California
Resources
Corp
6.55%,
12/31/2022
(n)
105
93
3
Month
USD
LIBOR
+
3.50%
Pharmaceuticals
-
0.17%
Bausch
Health
Americas
Inc
4.74%,
05/19/2025
(n)
262
263
3
Month
USD
LIBOR
+
7.50%
Endo
International
PLC
6.06%,
04/29/2024
(n)
163
156
3
Month
USD
LIBOR
+
4.00%
$
419
Pipelines
-
0.03%
Buckeye
Partners
LP
4.44%,
11/15/2026
(n)
85
86
1
Month
USD
LIBOR
+
2.75%
Retail
-
0.06%
Academy
Ltd
5.69%,
07/01/2022
(n)
104
85���
3
Month
USD
LIBOR
+
4.50%
IRB
Holding
Corp
5.22%,
01/17/2025
(n)
74
75
3
Month
USD
LIBOR
+
2.75%
$
160
Telecommunications
-
0.13%
Avaya
Inc
5.99%,
12/16/2024
(n)
202
198
3
Month
USD
LIBOR
+
6.00%
SENIOR
FLOATING
RATE
INTERESTS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
Maxar
Technologies
Ltd
4.85%,
10/05/2024
(n)
$
142
$
135
3
Month
USD
LIBOR
+
4.25%
$
333
TOTAL
SENIOR
FLOATING
RATE
INTERESTS
$
2,317
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
41.09%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
4.06%
3.00%,
10/01/2042
$
50
$
52
3.00%,
11/01/2042
272
281
3.00%,
11/01/2042
50
52
3.00%,
03/01/2043
1,236
1,280
3.00%,
12/01/2046
121
124
3.00%,
01/01/2047
2,248
2,321
3.50%,
10/01/2041
48
50
3.50%,
04/01/2042
116
122
3.50%,
04/01/2042
59
63
3.50%,
04/01/2045
54
57
3.50%,
10/01/2045
874
922
3.50%,
03/01/2048
128
135
4.00%,
02/01/2045
27
29
4.00%,
02/01/2046
63
66
4.00%,
02/01/2046
444
472
4.00%,
06/01/2046
64
68
4.00%,
04/01/2047
379
406
4.00%,
11/01/2047
623
657
4.50%,
07/01/2024
11
11
4.50%,
07/01/2039
63
68
4.50%,
10/01/2041
36
39
4.50%,
12/01/2043
855
927
4.50%,
03/01/2046
284
315
4.50%,
01/01/2049
342
361
4.75%,
02/01/2037
19
20
1.00
x
12
Month
USD
LIBOR
+
1.63%
5.00%,
06/01/2031
90
97
5.00%,
10/01/2035
31
34
5.00%,
06/01/2041
911
1,003
5.03%,
02/01/2034
1
1
1.00
x
12
Month
USD
LIBOR
+
1.99%
6.00%,
06/01/2032
22
25
6.00%,
10/01/2032
11
13
6.00%,
01/01/2038
54
62
6.50%,
03/01/2029
3
3
6.50%,
05/01/2029
4
5
6.50%,
04/01/2031
2
2
6.50%,
02/01/2032
4
4
6.50%,
05/01/2032
4
4
6.50%,
04/01/2035
7
8
7.00%,
12/01/2029
13
14
7.00%,
06/01/2030
4
4
7.00%,
12/01/2030
1
1
7.00%,
01/01/2031
2
2
7.00%,
12/01/2031
30
30
7.50%,
04/01/2030
1
2
7.50%,
03/01/2031
7
8
8.00%,
09/01/2030
31
33
$
10,253
Federal
National
Mortgage
Association
(FNMA)
-
0.00%
4.56%,
07/01/2034
1
1
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.19%
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
14.05%
2.50%,
01/01/2035
(o)
2,000
2,018
3.00%,
03/01/2034
295
304
3.00%,
01/01/2035
(o)
4,000
4,099
3.00%,
03/01/2042
85
87
3.00%,
03/01/2042
92
95
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
67
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.00%,
05/01/2042
$
47
$
48
3.00%,
06/01/2042
42
44
3.00%,
06/01/2042
87
89
3.00%,
05/01/2043
171
176
3.00%,
01/01/2050
(o)
4,500
4,564
3.50%,
04/01/2030
321
337
3.50%,
05/01/2034
1,412
1,489
3.50%,
08/01/2034
339
355
3.50%,
12/01/2040
65
69
3.50%,
01/01/2041
39
41
3.50%,
12/01/2041
21
22
3.50%,
03/01/2042
37
39
3.50%,
04/01/2042
71
74
3.50%,
11/01/2042
918
984
3.50%,
02/01/2043
46
48
3.50%,
07/01/2043
815
867
3.50%,
07/01/2043
263
280
3.50%,
11/01/2044
1,652
1,743
3.50%,
03/01/2045
56
60
3.50%,
06/01/2045
106
112
3.50%,
11/01/2045
71
75
3.50%,
05/01/2046
63
66
3.50%,
08/01/2047
1,589
1,703
3.50%,
10/01/2047
1,629
1,735
3.50%,
11/01/2047
723
763
3.50%,
01/01/2048
514
547
3.50%,
03/01/2048
1,067
1,125
3.50%,
04/01/2048
1,436
1,513
4.00%,
08/01/2020
12
12
4.00%,
03/01/2034
381
410
4.00%,
09/01/2040
87
94
4.00%,
05/01/2041
195
209
4.00%,
10/01/2041
31
33
4.00%,
10/01/2041
48
51
4.00%,
11/01/2041
44
47
4.00%,
04/01/2042
29
31
4.00%,
11/01/2043
38
40
4.00%,
11/01/2043
107
115
4.00%,
02/01/2044
123
132
4.00%,
06/01/2044
265
283
4.00%,
09/01/2044
35
37
4.00%,
09/01/2045
114
121
4.00%,
12/01/2045
668
709
4.00%,
08/01/2046
90
96
4.00%,
01/01/2047
65
68
4.00%,
04/01/2047
365
391
4.00%,
05/01/2047
799
840
4.00%,
11/01/2047
1,885
2,011
4.00%,
10/01/2048
446
476
4.50%,
07/01/2025
37
39
4.50%,
08/01/2040
53
57
4.50%,
11/01/2040
848
921
4.50%,
12/01/2040
33
35
4.50%,
08/01/2041
35
38
4.50%,
09/01/2041
245
266
4.50%,
05/01/2044
43
46
4.50%,
12/01/2044
107
115
4.50%,
06/01/2046
45
48
4.50%,
05/01/2047
31
33
4.50%,
05/01/2047
119
126
5.00%,
10/01/2041
168
184
5.00%,
06/01/2048
418
459
5.50%,
12/01/2022
9
10
5.50%,
07/01/2033
231
260
5.50%,
04/01/2035
23
25
5.50%,
08/01/2036
446
501
5.50%,
02/01/2037
4
4
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
5.50%,
05/01/2040
$
41
$
46
6.00%,
05/01/2031
2
2
6.00%,
07/01/2035
135
155
6.00%,
02/01/2037
79
88
6.00%,
02/01/2038
49
56
6.50%,
03/01/2032
3
3
6.50%,
07/01/2037
18
20
6.50%,
07/01/2037
32
38
6.50%,
02/01/2038
34
39
6.50%,
03/01/2038
7
8
6.50%,
09/01/2038
111
128
$
35,527
Government
National
Mortgage
Association
(GNMA)
-
6.95%
3.00%,
02/15/2043
338
348
3.00%,
07/20/2044
501
519
3.00%,
01/20/2046
385
398
3.00%,
07/20/2046
622
642
3.00%,
12/20/2046
1,709
1,765
3.00%,
01/01/2050
1,200
1,233
3.25%,
07/20/2043
80
83
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.50%
3.50%,
04/20/2046
196
208
3.50%,
10/20/2046
297
310
3.50%,
07/20/2047
1,195
1,250
3.50%,
01/01/2050
5,050
5,204
4.00%,
02/15/2042
129
137
4.00%,
06/20/2046
79
83
4.00%,
01/20/2048
2,155
2,263
4.00%,
01/01/2050
635
657
4.50%,
09/15/2039
531
585
4.50%,
11/15/2040
103
113
4.50%,
06/20/2048
34
36
5.00%,
02/15/2034
206
228
5.00%,
10/15/2034
75
83
5.00%,
10/20/2039
40
44
5.00%,
07/20/2040
16
17
5.00%,
02/15/2042
85
95
5.50%,
12/20/2033
102
115
5.50%,
05/20/2035
11
13
5.50%,
12/20/2048
637
677
6.00%,
01/20/2029
19
21
6.00%,
07/20/2029
3
3
6.00%,
12/15/2033
25
29
6.00%,
12/20/2036
55
62
6.50%,
03/20/2028
3
3
6.50%,
05/20/2029
3
3
6.50%,
12/15/2032
291
322
7.00%,
03/15/2031
6
6
7.50%,
05/15/2029
14
14
8.00%,
12/15/2030
6
7
$
17,576
U.S.
Treasury
-
16.03%
1.25%,
07/31/2023
1,405
1,386
1.50%,
08/15/2026
1,420
1,392
1.63%,
10/31/2023
370
370
1.75%,
04/30/2022
3,385
3,398
2.00%,
10/31/2022
4,500
4,549
2.13%,
11/30/2023
(p)
1,140
1,160
2.50%,
05/15/2024
7,575
7,838
3.00%,
09/30/2025
3,000
3,205
3.00%,
05/15/2045
2,640
2,954
3.00%,
11/15/2045
2,000
2,243
3.13%,
05/15/2048
5,950
6,868
3.75%,
11/15/2043
1,650
2,068
Schedule
of
Investments
Core
Plus
Bond
Account
December
31,
2019
See
accompanying
notes.
68
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
U.S.
Treasury
(continued)
4.75%,
02/15/2037
$
2,260
$
3,114
$
40,545
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
103,902
Total
Investments
$
268,802
Other
Assets
and
Liabilities
- (6.30)%
(15,928)
TOTAL
NET
ASSETS
-
100.00%
$
252,874
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,123
or
0.44%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(f)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$5
or
0.00%
of
net
assets.
(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
of
these
securities
totaled
$40,909
or
16.18%
of
net
assets.
(h)
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.
(
i
)
Perpetual
security.
Perpetual
securities
pay
an
indefinite
stream
of
interest,
but
they
may
be
called
by
the
issuer
at
an
earlier
date.
Date
shown,
if
any,
reflects
the
next
call
date
or
final
legal
maturity
date.
Rate
shown
is
as
of
period
end.
(j)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions. These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(k)
Security
is
an
Interest
Only
Strip.
(l)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(m)
Payment
in
kind;
the
issuer
has
the
option
of
paying
additional
securities
in
lieu
of
cash.
(n)
Rate
information
disclosed
is
based
on
an
average
weighted
rate
of
the
underlying
tranches
as
of
period
end.
(o)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction. See
Notes
to
Financial
Statements
for
additional
information.
(p)
Security
or
a
portion
of
the
security
was
pledged
to
cover
margin
requirements
for
futures
contracts.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$92
or
0.04%
of
net
assets.
Portfolio
Summary (unaudited)
Sector
Percent
Mortgage
Securities
34.29%
Government
17.72%
Financial
11.77%
Consumer,
Non-cyclical
7.43%
Asset
Backed
Securities
5.51%
Communications
5.13%
Money
Market
Funds
5.05%
Energy
4.63%
Industrial
3.77%
Utilities
3.14%
Consumer,
Cyclical
2.82%
Technology
2.04%
Investment
Companies
1.52%
Basic
Materials
1.48%
Other
Assets
and
Liabilities
(6.30)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
3,894
$
162,671
$
154,917
$
11,648
$
3,894
$
162,671
$
154,917
$
11,648
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
269
$
—
$
—
$
—
$
269
$
—
$
—
$
—
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
10
Year
Note;
March
2020
Long
10
$
1,284
$
(11)
US
2
Year
Note;
March
2020
Short
45
9,697
6
US
5
Year
Note;
March
2020
Short
28
3,321
12
US
Long
Bond;
March
2020
Long
22
3,430
(70)
US
Ultra
Bond;
March
2020
Long
3
545
1
Total
$
(62)
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
Diversified
International
Account
December
31,
2019
See
accompanying
notes.
69
INVESTMENT
COMPANIES
-
0.89%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.89%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
2
$
—
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
2,369,881
2,370
$
2,370
TOTAL
INVESTMENT
COMPANIES
$
2,370
COMMON
STOCKS
-
98.47%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
1.28%
CAE
Inc
39,500
1,046
Kawasaki
Heavy
Industries
Ltd
23,000
502
Safran
SA
12,042
1,860
$
3,408
Apparel
-
2.28%
Adidas
AG
6,267
2,040
Fila
Korea
Ltd
15,565
711
LVMH
Moet
Hennessy
Louis
Vuitton
SE
7,124
3,320
$
6,071
Automobile
Manufacturers
-
3.81%
Ferrari
NV
11,021
1,830
Isuzu
Motors
Ltd
111,400
1,317
Kia
Motors
Corp
43,826
1,674
Maruti
Suzuki
India
Ltd
12,609
1,302
Toyota
Motor
Corp
57,300
4,037
$
10,160
Automobile
Parts
&
Equipment
-
0.43%
Toyota
Industries
Corp
19,800
1,139
Banks
-
9.25%
Banco
Comercial
Portugues
SA
1,809,850
413
Banco
do
Brasil
SA
92,900
1,220
Bangkok
Bank
PCL
118,500
630
Bank
Leumi
Le-Israel
BM
230,765
1,683
BNP
Paribas
SA
40,488
2,406
BOC
Hong
Kong
Holdings
Ltd
266,500
925
Credicorp
Ltd
7,234
1,542
DBS
Group
Holdings
Ltd
84,000
1,620
DNB
ASA
105,519
1,975
Erste
Group
Bank
AG
(
d)
33,776
1,269
Grupo
Financiero
Banorte
SAB
de
CV
129,859
725
HDFC
Bank
Ltd
ADR
15,362
973
ICICI
Bank
Ltd
ADR
52,858
798
Macquarie
Group
Ltd
26,079
2,526
Mediobanca
Banca
di
Credito
Finanziario
SpA
80,424
885
OTP
Bank
Nyrt
14,852
778
Shinhan
Financial
Group
Co
Ltd
24,459
917
Toronto-Dominion
Bank/The
45,400
2,546
United
Overseas
Bank
Ltd
43,300
851
$
24,682
Beverages
-
1.61%
Carlsberg
A/S
11,546
1,723
Coca-Cola
HBC
AG
(
d)
16,963
577
Jiangsu
Yanghe
Brewery
Joint-Stock
Co
Ltd
73,199
1,163
Thai
Beverage
PCL
1,273,100
843
$
4,306
Biotechnology
-
1.09%
CSL
Ltd
14,983
2,905
Building
Materials
-
0.72%
Anhui
Conch
Cement
Co
Ltd
117,998
929
Cie
de
Saint-Gobain
24,203
992
$
1,921
Chemicals
-
1.69%
JSR
Corp
36,800
673
Koninklijke
DSM
NV
12,667
1,656
Nitto
Denko
Corp
20,600
1,159
Nutrien
Ltd
21,200
1,015
$
4,503
Commercial
Services
-
0.22%
Dai
Nippon
Printing
Co
Ltd
21,600
584
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Computers
-
1.88%
CyberArk
Software
Ltd
(
d)
7,656
$
892
Logitech
International
SA
47,766
2,263
Nomura
Research
Institute
Ltd
40,200
860
Obic
Co
Ltd
7,400
997
$
5,012
Consumer
Products
-
0.24%
Hindustan
Unilever
Ltd
24,231
653
Cosmetics
&
Personal
Care
-
0.41%
Essity
AB
33,641
1,083
Distribution
&
Wholesale
-
2.05%
Ferguson
PLC
21,248
1,934
ITOCHU
Corp
124,900
2,895
Sumitomo
Corp
42,500
631
$
5,460
Diversified
Financial
Services
-
2.46%
AerCap
Holdings
NV
(
d)
25,056
1,540
Bajaj
Finance
Ltd
13,958
828
Housing
Development
Finance
Corp
Ltd
44,854
1,517
ORIX
Corp
129,300
2,143
Tisco
Financial
Group
PCL
164,300
544
$
6,572
Electric
-
2.42%
Chubu
Electric
Power
Co
Inc
56,200
794
Enel
SpA
355,195
2,822
Iberdrola
SA
274,331
2,827
$
6,443
Electrical
Components
&
Equipment
-
0.38%
Delta
Electronics
Inc
200,000
1,012
Electronics
-
1.45%
Halma
PLC
39,095
1,095
Hoya
Corp
29,096
2,777
$
3,872
Energy
-
Alternate
Sources
-
0.62%
Vestas
Wind
Systems
A/S
16,365
1,653
Engineering
&
Construction
-
1.05%
Vinci
SA
25,154
2,802
Food
-
4.52%
Associated
British
Foods
PLC
27,957
962
Koninklijke
Ahold
Delhaize
NV
35,625
893
MEIJI
Holdings
Co
Ltd
14,700
994
Nestle
India
Ltd
3,021
626
Nestle
SA
57,870
6,265
Uni-President
Enterprises
Corp
630,000
1,562
X5
Retail
Group
NV
22,226
767
$
12,069
Food
Service
-
0.78%
Compass
Group
PLC
83,181
2,085
Forest
Products
&
Paper
-
0.60%
Mondi
PLC
68,451
1,605
Hand
&
Machine
Tools
-
0.90%
Amada
Holdings
Co
Ltd
83,800
953
Techtronic
Industries
Co
Ltd
177,000
1,445
$
2,398
Healthcare
-
Products
-
1.41%
Carl
Zeiss
Meditec
AG
5,993
762
Koninklijke
Philips
NV
26,825
1,311
Sartorius
Stedim
Biotech
4,466
741
Straumann
Holding
AG
974
956
$
3,770
Healthcare
-
Services
-
1.35%
ICON
PLC
(
d)
10,518
1,812
Lonza
Group
AG
(
d)
4,907
1,790
$
3,602
Home
Builders
-
0.91%
Persimmon
PLC
34,444
1,230
Taylor
Wimpey
PLC
467,381
1,199
$
2,429
Schedule
of
Investments
Diversified
International
Account
December
31,
2019
See
accompanying
notes.
70
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Home
Furnishings
-
1.37%
Howden
Joinery
Group
PLC
115,537
$
1,029
Sony
Corp
38,700
2,628
$
3,657
Insurance
-
8.66%
ASR
Nederland
NV
27,219
1,020
AXA
SA
92,336
2,609
BB
Seguridade
Participacoes
SA
153,631
1,440
Fairfax
Financial
Holdings
Ltd
2,800
1,315
Hannover
Rueck
SE
10,029
1,934
IRB
Brasil
Resseguros
S/A
70,200
680
Legal
&
General
Group
PLC
695,509
2,794
M&G
PLC
(
d)
222,912
700
NN
Group
NV
50,281
1,912
PICC
Property
&
Casualty
Co
Ltd
692,000
834
Prudential
PLC
111,815
2,142
Sompo
Holdings
Inc
31,900
1,253
Swiss
Life
Holding
AG
4,699
2,357
Tokio
Marine
Holdings
Inc
37,700
2,111
$
23,101
Internet
-
3.33%
Alibaba
Group
Holding
Ltd
ADR
(d)
23,072
4,894
Tencent
Holdings
Ltd
82,993
3,998
$
8,892
Investment
Companies
-
0.61%
EXOR
NV
9,174
711
Investor
AB
16,826
919
$
1,630
Machinery
-
Diversified
-
0.95%
Keyence
Corp
4,000
1,404
Miura
Co
Ltd
9,800
339
Valmet
Oyj
33,058
793
$
2,536
Metal
Fabrication
&
Hardware
-
0.22%
SKF
AB
28,599
579
Mining
-
1.54%
MMC
Norilsk
Nickel
PJSC
ADR
49,214
1,501
Newcrest
Mining
Ltd
30,534
645
Rio
Tinto
Ltd
27,753
1,963
$
4,109
Oil
&
Gas
-
4.88%
BP
PLC
324,059
2,039
Canadian
Natural
Resources
Ltd
35,400
1,145
LUKOIL
PJSC
ADR
15,701
1,564
Neste
Oyj
68,247
2,375
Parkland
Fuel
Corp
15,500
570
Petrobras
Distribuidora
SA
90,700
678
PTT
PCL
552,900
811
Reliance
Industries
Ltd
103,771
2,201
Suncor
Energy
Inc
49,900
1,635
$
13,018
Pharmaceuticals
-
5.09%
Merck
KGaA
12,116
1,428
Novartis
AG
43,951
4,162
Novo
Nordisk
A/S
40,249
2,332
Roche
Holding
AG
17,427
5,664
$
13,586
Pipelines
-
1.23%
Pembina
Pipeline
Corp
33,500
1,241
TC
Energy
Corp
38,300
2,040
$
3,281
Private
Equity
-
2.98%
3i
Group
PLC
207,541
3,020
Brookfield
Asset
Management
Inc
71,213
4,115
Intermediate
Capital
Group
PLC
38,601
823
$
7,958
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Real
Estate
-
1.40%
CK
Asset
Holdings
Ltd
213,500
$
1,541
PSP
Swiss
Property
AG
6,440
889
Vonovia
SE
24,305
1,305
$
3,735
Retail
-
4.59%
Alimentation
Couche-Tard
Inc
95,246
3,023
ANTA
Sports
Products
Ltd
206,000
1,844
Grafton
Group
PLC
41,975
483
Hennes
&
Mauritz
AB
76,194
1,554
Home
Product
Center
PCL
1,333,500
711
JD
Sports
Fashion
PLC
22,475
250
Li
Ning
Co
Ltd
404,000
1,212
Pan
Pacific
International
Holdings
Corp
67,600
1,121
Wal-Mart
de
Mexico
SAB
de
CV
495,022
1,421
WH
Smith
PLC
18,183
627
$
12,246
Semiconductors
-
6.93%
ASML
Holding
NV
9,717
2,877
NXP
Semiconductors
NV
16,005
2,037
Samsung
Electronics
Co
Ltd
105,075
5,063
SK
Hynix
Inc
29,025
2,361
Taiwan
Semiconductor
Manufacturing
Co
Ltd
555,140
6,144
$
18,482
Software
-
1.68%
Capcom
Co
Ltd
30,500
844
Dassault
Systemes
SE
8,014
1,322
Nemetschek
SE
9,246
609
SimCorp
A/S
6,915
787
Tech
Mahindra
Ltd
85,498
913
$
4,475
Telecommunications
-
4.72%
China
Mobile
Ltd
209,500
1,770
Deutsche
Telekom
AG
93,801
1,533
Nice
Ltd
ADR
(d)
9,031
1,401
Nippon
Telegraph
&
Telephone
Corp
103,000
2,603
Orange
SA
68,999
1,014
SoftBank
Group
Corp
55,100
2,392
Telefonaktiebolaget
LM
Ericsson
133,277
1,165
Telenor
ASA
39,210
703
$
12,581
Toys,
Games
&
Hobbies
-
0.66%
Nintendo
Co
Ltd
4,400
1,760
Transportation
-
1.82%
Canadian
National
Railway
Co
34,428
3,114
East
Japan
Railway
Co
19,300
1,742
$
4,856
TOTAL
COMMON
STOCKS
$
262,681
PREFERRED
STOCKS
-
0.41%
Shares
Held
Value
(000's)
Investment
Companies
-
0.41%
Itausa
-
Investimentos
Itau
SA
0.08%
317,046
$
1,110
TOTAL
PREFERRED
STOCKS
$
1,110
Total
Investments
$
266,161
Other
Assets
and
Liabilities
- 0.23
%
607
TOTAL
NET
ASSETS
-
100.00%
$
266,768
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$0
or
0.00%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
Schedule
of
Investments
Diversified
International
Account
December
31,
2019
See
accompanying
notes.
71
Portfolio
Summary (
unaudited)
Location
Percent
Japan
15.24%
United
Kingdom
9.56%
Switzerland
9.34%
Canada
8.53%
France
6.40%
China
5.57%
Netherlands
4.65%
Korea,
Republic
Of
4.03%
India
3.67%
Germany
3.61%
Taiwan
3.27%
Denmark
2.42%
Australia
2.28%
Hong
Kong
2.13%
Italy
2.08%
Sweden
1.99%
Brazil
1.92%
Israel
1.50%
Ireland
1.44%
Russian
Federation
1.44%
Thailand
1.33%
Finland
1.19%
Spain
1.06%
Norway
1.00%
Singapore
0.93%
United
States
0.89%
Mexico
0.80%
Peru
0.58%
Austria
0.48%
Hungary
0.29%
Portugal
0.15%
Other
Assets
and
Liabilities
0.23%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
1,664
$
44,150
$
43,444
$
2,370
$
1,664
$
44,150
$
43,444
$
2,370
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
35
$
—
$
—
$
—
$
35
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
Equity
Income
Account
December
31,
2019
See
accompanying
notes.
72
INVESTMENT
COMPANIES
-
1.92%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.92%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
8,588
$
9
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
14,848,183
14,848
$
14,857
TOTAL
INVESTMENT
COMPANIES
$
14,857
COMMON
STOCKS
-
97.94%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
0.34%
Boeing
Co/The
8,107
2,641
Airlines
-
1.69%
Delta
Air
Lines
Inc
223,962
13,097
Apparel
-
1.37%
VF
Corp
106,499
10,614
Automobile
Manufacturers
-
1.52%
PACCAR
Inc
148,820
11,772
Automobile
Parts
&
Equipment
-
1.68%
Magna
International
Inc
236,290
12,958
Banks
-
10.76%
First
Republic
Bank/CA
100,582
11,813
JPMorgan
Chase
&
Co
166,790
23,251
PNC
Financial
Services
Group
Inc/The
126,725
20,229
Truist
Financial
Corp
220,274
12,406
US
Bancorp
261,003
15,475
$
83,174
Beverages
-
1.61%
Coca-Cola
Co/The
224,891
12,448
Biotechnology
-
0.60%
Corteva
Inc
156,724
4,633
Chemicals
-
2.95%
Air
Products
&
Chemicals
Inc
34,518
8,112
DuPont
de
Nemours
Inc
105,582
6,778
PPG
Industries
Inc
59,595
7,955
$
22,845
Computers
-
1.70%
Apple
Inc
44,756
13,142
Diversified
Financial
Services
-
4.27%
BlackRock
Inc
31,355
15,762
Discover
Financial
Services
203,758
17,283
$
33,045
Electric
-
6.31%
Eversource
Energy
107,309
9,129
NextEra
Energy
Inc
39,463
9,556
Sempra
Energy
75,900
11,497
WEC
Energy
Group
Inc
100,443
9,264
Xcel
Energy
Inc
146,872
9,325
$
48,771
Electronics
-
0.86%
Honeywell
International
Inc
37,763
6,684
Food
-
3.94%
Hormel
Foods
Corp
335,186
15,120
Tyson
Foods
Inc
168,424
15,333
$
30,453
Healthcare
-
Products
-
3.52%
Abbott
Laboratories
149,271
12,966
Medtronic
PLC
125,747
14,266
$
27,232
Healthcare
-
Services
-
1.74%
HCA
Healthcare
Inc
90,997
13,450
Insurance
-
6.77%
Allstate
Corp/The
97,935
11,013
Chubb
Ltd
98,771
15,375
Fidelity
National
Financial
Inc
324,721
14,726
Swiss
Re
AG
ADR
(d)
400,224
11,254
$
52,368
Machinery
-
Diversified
-
1.61%
Deere
&
Co
72,034
12,481
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Media
-
2.02%
Walt
Disney
Co/The
107,796
$
15,590
Miscellaneous
Manufacturers
-
2.31%
3M
Co
30,253
5,337
Parker-Hannifin
Corp
60,689
12,491
$
17,828
Oil
&
Gas
-
6.94%
Chevron
Corp
77,192
9,302
Cimarex
Energy
Co
54,977
2,886
EOG
Resources
Inc
145,617
12,197
Exxon
Mobil
Corp
53,075
3,704
Marathon
Petroleum
Corp
227,288
13,694
Royal
Dutch
Shell
PLC
-
B
shares
ADR
197,808
11,862
$
53,645
Pharmaceuticals
-
8.58%
Becton
Dickinson
and
Co
38,586
10,494
Merck
&
Co
Inc
187,548
17,057
Novartis
AG
ADR
119,611
11,326
Pfizer
Inc
275,052
10,777
Roche
Holding
AG
ADR
410,293
16,683
$
66,337
Pipelines
-
1.70%
Enterprise
Products
Partners
LP
466,091
13,125
Private
Equity
-
1.89%
KKR
&
Co
Inc
502,012
14,644
REITs
-
4.82%
Alexandria
Real
Estate
Equities
Inc
75,364
12,177
Digital
Realty
Trust
Inc
127,417
15,257
Realty
Income
Corp
133,256
9,812
$
37,246
Retail
-
2.96%
Costco
Wholesale
Corp
49,821
14,643
Starbucks
Corp
94,096
8,273
$
22,916
Semiconductors
-
2.82%
Microchip
Technology
Inc
104,797
10,975
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
185,960
10,804
$
21,779
Software
-
3.18%
Fidelity
National
Information
Services
Inc
57,940
8,059
Microsoft
Corp
57,785
9,113
SAP
SE
ADR
55,136
7,387
$
24,559
Telecommunications
-
4.02%
BCE
Inc
314,424
14,574
Verizon
Communications
Inc
268,585
16,491
$
31,065
Toys,
Games
&
Hobbies
-
2.17%
Hasbro
Inc
158,533
16,743
Transportation
-
1.29%
Union
Pacific
Corp
55,099
9,961
TOTAL
COMMON
STOCKS
$
757,246
Total
Investments
$
772,103
Other
Assets
and
Liabilities
- 0.14
%
1,082
TOTAL
NET
ASSETS
-
100.00%
$
773,185
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$9
or
0.00%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Schedule
of
Investments
Equity
Income
Account
December
31,
2019
See
accompanying
notes.
73
Portfolio
Summary (
unaudited)
Sector
Percent
Financial
28.51%
Consumer,
Non-cyclical
19.99%
Consumer,
Cyclical
11.39%
Energy
8.64%
Technology
7.70%
Industrial
6.41%
Utilities
6.31%
Communications
6.04%
Basic
Materials
2.95%
Money
Market
Funds
1.92%
Other
Assets
and
Liabilities
0.14%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
8,817
$
133,762
$
127,731
$
14,848
$
8,817
$
133,762
$
127,731
$
14,848
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
24
2
$
—
$
—
$
—
$
24
2
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2019
See
accompanying
notes.
74
INVESTMENT
COMPANIES
-
3.80%
Shares
Held
Value
(000's)
Money
Market
Funds
-
3.80%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
2,513,784
$
2,514
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
6,645,514
6,646
$
9,160
TOTAL
INVESTMENT
COMPANIES
$
9,160
BONDS
-
27.90%
Principal
Amount
(000's)
Value
(000's)
Automobile
Asset
Backed
Securities
-
0.11%
AmeriCredit
Automobile
Receivables
2016-1
2.89
%,
01
/10/2022
$
267
$
268
Commercial
Mortgage
Backed
Securities
-
13.20%
Bank
2019-BNK19
4.03
%,
08
/15/2061
(d)
600
629
BANK
2019-BNK21
3.52
%,
10
/17/2052
2,000
2,016
CD
2017-CD3
Mortgage
Trust
3.98
%,
02
/10/2050
(d)
1,000
1,051
COMM
2014-CCRE19
Mortgage
Trust
4.75
%,
08
/10/2047
(d)
600
632
COMM
2014-UBS5
Mortgage
Trust
4.61
%,
09
/10/2047
(d)
1,000
1,033
Freddie
Mac
Multifamily
Structured
Pass
Through
Certificates
2.37
%,
05
/25/2022
1,100
1,109
2.65
%,
08
/25/2026
1,595
1,634
3.19
%,
09
/25/2027
(d)
1,330
1,406
3.30
%,
04
/25/2023
(d)
1,300
1,351
3.46
%,
08
/25/2023
(d)
1,200
1,256
3.53
%,
10
/25/2023
(d)
870
914
3.60
%,
01
/25/2028
1,330
1,443
3.65
%,
02
/25/2028
(d)
700
761
3.90
%,
04
/25/2028
1,120
1,238
4.06
%,
10
/25/2028
(d)
1,300
1,454
Ginnie
Mae
0.48
%,
06
/16/2060
(d),(e)
6,842
365
0.54
%,
10
/16/2054
(d),(e)
10,179
274
0.55
%,
04
/16/2047
(d),(e)
9,110
293
0.57
%,
12
/16/2059
(d),(e)
7,697
407
0.59
%,
02
/16/2060
(d),(e)
11,220
648
0.59
%,
03
/16/2060
(d),(e)
4,652
261
0.61
%,
11
/16/2045
(d),(e)
15,128
489
0.70
%,
11
/16/2052
(d),(e)
12,133
460
0.74
%,
02
/16/2061
(d),(e)
3,482
254
0.79
%,
09
/16/2053
(d),(e)
9,452
358
0.83
%,
02
/16/2055
(d),(e)
21,563
619
0.84
%,
02
/16/2053
(d),(e)
10,744
578
0.94
%,
03
/16/2052
(d),(e)
10,089
555
2.60
%,
05
/16/2059
668
666
2.60
%,
03
/16/2060
1,147
1,144
GS
Mortgage
Securities
Trust
2014-GC20
4.96
%,
04
/10/2047
(d)
300
309
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2011-C5
5.42
%,
08
/15/2046
(d),(f)
2,000
2,081
JP
Morgan
Chase
Commercial
Mortgage
Securities
Trust
2013-C16
4.96
%,
12
/15/2046
(d)
1,800
1,954
JPMDB
Commercial
Mortgage
Securities
Trust
2018-C8
4.74
%,
06
/15/2051
(d)
500
540
Wells
Fargo
Commercial
Mortgage
Trust
2014-LC16
4.46
%,
08
/15/2050
600
604
WFRBS
Commercial
Mortgage
Trust
2014-C23
4.38
%,
10
/15/2057
(d)
1,000
1,063
$
31,849
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Home
Equity
Asset
Backed
Securities
-
0.31%
ACE
Securities
Corp
Mortgage
Loan
Trust
Series
2007-D1
6.93
%,
02
/25/2038
(d),(f)
$
778
$
752
Mortgage
Backed
Securities
-
13.80%
EverBank
Mortgage
Loan
Trust
18-1
3.50
%,
02
/25/2048
(d),(f)
579
585
Fannie
Mae
Grantor
Trust
2005-T1
2.14
%,
05
/25/2035
204
203
1.00
x
1
Month
USD
LIBOR
+
0.35%
Fannie
Mae
Interest
Strip
3.50
%,
12
/25/2043
(d),(e)
1,438
223
Fannie
Mae
REMICS
2.18
%,
06
/25/2045
(e)
3,679
194
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
0.00%
3.00
%,
10
/25/2040
(e)
4,762
306
3.00
%,
04
/25/2042
894
912
3.00
%,
08
/25/2042
290
295
3.00
%,
02
/25/2043
420
430
3.00
%,
01
/25/2046
687
706
3.00
%,
03
/25/2046
653
664
3.00
%,
05
/25/2048
197
202
3.50
%,
01
/25/2040
(e)
2,197
134
3.50
%,
11
/25/2042
2,500
2,638
4.00
%,
12
/25/2039
(e)
1,050
62
4.00
%,
03
/25/2045
1,000
1,121
4.11
%,
03
/25/2042
(e)
1,352
245
(1.00)
x
1
Month
USD
LIBOR
+
5.90%
4.21
%,
10
/25/2046
(e)
699
149
(1.00)
x
1
Month
USD
LIBOR
+
6.00%
4.31
%,
08
/25/2043
(e)
1,711
362
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.41
%,
06
/25/2048
(e)
1,704
373
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.50
%,
04
/25/2045
(e)
2,935
566
7.00
%,
04
/25/2032
108
124
Freddie
Mac
REMICS
1.50
%,
04
/15/2028
867
854
2.20
%,
05
/15/2038
(e)
3,213
151
1.00
x
12-Month
Treasury
Avera
ge
Index
+
0.00%
2.50
%,
11
/15/2032
886
893
2.50
%,
02
/15/2043
869
875
3.00
%,
11
/15/2030
(e)
2,000
86
3.00
%,
11
/15/2035
950
955
3.00
%,
06
/15/2040
418
426
3.00
%,
10
/15/2041
852
870
3.00
%,
04
/15/2046
271
280
3.50
%,
03
/15/2029
308
326
3.50
%,
08
/15/2040
(e)
2,341
163
3.50
%,
05
/15/2043
1,011
1,033
3.50
%,
09
/15/2043
1,200
1,244
4.00
%,
05
/15/2039
4,200
4,337
Ginnie
Mae
3.50
%,
12
/20/2034
(e)
228
1
3.50
%,
05
/20/2039
73
73
3.50
%,
10
/20/2044
(e)
4,772
594
3.50
%,
11
/20/2045
930
955
4.00
%,
02
/20/2044
(e)
3,019
381
4.00
%,
04
/20/2044
(e)
1,549
182
4.00
%,
01
/20/2046
(e)
1,572
164
4.34
%,
06
/20/2046
(e)
688
131
(1.00)
x
1
Month
USD
LIBOR
+
6.10%
4.38
%,
12
/20/2043
(e)
1,521
336
(1.00)
x
1
Month
USD
LIBOR
+
6.14%
4.44
%,
08
/20/2042
(e)
1,273
215
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2019
See
accompanying
notes.
75
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Ginnie
Mae
(continued)
4.44
%,
09
/20/2047
(e)
$
780
$
143
(1.00)
x
1
Month
USD
LIBOR
+
6.20%
4.51
%,
08
/16/2045
(e)
487
96
(1.00)
x
1
Month
USD
LIBOR
+
6.25%
4.99
%,
11
/20/2045
(e)
720
150
(1.00)
x
1
Month
USD
LIBOR
+
6.75%
JP
Morgan
Mortgage
Trust
2016-4
3.50
%,
10
/25/2046
(d),(f)
676
678
JP
Morgan
Mortgage
Trust
2017-3
3.84
%,
08
/25/2047
(d),(f)
566
586
JP
Morgan
Mortgage
Trust
2018-8
4.00
%,
01
/25/2049
(d),(f)
724
734
New
Residential
Mortgage
Loan
Trust
2014-1
5.00
%,
01
/25/2054
(d),(f)
1,469
1,561
New
Residential
Mortgage
Loan
Trust
2015-2
5.53
%,
08
/25/2055
(d),(f)
1,073
1,157
Sequoia
Mortgage
Trust
2013-2
3.64
%,
02
/25/2043
(d)
702
717
Sequoia
Mortgage
Trust
2017-2
3.63
%,
02
/25/2047
(d),(f)
466
475
Sequoia
Mortgage
Trust
2017-3
3.80
%,
04
/25/2047
(d),(f)
467
476
Sequoia
Mortgage
Trust
2018-5
3.50
%,
05
/25/2048
(d),(f)
516
516
$
33,308
Other
Asset
Backed
Securities
-
0.48%
Chase
Funding
Trust
Series
2004-1
2.25
%,
12
/25/2033
97
94
1.00
x
1
Month
USD
LIBOR
+
0.46%
CNH
Equipment
Trust
2016-C
1.76
%,
09
/15/2023
500
499
Towd
Point
Mortgage
Trust
4.25
%,
10
/25/2053
(d),(f)
550
570
$
1,163
TOTAL
BONDS
$
67,340
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
69.76%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
14.38%
2.00
%,
10
/01/2031
$
671
$
667
2.50
%,
02
/01/2028
609
619
3.00
%,
02
/01/2027
215
221
3.00
%,
01
/01/2031
516
535
3.00
%,
01
/01/2033
894
924
3.00
%,
03
/01/2037
384
393
3.00
%,
08
/01/2042
684
706
3.00
%,
10
/01/2042
505
520
3.00
%,
10
/01/2042
962
992
3.00
%,
10
/01/2042
1,041
1,078
3.00
%,
05
/01/2043
679
700
3.00
%,
10
/01/2046
739
765
3.00
%,
01
/01/2047
956
990
3.50
%,
02
/01/2032
1,038
1,087
3.50
%,
04
/01/2042
1,470
1,549
3.50
%,
05
/01/2042
548
580
3.50
%,
07
/01/2042
2,003
2,113
3.50
%,
02
/01/2044
793
834
3.50
%,
08
/01/2045
823
878
3.50
%,
07
/01/2046
667
710
3.50
%,
01
/01/2047
1,819
1,930
3.50
%,
01
/01/2048
977
1,042
3.50
%,
04
/01/2049
2,009
2,120
4.00
%,
07
/01/2042
729
795
4.00
%,
01
/01/2043
922
988
4.00
%,
04
/01/2043
1,201
1,310
4.00
%,
06
/01/2043
1,155
1,237
4.00
%,
10
/01/2045
1,130
1,230
4.00
%,
08
/01/2047
1,384
1,507
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
4.00
%,
01
/01/2048
$
1,165
$
1,273
4.00
%,
06
/01/2048
1,340
1,453
4.23
%,
09
/01/2032
13
14
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.23%
4.50
%,
11
/01/2043
811
904
5.00
%,
10
/01/2025
98
105
5.00
%,
02
/01/2033
142
156
5.00
%,
06
/01/2033
170
185
5.00
%,
01
/01/2034
444
490
5.00
%,
07
/01/2035
20
23
5.00
%,
07
/01/2035
9
10
5.00
%,
07
/01/2035
89
98
5.00
%,
10
/01/2035
38
42
5.50
%,
03
/01/2033
97
108
5.50
%,
04
/01/2038
4
4
5.50
%,
05
/01/2038
35
39
6.00
%,
12
/01/2023
2
2
6.00
%,
05
/01/2031
11
12
6.00
%,
12
/01/2031
11
13
6.00
%,
09
/01/2032
6
7
6.00
%,
11
/01/2033
12
13
6.00
%,
11
/01/2033
49
55
6.00
%,
09
/01/2034
44
51
6.00
%,
02
/01/2035
38
42
6.00
%,
10
/01/2036
41
47
6.00
%,
03
/01/2037
39
43
6.00
%,
01
/01/2038
7
8
6.00
%,
01
/01/2038
75
87
6.00
%,
04
/01/2038
31
34
6.50
%,
08
/01/2021
1
1
6.50
%,
12
/01/2021
5
5
6.50
%,
04
/01/2022
8
8
6.50
%,
05
/01/2022
5
5
6.50
%,
05
/01/2023
6
6
6.50
%,
04
/01/2024
2
2
6.50
%,
04
/01/2026
2
2
6.50
%,
05
/01/2026
1
1
6.50
%,
05
/01/2026
2
3
6.50
%,
01
/01/2028
3
4
6.50
%,
03
/01/2028
2
2
6.50
%,
10
/01/2028
14
16
6.50
%,
11
/01/2028
3
3
6.50
%,
12
/01/2028
7
8
6.50
%,
03
/01/2029
3
3
6.50
%,
07
/01/2031
18
20
6.50
%,
08
/01/2031
5
5
6.50
%,
10
/01/2031
8
8
6.50
%,
10
/01/2031
7
8
6.50
%,
12
/01/2031
12
14
6.50
%,
02
/01/2032
12
13
6.50
%,
05
/01/2032
31
35
6.50
%,
04
/01/2035
6
6
7.00
%,
09
/01/2023
4
4
7.00
%,
12
/01/2023
2
2
7.00
%,
01
/01/2024
2
2
7.00
%,
09
/01/2027
3
3
7.00
%,
01
/01/2028
24
26
7.00
%,
04
/01/2028
13
14
7.00
%,
05
/01/2028
2
2
7.00
%,
10
/01/2031
5
6
7.00
%,
10
/01/2031
11
12
7.00
%,
04
/01/2032
43
49
7.50
%,
10
/01/2030
7
8
7.50
%,
02
/01/2031
8
9
7.50
%,
02
/01/2031
2
2
7.50
%,
02
/01/2031
4
4
8.00
%,
10
/01/2030
14
16
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2019
See
accompanying
notes.
76
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
(continued)
8.50
%,
07
/01/2029
$
16
$
17
$
34,692
Federal
National
Mortgage
Association
(FNMA)
-
0.53%
3.00
%,
04
/01/2043
862
880
3.61
%,
12
/01/2033
81
84
1.00
x
12
Month
USD
LIBOR
+
1.61%
4.56
%,
07
/01/2034
15
16
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.19%
4.77
%,
12
/01/2032
11
12
1.00
x
12
Month
USD
LIBOR
+
1.64%
5.50
%,
05
/01/2033
14
14
6.00
%,
05
/01/2037
161
177
6.50
%,
08
/01/2025
15
17
6.50
%,
11
/01/2032
14
15
7.00
%,
08
/01/2028
14
16
7.00
%,
12
/01/2028
11
13
7.50
%,
11
/01/2029
12
12
8.00
%,
05
/01/2027
7
7
8.00
%,
09
/01/2027
1
1
8.50
%,
10
/01/2027
24
24
$
1,288
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
-
37.84%
2.00
%,
02
/01/2032
406
403
2.50
%,
06
/01/2027
976
990
2.50
%,
08
/01/2028
662
673
2.50
%,
12
/01/2031
787
799
2.50
%,
09
/01/2032
536
545
3.00
%,
05
/01/2029
764
791
3.00
%,
08
/01/2031
1,422
1,473
3.00
%,
10
/01/2036
584
603
3.00
%,
10
/01/2042
1,416
1,462
3.00
%,
11
/01/2042
1,541
1,591
3.00
%,
12
/01/2042
1,379
1,424
3.00
%,
02
/01/2043
1,009
1,044
3.00
%,
06
/01/2043
1,722
1,777
3.00
%,
08
/01/2043
1,197
1,235
3.00
%,
09
/01/2046
1,420
1,467
3.00
%,
10
/01/2046
978
1,006
3.00
%,
11
/01/2046
1,479
1,530
3.00
%,
01
/01/2047
951
984
3.00
%,
01
/01/2047
918
950
3.00
%,
12
/01/2049
1,440
1,463
3.50
%,
08
/01/2031
726
762
3.50
%,
02
/01/2033
1,142
1,198
3.50
%,
09
/01/2033
1,598
1,676
3.50
%,
06
/01/2039
598
624
3.50
%,
02
/01/2042
1,076
1,153
3.50
%,
09
/01/2042
1,780
1,895
3.50
%,
11
/01/2042
1,188
1,264
3.50
%,
12
/01/2042
1,296
1,382
3.50
%,
02
/01/2043
464
497
3.50
%,
09
/01/2044
1,830
1,961
3.50
%,
10
/01/2044
583
625
3.50
%,
11
/01/2044
559
599
3.50
%,
03
/01/2045
567
604
3.50
%,
03
/01/2045
1,349
1,427
3.50
%,
06
/01/2045
935
1,002
3.50
%,
09
/01/2045
827
881
3.50
%,
10
/01/2045
642
689
3.50
%,
11
/01/2045
638
680
3.50
%,
01
/01/2046
644
690
3.50
%,
03
/01/2046
457
490
3.50
%,
04
/01/2046
987
1,058
3.50
%,
03
/01/2047
970
1,040
3.50
%,
10
/01/2047
710
761
3.50
%,
11
/01/2048
1,954
2,085
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
3.50
%,
05
/01/2049
$
928
$
986
4.00
%,
01
/01/2034
483
515
4.00
%,
10
/01/2037
875
927
4.00
%,
02
/01/2041
1,305
1,406
4.00
%,
02
/01/2042
780
844
4.00
%,
08
/01/2043
451
491
4.00
%,
10
/01/2043
366
391
4.00
%,
04
/01/2044
301
328
4.00
%,
08
/01/2044
500
546
4.00
%,
10
/01/2044
1,506
1,611
4.00
%,
11
/01/2044
486
533
4.00
%,
12
/01/2044
807
885
4.00
%,
02
/01/2045
838
920
4.00
%,
08
/01/2045
781
857
4.00
%,
09
/01/2045
1,783
1,957
4.00
%,
05
/01/2046
1,466
1,595
4.00
%,
07
/01/2046
673
739
4.00
%,
08
/01/2046
1,537
1,652
4.00
%,
07
/01/2047
1,003
1,100
4.00
%,
10
/01/2047
892
970
4.00
%,
12
/01/2047
812
889
4.00
%,
03
/01/2049
1,018
1,109
4.00
%,
07
/01/2049
1,967
2,128
4.00
%,
07
/01/2049
1,934
2,091
4.50%,
08/01/2039
1,549
1,706
4.50
%,
03
/01/2042
390
434
4.50
%,
09
/01/2043
1,600
1,784
4.50
%,
10
/01/2043
855
954
4.50
%,
11
/01/2043
958
1,068
4.50
%,
09
/01/2045
695
771
4.50
%,
10
/01/2045
897
1,000
4.50
%,
11
/01/2045
1,323
1,466
4.50
%,
08
/01/2048
972
1,075
4.50
%,
09
/01/2048
1,754
1,949
4.50
%,
12
/01/2048
1,324
1,450
5.00
%,
05
/01/2033
1,055
1,167
5.00
%,
04
/01/2035
102
113
5.00
%,
04
/01/2035
80
89
5.00
%,
07
/01/2035
5
5
5.00
%,
02
/01/2038
345
384
5.00
%,
02
/01/2040
1,211
1,359
5.00
%,
07
/01/2041
958
1,075
5.50
%,
05
/01/2024
6
6
5.50
%,
06
/01/2033
52
58
5.50
%,
02
/01/2037
3
4
5.50
%,
03
/01/2038
92
103
6.00
%,
06
/01/2022
8
9
6.00
%,
11
/01/2028
12
13
6.00
%,
12
/01/2031
5
6
6.00
%,
01
/01/2033
44
50
6.00
%,
07
/01/2037
121
138
6.00
%,
11
/01/2037
3
3
6.00
%,
12
/01/2037
8
8
6.00
%,
03
/01/2038
54
62
6.50
%,
11
/01/2023
15
16
6.50
%,
05
/01/2024
5
5
6.50
%,
09
/01/2024
7
7
6.50
%,
07
/01/2025
9
10
6.50
%,
02
/01/2026
3
3
6.50
%,
03
/01/2026
1
1
6.50
%,
05
/01/2026
2
3
6.50
%,
06
/01/2026
1
1
6.50
%,
07
/01/2028
9
10
6.50
%,
09
/01/2028
15
17
6.50
%,
02
/01/2029
2
2
6.50
%,
03
/01/2029
5
5
6.50
%,
04
/01/2029
4
5
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2019
See
accompanying
notes.
77
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Federal
National
Mortgage
Association
(FNMA)/Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
Uniform
Mortgage-Backed
Security
(continued)
6.50
%,
06
/01/2031
$
10
$
11
6.50
%,
06
/01/2031
9
10
6.50
%,
01
/01/2032
4
4
6.50
%,
04
/01/2032
12
14
6.50
%,
08
/01/2032
8
9
6.50
%,
02
/01/2033
9
9
6.50
%,
12
/01/2036
32
37
6.50
%,
07
/01/2037
25
29
6.50
%,
07
/01/2037
14
15
6.50
%,
02
/01/2038
26
30
7.00
%,
10
/01/2029
12
14
7.00
%,
05
/01/2031
4
4
7.00
%,
11
/01/2031
19
21
8.00
%,
06
/01/2030
2
2
$
91,326
Government
National
Mortgage
Association
(GNMA)
-
8.81%
3.00
%,
11
/15/2042
818
843
3.00
%,
12
/15/2042
1,532
1,580
3.00
%,
02
/15/2043
1,346
1,395
3.00
%,
05
/15/2043
1,848
1,912
3.00
%,
12
/20/2046
1,170
1,208
3.00
%,
07
/20/2047
2,248
2,319
3.50
%,
01
/15/2043
1,117
1,187
3.50
%,
05
/15/2043
1,255
1,332
3.50
%,
06
/20/2043
744
788
3.50
%,
04
/20/2045
707
740
3.50
%,
06
/20/2046
102
106
3.50
%,
02
/20/2047
771
816
3.50
%,
04
/20/2047
1,833
1,907
3.50
%,
05
/20/2047
913
963
3.50
%,
11
/20/2047
704
735
4.00
%,
08
/15/2041
916
990
4.00
%,
07
/20/2047
853
894
4.50
%,
07
/15/2040
468
511
5.00
%,
09
/15/2033
5
5
5.00
%,
02
/15/2034
267
295
5.00
%,
09
/15/2039
34
38
5.50
%,
11
/15/2033
22
23
5.50
%,
05
/20/2035
114
127
5.50
%,
03
/15/2039
85
91
6.00
%,
04
/20/2026
4
4
6.00
%,
05
/20/2026
3
3
6.00
%,
03
/20/2028
2
2
6.00
%,
06
/20/2028
12
14
6.00
%,
07
/20/2028
6
7
6.00
%,
02
/20/2029
6
7
6.00
%,
03
/20/2029
13
15
6.00
%,
07
/20/2029
14
15
6.00
%,
07
/20/2033
102
117
6.50
%,
12
/20/2025
7
8
6.50
%,
02
/20/2026
5
5
6.50
%,
03
/20/2031
9
11
6.50
%,
04
/20/2031
10
12
7.00
%,
01
/15/2028
2
3
7.00
%,
01
/15/2028
4
4
7.00
%,
01
/15/2028
1
1
7.00
%,
01
/15/2028
1
1
7.00
%,
01
/15/2028
1
1
7.00
%,
03
/15/2028
54
55
7.00
%,
05
/15/2028
5
5
7.00
%,
01
/15/2029
11
12
7.00
%,
03
/15/2029
4
4
7.00
%,
05
/15/2031
7
8
7.00
%,
09
/15/2031
29
33
7.00
%,
06
/15/2032
84
92
7.50
%,
04
/15/2023
5
5
7.50
%,
09
/15/2023
1
1
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Government
National
Mortgage
Association
(GNMA)
(continued)
7.50
%,
09
/15/2023
$
1
$
1
7.50
%,
10
/15/2023
3
3
7.50
%,
11
/15/2023
2
2
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
$
21,261
U.S.
Treasury
-
7.25%
1.13
%,
03
/31/2020
2,200
2,197
1.25
%,
01
/31/2020
2,400
2,399
1.25
%,
02
/29/2020
(g)
2,300
2,298
2.13
%,
12
/31/2022
2,400
2,437
3.13
%,
05
/15/2021
2,500
2,551
4.50
%,
02
/15/2036
1,000
1,328
5.25
%,
11
/15/2028
1,000
1,274
6.25
%,
08
/15/2023
2,600
3,020
$
17,504
U.S.
Treasury
Strip
-
0.95%
0.00
%,
05
/15/2020
(g),(h),(
i
)
2,300
2,28
7
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
168,35
8
Total
Investments
$
244,85
8
Other
Assets
and
Liabilities
- (
1.46)%
(3,52
6
)
TOTAL
NET
ASSETS
-
100.00%
$
241,332
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$2,514
or
1.04%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
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.
(e)
Security
is
an
Interest
Only
Strip.
(f)
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
$10,171
or
4.21%
of
net
assets.
(g)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(h)
Non-income
producing
security
(
i
)
Security
is
a
Principal
Only
Strip.
Portfolio
Summary (
unaudited)
Sector
Percent
Mortgage
Securities
88.56%
Government
8.20%
Money
Market
Funds
3.80%
Asset
Backed
Securities
0.90%
Other
Assets
and
Liabilities
(
1.46)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Government
&
High
Quality
Bond
Account
December
31,
2019
See
accompanying
notes.
78
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
1,278
$
71,138
$
65,770
$
6,646
$
1,278
$
71,138
$
65,770
$
6,646
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
9
3
$
—
$
—
$
—
$
9
3
$
—
$
—
$
—
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
10
Year
Note;
March
2020
Short
44
$
5,651
$
54
US
Long
Bond;
March
2020
Short
6
935
21
US
Ultra
Bond;
March
2020
Short
19
3,451
110
Total
$
185
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
79
INVESTMENT
COMPANIES
-
1.30%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.21%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
1,023,382
$
1,023
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
5,082,603
5,083
$
6,106
Principal
Exchange-Traded
Funds
-
0.09%
Principal
Millennials
Index
ETF
(
c),(d)
4,789
199
Principal
Price
Setters
Index
ETF
(
c),(d)
1,616
66
Principal
Sustainable
Momentum
Index
ETF
(
c)
749
21
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
c),(d)
5,280
166
$
452
TOTAL
INVESTMENT
COMPANIES
$
6,558
COMMON
STOCKS
-
97.81%
Shares
Held
Value
(000's)
Advertising
-
0.01%
Interpublic
Group
of
Cos
Inc/The
306
7
Omnicom
Group
Inc
401
33
Trade
Desk
Inc/
The
(
e)
132
34
$
74
Aerospace
&
Defense
-
2.91%
Boeing
Co/The
31,073
10,122
General
Dynamics
Corp
182
32
HEICO
Corp
153
17
HEICO
Corp
-
Class
A
279
25
L3Harris
Technologies
Inc
18,612
3,683
Lockheed
Martin
Corp
832
324
Northrop
Grumman
Corp
562
193
Raytheon
Co
658
145
Spirit
AeroSystems
Holdings
Inc
317
23
TransDigm
Group
Inc
128
72
$
14,636
Agriculture
-
0.20%
Altria
Group
Inc
3,740
187
Philip
Morris
International
Inc
9,501
808
$
995
Airlines
-
0.02%
Alaska
Air
Group
Inc
221
15
Delta
Air
Lines
Inc
763
45
Southwest
Airlines
Co
955
51
United
Airlines
Holdings
Inc
(
e)
194
17
$
128
Apparel
-
0.52%
Carter's
Inc
103
11
Columbia
Sportswear
Co
116
12
Hanesbrands
Inc
985
15
NIKE
Inc
24,208
2,452
Skechers
U.S.A.
Inc
(
e)
235
10
VF
Corp
988
99
$
2,599
Automobile
Manufacturers
-
0.03%
Tesla
Inc
(
e)
319
133
Automobile
Parts
&
Equipment
-
0.66%
Allison
Transmission
Holdings
Inc
423
20
Aptiv
PLC
34,316
3,259
WABCO
Holdings
Inc
(
e)
153
21
$
3,300
Banks
-
0.01%
CIT
Group
Inc
81
4
Comerica
Inc
67
5
Prosperity
Bancshares
Inc
48
4
Signature
Bank/New
York
NY
98
13
SVB
Financial
Group
(
e)
20
5
Synovus
Financial
Corp
102
4
Western
Alliance
Bancorp
76
4
$
39
Beverages
-
1.39%
Brown-Forman
Corp
-
A
Shares
182
12
Brown-Forman
Corp
-
B
Shares
86,940
5,877
Coca-Cola
Co/The
8,674
480
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Beverages
(continued)
Monster
Beverage
Corp
(
e)
1,209
$
77
PepsiCo
Inc
3,881
530
$
6,976
Biotechnology
-
2.29%
Alexion
Pharmaceuticals
Inc
(
e)
9,129
987
Alnylam
Pharmaceuticals
Inc
(
e)
272
31
Amgen
Inc
1,696
409
Biogen
Inc
(
e)
194
58
BioMarin
Pharmaceutical
Inc
(
e)
548
46
Exact
Sciences
Corp
(
e)
427
39
Exelixis
Inc
(
e)
426
8
Gilead
Sciences
Inc
561
36
Illumina
Inc
(
e)
17,652
5,855
Incyte
Corp
(
e)
545
48
Ionis
Pharmaceuticals
Inc
(
e)
391
24
Moderna
Inc
(
e)
640
13
Regeneron
Pharmaceuticals
Inc
(
e)
50
19
Sage
Therapeutics
Inc
(
e)
176
13
Seattle
Genetics
Inc
(
e)
352
40
Vertex
Pharmaceuticals
Inc
(
e)
17,645
3,864
$
11,490
Building
Materials
-
0.03%
Armstrong
World
Industries
Inc
194
18
Fortune
Brands
Home
&
Security
Inc
202
13
Lennox
International
Inc
110
27
Martin
Marietta
Materials
Inc
68
19
Vulcan
Materials
Co
383
55
$
132
Chemicals
-
1.71%
Air
Products
&
Chemicals
Inc
70
16
Axalta
Coating
Systems
Ltd
(
e)
313
10
CF
Industries
Holdings
Inc
127
6
Ecolab
Inc
573
111
NewMarket
Corp
29
14
PPG
Industries
Inc
401
54
RPM
International
Inc
119
9
Sherwin-Williams
Co/The
14,333
8,363
$
8,583
Commercial
Services
-
5.16%
Automatic
Data
Processing
Inc
989
169
Avalara
Inc
(
e)
179
13
Booz
Allen
Hamilton
Holding
Corp
499
35
Bright
Horizons
Family
Solutions
Inc
(
e)
205
31
Cintas
Corp
24,920
6,706
CoreLogic
Inc/United
States
155
7
CoStar
Group
Inc
(
e)
2,774
1,660
Equifax
Inc
337
47
Euronet
Worldwide
Inc
(
e)
190
30
FleetCor
Technologies
Inc
(
e)
280
81
Gartner
Inc
(
e)
295
45
Global
Payments
Inc
33,538
6,123
Grand
Canyon
Education
Inc
(
e)
53
5
H&R
Block
Inc
276
6
IHS
Markit
Ltd
(
e)
830
63
MarketAxess
Holdings
Inc
115
44
Moody's
Corp
373
89
Morningstar
Inc
78
12
Paylocity
Holding
Corp
(
e)
136
16
PayPal
Holdings
Inc
(
e)
94,571
10,229
Robert
Half
International
Inc
408
26
Rollins
Inc
522
17
S&P
Global
Inc
826
225
Sabre
Corp
412
9
Service
Corp
International/US
288
13
ServiceMaster
Global
Holdings
Inc
(
e)
148
6
Square
Inc
(
e)
1,076
67
TransUnion
627
54
Verisk
Analytics
Inc
521
78
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
80
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Commercial
Services
(continued)
WEX
Inc
(
e)
152
$
32
$
25,938
Computers
-
3.85%
Accenture
PLC
-
Class
A
2,436
513
Apple
Inc
40,681
11,946
Cognizant
Technology
Solutions
Corp
1,528
95
Dell
Technologies
Inc
(
e)
424
22
EPAM
Systems
Inc
(
e)
184
39
Fortinet
Inc
(
e)
493
53
Genpact
Ltd
147,165
6,205
HP
Inc
5,783
119
International
Business
Machines
Corp
2,278
305
NCR
Corp
(
e)
505
18
NetApp
Inc
819
51
$
19,366
Consumer
Products
-
0.03%
Avery
Dennison
Corp
264
35
Church
&
Dwight
Co
Inc
779
55
Clorox
Co/The
328
50
$
140
Cosmetics
&
Personal
Care
-
1.44%
Estee
Lauder
Cos
Inc/The
34,819
7,191
Procter
&
Gamble
Co/The
326
41
$
7,232
Distribution
&
Wholesale
-
0.04%
Copart
Inc
(
e)
660
60
Fastenal
Co
1,673
62
LKQ
Corp
(
e)
286
10
Pool
Corp
138
29
WW
Grainger
Inc
145
49
$
210
Diversified
Financial
Services
-
5.41%
Alliance
Data
Systems
Corp
60
7
American
Express
Co
1,341
167
Ameriprise
Financial
Inc
75
13
Cboe
Global
Markets
Inc
112
13
Charles
Schwab
Corp/The
31,884
1,517
Credit
Acceptance
Corp
(
e)
30
13
Discover
Financial
Services
367
31
Evercore
Inc
-
Class
A
70
5
Intercontinental
Exchange
Inc
15,610
1,445
Lazard
Ltd
173
7
LPL
Financial
Holdings
Inc
271
25
Mastercard
Inc
3,072
917
Raymond
James
Financial
Inc
121
11
SEI
Investments
Co
211
14
Synchrony
Financial
613
22
T
Rowe
Price
Group
Inc
216
26
TD
Ameritrade
Holding
Corp
18,179
904
Visa
Inc
116,079
21,811
Western
Union
Co/The
499
13
XP
Inc
(
e)
6,154
237
$
27,198
Electric
-
0.94%
NextEra
Energy
Inc
12,592
3,049
Sempra
Energy
11,029
1,671
$
4,720
Electrical
Components
&
Equipment
-
0.02%
AMETEK
Inc
603
60
Emerson
Electric
Co
138
11
Hubbell
Inc
121
18
Universal
Display
Corp
146
30
$
119
Electronics
-
4.39%
Agilent
Technologies
Inc
149
13
Allegion
PLC
256
32
Amphenol
Corp
57,986
6,276
FLIR
Systems
Inc
117
6
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Electronics
(continued)
Fortive
Corp
83,420
$
6,372
Honeywell
International
Inc
7,332
1,298
Jabil
Inc
257
11
Keysight
Technologies
Inc
(
e)
611
63
Mettler-Toledo
International
Inc
(
e)
80
63
National
Instruments
Corp
119
5
PerkinElmer
Inc
121
12
Roper
Technologies
Inc
22,096
7,827
Sensata
Technologies
Holding
PLC
(
e)
261
14
Trimble
Inc
(
e)
264
11
Waters
Corp
(
e)
217
51
Woodward
Inc
172
20
$
22,074
Entertainment
-
0.01%
Live
Nation
Entertainment
Inc
(
e)
438
31
Six
Flags
Entertainment
Corp
91
4
Vail
Resorts
Inc
125
30
$
65
Environmental
Control
-
0.03%
Republic
Services
Inc
106
9
Waste
Management
Inc
1,243
142
$
151
Food
-
0.07%
Campbell
Soup
Co
346
17
Hershey
Co/The
405
60
Kellogg
Co
322
22
Lamb
Weston
Holdings
Inc
138
12
McCormick
&
Co
Inc/MD
249
42
Pilgrim's
Pride
Corp
(
e)
154
5
Post
Holdings
Inc
(
e)
112
12
Sprouts
Farmers
Market
Inc
(
e)
357
7
Sysco
Corp
1,972
169
TreeHouse
Foods
Inc
(
e)
82
4
$
350
Hand
&
Machine
Tools
-
0.00%
Lincoln
Electric
Holdings
Inc
207
20
Healthcare
-
Products
-
8.06%
Abbott
Laboratories
1,697
147
Align
Technology
Inc
(
e)
249
69
Avantor
Inc
(
e)
78,469
1,424
Baxter
International
Inc
515
43
Bio-Techne
Corp
124
27
Boston
Scientific
Corp
(
e)
3,157
143
Bruker
Corp
375
19
Cantel
Medical
Corp
112
8
Cooper
Cos
Inc/The
37
12
Danaher
Corp
39,189
6,015
Edwards
Lifesciences
Corp
(
e)
24,147
5,634
Henry
Schein
Inc
(
e)
143
9
Hill-Rom
Holdings
Inc
146
16
Hologic
Inc
(
e)
746
39
ICU
Medical
Inc
(
e)
33
6
IDEXX
Laboratories
Inc
(
e)
273
71
Intuitive
Surgical
Inc
(
e)
20,947
12,383
Masimo
Corp
(
e)
163
26
Penumbra
Inc
(
e)
104
17
ResMed
Inc
457
71
STERIS
PLC
51
8
Stryker
Corp
24,452
5,134
Teleflex
Inc
151
57
Thermo
Fisher
Scientific
Inc
27,943
9,077
Varian
Medical
Systems
Inc
(
e)
308
44
West
Pharmaceutical
Services
Inc
197
30
$
40,529
Healthcare
-
Services
-
2.41%
Anthem
Inc
448
135
Centene
Corp
(
e)
25,778
1,621
Charles
River
Laboratories
International
Inc
(
e)
177
27
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
81
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Healthcare
-
Services
(continued)
Chemed
Corp
58
$
25
Encompass
Health
Corp
210
15
HCA
Healthcare
Inc
28,050
4,146
Humana
Inc
3,812
1,397
IQVIA
Holdings
Inc
(
e)
260
40
Laboratory
Corp
of
America
Holdings
(
e)
52
9
Molina
Healthcare
Inc
(
e)
184
25
UnitedHealth
Group
Inc
15,798
4,645
WellCare
Health
Plans
Inc
(
e)
153
50
$
12,135
Home
Builders
-
0.01%
Lennar
Corp
-
A
Shares
423
23
Lennar
Corp
-
B
Shares
129
6
NVR
Inc
(
e)
11
42
$
71
Home
Furnishings
-
0.00%
Dolby
Laboratories
Inc
109
8
Tempur
Sealy
International
Inc
(
e)
178
15
$
23
Housewares
-
0.01%
Scotts
Miracle-Gro
Co/The
143
15
Toro
Co/The
379
30
$
45
Insurance
-
0.10%
Alleghany
Corp
(
e)
5
4
Aon
PLC
531
111
Arch
Capital
Group
Ltd
(
e)
244
10
Arthur
J
Gallagher
&
Co
138
13
Athene
Holding
Ltd
(
e)
234
11
Axis
Capital
Holdings
Ltd
65
4
Brown
&
Brown
Inc
97
4
Erie
Indemnity
Co
63
10
Everest
Re
Group
Ltd
47
13
Kemper
Corp
70
5
Markel
Corp
(
e)
3
3
Marsh
&
McLennan
Cos
Inc
1,557
173
Primerica
Inc
96
13
Progressive
Corp/The
895
65
RenaissanceRe
Holdings
Ltd
62
12
Travelers
Cos
Inc/The
311
43
Voya
Financial
Inc
74
5
$
499
Internet
-
20.75%
Alibaba
Group
Holding
Ltd
ADR
(e)
51,770
10,980
Alphabet
Inc
-
A
Shares
(
e)
10,037
13,443
Alphabet
Inc
-
C
Shares
(
e)
10,737
14,356
Amazon.com
Inc
(
e)
15,464
28,576
Anaplan
Inc
(
e)
293
15
Booking
Holdings
Inc
(
e)
4,198
8,621
CDW
Corp/DE
485
69
eBay
Inc
2,558
92
Expedia
Group
Inc
394
43
F5
Networks
Inc
(
e)
205
29
Facebook
Inc
(
e)
61,257
12,573
FireEye
Inc
(
e)
715
12
GoDaddy
Inc
(
e)
591
40
IAC/
InterActiveCorp
(
e)
8,418
2,097
Match
Group
Inc
(
d),(e)
219
18
Netflix
Inc
(
e)
10,290
3,330
Okta
Inc
(
e)
4,781
551
Palo
Alto
Networks
Inc
(
e)
302
70
Proofpoint
Inc
(
e)
196
23
RingCentral
Inc
(
e)
237
40
Spotify
Technology
SA
(
e)
16,601
2,483
Tencent
Holdings
Ltd
ADR
112,363
5,395
Tencent
Music
Entertainment
Group
ADR
(e)
76,275
895
TripAdvisor
Inc
397
12
Twitter
Inc
(
e)
2,380
76
Uber
Technologies
Inc
(
e)
13,831
411
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Internet
(continued)
VeriSign
Inc
(
e)
249
$
48
$
104,298
Leisure
Products
&
Services
-
0.01%
Norwegian
Cruise
Line
Holdings
Ltd
(
e)
212
12
Planet
Fitness
Inc
(
e)
303
23
Polaris
Inc
188
19
$
54
Lodging
-
0.63%
Choice
Hotels
International
Inc
(
d)
103
11
Hilton
Worldwide
Holdings
Inc
18,141
2,011
Las
Vegas
Sands
Corp
5,396
373
Marriott
International
Inc/MD
907
137
MGM
Resorts
International
258
9
Wyndham
Hotels
&
Resorts
Inc
161
10
Wynn
Resorts
Ltd
4,407
612
$
3,163
Machinery
-
Construction
&
Mining
-
0.75%
BWX
Technologies
Inc
60,279
3,742
Caterpillar
Inc
96
14
$
3,756
Machinery
-
Diversified
-
0.04%
Deere
&
Co
78
14
Dover
Corp
235
27
Graco
Inc
590
31
IDEX
Corp
142
24
Nordson
Corp
184
30
Rockwell
Automation
Inc
374
76
$
202
Media
-
0.15%
Altice
USA
Inc
(
e)
1,026
28
AMC
Networks
Inc
(
e)
214
8
Cable
One
Inc
15
22
Charter
Communications
Inc
(
e)
213
103
Comcast
Corp
-
Class
A
10,204
459
Fox
Corp
-
A
Shares
221
8
Fox
Corp
-
B
Shares
176
6
New
York
Times
Co/The
179
6
Nexstar
Media
Group
Inc
132
16
Sinclair
Broadcast
Group
Inc
286
10
Sirius
XM
Holdings
Inc
4,770
34
ViacomCBS
Inc
971
41
$
741
Mining
-
0.00%
Southern
Copper
Corp
278
12
Miscellaneous
Manufacturers
-
0.12%
3M
Co
973
172
AO
Smith
Corp
149
7
AptarGroup
Inc
108
12
Carlisle
Cos
Inc
177
29
Donaldson
Co
Inc
438
25
Hexcel
Corp
295
22
Illinois
Tool
Works
Inc
1,146
206
Ingersoll-Rand
PLC
897
119
$
592
Office
&
Business
Equipment
-
0.01%
Zebra
Technologies
Corp
(
e)
183
47
Oil
&
Gas
-
0.28%
Cabot
Oil
&
Gas
Corp
905
16
Concho
Resources
Inc
15,448
1,353
Parsley
Energy
Inc
637
12
Pioneer
Natural
Resources
Co
233
35
$
1,416
Packaging
&
Containers
-
0.02%
Ball
Corp
1,047
68
Berry
Global
Group
Inc
(
e)
232
11
Crown
Holdings
Inc
(
e)
266
19
$
98
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
82
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Pharmaceuticals
-
5.70%
AbbVie
Inc
4,549
$
403
Agios
Pharmaceuticals
Inc
(
e)
21
1
AmerisourceBergen
Corp
519
44
Becton
Dickinson
and
Co
15,264
4,151
Bristol-Myers
Squibb
Co
5,292
340
Cigna
Corp
23,302
4,765
DexCom
Inc
(
e)
33,913
7,418
Eli
Lilly
&
Co
1,957
257
Herbalife
Nutrition
Ltd
(
e)
116
5
Horizon
Therapeutics
Plc
(
e)
155
6
Jazz
Pharmaceuticals
PLC
(
e)
182
27
Johnson
&
Johnson
1,686
246
McKesson
Corp
94
13
Merck
&
Co
Inc
8,214
747
Neurocrine
Biosciences
Inc
(
e)
276
30
PRA
Health
Sciences
Inc
(
e)
227
25
Sarepta
Therapeutics
Inc
(
e)
215
28
Zoetis
Inc
76,667
10,147
$
28,653
Pipelines
-
0.01%
Cheniere
Energy
Inc
(
e)
425
26
Equitrans
Midstream
Corp
204
3
ONEOK
Inc
401
30
$
59
Real
Estate
-
0.01%
CBRE
Group
Inc
(
e)
399
25
Jones
Lang
LaSalle
Inc
30
5
$
30
REITs
-
1.96%
American
Homes
4
Rent
452
12
American
Tower
Corp
1,567
360
Americold
Realty
Trust
625
22
CoreSite
Realty
Corp
108
12
Crown
Castle
International
Corp
1,605
228
Equinix
Inc
190
111
Equity
LifeStyle
Properties
Inc
553
39
Extra
Space
Storage
Inc
321
34
Lamar
Advertising
Co
273
24
Public
Storage
255
54
SBA
Communications
Corp
36,680
8,840
Simon
Property
Group
Inc
619
92
Sun
Communities
Inc
80
12
UDR
Inc
79
4
$
9,844
Retail
-
4.52%
Advance
Auto
Parts
Inc
76
12
AutoZone
Inc
(
e)
78
93
Best
Buy
Co
Inc
198
17
Burlington
Stores
Inc
(
e)
218
50
CarMax
Inc
(
e)
275
24
Carvana
Co
(
e)
6,870
632
Casey's
General
Stores
Inc
47
8
Chipotle
Mexican
Grill
Inc
(
e)
82
69
Costco
Wholesale
Corp
17,770
5,223
Darden
Restaurants
Inc
414
45
Dollar
General
Corp
21,722
3,388
Dollar
Tree
Inc
(
e)
426
40
Domino's
Pizza
Inc
138
41
Dunkin'
Brands
Group
Inc
293
22
Home
Depot
Inc/The
1,971
430
Lowe's
Cos
Inc
2,483
297
Lululemon
Athletica
Inc
(
e)
6,319
1,464
McDonald's
Corp
422
83
O'Reilly
Automotive
Inc
(
e)
250
110
Restaurant
Brands
International
Inc
16,965
1,082
Ross
Stores
Inc
23,937
2,787
Starbucks
Corp
3,786
333
Target
Corp
159
20
TJX
Cos
Inc/The
101,440
6,194
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Retail
(continued)
Tractor
Supply
Co
403
$
38
Ulta
Beauty
Inc
(
e)
182
46
Wendy's
Co/The
752
17
Williams-Sonoma
Inc
108
8
Yum
China
Holdings
Inc
984
47
Yum!
Brands
Inc
925
93
$
22,713
Semiconductors
-
2.79%
Advanced
Micro
Devices
Inc
(
e)
39,396
1,807
Analog
Devices
Inc
112
13
Applied
Materials
Inc
1,138
70
ASML
Holding
NV
-
NY
Reg
Shares
10,584
3,132
Broadcom
Inc
879
278
Entegris
Inc
484
24
KLA
Corp
516
92
Lam
Research
Corp
808
236
Marvell
Technology
Group
Ltd
73,665
1,957
Maxim
Integrated
Products
Inc
388
24
Microchip
Technology
Inc
232
24
NVIDIA
Corp
1,327
312
NXP
Semiconductors
NV
42,484
5,407
QUALCOMM
Inc
2,767
244
Skyworks
Solutions
Inc
77
9
Teradyne
Inc
599
41
Texas
Instruments
Inc
2,133
274
Xilinx
Inc
820
80
$
14,024
Shipbuilding
-
0.01%
Huntington
Ingalls
Industries
Inc
111
28
Software
-
17.50%
Activision
Blizzard
Inc
106
6
Adobe
Inc
(
e)
14,734
4,859
Akamai
Technologies
Inc
(
e)
515
45
Alteryx
Inc
(
d),(e)
170
17
ANSYS
Inc
(
e)
279
72
Aspen
Technology
Inc
(
e)
250
30
Atlassian
Corp
PLC
(
e)
2,529
304
Autodesk
Inc
(
e)
43,806
8,037
Black
Knight
Inc
(
e)
519
34
Broadridge
Financial
Solutions
Inc
395
49
Cadence
Design
Systems
Inc
(
e)
937
65
CDK
Global
Inc
465
25
Ceridian
HCM
Holding
Inc
(
e)
261
18
Cerner
Corp
1,036
76
Citrix
Systems
Inc
395
44
Coupa
Software
Inc
(
e)
205
30
DocuSign
Inc
(
e)
503
37
Dropbox
Inc
-
A
Shares
(
e)
856
15
Electronic
Arts
Inc
(
e)
65,512
7,043
Fair
Isaac
Corp
(
e)
102
38
Fidelity
National
Information
Services
Inc
11,397
1,585
Fiserv
Inc
(
e)
1,283
148
Guidewire
Software
Inc
(
e)
273
30
Intuit
Inc
44,339
11,613
Jack
Henry
&
Associates
Inc
242
35
Manhattan
Associates
Inc
(
e)
273
22
Microsoft
Corp
197,825
31,199
MSCI
Inc
254
66
Oracle
Corp
8,443
447
Paychex
Inc
1,050
89
Paycom
Software
Inc
(
e)
2,362
626
Pegasystems
Inc
158
13
PTC
Inc
(
e)
351
26
RealPage
Inc
(
e)
304
16
salesforce.com
Inc
(
e)
63,544
10,336
ServiceNow
Inc
(
e)
9,157
2,585
Slack
Technologies
Inc
(
d),(e)
28,717
646
SolarWinds
Corp
(
e)
312
6
Splunk
Inc
(
e)
19,967
2,990
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
83
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
SS&C
Technologies
Holdings
Inc
693
$
43
Stripe
Inc
-
Class
B
(
e),(f),(g)
5,754
90
Synopsys
Inc
(
e)
497
69
Take-Two
Interactive
Software
Inc
(
e)
190
23
Teradata
Corp
(
e)
483
13
Tyler
Technologies
Inc
(
e)
133
40
Veeva
Systems
Inc
(
e)
413
58
VMware
Inc
(
e)
16,025
2,432
Workday
Inc
(
e)
10,831
1,781
Zoom
Video
Communications
Inc
(
e)
1,200
82
Zynga
Inc
(
e)
1,173
7
$
87,960
Telecommunications
-
0.18%
Arista
Networks
Inc
(
e)
197
40
Cisco
Systems
Inc
15,519
744
Motorola
Solutions
Inc
402
65
Switch
Inc
536
8
T-Mobile
US
Inc
(
e)
544
43
$
900
Toys,
Games
&
Hobbies
-
0.01%
Hasbro
Inc
419
44
Transportation
-
0.60%
CSX
Corp
1,187
86
Expeditors
International
of
Washington
Inc
428
33
JB
Hunt
Transport
Services
Inc
9,709
1,133
Landstar
System
Inc
138
16
Norfolk
Southern
Corp
6,064
1,178
Old
Dominion
Freight
Line
Inc
104
20
Union
Pacific
Corp
1,611
291
United
Parcel
Service
Inc
2,333
273
$
3,030
TOTAL
COMMON
STOCKS
$
491,634
CONVERTIBLE
PREFERRED
STOCKS
-
0.13%
Shares
Held
Value
(000's)
Internet
-
0.13%
Airbnb
Inc
-
Series
D
0.00
%
(
e),(f),(g),(h)
3,936
$
491
Airbnb
Inc
-
Series
E
0.00%
(e),(f),(g),(h)
1,119
140
$
631
TOTAL
CONVERTIBLE
PREFERRED
STOCKS
$
631
PREFERRED
STOCKS
-
0.23%
Shares
Held
Value
(000's)
Automobile
Manufacturers
-
0.13%
Rivian
Automotive
Series
D
0.00
%
(
e),(f),(g)
61,168
657
Software
-
0.08%
Magic
Leap
Inc
-
Series
C
0.00
%
(
e),(f),(g),(h)
5,653
130
Magic
Leap
Inc
-
Series
D
0.00
%
(
e),(f),(g),(h)
1,903
47
UIPATH
Inc
Ser
D-1
0.00
%
(
e),(f),(g)
4,548
179
UIPATH
Inc
Ser
D-2
0.00
%
(
e),(f),(g)
764
30
$
386
Telecommunications
-
0.02%
Aurora
Innovation
0.00
%
(
e),(f),(g)
12,920
119
TOTAL
PREFERRED
STOCKS
$
1,162
Total
Investments
$
499,985
Other
Assets
and
Liabilities
- 0.53
%
2,668
TOTAL
NET
ASSETS
-
100.00%
$
502,653
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,023
or
0.20%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(e)
Non-income
producing
security
(f)
Restricted
Security.
Please
see
Restricted
Security
Sub-Schedule
for
more
information.
(g)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$1,883
or
0.37%
of
net
assets.
(h)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
Portfolio
Summary (
unaudited)
Sector
Percent
Consumer,
Non-cyclical
26.75%
Technology
24.23%
Communications
21.24%
Industrial
8.92%
Financial
7.49%
Consumer,
Cyclical
6.60%
Basic
Materials
1.71%
Money
Market
Funds
1.21%
Utilities
0.94%
Energy
0.29%
Domestic
Equity
Funds
0.09%
Other
Assets
and
Liabilities
0.53%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
LargeCap
Growth
Account
I
December
31,
2019
See
accompanying
notes.
84
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
6,022
$
119,927
$
120,866
$
5,083
Principal
Millennials
Index
ETF
150
—
—
199
Principal
Price
Setters
Index
ETF
50
—
—
66
Principal
Sustainable
Momentum
Index
ETF
18
—
—
21
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
132
—
—
166
$
6,372
$
119,927
$
120,86
6
$
5,535
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
146
$
—
$
—
$
—
Principal
Millennials
Index
ETF
2
—
—
49
Principal
Price
Setters
Index
ETF
1
—
—
16
Principal
Sustainable
Momentum
Index
ETF
—
—
—
3
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
3
—
—
3
4
$
152
$
—
$
—
$
10
2
Amounts
in
thousands.
Restricted
Securities
Security
Name
Acquisition
Date
Cost
Value
Percent
of
Net
Assets
Airbnb
Inc
-
Series
D
0.00%
04/16/2014
$
16
0
$
491
0.10%
Airbnb
Inc - Series
E
0.00%
07/14/2015
104
140
0.03%
Aurora
Innovation
0.00%
03/01/2019
119
119
0.02%
Magic
Leap
Inc
-
Series
C
0.00%
01/20/2016
130
130
0.03%
Magic
Leap
Inc
-
Series
D
0.00%
10/12/2017
5
1
47
0.00%
Rivian
Automotive
Series
D
0.00%
12/23/2019
657
657
0.13%
Stripe
Inc
-
Class
B
12/17/2019
90
90
0.02%
UIPATH
Inc
Ser
D-1
0.00%
04/26/2019
179
179
0.04%
UIPATH
Inc
Ser
D-2
0.00%
04/26/2019
30
30
0.01%
Total
$
1,883
0.38%
Amounts
in
thousands.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
S&P
500
Emini
;
March
2020
Long
20
$
3,231
$
11
Total
$
11
Amounts
in
thousands
except
contracts.
Schedule
of
Investments
MidCap
Account
December
31,
2019
See
accompanying
notes.
85
INVESTMENT
COMPANIES
-
0.34%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.34%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
1,849,930
$
1,850
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
252,537
252
$
2,102
TOTAL
INVESTMENT
COMPANIES
$
2,102
COMMON
STOCKS
-
99.62%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
4.36%
HEICO
Corp
-
Class
A
21,212
1,899
TransDigm
Group
Inc
44,013
24,647
$
26,546
Banks
-
2.28%
First
Republic
Bank/CA
92,101
10,817
M&T
Bank
Corp
18,149
3,081
$
13,898
Beverages
-
0.59%
Brown-Forman
Corp
-
B
Shares
53,216
3,597
Building
Materials
-
4.46%
Martin
Marietta
Materials
Inc
35,239
9,854
Summit
Materials
Inc
(
d)
133,588
3,193
Vulcan
Materials
Co
97,933
14,101
$
27,148
Chemicals
-
0.69%
Air
Products
&
Chemicals
Inc
17,775
4,177
Commercial
Services
-
9.99%
AMERCO
10,373
3,898
Everarc
Holdings
Ltd
(
d)
97,671
1,319
Everarc
Holdings
Ltd
-
Warrants
(
d)
97,671
147
Gartner
Inc
(
d)
87,776
13,526
IHS
Markit
Ltd
(
d)
150,087
11,309
Moody's
Corp
24,177
5,740
S&P
Global
Inc
10,968
2,995
Square
Inc
(
d)
23,761
1,486
TransUnion
127,205
10,890
Verisk
Analytics
Inc
63,372
9,464
$
60,774
Distribution
&
Wholesale
-
3.60%
Copart
Inc
(
d)
158,657
14,428
Fastenal
Co
202,082
7,467
$
21,895
Diversified
Financial
Services
-
1.01%
Credit
Acceptance
Corp
(
d)
13,870
6,135
Electric
-
2.02%
Brookfield
Infrastructure
Partners
LP
181,906
9,094
Brookfield
Renewable
Partners
LP
69,191
3,226
$
12,320
Electronics
-
2.98%
Mettler-Toledo
International
Inc
(
d)
10,456
8,295
Roper
Technologies
Inc
27,743
9,827
$
18,122
Entertainment
-
2.91%
Liberty
Media
Corp-Liberty
Braves
-
A
Shares
(
d)
5,176
153
Liberty
Media
Corp-Liberty
Braves
-
C
Shares
(
d)
20,023
591
Live
Nation
Entertainment
Inc
(
d)
99,896
7,140
Vail
Resorts
Inc
40,898
9,809
$
17,693
Hand
&
Machine
Tools
-
1.01%
Colfax
Corp
(
d)
168,602
6,134
Healthcare
-
Products
-
0.95%
IDEXX
Laboratories
Inc
(
d)
22,023
5,751
Home
Builders
-
1.58%
Lennar
Corp
-
A
Shares
96,158
5,365
Lennar
Corp
-
B
Shares
1,475
66
NVR
Inc
(
d)
1,099
4,185
$
9,616
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Insurance
-
9.56%
Aon
PLC
23,897
$
4,978
Arch
Capital
Group
Ltd
(
d)
244,826
10,501
Brown
&
Brown
Inc
218,062
8,609
Fidelity
National
Financial
Inc
260,977
11,835
Markel
Corp
(
d)
15,122
17,287
Progressive
Corp/The
68,614
4,967
$
58,177
Internet
-
4.21%
Shopify
Inc
(
d)
5,560
2,211
VeriSign
Inc
(
d)
55,462
10,686
Wayfair
Inc
(
d)
52,640
4,757
Wix.com
Ltd
(
d)
65,293
7,991
$
25,645
Investment
Companies
-
0.11%
Brookfield
Business
Partners
LP
15,995
660
Lodging
-
3.61%
Hilton
Worldwide
Holdings
Inc
148,697
16,492
Hyatt
Hotels
Corp
61,316
5,501
$
21,993
Machinery
-
Diversified
-
0.12%
Cognex
Corp
13,326
747
Media
-
5.09%
Liberty
Broadband
Corp
-
A
Shares
(
d)
23,522
2,930
Liberty
Broadband
Corp
-
C
Shares
(
d)
66,746
8,393
Liberty
Global
PLC
-
A
Shares
(
d)
15,943
363
Liberty
Global
PLC
-
C
Shares
(
d)
193,348
4,214
Liberty
Media
Corp-Liberty
Formula
One
-
A
Shares
(
d)
18,376
805
Liberty
Media
Corp-Liberty
Formula
One
-
C
Shares
(
d)
160,234
7,365
Liberty
Media
Corp-Liberty
SiriusXM
-
A
Shares
(
d)
35,379
1,710
Liberty
Media
Corp-Liberty
SiriusXM
-
C
Shares
(
d)
108,276
5,212
$
30,992
Pharmaceuticals
-
0.11%
Elanco
Animal
Health
Inc
(
d)
22,168
653
Private
Equity
-
7.62%
Brookfield
Asset
Management
Inc
437,784
25,304
Kennedy-Wilson
Holdings
Inc
188,425
4,202
KKR
&
Co
Inc
360,325
10,510
Onex
Corp
101,304
6,389
$
46,405
Real
Estate
-
3.91%
Brookfield
Property
Partners
LP
(
e)
94,961
1,736
CBRE
Group
Inc
(
d)
240,351
14,731
Howard
Hughes
Corp/
The
(
d)
57,825
7,332
$
23,799
REITs
-
3.56%
Equinix
Inc
7,010
4,092
SBA
Communications
Corp
67,746
16,326
Vornado
Realty
Trust
18,747
1,247
$
21,665
Retail
-
10.45%
CarMax
Inc
(
d)
190,021
16,659
Dollar
General
Corp
33,502
5,226
Domino's
Pizza
Inc
33,910
9,962
O'Reilly
Automotive
Inc
(
d)
37,384
16,384
Restaurant
Brands
International
Inc
223,020
14,222
Ross
Stores
Inc
10,148
1,181
$
63,634
Semiconductors
-
1.57%
Microchip
Technology
Inc
91,243
9,555
Software
-
9.51%
ANSYS
Inc
(
d)
44,713
11,510
Autodesk
Inc
(
d)
66,129
12,132
Black
Knight
Inc
(
d)
226,664
14,615
Guidewire
Software
Inc
(
d)
52,181
5,728
Schedule
of
Investments
MidCap
Account
December
31,
2019
See
accompanying
notes.
86
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
MSCI
Inc
20,477
$
5,287
RealPage
Inc
(
d)
112,267
6,034
Slack
Technologies
Inc
(
d),(e)
115,795
2,603
$
57,909
Telecommunications
-
1.76%
GCI
Liberty
Inc
(
d)
82,141
5,820
Motorola
Solutions
Inc
30,183
4,863
$
10,683
TOTAL
COMMON
STOCKS
$
606,323
Total
Investments
$
608,425
Other
Assets
and
Liabilities
- 0.04
%
237
TOTAL
NET
ASSETS
-
100.00%
$
608,662
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,850
or
0.30%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
Portfolio
Summary (
unaudited)
Sector
Percent
Financial
28.05%
Consumer,
Cyclical
22.15%
Industrial
12.93%
Consumer,
Non-cyclical
11.64%
Technology
11.08%
Communications
11.06%
Utilities
2.02%
Basic
Materials
0.69%
Money
Market
Funds
0.34%
Other
Assets
and
Liabilities
0.04%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
4,942
$
85,882
$
90,572
$
252
$
4,942
$
85,882
$
90,572
$
252
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
15
$
—
$
—
$
—
$
15
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
Principal
Capital
Appreciation
Account
December
31,
2019
See
accompanying
notes.
87
INVESTMENT
COMPANIES
-
1.88%
Shares
Held
Value
(000's)
Money
Market
Funds
-
1.88%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
2,945,391
$
2,945
TOTAL
INVESTMENT
COMPANIES
$
2,945
COMMON
STOCKS
-
98.46%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
2.39%
Boeing
Co/The
2,296
748
Northrop
Grumman
Corp
5,778
1,988
Teledyne
Technologies
Inc
(
c)
2,915
1,010
$
3,746
Airlines
-
1.10%
Delta
Air
Lines
Inc
29,383
1,718
Apparel
-
1.58%
Deckers
Outdoor
Corp
(
c)
9,935
1,678
NIKE
Inc
7,932
803
$
2,481
Automobile
Manufacturers
-
0.80%
PACCAR
Inc
15,860
1,255
Banks
-
7.00%
JPMorgan
Chase
&
Co
45,290
6,314
PNC
Financial
Services
Group
Inc/The
16,125
2,574
US
Bancorp
35,156
2,084
$
10,972
Beverages
-
1.98%
Keurig
Dr
Pepper
Inc
13,695
397
PepsiCo
Inc
19,861
2,714
$
3,111
Chemicals
-
2.06%
DuPont
de
Nemours
Inc
11,526
740
FMC
Corp
18,729
1,869
HB
Fuller
Co
12,078
623
$
3,232
Commercial
Services
-
1.93%
Aaron's
Inc
35,669
2,037
PayPal
Holdings
Inc
(
c)
9,141
989
$
3,026
Computers
-
4.75%
Apple
Inc
25,338
7,440
Consumer
Products
-
0.96%
Church
&
Dwight
Co
Inc
21,377
1,504
Distribution
&
Wholesale
-
0.83%
IAA
Inc
(
c)
27,671
1,302
Diversified
Financial
Services
-
4.49%
Ameriprise
Financial
Inc
5,650
941
Charles
Schwab
Corp/The
24,532
1,167
Discover
Financial
Services
35,282
2,993
Visa
Inc
10,347
1,944
$
7,045
Electric
-
3.30%
NextEra
Energy
Inc
11,024
2,669
Xcel
Energy
Inc
39,512
2,509
$
5,178
Electronics
-
1.28%
Honeywell
International
Inc
11,287
1,998
Environmental
Control
-
0.11%
Waste
Connections
Inc
1,940
176
Food
-
1.58%
McCormick
&
Co
Inc/MD
6,055
1,028
Tyson
Foods
Inc
15,893
1,447
$
2,475
Hand
&
Machine
Tools
-
0.31%
Snap-on
Inc
2,855
484
Healthcare
-
Products
-
5.21%
Abbott
Laboratories
14,207
1,234
Edwards
Lifesciences
Corp
(
c)
4,155
969
Medtronic
PLC
21,982
2,494
Thermo
Fisher
Scientific
Inc
6,647
2,159
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Healthcare
-
Products
(continued)
Varian
Medical
Systems
Inc
(
c)
9,181
$
1,304
$
8,160
Healthcare
-
Services
-
2.16%
UnitedHealth
Group
Inc
5,950
1,749
Universal
Health
Services
Inc
11,415
1,638
$
3,387
Home
Builders
-
0.58%
Thor
Industries
Inc
12,312
915
Insurance
-
3.57%
Chubb
Ltd
9,027
1,405
Fidelity
National
Financial
Inc
48,526
2,201
Marsh
&
McLennan
Cos
Inc
17,795
1,982
$
5,588
Internet
-
7.27%
Alibaba
Group
Holding
Ltd
ADR
(c)
1,631
346
Alphabet
Inc
-
A
Shares
(
c)
3,210
4,299
Amazon.com
Inc
(
c)
2,130
3,936
Booking
Holdings
Inc
(
c)
191
392
Facebook
Inc
(
c)
11,788
2,420
$
11,393
Lodging
-
0.75%
Marriott
International
Inc/MD
7,733
1,171
Machinery
-
Diversified
-
0.92%
Deere
&
Co
8,277
1,434
Media
-
2.99%
Comcast
Corp
-
Class
A
43,674
1,964
Nexstar
Media
Group
Inc
7,506
880
Walt
Disney
Co/The
12,730
1,841
$
4,685
Miscellaneous
Manufacturers
-
0.40%
3M
Co
3,596
634
Oil
&
Gas
-
4.24%
Chevron
Corp
20,251
2,440
EOG
Resources
Inc
1,575
132
Royal
Dutch
Shell
PLC
-
B
shares
ADR
38,311
2,298
Valero
Energy
Corp
18,989
1,778
$
6,648
Pharmaceuticals
-
6.96%
Becton
Dickinson
and
Co
7,100
1,931
Bristol-Myers
Squibb
Co
29,464
1,891
Johnson
&
Johnson
12,082
1,762
Merck
&
Co
Inc
35,497
3,229
Pfizer
Inc
53,398
2,092
$
10,905
REITs
-
3.53%
Alexandria
Real
Estate
Equities
Inc
22,540
3,642
American
Tower
Corp
3,148
724
Extra
Space
Storage
Inc
11,080
1,170
$
5,536
Retail
-
3.46%
Costco
Wholesale
Corp
7,006
2,059
Home
Depot
Inc/The
8,209
1,793
Lululemon
Athletica
Inc
(
c)
4,092
948
Starbucks
Corp
7,173
631
$
5,431
Semiconductors
-
4.42%
Broadcom
Inc
4,995
1,579
Lam
Research
Corp
3,792
1,109
Microchip
Technology
Inc
11,539
1,208
NVIDIA
Corp
2,113
497
ON
Semiconductor
Corp
(
c)
34,310
837
Taiwan
Semiconductor
Manufacturing
Co
Ltd
ADR
29,266
1,700
$
6,930
Schedule
of
Investments
Principal
Capital
Appreciation
Account
December
31,
2019
See
accompanying
notes.
88
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
-
9.01%
Adobe
Inc
(
c)
5,577
$
1,839
Fair
Isaac
Corp
(
c)
3,784
1,418
Fidelity
National
Information
Services
Inc
16,132
2,244
Microsoft
Corp
48,598
7,664
ServiceNow
Inc
(
c)
3,418
965
$
14,130
Telecommunications
-
3.94%
Arista
Networks
Inc
(
c)
2,580
525
Cisco
Systems
Inc
34,979
1,677
T-Mobile
US
Inc
(
c)
18,426
1,445
Verizon
Communications
Inc
41,257
2,533
$
6,180
Toys,
Games
&
Hobbies
-
1.39%
Hasbro
Inc
20,626
2,178
Transportation
-
1.21%
Expeditors
International
of
Washington
Inc
13,013
1,015
Union
Pacific
Corp
4,909
888
$
1,903
TOTAL
COMMON
STOCKS
$
154,351
Total
Investments
$
157,296
Other
Assets
and
Liabilities
- (
0.34)%
(533)
TOTAL
NET
ASSETS
-
100.00%
$
156,763
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Current
yield
shown
is
as
of
period
end.
(c)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Sector
Percent
Consumer,
Non-cyclical
20.78%
Financial
18.59%
Technology
18.18%
Communications
14.20%
Consumer,
Cyclical
10.49%
Industrial
6.62%
Energy
4.24%
Utilities
3.30%
Basic
Materials
2.06%
Money
Market
Funds
1.88%
Other
Assets
and
Liabilities
(
0.34)%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
2,989
$
27,319
$
27,363
$
2,945
$
2,989
$
27,319
$
27,363
$
2,945
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
61
$
—
$
—
$
—
$
61
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
Real
Estate
Securities
Account
December
31,
2019
See
accompanying
notes.
89
INVESTMENT
COMPANIES
-
0.70%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.70%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
1,130,553
$
1,13
0
TOTAL
INVESTMENT
COMPANIES
$
1,13
0
COMMON
STOCKS
-
98.92%
Shares
Held
Value
(000's)
Lodging
-
1.17%
Hilton
Worldwide
Holdings
Inc
17,109
1,897
REITs
-
95.12%
Alexandria
Real
Estate
Equities
Inc
41,728
6,742
American
Homes
4
Rent
177,315
4,647
American
Tower
Corp
6,651
1,529
Americold
Realty
Trust
58,357
2,046
Apartment
Investment
&
Management
Co
78,908
4,076
AvalonBay
Communities
Inc
42,495
8,911
Boston
Properties
Inc
33,747
4,652
Brandywine
Realty
Trust
44,839
706
Cousins
Properties
Inc
89,067
3,670
Crown
Castle
International
Corp
6,771
962
CubeSmart
72,374
2,278
Duke
Realty
Corp
70,540
2,446
EPR
Properties
39,987
2,825
Equinix
Inc
18,509
10,804
Equity
LifeStyle
Properties
Inc
40,600
2,858
Equity
Residential
20,657
1,672
Essential
Properties
Realty
Trust
Inc
60,413
1,499
Essex
Property
Trust
Inc
22,849
6,874
Extra
Space
Storage
Inc
34,830
3,679
First
Industrial
Realty
Trust
Inc
30,552
1,268
Healthcare
Realty
Trust
Inc
57,150
1,907
Healthcare
Trust
of
America
Inc
179,956
5,449
Healthpeak
Properties
Inc
90,467
3,118
Host
Hotels
&
Resorts
Inc
146,850
2,724
Invitation
Homes
Inc
282,202
8,458
Kilroy
Realty
Corp
43,031
3,610
Park
Hotels
&
Resorts
Inc
54,240
1,403
Prologis
Inc
141,062
12,574
Public
Storage
10,682
2,275
Regency
Centers
Corp
71,491
4,510
Sabra
Health
Care
REIT
Inc
86,880
1,854
Saul
Centers
Inc
13,384
706
Simon
Property
Group
Inc
32,465
4,836
STORE
Capital
Corp
130,800
4,871
Sun
Communities
Inc
33,510
5,030
Sunstone
Hotel
Investors
Inc
101,331
1,411
Taubman
Centers
Inc
24,460
760
Terreno
Realty
Corp
54,610
2,957
VICI
Properties
Inc
93,774
2,396
Welltower
Inc
98,545
8,059
Weyerhaeuser
Co
32,570
984
$
154,036
Software
-
2.63%
InterXion
Holding
NV
(
c)
50,801
4,258
TOTAL
COMMON
STOCKS
$
160,191
Total
Investments
$
161,32
1
Other
Assets
and
Liabilities
- 0.38
%
60
9
TOTAL
NET
ASSETS
-
100.00%
$
161,930
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(b)
Current
yield
shown
is
as
of
period
end.
(c)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Sector
Percent
Financial
95.12%
Technology
2.63%
Consumer,
Cyclical
1.17%
Money
Market
Funds
0.70%
Other
Assets
and
Liabilities
0.38%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
911
$
24,54
8
$
24,329
$
1,13
0
$
911
$
24,54
8
$
24,329
$
1,13
0
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
18
$
—
$
—
$
—
$
18
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
SAM
Balanced
Portfolio
December
31,
2019
See
accompanying
notes.
90
INVESTMENT
COMPANIES
-
99.91%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.39%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
2,721,275
$
2,721
Principal
Exchange-Traded
Funds
-
20.25%
Principal
Active
Global
Dividend
Income
ETF
(
a)
1,219,500
36,652
Principal
Active
Income
ETF
(
a)
235,100
9,639
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
205,200
5,329
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
2,304,200
72,121
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
544,600
17,732
$
141,473
Principal
Funds,
Inc.
Class
R-6
-
50.27%
Blue
Chip
Fund
(
a)
2,392,691
64,076
Core
Fixed
Income
Fund
(
a)
8,626,058
84,277
Diversified
International
Fund
(
a)
6,395,534
82,310
Diversified
Real
Asset
Fund
(
a)
1,891,076
22,012
Edge
MidCap
Fund
(
a)
1,891,272
29,239
Global
Real
Estate
Securities
Fund
(
a)
1,944,690
20,186
High
Yield
Fund
(
a)
1,418,242
10,183
International
Small
Company
Fund
(
a)
895,962
10,223
Origin
Emerging
Markets
Fund
(
a)
899,462
10,362
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
1,774,868
18,459
$
351,327
Principal
Funds,
Inc.
Institutional
Class
-
9.06%
Inflation
Protection
Fund
(
a)
1,172,855
10,145
Short-Term
Income
Fund
(
a)
4,324,868
53,153
$
63,298
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
19.94%
Equity
Income
Account
(
a)
3,289,560
92,733
Government
&
High
Quality
Bond
Account
(
a)
4,754,341
46,640
$
139,373
TOTAL
INVESTMENT
COMPANIES
$
698,192
Total
Investments
$
698,192
Other
Assets
and
Liabilities
- 0.09
%
638
TOTAL
NET
ASSETS
-
100.00%
$
698,830
(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
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
45.81%
Domestic
Equity
Funds
39.48%
International
Equity
Funds
11.08%
Specialty
Funds
3.15%
Money
Market
Funds
0.39%
Other
Assets
and
Liabilities
0.09%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Balanced
Portfolio
December
31,
2019
See
accompanying
notes.
91
Affiliated
Securities
December
31,
2018
Purchases
(a)
Sales
(a)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
54,795
$
8,957
$
16,592
$
64,076
Core
Fixed
Income
Fund
—
89,332
7,198
84,277
Diversified
International
Fund
Class
R-6
—
84,482
9,99
2
82,310
Diversified
International
Fund
Institutional
Class
71,127
936
78,482
—
Diversified
Real
Asset
Fund
22,409
736
3,795
22,012
Edge
MidCap
Fund
24,457
3,028
5,093
29,239
Equity
Income
Account
80,186
7,973
13,65
2
92,733
Global
Multi-Strategy
Fund
26,336
14
27,843
—
Global
Real
Estate
Securities
Fund
20,436
2,203
5,883
20,186
Government
&
High
Quality
Bond
Account
40,125
12,055
6,808
46,640
High
Yield
Fund
10,242
841
1,616
10,183
Income
Account
79,967
262
83,449
—
Inflation
Protection
Fund
11,152
299
1,963
10,145
International
Emerging
Markets
Fund
8,258
6
9,276
—
International
Small
Company
Fund
7,392
1,823
795
10,223
Origin
Emerging
Markets
Fund
—
10,355
597
10,362
Principal
Active
Global
Dividend
Income
ETF
30,012
—
489
36,652
Principal
Active
Income
ETF
8,651
28
1
—
9,639
Principal
Government
Money
Market
Fund
1.41%
2,067
16,957
16,303
2,721
Principal
Investment
Grade
Corporate
Active
ETF
10,579
—
5,921
5,329
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
66,603
—
10,486
72,121
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
14,004
1,23
3
—
17,732
Real
Estate
Debt
Income
Fund
7,387
161
7,89
3
—
Short-Term
Income
Fund
50,441
10,045
8,477
53,153
Spectrum
Preferred
and
Capital
Securities
Income
Fund
17,967
1,577
2,958
18,459
$
664,593
$
253,55
6
$
325,56
1
$
698,192
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
496
$
1,188
$
2,391
$
15,728
Core
Fixed
Income
Fund
1,525
75
—
2,068
Diversified
International
Fund
Class
R-6
1,8
60
12
7
—
7,693
Diversified
International
Fund
Institutional
Class
—
(19)
—
6,438
Diversified
Real
Asset
Fund
520
98
—
2,564
Edge
MidCap
Fund
297
183
861
6,664
Equity
Income
Account
2,00
8
1,63
2
1,993
16,594
Global
Multi-Strategy
Fund
—
1,490
—
3
Global
Real
Estate
Securities
Fund
692
319
587
3,111
Government
&
High
Quality
Bond
Account
1,226
(122)
—
1,390
High
Yield
Fund
630
10
—
706
Income
Account
—
7,339
—
(4,119)
Inflation
Protection
Fund
191
(22)
—
679
International
Emerging
Markets
Fund
—
1,749
—
(737)
International
Small
Company
Fund
290
23
—
1,780
Origin
Emerging
Markets
Fund
183
5
—
599
Principal
Active
Global
Dividend
Income
ETF
1,019
(36)
—
7,165
Principal
Active
Income
ETF
454
—
—
707
Principal
Government
Money
Market
Fund
1.41%
50
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
417
152
45
519
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
1,586
718
—
15,286
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
235
—
—
2,495
Real
Estate
Debt
Income
Fund
16
0
15
4
—
191
Short-Term
Income
Fund
1,242
(30)
—
1,174
Spectrum
Preferred
and
Capital
Securities
Income
Fund
939
(74)
—
1,947
$
16,0
2
0
$
14,9
5
9
$
5,877
$
90,645
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
December
31,
2019
See
accompanying
notes.
92
INVESTMENT
COMPANIES
-
99.95%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.31%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
579,799
$
580
Principal
Exchange-Traded
Funds
-
13.98%
Principal
Active
Global
Dividend
Income
ETF
(
a)
133,000
3,997
Principal
Active
Income
ETF
(
a)
126,800
5,199
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
73,400
1,906
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
396,800
12,420
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
91,200
2,969
$
26,491
Principal
Funds,
Inc.
Class
R-6
-
52.43%
Blue
Chip
Fund
(
a)
465,985
12,479
Core
Fixed
Income
Fund
(
a)
3,529,993
34,488
Diversified
International
Fund
(
a)
1,230,109
15,831
Diversified
Real
Asset
Fund
(
a)
464,580
5,408
Edge
MidCap
Fund
(
a)
363,496
5,620
Global
Diversified
Income
Fund
(
a)
372,382
5,124
Global
Real
Estate
Securities
Fund
(
a)
413,349
4,290
High
Yield
Fund
(
a)
585,043
4,201
International
Small
Company
Fund
(
a)
175,594
2,003
Origin
Emerging
Markets
Fund
(
a)
174,052
2,005
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
759,878
7,903
$
99,352
Principal
Funds,
Inc.
Institutional
Class
-
13.80%
Inflation
Protection
Fund
(
a)
544,667
4,712
Short-Term
Income
Fund
(
a)
1,744,691
21,442
$
26,154
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
19.43%
Equity
Income
Account
(
a)
610,085
17,198
Government
&
High
Quality
Bond
Account
(
a)
1,998,840
19,609
$
36,807
TOTAL
INVESTMENT
COMPANIES
$
189,384
Total
Investments
$
189,384
Other
Assets
and
Liabilities
- 0.05
%
91
TOTAL
NET
ASSETS
-
100.00%
$
189,475
(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
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
60.84%
Domestic
Equity
Funds
26.76%
International
Equity
Funds
6.49%
Specialty
Funds
5.55%
Money
Market
Funds
0.31%
Other
Assets
and
Liabilities
0.05%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Balanced
Portfolio
December
31,
2019
See
accompanying
notes.
93
Affiliated
Securities
December
31,
2018
Purchases
(a)
Sales
(a)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
9,319
$
2,391
$
2,254
$
12,479
Core
Fixed
Income
Fund
—
35,544
1,891
34,488
Diversified
International
Fund
Class
R-6
—
15,240
1,063
15,831
Diversified
International
Fund
Institutional
Class
12,173
563
13,647
—
Diversified
Real
Asset
Fund
5,061
425
700
5,408
Edge
MidCap
Fund
3,962
1,227
753
5,620
Equity
Income
Account
13,827
2,25
8
2,140
17,198
Global
Diversified
Income
Fund
4,642
583
475
5,124
Global
Multi-Strategy
Fund
6,969
152
7,521
—
Global
Real
Estate
Securities
Fund
3,917
630
940
4,290
Government
&
High
Quality
Bond
Account
17,903
3,138
2,053
19,609
High
Yield
Fund
4,362
594
1,068
4,201
Income
Account
29,763
686
31,689
—
Inflation
Protection
Fund
4,746
294
616
4,712
International
Emerging
Markets
Fund
1,347
47
1,561
—
International
Small
Company
Fund
1,335
484
161
2,003
Origin
Emerging
Markets
Fund
—
1,993
114
2,005
Principal
Active
Global
Dividend
Income
ETF
3,226
—
—
3,997
Principal
Active
Income
ETF
4,809
—
—
5,199
Principal
Government
Money
Market
Fund
1.41%
897
5,246
5,563
580
Principal
Investment
Grade
Corporate
Active
ETF
4,251
—
2,608
1,906
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
10,791
—
1,017
12,420
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
2,172
396
—
2,969
Real
Estate
Debt
Income
Fund
1,616
61
1,755
—
Short-Term
Income
Fund
20,485
3,109
2,630
21,442
Spectrum
Preferred
and
Capital
Securities
Income
Fund
7,074
839
777
7,903
$
174,647
$
75,90
0
$
82,99
6
$
189,384
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
97
$
126
$
467
$
2,897
Core
Fixed
Income
Fund
60
6
6
—
829
Diversified
International
Fund
Class
R-6
357
6
—
1,648
Diversified
International
Fund
Institutional
Class
—
—
—
911
Diversified
Real
Asset
Fund
128
16
—
606
Edge
MidCap
Fund
57
26
165
1,158
Equity
Income
Account
377
1
375
3,25
2
Global
Diversified
Income
Fund
260
(1
3
)
—
38
7
Global
Multi-Strategy
Fund
—
248
—
152
Global
Real
Estate
Securities
Fund
145
33
125
650
Government
&
High
Quality
Bond
Account
51
5
(65)
—
686
High
Yield
Fund
276
13
—
300
Income
Account
—
2,106
—
(866)
Inflation
Protection
Fund
86
(7)
—
295
International
Emerging
Markets
Fund
—
312
—
(145)
International
Small
Company
Fund
57
(8)
—
353
Origin
Emerging
Markets
Fund
36
—
—
126
Principal
Active
Global
Dividend
Income
ETF
110
—
—
77
1
Principal
Active
Income
ETF
250
—
—
390
Principal
Government
Money
Market
Fund
1.41%
19
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
156
67
16
196
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
265
60
—
2,586
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
38
—
—
401
Real
Estate
Debt
Income
Fund
37
34
—
44
Short-Term
Income
Fund
512
(8)
—
486
Spectrum
Preferred
and
Capital
Securities
Income
Fund
392
(22)
—
789
$
4,77
6
$
2,93
1
$
1,148
$
18,90
2
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
December
31,
2019
See
accompanying
notes.
94
INVESTMENT
COMPANIES
-
99.91%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.23%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
825,931
$
826
Principal
Exchange-Traded
Funds
-
21.75%
Principal
Active
Global
Dividend
Income
ETF
(
a)
401,000
12,052
Principal
Active
Income
ETF
(
a)
114,000
4,674
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
64,900
1,685
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
1,501,300
46,991
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
375,400
12,223
$
77,625
Principal
Funds,
Inc.
Class
R-6
-
52.97%
Blue
Chip
Fund
(
a)
1,673,589
44,819
Core
Fixed
Income
Fund
(
a)
1,774,786
17,340
Diversified
International
Fund
(
a)
4,777,279
61,484
Diversified
Real
Asset
Fund
(
a)
1,072,488
12,484
Edge
MidCap
Fund
(
a)
1,393,225
21,539
Global
Real
Estate
Securities
Fund
(
a)
1,153,672
11,975
International
Small
Company
Fund
(
a)
606,983
6,926
Origin
Emerging
Markets
Fund
(
a)
620,450
7,147
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
512,075
5,325
$
189,039
Principal
Funds,
Inc.
Institutional
Class
-
4.47%
Short-Term
Income
Fund
(
a)
1,296,546
15,93
5
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
20.49%
Equity
Income
Account
(
a)
2,200,448
62,031
Government
&
High
Quality
Bond
Account
(
a)
1,129,273
11,078
$
73,109
TOTAL
INVESTMENT
COMPANIES
$
356,53
4
Total
Investments
$
356,53
4
Other
Assets
and
Liabilities
- 0.09
%
31
3
TOTAL
NET
ASSETS
-
100.00%
$
356,847
(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
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
52.57%
Fixed
Income
Funds
32.94%
International
Equity
Funds
10.67%
Specialty
Funds
3.50%
Money
Market
Funds
0.23%
Other
Assets
and
Liabilities
0.09%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Conservative
Growth
Portfolio
December
31,
2019
See
accompanying
notes.
95
Affiliated
Securities
December
31,
2018
Purchases
(a)
Sales
(a)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
35,689
$
5,161
$
7,251
$
44,819
Core
Fixed
Income
Fund
—
17,675
750
17,340
Diversified
International
Fund
Class
R-6
—
59,494
3,522
61,484
Diversified
International
Fund
Institutional
Class
47,933
839
53,245
—
Diversified
Real
Asset
Fund
11,715
1,075
1,722
12,484
Edge
MidCap
Fund
17,707
1,766
2,913
21,539
Equity
Income
Account
52,108
5,382
7,356
62,031
Global
Multi-Strategy
Fund
5,034
11
5,318
—
Global
Real
Estate
Securities
Fund
10,875
1,615
2,354
11,975
Government
&
High
Quality
Bond
Account
9,629
2,252
1,134
11,078
Income
Account
16,085
107
16,840
—
International
Small
Company
Fund
4,663
1,428
338
6,926
Multi-Manager
Equity
Long/Short
Fund
7,946
15
8,527
—
Origin
Emerging
Markets
Fund
5,466
918
596
7,147
Principal
Active
Global
Dividend
Income
ETF
9,167
633
—
12,052
Principal
Active
Income
ETF
—
4,509
—
4,674
Principal
Government
Money
Market
Fund
1.41%
797
11,514
11,485
826
Principal
Investment
Grade
Corporate
Active
ETF
2,084
—
552
1,685
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
40,929
306
4,269
46,991
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
9,276
1,271
—
12,223
Short-Term
Income
Fund
15,424
2,288
2,12
7
15,93
5
Spectrum
Preferred
and
Capital
Securities
Income
Fund
5,137
667
1,019
5,325
$
307,664
$
118,926
$
131,31
8
$
356,53
4
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
347
$
198
$
1,672
$
11,022
Core
Fixed
Income
Fund
301
4
—
411
Diversified
International
Fund
Class
R-6
1,38
8
(53)
—
5,565
Diversified
International
Fund
Institutional
Class
—
(2)
—
4,475
Diversified
Real
Asset
Fund
295
(5)
—
1,421
Edge
MidCap
Fund
219
116
635
4,863
Equity
Income
Account
1,336
(81)
1,326
11,978
Global
Multi-Strategy
Fund
—
316
—
(43)
Global
Real
Estate
Securities
Fund
399
48
347
1,791
Government
&
High
Quality
Bond
Account
269
(43)
—
374
Income
Account
—
1,135
—
(487)
International
Small
Company
Fund
197
(4)
—
1,177
Multi-Manager
Equity
Long/Short
Fund
—
(288)
—
854
Origin
Emerging
Markets
Fund
126
28
—
1,331
Principal
Active
Global
Dividend
Income
ETF
320
—
—
2,252
Principal
Active
Income
ETF
89
—
—
165
Principal
Government
Money
Market
Fund
1.41%
21
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
113
20
15
133
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
1,001
248
—
9,777
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
159
—
—
1,676
Short-Term
Income
Fund
377
(10)
—
360
Spectrum
Preferred
and
Capital
Securities
Income
Fund
273
(9)
—
549
$
7,23
0
$
1,618
$
3,995
$
59,644
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
December
31,
2019
See
accompanying
notes.
96
INVESTMENT
COMPANIES
-
99.93%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.27%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
510,842
$
511
Principal
Exchange-Traded
Funds
-
15.92%
Principal
Active
Global
Dividend
Income
ETF
(
a)
505,300
15,187
Principal
Active
Income
ETF
(
a)
124,400
5,100
Principal
Investment
Grade
Corporate
Active
ETF
(
a)
110,300
2,864
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
219,600
6,874
$
30,025
Principal
Funds,
Inc.
Class
R-6
-
45.61%
Blue
Chip
Fund
(
a)
127,002
3,401
Core
Fixed
Income
Fund
(
a)
4,657,912
45,508
Edge
MidCap
Fund
(
a)
193,900
2,998
Global
Diversified
Income
Fund
(
a)
677,262
9,319
Global
Real
Estate
Securities
Fund
(
a)
644,487
6,690
High
Yield
Fund
(
a)
1,138,068
8,171
Spectrum
Preferred
and
Capital
Securities
Income
Fund
(
a)
953,668
9,918
$
86,005
Principal
Funds,
Inc.
Institutional
Class
-
18.48%
Inflation
Protection
Fund
(
a)
1,295,172
11,203
Short-Term
Income
Fund
(
a)
1,924,464
23,652
$
34,855
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
19.65%
Equity
Income
Account
(
a)
481,474
13,572
Government
&
High
Quality
Bond
Account
(
a)
2,393,062
23,476
$
37,048
TOTAL
INVESTMENT
COMPANIES
$
188,444
Total
Investments
$
188,444
Other
Assets
and
Liabilities
- 0.07
%
141
TOTAL
NET
ASSETS
-
100.00%
$
188,585
(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
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
68.87%
Domestic
Equity
Funds
14.25%
International
Equity
Funds
11.60%
Specialty
Funds
4.94%
Money
Market
Funds
0.27%
Other
Assets
and
Liabilities
0.07%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SAM
Flexible
Income
Portfolio
December
31,
2019
See
accompanying
notes.
97
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
1,887
$
1,679
$
840
$
3,401
Core
Fixed
Income
Fund
—
48,670
4,316
45,508
Edge
MidCap
Fund
2,515
613
829
2,998
Equity
Income
Account
11,253
2,063
2,335
13,572
Global
Diversified
Income
Fund
8,979
1,175
1,538
9,319
Global
Real
Estate
Securities
Fund
6,772
919
2,129
6,690
Government
&
High
Quality
Bond
Account
21,000
5,395
3,601
23,476
High
Yield
Fund
7,655
2,290
2,316
8,171
Income
Account
42,682
635
45,071
—
Inflation
Protection
Fund
12,205
796
2,517
11,203
Principal
Active
Global
Dividend
Income
ETF
12,255
—
—
15,187
Principal
Active
Income
ETF
5,670
—
987
5,100
Principal
Government
Money
Market
Fund
1.41%
1,632
8,234
9,355
511
Principal
Investment
Grade
Corporate
Active
ETF
5,868
—
3,373
2,864
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
6,337
—
987
6,874
Real
Estate
Debt
Income
Fund
3,406
134
3,702
—
Short-Term
Income
Fund
23,258
3,528
3,669
23,652
Spectrum
Preferred
and
Capital
Securities
Income
Fund
9,184
1,364
1,602
9,918
$
182,558
$
77,495
$
89,167
$
188,444
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
26
$
(4)
$
127
$
679
Core
Fixed
Income
Fund
81
7
39
—
1,115
Edge
MidCap
Fund
30
8
88
691
Equity
Income
Account
285
546
283
2,045
Global
Diversified
Income
Fund
476
2
—
70
1
Global
Real
Estate
Securities
Fund
226
119
197
1,009
Government
&
High
Quality
Bond
Account
624
(82)
—
764
High
Yield
Fund
485
18
—
524
Income
Account
—
3,169
—
(1,415)
Inflation
Protection
Fund
207
(28)
—
747
Principal
Active
Global
Dividend
Income
ETF
418
—
—
2,932
Principal
Active
Income
ETF
266
3
—
414
Principal
Government
Money
Market
Fund
1.41%
34
—
—
—
Principal
Investment
Grade
Corporate
Active
ETF
227
86
24
283
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
151
93
—
1,431
Real
Estate
Debt
Income
Fund
76
84
—
78
Short-Term
Income
Fund
571
(8)
—
543
Spectrum
Preferred
and
Capital
Securities
Income
Fund
492
(49)
—
1,021
$
5,41
1
$
3,99
6
$
719
$
13,56
2
Amounts
in
thousands.
Schedule
of
Investments
SAM
Strategic
Growth
Portfolio
December
31,
2019
See
accompanying
notes.
98
INVESTMENT
COMPANIES
-
99.93%
Shares
Held
Value
(000's)
Money
Market
Funds
-
0.22%
Principal
Government
Money
Market
Fund
1.41
%
(a),(b)
696,254
$
696
Principal
Exchange-Traded
Funds
-
16.89%
Principal
Active
Global
Dividend
Income
ETF
(
a)
606,000
18,213
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
(
a)
715,000
22,380
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
(
a)
389,100
12,669
$
53,262
Principal
Funds,
Inc.
Class
R-6
-
61.46%
Blue
Chip
Fund
(
a)
1,808,842
48,441
Diversified
International
Fund
(
a)
5,256,925
67,657
Edge
MidCap
Fund
(
a)
1,364,127
21,089
Global
Real
Estate
Securities
Fund
(
a)
1,544,414
16,031
International
Small
Company
Fund
(
a)
690,005
7,873
LargeCap
Growth
Fund
I
(
a)
988,021
15,867
Origin
Emerging
Markets
Fund
(
a)
1,467,523
16,906
$
193,864
Principal
Funds,
Inc.
Institutional
Class
-
2.44%
LargeCap
Value
Fund
III
(
a)
452,417
7,700
Principal
Variable
Contracts
Funds,
Inc. Class
1
-
18.92%
Equity
Income
Account
(
a)
2,116,647
59,669
TOTAL
INVESTMENT
COMPANIES
$
315,191
Total
Investments
$
315,191
Other
Assets
and
Liabilities
- 0.07
%
222
TOTAL
NET
ASSETS
-
100.00%
$
315,413
(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
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
59.56%
Fixed
Income
Funds
21.45%
International
Equity
Funds
18.70%
Money
Market
Funds
0.22%
Other
Assets
and
Liabilities
0.07%
TOTAL
NET
ASSETS
100.00%
Affiliated
Securities
December
31,
2018
Purchases
(a)
Sales
(a)
December
31,
2019
Value
Cost
Proceeds
Value
Blue
Chip
Fund
$
37,817
$
3,754
$
5,141
$
48,441
Diversified
International
Fund
Class
R-6
—
65,285
2,811
67,657
Diversified
International
Fund
Institutional
Class
48,705
809
54,608
—
Edge
MidCap
Fund
16,394
1,875
1,864
21,089
Equity
Income
Account
48,144
4,875
4,507
59,669
Global
Real
Estate
Securities
Fund
14,841
1,598
2,905
16,031
International
Small
Company
Fund
4,479
2,656
464
7,873
LargeCap
Growth
Fund
I
—
16,152
454
15,867
LargeCap
Value
Fund
III
—
7,773
163
7,700
Origin
Emerging
Markets
Fund
8,731
6,320
778
16,906
Principal
Active
Global
Dividend
Income
ETF
14,018
78
2
—
18,213
Principal
Active
Income
ETF
11,476
—
11,931
—
Principal
Government
Money
Market
Fund
1.41%
798
32,565
32,667
696
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
33,899
190
19,029
22,380
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
10,392
465
—
12,669
Short-Term
Income
Fund
5,121
2,677
7,923
—
$
254,815
$
147,77
6
$
145,24
5
$
315,191
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Blue
Chip
Fund
$
373
$
(92)
$
1,791
$
12,103
Diversified
International
Fund
Class
R-6
1,52
2
(70)
—
5,253
Diversified
International
Fund
Institutional
Class
—
(42)
—
5,136
Edge
MidCap
Fund
213
3
618
4,681
Equity
Income
Account
1,261
(110)
1,252
11,267
Global
Real
Estate
Securities
Fund
533
74
463
2,423
International
Small
Company
Fund
224
6
—
1,196
LargeCap
Growth
Fund
I
40
(6)
1,148
175
LargeCap
Value
Fund
III
172
—
306
90
Origin
Emerging
Markets
Fund
298
1
—
2,632
Principal
Active
Global
Dividend
Income
ETF
485
—
—
3,413
Principal
Active
Income
ETF
213
22
—
433
Principal
Government
Money
Market
Fund
1.41%
24
—
—
—
Principal
U.S.
Mega-Cap
Multi-Factor
Index
ETF
609
1,758
—
5,562
Principal
U.S.
Small-Cap
Multi-Factor
Index
ETF
171
—
—
1,812
Short-Term
Income
Fund
69
72
—
53
$
6,20
7
$
1,616
$
5,578
$
56,229
Amounts
in
thousands.
(a)
Purchases
and
Sales
include
transactions
related
to
the
transition
of
assets
from
the
Institutional
Class
to
Class
R-6.
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
99
INVESTMENT
COMPANIES
-
3.63%
Shares
Held
Value
(000's)
Money
Market
Funds
-
3.63%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
309,002
$
309
Principal
Government
Money
Market
Fund
1.41
%
(a),(c)
4,443,889
4,444
$
4,753
TOTAL
INVESTMENT
COMPANIES
$
4,753
BONDS
-
90.82%
Principal
Amount
(000's)
Value
(000's)
Aerospace
&
Defense
-
0.74%
General
Dynamics
Corp
2.88
%,
05
/11/2020
$
200
$
201
3.00
%,
05
/11/2021
250
254
Northrop
Grumman
Corp
2.08
%,
10
/15/2020
150
150
Rockwell
Collins
Inc
3.20
%,
03
/15/2024
250
260
United
Technologies
Corp
1.90
%,
05
/04/2020
100
100
$
965
Airlines
-
0.35%
American
Airlines
2013-2
Class
A
Pass
Through
Trust
4.95
%,
07
/15/2024
253
264
Delta
Air
Lines
2012-1
Class
A
Pass
Through
Trust
4.75
%,
11
/07/2021
191
193
$
457
Automobile
Asset
Backed
Securities
-
7.33%
Americredit
Automobile
Receivables
Trust
2018-1
3.07
%,
12
/19/2022
250
251
Americredit
Automobile
Receivables
Trust
2018-2
3.15
%,
03
/20/2023
200
202
Americredit
Automobile
Receivables
Trust
2018-3
3.11
%,
01
/18/2022
188
188
Americredit
Automobile
Receivables
Trust
2019-1
2.93
%,
06
/20/2022
201
202
2.97
%,
11
/20/2023
200
202
Americredit
Automobile
Receivables
Trust
2019-2
2.28
%,
01
/18/2024
400
402
2.43
%,
09
/19/2022
189
190
AmeriCredit
Automobile
Receivables
Trust
2019-3
2.17
%,
01
/18/2023
259
259
Bank
of
The
West
Auto
Trust
2018-1
3.09
%,
04
/15/2021
(d)
108
108
Capital
Auto
Receivables
Asset
Trust
2018-2
3.02
%,
02
/22/2021
(d)
148
148
3.27
%,
06
/20/2023
(d)
250
252
CPS
Auto
Receivables
Trust
2018-B
2.72
%,
09
/15/2021
(d)
13
12
CPS
Auto
Receivables
Trust
2018-D
3.06
%,
01
/18/2022
(d)
146
146
CPS
Auto
Receivables
Trust
2019-A
3.18
%,
06
/15/2022
(d)
113
114
CPS
Auto
Receivables
Trust
2019-B
2.89
%,
05
/16/2022
(d)
138
138
CPS
Auto
Receivables
Trust
2019-C
2.55
%,
09
/15/2022
(d)
186
186
CPS
Auto
Trust
2.87
%,
09
/15/2021
(d)
58
58
Ford
Credit
Auto
Owner
Trust
2015-REV2
2.44
%,
01
/15/2027
(d)
173
173
Ford
Credit
Auto
Owner
Trust
2016-REV2
2.03
%,
12
/15/2027
(d)
750
750
Ford
Credit
Auto
Owner
Trust
2017-REV1
2.62
%,
08
/15/2028
(d)
500
506
Ford
Credit
Auto
Owner
Trust
2018-REV2
3.47
%,
01
/15/2030
(d)
400
418
Ford
Credit
Auto
Owner
Trust
2019-REV1
3.52
%,
07
/15/2030
(d)
300
315
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Automobile
Asset
Backed
Securities
(continued)
OneMain
Direct
Auto
Receivables
Trust
2017-2
2.31
%,
12
/14/2021
(d)
$
39
$
39
OneMain
Direct
Auto
Receivables
Trust
2018-1
3.43
%,
12
/16/2024
(d)
500
507
OneMain
Direct
Auto
Receivables
Trust
2019-1
3.63
%,
09
/14/2027
(d)
750
772
Santander
Drive
Auto
Receivables
Trust
2018-4
3.01
%,
03
/15/2022
50
50
Santander
Drive
Auto
Receivables
Trust
2019-1
2.91
%,
01
/18/2022
53
53
Santander
Drive
Auto
Receivables
Trust
2019-3
2.28
%,
02
/15/2022
500
500
TCF
Auto
Receivables
Owner
Trust
2016-PT1
1.93
%,
06
/15/2022
(d)
134
134
Toyota
Auto
Loan
Extended
Note
Trust
2019-1
2.56
%,
11
/25/2031
(d)
250
254
Westlake
Automobile
Receivables
Trust
2018-2
2.84
%,
09
/15/2021
(d)
22
22
3.20
%,
01
/16/2024
(d)
200
201
Westlake
Automobile
Receivables
Trust
2018-3
2.98
%,
01
/18/2022
(d)
114
114
3.32
%,
10
/16/2023
(d)
300
302
Westlake
Automobile
Receivables
Trust
2019-1
3.06
%,
05
/16/2022
(d)
222
223
3.26
%,
10
/17/2022
(d)
350
354
Westlake
Automobile
Receivables
Trust
2019-3
2.15
%,
02
/15/2023
(d)
250
250
World
Omni
Select
Auto
Trust
2018-1
3.24
%,
04
/15/2022
(d)
99
99
World
Omni
Select
Auto
Trust
2019-A
2.06
%,
08
/15/2023
500
500
$
9,594
Automobile
Floor
Plan
Asset
Backed
Securities
-
1.46%
Ally
Master
Owner
Trust
2.70
%,
01
/17/2023
500
504
3.29
%,
05
/15/2023
500
509
Navistar
Financial
Dealer
Note
Master
Owner
Trust
II
2.42
%,
09
/25/2023
(d)
250
250
1.00
x
1
Month
USD
LIBOR
+
0.63%
Volvo
Financial
Equipment
Master
Owner
Trust
2.24
%,
11
/15/2022
(d)
250
251
1.00
x
1
Month
USD
LIBOR
+
0.50%
2.26
%,
07
/17/2023
(d)
400
401
1.00
x
1
Month
USD
LIBOR
+
0.52%
$
1,915
Automobile
Manufacturers
-
0.73%
General
Motors
Financial
Co
Inc
2.86
%,
04
/09/2021
300
301
3
Month
USD
LIBOR
+
0.85%
PACCAR
Financial
Corp
3.10
%,
05
/10/2021
250
254
Toyota
Motor
Credit
Corp
2.60
%,
01
/11/2022
400
406
$
961
Banks
-
18.29%
Bank
of
America
Corp
2.50
%,
10
/21/2022
500
505
2.63
%,
10
/19/2020
250
251
3.00
%,
12
/20/2023
(e)
430
440
3
Month
USD
LIBOR
+
0.79%
3.13
%,
01
/20/2023
350
355
3
Month
USD
LIBOR
+
1.16%
4.20
%,
08
/26/2024
500
537
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
100
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Bank
of
New
York
Mellon
Corp/The
2.10
%,
10
/24/2024
$
250
$
250
2.50
%,
04
/15/2021
300
302
2.99
%,
10
/30/2023
500
509
3
Month
USD
LIBOR
+
1.05%
BNP
Paribas
SA
3.50
%,
03
/01/2023
(d)
250
259
Capital
One
NA
3.09
%,
01
/30/2023
600
607
3
Month
USD
LIBOR
+
1.15%
Citigroup
Inc
2.70
%,
03
/30/2021
900
908
2.90
%,
04
/25/2022
200
203
3
Month
USD
LIBOR
+
0.96%
3.50
%,
05
/15/2023
250
260
4.00
%,
08
/05/2024
274
293
4.04
%,
06
/01/2024
(e)
250
264
3
Month
USD
LIBOR
+
1.02%
Credit
Suisse
AG/New
York
NY
2.10
%,
11
/12/2021
250
251
Credit
Suisse
Group
AG
4.21
%,
06
/12/2024
(d),(e)
500
529
3
Month
USD
LIBOR
+
1.24%
Fifth
Third
Bancorp
2.60
%,
06
/15/2022
600
608
3.65
%,
01
/25/2024
200
211
4.30
%,
01
/16/2024
400
430
Fifth
Third
Bank/Cincinnati
OH
2.25
%,
06
/14/2021
300
302
Goldman
Sachs
Group
Inc/The
3.00
%,
04
/26/2022
950
962
3.09
%,
04
/23/2020
400
401
3
Month
USD
LIBOR
+
1.16%
HSBC
Holdings
PLC
2.63
%,
11
/07/2025
(e)
200
201
3
Month
USD
LIBOR
+
1.14%
3.95
%,
05
/18/2024
(e)
250
263
3
Month
USD
LIBOR
+
0.99%
ING
Groep
NV
3.15
%,
03
/29/2022
450
460
JPMorgan
Chase
&
Co
2.30
%,
08
/15/2021
250
251
2.84
%,
04
/25/2023
500
504
3
Month
USD
LIBOR
+
0.90%
3.17
%,
10
/24/2023
500
508
3
Month
USD
LIBOR
+
1.23%
4.25
%,
10
/15/2020
750
763
KeyBank
NA/Cleveland
OH
2.40
%,
06
/09/2022
400
404
3.30
%,
02
/01/2022
250
257
KeyCorp
5.10
%,
03
/24/2021
488
506
Morgan
Stanley
2.45
%,
02
/10/2021
300
300
3
Month
USD
LIBOR
+
0.55%
3.34
%,
10
/24/2023
1,400
1,430
3
Month
USD
LIBOR
+
1.40%
4.10
%,
05
/22/2023
300
317
MUFG
Union
Bank
NA
2.10
%,
12
/09/2022
250
251
PNC
Bank
NA
2.00
%,
05
/19/2020
500
500
2.44
%,
07
/27/2022
400
402
3
Month
USD
LIBOR
+
0.50%
2.70
%,
11
/01/2022
600
612
PNC
Financial
Services
Group
Inc/The
3.90
%,
04
/29/2024
150
160
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Banks
(continued)
Royal
Bank
of
Scotland
Group
PLC
4.27
%,
03
/22/2025
(e)
$
250
$
266
3
Month
USD
LIBOR
+
1.76%
State
Street
Corp
2.35
%,
11
/01/2025
(e)
200
201
United
States
Secured
Overnight
Financing
Rate
+
0.94%
3.10
%,
05
/15/2023
688
710
Truist
Bank
2.45
%,
08
/01/2022
700
708
2.49
%,
08
/02/2022
250
251
3
Month
USD
LIBOR
+
0.59%
2.63
%,
01
/15/2022
600
608
Truist
Financial
Corp
2.05
%,
05
/10/2021
200
200
2.90
%,
03
/03/2021
500
505
UBS
AG/London
2.20
%,
06
/08/2020
(d)
500
500
UBS
Group
AG
3.49
%,
05
/23/2023
(d)
300
309
US
Bancorp
3.60
%,
09
/11/2024
350
372
US
Bank
NA/Cincinnati
OH
1.95
%,
01
/09/2023
250
250
2.05
%,
10
/23/2020
300
300
Wells
Fargo
&
Co
3.07
%,
01
/24/2023
1,000
1,021
$
23,927
Beverages
-
0.77%
Anheuser-Busch
InBev
Worldwide
Inc
4.15
%,
01
/23/2025
500
545
Keurig
Dr
Pepper
Inc
3.55
%,
05
/25/2021
250
255
PepsiCo
Inc
2.15
%,
10
/14/2020
200
201
$
1,001
Biotechnology
-
0.85%
Amgen
Inc
2.20
%,
05
/11/2020
200
200
2.65
%,
05
/11/2022
400
406
Biogen
Inc
2.90
%,
09
/15/2020
500
504
$
1,110
Building
Materials
-
0.29%
Martin
Marietta
Materials
Inc
4.25
%,
07
/02/2024
349
374
Chemicals
-
1.07%
Air
Liquide
Finance
SA
1.75
%,
09
/27/2021
(d)
250
249
Celanese
US
Holdings
LLC
3.50
%,
05
/08/2024
200
207
Chevron
Phillips
Chemical
Co
LLC
/
Chevron
Phillips
Chemical
Co
LP
2.45
%,
05
/01/2020
(d)
168
168
3.30
%,
05
/01/2023
(d)
200
206
DuPont
de
Nemours
Inc
4.21
%,
11
/15/2023
250
267
International
Flavors
&
Fragrances
Inc
3.40
%,
09
/25/2020
100
101
Westlake
Chemical
Corp
3.60
%,
07
/15/2022
200
205
$
1,403
Commercial
Mortgage
Backed
Securities
-
1.04%
Ginnie
Mae
0.43
%,
09
/16/2055
(f),(g)
2,513
68
0.65
%,
01
/16/2054
(f),(g)
2,509
72
0.67
%,
10
/16/2054
(f),(g)
3,159
91
0.83
%,
02
/16/2055
(f),(g)
5,324
153
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
101
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Commercial
Mortgage
Backed
Securities
(continued)
Ginnie
Mae
(continued)
0.84
%,
01
/16/2055
(f),(g)
$
5,129
$
179
0.89
%,
06
/16/2045
(f),(g)
913
43
1.37
%,
12
/16/2036
(f),(g)
1,916
90
GS
Mortgage
Securities
Trust
2017-GS6
1.95
%,
05
/10/2050
391
390
JPMDB
Commercial
Mortgage
Securities
Trust
2016-C4
1.54
%,
12
/15/2049
272
270
$
1,356
Computers
-
0.78%
Apple
Inc
1.90
%,
02
/07/2020
200
200
2.50
%,
02
/09/2022
150
152
Dell
International
LLC
/
EMC
Corp
5.45
%,
06
/15/2023
(d)
200
217
International
Business
Machines
Corp
2.25
%,
02
/19/2021
250
251
2.80
%,
05
/13/2021
200
203
$
1,023
Credit
Card
Asset
Backed
Securities
-
0.61%
BA
Credit
Card
Trust
1.74
%,
01
/15/2025
800
798
Diversified
Financial
Services
-
1.25%
American
Express
Co
2.75
%,
05
/20/2022
200
204
3.00
%,
02
/22/2021
250
253
3.70
%,
11
/05/2021
150
155
Capital
One
Financial
Corp
3.90
%,
01
/29/2024
100
106
GTP
Acquisition
Partners
I
LLC
2.35
%,
06
/15/2045
(d)
721
721
USAA
Capital
Corp
2.63
%,
06
/01/2021
(d)
200
202
$
1,641
Electric
-
5.40%
Alabama
Power
Co
2.45
%,
03
/30/2022
250
253
Alliant
Energy
Finance
LLC
3.75
%,
06
/15/2023
(d)
200
209
Black
Hills
Corp
4.25
%,
11
/30/2023
750
795
CenterPoint
Energy
Inc
3.60
%,
11
/01/2021
300
308
Dominion
Energy
Inc
2.58
%,
07
/01/2020
200
200
2.72
%,
08
/15/2021
(g)
200
202
3.07
%,
08
/15/2024
(g)
200
206
DTE
Energy
Co
2.25
%,
11
/01/2022
250
250
2.60
%,
06
/15/2022
200
201
Duke
Energy
Florida
LLC
1.85
%,
01
/15/2020
(h)
400
400
3.10
%,
08
/15/2021
250
254
Emera
US
Finance
LP
2.70
%,
06
/15/2021
300
303
Evergy
Inc
2.45
%,
09
/15/2024
200
201
Exelon
Corp
3.50
%,
06
/01/2022
500
514
Indiantown
Cogeneration
LP
9.77
%,
12
/15/2020
57
59
LG&E
&
KU
Energy
LLC
4.38
%,
10
/01/2021
310
320
NextEra
Energy
Capital
Holdings
Inc
2.90
%,
04
/01/2022
150
153
3.15
%,
04
/01/2024
150
156
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Electric
(continued)
Public
Service
Enterprise
Group
Inc
2.88
%,
06
/15/2024
$
100
$
102
San
Diego
Gas
&
Electric
Co
1.91
%,
02
/01/2022
72
72
Sempra
Energy
2.40
%,
02
/01/2020
250
250
2.50
%,
01
/15/2021
500
500
3
Month
USD
LIBOR
+
0.50%
Southern
California
Edison
Co
1.85
%,
02
/01/2022
148
146
Tucson
Electric
Power
Co
3.05
%,
03
/15/2025
100
103
Vistra
Operations
Co
LLC
3.70
%,
01
/30/2027
(d)
500
497
WEC
Energy
Group
Inc
3.38
%,
06
/15/2021
400
408
$
7,062
Electronics
-
0.69%
Fortive
Corp
2.35
%,
06
/15/2021
300
301
Honeywell
International
Inc
1.85
%,
11
/01/2021
400
401
2.15
%,
08
/08/2022
200
202
$
904
Environmental
Control
-
0.16%
Republic
Services
Inc
2.50
%,
08
/15/2024
100
101
Waste
Management
Inc
2.95
%,
06
/15/2024
100
103
$
204
Finance
-
Mortgage
Loan/Banker
-
9.50%
Fannie
Mae
1.25
%,
08
/17/2021
600
597
1.38
%,
02
/26/2021
800
798
1.75
%,
07
/02/2024
600
601
1.88
%,
09
/24/2026
4,550
4,542
2.13
%,
04
/24/2026
2,000
2,030
2.50
%,
02
/05/2024
500
515
2.63
%,
09
/06/2024
750
781
Freddie
Mac
2.38
%,
02
/16/2021
1,000
1,008
2.75
%,
06
/19/2023
1,500
1,558
$
12,430
Food
-
1.28%
Conagra
Brands
Inc
2.70
%,
10
/22/2020
250
250
3
Month
USD
LIBOR
+
0.75%
3.80
%,
10
/22/2021
500
516
Kraft
Heinz
Foods
Co
2.47
%,
02
/10/2021
400
401
3
Month
USD
LIBOR
+
0.57%
4.00
%,
06
/15/2023
150
158
Tyson
Foods
Inc
2.25
%,
08
/23/2021
150
150
2.34
%,
08
/21/2020
200
200
3
Month
USD
LIBOR
+
0.45%
$
1,675
Healthcare
-
Services
-
0.27%
Humana
Inc
2.50
%,
12
/15/2020
100
100
UnitedHealth
Group
Inc
1.95
%,
10
/15/2020
250
250
$
350
Home
Builders
-
0.15%
DR
Horton
Inc
2.50
%,
10
/15/2024
200
200
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
102
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Home
Furnishings
-
0.15%
Panasonic
Corp
2.54
%,
07
/19/2022
(d)
$
200
$
202
Insurance
-
3.67%
Allstate
Corp/The
2.59
%,
03
/29/2023
250
251
3
Month
USD
LIBOR
+
0.63%
Berkshire
Hathaway
Inc
2.75
%,
03
/15/2023
500
513
Five
Corners
Funding
Trust
4.42
%,
11
/15/2023
(d)
750
814
MassMutual
Global
Funding
II
2.00
%,
04
/15/2021
(d)
450
451
Metropolitan
Life
Global
Funding
I
1.95
%,
09
/15/2021
(d)
470
470
2.11
%,
09
/07/2020
(d)
250
250
United
States
Secured
Overnight
Financing
Rate
+
0.57%
2.29
%,
06
/12/2020
(d)
250
250
3
Month
USD
LIBOR
+
0.40%
New
York
Life
Global
Funding
1.95
%,
02
/11/2020
(d)
400
400
2.00
%,
04
/13/2021
(d)
400
401
2.41
%,
06
/10/2022
(d)
1,000
1,005
3
Month
USD
LIBOR
+
0.52%
$
4,805
Lodging
-
0.16%
Las
Vegas
Sands
Corp
3.20
%,
08
/08/2024
200
206
Machinery
-
Construction
&
Mining
-
0.23%
Caterpillar
Financial
Services
Corp
2.55
%,
11
/29/2022
300
306
Machinery
-
Diversified
-
0.27%
John
Deere
Capital
Corp
2.05
%,
03
/10/2020
350
350
Media
-
0.26%
Discovery
Communications
LLC
3.25
%,
04
/01/2023
200
206
Sky
Ltd
3.13
%,
11
/26/2022
(d)
130
133
$
339
Mining
-
0.16%
Glencore
Funding
LLC
4.13
%,
05
/30/2023
(d)
200
208
Miscellaneous
Manufacturers
-
0.77%
General
Electric
Co
5.50
%,
01
/08/2020
150
150
Ingersoll-Rand
Global
Holding
Co
Ltd
2.90
%,
02
/21/2021
500
505
Siemens
Financieringsmaatschappij
NV
2.20
%,
03
/16/2020
(d)
350
350
$
1,005
Mortgage
Backed
Securities
-
7.20%
Chase
Home
Lending
Mortgage
Trust
2019-1
3.50
%,
03
/25/2050
(d),(g)
245
249
CHL
Mortgage
Pass-Through
Trust
2003-46
3.91
%,
01
/19/2034
(g)
27
28
Credit
Suisse
First
Boston
Mortgage
Securities
Corp
5.00
%,
09
/25/2019
1
1
CSMC
2017-HL1
Trust
3.50
%,
06
/25/2047
(d),(g)
400
404
CSMC
2017-HL2
Trust
3.50
%,
10
/25/2047
(d),(g)
343
348
JP
Morgan
Mortgage
Trust
2004-A3
4.46
%,
07
/25/2034
(g)
17
18
JP
Morgan
Mortgage
Trust
2004-S1
5.00
%,
09
/25/2034
19
19
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
JP
Morgan
Mortgage
Trust
2016-4
3.50
%,
10
/25/2046
(d),(g)
$
465
$
474
JP
Morgan
Mortgage
Trust
2017-2
3.50
%,
05
/25/2047
(d),(g)
314
318
JP
Morgan
Mortgage
Trust
2017-4
3.50
%,
11
/25/2048
(d),(g)
290
293
JP
Morgan
Mortgage
Trust
2017-6
3.50
%,
12
/25/2048
(d),(g)
168
170
JP
Morgan
Mortgage
Trust
2018-3
3.50
%,
09
/25/2048
(d),(g)
369
374
JP
Morgan
Mortgage
Trust
2018-4
3.50
%,
10
/25/2048
(d),(g)
216
219
JP
Morgan
Mortgage
Trust
2018-6
3.50
%,
12
/25/2048
(d),(g)
225
227
JP
Morgan
Mortgage
Trust
2019-2
4.00
%,
08
/25/2049
(d),(g)
154
155
JP
Morgan
Mortgage
Trust
2019-5
4.00
%,
11
/25/2049
(d),(g)
314
316
PHH
Mortgage
Trust
Series
2008-CIM1
3.94
%,
06
/25/2038
82
81
1.00
x
1
Month
USD
LIBOR
+
2.25%
Prime
Mortgage
Trust
2005-2
5.25
%,
07
/25/2020
25
25
Provident
Funding
Mortgage
Loan
Trust
2005-1
2.37
%,
05
/25/2035
55
55
1.00
x
1
Month
USD
LIBOR
+
0.58%
PSMC
2018-1
Trust
3.50
%,
02
/25/2048
(d),(g)
600
609
PSMC
2018-2
Trust
3.50
%,
06
/25/2048
(d),(g)
361
365
PSMC
2018-3
Trust
4.00
%,
08
/25/2048
(d),(g)
480
483
PSMC
2018-4
Trust
4.00
%,
11
/25/2048
(d),(g)
332
332
RALI
Series
2003-QS23
Trust
5.00
%,
12
/26/2018
1
1
RBSSP
Resecuritization
Trust
2009-7
2.11
%,
06
/26/2037
(d)
9
9
1.00
x
1
Month
USD
LIBOR
+
0.40%
Sequoia
Mortgage
Trust
2013-4
1.55
%,
04
/25/2043
(g)
37
36
Sequoia
Mortgage
Trust
2013-8
2.25
%,
06
/25/2043
(g)
216
215
Sequoia
Mortgage
Trust
2017-1
3.50
%,
02
/25/2047
(d),(g)
341
345
Sequoia
Mortgage
Trust
2017-2
3.50
%,
02
/25/2047
(d),(g)
165
168
Sequoia
Mortgage
Trust
2017-3
3.50
%,
04
/25/2047
(d),(g)
294
299
Sequoia
Mortgage
Trust
2018-3
3.50
%,
03
/25/2048
(d),(g)
204
206
Sequoia
Mortgage
Trust
2018-5
3.50
%,
05
/25/2048
(d),(g)
325
328
Sequoia
Mortgage
Trust
2018-6
4.00
%,
07
/25/2048
(d),(g)
108
108
Sequoia
Mortgage
Trust
2018-7
4.00
%,
09
/25/2048
(d),(g)
110
111
Sequoia
Mortgage
Trust
2018-8
4.00
%,
11
/25/2048
(d),(g)
384
387
Sequoia
Mortgage
Trust
2018-CH3
4.00
%,
08
/25/2048
(d),(g)
102
102
Sequoia
Mortgage
Trust
2019-1
4.00
%,
02
/25/2049
(d),(g)
81
82
Wells
Fargo
Mortgage
Backed
Securities
2018-1
3.50
%,
07
/25/2047
(d),(g)
310
314
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
103
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Mortgage
Backed
Securities
(continued)
Wells
Fargo
Mortgage
Backed
Securities
2019-1
Trust
4.00
%,
11
/25/2048
(d),(g)
$
270
$
271
4.00
%,
11
/25/2048
(d),(g)
213
212
Wells
Fargo
Mortgage
Backed
Securities
2019-3
Trust
3.00
%,
07
/25/2049
(d),(g)
410
412
Wells
Fargo
Mortgage
Backed
Securities
2019-4
Trust
3.50
%,
09
/25/2049
(d),(g)
247
251
$
9,420
Oil
&
Gas
-
1.25%
Chevron
Corp
2.90
%,
03
/03/2024
250
259
Cimarex
Energy
Co
4.38
%,
06
/01/2024
250
264
Phillips
66
2.75
%,
04
/15/2020
(d)
300
300
3
Month
USD
LIBOR
+
0.75%
Shell
International
Finance
BV
2.13
%,
05
/11/2020
505
506
2.38
%,
08
/21/2022
300
304
$
1,633
Oil
&
Gas
Services
-
0.20%
Baker
Hughes
a
GE
Co
LLC
/
Baker
Hughes
Co-
Obligor
Inc
2.77
%,
12
/15/2022
250
255
Other
Asset
Backed
Securities
-
6.81%
CCG
Receivables
Trust
2.80
%,
09
/14/2026
(d)
500
504
CCG
Receivables
Trust
2018-1
2.50
%,
06
/16/2025
(d)
38
38
CCG
Receivables
Trust
2018-2
3.09
%,
12
/15/2025
(d)
325
328
CCG
Receivables
Trust
2019-2
2.11
%,
03
/15/2027
(d)
400
400
Daimler
Trucks
Retail
Trust
2019-1
2.77
%,
04
/15/2021
(d)
422
423
Drug
Royalty
II
LP
2
3.48
%,
07
/15/2023
(d)
31
31
Drug
Royalty
III
LP
1
3.98
%,
04
/15/2027
(d)
35
35
4.27
%,
10
/15/2031
(d)
198
203
4.80
%,
04
/15/2027
(d)
115
116
1.00
x
3
Month
USD
LIBOR
+
2.50%
MMAF
Equipment
Finance
LLC
2018-A
2.92
%,
07
/12/2021
(d)
100
101
MMAF
Equipment
Finance
LLC
2019-A
2.84
%,
01
/10/2022
(d)
389
390
MVW
Owner
Trust
2015-1
2.52
%,
12
/20/2032
(d)
173
173
MVW
Owner
Trust
2016-1
2.25
%,
12
/20/2033
(d)
146
145
MVW
Owner
Trust
2018-1
3.45
%,
01
/21/2036
(d)
341
351
PFS
Financing
Corp
2.23
%,
10
/15/2024
(d)
750
747
2.40
%,
10
/17/2022
(d)
300
300
2.86
%,
04
/15/2024
(d)
250
253
3.19
%,
04
/17/2023
(d)
250
253
Verizon
Owner
Trust
2016-2
1.68
%,
05
/20/2021
(d)
25
25
Verizon
Owner
Trust
2017-1
2.06
%,
09
/20/2021
(d)
59
59
Verizon
Owner
Trust
2017-2
1.92
%,
12
/20/2021
(d)
324
324
Verizon
Owner
Trust
2017-3
2.06
%,
04
/20/2022
(d)
236
236
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Other
Asset
Backed
Securities
(continued)
Verizon
Owner
Trust
2018-1
2.82
%,
09
/20/2022
(d)
$
500
$
503
Verizon
Owner
Trust
2018-A
3.23
%,
04
/20/2023
600
610
Verizon
Owner
Trust
2019-A
2.93
%,
09
/20/2023
500
508
Verizon
Owner
Trust
2019-B
2.33
%,
12
/20/2023
500
504
Verizon
Owner
Trust
2019-C
1.94
%,
04
/22/2024
500
500
Volvo
Financial
Equipment
LLC
2.02
%,
08
/15/2022
(d)
250
250
Volvo
Financial
Equipment
LLC
Series
2018-1
2.76
%,
10
/17/2022
(d)
100
101
Volvo
Financial
Equipment
LLC
Series
2019-1
3.00
%,
03
/15/2023
(d)
300
304
VSE
2018-A
VOI
Mortgage
LLC
3.56
%,
02
/20/2036
(d)
184
190
$
8,905
Pharmaceuticals
-
2.67%
AbbVie
Inc
2.15
%,
11
/19/2021
(d)
500
501
2.30
%,
05
/14/2021
200
201
2.50
%,
05
/14/2020
336
337
Bayer
US
Finance
II
LLC
3.88
%,
12
/15/2023
(d)
200
210
Bristol-Myers
Squibb
Co
2.90
%,
07
/26/2024
(d)
150
155
3.25
%,
08
/15/2022
(d)
250
258
3.63
%,
05
/15/2024
(d)
350
370
Cigna
Corp
3.40
%,
09
/17/2021
389
398
4.00
%,
02
/15/2022
(d)
100
103
CVS
Health
Corp
2.63
%,
08
/15/2024
250
252
Mead
Johnson
Nutrition
Co
3.00
%,
11
/15/2020
250
252
Merck
&
Co
Inc
2.90
%,
03
/07/2024
200
208
Pfizer
Inc
2.80
%,
03
/11/2022
250
255
$
3,500
Pipelines
-
2.41%
Buckeye
Partners
LP
4.15
%,
07
/01/2023
400
402
Columbia
Pipeline
Group
Inc
3.30
%,
06
/01/2020
168
168
Enterprise
Products
Operating
LLC
3.50
%,
02
/01/2022
500
515
Florida
Gas
Transmission
Co
LLC
3.88
%,
07
/15/2022
(d)
250
257
Kinder
Morgan
Inc/DE
3.28
%,
01
/15/2023
500
507
3
Month
USD
LIBOR
+
1.28%
ONEOK
Partners
LP
5.00
%,
09
/15/2023
325
353
Southeast
Supply
Header
LLC
4.25
%,
06
/15/2024
(d)
200
204
TransCanada
PipeLines
Ltd
4.12
%,
05
/15/2067
900
753
3
Month
USD
LIBOR
+
2.21%
$
3,159
REITs
-
1.64%
Alexandria
Real
Estate
Equities
Inc
3.90
%,
06
/15/2023
250
263
CubeSmart
LP
4.38
%,
12
/15/2023
92
98
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
104
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
REITs
(continued)
Healthcare
Realty
Trust
Inc
3.75
%,
04
/15/2023
$
365
$
377
Omega
Healthcare
Investors
Inc
4.95
%,
04
/01/2024
250
273
SBA
Tower
Trust
2.88
%,
07
/15/2046
(d)
150
150
3.17
%,
04
/09/2047
(d)
400
404
Service
Properties
Trust
4.50
%,
06
/15/2023
200
208
Ventas
Realty
LP
3.50
%,
04
/15/2024
198
207
Welltower
Inc
3.75
%,
03
/15/2023
154
161
$
2,141
Retail
-
0.88%
Home
Depot
Inc/The
1.80
%,
06
/05/2020
500
500
McDonald's
Corp
2.75
%,
12
/09/2020
500
503
Walmart
Inc
1.90
%,
12
/15/2020
150
150
$
1,153
Savings
&
Loans
-
0.00%
Washington
Mutual
Bank
/
Henderson
NV
0.00
%,
01
/15/2013
(
i
)
200
—
Semiconductors
-
0.81%
Broadcom
Corp
/
Broadcom
Cayman
Finance
Ltd
2.38
%,
01
/15/2020
600
600
Microchip
Technology
Inc
4.33
%,
06
/01/2023
200
211
QUALCOMM
Inc
2.60
%,
01
/30/2023
250
255
$
1,066
Software
-
0.69%
Microsoft
Corp
1.85
%,
02
/12/2020
400
400
Oracle
Corp
1.90
%,
09
/15/2021
200
200
VMware
Inc
2.95
%,
08
/21/2022
300
306
$
906
Student
Loan
Asset
Backed
Securities
-
4.98%
Commonbond
Student
Loan
Trust
2018-BGS
3.56
%,
09
/25/2045
(d)
265
269
Commonbond
Student
Loan
Trust
2018-C-GS
3.87
%,
02
/25/2046
(d)
366
375
Commonbond
Student
Loan
Trust
2019-A-GS
2.54
%,
01
/25/2047
(d)
495
490
Keycorp
Student
Loan
Trust
2000-b
2.25
%,
07
/25/2029
321
316
1.00
x
3
Month
USD
LIBOR
+
0.31%
KeyCorp
Student
Loan
Trust
2003-A
2.47
%,
01
/25/2037
653
642
1.00
x
3
Month
USD
LIBOR
+
0.53%
Laurel
Road
Prime
Student
Loan
Trust
2019-A
2.34
%,
10
/25/2048
(d)
178
179
Navient
Private
Education
Loan
Trust
2014-CT
2.44
%,
09
/16/2024
(d)
24
24
1.00
x
1
Month
USD
LIBOR
+
0.70%
Navient
Private
Education
Loan
Trust
2017-A
2.14
%,
12
/16/2058
(d)
3
3
1.00
x
1
Month
USD
LIBOR
+
0.40%
Navient
Private
Education
Loan
Trust
2018-B
2.09
%,
12
/15/2059
(d)
47
47
1.00
x
1
Month
USD
LIBOR
+
0.35%
Navient
Private
Education
Refi
Loan
Trust
2018-A
2.53
%,
02
/18/2042
(d)
100
100
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Student
Loan
Asset
Backed
Securities
(continued)
Navient
Private
Education
Refi
Loan
Trust
2018-C
3.01
%,
06
/16/2042
(d)
$
80
$
80
Navient
Private
Education
Refi
Loan
Trust
2018-D
2.04
%,
12
/15/2059
(d)
123
123
1.00
x
1
Month
USD
LIBOR
+
0.30%
Navient
Private
Education
Refi
Loan
Trust
2019-A
3.03
%,
01
/15/2043
(d)
37
37
3.42
%,
01
/15/2043
(d)
100
102
Navient
Private
Education
Refi
Loan
Trust
2019-C
2.82
%,
02
/15/2068
(d)
302
303
Navient
Private
Education
Refi
Loan
Trust
2019-D
2.14
%,
12
/15/2059
(d)
152
152
1.00
x
1
Month
USD
LIBOR
+
0.40%
Navient
Private
Education
Refi
Loan
Trust
2019-E
2.39
%,
05
/15/2068
(d)
204
204
Navient
Private
Education
Refi
Loan
Trust
2019-F
2.18
%,
08
/15/2068
(d)
236
236
Navient
Private
Education
Refi
Loan
Trust
2019-G
2.40
%,
10
/15/2068
(d)
400
398
Navient
Student
Loan
Trust
2018-EA
3.43
%,
12
/15/2059
(d)
367
369
Navient
Student
Loan
Trust
2019-B
2.14
%,
12
/15/2059
(d)
135
135
1.00
x
1
Month
USD
LIBOR
+
0.40%
SLM
Private
Credit
Student
Loan
Trust
2004-A
2.29
%,
06
/15/2033
112
111
1.00
x
3
Month
USD
LIBOR
+
0.40%
SLM
Private
Credit
Student
Loan
Trust
2004-B
2.22
%,
03
/15/2024
317
316
1.00
x
3
Month
USD
LIBOR
+
0.33%
SLM
Private
Credit
Student
Loan
Trust
2006-A
2.18
%,
06
/15/2039
698
680
1.00
x
3
Month
USD
LIBOR
+
0.29%
SLM
Private
Credit
Student
Loan
Trust
2006-B
2.09
%,
12
/15/2039
275
267
1.00
x
3
Month
USD
LIBOR
+
0.20%
SMB
Private
Education
Loan
Trust
2018-A
2.09
%,
03
/16/2026
(d)
153
153
1.00
x
1
Month
USD
LIBOR
+
0.35%
SMB
Private
Education
Loan
Trust
2018-B
2.06
%,
12
/16/2024
(d)
41
41
1.00
x
1
Month
USD
LIBOR
+
0.32%
SMB
Private
Education
Loan
Trust
2018-C
2.04
%,
09
/15/2025
(d)
66
66
1.00
x
1
Month
USD
LIBOR
+
0.30%
SMB
Private
Education
Loan
Trust
2019-A
2.09
%,
02
/16/2026
(d)
126
126
1.00
x
1
Month
USD
LIBOR
+
0.35%
SMB
Private
Education
Loan
Trust
2019-B
2.09
%,
07
/15/2026
(d)
172
171
1.00
x
1
Month
USD
LIBOR
+
0.35%
$
6,515
Telecommunications
-
2.13%
AT&T
Inc
2.80
%,
02
/15/2023
(h)
250
252
3
Month
USD
LIBOR
+
0.89%
3.60
%,
02
/17/2023
200
209
Cisco
Systems
Inc
2.20
%,
02
/28/2021
250
252
Crown
Castle
Towers
LLC
3.22
%,
05
/15/2022
(d)
272
275
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
105
BONDS
(continued)
Principal
Amount
(000’s)
Value
(000’s)
Telecommunications
(continued)
Sprint
Spectrum
Co
LLC
/
Sprint
Spectrum
Co
II
LLC
/
Sprint
Spectrum
Co
III
LLC
3.36
%,
03
/20/2023
(d)
$
328
$
331
4.74
%,
03
/20/2025
(d)
950
1,006
Verizon
Communications
Inc
2.45
%,
05
/22/2020
200
200
3
Month
USD
LIBOR
+
0.55%
Vodafone
Group
PLC
3.75
%,
01
/16/2024
250
264
$
2,789
Transportation
-
0.31%
Ryder
System
Inc
2.25
%,
09
/01/2021
200
201
3.75
%,
06
/09/2023
200
209
$
410
Trucking
&
Leasing
-
0.16%
Penske
Truck
Leasing
Co
Lp
/
PTL
Finance
Corp
3.45
%,
07
/01/2024
(d)
200
208
TOTAL
BONDS
$
118,831
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
-
4.36%
Principal
Amount
(000's)
Value
(000's)
Federal
Home
Loan
Mortgage
Corporation
(FHLMC)
-
0.01%
4.69
%,
09
/01/2035
$
10
$
11
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.25%
$
11
Federal
National
Mortgage
Association
(FNMA)
-
0.07%
3.59
%,
04
/01/2033
20
20
1.00
x
6
Month
USD
LIBOR
+
1.51%
4.04
%,
11
/01/2032
3
3
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.29%
4.30
%,
07
/01/2034
12
12
1.00
x
12
Month
USD
LIBOR
+
1.65%
4.31
%,
08
/01/2034
6
6
1.00
x
12
Month
USD
LIBOR
+
1.63%
4.45
%,
02
/01/2037
19
20
1.00
x
US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.09%
4.62
%,
02
/01/2035
3
3
1.00
x
6
Month
USD
LIBOR
+
2.07%
4.77
%,
12
/01/2032
4
4
1.00
x
12
Month
USD
LIBOR
+
1.64%
4.87
%,
01
/01/2035
6
7
1.00
x
12
Month
USD
LIBOR
+
1.75%
4.88
%,
12
/01/2033
11
12
1.00
x
6
Month
USD
LIBOR
+
2.25%
8.00
%,
05
/01/2027
5
5
$
92
U.S.
Treasury
-
4.28%
1.38
%,
08
/31/2020
500
499
1.38
%,
09
/30/2020
1,000
998
1.50
%,
08
/31/2021
500
499
1.63
%,
10
/31/2023
1,000
999
1.63
%,
05
/15/2026
900
891
1.88
%,
07
/31/2026
700
703
2.00
%,
08
/15/2025
500
507
2.63
%,
05
/15/2021
500
507
$
5,603
TOTAL
U.S.
GOVERNMENT
&
GOVERNMENT
AGENCY
OBLIGATIONS
$
5,706
Total
Investments
$
129,290
Other
Assets
and
Liabilities
- 1.19
%
1,562
TOTAL
NET
ASSETS
-
100.00%
$
130,852
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$309
or
0.24%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Security
exempt
from
registration
under
Rule
144A
of
the
Securities
Act
of
1933.
These
securities
may
be
resold
in
transactions
exempt
from
registration,
normally
to
qualified
institutional
buyers.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$41,136
or
31.44%
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)
Security
is
an
Interest
Only
Strip.
(g)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions. These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(h)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(
i
)
Non-income
producing
security
Portfolio
Summary (
unaudited)
Sector
Percent
Financial
24.85%
Asset
Backed
Securities
21.19%
Government
13.78%
Mortgage
Securities
8.32%
Consumer,
Non-cyclical
5.84%
Utilities
5.40%
Energy
3.86%
Money
Market
Funds
3.63%
Industrial
3.62%
Consumer,
Cyclical
2.42%
Communications
2.39%
Technology
2.28%
Basic
Materials
1.23%
Other
Assets
and
Liabilities
1.19%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
Short-Term
Income
Account
December
31,
2019
See
accompanying
notes.
106
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
4,856
$
56,074
$
56,486
$
4,444
$
4,856
$
56,074
$
56,486
$
4,444
Income
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
59
$
—
$
—
$
—
$
59
$
—
$
—
$
—
Amounts
in
thousands.
Schedule
of
Investments
SmallCap
Account
December
31,
2019
See
accompanying
notes.
107
INVESTMENT
COMPANIES
-
6.43%
Shares
Held
Value
(000's)
Money
Market
Funds
-
6.43%
BlackRock
Liquidity
FedFund
1.53
%
(a),(b)
2,276,045
$
2,276
Principal
Government
Money
Market
Fund
1.41%
(a),(b),(c)
10,017,833
10,018
$
12,294
TOTAL
INVESTMENT
COMPANIES
$
12,294
COMMON
STOCKS
-
98.43%
Shares
Held
Value
(000's)
Aerospace
&
Defense
-
1.38%
Aerojet
Rocketdyne
Holdings
Inc
(
d)
57,900
2,644
Agriculture
-
1.62%
Darling
Ingredients
Inc
(
d)
110,600
3,106
Automobile
Parts
&
Equipment
-
0.84%
Modine
Manufacturing
Co
(
d)
47,700
367
Visteon
Corp
(
d)
14,200
1,230
$
1,597
Banks
-
8.22%
BancFirst
Corp
10,300
643
Cathay
General
Bancorp
66,500
2,530
First
Interstate
BancSystem
Inc
36,700
1,539
First
Merchants
Corp
31,900
1,327
First
Midwest
Bancorp
Inc/IL
43,025
992
Flagstar
Bancorp
Inc
35,000
1,339
IBERIABANK
Corp
36,900
2,761
Independent
Bank
Corp/MI
21,900
496
Lakeland
Bancorp
Inc
23,150
402
United
Community
Banks
Inc/GA
74,620
2,304
WesBanco
Inc
36,900
1,395
$
15,728
Biotechnology
-
3.87%
Acceleron
Pharma
Inc
(
d)
18,600
986
Allogene
Therapeutics
Inc
(
d),(e)
21,700
564
Bluebird
Bio
Inc
(
d)
6,100
535
Denali
Therapeutics
Inc
(
d)
37,000
644
DNIB
Unwind
Inc
-
Warrants
(
d),(f),(g)
1,938
—
FibroGen
Inc
(
d)
20,700
888
Insmed
Inc
(
d)
34,700
829
Iovance
Biotherapeutics
Inc
(
d)
10,200
282
MacroGenics
Inc
(
d)
36,500
397
Magenta
Therapeutics
Inc
(
d)
47,400
719
Precision
BioSciences
Inc
(
d)
46,200
642
Seattle
Genetics
Inc
(
d)
8,000
914
$
7,400
Building
Materials
-
0.80%
Builders
FirstSource
Inc
(
d)
60,100
1,527
Chemicals
-
0.81%
Cabot
Corp
32,460
1,543
Commercial
Services
-
8.66%
AMN
Healthcare
Services
Inc
(
d)
43,700
2,723
BrightView
Holdings
Inc
(
d)
75,000
1,265
Brink's
Co/The
25,500
2,312
FTI
Consulting
Inc
(
d)
24,800
2,745
HMS
Holdings
Corp
(
d)
80,000
2,368
ICF
International
Inc
17,700
1,622
K12
Inc
(
d)
58,100
1,182
Korn
Ferry
24,300
1,030
Medifast
Inc
(
e)
7,400
811
Nesco
Holdings
Inc
(
d),(e)
120,800
497
$
16,555
Computers
-
5.05%
CACI
International
Inc
(
d)
9,800
2,450
ExlService
Holdings
Inc
(
d)
23,500
1,632
Parsons
Corp
(
d)
50,000
2,064
Perspecta
Inc
83,900
2,218
Ping
Identity
Holding
Corp
(
d),(e)
53,400
1,298
$
9,662
Consumer
Products
-
0.68%
Central
Garden
&
Pet
Co
-
A
Shares
(
d)
44,520
1,307
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Diversified
Financial
Services
-
3.41%
Hamilton
Lane
Inc
24,046
$
1,433
LPL
Financial
Holdings
Inc
11,900
1,098
Piper
Jaffray
Cos
18,550
1,483
Stifel
Financial
Corp
41,295
2,504
$
6,518
Electric
-
2.48%
PNM
Resources
Inc
46,080
2,337
Portland
General
Electric
Co
43,300
2,415
$
4,752
Electrical
Components
&
Equipment
-
1.25%
EnerSys
26,600
1,991
nLight
Inc
(
d)
19,890
403
$
2,394
Electronics
-
3.25%
Advanced
Energy
Industries
Inc
(
d)
29,600
2,107
SYNNEX
Corp
18,500
2,383
Vishay
Intertechnology
Inc
80,700
1,718
$
6,208
Engineering
&
Construction
-
2.32%
Great
Lakes
Dredge
&
Dock
Corp
(
d)
103,900
1,177
MasTec
Inc
(
d)
35,800
2,297
Tutor
Perini
Corp
(
d)
75,000
965
$
4,439
Entertainment
-
2.87%
Eldorado
Resorts
Inc
(
d),(e)
48,000
2,862
Golden
Entertainment
Inc
(
d)
47,600
915
Vail
Resorts
Inc
7,100
1,703
$
5,480
Environmental
Control
-
0.92%
Tetra
Tech
Inc
20,400
1,758
Food
-
0.95%
Performance
Food
Group
Co
(
d)
35,200
1,812
Forest
Products
&
Paper
-
0.21%
PH
Glatfelter
Co
22,400
410
Gas
-
1.23%
Southwest
Gas
Holdings
Inc
31,050
2,359
Healthcare
-
Products
-
1.60%
Adaptive
Biotechnologies
Corp
(
d)
9,000
269
Nevro
Corp
(
d)
13,600
1,599
RA
Medical
Systems
Inc
(
d),(e)
62,600
71
STAAR
Surgical
Co
(
d)
31,900
1,122
$
3,061
Healthcare
-
Services
-
5.97%
Addus
HomeCare
Corp
(
d)
28,100
2,732
Encompass
Health
Corp
33,600
2,327
Natera
Inc
(
d)
49,077
1,653
Syneos
Health
Inc
(
d)
48,000
2,855
Teladoc
Health
Inc
(
d)
22,200
1,859
$
11,426
Home
Builders
-
1.16%
William
Lyon
Homes
(
d)
110,960
2,217
Insurance
-
4.56%
First
American
Financial
Corp
17,500
1,021
Hanover
Insurance
Group
Inc/The
17,200
2,351
Kemper
Corp
26,510
2,054
MGIC
Investment
Corp
142,900
2,025
National
General
Holdings
Corp
57,400
1,268
$
8,719
Internet
-
0.82%
Eventbrite
Inc
(
d)
57,400
1,158
Revolve
Group
Inc
(
d),(e)
22,198
407
$
1,565
Iron
&
Steel
-
0.64%
Cleveland-Cliffs
Inc
(
e)
145,800
1,225
Schedule
of
Investments
SmallCap
Account
December
31,
2019
See
accompanying
notes.
108
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Leisure
Products
&
Services
-
2.34%
Lindblad
Expeditions
Holdings
Inc
(
d)
36,800
$
602
OneSpaWorld
Holdings
Ltd
(
e)
90,000
1,516
Planet
Fitness
Inc
(
d)
31,700
2,367
$
4,485
Lodging
-
0.95%
Extended
Stay
America
Inc
122,300
1,817
Machinery
-
Diversified
-
0.59%
Columbus
McKinnon
Corp/NY
28,000
1,121
Media
-
0.68%
World
Wrestling
Entertainment
Inc
(
e)
20,000
1,297
Metal
Fabrication
&
Hardware
-
1.52%
Advanced
Drainage
Systems
Inc
23,758
923
Rexnord
Corp
(
d)
61,000
1,990
$
2,913
Mining
-
0.22%
Alcoa
Corp
(
d)
19,400
417
Miscellaneous
Manufacturers
-
1.52%
Hillenbrand
Inc
67,400
2,245
Trinseo
SA
17,800
662
$
2,907
Oil
&
Gas
-
1.92%
Callon
Petroleum
Co
(
d)
139,300
673
Delek
US
Holdings
Inc
23,500
788
PDC
Energy
Inc
(
d)
23,200
607
Ring
Energy
Inc
(
d)
146,700
387
Talos
Energy
Inc
(
d)
29,700
895
Whiting
Petroleum
Corp
(
d)
42,600
313
$
3,663
Oil
&
Gas
Services
-
0.75%
Matrix
Service
Co
(
d)
20,900
478
Select
Energy
Services
Inc
(
d)
103,700
963
$
1,441
Packaging
&
Containers
-
0.89%
Graphic
Packaging
Holding
Co
102,400
1,705
Pharmaceuticals
-
2.28%
Bellicum
Pharmaceuticals
Inc
(
d),(e)
97,299
125
DexCom
Inc
(
d)
2,700
591
Horizon
Therapeutics
Plc
(
d)
71,800
2,599
Revance
Therapeutics
Inc
(
d)
64,500
1,047
$
4,362
REITs
-
8.14%
Agree
Realty
Corp
38,700
2,716
Brandywine
Realty
Trust
141,000
2,221
Cousins
Properties
Inc
60,101
2,476
First
Industrial
Realty
Trust
Inc
69,830
2,899
Ladder
Capital
Corp
89,600
1,616
Pebblebrook
Hotel
Trust
98,320
2,636
Two
Harbors
Investment
Corp
68,560
1,002
$
15,566
Retail
-
3.72%
BJ's
Wholesale
Club
Holdings
Inc
(
d)
88,600
2,015
Caleres
Inc
73,240
1,739
Carvana
Co
(
d)
15,200
1,399
Ruth's
Hospitality
Group
Inc
42,510
925
World
Fuel
Services
Corp
23,900
1,038
$
7,116
Semiconductors
-
1.89%
Entegris
Inc
53,100
2,660
SiTime
Corp
(
d)
37,300
951
$
3,611
Software
-
4.82%
Aspen
Technology
Inc
(
d)
17,500
2,116
Bill.Com
Holdings
Inc
(
d)
4,195
160
Ceridian
HCM
Holding
Inc
(
d)
12,781
867
Cloudflare
Inc
(
d)
34,100
582
Dynatrace
Inc
(
d)
20,900
529
Manhattan
Associates
Inc
(
d)
27,500
2,193
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Software
(continued)
SolarWinds
Corp
(
d)
105,288
$
1,953
Sprout
Social
Inc
(
d),(e)
51,100
820
$
9,220
Telecommunications
-
0.63%
Plantronics
Inc
31,100
850
Switch
Inc
24,200
359
$
1,209
TOTAL
COMMON
STOCKS
$
188,262
Total
Investments
$
200,556
Other
Assets
and
Liabilities
- (
4.86)%
(9,293)
TOTAL
NET
ASSETS
-
100.00%
$
191,263
(a)
Current
yield
shown
is
as
of
period
end.
(b)
Security
or
a
portion
of
the
security
was
received
as
collateral
for
securities
lending.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$9,126
or
4.77%
of
net
assets.
(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
voting
shares
of
the
security).
Please
see
affiliated
sub-schedule
for
transactional
information.
(d)
Non-income
producing
security
(e)
Security
or
a
portion
of
the
security
was
on
loan
at
the
end
of
the
period.
(f)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs.
(g)
Fair
value
of
these
investments
is
determined
in
good
faith
by
the
Manager
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
Certain
inputs
used
in
the
valuation
may
be
unobservable;
however,
each
security
is
evaluated
individually
for
purposes
of
ASC
820
which
results
in
not
all
securities
being
identified
as
Level
3
of
the
fair
value
hierarchy.
At
the
end
of
the
period,
the
fair
value
of
these
securities
totaled
$0
or
0.00%
of
net
assets.
Portfolio
Summary (
unaudited)
Sector
Percent
Consumer,
Non-cyclical
25.63%
Financial
24.33%
Industrial
14.44%
Consumer,
Cyclical
11.88%
Technology
11.76%
Money
Market
Funds
6.43%
Utilities
3.71%
Energy
2.67%
Communications
2.13%
Basic
Materials
1.88%
Other
Assets
and
Liabilities
(
4.86)%
TOTAL
NET
ASSETS
100.00%
Schedule
of
Investments
SmallCap
Account
December
31,
2019
See
accompanying
notes.
109
Affiliated
Securities
December
31,
2018
Purchases
Sales
December
31,
2019
Value
Cost
Proceeds
Value
Principal
Government
Money
Market
Fund
1.41%
$
1,443
$
90,883
$
82,308
$
10,018
$
1,443
$
90,883
$
82,308
$
10,018
Income
(a
)
Realized
Gain/Loss
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/Loss
Principal
Government
Money
Market
Fund
1.41%
$
82
$
—
$
—
$
—
$
82
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Glossary
to
the
Schedule
of
Investments
December
31,
2019
See
accompanying
notes.
110
Currency
Abbreviations
USD/$
United
States
Dollar
See
accompanying
notes.
112
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)
(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
CORE
PLUS
BOND
ACCOUNT
Class
1
shares
2019
$
10
.81
$
0
.34
$
0
.72
$
1
.06
(
$
0
.37
)
$
–
(
$
0
.37
)
2018
11
.35
0
.36
(
0
.52
)
(
0
.16
)
(
0
.38
)
–
(
0
.38
)
2017
11
.15
0
.35
0
.18
0
.53
(
0
.33
)
–
(
0
.33
)
2016
11
.05
0
.32
0
.14
0
.46
(
0
.36
)
–
(
0
.36
)
2015
11
.46
0
.32
(
0
.37
)
(
0
.05
)
(
0
.36
)
–
(
0
.36
)
DIVERSIFIED
INTERNATIONAL
ACCOUNT
Class
1
shares
2019
13
.72
0
.28
2
.75
3
.03
(
0
.26
)
(
0
.78
)
(
1
.04
)
2018
17
.01
0
.31
(
3
.25
)
(
2
.94
)
(
0
.35
)
–
(
0
.35
)
2017
13
.42
0
.21
3
.67
3
.88
(
0
.29
)
–
(
0
.29
)
2016
13
.68
0
.24
(
0
.18
)
0
.06
(
0
.32
)
–
(
0
.32
)
2015
14
.08
0
.26
(
0
.29
)
(
0
.03
)
(
0
.37
)
–
(
0
.37
)
See
accompanying
notes.
113
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Net
Asset
Value,
End
of
Period
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
$
11
.50
9
.81
%
$
252,874
0
.47
%
2
.99
%
152
.4
%
10
.81
(
1
.41
)
280,760
0
.47
3
.27
127
.5
11
.35
4
.81
293,662
0
.46
3
.08
123
.5
11
.15
4
.09
292,436
0
.46
2
.79
155
.1
11
.05
(
0
.48
)
290,032
0
.46
2
.80
177
.2
15
.71
22
.69
266,768
0
.93
1
.86
43
.7
13
.72
(
17
.54
)
233,612
0
.91
1
.91
59
.3
17
.01
29
.06
292,975
0
.91
1
.37
42
.8
13
.42
0
.36
243,997
0
.91
1
.77
56
.8
13
.68
(
0
.35
)
273,300
0
.88
1
.80
48
.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.
See
accompanying
notes.
114
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
EQUITY
INCOME
ACCOUNT
Class
1
shares
2019
$
22
.86
$
0
.56
$
6
.00
$
6
.56
(
$
0
.51
)
(
$
0
.72
)
(
$
1
.23
)
$
28
.19
2018
26
.08
0
.64
(
1
.72
)
(
1
.08
)
(
0
.52
)
(
1
.62
)
(
2
.14
)
22
.86
2017
23
.20
0
.56
4
.14
4
.70
(
0
.58
)
(
1
.24
)
(
1
.82
)
26
.08
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
Class
2
shares
2019
22
.66
0
.49
5
.95
6
.44
(
0
.45
)
(
0
.72
)
(
1
.17
)
27
.93
2018
25
.87
0
.57
(
1
.70
)
(
1
.13
)
(
0
.46
)
(
1
.62
)
(
2
.08
)
22
.66
2017
23
.03
0
.49
4
.11
4
.60
(
0
.52
)
(
1
.24
)
(
1
.76
)
25
.87
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
GOVERNMENT
&
HIGH
QUALITY
BOND
ACCOUNT
Class
1
shares
2019
9
.47
0
.22
0
.39
0
.61
(
0
.27
)
–
(
0
.27
)
9
.81
2018
9
.76
0
.23
(
0
.15
)
0
.08
(
0
.37
)
–
(
0
.37
)
9
.47
2017
9
.98
0
.31
(
0
.12
)
0
.19
(
0
.41
)
–
(
0
.41
)
9
.76
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
See
accompanying
notes.
115
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
29
.09
%
$
741,311
0
.47
%
2
.16
%
17
.9
%
(
5
.01
)
636,177
0
.49
2
.47
13
.2
21
.08
572,629
0
.50
2
.26
15
.9
15
.72
525,829
0
.50
2
.54
17
.1
(
3
.93
)
513,126
0
.49
2
.54
10
.7
28
.78
31,874
0
.72
1
.91
17
.9
(
5
.24
)
25,207
0
.74
2
.23
13
.2
20
.77
27,469
0
.75
2
.00
15
.9
15
.43
24,197
0
.75
2
.29
17
.1
(
4
.15
)
23,215
0
.74
2
.29
10
.7
6
.45
241,332
0
.51
2
.26
22
.5
0
.91
219,612
0
.51
2
.43
17
.4
1
.88
241,839
0
.51
3
.09
24
.3
1
.80
247,620
0
.51
3
.25
25
.8
0
.79
286,659
0
.51
2
.61
21
.9
(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.
116
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
LARGECAP
GROWTH
ACCOUNT
I
Class
1
shares
2019
$
30
.10
$
0
.01
$
10
.27
$
10
.28
(
$
0
.02
)
(
$
2
.72
)
(
$
2
.74
)
$
37
.64
2018
31
.18
0
.03
1
.41
1
.44
(
0
.01
)
(
2
.51
)
(
2
.52
)
30
.10
2017
24
.55
0
.01
8
.13
8
.14
(
0
.01
)
(
1
.50
)
(
1
.51
)
31
.18
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
MIDCAP
ACCOUNT
Class
1
shares
2019
48
.53
0
.43
19
.93
20
.36
(
0
.17
)
(
8
.79
)
(
8
.96
)
59
.93
2018
59
.42
0
.17
(
2
.93
)
(
2
.76
)
(
0
.17
)
(
7
.96
)
(
8
.13
)
48
.53
2017
50
.96
0
.19
12
.48
12
.67
(
0
.32
)
(
3
.89
)
(
4
.21
)
59
.42
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
Class
2
shares
2019
48
.19
0
.28
19
.77
20
.05
(
0
.03
)
(
8
.79
)
(
8
.82
)
59
.42
2018
59
.05
0
.02
(
2
.89
)
(
2
.87
)
(
0
.03
)
(
7
.96
)
(
7
.99
)
48
.19
2017
50
.69
0
.05
12
.39
12
.44
(
0
.19
)
(
3
.89
)
(
4
.08
)
59
.05
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
See
accompanying
notes.
117
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
34
.92
%
$
502,653
0
.71
%
(c)
0
.03
%
30
.4
%
3
.60
296,139
0
.74
(c)
0
.08
36
.9
33
.71
302,147
0
.75
(c)
0
.03
36
.2
1
.26
244,058
0
.76
(c)
0
.04
36
.8
7
.77
252,386
0
.76
(c)
0
.07
38
.6
43
.10
(d)
587,854
0
.55
0
.72
10
.5
(
6
.55
)
474,365
0
.54
0
.29
24
.6
25
.51
575,104
0
.54
0
.34
13
.4
10
.37
576,634
0
.54
0
.62
13
.6
1
.64
617,437
0
.53
0
.37
26
.3
42
.72
(d)
20,808
0
.80
0
.48
10
.5
(
6
.79
)
(d)
15,710
0
.79
0
.04
24
.6
25
.19
(d)
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
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
(b)
Total
return
does
not
reflect
charges
attributable
to separate
accounts.
Inclusion
of
these
charges
would
reduce
the
amounts
shown.
(c)
Reflects
Manager's
contractual
expense
limit.
(d)
Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which
a
shareholder
would
have
paid
or
received
from
a
subscription
or
redemption.
See
accompanying
notes.
118
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
PRINCIPAL
CAPITAL
APPRECIATION
ACCOUNT
Class
1
shares
2019
$
25
.86
$
0
.38
$
7
.77
$
8
.15
(
$
0
.50
)
(
$
2
.79
)
(
$
3
.29
)
$
30
.72
2018
28
.54
0
.44
(
1
.19
)
(
0
.75
)
(
0
.34
)
(
1
.59
)
(
1
.93
)
25
.86
2017
23
.94
0
.28
4
.66
4
.94
(
0
.34
)
–
(
0
.34
)
28
.54
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
Class
2
shares
2019
25
.58
0
.30
7
.67
7
.97
(
0
.44
)
(
2
.79
)
(
3
.23
)
30
.32
2018
28
.25
0
.37
(
1
.17
)
(
0
.80
)
(
0
.28
)
(
1
.59
)
(
1
.87
)
25
.58
2017
23
.71
0
.22
4
.60
4
.82
(
0
.28
)
–
(
0
.28
)
28
.25
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
REAL
ESTATE
SECURITIES
ACCOUNT
Class
1
shares
2019
17
.86
0
.34
5
.18
5
.52
(
0
.40
)
(
1
.48
)
(
1
.88
)
21
.50
2018
20
.62
0
.37
(
1
.09
)
(
0
.72
)
(
0
.37
)
(
1
.67
)
(
2
.04
)
17
.86
2017
21
.30
0
.25
1
.62
1
.87
(
0
.39
)
(
2
.16
)
(
2
.55
)
20
.62
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
Class
2
shares
2019
17
.92
0
.30
5
.18
5
.48
(
0
.36
)
(
1
.48
)
(
1
.84
)
21
.56
2018
20
.70
0
.34
(
1
.12
)
(
0
.78
)
(
0
.33
)
(
1
.67
)
(
2
.00
)
17
.92
2017
21
.36
0
.19
1
.64
1
.83
(
0
.33
)
(
2
.16
)
(
2
.49
)
20
.70
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
See
accompanying
notes.
119
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
32
.49
%
$
143,227
0
.64
%
1
.27
%
29
.5
%
(
3
.41
)
128,547
0
.63
1
.52
44
.9
20
.75
154,472
0
.63
1
.07
28
.5
9
.11
147,193
0
.63
1
.31
33
.7
2
.18
154,732
0
.64
1
.33
22
.1
(c)
32
.10
13,536
0
.89
1
.03
29
.5
(
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)
31
.26
155,569
0
.88
(e)
1
.62
19
.3
(
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
30
.94
6,361
1
.13
(e)
1
.43
19
.3
(
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
(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)
Reflects
Manager's
contractual
expense
limit.
See
accompanying
notes.
120
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
BALANCED
PORTFOLIO
Class
1
shares
2019
$
13
.90
$
0
.31
$
2
.43
$
2
.74
(
$
0
.40
)
(
$
0
.57
)
(
$
0
.97
)
$
15
.67
2018
15
.89
0
.36
(
1
.07
)
(
0
.71
)
(
0
.50
)
(
0
.78
)
(
1
.28
)
13
.90
2017
14
.44
0
.45
1
.71
2
.16
(
0
.34
)
(
0
.37
)
(
0
.71
)
15
.89
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
Class
2
shares
2019
13
.74
0
.28
2
.39
2
.67
(
0
.36
)
(
0
.57
)
(
0
.93
)
15
.48
2018
15
.72
0
.32
(
1
.06
)
(
0
.74
)
(
0
.46
)
(
0
.78
)
(
1
.24
)
13
.74
2017
14
.30
0
.42
1
.67
2
.09
(
0
.30
)
(
0
.37
)
(
0
.67
)
15
.72
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
SAM
CONSERVATIVE
BALANCED
PORTFOLIO
Class
1
shares
2019
11
.05
0
.28
1
.45
1
.73
(
0
.35
)
(
0
.24
)
(
0
.59
)
12
.19
2018
12
.33
0
.34
(
0
.73
)
(
0
.39
)
(
0
.42
)
(
0
.47
)
(
0
.89
)
11
.05
2017
11
.50
0
.38
0
.92
1
.30
(
0
.34
)
(
0
.13
)
(
0
.47
)
12
.33
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
Class
2
shares
2019
10
.91
0
.25
1
.43
1
.68
(
0
.32
)
(
0
.24
)
(
0
.56
)
12
.03
2018
12
.19
0
.31
(
0
.73
)
(
0
.42
)
(
0
.39
)
(
0
.47
)
(
0
.86
)
10
.91
2017
11
.38
0
.36
0
.89
1
.25
(
0
.31
)
(
0
.13
)
(
0
.44
)
12
.19
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
See
accompanying
notes.
121
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
20
.01
%
$
574,960
0
.24
%
(c)
,(d)
2
.06
%
23
.0
%
(
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
19
.74
123,870
0
.49
(c)
,(d)
1
.89
23
.0
(
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
15
.88
164,095
0
.24
(c)
,(d)
2
.32
30
.8
(
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
15
.66
25,380
0
.49
(c)
,(d)
2
.15
30
.8
(
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
(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.
122
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
CONSERVATIVE
GROWTH
PORTFOLIO
Class
1
shares
2019
$
17
.16
$
0
.36
$
3
.68
$
4
.04
(
$
0
.36
)
(
$
0
.90
)
(
$
1
.26
)
$
19
.94
2018
19
.86
0
.35
(
1
.51
)
(
1
.16
)
(
0
.56
)
(
0
.98
)
(
1
.54
)
17
.16
2017
17
.22
0
.54
2
.82
3
.36
(
0
.30
)
(
0
.42
)
(
0
.72
)
19
.86
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
Class
2
shares
2019
16
.92
0
.32
3
.61
3
.93
(
0
.32
)
(
0
.90
)
(
1
.22
)
19
.63
2018
19
.60
0
.31
(
1
.50
)
(
1
.19
)
(
0
.51
)
(
0
.98
)
(
1
.49
)
16
.92
2017
17
.01
0
.49
2
.78
3
.27
(
0
.26
)
(
0
.42
)
(
0
.68
)
19
.60
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
SAM
FLEXIBLE
INCOME
PORTFOLIO
Class
1
shares
2019
11
.86
0
.33
1
.22
1
.55
(
0
.46
)
(
0
.37
)
(
0
.83
)
12
.58
2018
12
.95
0
.40
(
0
.63
)
(
0
.23
)
(
0
.53
)
(
0
.33
)
(
0
.86
)
11
.86
2017
12
.45
0
.47
0
.56
1
.03
(
0
.44
)
(
0
.09
)
(
0
.53
)
12
.95
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
Class
2
shares
2019
11
.74
0
.31
1
.19
1
.50
(
0
.43
)
(
0
.37
)
(
0
.80
)
12
.44
2018
12
.83
0
.38
(
0
.63
)
(
0
.25
)
(
0
.51
)
(
0
.33
)
(
0
.84
)
11
.74
2017
12
.34
0
.45
0
.54
0
.99
(
0
.41
)
(
0
.09
)
(
0
.50
)
12
.83
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
See
accompanying
notes.
123
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
24
.06
%
$
213,346
0
.24
%
(c)
,(d)
1
.89
%
16
.2
%
(
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
23
.68
143,501
0
.49
(c)
,(d)
1
.68
16
.2
(
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
13
.25
157,922
0
.24
(d)
2
.65
37
.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
12
.97
30,663
0
.49
(d)
2
.46
37
.4
(
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
(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.
124
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SAM
STRATEGIC
GROWTH
PORTFOLIO
Class
1
shares
2019
$
18
.36
$
0
.39
$
4
.54
$
4
.93
(
$
0
.33
)
(
$
1
.11
)
(
$
1
.44
)
$
21
.85
2018
21
.72
0
.33
(
2
.01
)
(
1
.68
)
(
0
.52
)
(
1
.16
)
(
1
.68
)
18
.36
2017
18
.54
0
.51
3
.54
4
.05
(
0
.30
)
(
0
.57
)
(
0
.87
)
21
.72
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
Class
2
shares
2019
18
.11
0
.34
4
.47
4
.81
(
0
.28
)
(
1
.11
)
(
1
.39
)
21
.53
2018
21
.46
0
.28
(
2
.00
)
(
1
.72
)
(
0
.47
)
(
1
.16
)
(
1
.63
)
18
.11
2017
18
.33
0
.47
3
.48
3
.95
(
0
.25
)
(
0
.57
)
(
0
.82
)
21
.46
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
SHORT-TERM
INCOME
ACCOUNT
Class
1
shares
2019
2
.52
0
.06
0
.06
0
.12
(
0
.07
)
–
(
0
.07
)
2
.57
2018
2
.55
0
.06
(
0
.03
)
0
.03
(
0
.06
)
–
(
0
.06
)
2
.52
2017
2
.54
0
.05
0
.01
0
.06
(
0
.05
)
–
(
0
.05
)
2
.55
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
See
accompanying
notes.
125
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
27
.44
%
$
169,489
0
.24
%
(c)
,(d)
1
.89
%
20
.3
%
(
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
27
.13
145,924
0
.49
(c)
,(d)
1
.67
20
.3
(
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
4
.70
130,852
0
.51
(c)
2
.31
54
.2
1
.02
149,075
0
.50
(c)
2
.19
49
.9
2
.39
158,446
0
.50
(c)
2
.01
67
.3
2
.14
170,538
0
.50
(c)
1
.91
48
.6
0
.71
160,833
0
.49
(c)
1
.63
57
.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)
Does
not
include
expenses
of
the
investment
companies
in
which
the
Portfolio
invests.
See
accompanying
notes.
126
Financial
Highlights
Principal
Variable
Contracts
Funds,
Inc.
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
December
31
(except
as
noted):
Net
Asset
Value,
Beginning
of
Period
Net
Investment
Income
(Loss)(a)
Net
Realized
and
Unrealized
Gain
(Loss)
on
Investments
Total
From
Investment
Operations
Dividends
from
Net
Investment
Income
Distributions
from
Realized
Gains
Total
Dividends
and
Distributions
Net
Asset
Value,
End
of
Period
SMALLCAP
ACCOUNT
Class
1
shares
2019
$
14
.30
$
0
.08
$
3
.67
$
3
.75
(
$
0
.06
)
(
$
2
.66
)
(
$
2
.72
)
$
15
.33
2018
17
.10
0
.03
(
1
.62
)
(
1
.59
)
(
0
.06
)
(
1
.15
)
(
1
.21
)
14
.30
2017
15
.21
0
.06
1
.89
1
.95
(
0
.06
)
–
(
0
.06
)
17
.10
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
Class
2
shares
2019
14
.24
0
.04
3
.66
3
.70
(
0
.02
)
(
2
.66
)
(
2
.68
)
15
.26
2018
17
.04
(
0
.01
)
(
1
.62
)
(
1
.63
)
(
0
.02
)
(
1
.15
)
(
1
.17
)
14
.24
2017
15
.17
0
.02
1
.87
1
.89
(
0
.02
)
–
(
0
.02
)
17
.04
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.
127
Financial
Highlights
(Continued)
Principal
Variable
Contracts
Funds,
Inc.
Total
Return(b)
Net
Assets,
End
of
Period
(in
thousands)
Ratio
of
Expenses
to
Average
Net
Assets
Ratio
of
Net
Investment
Income
to
Average
Net
Assets
Portfolio
Turnover
Rate
27
.40
%
$
184,434
0
.84
%
0
.53
%
34
.7
%
(
10
.89
)
163,243
0
.83
0
.20
45
.0
12
.87
208,669
0
.83
0
.37
64
.1
17
.39
209,911
0
.83
1
.08
57
.1
(
0
.10
)
205,344
0
.83
0
.33
63
.3
27
.12
6,829
1
.09
0
.28
34
.7
(
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.
Report
of
Independent
Registered
Public
Accounting
Firm
128
To
the
Shareholders
of
Core
Plus
Bond
Account,
Diversified
International
Account,
Equity
Income
Account,
Government
&
High
Quality
Bond
Account,
LargeCap
Growth
Account
I,
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
and
the
Board
of
Directors
of
Principal
Variable
Contracts
Funds,
Inc.
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities
of
Core
Plus
Bond
Account,
Diversified
International
Account,
Equity
Income
Account,
Government
&
High
Quality
Bond
Account,
LargeCap
Growth
Account
I,
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
(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,
2019,
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,
2019,
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
their
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,
2019,
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
19,
2020
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
(unaudited)
129
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,
2019
to
December
31,
2019),
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.
Beginning
Account
Value
July
1,
2019
Ending
Account
Value
December
31,
2019
Expenses
Paid
During
Period
July
1,
2019
to
December
31,
2019
(a)
Annualized
Expense
Ratio
Core
Plus
Bond
Account
Class
1
Actual
$
1,000.00
$
1,025.05
$
2.40
0.47
%
Hypothetical
1,000.00
1,022.84
2.40
0.47
Diversified
International
Account
Class
1
Actual
1,000.00
1,068.75
4.85
0.93
Hypothetical
1,000.00
1,020.52
4.74
0.93
Equity
Income
Account
Class
1
Actual
1,000.00
1,102.73
2.49
0.47
Hypothetical
1,000.00
1,022.84
2.40
0.47
Equity
Income
Account
Class
2
Actual
1,000.00
1,101.60
3.81
0.72
Hypothetical
1,000.00
1,021.58
3.67
0.72
Government
&
High
Quality
Bond
Account
Class
1
Actual
1,000.00
1,019.33
2.65
0.52
Hypothetical
1,000.00
1,022.58
2.65
0.52
LargeCap
Growth
Account
I
Class
1
Actual
1,000.00
1,103.22
3.66
0.69
Hypothetical
1,000.00
1,021.73
3.52
0.69
MidCap
Account
Class
1
Actual
1,000.00
1,097.77
2.91
0.55
Hypothetical
1,000.00
1,022.43
2.80
0.55
MidCap
Account
Class
2
Actual
1,000.00
1,096.20
4.23
0.80
Hypothetical
1,000.00
1,021.17
4.08
0.80
Shareholder
Expense
Example
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
(unaudited)
130
Beginning
Account
Value
July
1,
2019
Ending
Account
Value
December
31,
2019
Expenses
Paid
During
Period
July
1,
2019
to
December
31,
2019
(a)
Annualized
Expense
Ratio
Principal
Capital
Appreciation
Account
Class
1
Actual
$
1,000.00
$
1,109.84
$
3.46
0.65
%
Hypothetical
1,000.00
1,021.93
3.31
0.65
Principal
Capital
Appreciation
Account
Class
2
Actual
1,000.00
1,108.27
4.78
0.90
Hypothetical
1,000.00
1,020.67
4.58
0.90
Real
Estate
Securities
Account
Class
1
Actual
1,000.00
1,083.83
4.62
0.88
Hypothetical
1,000.00
1,020.77
4.48
0.88
Real
Estate
Securities
Account
Class
2
Actual
1,000.00
1,082.29
5.93
1.13
Hypothetical
1,000.00
1,019.51
5.75
1.13
SAM
Balanced
Portfolio
Class
1
Actual
1,000.00
1,065.18
1.25
0.24
Hypothetical
1,000.00
1,024.00
1.22
0.24
SAM
Balanced
Portfolio
Class
2
Actual
1,000.00
1,064.17
2.55
0.49
Hypothetical
1,000.00
1,022.74
2.50
0.49
SAM
Conservative
Balanced
Portfolio
Class
1
Actual
1,000.00
1,052.19
1.24
0.24
Hypothetical
1,000.00
1,024.00
1.22
0.24
SAM
Conservative
Balanced
Portfolio
Class
2
Actual
1,000.00
1,050.71
2.53
0.49
Hypothetical
1,000.00
1,022.74
2.50
0.49
SAM
Conservative
Growth
Portfolio
Class
1
Actual
1,000.00
1,077.90
1.26
0.24
Hypothetical
1,000.00
1,024.00
1.22
0.24
SAM
Conservative
Growth
Portfolio
Class
2
Actual
1,000.00
1,076.51
2.56
0.49
Hypothetical
1,000.00
1,022.74
2.50
0.49
SAM
Flexible
Income
Portfolio
Class
1
Actual
1,000.00
1,043.61
1.24
0.24
Hypothetical
1,000.00
1,024.00
1.22
0.24
SAM
Flexible
Income
Portfolio
Class
2
Actual
1,000.00
1,041.85
2.52
0.49
Hypothetical
1,000.00
1,022.74
2.50
0.49
SAM
Strategic
Growth
Portfolio
Class
1
Actual
1,000.00
1,089.33
1.32
0.25
Hypothetical
1,000.00
1,023.95
1.28
0.25
SAM
Strategic
Growth
Portfolio
Class
2
Actual
1,000.00
1,087.58
2.63
0.50
Hypothetical
1,000.00
1,022.68
2.55
0.50
Short-Term
Income
Account
Class
1
Actual
1,000.00
1,014.78
2.64
0.52
Hypothetical
1,000.00
1,022.58
2.65
0.52
SmallCap
Account
Class
1
Actual
1,000.00
1,065.38
4.43
0.85
Hypothetical
1,000.00
1,020.92
4.33
0.85
SmallCap
Account
Class
2
Actual
1,000.00
1,064.20
5.72
1.10
Hypothetical
1,000.00
1,019.66
5.60
1.10
(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).
131
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.,
Principal
Exchange-Traded
Funds,
and
Principal
Diversified
Select
Real
Asset
Fund
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
Name,
Position
Held
with
the
Fund,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Director
During
Past
5
Years
Elizabeth
Ballantine
Director
since
2004
Member,
Nominating
and
Governance
Committee
1948
Principal,
EBA
Associates
127
Durango
Herald,
Inc.;
McClatchy
Newspapers,
Inc.
Leroy
T.
Barnes,
Jr.
Director
since
2012
Member,
Audit
Committee
Member,
Nominating
and
Governance
Committee
1951
Retired.
127
McClatchy
Newspapers,
Inc.;
Frontier
Communications,
Inc.;
formerly,
Herbalife
Ltd.
Craig
Damos
Director
since
2008
Member,
Audit
Committee
Member,
15(c)
Committee
Member,
Executive
Committee
1954
President,
C.P.
Damos
Consulting
LLC
127
None
Mark
A.
Grimmett
Lead
Independent
Director
since
2011
Director
since
2004
Member,
Nominating
and
Governance
Committee
Member,
15(c)
Committee
Member,
Executive
Committee
1960
Formerly,
Executive
Vice
President
and
CFO,
Merle
Norman
Cosmetics,
Inc.
127
None
Fritz
S.
Hirsch
Director
since
2005
Member,
Nominating
and
Governance
Committee
Member,
Operations
Committee
Member,
15(c)
Committee
1951
Formerly,
CEO,
MAM
USA
127
MAM
USA
Tao
Huang
Director
since
2012
Member,
Operations
Committee
Member,
15(c)
Committee
1962
Retired.
127
Armstrong
World
Industries,
Inc.
and
Equity
Lifestyle
Properties,
Inc.
Karen
(“Karrie”)
McMillan
Director
since
2014
Member,
Operations
Committee
1961
Managing
Director,
Patomak
Global
Partners,
LLC.
127
None
Elizabeth
A.
Nickels
Director
since
2015
Member,
Audit
Committee
1962
Retired.
127
SpartanNash;
formerly:
Charlotte
Russe;
Follet
Corporation;
PetSmart;
Spectrum
Health
Systems
Mary
M.
(“Meg”)
VanDeWeghe
Director
since
2018
Member,
Operations
Committee
1959
CEO
and
President,
Forte
Consulting,
Inc.
127
Denbury
Resources
Inc.
and
Helmerich
&
Payne;
Formerly:
Brown
Advisory;
B/E
Aerospace;
WP
Carey;
Nalco
(and
its
successor
Ecolab)
132
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.
Correspondence
intended
for
each
Director
who
is
other
than
an
Interested
Director
may
be
sent
to
655
9th
Street,
Des
Moines,
IA
50392.
Name,
Position
Held
with
the
Fund,
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Director
Other
Directorships
Held
by
Director
During
Past
5
Years
Timothy
M.
Dunbar
Director
since
2019
1957
Director,
PGI
since
2018
President,
Principal
Global
Asset
Management,
PGI,
Principal
Life
Insurance
Company
(“PLIC”),
Principal
Financial
Services,
Inc.
(“PFSI”),
and
Principal
Financial
Group
(“PFG”)
since
2018
Chair/Executive
Vice
President,
RobustWealth,
Inc.
since
2018
Director,
Post
Advisory
Group,
LLC
(“Post”)
since
2018
Executive
Vice
President/Chief
Investment
Officer,
PLIC,
PFSI
and
PFG
(2014-2018)
127
None
Patrick
Halter
Director
since
2017
Member,
Executive
Committee
1959
Chief
Executive
Officer
and
President,
PGI
since
2018
Chief
Operating
Officer,
PGI
(2017-2018)
Chair,
PGI
since
2018
Director,
PGI
(2003-2018)
Director,
Finisterre
Capital
LLP
since
2018
Director,
Origin
Asset
Management
LLP
since
2018
Chair,
Post
since
2017
Chief
Executive
Officer,
Principal
Real
Estate
Investors,
LLC
(“PREI”)
since
2005
Chair,
PREI
since
2004
Chair,
Spectrum
Asset
Management,
Inc.
since
2017
Director,
CCIP,
LLC
since
2017
127
None
133
The
following
table
presents
officers
of
the
Funds.
Name,
Position
Held
with
the
Fund,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Randy
L.
Bergstrom
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1955
Counsel,
PGI
Counsel,
PLIC
Jennifer
A.
Block
Deputy
Chief
Compliance
Officer
Des
Moines,
IA
50392
1973
Vice
President
and
Counsel
(2017-2018)
Assistant
Counsel
(2010-2017)
Assistant
Secretary
(2015-2018)
Counsel,
PGI
(2017-2018)
Counsel,
PLIC
(2009-2018)
Counsel,
PMC
(2009-2013,
2014-2017)
Kamal
Bhatia
President,
Chief
Executive
Officer
1972
President,
PFG,
PFSI,
and
PLIC
since
2019
Senior
Vice
President,
OppenheimerFunds
(2011-
2019)
Principal
Executive
Officer,
OC
Private
Capital
(2017-2019)
Tracy
Bollin
Chief
Financial
Officer
Des
Moines,
IA
50392
1970
Managing
Director,
PGI
since
2016
Chief
Operating
Officer,
PMC
(2015-2017)
Chief
Financial
Officer,
PFA
(2010-2015)
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
Treasurer
Des
Moines,
IA
50392
1965
Vice
President/Treasurer,
PFA
since
2016
Vice
President/Treasurer,
PFD
since
2016
Vice
President/Treasurer,
PGI
since
2016
Vice
President/Treasurer,
PLIC
since
2016
Vice
President/Treasurer,
PMC
(2016-2017)
Vice
President/Treasurer,
PREI
since
2016
Vice
President/Treasurer,
PSI
since
2016
Vice
President/Treasurer,
PSS
since
2016
Laura
B.
Latham
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1986
Counsel,
PGI
since
2018
Prior
thereto,
Attorney
in
Private
Practice
Diane
K.
Nelson
AML
Officer
Des
Moines,
IA
50392
1965
Chief
Compliance
Officer/AML
Officer,
PSS
since
2015
Compliance
Advisor,
PMC
(2013-2015)
Sara
L.
Reece
Vice
President
and
Controller
Des
Moines,
IA
50392
1975
Director
-
Accounting,
PLIC
since
2015
Assistant
Financial
Controller,
PLIC
prior
to
2015
Teri
R.
Root
Chief
Compliance
Officer
Des
Moines,
IA
50392
1979
Interim
Chief
Compliance
Officer
(2018)
Deputy
Chief
Compliance
Officer
(2015-2018)
Deputy
Chief
Compliance
Officer,
PGI
(2017-2018)
Vice
President
and
Chief
Compliance
Officer,
PMC
(2015–2017)
Vice
President,
PSS
since
2015
Britney
L.
Schnathorst
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1981
Counsel,
PLIC
since
2013
Adam
U.
Shaikh
Assistant
Counsel
Des
Moines,
IA
50392
1972
Assistant
General
Counsel,
PGI
since
2018
Counsel,
PGI
(2017-2018)
Counsel,
PLIC
since
2006
Counsel,
PMC
(2007-2013,
2014-2017)
134
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
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
Name,
Position
Held
with
the
Fund,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
John
Sullivan
Assistant
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1970
Counsel,
PGI
since
2019
Prior
thereto,
Attorney
in
Private
Practice
Dan
Westholm
Assistant
Treasurer
Des
Moines,
IA
50392
1966
Assistant
Vice
President/Treasurer,
PGI
since
2017
Assistant
Vice
President/Treasury,
PFA
since
2013
Assistant
Vice
President/Treasury,
PFD
since
2013
Assistant
Vice
President/Treasury,
PLIC
since
2014
Director
–
Treasury,
PLIC
(2007-2014)
Assistant
Vice
President/Treasury,
PMC
(2013-
2017)
Assistant
Vice
President/Treasury,
PSI
since
2013
Assistant
Vice
President/Treasury,
PSS
since
2013
Beth
Wilson
Vice
President
and
Secretary
Des
Moines,
IA
50392
1956
Director
and
Secretary
–
Funds,
PLIC
Clint
Woods
Counsel,
Vice
President,
and
Assistant
Secretary
Des
Moines,
IA
50392
1961
Of
Counsel
(2017-2018)
Vice
President
(2016-2017)
Counsel
(2015-2017)
Vice
President,
PLIC
since
2015
Associate
General
Counsel,
Governance
Officer,
and
Assistant
Corporate
Secretary,
PLIC
since
2013
Jared
Yepsen
Assistant
Tax
Counsel
Des
Moines,
IA
50392
1981
Counsel,
PGI
since
2017
Counsel,
PLIC
since
2015
Senior
Attorney,
Transamerica
Life
Insurance
Company
(2013-2015)
135
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,
2019,
and
the
Statement
of
Additional
Information
dated
May
1,
2019.
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.
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
each
year
as
a
part
of
Form
N-PORT.
The
Fund’s
Form
N-PORT
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.
STATEMENT
REGARDING
LIQUIDITY
RISK
MANAGEMENT
PROGRAM
On
June
1,
2019,
a
Liquidity
Risk
Management
Program
(the
“Program”)
was
adopted
by
the
Fund.
The
Board
is
expected
to
review
the
operation
and
effectiveness
of
the
Program
in
June
2020.
136
BOARD
CONSIDERATION
OF
INVESTMENT
ADVISORY
CONTRACTS
During
the
period
covered
by
this
report,
the
Board
of
Directors
of
Principal
Variable
Contracts
Funds,
Inc.
(“PVC”)
approved
the
renewal
of
the
Management
Agreement
and
various
subadvisory
agreements
for
all
Funds
as
well
as
an
amended
and
restated
Sub-Advisory
Agreement
with
Brown
Advisory,
LLC
related
to
the
LargeCap
Growth
I
Account.
Annual
Review
and
Renewal
of
Management
Agreement
and
Subadvisory
Agreements
At
its
September
10,
2019
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-three
(33)
series
of
PVC
(each
series
is
referred
to
as
a
“Fund”);
and
(2)
the
Subadvisory
Agreements
between
the
Manager
and
each
of
Brown
Advisory,
LLC;
Principal
Real
Estate
Investors,
LLC
(“Principal-REI”);
Spectrum
Asset
Management
Inc.
(“Spectrum”)
and
T.
Rowe
Price
Associates,
Inc.
(collectively,
the
“Subadvisors”).
The
Management
Agreement
and
the
Subadvisory
Agreements
are
collectively
referred
to
as
the
“Advisory
Agreements.”
The
Board
considered
the
factors
and
reached
the
conclusions
described
below
relating
to
the
continuation
of
the
Advisory
Agreements.
In
evaluating
the
Advisory
Agreements,
the
Board,
reviewed
a
broad
range
of
information
including,
among
other
information,
information
regarding
performance,
advisory
fees,
total
expenses,
profitability
from
the
Advisory
Agreements
to
the
Manager
and
information
about
economies
of
scale.
The
Board
reviewed
the
materials
provided
and
concluded
that
it
was
provided
all
information
reasonably
necessary
to
evaluate
the
Advisory
Agreements.
Management
Agreement
With
respect
to
the
Management
Agreement
for
each
Fund,
the
Board
considered,
among
other
factors,
that
the
Manager,
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,
Quality
and
Extent
of
Services
The
Board
considered
the
nature,
quality
and
extent
of
the
services
provided
under
the
Management
Agreements,
including
accounting
and
administrative
services.
The
Board
considered
the
experience
and
skills
of
senior
management
leading
Fund
operations,
the
experience
and
skills
of
the
personnel
performing
the
functions
under
the
Management
Agreements
and
the
resources
made
available
to
such
personnel,
the
ability
of
the
Manager
to
attract
and
retain
high-quality
personnel
and
the
organizational
depth
and
stability
of
the
Manager.
The
Board
concluded
that
appropriate
resources
were
provided
under
the
Management
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,
2019
and
the
blended
investment
return
(50%/50%)
of
the
three-
and
five-year
periods
ended
March
31,
2019,
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,
2019,
respectively,
if
available.
The
Board
also
compared
each
Fund’s
investment
performance
over
the
one-,
three-
and
five-year
periods
ended
March
31,
2019,
as
available,
to
one
or
more
relevant
benchmark
indices.
The
Board
noted
that
137
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)
net
management
fee
rate
(after
any
fee
waivers)
at
average
fiscal-year
asset
levels,
(3)
actual
non-management
fees
at
average
fiscal-
year
asset
levels,
and
(4)
total
net
expense
ratio
(including,
as
applicable,
acquired
fund
fees
and
expenses
and
after
any
expense
caps
or
fee
waivers)
at
average
fiscal-year
asset
levels
for
Class
1
shares
of
the
Funds,
in
each
case
as
available,
to
investment
advisory
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
fee
rates,
breakpoints,
comparison
to
fee
rates
of
peer
group
funds
and
other
funds
and
non-fund
accounts
managed
by
the
Manager,
subadvisory
fee
rates
paid,
services
provided,
investment
performance,
total
net
expense
ratios,
profitability,
the
existence
and
sharing
of
economies
of
scale,
fall-out
benefits
and
expense
caps
and
fee
waivers.
The
Board
considered
that
certain
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
fee
rates.
In
reviewing
the
fees
of
other
accounts
managed
by
the
Manager,
the
Board
considered
information
provided
by
the
Manager
regarding
differences
between
the
services
provided
to
the
Funds
and
the
services
provided
to
such
other
accounts.
For
most
Funds,
net
management
fees
were
within
the
third
quartile
or
better
when
compared
to
their
Expense
Group.
For
some
Funds,
although
net
management
fees
were
higher
than
the
third
quartile,
total
net
expense
ratios
were
within
the
third
quartile
or
better.
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,
which
the
Board
concluded
were
reasonable.
The
Board
reviewed
the
total
net
expense
ratios
of
the
Funds,
including
acquired
fund
fees
and
expenses.
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.
With
regard
to
the
Real
Estate
Securities
Account,
the
Board
noted
that
the
contractual
management
fee
rate,
the
current
net
management
fee
rate
and
the
total
net
expense
ratio
on
the
basis
of
Class
1
shares
were
higher
than
third
quartile
(99th,
99th
and
78th
percentiles,
respectively)
in
the
Expense
Group.
The
Board
accepted
management’s
proposal
to
amend
the
Management
Agreement
for
the
Fund
to
reduce
the
management
fee
rate
payable
at
each
asset
level
and
considered
the
pro
forma
effect
of
the
fee
reduction
on
the
ranking
of
the
Fund’s
net
management
fee
rate
and
total
net
expense
ratio
on
the
basis
of
Class
1
shares
in
the
Expense
Group,
noting
that
the
Fund’s
net
management
fee
rate
and
total
net
expense
ratio
would
move
into
the
67th
percentile
and
the
56th
percentile,
respectively.
Considering
all
relevant
factors,
including
the
Fund’s
performance
in
the
first
quartile
of
its
Performance
Universe
for
the
three-year
and
blended
three-
and
five
year
periods
ended
March
31,
2019
(15th
and
10th
percentiles,
respectively),
the
Board
concluded
that
the
Management
Agreement
should
be
renewed.
With
regard
to
the
LargeCap
S&P
500
Managed
Volatility
Index
Account,
the
Board
noted
that
the
contractual
management
fee
rate,
the
net
management
fee
rate
and
the
total
net
expense
ratio
on
the
basis
of
Class
1
shares
were
higher
than
third
quartile
(each
was
at
the
99th
percentile)
in
the
Expense
Group.
Considering
all
relevant
factors,
including
that
the
other
funds
in
the
Expense
Group
did
not
include
the
additional
feature
of
a
volatility
mitigation
strategy,
that
the
Fund’s
performance
was
in
the
second
quartile
of
its
Performance
Universe
for
the
three-year
and
blended
three-
and
five-year
periods
ended
March
31,
2019
(47th
and
41st
percentiles,
respectively)
and
that
the
Fund’s
performance
was
within
a
reasonable
range
of
its
underlying
index,
the
Board
concluded
that
the
Management
Agreement
should
be
renewed.
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.
138
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.
Profitability
The
Board
reviewed
detailed
information
regarding
revenues
the
Manager,
received
under
the
Management
Agreements
and
the
estimated
direct
and
indirect
costs
incurred
in
providing
to
each
Fund
the
services
described
in
the
applicable
Management
Agreements
for
the
year
ended
December
31,
2018.
The
Board
also
considered
the
returns
on
revenue
generated
in
connection
with
the
payment
of
subadvisory
fees
to
affiliated
Subadvisors
(Principal-REI
and
Spectrum)
and
the
aggregated
return
on
revenue
to
the
Manager
and
its
affiliates
for
the
year
ended
December
31,
2018.
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
cost
saving
passed
along
to
the
Funds
as
a
result
of
certain
expense
caps
and
fee
waivers.
The
Board
considered
whether
the
effective
management
fee
rate
for
each
Fund
under
the
applicable
Management
Agreement
is
reasonable
in
relation
to
the
asset
size
of
such
Fund.
The
Board
also
noted
management’s
explanation
of
efficiencies
in
the
Manager’s
cost
structure.
The
Board
concluded
that
the
fee
schedule
for
each
Fund
reflects
an
appropriate
level
of
sharing
of
any
economies
of
scale.
The
Board
noted
that
the
Principal
LifeTime
Accounts
do
not
directly
pay
management
fees,
although
shareholders
bear
a
portion
of
the
cost
of
the
management
fees
at
the
underlying
fund
level
as
reflected
in
the
acquired
fund
fees
and
expenses.
The
Board
also
noted
that
the
management
fees
for
the
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
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
fee
rates,
noting
that
the
Manager
compensates
each
Subadvisor
from
its
own
management
fee,
so
that
shareholders
pay
only
the
management
fee.
For
each
subadvised
Fund,
the
Board
received
certain
information
139
from
Broadridge
comparing
each
such
Fund’s
subadvisory
fee
rate
at
current
asset
levels
and
at
theoretical
asset
levels
to
subadvisory
fee
rates
of
subadvised
funds
in
the
Expense
Group
and,
if
available,
the
Expense
Universe.
With
regard
to
the
LargeCap
Growth
Account
I,
the
Board
accepted
management’s
proposal
to
amend
the
Fund’s
Subadvisory
Agreement
with
Brown
Advisory,
LLC
to
add
a
new
breakpoint
to
the
subadvisory
fee
schedule
and
considered
both
the
amended
subadvisory
fee
schedule
and
the
pro
forma
ranking
of
the
reduced
subadvisory
fee
rate
in
concluding
that
the
Subadvisory
Agreement,
as
amended,
should
be
renewed.
The
Board
considered
whether
there
are
economies
of
scale
with
respect
to
the
subadvisory
services
provided
to
each
subadvised
Fund
and,
if
so,
whether
the
subadvisory
fees
reflect
such
economies
of
scale
through
breakpoints
in
fees
or
whether
the
subadvisory
fee
schedule
is
otherwise
appropriate
at
current
asset
levels.
In
addition,
in
evaluating
the
subadvisory
fees
and
the
factor
of
profitability,
with
respect
to
unaffiliated
Subadvisors,
the
Board
considered
that
the
subadvisory
fee
rate
was
negotiated
at
arm’s
length
between
the
Manager
and
the
Subadvisor.
The
Board
considered
the
profitability
of
the
affiliated
Subadvisors
in
conjunction
with
their
review
of
the
profitability
of
the
Manager.
On
the
basis
of
the
information
provided,
the
Board
concluded
that
the
subadvisory
fees
were
reasonable.
Other
Benefits
to
Subadvisors
The
Board
also
considered
the
character
and
amount
of
other
incidental
benefits
received
by
each
Subadvisor
when
evaluating
the
subadvisory
fees.
The
Board
considered
as
a
part
of
this
analysis
each
Subadvisor’s
brokerage
practices,
soft
dollar
practices
and
use
of
research
payment
accounts.
The
Board
concluded
that,
on
the
basis
of
the
information
provided,
the
subadvisory
fees
were
reasonable.
Overall
Conclusions
Based
upon
all
of
the
information
considered
and
the
conclusions
reached,
the
Board
determined
that
the
terms
of
each
Advisory
Agreement
continue
to
be
fair
and
reasonable
and
that
the
continuation
of
each
Advisory
Agreement,
with
the
actions
proposed
by
the
Manager,
is
in
the
best
interests
of
each
Fund.
Federal
Income
Tax
Information
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
(unaudited)
140
Long-Term
Capital
Gain
Dividends.
Certain
Accounts
distributed
long-term
capital
gain
dividends
during
the
fiscal
year
ended
December
31,
2019
.
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
Unrecaptured
Section
1250
gains,
in
addition
to
long-term
capital
gains,
in
2019
.
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,
2019
,
that
qualifies
for
the
DRD
are
as
follows:
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
reported
on
a
per
share
basis
in
the
year
ended
December
31,
2019,
are
as
follows:
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.
DRD
Core
Plus
Bond
Account
1.74%
Diversified
International
Account
0.00
Equity
Income
Account
71.33
Government
&
High
Quality
Bond
Account
0.00
LargeCap
Growth
Account
I
100.00
MidCap
Account
81.24
Principal
Capital
Appreciation
Account
100.00
Real
Estate
Securities
Account
0.84
SAM
Balanced
Portfolio
23.43
SAM
Conservative
Balanced
Portfolio
15.35
SAM
Conservative
Growth
Portfolio
39.42
SAM
Flexible
Income
Portfolio
11.99
SAM
Strategic
Growth
Portfolio
43.18
Short-Term
Income
Account
0.00
SmallCap
Account
27.01
Foreign
Taxes
Per
Share
Foreign
Source
Income
Diversified
International
Account
$
0.0502
99.41%
SAM
Balanced
Portfolio
0.0065
9.79
SAM
Conservative
Balanced
Portfolio
0.0032
5.64
SAM
Conservative
Growth
Portfolio
0.0116
18.12
SAM
Strategic
Growth
Portfolio
0.0158
25.82
Federal
Income
Tax
Information
Principal
Variable
Contracts
Funds,
Inc.
December
31,
2019
(unaudited)
141
The
following
information
is
being
provided
to
you,
prompted
by
the
acquisitions
of
the
following
Accounts
effective
June
7,
2019:
Long-Term
Capital
Gain
Dividends.
The
Accounts
distributed
long-term
capital
gain
dividends
during
the
tax
year
ended
June
7,
2019.
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,
the
Accounts
may
also
utilize,
and
hereby
designate,
earnings
and
profits
distributed
to
shareholders
on
redemptions
of
shares
as
part
of
the
Dividends
Paid
Deduction.
Dividends
Received
Deduction
(“DRD”).
For
corporate
shareholders,
the
percentage
of
ordinary
income
distributions
(dividend
income
and
short-term
gains,
if
any)
for
the
tax
year
that
qualifies
for
DRD
are
as
follows:
The
latest
Federal
Income
Tax
Information
is
available
on
Principal's
Tax
Center
website.
Website:
https://www.principalfunds.com/individual-investor/customer-support/tax-center
Please
consult
your
tax
advisor
if
you
have
any
questions.
Acquired
Account
Acquiring
Account
Income
Account
Core
Plus
Bond
Account
LargeCap
Growth
Account
LargeCap
Growth
Account
I
Multi-Asset
Income
Account
SAM
Flexible
Income
Portfolio
Per
Share
Long-Term
Capital
Gain
Distributions
(EX_DATE:
6/6/2019)
Income
Account
$
0.2140
LargeCap
Growth
Account
8.7869
Multi-Asset
Income
Account
0.0544
DRD
Income
Account
5.72%
LargeCap
Growth
Account
100.00
Multi-Asset
Income
Account
14.85
principalfunds.com
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.
Principal,
Principal
and
symbol
design,
and
Principal
Financial
Group
are
registered
trademarks
and
services
marks
of
Principal
Financial
Services,
Inc.,
a
Principal
Financial
Group
company.
©
2019
Principal
Financial
Services,
Inc.
|
MM1290B-12
|
12/2019
|
1033307
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, 2018 - $572,733
December 31, 2019 - $586,320
(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, 2018 - $5,500
December 31, 2019 - $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, 2018 - $150,191
December 31, 2019 - $184,133
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 and Principal Diversified Select Real Asset Fund (the “Funds”) (the “Boards of the Funds”) effective for all engagements of the primary independent auditor.
1. The primary independent auditor, its subsidiaries and affiliates shall not provide Prohibited Services to the Funds. For the purposes of this policy, Prohibited Services are:
·
Services that are subject to audit procedure during a financial statement audit;
·
Services where the auditor would act on behalf of management;
·
Services where the auditor is an advocate to the client's position in an adversarial proceeding;
·
Bookkeeping or other services related to the accounting records or financial statements of the Funds, its subsidiaries and affiliates;
·
Financial information systems design and implementation;
·
Appraisal or valuation services, fairness opinions, or contribution-in-kind reports;
·
Actuarial services;
·
Internal audit functions or human resources;
·
Broker or dealer, investment advisor, or investment banking services;
·
Legal services and expert services unrelated to the audit;
·
Tax planning services related to listed, confidential and aggressive transactions;
·
Personal tax planning services to individuals in a financial reporting oversight role with regard to the Funds (other than members of the Boards of the Funds who are not also officers of the Funds), including the immediate family members of such individuals;
·
Any other service that the Public Company Accounting Oversight Board (PCAOB) determines, by regulation, is impermissible.
2. (A) All services the primary independent auditor, its subsidiaries and affiliates provide to the Funds, and (B) Audit services, including audits of annual financial statements, audits of acquired or divested businesses or review of regulatory filings, any independent auditor provides, shall be approved by the Committee in advance in accordance with the following procedure:
Each quarter, Management will present to the Committee for pre-approval, a detailed description of each particular service, excluding tax services, for which pre-approval is sought and a range of fees for such service. The Committee may delegate pre-approval authority to one or more of its members provided such delegated member(s) shall present a report of any services approved to the full Committee at its next regularly scheduled meeting. The Committee Chairperson shall have pre-approval authority for changes to any range of fees applicable to services the Committee previously approved and for new services and the range of fees for such services that arise between regularly scheduled Committee meetings.
Similarly, the primary independent auditor will present to the Committee for pre-approval a written description of the nature and scope of all tax services not expressly prohibited, including the fee arrangements for such services, and the potential effects of such services on the audit firm’s independence.
In considering whether to pre-approve the primary independent auditor’s provision of non-audit services, the Committee will consider whether the services are compatible with the maintenance of such auditor's independence. The Committee will also consider whether the primary independent auditor is best positioned to provide the most effective and efficient service, for reasons such as its familiarity with the Funds' business, people, culture, accounting systems, risk profile and other factors, and whether the service might enhance the Funds' ability to manage or control risk or improve audit quality.
3. The provisions of this policy shall apply to all audit and non-audit services provided directly to the Funds. Additionally, the provisions of this policy shall apply to non-audit services provided to Principal Global Investors, LLC (“PGI”) or an affiliate of PGI that provides ongoing services to the Funds if the engagement relates directly to the operations and financial reporting of the Funds.
4. Not less than annually, the primary independent auditor shall report to the Committee in writing all relationships that may reasonably be thought to bear on independence between the auditor and the Funds or persons in financial reporting oversight roles with respect to any services provided by the auditor, its subsidiaries or affiliates as of the date of the communication, pursuant to Rule 3526 of the PCAOB. The primary independent auditor shall discuss with the Committee the potential effects of such relationships on the independence of the auditor. In addition, the primary independent auditor shall affirm, in writing, that, as of the date of the communication, it is independent within the meaning of the federal securities laws and Rule 3520 of the PCAOB.
5. The Committee shall ensure that the lead (or coordinating) audit partners, as well as the reviewing audit partner, of the Funds' primary independent auditor are rotated at least every five years and subject upon rotation to a five year "time out" period. All other audit partners of the primary independent auditor, excluding partners who simply consult with others on the audit engagement regarding technical issues, shall rotate after seven years and be subject upon rotation to a two year "time out" period.
6.
Neither the Funds nor PGI may hire or promote any former partner, principal, shareholder or professional employee (Former Employee) of the primary independent auditor into a financial reporting oversight role unless the Former Employee (1) has severed his/her economic interest in the independent audit firm, and (2) was not a member of the audit engagement team for the Funds during the one year period preceding the date that the audit procedures began for the fiscal period in which the Funds or PGI proposes to hire or promote the Former Employee. Neither the Funds nor PGI shall, without prior written consent of the primary independent auditor, hire or promote any Former Employee into a role not prohibited above if the Former Employee had provided any services to the Funds or PGI during the 12 months preceding the date of filing of the Funds' most recent annual report with the SEC. Upon termination of the primary independent auditor, the Funds or PGI shall not, without prior written consent of the former primary independent auditor, hire or promote any Former Employee for a period of up to 12 months from termination.
7.
For persons recently promoted or hired into a financial reporting oversight role (other than members of the Boards of the Funds who are not also officers of the Funds), any personal tax planning services pursuant to an engagement that was in progress before the hiring or promotion and provided by the primary independent auditor must be completed on or before 180 days after the hiring or promotion.
8.
The phrase "financial reporting oversight role" means a role in which a person is in a position to exercise influence over the contents of the financial statements or anyone who prepares them, such as a member of the board of directors or similar management or governing body, chief executive officer, president, chief operating officer, chief financial officer, counsel, controller, chief internal auditor, or any equivalent positions.
(Adopted by the Audit Committee of the Boards of the Funds on June 11, 2019).
(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, 2018 - $155,691
December 31, 2019 - $189,633
(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/ Kamal Bhatia |
Kamal Bhatia, President and CEO
Date | 2/11/2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By | /s/ Kamal Bhatia |
Kamal Bhatia, President and CEO
Date | 2/11/2020 |
By | /s/ Tracy W. Bollin |
Tracy W. Bollin, Chief Financial Officer
Date | 2/11/2020 |