Intermediate-Term Bond

04-30-2002

Principal Funds Inc Principal Financial Group 711 High St Des Moines, IA 50392 USA
800-222-5852
http://www.principal.com

Phil Jacoby

04-30-2002

The investment seeks to provide current income. The fund invests primarily in preferred securities of U.S. companies rated BBB or higher by Standard & Poor's Rating Service ("S&P") or Moody's Investor Service, Inc. ("Moody's") or, if unrated, of comparable quality in the opinion of the Sub-Advisor, Spectrum. It normally invests at least 80% of net assets (plus any borrowings for investment purposes) in preferred securities. The fund focuses primarily on the financial services, Real Estate Investment Trust and utility industries. It is nondiversified.

4.54B

$0

2 stars

Zfs Fin Usa Tr Ii 144A FRN
Qbe Cap Fdg Iii 144A FRN
Catlin Ins Co 144A FRN
Nationwide Finl Svcs FRN
Centaur Fdg Pfd 144A
M & T Bk 144A 6.875%
General Elec Cap FRN
Xl Grp Pfd
Us Bancorp Del Pfd
Cap One Cap Iv FRN