Principal Mutual Funds Profile
Class A Shares
This profile summarizes key information included in the Funds' prospectus. The
Funds' prospectus includes additional material information about each Fund,
including a more detailed description of the risks associated with investing in
a Fund that you may want to consider before you invest. You may obtain the
prospectus and other information about a Fund at no cost by calling (800)
247-4123.
The prospectus is also available on our website at: www.principal.com/funds.
A total of sixteen Principal Mutual Funds are available through the retirement
plan adopted by your employer. These Funds are:
DOMESTIC GROWTH-ORIENTED FUNDS
Principal Balanced Fund, Inc.
Principal Blue Chip Fund, Inc.
Principal Capital Value Fund, Inc.
Principal Growth Fund, Inc.
Principal MidCap Fund, Inc.
Principal Real Estate Fund, Inc.
Principal SmallCap Fund, Inc.
Principal Utilities Fund, Inc.
INTERNATIONAL GROWTH-ORIENTED FUNDS
Principal International Emerging Markets Fund, Inc.
Principal International Fund, Inc.
Principal International SmallCap Fund, Inc.
INCOME-ORIENTED FUNDS
Principal Bond Fund, Inc.
Principal Government Securities Income Fund, Inc.
Principal High Yield Fund, Inc.
Principal Limited Term Bond Fund, Inc.
MONEY MARKET FUND
Principal Cash Management Fund, Inc.
If you have any questions about the investment options available to you, contact
your registered representative. You may also obtain information regarding your
investment options from a Princor Retirement Plan Specialist by calling (800)
247-4123 or writing to:
Princor Retirement Plan Operations
The Principal Financial Group
711 High Street
Des Moines, Iowa 50392-0200
September 30, 1999
Table of Contents
Money Market Fund
Cash Management Fund......................................................... 6
Income-Oriented Funds
Limited Term Bond Fund....................................................... 8
Government Securities Income Fund............................................ 10
Bond Fund.................................................................... 12
High Yield Fund.............................................................. 14
Domestic Growth-Oriented Funds
Utilities Fund............................................................... 16
Real Estate Fund............................................................. 18
Balanced Fund................................................................ 20
Blue Chip Fund............................................................... 22
Capital Value Fund........................................................... 24
Growth Fund.................................................................. 26
MidCap Fund.................................................................. 28
SmallCap Fund................................................................ 30
International Growth-Oriented Funds
International Fund........................................................... 32
International SmallCap Fund.................................................. 34
International Emerging Markets Fund.......................................... 36
Information About Your Retirement Plan
Investment Information....................................................... 36
Services..................................................................... 37
Enrollment And Beneficiary Election Form..................................... 38
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Principal Cash Management Fund, Inc. Money Market
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What is the Fund's Investment Objective?
The Cash Management Fund seeks as high a level of income available from
short-term securities as is considered consistent with preservation of principal
and maintenance of liquidity by investing in a portfolio of money market
instruments.
What is the Fund's Investment Strategy?
The Fund invests its assets in a portfolio of money market instruments. The Fund
invests to maximize current income by investing in:
o U.S. Government securities
o Bank obligations
o Commercial paper
o Short-term corporate debt
o Repurchase agreements
o Taxable municipal obligations
What are the Significant Risks?
The yield on the Fund will vary with changes in short term interest rates. An
investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks to
preserve the post-dividend value of an investment at $1.00 per share, it is
possible to lose money by investing in the Fund. As with all mutual funds, loss
of money is a risk of investing in this Fund.
Who Should Invest in this Fund?
The Fund is appropriate for investors who
o seek monthly dividends to produce income without incurring much risk, or
o have short-term needs.
It is not a good investment for retirement plan participants seeking growth.
This Fund should not be relied on to meet short-term financial needs.
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 0.38%
12b-1 Fees None
Other Expenses 0.18%
Total Fund Operating Expenses 0.56%
No sales charge is imposed on the purchase of Fund Class A shares.
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Examples
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The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$57 $179 $313 $701
You would pay the following expenses if you did not redeem your shares:
$57 $179 $313 $70
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Who is the Fund's Investment Manager?
Michael R. Johnson has been responsible for the day-to-day Fund management since
March 1983. Mr. Johnson has been Assistant Director - Securities Trading of
Principal Management since 1994.
How has the Fund Performed?
The table shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. Please remember the Fund's past
performance does not represent how it will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1989 8.42%
1990 7.63%
1991 5.80%
1992 3.38%
1993 2.63%
1994 3.77%
1995 5.44%
1996 4.96%
1997 4.88%
1998 5.15%
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Principal Limited Term Bond Fund, Inc. Income-Oriented
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What is the Fund's Investment Objective?
The Limited Term Bond Fund seeks a high level of current income consistent with
a relatively high level of principal stability by investing in a portfolio of
securities with a dollar weighted average maturity of five years or less.
What is the Fund's Investment Strategy?
The Fund invests primarily in high-grade, short-term debt securities. Under
normal circumstances, the Fund invests at least 80% of its assets in:
o securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities;
o debt securities of U.S. issuers rated in the three highest grades by
Standard & Poor's Corporation (S&P) or Moody's Investors Service, Inc.
(Moody's);
o if unrated, securities are of comparable quality in the opinion of
Invista.
The rest of the Fund's assets are invested in securities in the fourth highest
rating category ("investment grade") or their equivalent. While they are
considered to have adequate capacity to pay interest and repay principal, they
do have speculative characteristics. The Fund may invest in corporate debt
securities and mortgage-backed securities. Under unusual market or economic
conditions, for temporary or defensive purposes the Fund may invest up to 100%
of its assets in cash or cash equivalents.
What are the Significant Risks?
Bond values fluctuate based on changes in interest rates, market conditions, and
announcements of other economic, political, or financial information. Because
the value of the securities in which the Fund invests fluctuate, principal
values and investment returns will fluctuate As with all mutual funds, loss of
money is a risk of investing in this Fund.
Who Should Invest in this Fund?
The Fund may be appropriate for investors who...
o want monthly dividends for income or to reinvest for modest growth,
o are willing to accept some, although not dramatic, volatility in the
value of their investment.
This Fund should not be relied on to meet short-term financial needs.
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Portfolio Composition
as of June 30, 1999
- --------------------------------------
Corporate Bonds: 57.0%
Mortgage-backed Securities: 21.4%
Asset-backed Securities: 20.0%
Commercial Paper: 1.6%
- --------------------------------------
- --------------------------------------
Maturity Profile
as of June 30, 1999
- --------------------------------------
Average Bond Quality: AA3
Average Bond Maturity: 3.89 years
Average Duration: 2.86 years
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What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees* 0.50%
12b-1 Fees 0.15%
Other Expenses 0.48%
-----
Total Fund Operating Expenses 1.13%
*The Manager voluntarily waived certain fees and expenses during the fiscal year
ended October 31, 1998. After waiver, the management fee paid was 0.19% (total
expenses 0.82%).
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Examples
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The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$263 $504 $763 $1,504
You would pay the following expenses if you did not redeem your shares:
$263 $504 $763 $1,504
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The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
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Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
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Less than $50,000 1.50%
$50,000 but less than $100,000 1.25%
$100,000 but less than $250,000 1.00%
$250,000 but less than $500,000 0.75%
$500,000 but less than $1,000,000 0.50%
$1,000,000 or more 0
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The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Martin J. Schafer has been responsible for the day-to-day Fund management since
its inception in February 1996. Mr. Schafer has been a Portfolio Manager for
Invista since 1992 and has been with the Principal Financial Group since 1977.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future.
Annual Total Return
Calendar Years Ended December 31
- --------------------------------
1997 6.63%
1998 6.70%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last Two Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
9/30/98 2.99%
6/30/99 -0.49%
- ----------------------------------------
- ----------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- ----------------------------------------------------------
Past One Past Five
Year Years
-------- ---------
Limited Term Bond Fund 3.53% 5.34%*
Lehman Brothers
Intermediate Government/
Corporate Index 4.19 7.04
Lipper Short-Intermediate
Investment Grade Debt
Fund Average 3.38 6.11
- ----------------------------------------------------------
*Period from February 29, 1996 (date shares first offered
to the public) through June 30, 1999.
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Principal Government Securities Income Fund, Inc. Income-Oriented
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What is the Fund's Investment Objective?
The Government Securities Income Fund seeks a high level of current income,
liquidity, and safety of principal by purchasing obligations issued or
guaranteed by the United States Government or its agencies, with emphasis on
Government National Mortgage Association Certificates ("GNMA Certificates"). The
guarantee by the United States Government extends only to principal and
interest. There are certain risks unique to GNMA Certificates. What is the
Fund's Investment Strategy?
The Fund invests in U.S. Government securities, which include obligations issued
or guaranteed by the U.S. Government, its agencies, or instrumentalities. The
Fund invests in securities supported by:
o full faith and credit of the U.S. Government (GNMA certificates); or
o credit of the instrumentality (e.g. bonds issued by the Federal Home Loan
Bank).
What are the Significant Risks?
Mortgage-backed securities are subject to prepayment (unscheduled principal
payments) risk. Prepayments may result from voluntary prepayment, refinancing,
or foreclosure of the underlying mortgage. When interest rates decline,
significant unscheduled prepayments may result and must then be reinvested at
lower rates. Prepayments may also shorten the effective maturities of these
securities, especially during periods of declining interest rates. During
periods of rising interest rates, a reduction in prepayments may increase the
effective maturities of these securities, subjecting them to the risk of decline
in market value in response to rising interest and potentially increasing the
volatility of the Fund.
At times, mortgage-backed securities may have higher than market interest rates
and are purchased at a premium. Unscheduled prepayments are made at par and
cause the Fund to experience a loss of some or all of the premium. Although some
of the securities the Fund purchases are backed by the U.S. government and its
agencies, shares of the Fund are not guaranteed. As with all mutual funds, loss
of money is a risk of investing in this Fund.
Who Should Invest in this Fund?
The Fund is a suitable investment for investors who want monthly dividends to
provide income or to be reinvested in additional Fund shares to produce growth.
Such investors prefer to have the repayment of principal and interest on most of
the securities in which the Fund invests to be backed by the U.S. Government or
its agencies. This Fund should not be relied on to meet short-term financial
needs.
- --------------------------------------
Portfolio Composition
as of June 30, 1999
- --------------------------------------
GNMA Securities: 99.9%
Commercial Paper: 0.1%
- --------------------------------------
- --------------------------------------
Maturity Profile
as of June 30, 1999
- --------------------------------------
Average Bond Quality: AAA
Average Bond Maturity: 6.99 years
Average Duration: 2.82 years
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 0.45%
12b-1 Fees 0.20%
Other Expenses 0.21%
-----
Total Fund Operating Expenses 0.86%
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Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$559 $736 $929 $1,485
You would pay the following expenses if you did not redeem your shares:
$559 $736 $929 $1,485
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The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Martin J. Schafer has been responsible for the day-to-day Fund management since
its inception in May 1985. Mr. Schafer has been a Portfolio Manager for Invista
since 1992 and has been with the Principal Financial Group since 1977.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1989 15.04%
1990 9.52%
1991 16.83%
1992 6.13%
1993 9.16%
1994 -4.89%
1995 19.19%
1996 3.85%
1997 9.69%
1998 7.19%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last Ten Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
6/30/95 6.38%
3/31/94 -4.38%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five Past Ten
Year Years Years
-------- --------- --------
Government Securities
Income Fund 2.61% 7.85% 7.88%
Lehman Brothers
GNMA Index 4.06 8.11 8.32
Lipper GNMA Fund Average 2.62 7.03 7.45
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Principal Bond Fund, Inc. Income-Oriented
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What is the Fund's Investment Objective?
The Bond Fund seeks to provide as high a level of income as is consistent with
preservation of capital and prudent investment risk.
What is the Fund's Investment Strategy?
The Fund invests in fixed-income securities. Generally, the Fund invests on a
long-term basis but may make short-term investments.
Under normal circumstances, the Fund invests at least 65% of its assets in:
o debt securities and taxable municipal bonds either rated at the time of
purchase in one of the top four categories by S&P or Moody's, or if not
rated, in the Manager's opinion are of comparable quality.
o similar Canadian, Provincial, or Federal Government securities payable in
U.S. dollars;
o securities issued or guaranteed by the U.S. Government or its agencies.
What are the Significant Risks?
Bond values fluctuate based on changes in interest rates, market conditions, and
announcements of other economic, political, or financial information. In
addition, the value of the securities held by the Fund may be affected by
factors such as credit rating of the entity that issued the bond and effective
maturities of the bond. Lower quality and longer maturity bonds will be subject
to greater credit risk and price fluctuations than higher quality and shorter
maturity bonds. During periods of falling interest rates, the price of a bond
rises, and when rates rise the price of a bond declines. Because the value of
the securities in which the Fund invests fluctuate the principal values and
investment returns will fluctuate. As with all mutual funds, loss of money is a
risk of investing in this Fund.
Who Should Invest in this Fund?
The Fund is suitable for an investor seeking monthly dividends to provide income
or to be reinvested in Fund shares for growth. Investors must also be willing to
accept fluctuations in the value of the Fund's shares. This Fund should not be
relied on to meet short-term needs.
- --------------------------------------
Portfolio Composition
as of June 30, 1999
- --------------------------------------
Corporate Bonds: 94.5%
Asset Backed Securities: 3.1%
Commercial Paper: 2.4%
- --------------------------------------
- --------------------------------------
Maturity Profile
as of June 30, 1999
- --------------------------------------
Average Bond Quality: Baa1
Average Bond Maturity: 9.67 years
Average Duration: 6.26 years
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees* 0.48%
12b-1 Fees 0.23%
Other Expenses 0.33%
-----
Total Fund Operating Expenses 1.04%
*The Manager voluntarily waived certain fees and expenses during the fiscal year
ended October 31, 1998. After waiver, the Class A share management fee paid was
0.39% (total expenses 0.95%).
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Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$576 $790 $1,022 $1,686
You would pay the following expenses if you did not redeem your shares:
$576 $790 $1,022 $1,686
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Scott A. Bennett, CFA, Assistant Director - Securities Investment of Principal
Capital Management, LLC has been responsible for the day-to-day Fund management
since November 1996. Mr. Bennett was Investment Manager of Investment Securities
from 1991-1996.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1989 13.43%
1990 4.64%
1991 17.45%
1992 8.61%
1993 12.77%
1994 -4.35%
1995 22.28%
1996 2.27%
1997 10.96%
1998 7.14%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last Ten Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
6/30/95 8.54%
3/31/94 -4.06%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five Past Ten
Year Years Years
-------- --------- --------
Bond Fund -0.13% 7.96% 8.11%
Lehman Brothers BAA
Corporate Index 1.77 8.78 8.91
Lipper Corporate Debt BBB
Rated Fund Average 0.85 7.85 8.28
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Principal High Yield Fund, Inc. Income-Oriented
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The High Yield Fund seeks high current income primarily by purchasing high
yielding lower or non-rated fixed income securities which are believed not to
involved undue risk to income or principal. Capital growth is a secondary
objective when consistent with the objective of high current income.
What is the Fund's Investment Strategy?
The Fund invests predominantly in lower rated bonds, commonly referred to as
"junk bonds" and may invest 100% of its assets in such bonds. Bonds of this type
are considered to be speculative with regard to payment of interest and return
of principal. The Fund invests its assets in securities rated Ba1 or lower by
Moody's or BB+ or lower by S&P. The Fund may also invest in unrated securities
which the Manager believes to be of comparable quality. These securities are
considered to be speculative with respect to the issuer's ability to pay
interest and repay principal. The Fund does not invest in securities rated below
Caa (Moody's) or below CCC (S&P) at the time of purchase. The yield to maturity
on these securities is generally lower than the yield to maturity on lower rated
fixed income securities.
What are the Significant Risks?
This Fund involves special risks. Compared to higher rated securities, lower
rated securities may:
o have a more volatile market value, generally reflecting specific events
affecting the issuer;
o be subject to greater risk of loss of income and principal (issuers are
generally not as financially secure);
o have a lower volume of trading, making it more difficult to value or sell
the security; and
o be more susceptible to a change in value or liquidity based on adverse
publicity and investor perception, whether or not based on factual
analysis.
The Fund tries to minimize the risks of investing in lower rated securities by
diversification, investment analysis, and attention to current developments in
interest rates and economic conditions. As with all mutual funds, loss of money
is a risk of investing in this Fund.
Who Should Invest in this Fund?
The Fund is generally a suitable investment for investors seeking monthly
dividends to provide income or to be reinvested in Fund shares for growth.
Investors should carefully consider their ability to assume the risks of this
Fund before making an investment. Investors generally should not invest a large
portion of their assets in the Fund due to the speculative nature of the
securities in which the Fund invests. This Fund should not be relied on to meet
short-term financial needs.
- --------------------------------------
Portfolio Composition
as of June 30, 1999
- --------------------------------------
Corporate Bonds: 95.9%
Commercial Paper: 4.1%
- --------------------------------------
- --------------------------------------
Maturity Profile
as of June 30, 1999
- --------------------------------------
Average Bond Quality: Ba3
Average Bond Maturity: 7.72 years
Average Duration: 4.73 years
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 0.60%
12b-1 Fees 0.25%
Other Expenses 0.55%
-----
Total Fund Operating Expenses 1.40%
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$611 $897 $1,204 $2,075
You would pay the following expenses if you did not redeem your shares:
$611 $897 $1,204 $2,075
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Mark P. Denkinger, CFA, Assistant Director - Securities Investment of Principal
Capital Management LLC, has been responsible for the day-to-day Fund management
since April 1998. Mr. Denkinger was Investment Manager from 1993-1998.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1989 -1.51%
1990 -11.66%
1991 28.74%
1992 13.09%
1993 12.10%
1994 -0.65%
1995 15.61%
1996 12.54%
1997 9.68%
1998 -1.28%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last Ten Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
3/31/91 9.75%
9/30/98 -6.52%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five Past Ten
Year Years Years
-------- --------- --------
High Yield Fund -3.76% 7.58% 6.80%
Lehman Brothers High Yield
Composite Bond Index -0.38 9.55 10.26
Lipper High Current Yield
Fund Average -1.45 8.56 9.30
- --------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Utilities Fund, Inc. Growth-Oriented
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The Utilities Fund seeks to provide current income and long-term growth of
income and capital by investing primarily in equity and fixed income securities
of companies in the public utilities industry.
What is the Fund's Investment Strategy?
The Fund invests in securities issued by companies in the public utilities
industry. These companies include:
o companies engaged in the manufacturing, production, generation, sale, or
distribution of electric or gas energy or other types of energy;and
o companies engaged in telecommunications, including telephone, telegraph,
satellite, microwave, and other communications media (but not public
broadcasting or cable television). Under normal market conditions, at
least 65% (and up to 100%) of the assets of the Fund are invested in
equity securities and fixed-income securities in the public utilities
industry.
What are the Significant Risks?
Since the Fund's investments are concentrated in the utilities industry, the
value of its shares changes in response to factors affecting those industries.
Many utilities companies have been subject to risks of:
o increase in fuel and other operating costs;
o changes in interest rates on borrowings for capital improvement programs;
o changes in applicable laws and regulations;
o changes in technology which render existing plants, equipment, or
products obsolete;
o effects of conservation; and
o increase in costs and delays associated with environmental regulations.
The share price of the Fund may fluctuate more widely than the value of shares
of a fund that invests in a broader range of industries. Generally, the prices
charged by utilities are regulated to protect the public and ensure utility
companies earn enough to grow and provide appropriate services. The prices of
utility company bonds rise when interest rates fall and fall when interest rates
rise. As with all mutual funds, loss of money is a risk of investing in this
Fund.
Who Should Invest in this Fund?
The Fund is a suitable investment for investors seeking quarterly dividends for
income or to be reinvested for growth. Suitable investors are those who want to
invest in companies in the utilities industry and are willing to accept
fluctuations in the value of their investment. This Fund should not be relied on
to meet short-term financial needs.
- --------------------------------------
Top Holdings
as of June 30, 1999
- --------------------------------------
Bell Atlantic
Ameritech Corp.
Bellsouth Corp.
U.S. West, Inc.
MCI Worldcom Inc.
GTE Corp.
AT&T Corp.
Sprint Corp.
Enron Corp.
Pinnacle West Capital Corp.
- --------------------------------------
- --------------------------------------
Top Industries
as of June 30, 1999
- --------------------------------------
Electric Services
Telephone Communication
Combination Utility Services
Personal Credit Institutions
Gas Production & Distribution
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees* 0.60%
12b-1 Fees 0.25%
Other Expenses 0.38%
-----
Total Fund Operating Expenses 1.23%
*The Manager voluntarily waived certain fees and expenses during the fiscal year
ended October 31, 1998. After waiver, the management fee paid was 0.52% (total
expenses 1.15%).
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$594 $847 $1,119 $1,893
You would pay the following expenses if you did not redeem your shares:
$594 $847 $1,119 $1,893
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Catherine A. Zaharis, CFA has been responsible for the day-to-day Fund
management since its inception in April 1993. Ms. Zaharis has been a Portfolio
Manager for Invista since 1987.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1993 8.42%
1994 -11.09%
1995 33.87%
1996 4.56%
1997 29.58%
1998 22.50%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last Six Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
12/31/97 19.24%
3/31/94 -9.00%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five Past Ten
Year Years Years
-------- --------- --------
Utilities Fund 23.07% 19.02% 13.53%*
S&P 500 Stock Index 22.76 27.87 18.78
Dow Jones Utilities Index
with Income Fund Average 11.95 18.21 N/A
- --------------------------------------------------------------------
*Period from December 16, 1992 (date shares first offered to the public) through
June 30, 1999.
- --------------------------------------------------------------------------------
Principal Real Estate Fund, Inc. Growth-Oriented
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The Real Estate Fund seeks to generate total return by investing primarily in
equity securities of companies principally engaged in the real estate industry.
What is the Fund's Investment Strategy?
The Fund invests primarily in equity securities of companies engaged in the real
estate industry. For purposes of the Fund's investment policies, 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 (REIT) and companies with substantial real estate
holdings such as paper, lumber, hotel, and entertainment companies. Companies
whose products and services relate to the real estate industry include building
supply manufacturers, mortgage lenders, and mortgage servicing companies. The
Fund may invest up to 25% of its assets in securities of foreign real estate
companies.
What are the Significant Risks?
Securities of real estate companies are subject to securities market risks as
well as risks similar to those of direct ownership of real estate. These
include:
o declines in the value of real estate;
o risks related to general and local economic conditions;
o overbuilding; and
o increases in property taxes and operating expenses.
In addition to the risks listed above, equity REITs are affected by the changes
in the value of the properties owned by the trust. Mortgage REITs are affected
by the quality of the credit extended. The values of the Fund's assets change on
a daily basis. The current share price reflects the activities of individual
companies and general market and economic conditions. In the short term, share
prices can fluctuate dramatically in response to these factors. Because of these
fluctuations, principal values and investment returns vary. As with any mtutual
fund, loss of money is a risk of investing in this Fund.
Who Should Invest in this Fund?
TheFund is generally a suitable investment for investors seeking long-term
growth: o who want to invest in companies engaged in the real estate
industry, and o who are willing to accept fluctuations in the value of the
investment.
This Fund should not be relied on to meet short-term financial needs.
- --------------------------------------
Top Holdings
as of June 30, 1999
- --------------------------------------
Equity Residential Prop
Prologis Trust
Equity Office Properties
Apartment Investment
The Macerich Co.
Cabot Industrial Trust
Reckson Assoc. Realty
Bradley Real Estate, Inc.
Manufactured Homes
CBL & Associates
- --------------------------------------
- --------------------------------------
Top Industries
as of June 30, 1999
- --------------------------------------
Apartment
Personal Credit Institutions
Real Estate Operators & Lessor
Hotels & Motels
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 0.90%
12b-1 Fees 0.31%
Other Expenses 1.04%
-----
Total Fund Operating Expenses 2.25%
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$692 $1,145 $1,623 $2,937
You would pay the following expenses if you did not redeem your shares:
$692 $1,145 $1,623 $2,937
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Kelly D. Rush, CFA, Assistant Director of Commercial Real Estate, Principal
Capital Management LLC, has been responsible for the day-to-day Fund management
since its inception in December 1997. Mr. Rush was Senior Administrator,
Investment - Commercial Real Estate from 1993-1996.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1998 -13.62%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last One Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
6/30/99 11.00%
9/30/98 -7.81%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five
Year Years
-------- ---------
Real Estate Fund -4.02% -7.00%*
Morgan Stanley REIT Index -8.41 N/A
Lipper Real Estate Fund
Average -5.55 10.39
- --------------------------------------------------------------------
*Period from December 31, 1997 (date shares first offered
to the public) through June 30, 1999.
- --------------------------------------------------------------------------------
Principal Balanced Fund, Inc. Growth-Oriented
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The Balanced Fund seeks to generate a total investment return consisting of
current income and capital appreciation while assuming reasonable risks in
furtherance of the investment objectives.
What is the Fund's Investment Strategy?
The Fund invests primarily in common stocks and corporate bonds. It may also
invest in other equity securities, government bonds and notes, and cash. Though
the percentages in each category are not fixed, common stocks generally
represent 40% to 70% of the Fund's assets. The remainder of the Fund's assets
are invested in bonds and cash.
As of October 31, 1998
Cash and Cash Equivalents
1.82%
Stocks
54.08% (pie chart)
Bonds
44.10%
What are the Significant Risks?
The value of the stocks owned by the Fund changes on a daily basis. Stock prices
reflect the activities of individual companies and general market and economic
conditions. In the short term, stock prices can fluctuate dramatically in
response to these factors.
Bond values change daily. Their prices reflect changes in interest rates, market
conditions, and announcements of other economic, political, or financial
information. When interest rates fall, the price of a bond rises and when
interest rates rise, the price declines. As with any mutual fund, loss of money
is a risk of investing in this Fund.
Who Should Invest in this Fund?
The Fund is a suitable investment for investors seeking long-term growth but who
are uncomfortable accepting the risks of investing entirely in common stocks.
This Fund should not be relied on to meet short-term financial needs.
- --------------------------------------
Top Holdings
as of June 30, 1999
- --------------------------------------
Chase Comm. Mtge. Sec.
IBM Corp.
First Data Corp.
Browning-Ferris Ind.
DLJ Comm. Mtge. Corp.
Citigroup Inc.
Pepsico, Inc.
Merck & Co.
Federal Home Loan Mtge. Corp.
Allstate Corp.
- --------------------------------------
- --------------------------------------
Top Industries
as of June 30, 1999
- --------------------------------------
Mortgage Pass Through Securities
Commercial Banks
Drugs
Fire, Marine, & Casualty Ins.
Common Stock
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 0.59%
12b-1 Fees 0.25%
Other Expenses 0.44%
-----
Total Fund Operating Expenses 1.28%
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$599 $862 $1,144 $1,947
You would pay the following expenses if you did not redeem your shares:
$599 $862 $1,144 $1,947
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1989 10.65%
1990 -5.18%
1991 31.72%
1992 10.47%
1993 9.01%
1994 -3.38%
1995 23.39%
1996 13.00%
1997 17.29%
1998 11.20%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last Ten Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
3/31/91 11.34%
9/30/90 -11.70%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five Past Ten
Year Years Years
-------- --------- --------
Balanced Fund 8.59% 13.78% 10.91%
S&P 500 Stock Index 22.76 27.87 18.78
Lipper Balanced
Fund Average 9.98 16.25 12.46
- --------------------------------------------------------------------
Who is the Fund's Investment Manager?
Douglas D. Herold, CFA, has been co-manager responsible for the day-to-day Fund
management since October 1998. Mr. Herold has been a Portfolio Manager for
Invista since 1996. Prior thereto, he was Securities Analyst from 1993-1996.
Martin J. Schafer has been co-manager of the Fund since December 1997. Mr.
Schafer has been Portfolio Manager for Invista since 1992.
Judith A. Vogel, CFA, has been co-manager of the Fund since April 1993. Ms.
Vogel has been Portfolio Manager for Invista since 1987.
- --------------------------------------------------------------------------------
Principal Blue Chip Fund, Inc. Growth-Oriented
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The Blue Chip Fund seeks to achieve growth of capital and growth of income by
investing primarily in common stocks of well capitalized, established companies.
What is the Fund's Investment Strategy?
The Fund selects the companies it believes to have the potential for growth of
capital, earnings, and dividends. Under normal market conditions, the Fund
invests at least 65% (and may invest up to 100%) of its assets in blue chip
companies. Blue chip companies are easily identified by:
o size (market capitalization of at least $1 billion)
o established history of earnings and dividends
o easy access to credit
o good industry position
o superior management structure
In addition, the large market of publicly held shares for these companies and
their generally high trading volume results in a relatively high degree of
liquidity for these stocks.
What are the Significant Risks?
The value of the stocks owned by the Fund changes on a daily basis. The current
price reflects the activities of individual companies and general market and
economic conditions. In the short term, stock prices can fluctuate dramatically
in response to these factors. Because of these fluctuations, principal values
and investment returns vary. As with any mutual fund, loss of money is a risk of
investing in this Fund.
Who Should Invest in this Fund?
The Fund is generally a suitable investment for investors seeking long-term
growth who are willing to accept the risks of investing in common stocks but who
prefer investing in larger, established companies. This Fund should not be
relied on to meet short-term financial needs.
- --------------------------------------
Top Holdings
as of June 30, 1999
- --------------------------------------
Hewlett-Packard Co.
Browning-Ferris Ind.
Johnson & Johnson
Motorola, Inc.
Minnesota Min. & Mfg.
McDonald's Corp.
Bank One Corp.
GTE Corp.
Chubb Corp.
Royal Dutch Petroleum Co.
- --------------------------------------
- --------------------------------------
Top Industries
as of June 30, 1999
- --------------------------------------
Drugs
Petroleum Refining
Computer & Office Equipment
Commercial Banks
Telephone Communications
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 0.48%
12b-1 Fees 0.25%
Other Expenses 0.58%
-----
Total Fund Operating Expenses 1.31%
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$602 $870 $1159 $1979
You would pay the following expenses if you did not redeem your shares:
$602 $870 $1159 $1979
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Mark T. Williams, CFA, has been responsible for the day-to-day Fund management
since its inception in March 1991. Mr. Williams has been a Portfolio Manager for
Invista since 1991.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1992 6.09%
1993 2.62%
1994 3.36%
1995 33.19%
1996 16.78%
1997 26.25%
1998 16.55%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last Seven Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
6/30/97 16.40%
9/30/98 -9.92%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five Past Ten
Year Years Years
-------- --------- --------
Blue Chip Fund 15.61% 22.27% 15.41%*
S&P 500 Stock Index 22.76 27.87 18.78
Lipper Growth and
Income Fund Average 14.48 21.93 15.35
- --------------------------------------------------------------------------------
*Period from March 1, 1991 (date shares first offered to the public) through
June 30, 1999.
- --------------------------------------------------------------------------------
Principal Capital Value Fund, Inc. Growth-Oriented
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The Capital Value Fund seeks to achieve primarily long-term capital appreciation
and secondarily growth of investment income through the purchase primarily of
common stocks, but the Fund may invest in other securities.
What is the Fund's Investment Strategy?
The Fund invests primarily in securities that have "value" characteristics. This
process is known as "value investing." Value stocks tend to have higher yields
and lower price to earnings ratios than other stocks.
Securities chosen for investment may include those of companies which Invista
believes can be expected to share in the growth of the nation's economy over the
long term.
What are the Significant Risks?
The current price of the Fund's assets reflect the activities of the individual
companies and general market and economic conditions. In the short term, stock
prices can fluctuate dramatically in response to these factors. Because of these
fluctuations, principal values and investment returns vary. As with any mutual
fund, loss of money is a risk of investing in this Fund.
Who Should Invest in this Fund?
The Fund is generally a suitable investment for investors seeking long-term
growth. Investors should be willing to accept the risks of investing in common
stocks but also prefer investing in companies that appear to be considered
undervalued relative to similar companies. This Fund should not be relied on to
meet short-term financial needs.
- --------------------------------------
Top Holdings
as of June 30, 1999
- --------------------------------------
Atlantic Richfield Co.
Grainger (W W)
Browning-Ferris Ind.
Chase Manhattan
AT&T Corp.
U.S. West, Inc.
SBC Communications Inc.
American Home Prod.
Pepsico, Inc.
Texaco Inc.
- --------------------------------------
- --------------------------------------
Top Industries
as of June 30, 1999
- --------------------------------------
Commercial Banks
Drugs
Telephone Communications
Petroleum Refining
Miscellaneous Converted Paper
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 0.38%
12b-1 Fees 0.14%
Other Expenses 0.22%
-----
Total Fund Operating Expenses 0.74%
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$547 $700 $867 $1,350
You would pay the following expenses if you did not redeem your shares:
$547 $700 $867 $1,350
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Catherine A. Zaharis, CFA, has been responsible for the day-to-day Fund
management since November 1996. Ms. Zaharis has been a Portfolio Manager for
Invista since 1987. What is the Fund's Investment Objective?
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1989 14.76%
1990 -10.64%
1991 37.21%
1992 9.09%
1993 7.56%
1994 0.21%
1995 31.90%
1996 23.42%
1997 28.69%
1998 12.13%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last Ten Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
3/31/91 17.94%
9/30/90 -17.62%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five Past Ten
Year Years Years
-------- --------- --------
Capital Value Fund 5.83% 20.74% 13.83%
S&P 500 Stock Index 22.76 27.87 18.78
Lipper Growth and Income
Fund Average 14.48 21.93 15.35
- --------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal Growth Fund, Inc. Growth-Oriented
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The Growth Fund seeks growth of capital through the purchase primarily of common
stocks, but the Fund may invest in other securities.
What is the Fund's Investment Strategy?
To achieve the Fund's objective, Invista uses an approach described as
"fundamental analysis." The basic steps involved in this analysis are:
o Research. Invista researches economic prospects over the next one to two
years rather than focusing on near term expectations. This approach is
designed to provide insight into a company's real growth potential.
o Valuation. The research findings allow Invista to identify the prospects
for the major industrial, commercial, and financial segments of the
economy. Invista looks at such factors as demand for products, capacity
to produce, operating costs, pricing structure, marketing techniques,
adequacy of raw materials and components, domestic and foreign
competition, and research productivity. It then uses this information to
judge the prospects for each industry for the near and intermediate term.
o Stock selection. Invista then purchases securities of issuers which
appear to have high growth potential.
What are the Significant Risks?
These securities present greater opportunities for capital growth because of
high potential earnings growth but may also involve greater risk than securities
which do not have the same potential. The companies may have limited product
lines, markets or financial resources, or may depend on a limited management
group. As a result, these securities may change in value more than those of
larger, more established companies. As the value of the stocks owned by the Fund
changes, the Fund share price changes. As with any mutual fund, loss of money is
a risk of investing in this Fund.
Who Should Invest in this Fund?
The Fund is generally a suitable investment for investors who want long-term
growth. Additionally, the investor must be willing to accept the risks of
investing in common stocks that may have greater risks than stocks of companies
with lower potential for earnings growth. This Fund should not be relied on to
meet short-term financial needs.
- --------------------------------------
Top Holdings
as of June 30, 1999
- --------------------------------------
Tyco International Ltd.
MCI Worldcom Inc.
Microsoft Corp.
Intel Corp.
Citigroup Inc.
Home Depot Inc.
Marriot Intl - Class A
Chase Manhattan
Johnson & Johnson
General Electric Co.
- --------------------------------------
- --------------------------------------
Top Industries
as of June 30, 1999
- --------------------------------------
Drugs
Commercial Banks
Computer & Office Equipment
Telephone Communications
Electronic Components & Access.
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 0.41%
12b-1 Fees 0.21%
Other Expenses 0.33%
-----
Total Fund Operating Expenses 0.95%
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$567 $763 $976 $1,586
You would pay the following expenses if you did not redeem your shares:
$567 $763 $976 $1,586
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Michael R. Hamilton has been responsible for the day-to-day Fund management
since its inception in August 1987. Mr. Hamilton has been a Portfolio Manager
for Invista since 1987.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1989 18.07%
1990 -1.41%
1991 56.61%
1992 10.16%
1993 7.51%
1994 3.21%
1995 33.47%
1996 12.23%
1997 28.41%
1998 20.37%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last Ten Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
3/31/91 24.39%
9/30/90 -18.61%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five Past Ten
Year Years Years
-------- --------- --------
Growth Fund 11.73% 21.61% 18.13%
S&P 500 Stock Index 22.76 27.87 18.78
Lipper Growth Fund Average 18.87 23.10 16.60
- --------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal MidCap Fund, Inc. Growth-Oriented
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The MidCap Fund seeks to achieve long-term capital appreciation by investing
primarily in securities of emerging and other growth-oriented companies.
What is the Fund's Investment Strategy?
The Fund chooses stocks which are thought to be responsive to changes in the
marketplace and have the fundamental characteristics to support growth. The Fund
may invest for any period in any industry, in any kind of growth-oriented
company. Companies may range from the well-established and well-known to the new
or those with limited operating history.
Under normal market conditions, the Fund invests at least 65% of its assets in
securities of companies with market capitalizations in the $1 billion to $10
billion range. Market capitalization is defined as total current market value of
a company's outstanding common stock. The Fund may invest up to 20% of its
assets in securities of foreign companies.
What are the Significant Risks?
The value of the stocks owned by the Fund changes on a daily basis. The current
share price reflects the activities of individual companies and general market
and economic conditions. The Fund's share price may fluctuate more than that of
funds primarily invested in stocks of large companies. Mid-sized companies may
pose greater risk due to narrow product lines, limited financial resources, less
depth in management, or a limited trading market for their stocks. In the short
term, stock prices can fluctuate dramatically in response to these factors.
Because of these fluctuations, principal values and investment returns vary. As
with any mutual fund, loss of money is a risk of investing in this Fund.
Who Should Invest in this Fund?
The Fund is generally a suitable investment for investors seeking
long-term growth and who are willing to accept the potential for short-term
fluctuations in the value of their investments. It is designed for long-term
investors for a portion of their investments and not designed for investors
seeking income or conservation of capital. This Fund should not be relied on to
meet short-term financial needs.
- --------------------------------------
Top Holdings
as of June 30, 1999
- --------------------------------------
McLeodUSA, Inc.
TCF Financial Corp.
Republic Services, Inc.
Synopsys, Inc.
Maytag Corp.
Sungard Data Systems, Inc.
Four Seasons Hotel, Inc.
Jabil Circuit Inc.
Coltec Industries
Equifax Inc.
- --------------------------------------
- --------------------------------------
Top Industries
as of June 30, 1999
- --------------------------------------
Computer & Data Processing
Commercial Banks
Electronic Components & Access.
Telephone Communications
Savings Institutions
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 0.56%
12b-1 Fees 0.24%
Other Expenses 0.42%
-----
Total Fund Operating Expenses 1.22%
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$593 $844 $1,113 $1,882
You would pay the following expenses if you did not redeem your shares:
$593 $844 $1,113 $1,882
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Michael R. Hamilton has been responsible for the day-to-day Fund management
since its inception in December 1987. Mr. Hamilton has been a Portfolio Manager
for Invista since 1987.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1989 20.53%
1990 -6.33%
1991 52.83%
1992 14.81%
1993 12.29%
1994 3.03%
1995 34.20%
1996 19.13%
1997 22.94%
1998 -0.23%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last Ten Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
3/31/91 25.77%
9/30/98 -21.24%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five Past Ten
Year Years Years
-------- --------- --------
MidCap Fund 3.62% 16.30% 15.04%
S&P 600 Index -2.31 16.59 12.40
Lipper MidCap Fund
Average 13.36 20.04 15.23
- --------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal SmallCap Fund, Inc. Growth-Oriented
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The SmallCap Fund seeks to achieve long-term growth of capital by investing
primarily in equity securities of companies with comparatively smaller market
capitalizations.
What is the Fund's Investment Strategy?
The Fund invests in equity securities of companies in the U.S. with
comparatively smaller market capitalizations. Market capitalization is defined
as total current market value of a company's outstanding common stock. Under
normal market conditions, the Fund invests at least 65% of its assets in
securities of companies with market capitalizations of $1 billion or less.
In selecting the portfolio securities Invista looks at stocks with value and/or
growth characteristics. The value orientation emphasizes buying stocks at less
than their investment value and avoiding stocks whose price has been
artificially built up. The growth orientation emphasizes buying stocks of
companies whose potential for growth of capital and earnings is expected to be
above average.
What are the Significant Risks?
Investments in companies with smaller market capitalizations may involve greater
risks and wide, rapid fluctuations in price than investments in larger, more
mature companies. Smaller companies may be developing or marketing new products
or services for which markets are not yet established and may never become
established. While small, unseasoned companies may offer greater opportunities
for capital growth than larger, more established companies, they also involve
greater risks and should be considered speculative.
The value of the stocks owned by the Fund changes on a daily basis. The current
share price reflects the activities of individual companies as well as general
market and economic conditions. In the short term, stock prices can fluctuate
dramatically in response to these factors. Because of these fluctuations,
principal values and investment returns vary. As with any mutual fund, loss of
money is a risk of investing in this Fund.
Who Should Invest in this Fund?
The Fund is a suitable investment for investors seeking long-term growth and who
are willing to accept the potential for volatile fluctuations in the value of
their investment. It is not designed for investors seeking income or
conservation of capital. This Fund should not be relied on to meet short-term
needs.
- --------------------------------------
Top Holdings
as of June 30, 1999
- --------------------------------------
DII Group Inc.
Liposome Company, Inc.
Tenfold Corp.
Hypercom Corp.
Rubio's Restaurants, Inc.
CFC International, Inc.
ICG Communications Inc.
Hot Topic Inc.
Cybersource Corp.
Anaren Microwave Inc.
- --------------------------------------
- --------------------------------------
Top Industries
as of June 30, 1999
- --------------------------------------
Computer & Data Processing
Drugs
Telephone Communications
Savings Institutions
Men's & Boys' Furnishings
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 0.85%
12b-1 Fees 0.37%
Other Expenses 1.36%
-----
Total Fund Operating Expenses 2.58%
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$724 $1,239 $1,780 $3,251
You would pay the following expenses if you did not redeem your shares:
$724 $1,239 $1,780 $3,251
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
John F. McClain has been co-manager responsible for the day-to-day Fund
management since inception in December 1997. Mr. McClain has been a Portfolio
Manager for Invista since 1995. He was Investment Officer from 1992-1995.
Mark T. Williams, CFA, has been co-manager of the Fund since inception in
December 1997. Mr. Williams has been Portfolio Manager for Invista since 1991.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's peformance from year to year. The performance reflected in the chart does
not include a sales charge, which would make the returns less than those shown.
Please remember the Fund's past performance does not represent how it will
perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1998 -5.68
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last One Year
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
6/30/99 22.42%
9/30/98 -23.52%
- -----------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- -----------------------------------------------------
Past One
Year
--------
SmallCap Fund 10.08%
S&P 600 Index -2.31%
Lipper SmallCap Fund
Average 1.93%
- -----------------------------------------------------
- --------------------------------------------------------------------------------
Principal International Fund, Inc. Growth-Oriented
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The International Fund seeks long-term growth of capital by investing in a
portfolio of equity securities of companies domiciled in any of the nations of
the world
What is the Fund's Investment Strategy?
The Fund invests in common stocks. Under normal market conditions, the Fund
intends to have at least 65% of its assets invested in companies established in
at least three different countries. Primary consideration is given to securities
of corporations of Western Europe, North America, and Australasia (Australia,
Japan and Far East Asia). In choosing investments for the Fund, Invista pays
particular attention to the long-term earnings prospects of the various
companies under consideration. Invista then weighs those prospects relative to
the price of the security.
What are the Significant Risks?
The Fund owns stocks whose values change on a daily basis due to the activities
of individual companies as well as general market and economic conditions. In
the short term, stock prices and currencies can fluctuate dramatically in
response to these factors. In addition, there are risks involved with any
investment in foreign securities. These include the risk that a foreign security
could lose value as a result of political, financial, and economic events in
foreign countries.
Foreign securities may be subject to securities regulators with less stringent
accounting and disclosure standards than are required of U.S. companies.
Securities of foreign issuers may be less liquid than those of comparable
domestic issuers. As with any mutual fund, loss of money is a risk of investing
in this Fund.
Who Should Invest in this Fund?
The Fund is suitable for investors who seek long-term growth and who want to
invest in non-U.S. companies. This Fund is not appropriate for investors who are
seeking either preservation of capital or high current income. Suitable
investors must be able to assume the increased risks of higher price volatility
and currency fluctuations associated with investments in international stocks.
This Fund should not be relied on to meet short-term financial needs.
- --------------------------------------
Top Countries
as of June 30, 1999
- --------------------------------------
United Kingdom Sweden
Netherlands France
United States
- --------------------------------------
- --------------------------------------
Top Holdings
as of June 30, 1999
- --------------------------------------
Philips Electronics
Telecom Italia-DI
Ericsson LM B Shares
Cookson Group
United News & Media PLC
Bank of Ireland
Soc. Nationale ELF
UBS AG
Telecom Corp of New Zealand
Astrazeneca
- --------------------------------------
- --------------------------------------
Top Industries
as of June 30, 1999
- --------------------------------------
Commercial Banks
Telephone Communications
Drugs
Meat Products
Communications Equipment
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 0.68%
12b-1 Fees 0.19%
Other Expenses 0.38%
-----
Total Fund Operating Expenses 1.25%
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$596 $853 $1,129 $1,915
You would pay the following expenses if you did not redeem your shares:
$596 $853 $1,129 $1,915
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Scott D. Opsal, CFA, has been responsible for the day-to-day Fund management
since April 1994. Mr. Opsal has been Executive Vice President and Chief
Investment Officer of Invista since 1997. Prior thereto he was Vice President
from 1986-1997.
How has the Fund Performed?
The chart shows the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. Please remember the Fund's past
performance does not represent how it will perform in the future. The
performance reflected in the chart does not include a sales charge, which would
make the returns less than those shown. Please remember the Fund's past
performance does not represent how it will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1989 14.77%
1990 -9.51%
1991 15.25%
1992 0.81%
1993 46.34%
1994 -5.26%
1995 11.56%
1996 23.76%
1997 12.22%
1998 8.48%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last Ten Years
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
12/31/98 15.54%
9/30/90 -18.37%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five Past Ten
Year Years Years
-------- --------- --------
International Fund -0.47% 11.66% 11.24%
Morgan Stanley Capital
International EAFE
(Europe, Australisa and
Far East) Index 7.62 8.21 6.60
Lipper International Fund
Average 4.83 9.10 9.67
- --------------------------------------------------------------------
- --------------------------------------------------------------------------------
Principal International SmallCap Fund, Inc.
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The International SmallCap Fund seeks to achieve long-term growth of capital by
investing primarily in equity securities of non-United States companies with
comparatively smaller market capitalizations.
What is the Fund's Investment Strategy?
The Fund invests in stocks of non-U.S. companies with comparatively smaller
market capitalizations. Market capitalization is defined as total current market
value of a company's outstanding common stock. Under normal market conditions,
the Fund invests at least 65% of its assets in securities of companies having
market capitalizations of $1 billion or less.
The Fund diversifies its investments geographically. There is no limitation on
the percentage of assets that may be invested in one country or denominated in
any one currency. However, under normal market circumstances, the Fund intends
to have at least 65% of its assets invested in securities of companies of at
least three countries.
What are the Significant Risks?
Foreign stocks carry risks that generally found in stocks of U.S. companies.
These include the risk that a foreign security could lose value as a result of
political, financial, and economic events in foreign countries. In addition,
foreign securities may be subject to securities regulators with less stringent
account and disclosure standards than are required of U.S. companies.
Investment in companies with small market capitalizations carry their own risks.
Historically, small company securities have been more volatile in price than
larger company securities, especially over the short-term. While small companies
may offer greater opportunities for capital growth than larger, more established
companies, they also involve greater risks and should be considered speculative.
As with any mutual fund, loss of money is a risk of investing in this Fund.
Who Should Invest in this Fund?
The Fund is suitable for investors seeking long-term growth who want to invest a
portion of their assets in smaller, non-U.S. companies. This Fund is not
appropriate for investors seeking either preservation of capital or high current
income. Investors must be able to assume the increased risks of higher price
volatility and currency fluctuations associated with investments in
international stocks. This Fund should not be relied on to meet short-term
financial needs.
- --------------------------------------
Top Countries
as of June 30, 1999
- --------------------------------------
Japan Australia
Finland Canada
Singapore
- --------------------------------------
- --------------------------------------
Top Holdings
as of June 30, 1999
- --------------------------------------
Yamada Denki
Fast Retailing Co. Ltd.
Jot Automation Group OYJ
Esat Telecom Group ADR
Vestas Wind Systems
Perlos OYJ
AT&T Canada, Inc.
Tsuruha Co., Ltd.
Kamps AG
Aristocrat Leisure Ltd.
- --------------------------------------
- --------------------------------------
Top Industries
as of June 30, 1999
- --------------------------------------
Computer & Data Processing
Electronic Components & Access.
Radio, Television, & Computer
Electric Services
Commercial Banks
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 1.20%
12b-1 Fees 0.33%
Other Expenses 1.13%
-----
Total Fund Operating Expenses 2.66%
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$731 $1,262 $1,818 $3,326
You would pay the following expenses if you did not redeem your shares:
$731 $1,262 $1,818 $3,326
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Darren K. Sleister has been responsible for the day-to-day Fund management since
its inception in May 1997. Mr. Sleister has been a Portfolio Manager for Invista
since 1995. Prior thereto he was a Securities Analyst.
How has the Fund Performed?
The chart show the Fund's past performance of the Class A shares. It provides
some indication of the risks of investing in the Fund by showing changes in the
Fund's performance from year to year. The performance reflected in the chart
does not include a sales charge, which would make the returns less than those
shown. Please remember the Fund's past performance does not represent how it
will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1998 14.40%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last One Year
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
3/31/98 21.74%
9/30/98 -19.84%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five
Year Years
-------- ---------
International SmallCap Fund 6.25% 16.27%*
Morgan Stanley Capital
International EAFE
(Europe, Australia and
Far East) Index 7.62 8.21
Lipper International
Small-Cap Fund Average 11.91 8.99
- --------------------------------------------------------------------
*Period from August 29, 1997 (date shares first offered to the public) through
June 30, 1999.
- --------------------------------------------------------------------------------
Principal International Emerging Markets Fund, Inc. Growth-Oriented
- --------------------------------------------------------------------------------
What is the Fund's Investment Objective?
The International Emerging Markets Fund seeks to achieve long-term growth of
capital by investing primarily in equity securities of issuers in emerging
market countries.
What is the Fund's Investment Strategy?
The Fund invests in common stocks of companies in emerging market countries. The
term "emerging market country" means any country which is considered to be an
emerging country by the international financial community. These countries
generally include every nation in the world except the United States, Canada,
Japan, Australia, New Zealand, and most nations located in Western Europe.
Investing in many emerging market countries is not feasible or may involve
unacceptable political risk. Invista focuses on those emerging market countries
it believes have strongly developing economies and markets which are becoming
more sophisticated.
What are the Significant Risks?
The Fund owns stocks whose values change on a daily basis due to the activities
of individual companies as well as general market and economic conditions. In
the short term, stock prices and currencies can fluctuate dramatically in
response to these factors. In addition, there are risks involved with any
investment in foreign securities. These include the risk that a foreign security
could lose value as a result of political, financial, and economic events in
foreign countries.
Foreign securities may be subject to securities regulators with less stringent
accounting and disclosure standards than are required of U.S. companies.
Securities of foreign issuers may be less liquid than those of comparable
domestic issuers. As with any mutual fund, loss of money is a risk of investing
in this Fund.
Who Should Invest in this Fund?
This Fund is a suitable investment for investors seeking long-term growth who
want to invest a portion of their assets in securities of companies in emerging
market countries. This Fund is not appropriate for investors seeking either
preservation of capital or high current income. Investors must be able to assume
the increased risks of higher price volatility and currency fluctuations
associated with investments in international stocks which trade in non-U.S.
currencies. This Fund should not be relied on to meet short-term financial
needs.
- --------------------------------------
Top Countries
as of June 30, 1999
- --------------------------------------
Korea Mexico
Brazil South Africa
India
- --------------------------------------
Top Holdings
as of June 30, 1999
- --------------------------------------
FOMENTO (FEMSA)
Videsh Sanchar Nigam Ltd.
The India Fund Inc.
Shinsegae Dept. Store
Korea Telecom Corp. ADR
Pohang Iron & Steel
Shinhan Bank
Overseas Union Bank Ltd.
Compal Electronics, Inc.
Matav RT ADR
- --------------------------------------
- --------------------------------------
Top Industries
as of June 30, 1999
- --------------------------------------
Telephone Communications
Commercial Banks
Beverages
Personal Credit Institutions
Computer & Office Equipment
- --------------------------------------
What are the Fund's Operating Expenses?
As of October 31, 1998
Management Fees 1.25%
12b-1 Fees 0.39%
Other Expenses 1.67%
-----
Total Fund Operating Expenses 3.31%
- --------------------------------------------------------------------------------
Examples
- --------------------------------------------------------------------------------
The Examples assume you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
Examples also assume that your investment has a 5% return each year and the
Fund's operating expenses remain the same although your actual costs may be
higher or lower. Based on these assumptions your cost would be:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$793 $1,445 $2,119 $3,907
You would pay the following expenses if you did not redeem your shares:
$793 $1,445 $2,119 $3,907
- --------------------------------------------------------------------------------
The following table describes the sales charges for contributions. Contributions
for all participants are combined and added to existing plan account values to
determine the sales charge for the current contribution.
- --------------------------------------------------------------------------------
Contributions Plus Sales Charge
Principal Fund Plan Assets (as % of Offering Price)
- --------------------------------------------------------------------------------
Less than $50,000 3.75%
$50,000 but less than $100,000 3.75%
$100,000 but less than $250,000 3.75%
$250,000 but less than $500,000 2.50%
$500,000 but less than $1,000,000 1.50%
$1,000,000 or more 0
- --------------------------------------------------------------------------------
The sales charge is waived for purchases of $1,000,000 or more. Such purchases
are subject to a contingent deferred sales charge ("CDSC") if shares are
redeemed within 18 months after the share purchase. If the plan terminates or
plan assets are transferred, then a 0.75% CDSC applies to the lesser of the
value of the shares redeemed (exclusive of reinvested dividend and capital gain
distributions), or total cost of the shares redeemed. Shares subject to the CDSC
which are exchanged into another Principal Fund continue to be subject to the
CDSC until the original 18 month period expires.
Who is the Fund's Investment Manager?
Kurtis D. Spieler, CFA, has been responsible for the day-to-day Fund management
since its inception in May 1997. Mr. Spieler has been a Portfolio Manager for
Invista since 1995. Prior thereto he was a Securities Analyst.
How has the Fund Performed?
The table and chart show the Fund's past performance of the Class A shares. It
provides some indication of the risks of investing in the Fund by showing
changes in the Fund's performance from year to year. The performance reflected
in the chart does not include a sales charge, which would make the returns less
than those shown. Please remember the Fund's past performance does not represent
how it will perform in the future.
Annual Total Returns
Calendar Years Ended December 31
- --------------------------------
1998 -17.42%
- --------------------------------
- ----------------------------------------
Highest & Lowest Quarterly Total Returns
for the Last One Year
- ----------------------------------------
Quarter Ended Quarterly Return
- ----------------------------------------
3/30/99 25.56%
9/30/98 -18.97%
- ----------------------------------------
- --------------------------------------------------------------------
Average annual total returns
for the period ending June 30, 1999
- --------------------------------------------------------------------
Past One Past Five
Year Years
-------- ---------
International Emerging
Markets Fund 21.14% -1.72%*
Morgan Stanley Capital
International EMF
(Emerging Markets Free)
Index 28.71 -0.83
Lipper Emerging
Markets Fund Average 16.02 -1.21
- --------------------------------------------------------------------
*Period from August 29, 1997 (date shares first offered to the public) through
June 30, 1999.
Investment Information
Investment Manager
The investment professionals who manage the assets of each Fund are listed
with each Fund. Backed by their staffs of experienced securities analysts, they
provide the Funds with professional investment management.
Principal Management Corporation serves as the manager for the Principal Mutual
Funds. The Manager has signed sub-advisory contracts with Invista Capital
Management, LLC. Under those contracts, Invista provides portfolio management
for the Domestic and International Growth-Oriented Funds (except Real Estate,
which is managed by Principal Management Corporation), the Government Securities
Income Fund, and the Limited Term Bond Fund. The Bond, High Yield, and Cash
Management Funds are managed by Principal Ma nagement Corporation.
How to Provide Investment Instructions
You make initial investment elections by completing an
Enrollment Form (included in this booklet) when first enrolling in a plan. You
can make changes to your account by calling (800) 247-4123, option 5 between the
hours of 7:00 a.m. and 7:00 p.m. Central time. There is no charge or
administrative fee for changing your investment direction or exchanging between
the Funds. Each Mutual Fund reserves the right to limit exchanges to prevent
excessive short-term trading which the Fund believes m ay interfere with
managing the Fund's portfolio.
Dividends and Distributions
Dividends and capital gains distributions are reinvested in additional shares of
the Fund you own without a sales charge.
Services
Principal Mutual Funds offer you a variety of ways to obtain information,
monitor your investments, and buy and sell shares.
Toll-Free Access
If you need account assistance or information, call our Customer Service
Representatives at (800) 247-4123. They are available from 7:00 a.m. to 7:00
p.m. Central time on any day the New York Stock Exchange is open for trading. A
Customer Service Representative can answer questions about your account and give
you information regarding transactions, distributions, and general service
issues.
PrinCall(R) Automated Telephone Service
When you need account information, it's as close as your telephone...24 hours a
day! PrinCall (R) is a toll-free automated account information system which you
access from a push-button phone. PrinCall is simple...fast... and free! Call
(800) 421-2298.
Semi-Annual Participant Statements
You'll receive an informative statement of account activity sent to your home
twice per year.
Transfer/Exchange Services
As your financial objectives change, you can exchange your shares for shares of
a different Principal Mutual Fund within the same share class or change your
instructions for investment of new contributions. Telephone exchange privileges
are available at (800) 247-4123.
Internet Access
Beginning third quarter 1999, you may visit www.principal.com to view your
account information 24 hours a day, seven days a week! Simply select Your
Portfolio to reach all of your Principal Mutual Fund information.
Additional Information
Additional information about each Fund's investments is available in annual and
semiannual reports to shareholders. In the Funds' annual report you will find a
discussion of the market conditions and investment strategies that significantly
affected the Funds' performance during the last fiscal year. You may obtain
either or both of these reports at no cost by calling (800) 247-4123.
INSTRUCTIONS FOR COMPLETING THE ENROLLMENT AND BENEFICIARY ELECTION FORM
Sections A-E of the enrollment form must be completed to enroll in your
employer's retirement plan and name your plan beneficiary. In the event your
employer makes a discretionary contribution to the plan on your behalf, the
information included on this form will be needed. You must complete this form
even if you elect not to defer. Section F must be completed if you are married
and do not designate your spouse as your sole primary beneficiary.
SECTION A: ACCOUNT REGISTRATION
Complete all the information requested in this section. Your employer can
confirm your date of employment or, if applicable, your rehire date.
SECTION B: SALARY DEFERRAL AGREEMENT
Indicate in this section the amount of your salary you want to defer. This
amount will be invested by your employer in the Principal Mutual Funds you
select in Section C.
SECTION C: INVESTMENT DIRECTION
Indicate in this section the portion of your contributions to be directed to
the Fund or Funds you choose. The total of all contributions must equal
100%.
The Fund or Funds in which you may invest are listed in the table below with
an assigned code. You must invest using the Class A shares, which your
employer has chosen for your retirement plan. Write the code of the Fund you
select in the "Fund Code" column and the name of the Fund in the "Fund Name"
column.
Fund Code
Class A
GROWTH-ORIENTED FUNDS shares
---------------------------------------------------------
Domestic
Balanced Fund 105
Blue Chip Fund 110
Capital Value Fund 120
Growth Fund 140
MidCap Fund 130
Real Estate Fund 148
SmallCap Fund 149
Utilities Fund 160
International
International Emerging Markets Fund 143
International Fund 165
International SmallCap Fund 144
INCOME-ORIENTED FUNDS
---------------------------------------------------------
Bond Fund 115
Government Securities Income Fund 135
High Yield Fund 145
Limited Term Bond Fund 147
MONEY MARKET FUND
---------------------------------------------------------
Cash Management Fund 125
SECTION D: BENEFICIARY INSTRUCTIONS
If this section is not completed, the plan administrator will assign your
designated beneficiary according to the priority established in the plan
documentation. If you are married and do not designate your spouse as your
sole primary beneficiary, your spouse must complete Section F of this
application.
SECTION E: SIGNATURE
The enrollment form must be signed exactly as your name appears in Section
A.
RETURN THE COMPLETED, SIGNED FORM TO YOUR EMPLOYER.
ENROLLMENT AND BENEFICIARY ELECTION FORM
(for Class A shares only)
A. Participant Information (please print)
________________________________________ ____-____-____ ________-____-________
First Middle Initial Last Date of Birth Social Security Number
________________________________________________________ _______-______-_______
Street Address Daytime Phone
________________________________ _____ __________-________ ____-____-________
City State Zip Code Date of Employment
____________________________________________________________ ____-____-________
Employer Rehire Date
B. Salary Deferral Agreement
Reduce my current and future compensation each pay period by: $________ or ____%
of pay (enter 0% here if you choose not to defer). This agreement applies to
amounts earned until changed by me in writing. I understand my Plan Sponsor may
need to reduce my deferral percentage when required to meet certain plan limits.
Please refer to your Summary Plan Description for additional contribution limits
and restrictions on changing your contribution amount.
C. Investment Direction (Indicate the percentage of each contribution to be
invested in the Principal Funds.):
Complete this section even if you elect not to defer.
Allocation
Fund Code Fund Name Percentages
--------- --------- -----------
___ ___ ___ _____________________________________________________ ___ ___ ___%
___ ___ ___ _____________________________________________________ ___ ___ ___%
___ ___ ___ _____________________________________________________ ___ ___ ___%
___ ___ ___ _____________________________________________________ ___ ___ ___%
___ ___ ___ _____________________________________________________ ___ ___ ___%
___ ___ ___ _____________________________________________________ ___ ___ ___%
___ ___ ___ _____________________________________________________ ___ ___ ___%
___ ___ ___ _____________________________________________________ ___ ___ ___%
1 0 0 %
___ ___ ___
D. Beneficiary Instructions
Note: Unless otherwise provided, if two or more beneficiaries are named, the
proceeds shall be paid to the named beneficiaries, or to the survivor or
survivors, in equal shares.
Check Box 1 or 2
1)___ I am not married and designate the person(s) name below to receive any
death benefits from the Plan.
2)___ I am married and designate the person(s) named to receive any death
benefits from the Plan. Note: If you married and do not name your spouse
as your sole primary beneficiary, your spouse must sign the consent in
Section F and the signature must be witnessed by a Plan Representative or
Notary Public.
PRIMARY BENEFICIARY
- --------------------------------------------------------------------------------
Name Social Security # % Date of Birth Relationship Address
- --------------------------------------------------------------------------------
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
CONTINGENT BENEFICIARY
- --------------------------------------------------------------------------------
Name Social Security # % Date of Birth Relationship Address
- --------------------------------------------------------------------------------
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
E. Signature
For Administrative Use Only
___________________________________________________ ___________________________
Participant's Signature Date ___________________________
Date Received
RETURN THE COMPLETED, SIGNED FORM TO YOUR EMPLOYER.
PLAN SPONSOR - KEEP THIS FORM WITH YOUR PERMANENT PLAN RECORDS.
F. Spousal Consent
- --------------------------------------------------------------------------------
Spousal Consent: I hereby approve of, and consent to, the beneficiary
designation elected in Section D of this form by my spouse. I understand that in
approving the designation of a beneficiary other than myself, I am waiving my
right to benefits to which I would otherwise be entitled under the Plan. I
further understand that this designation will remain in effect until a
subsequent beneficiary designation with my written consent is filed.
_______________________________________________
Spouse's Name (Please Print
_____________________________________________________________
Spouse's Signature Date
The spouse named above appeared beforfe me and signed the consent.
_____________________________________________________________
Plan Representative or Notary Public Signature Date
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Spouse Not Located: I certify that my spouse cannot be located to sign this
consent. I will notify the Plan Sponsor if my spouse is located. (It must be
established to the satisfaction of the Plan Representative that your spouse
cannot be located.)
_____________________________________________________________
Participant's Signature Date
I certify that the participant has established to my satisfaction that spousal
consent cannot be obtained because the spouse cannot be located.
_________________________________________________
Plan Representative's Name (Please Print)
_____________________________________________________________
Plan Representative's Signature Date
- -------------------------------------------------------------------------------
