SUPPLEMENT DATED MARCH 22, 1999
TO THE PRINCIPAL FUNDS' R SHARE PROSPECTUS
DATED MARCH 1, 1999
Effective March 22, 1999, the Principal Mutual Funds' R Share Prospectus is
amended by adding the following paragraphs on page 5 as
additional Notes:
Class R shares are offered only to individuals (and his/her spouse, child,
parent, grandchild and trusts primarily for their benefit) who: receive
lump sum distributions from retirement plans serviced by Principal Life
Insurance Company; or are participants in retirement plans serviced by
Principal Life Insurance Company; or own individual life or disability
insurance polices issued by Principal Life Insurance Company that do not
have an insurance agent licensed to sell such policies assigned to the
policies; or have mortgages which are serviced by Principal Life Insurance
Company; or have existing Principal Mutual Fund Class R Share accounts.
No salesperson, dealer or any other person is authorized to give
information or make representations about the Funds other than those
contained in this Prospectus. Information or representations from
unauthorized parties must not be relied upon as having been made by the
Funds or the Manager.
The Prospectus is further amended by replacing the table on the bottom of page
38 with the following:
<TABLE>
<CAPTION>
Sales Charge for
All Funds (Except Sales Charge for
Limited Term Bond Fund) Limited Term Bond Fund Dealers Allowance as
Sales Charge as % of: Sales Charge as % of: % of Offering Price
Offering Net Amount Offering Net Amount All Funds Except Limited Term
Amount invested Price Invested Price Invested Limited Term Bond Bond
<S> <C> <C> <C> <C> <C> <C>
Less than $50,000 4.75% 4.99% 1.50% 1.52% 4.00% 1.25%
$50,000 but less than $100,000 4.25% 4.44% 1.25% 1.27% 3.75% 1.00%
$100,000 but less than $250,000 3.75% 3.90% 1.00% 1.10% 3.25% 0.75%
$250,000 but less than $500,000 2.50% 2.56% 0.75% 0.76% 2.00% 0.50%
$500,000 but less than $1,000,000 1.50% 1.52% 0.50% 0.50% 1.25% 0.25%
$1,000,000 or more 0 0 0 0 0.75% 0.25%
</TABLE>
GP 41071 S-5
