Principal Investors Fund, Inc. Profile
Balanced Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Balanced Fund ("Fund") that is
included in the Fund's prospectus. The Fund's prospectus includes additional
information about the Fund, including a more detailed description of the risks
associated with investing in the Fund that you may want to consider before you
invest. You may obtain the prospectus and other information (including
Sub-Advisor composite performance information) about the Fund at no cost by
calling 1-800-547-7754. The prospectus is also available on our website at
www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks to generate a total return consisting of current income and
long-term growth of capital.
Main Investment Strategies of the Fund
The Fund seeks growth of capital and current income by investing primarily in
common stocks and corporate bonds. 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 is invested in bonds and cash.
Invista Capital Management, LLC(R) serves as the Sub-Advisor for the equity
securities portion of the Fund. It looks for companies with predictable earnings
and which, based on growth prospects, it believes are undervalued in the
marketplace. Invista buys stock with the objective of long-term capital
appreciation.
Principal Capital Income Investors, LLC serves as the Sub-Advisor for the
fixed-income securities portion of the Fund. Fixed-income securities are
purchased to generate income and for capital appreciation purposes when PCII
thinks that declining interest rates may increase market value.
Main Risks of Investing in the Fund
The value of the stocks owned by the Fund changes on a daily basis. Stock prices
reflect the activities of individual companies as well as general market and
economic conditions. In the short-term, prices can fluctuate dramatically in
response to these factors.
Fixed-income security values also change on a daily basis. 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.
Because the Fund invests in both stocks and bonds, the Fund may underperform
stock funds when stocks are in favor and may underperform bond funds when bonds
are in favor. As with all mutual funds, as the value of the Fund's assets rise
and fall, the Fund's share price changes. If the investor sells Fund shares when
their value is less than the price the investor paid for them, the investor will
lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisors to provide investment advisory
services to the Fund.
Sub-Advisors
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Principal Capital Income Investors, LLC ("PCII"), an indirect wholly-owned
subsidiary of The Principal and an affiliate of the Manager, was founded in
2000. It manages investments for institutional investors, including The
Principal. Assets under management as of ___________ were approximately $____
billion.
Portfolio Managers
(since Fund's inception)
William C. Armstrong, CFA. Mr. Armstrong leads the multi-sector/core portfolio
management group for PCII's stable value division. Mr. Armstrong has been with
the Principal Financial Group(R)since 1992. He earned his Master's degree from
the University of Iowa and his Bachelor's degree from Kearney State College. He
has earned the right to use the Chartered Financial Analyst designation.
Judith A. Vogel, CFA. Ms. Vogel is a portfolio manager for domestic core and
balanced portfolios. Ms. Vogel joined the Principal Financial Group in 1982 as a
strategist and was one of Invista's founding members in 1985. She earned her
Bachelor's degree in Business Administration from Central College. She has
earned the right to use the Chartered Financial Analyst designation.
Mary Sunderland, CFA. Ms. Sunderland manages the large-cap growth portfolios for
Invista. She joined Invista in early 2000 following a 10-year career with
Skandia Asset Management where she directed their more than $2.5 billion U.S.
Equity Large Cap Growth portfolios and U.S. Technology portfolios. Ms.
Sunderland earned her MBA from the Columbia University Graduate School of
Business and her Bachelor's degree from Northwestern University. She has earned
the right to use the Chartered Financial Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking current income
as well as long-term growth of capital.
Fund Operating Expenses
Management Fees 0.50%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.07%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $109 $340
Principal Investors Fund, Inc. Profile
Bond & Mortgage Securities Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Bond & Mortgage Securities
Fund ("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks to provide current income.
Main Investment Strategies of the Fund
The Fund invests primarily in intermediate maturity fixed-income securities with
a dollar weighted average maturity in the 3-6 years range. Under normal
circumstances, it invests at least 75% of its assets in:
o securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities;
o fixed-income securities and taxable municipal bonds, rated in the four
highest grades by a nationally recognized statistical rating organization or,
if unrated, in the opinion of the Sub-Advisor are of comparable quality; and
o mortgage-backed securities representing an interest in a pool of mortgage
loans.
The rest of the Fund's assets may be invested in:
o preferred and common stock that may be convertible (may be exchanged for a
fixed number of shares of common stock of the same issuer) or may be
non-convertible; or
o securities rated less than the four highest grades.
Under unusual market or economic conditions, the Fund may invest up to 100% of
its assets in cash and cash equivalents.
Main Risks of Investing in the Fund
The Fund may invest in fixed-income securities. When interest rates fall, the
price of such securities rise and when interest rates rise, the price declines.
In addition, the value of these securities may be affected by the credit rating
of the entity that issued the security and its maturity.
The mortgage-backed securities which the Fund may invest in are subject to
prepayment risk. When interest rates decline, significant unscheduled
prepayments may result. These prepayments must then be reinvested at lower
rates. On the other hand, during periods of rising interest rates, a reduction
in prepayments may increase the effective maturities of these securities and may
increase the volatility of the Fund.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Principal Capital Income Investors, LLC ("PCII"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 2000. It manages investments for
institutional investors, including The Principal. Assets under management as of
------------------ were approximately $---- billion.
Portfolio Managers
(since Fund's inception)
Lisa A. Stange, CFA. As Portfolio Manager for PCII, Ms. Stange manages over $3
billion in fixed-income portfolios invested in public and private corporate
bonds, mortgage-backed securities, commercial mortgage-backed securities,
asset-backed securities and commercial real estate mortgages. Ms. Stange joined
the Principal Financial Group(R) in 1989 after earning her Master's and
Bachelor's degrees in Finance from the University of Iowa. She has earned the
right to use the Chartered Financial Analyst designation.
William C. Armstrong, CFA. Mr. Armstrong leads the multi-sector/core portfolio
management group for PCIIs' stable value division. Mr. Armstrong has been with
the Principal Financial Group since 1992. He earned his Master's degree from the
University of Iowa and his Bachelor's degree from Kearney State College. He has
earned the right to use the Chartered Financial Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking
diversification by investing in a fixed-income mutual fund.
Fund Operating Expenses
Management Fees 0.55%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.12%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $114 $356
Principal Investors Fund, Inc. Profile
European Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the European Fund ("Fund") that is
included in the Fund's prospectus. The Fund's prospectus includes additional
information about the Fund, including a more detailed description of the risks
associated with investing in the Fund that you may want to consider before you
invest. You may obtain the prospectus and other information (including
Sub-Advisor composite performance information) about the Fund at no cost by
calling 1-800-547-7754. The prospectus is also available on our website at
www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in equity securities having their core business in
Europe. The Fund may also invest in other securities of such companies. Under
normal market conditions, the Fund invests at least 65% of its assets in
securities of:
o companies organized under the laws of European countries;
o companies for which the principal securities trading market is in a European
country; and
o companies, regardless of where their securities are traded, that derive 50%
or more of their total revenue from either goods or services produced or
sales made in European countries.
The global equity investment philosophy of the Sub-Advisor is to enhance
investment returns through:
o rigorous proprietary stock research which enables its analysts to understand
the:
o quality of the company;
o nature of its management;
o nature of its industry
competition; and
o business valuation - the true "business value" of the company;
o maintaining global coverage within the universe of investment choices; and
o maintaining a medium-term focus.
As a result, the Fund's portfolio reflects the opportunities presented by
mispriced companies that offer the potential for strong, long-term investment
returns with an acceptable level of investment risk.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility. 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.
Because foreign securities generally are denominated in foreign currencies, the
value of the net assets of the Fund as measured in U.S. dollars will be affected
by changes in exchange rates. In addition, the Fund's foreign investments may be
less liquid and their price more volatile than comparable investments in U.S.
securities. Settlement periods may be longer for foreign securities and
portfolio liquidity may be affected.
The Fund may invest in securities of companies with small to medium market
capitalizations. While small companies may offer greater opportunities for
capital growth than larger, more established companies, they also involve
greater risk and should be considered speculative.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
BT Funds Management (International) Limited ("BT") is a related company of BT
Funds Management Limited ("BTFM") and a member of the Principal Financial
Group(R). As of October 31, 2000, BT, together with BTFM, had approximately
$23.8 billion under management.
Portfolio Manager
(since Fund's inception)
Crispin Murray, Executive Vice President of BT, joined BT in April 1994 as an
Investment Analyst. In 1995, his role became pure European equities analysis
covering banks, telecommunication, telecommunication equipment and media. In
April 1998, he became Head of European Equities and in May 1998 became
coordinator for BTFM's Global Banking Group. His global sector responsibilities
include telecommunications and banks. Prior to joining BT, Mr. Murray worked for
Equitable Life Assurance Society in the UK as a bond & currency analyst. He
received an Honours degree in Economics & Human Geography from Reading
University in the UK.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital in European markets. Investors should 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.
Fund Operating Expenses
Management Fees 1.00%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.57%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
Example
1 Year 3 Years
Advisors Preferred Class $160 $496
Principal Investors Fund, Inc. Profile
Government Securities Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Government Securities Fund
("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks to provide current income.
Main Investment Strategies of the Fund
The Fund seeks to achieve its investment objective by investing primarily in
securities that are issued by the U.S. Government, its agencies or
instrumentalities. Additionally the Fund may invest in mortgage-backed
securities representing an interest in a pool of mortgage loans. These
securities are rated AAA by Standard & Poor's Corporation or Aaa by Moody's
Investor Services, Inc. or, if unrated, determined by the Sub-Advisor to be of
equivalent quality. The Fund may also hold cash and cash equivalents.
The basic investment philosophy of the Sub-Advisor is to seek undervalued
securities that represent good long-term investment opportunities. Securities
may be sold when they no longer represent good long-term value.
Main Risks of Investing in the Fund
U.S. Government securities do not involve the degree of credit risk associated
with investments in lower quality fixed-income securities. As a result, the
yields available from U.S. Government securities are generally lower than the
yields available from many other fixed-income securities. Fluctuations in the
value of the Fund's securities do not affect interest income on securities
already held by the Fund, but are reflected in the Fund's price per share.
Mortgage-backed securities are subject to prepayment risk. When interest rates
decline, significant unscheduled prepayments may result. These prepayments must
then be reinvested at lower rates. In addition, prepayments may cause losses on
securities purchased at a premium (dollar amount by which the price of the bond
exceeds its face value). 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. When
interest rates fall, the value of the Fund's shares rises, and when rates rise,
the value declines. As with all mutual funds, as the value of the Fund's assets
rise and fall, the Fund's share price changes. If the investor sells Fund shares
when their value is less than the price the investor paid for them, the investor
will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Principal Capital Income Investors, LLC ("PCII"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 2000. It manages investments for
institutional investors, including The Principal. Assets under management as of
__________ were approximately $____ billion.
Portfolio Managers
(since Fund's inception)
Martin J. Schafer. Mr. Schafer is a portfolio manager for PCII specializing in
the management of mortgage-backed securities utilizing an active, total return
approach. He joined the Principal Financial Group(R)in 1977. He holds a BBA in
Accounting and Finance from the University of Iowa.
Kelly R. Alexander. Ms. Alexander shares management responsibility for nine
fixed-income portfolios at PCII, with combined assets of more than $4 billion.
Before assuming her current position, she had similar responsibilities with
Invista from 1992 to 2000. She joined the Principal Financial Group in 1983 to
develop the mortgage-backed securities trading department. Her experience
includes hedging, securitization, product development and portfolio management
as well as the risk management of a $1.5 billion residential mortgage pipeline.
Investor Profile
The Fund is generally a suitable investment for investors seeking
diversification by investing in a fixed-income mutual fund.
Fund Operating Expenses
Management Fees 0.40%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 0.97%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $99 $309
Principal Investors Fund, Inc. Profile
High Quality Intermediate-Term Bond Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000 This Profile summarizes key
information about the High Quality Intermediate-Term Bond Fund ("Fund") that is
included in the Fund's prospectus. The Fund's prospectus includes additional
information about the Fund, including a more detailed description of the risks
associated with investing in the Fund that you may want to consider before you
invest. You may obtain the prospectus and other information (including
Sub-Advisor composite performance information) about the Fund at no cost by
calling 1-800-547-7754. The prospectus is also available on our website at
www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks to provide current income.
Main Investment Strategies of the Fund
The Fund invests primarily in fixed-income securities rated A or higher with a
dollar weighted average maturity in the 3-6 years range. Under normal
circumstances, it invests at least 80% of its assets in:
o securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities;
o fixed-income securities and taxable municipal bonds, rated in the three
highest grades by a nationally recognized statistical rating organization or,
if unrated, in the opinion of the Sub-Advisor are of comparable quality; and
o mortgage-backed securities representing an interest in a pool of mortgage
loans.
The rest of the Fund's assets may be invested in:
o common stock and preferred stock that may be convertible (may be exchanged
for a fixed number of shares of common stock of the same issuer) or may be
non-convertible; or
o securities rated less than the three highest grades.
Under unusual market or economic conditions, the Fund may invest up to 100% of
its assets in cash and cash equivalents.
Main Risks of Investing in the Fund
The Fund may invest in fixed-income securities. When interest rates fall, the
price of such securities rise and when interest rates rise, the price declines.
In addition, the value of these securities may be affected by the credit rating
of the entity that issued the security and its maturity.
The mortgage-backed securities in which the Fund may invest are subject to
prepayment risk. When interest rates decline, significant unscheduled
prepayments may result. These prepayments must then be reinvested at lower
rates. On the other hand, during periods of rising interest rates, a reduction
in prepayments may increase the effective maturities of these securities and may
increase the volatility of the Fund.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Principal Capital Income Investors, LLC ("PCII"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 2000. It manages investments for
institutional investors, including The Principal. Assets under management as of
___________ were approximately $____ billion.
Portfolio Managers
(since Fund's inception)
Kevin W. Croft, CFA. As a portfolio manager for PCII, Mr. Croft has direct
responsibility for $950 million invested in fixed-income portfolios. He joined
the Principal Financial Group(R) in 1988. He earned his Master's and Bachelor's
degrees from Drake University. He has earned the right to use the Chartered
Financial Analyst designation.
Martin J. Schafer. Mr. Schafer is a portfolio manager for PCII specializing in
the management of mortgage-backed securities utilizing an active, total return
approach. He joined the Principal Financial Group in 1977. He holds a BBA in
Accounting and Finance from the University of Iowa.
Investor Profile
The Fund is generally a suitable investment for investors seeking
diversification by investing in a fixed-income mutual fund.
Fund Operating Expenses
Management Fees 0.40%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 0.97%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $99 $309
Principal Investors Fund, Inc. Profile
High Quality Long-Term Bond Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the High Quality Long-Term Bond
Fund ("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks to provide current income.
Main Investment Strategies of the Fund
The Fund invests primarily in long-term fixed-income securities with a dollar
weighted average maturity greater than 6 years. Under normal circumstances, it
invests at least 75% of its assets in:
o securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities;
o fixed-income securities and taxable municipal bonds, rated in the four
highest grades by a nationally recognized statistical rating organization or,
if unrated, in the opinion of the Sub-Advisor are of comparable quality; and
o mortgage-backed securities representing an interest in a pool of mortgage
loans.
The rest of the Fund's assets may be invested in:
o common stock and preferred stock that may be convertible (may be exchanged
for a fixed number of shares of common stock of the same issuer) or may be
non-convertible; or
o securities rated less than the three highest grades.
Under unusual market or economic conditions, the Fund may invest up to 100% of
its assets in cash and cash equivalents.
Main Risks of Investing in the Fund
The Fund may invest in fixed-income securities. When interest rates fall, the
price of such securities rise and when interest rates rise, the price declines.
In addition, the value of these securities may be affected by the credit rating
of the entity that issued the security and its maturity.
The average portfolio duration of the Fund normally is greater than 6 years and
is based on the Sub-Advisor's forecast for interest rates. The longer a
security's duration, the more sensitive it is to changes in interest rates. A
Fund with a longer average portfolio duration is more sensitive to changes in
interest rates than a Fund with a shorter average portfolio duration.
The mortgage-backed securities in which the Fund may invest are subject to
prepayment risk. When interest rates decline, significant unscheduled
prepayments may result. These prepayments must then be reinvested at lower
rates. On the other hand, during periods of rising interest rates, a reduction
in prepayments may increase the effective maturities of these securities and may
increase the volatility of the Fund.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Principal Capital Income Investors, LLC ("PCII"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 2000. It manages investments for
institutional investors, including The Principal. Assets under management as of
____________ were approximately $____ billion.
Portfolio Managers
(since Fund's inception)
Kevin W. Croft, CFA. As a portfolio manager for PCII, Mr. Croft has direct
responsibility for $950 million invested in fixed-income portfolios. He joined
the Principal Financial Group(R) in 1988. He earned his Master's and Bachelor's
degrees from Drake University. He has earned the right to use the Chartered
Financial Analyst designation.
Martin J. Schafer. Mr. Schafer is a portfolio manager for PCII specializing in
the management of mortgage-backed securities utilizing an active, total return
approach. He joined the Principal Financial Group in 1977. He holds a BBA in
Accounting and Finance from the University of Iowa.
Investor Profile
The Fund is generally a suitable investment for investors seeking
diversification by investing in a fixed-income mutual fund.
Fund Operating Expenses
Management Fees 0.40%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 0.97%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $99 $309
Principal Investors Fund, Inc. Profile
High Quality Short-Term Bond Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the High Quality Short-Term Bond
Fund ("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks to provide current income.
Main Investment Strategies of the Fund
The Fund invests primarily in high quality, short-term fixed-income securities
with a dollar weighted average maturity of 4 years or less. Under normal
circumstances, it invests at least 80% of its assets in:
o securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities;
o fixed-income securities of U.S. issuers rated in the three highest grades by
a nationally recognized statistical rating organization or, if unrated, in
the opinion of the Sub-Advisor are of comparable quality; and
o mortgage-backed securities representing an interest in a pool of mortgage
loans.
The rest of the Fund's assets are invested in securities in the fourth highest
rating category or their equivalent. Securities in the fourth highest category
are "investment grade." While they are considered to have adequate capacity to
pay interest and repay principal, they do have speculative characteristics.
Changes in economic and other conditions are more likely to affect the ability
of the issuer to make principal and interest payments than is the case with
issuers of higher rated securities.
Under unusual market or economic conditions, the Fund may invest up to 100% of
its assets in cash and cash equivalents.
Main Risks of Investing in the Fund
The Fund may invest in corporate fixed-income securities. When interest rates
fall, the price of such securities rise and when interest rates rise, the price
declines. In addition, the value of these securities may be affected by the
credit rating of the entity that issued the security and its maturity.
The mortgage-backed securities in which the Fund may invest are subject to
prepayment risk. When interest rates decline, significant unscheduled
prepayments may result. These prepayments must then be reinvested at lower
rates. On the other hand, during periods of rising interest rates, a reduction
in prepayments may increase the effective maturities of these securities and may
increase the volatility of the Fund.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Principal Capital Income Investors, LLC ("PCII"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 2000. It manages investments for
institutional investors, including The Principal. Assets under management as of
____________ were approximately $____ billion.
Portfolio Managers
(since Fund's inception)
Daniel J. Garrett, CFA. Mr. Garrett is a portfolio manager for PCII. He joined
the Principal Financial Group(R)in 1985 as a commercial mortgage analyst and was
named to his current position in 1998. Mr. Garrett received his Master's degree
in Business and his Bachelor's degree in Computer Information Systems and
Finance from Drake University. He has earned the right to use the Chartered
Financial Analyst designation.
Martin J. Schafer. Mr. Schafer is a portfolio manager for PCII specializing in
the management of mortgage-backed securities utilizing an active, total return
approach. He joined the Principal Financial Group in 1977. He holds a BBA in
Accounting and Finance from the University of Iowa.
Investor Profile
The Fund is generally a suitable investment for investors seeking
diversification by investing in a fixed-income mutual fund.
Fund Operating Expenses
Management Fees 0.40%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 0.97%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $99 $309
Principal Investors Fund, Inc. Profile
International Emerging Markets Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the International Emerging Markets
Fund ("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund seeks to achieve its objective by investing in common stocks of
companies in emerging market countries. For this Fund, the term "emerging market
country" means any country which is considered to be an emerging country by the
international financial community. The Sub-Advisor focuses on those emerging
market countries that it believes have strongly developing economies and markets
which are becoming more sophisticated.
Under normal conditions, at least 65% of the Fund's assets are invested in
equity securities of the following:
o companies with their principal place of business or principal office in
emerging market countries;
o companies for which the principal securities trading market is an emerging
market country; or
o companies, regardless of where their securities are traded, that derive 50%
or more of their total revenue from either goods or services produced in
emerging market countries or sales made in emerging market countries.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility. 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.
Because foreign securities generally are denominated in foreign currencies, the
value of the net assets of the Fund as measured in U.S. dollars will be affected
by changes in exchange rates. In addition, the Fund's foreign investments may be
less liquid and their price more volatile than comparable investments in U.S.
securities. Settlement periods may be longer for foreign securities and
portfolio liquidity may be affected.
Investments in emerging market countries involve special risks. These may
include: high rates of inflation, high interest rates, exchange rate
fluctuations, large amounts of debt, balance of payments and trade difficulties,
and extreme poverty and unemployment.
The Fund may invest in securities of companies with small to medium market
capitalizations. While small companies may offer greater opportunities for
capital growth than larger, more established companies, they also involve
greater risk and should be considered speculative. The Fund anticipates that its
portfolio turnover will typically range from 200% to 300%. Turnover rates in
excess of 100% generally result in higher transaction costs and a possible
increase in short-term capital gains (or losses).
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Manager
(since Fund's inception)
Kurtis D. Spieler, CFA. Mr. Spieler is a portfolio manager specializing in the
management of international equity portfolios. He joined the Principal Financial
Group(R)in 1987 in the Treasury operation as a securities analyst and moved to
Invista in 1991. Mr. Spieler received his MBA from Drake University and his BBA
in Accounting from Iowa State University. He has earned the right to use the
Chartered Financial Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital in securities of emerging market countries. 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.
Fund Operating Expenses
Management Fees 1.35%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.92%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $195 $603
Principal Investors Fund, Inc. Profile
International Fund I
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the International Fund I ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests in a portfolio of equity securities of companies domiciled
anywhere in the world. The Fund invests in securities of:
o companies with their principal place of business or principal office outside
the U.S.;
o companies for which the principal securities trading market is outside the
U.S.; and
o companies, regardless of where their securities are traded, that derive 50%
or more of their total revenue from goods or services produced or sales made
outside the U.S.
Primary consideration is given to securities of corporations of Western Europe,
North America and Australasia (Australia, Japan and Far East Asia). Changes in
investments are made as prospects change for particular countries, industries or
companies.
The Fund has no limitation on the percentage of assets that are invested in any
one country or denominated in any one currency. However under normal market
conditions, the Fund intends to have at least 65% of its assets invested in
companies in at least three different countries.
In choosing investments for the Fund, the Sub-Advisor pays particular attention
to the long-term earnings prospects of the various companies under
consideration. The Sub-Advisor then weighs those prospects relative to the price
of the security.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility. 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.
Because foreign securities generally are denominated in foreign currencies, the
value of the net assets of the Fund as measured in U.S. dollars will be affected
by changes in exchange rates. In addition, the Fund's foreign investments may be
less liquid and their price more volatile than comparable investments in U.S.
securities. Settlement periods may be longer for foreign securities and
portfolio liquidity may be affected.
The Fund may invest in securities of companies with small to medium market
capitalizations. While small companies may offer greater opportunities for
capital growth than larger, more established companies, they also involve
greater risk and should be considered speculative.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Manager
(since Fund's inception)
Kurtis D. Spieler, CFA. Mr. Spieler is a portfolio manager specializing in the
management of international equity portfolios. He joined the Principal Financial
Group(R)in 1987 in the Treasury operation as a securities analyst and moved to
Invista in 1991. Mr. Spieler received his MBA from Drake University and his BBA
in Accounting from Iowa State University. He has earned the right to use the
Chartered Financial Analyst designation.
Fund Operating Expenses
Management Fees 0.90%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.47%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $150 $465
Principal Investors Fund, Inc. Profile
International Fund II
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the International Fund II ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests in common stocks and other securities of companies domiciled
anywhere in world. The Fund invests in securities of:
o companies with their principal place of business or principal offices outside
the U.S.;
o companies for which the principal securities trading market is outside the
U.S.; or
o companies, regardless of where its securities are traded, that derive 50% or
more of their total revenue from either goods or services produced or sales
made outside the U.S.
The Sub-Advisor selects securities for the Fund based on its own global
investment research. The research program is focused on three key criteria:
o business franchise - considering factors such as the company's relationship
with its suppliers and customers, the degree of rivalry with competitors as
well as the exposure to regulatory and technological risk;
o quality of management - assessing the company's management on its ability to
execute current business plans, manage the capital invested in the business
as well as the level of transparency with respect to strategy and operations;
and
o business valuation - determining the private market or `true business value'
of the firm.
The Sub-Advisor's qualitative analysis is complemented by disciplined valuation
techniques. These include proprietary models as well as conventional market
measurements and industry specific models of relative value. This analytical
framework ensures consistency and transparency throughout the research process.
Portfolios are constructed and managed within predetermined guidelines that are
regularly monitored by the Sub-Advisor.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility.
In addition, foreign stocks carry risks that are not 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. Foreign securities may be subject to securities regulators with less
stringent accounting and disclosure standards than are required of U.S.
companies.
Because foreign securities generally are denominated in foreign currencies, the
value of the net assets of the Fund as measured in U.S. dollars will be affected
by changes in exchange rates. In addition, the Fund's foreign investments may be
less liquid and their price more volatile than comparable investments in U.S.
securities. Settlement periods may be longer for foreign securities and
portfolio liquidity may be affected.
The Fund may invest in securities of companies with small to medium market
capitalizations. While small companies may offer greater opportunities for
capital growth than larger, more established companies, they also involve
greater risk and should be considered speculative.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
BT Funds Management (International) Limited ("BT") is a related company of BT
Funds Management Limited ("BTFM") and a member of the Principal Financial
Group(R). As of October 31, 2000, BT, together with BTFM, had approximately
$23.8 billion under management.
Portfolio Manager
(since Fund's inception)
Christopher Selth, Executive Vice President of BT, was appointed its head of
International Equities in 1998 and its joint head of Equities in 1999. He joined
BT in 1987 as an Investment Analyst in the retail unit trust group. In 1988, he
was assigned the responsibility to cover European equities. Mr. Selth was given
responsibility for the European component of all retail unit trusts in March
1994. Since November 1996, he has been responsible for institutional and retail
European investments, supervising all European activities, and the European
funds management group. Prior to joining BT, Mr. Selth worked with QBE Insurance
Limited in investment management as an assistant to the Group Treasurer. He
holds a Bachelor's degree in Economics (Honours) from the University of Sydney.
Investor Profile
The Fund is generally a suitable investment for investors seeking growth of
capital in markets outside of the U.S. Investors must be willing 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.
Fund Operating Expenses
Management Fees 1.00%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.57%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $160 $496
Principal Investors Fund, Inc. Profile
International SmallCap Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the International SmallCap Fund
("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in equity securities of non-U.S. companies with
comparatively smaller market capitalizations. Under normal market conditions,
the Fund invests at least 65% of its assets in securities of companies having
market capitalizations of $1.5 billion or less at the time of purchase.
The Fund invests in securities of:
o companies with their principal place of business or principal office outside
the U.S.;
o companies for which the principal securities trading market is outside the
U.S.; and
o companies, regardless of where their securities are traded, that derive 50%
or more of their total revenue from goods or services produced or sales made
outside the U.S.
The Sub-Advisor diversifies the Fund's 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 invest at least 65% of its assets in securities of companies of
at least three countries.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility. 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.
Because foreign securities generally are denominated in foreign currencies, the
value of the net assets of the Fund as measured in U.S. dollars will be affected
by changes in exchange rates. In addition, the Fund's foreign investments may be
less liquid and their price more volatile than comparable investments in U.S.
securities. Settlement periods may be longer for foreign securities and
portfolio liquidity may be affected.
The Fund may invest in securities of companies with small to medium market
capitalizations. While small companies may offer greater opportunities for
capital growth than larger, more established companies, they also involve
greater risk and should be considered speculative. Small to 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 securities.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Manager
(since Fund's inception)
Darren K. Sleister, CFA. Mr. Sleister is a portfolio manager specializing in the
management of international equity portfolios. Mr. Sleister joined Invista in
1993. He received his MBA in Investment and Corporate Finances from the
University of Iowa and his Bachelor's degree in Communications from Central
College. He has earned the right to use the Chartered Financial Analyst
designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital in smaller companies outside of the U.S. Investors must be
willing 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.
Fund Operating Expenses
Management Fees 1.20%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.77%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $180 $557
Principal Investors Fund, Inc. Profile
LargeCap Blend Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the LargeCap Blend Fund ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in stocks of large capitalization companies. Under
normal market conditions, the Fund invests at least 65% of its assets in
companies with a market capitalization of greater than $10 billion at the time
of purchase.
In selecting securities for investment, the Sub-Advisor looks at stocks with
value and/or growth characteristics and constructs an investment portfolio that
has a "blend" of stocks with these characteristics. In managing the assets of
the Fund, the Sub-Advisor does not have a policy of preferring one of these
categories to the other. 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.
The Sub-Advisor uses a "bottom-up" approach in its selection of individual
securities. Selection is based on fundamental analysis of a company relative to
other companies with the focus being on the Sub-Advisor's estimation of
forward-looking rates of return.
The Sub-Advisor focuses its stock selections on established companies that it
believes have a sustainable competitive advantage. It constructs a portfolio
that is "benchmark aware" in that it is sensitive to the sector (companies with
similar characteristics) and security weightings of its benchmark. However, the
Fund is actively managed and prepared to over- and/or under-weight sectors and
industries differently from the benchmark.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic treads and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
In addition, the Fund is subject to the risk that its principal market segment,
large capitalization stocks, may underperform compared to other market segments
or to the equity markets as a whole. Because certain of the securities purchased
by the Fund present greater opportunities for growth because of high potential
earning growth, they may also involve greater risk than securities that do not
have the same potential.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Manager
(since Fund's inception)
Mark T. Williams, CFA. Mr. Williams manages Invista's research department
conducting macroeconomic and quantitative research as applied to domestic and
international economic trends and forecasts. Previously, he served as a
portfolio manager with direct experience in the management of core,
value-oriented and growth-oriented portfolios. He joined Invista in 1989 with
seven years prior experience in the technology industry. Mr. Williams received
his MBA from Drake University and holds a Bachelor's degree in Finance from the
University of the State of New York. He has earned the right to use the
Chartered Financial Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors must be willing to accept the risks of investing in
common stocks, but who prefer investing in larger, established companies.
Fund Operating Expenses
Management Fees 0.45%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.02%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $104 $325
Principal Investors Fund, Inc. Profile
LargeCap Growth Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the LargeCap Growth Fund ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in common stocks and other equity securities of large
capitalization companies with strong earnings growth potential. Under normal
market conditions, the Fund invests at least 65% of its assets in companies with
a market capitalization of greater than $10 billion at the time of purchase.
The Sub-Advisor uses a "bottom-up" approach in its selection of individual
securities that it believes have an above average potential for earnings growth.
Selection is based on fundamental analysis of a company relative to other
companies with the focus being on the Sub-Advisor's estimation of current and
future sales growth and operating margins.
The Sub-Advisor places strong emphasis on companies it believes are guided by
high quality management teams with a proven ability to execute. In addition, the
Fund attempts to identify and emphasize those companies that are market leaders
possessing the ability to control pricing and margins in their respective
industries. The Sub-Advisor constructs a portfolio that is "benchmark aware" in
that it is sensitive to the sector (companies with similar characteristics) and
security weightings of its benchmark. However, the Fund is actively managed and
prepared to over- and/or under-weight sectors and industries differently from
the benchmark.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
In addition, the Fund is subject to the risk that its principal market segment,
large capitalization growth stocks, may underperform compared to other market
segments or to the equity markets as a whole. The securities purchased by the
Fund may present greater opportunities for growth because of high potential
earnings growth, but may also involve greater risk than securities that do not
have the same potential.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Manager
(since Fund's inception)
Mary Sunderland, CFA. Ms. Sunderland manages the large-cap growth portfolios for
Invista. She joined Invista in early 2000 following a 10-year career with
Skandia Asset Management where she directed their more than $2.5 billion U.S.
Equity Large Cap Growth portfolios and U.S. Technology portfolios. Ms.
Sunderland earned her MBA from the Columbia University Graduate School of
Business and her Bachelor's degree from Northwestern University. She has earned
the right to use the Chartered Financial Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors 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.
Fund Operating Expenses
Management Fees 0.55%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.12%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $114 $356
Principal Investors Fund, Inc. Profile
LargeCap S&P 500 Index Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the LargeCap S&P 500 Index Fund
("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
Under normal market conditions, the Fund invests at least 80% of its assets in
common stocks of companies that compose the Standard & Poor's 500 Index*. The
Sub-Advisor attempts to mirror the investment performance of the index by
allocating the Fund's assets in approximately the same weightings as the S&P
500. The S&P 500 is an unmanaged index of 500 common stocks chosen to reflect
the industries of the U.S. economy and is often considered a proxy for the stock
market in general.
The Fund uses an indexing strategy and is not managed according to traditional
methods of "active" investment management. It does not attempt to manage market
volatility, use defensive strategies or reduce the effect of any long-term
periods of poor stock performance. The correlation between Fund and index
performance may be affected by the Fund's expenses, changes in securities
markets, changes in the composition of the index and the timing of purchases and
sales of Fund shares.
Main Risks of Investing in the Fund
Because of the difficulty and expense of executing relatively small stock
trades, the Fund may not always be invested in the less heavily weighted S&P 500
stocks. The Fund's portfolio may be weighted differently from the index
particularly if the Fund has a small level of assets to invest. In addition, the
Fund's ability to match the performance of the index is affected to some degree
by the size and timing of cash flows into and out of the Fund. The Fund is
managed to attempt to minimize such effects.
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
In addition, the Fund is subject to the risk that its principal market segment,
large capitalization stocks, may underperform compared to other market segments
or to the equity markets as a whole. The securities purchased by the Fund may
present greater opportunities for growth because of high potential earnings
growth, but may also involve greater risk than securities that do not have the
same potential.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Managers
(since Fund's inception)
Robert Baur, Ph.D. Dr. Baur joined Invista in 1995 after serving as a professor
of finance and economics at Drake University and Grand View College. He received
his Bachelor's degree in Mathematics and his Ph.D. in Economics from Iowa State
University. Dr. Baur also did post-doctoral study in finance and economics at
the University of Minnesota. He also holds a BS in Mathematics from Iowa State
University.
Rhonda VanderBeek. Ms. Vander Beek directs trading operations for Invista index
accounts. She joined the Principal Financial Group(R)in 1983 as a trading
statistical clerk and moved to Invista in 1992. Ms. Vander Beek has extensive
experience trading both domestic and international securities.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors must be willing to accept the potential for
volatile fluctuations in the value of investments and prefer a passive rather
than active management style.
* Standard & Poor's Corporation is not affiliated with the LargeCap S&P 500
Index Fund, Invista or The Principal.
Fund Operating Expenses
Management Fees 0.15%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 0.72%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $74 $230
Principal Investors Fund, Inc. Profile
LargeCap Value Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the LargeCap Value Fund ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in common stocks and other equity securities of large
capitalization companies. Under normal market conditions, the Fund invests at
least 65% of its assets in companies with a market capitalization of greater
than $10 billion at the time of purchase.
The Fund invests in stocks that, in the opinion of the Sub-Advisor are
undervalued in the marketplace at the time of purchase. This value orientation
emphasizes buying stocks at less than their investment value and avoiding stocks
whose price has been artificially built up. Value stocks are often characterized
by below average price/earning ratios (P/E) and above average dividend yields
relative to their peers. The Fund's investments are selected primarily on the
basis of fundamental security analysis focusing on the company's financial
stability, sales, earnings, dividend trends, return on equity and industry
trends.
The Sub-Advisor focuses its stock selections on established companies that it
believes have a sustainable competitive advantage. It constructs a portfolio
that is "benchmark aware" in that it is sensitive to the sector (companies with
similar characteristics) and security weightings of its benchmark. However, the
Fund is actively managed and prepared to over- and/or under-weight sectors and
industries differently from the benchmark.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
In addition, the Fund is subject to the risk that its principal market segment,
large capitalization value stocks, may underperform compared to other market
segments or to the equity markets as a whole. As with all mutual funds, as the
value of the Fund's assets rise and fall, the Fund's share price changes. If the
investor sells Fund shares when their value is less than the price the investor
paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Manager
(since Fund's inception)
John Pihlblad, CFA. Mr. Pihlblad is director of quantitative portfolio
management for Invista. He has over 24 years experience in creating and managing
quantitative investment systems. Prior to joining Invista in 2000, Mr. Pihlblad
was a partner and co-founder of GlobeFlex Capital in San Diego where he was
responsible for the development and implementation of the investment process for
both domestic and international products. He received his BA from Westminster
College. He has earned the right to use the Chartered Financial Analyst
designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors must be willing to accept the risks of investing in
common stocks, but who prefer investing in companies that appear to be
considered undervalued relative to similar companies.
Fund Operating Expenses
Management Fees 0.45%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.02%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $104 $325
Principal Investors Fund, Inc. Profile
MidCap Blend Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the MidCap Blend Fund ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in common stocks and other equity securities of
medium capitalization companies. Under normal market conditions, the Fund
invests at least 65% of its assets in companies with a market capitalization
between $1 billion and $10 billion at the time of purchase.
In selecting securities for investment, the Sub-Advisor looks at stocks with
value and/or growth characteristics and constructs an investment portfolio that
has a "blend" of stocks with these characteristics. In managing the assets of
the Fund, the Sub-Advisor does not have a policy of preferring one of these
categories to the other. The value orientation emphasizes buying stocks at less
than their inherent 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.
The Sub-Advisor uses a bottom-up approach in its selection of individual
securities. Selection is based on fundamental analysis of a company relative to
other companies with the focus being on the Sub-Advisor's estimation of
forward-looking rates of return.
The Sub-Advisor focuses its stock selection on companies it believes have
sustainable competitive advantages and constructs a portfolio that is "benchmark
aware" in that it is sensitive to the sector (companies with similar
characteristics) and security weightings of its benchmark. However, the Fund is
actively managed and prepared to over- and/or under-weight sectors and
industries differently from the benchmark.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility, which is the principal risk of investing in the Fund.
The medium capitalization companies the Fund invests in may be more vulnerable
to adverse business or economic events than larger, more established companies.
In particular, these mid-size companies may pose greater risk due to narrow
product lines, limited financial resources, less depth in management or a
limited trading market for their securities.
In addition, the Fund is subject to the risk that its principal market segment,
medium capitalization stocks, may underperform compared to other market segments
or to the equity markets as a whole. Because different types of stocks tend to
shift in and out of favor depending on market and economic conditions, the
Fund's performance may sometimes be lower or higher than that of other types of
funds. The value of the Fund's equity securities may fluctuate on a daily basis.
If the investor sells Fund shares when their value is less than the price the
investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Manager
(since Fund's inception)
K. William Nolin, CFA. Mr. Nolin has managed the domestic mid-cap products since
1999. His expertise is grounded in the telecommunications, media &
entertainment, lodging and consumer non-durables sectors. Mr. Nolin joined the
Principal Financial Group(R)in 1993 as an investment credit analyst. He earned
his MBA from the Yale School of Management and his Bachelor's degree in Finance
from the University of Iowa. He has earned the right to use the Chartered
Financial Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors must be willing to accept the potential for
short-term fluctuations in the value of investments.
Fund Operating Expenses
Management Fees 0.65%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.22%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $124 $387
Principal Investors Fund, Inc. Profile
MidCap Growth Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the MidCap Growth Fund ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in common stocks of medium capitalization companies
with strong earnings growth potential. Under normal market conditions, the Fund
invests at least 65% of its assets in companies with a market capitalization
between $1 billion and $10 billion at the time of purchase.
The Sub-Advisor, uses a bottom-up approach in its selection of individual
securities that it believes have an above average potential for earnings growth.
Selection is based on fundamental analysis of a company relative to other
companies with the focus being on the Sub-Advisor's assessment of current and
future sales growth and operating margins.
The Sub-Advisor focuses its stock selection on companies it believes have
sustainable competitive advantages and reasonable stock prices. It then
constructs a portfolio that is "benchmark aware" in that it is sensitive to the
sector (companies with similar characteristics) and security weightings of its
benchmark. However, the Fund is actively managed and prepared to over- and/or
under-weight sectors and industries differently from the benchmark.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility, which is the principal risk of investing in the Fund.
The medium capitalization companies the Fund invests in may be more vulnerable
to adverse business or economic events than larger, more established companies.
In particular, these mid-size companies may pose greater risk due to narrow
product lines, limited financial resources, less depth in management or a
limited trading market for their securities.
In addition, the Fund is subject to the risk that its principal market segment,
medium capitalization growth stocks, may underperform compared to the equity
markets as a whole. The securities purchased by the Fund present greater
opportunities for growth because of high potential earnings growth, but may also
involve greater risks than securities that do not have the same potential. The
value of the Fund's equity securities may fluctuate on a daily basis. As with
all mutual funds, as the value of the Fund's assets rise and fall, the Fund's
share price changes. If the investor sells Fund shares when their value is less
than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Manager
(since Fund's inception)
John F. McClain. Mr. McClain is a portfolio manager for small company and medium
company growth products. He joined Invista in 1990. Previously, he was an
investment executive with Paine Webber. He earned an MBA from Indiana University
and a BBA in Economics from the University of Iowa.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors 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.
Fund Operating Expenses
Management Fees 0.65%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.22%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $124 $387
Principal Investors Fund, Inc. Profile
MidCap S&P 400 Index Fund
Advisors Preferred Class Shares
he date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the MidCap S&P 400 Index Fund
("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
Under normal market conditions, the Fund invests at least 80% of its assets in
common stocks of companies that compose the Standard & Poor's MidCap 400 Index*.
The Sub-Advisor attempts to mirror the investment performance of the index by
allocating the Fund's assets in approximately the same weightings as the S&P
400. The S&P 400 is an unmanaged index of 400 common stocks of medium sized U.S.
(and some Canadian) companies.
The Fund uses an indexing strategy and is not managed according to traditional
methods of "active" investment management. It does not attempt to manage market
volatility, use defensive strategies or reduce the effect of any long-term
periods of poor stock performance. The correlation between Fund and index
performance may be affected by the Fund's expenses, changes in securities
markets, changes in the composition of the index and the timing of purchases and
sales of Fund shares.
Main Risks of Investing in the Fund
Because of the difficulty and expense of executing relatively small stock
trades, the Fund may not always be invested in the less heavily weighted S&P 400
stocks. The Fund's portfolio may be weighted differently from the index
particularly if the Fund has a small level of assets to invest. In addition, the
Fund's ability to match the performance of the index is affected to some degree
by the size and timing of cash flows into and out of the Fund. The Fund is
managed to attempt to minimize such effects.
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
The medium capitalization companies the Fund invests in may be more vulnerable
to adverse business or economic events than larger, more established companies.
In particular, these 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 securities.
In addition, the Fund is subject to the risk that its principal market segment,
medium capitalization stocks, may underperform compared to other market segments
or to the equity markets as a whole. Because different types of stocks tend to
shift in and out of favor depending on market and economic conditions, the
Fund's performance may be lower or higher than that of other types of funds.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Managers
(since Fund's inception)
Robert Baur, Ph.D. Dr. Baur joined Invista in 1995 after serving as a professor
of finance and economics at Drake University and Grand View College. He received
his Bachelor's degree in Mathematics and his Ph.D. in Economics from Iowa State
University. Dr. Baur also did post-doctoral study in finance and economics at
the University of Minnesota. He also holds a BS in Mathematics from Iowa State
University.
Rhonda VanderBeek. Ms. Vander Beek directs trading operations for Invista index
accounts. She joined the Principal Financial Group(R)in 1983 as a trading
statistical clerk and moved to Invista in 1992. Ms. Vander Beek has extensive
experience trading both domestic and international securities.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors must be willing to accept the potential for
volatile fluctuations in the value of investments and preferring a passive
rather than active management style.
* Standard & Poor's Corporation is not affiliated with the MidCap S&P 400 Index
Fund, Invista or The Principal.
Fund Operating Expenses
Management Fees 0.15%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 0.72%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $74 $230
Principal Investors Fund, Inc. Profile
MidCap Value Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the MidCap Value Fund ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in common stocks of medium capitalization companies.
Under normal market conditions, the Fund invests at least 65% of its assets in
companies with a market capitalization between $1 billion and $10 billion at the
time of purchase.
The Fund invests in stocks that, in the opinion of the Sub-Advisor, are
undervalued in the marketplace at the time of purchase. This value orientation
emphasizes buying stocks at less than their inherent value and avoiding stocks
whose price has been artificially built up. Value stocks are often characterized
by below average price/earnings ratios (P/E) and above average dividend yields.
The Fund's investments are selected primarily on the basis of fundamental
security analysis, focusing on the company's financial stability, sales,
earnings, dividend trends, return on equity and industry trends.
The Sub-Advisor focuses its stock selection on companies it believes have
sustainable competitive advantages and constructs a portfolio that is "benchmark
aware" in that it is sensitive to the sector (companies with similar
characteristics) and security weightings of its benchmark. However, the Fund is
actively managed and prepared to over- and/or under-weight sectors and
industries differently from the benchmark.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility, which is the principal risk of investing in the Fund.
The medium capitalization companies the Fund invests in may be more vulnerable
to adverse business or economic events than larger, more established companies.
In particular, these mid-size companies may pose greater risk due to narrow
product lines, limited financial resources, less depth in management or a
limited trading market for their securities.
In addition, the Fund is subject to the risk that its principal market segment,
medium capitalization value stocks, may underperform compared to other market
segments or to the equity markets as a whole. Because different types of stocks
tend to shift in and out of favor depending on market and economic conditions,
the Fund's performance may sometimes be lower or higher than that of other types
of funds. The value of the Fund's equity securities may fluctuate on a daily
basis. If the investor sells Fund shares when their value is less than the price
the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Manager
(since Fund's inception)
Catherine A. Zaharis, CFA. Ms. Zaharis directs portfolio management for the
Invista value team and leads the value research group. She joined Invista in
1985. Ms. Zaharis received her MBA from Drake University and her BBA in Finance
from the University of Iowa. She has earned the right to use the Chartered
Financial Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors must be willing to accept the potential for
short-term fluctuations in the value of investments.
Management Fees 0.65%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.22%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $124 $387
Principal Investors Fund, Inc. Profile
Money Market Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Money Market Fund ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks as high a level of current income as is considered consistent
with preservation of principal and maintenance of liquidity.
Main Investment Strategies of the Fund
The Fund invests its assets in a portfolio of high quality, short-term money
market instruments. In the opinion of the Sub-Advisor, the securities selected
present minimal credit risks. Securities in which the Fund invests include: o
securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities; o bank obligations; o commercial paper; and o corporate debt
which at the time of purchase by the Fund has 397 days or less remaining until
maturity.
Main Risks of Investing in the Fund
As with all mutual funds, the value of the Fund's assets may rise or fall.
Although the Fund seeks to preserve the value of an investment at $1.00 per
share, it is possible to lose money by investing in the Fund. If the investor
sells Fund shares when their value is less than the price the investor paid for
them, the investor will lose money. An investment in the Fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Principal Capital Income Investors, LLC ("PCII"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 2000. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $_____ billion.
Portfolio Managers
(since Fund's inception)
Alice Robertson. Ms. Roberston is a trader for PCII on the corporate
fixed-income trading desk. She joined the Principal Financial Group(R)in 1990 as
a credit analyst and moved to her current position in 1993. Previously, Ms.
Robertson was an assistant vice president/commercial paper analyst with Duff &
Phelps Credit Company. Ms. Robertson earned her Master's degree in Finance and
Marketing from DePaul University and her Bachelor's degree in Economics from
Northwestern University.
Michael R. Johnson. Mr. Johnson directs securities trading for PCII. He joined
the Principal Financial Group in 1982 and took his current position in 1994. His
responsibilities include managing the fixed-income trading operation for PCII
and several short-term money market accounts. He earned his Bachelor's degree in
Finance from Iowa State University.
Investor Profile
The Fund is generally a suitable investment for investors seeking monthly
dividends without incurring much principal risk.
Fund Operating Expenses
Management Fees 0.40%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 0.97%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $99 $309
Principal Investors Fund, Inc. Profile
Pacific Basin Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Pacific Basin Fund ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in equity securities of issuers located in the
Pacific Basin region, including Japan. The Fund invests in securities listed on
foreign or domestic securities exchanges, securities traded in foreign or
domestic over-the-counter markets and depositary receipts. Under normal market
conditions, the Fund invests at least 65% of its assets in such securities. The
Fund's investments are generally diversified among securities of issuers of
several Pacific Basin countries. These include securities of:
o companies organized under the laws of Pacific Basin countries;
o companies for which the principal securities trading market is in a Pacific
Basin country; and
o companies, regardless of where their securities are traded, that derive 50%
or more of their total revenue from either goods or services produced or
sales made in Pacific Basin countries.
The global equity investment philosophy of the Sub-Advisor is to enhance
investment returns through:
o rigorous proprietary stock research which enables their analysts to
understand the:
o quality of the company;
o nature of its management;
o nature of its industry
competition; and
o business valuation - the true "business value" of the company;
o maintaining global coverage within the universe of investment choices; and
o maintaining a medium-term focus.
As a result, the Fund's portfolio reflects the opportunities presented by
mispriced companies that offer the potential for strong, long-term investment
returns with an acceptable level of investment risk.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility. 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.
To the extent that the assets of the Fund are concentrated in securities of
issuers in Japan, the value of the shares of the Fund may be more susceptible to
a single economic, political or regulatory occurrence than shares of a Fund less
concentrated in a single country.
Because foreign securities generally are denominated in foreign currencies, the
value of the net assets of the Fund as measured in U.S. dollars will be affected
by changes in exchange rates. In addition, the Fund's foreign investments may be
less liquid and their price more volatile than comparable investments in U.S.
securities. Settlement periods may be longer for foreign securities and
portfolio liquidity may be affected.
The Fund may invest in securities of companies with small to medium market
capitalizations. While small companies may offer greater opportunities for
capital growth than larger, more established companies, they also involve
greater risk and should be considered speculative.
The Fund anticipates that its portfolio turnover will typically range from 200%
to 300%. Turnover rates in excess of 100% generally result in higher transaction
costs and a possible increase in short-term capital gains (or losses).
As with all mutual funds, as the Fund's assets rise and fall, the Fund's share
price changes. If the investor sells Fund shares when their value is less than
the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
BT Funds Management (International) Limited ("BT") is a related company of BT
Funds Management Limited ("BTFM") and a member of the Principal Financial
Group(R). As of October 31, 2000, BT, together with BTFM, had approximately
$23.8 billion under management.
Portfolio Manager
(since Fund's inception)
Dean Cashman is Executive Vice President of BT and serves as head of Japanese
equities. He joined BT in January 1988, initially involved in the liquids and
fixed interest group, but moved to the European equity group in late 1989
specializing in the Latin Block countries including France, Italy and Spain. He
started working on Japanese equities at the end of 1991 and subsequently took
over responsibility for the group. Mr. Cashman received a degree in Economics
from the University of Queensland.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital in Pacific Basin markets. Investors must be willing 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.
Fund Operating Expenses
Management Fees 1.00%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.57%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $160 $496
Principal Investors Fund, Inc. Profile
Partners LargeCap Blend Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Partners LargeCap Blend Fund
("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund pursues its investment objective by investing primarily in equity
securities of companies that the Sub-Advisor believes offer superior growth
prospects or whose stock is undervalued. Under normal market conditions, the
Fund invests at least 65% of its assets in companies with large market
capitalizations.
In selecting securities for investment, the Sub-Advisor looks at stocks with
value and/or growth characteristics and constructs an investment portfolio that
has a "blend" of stocks with these characteristics. The value orientation
emphasizes buying stocks at less than their intrinsic investment value and
avoiding stocks whose price has been unjustifiably built up. The growth
orientation emphasizes buying stocks of companies whose potential for growth of
capital and earnings is expected to be above average.
Using its own quantitative process, the Sub-Advisor rates the future performance
potential of companies and evaluates each company's earnings quality in light of
its current valuation to narrow the list of attractive companies. It then
evaluates product positioning, management quality and sustainability of current
growth trends of those companies. Using this type of fundamental analysis, it
selects the most promising companies for the Fund's portfolio.
The Fund actively trades its portfolio securities in an attempt to achieve its
investment objective. Active trading will cause the Fund to have an increased
portfolio turnover rate, which is likely to generate short-term gains (losses)
for its shareholders, which are taxed at a higher rate than long-term gains
(losses). Actively trading portfolio securities increases the Fund's trading
costs and may have an adverse impact on the Fund's performance.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
The Fund is also subject to sector risk which is the possibility that a certain
sector may underperform other sectors or the market as a whole. As the
Sub-Advisor allocates more of the Fund's portfolio holdings to a particular
sector, the Fund's performance will be more susceptible to any economic,
business or other developments that generally affect that sector.
In addition, the Fund is subject to the risk that its principal market segment,
large capitalization stocks, may underperform compared to other market segments
or to the equity markets as a whole. The value of the Fund's equity securities
may fluctuate on a daily basis. As with all mutual funds, as the value of the
Fund's assets rise and fall, the Fund's share price changes. If the investor
sells Fund shares when their value is less than the price the investor paid for
them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Federated Investment Management Company ("Federated") is a registered investment
adviser and a wholly-owned subsidiary of Federated Investors, Inc., which was
founded in 1955. As of October 31, 2000, Federated managed $131 billion in
assets.
Portfolio Managers
(since Fund's inception)
James E. Grefenstette, CFA. Mr. Grefenstette joined Federated in 1992 and has
been a Portfolio Manager and a Vice President of Federated Investment Management
Company since 1996. From 1994 until 1996, Mr. Grefenstette was a Portfolio
Manager and an Assistant Vice President of Federated Investment Management
Company. Mr. Grefenstette received his MS in Industrial Administration from
Carnegie Mellon University. He has earned the right to use the Chartered
Financial Analyst designation.
J. Thomas Madden, CFA. Mr. Madden joined Federated as a Senior Portfolio Manager
in 1977 and has been an Executive Vice President of Federated Investment
Management Company since 1994. Mr. Madden served as a Senior Vice President of
Federated Investment Management Company from 1989 to 1993. Mr. Madden received
his MBA with a concentration in Finance from the University of Virginia. He has
earned the right to use the Chartered Financial Analyst designation.
Bernard J. Picchi, CFA. Mr. Picchi joined Federated in 1999 as a Senior Vice
President/Director of U.S. Equity Research for Federated Investment Management
Company. From 1994 to 1999, Mr. Picchi was a Managing Director of Lehman
Brothers where he initially served as head of the energy sector group. During
1995 and most of 1996, he served as U.S. Director of Stock Research and in
September 1996, he was named Growth Stock Strategist. Mr. Picchi holds a BS in
foreign service from Georgetown University. He has earned the right to use the
Chartered Financial Analyst designation.
David P. Gilmore. Mr. Gilmore joined Federated in August 1997 as an Investment
Analyst. He was promoted to Senior Investment Analyst in July 1999 and became an
Assistant Vice President of Federated in July 2000. Mr. Gilmore was a Senior
Associate with Coopers & Lybrand from January 1992 to May 1995. He earned his
M.B.A. from the University of Virginia and has a B.S. from Liberty University.
He has earned the right to use the Chartered Financial Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors must be willing to accept the risks of investing in
common stocks, but who prefer investing in larger, established companies.
Fund Operating Expenses
Management Fees 0.75%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.32%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $134 $418
Principal Investors Fund, Inc. Profile
Partners LargeCap Growth Fund I
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Partners LargeCap Growth Fund
I ("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in stocks of large capitalization companies that
exhibit strong or accelerating earnings growth. These companies are generally
characterized as "growth" companies. The Sub-Advisor emphasizes individual
security selection and may focus the Fund's holdings within the limits
permissible for a diversified fund.
The Sub-Advisor follows a flexible investment program in looking for companies
with above average capital appreciation potential. The Sub-Advisor focuses on
companies with consistent or rising earnings growth records and compelling
business strategies. It continually and rigorously studies company developments
and closely monitors analysts' expectations to identify issuers that have the
potential for positive earnings surprises versus consensus expectations.
Valuation is of secondary importance and is viewed in the context of prospects
for sustainable earnings growth and the potential for positive earnings
surprises in relation to consensus expectations.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
In addition, the Fund is subject to the risk that its principal market segment,
large capitalization growth stocks, may underperform compared to other market
segments or to the equity markets as a whole. The securities purchased by the
Fund may present greater opportunities for growth because of high potential
earnings growth, but may also involve greater risk than securities that do not
have the same potential.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Morgan Stanley Asset Management ("Morgan Stanley"), with principal offices at
1221 Avenue of the Americas, New York, NY 10020, provides a broad range of
portfolio management services to customers in the U.S. and abroad. As of
September 30, 2000, Morgan Stanley, together with its affiliated institutional
asset management companies, managed investments totaling approximately $176.8
billion as named fiduciary or fiduciary adviser.
Portfolio Managers
(since Fund's inception)
William S. Auslander, Principal of Morgan Stanley & Co. Incorporated and Morgan
Stanley Dean Witter Investment Management Inc. Mr. Auslander joined Morgan
Stanley in 1995 as an Equity Analyst and currently is a Portfolio Manager in
Morgan Stanley's Institutional Equity Group. Prior thereto, he was an Equity
Analyst at Icahn & Co., 1986-1995. He holds a BA in Economics from the
University of Wisconsin and an MBA from Columbia University.
Philip W. Friedman, Managing Director of Morgan Stanley & Co. Incorporated and
Morgan Stanley Dean Witter Investment Management Inc. He was a member of Morgan
Stanley & Co. Incorporated's Equity Research team (1990-1995) before becoming
Director of North America Research (1995-1997). Currently Mr. Friedman is head
of Morgan Stanley's Institutional Equity Group. He holds a BA from Rutgers
University and an MBA from the J.L. Kellogg School of Management at Northwestern
University.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors 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.
Fund Operating Expenses
Management Fees 0.75%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.32%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $134 $418
Principal Investors Fund, Inc. Profile
Partners LargeCap Growth Fund II
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Partners LargeCap Growth Fund
II ("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in stocks of large capitalization companies. The
Sub-Advisor selects stocks for investment that it believes will increase in
value over time using a growth investment strategy it developed. This strategy
looks for companies whose earnings and revenues are not only growing, but
growing at a successively faster, or accelerating, pace. Accelerating growth is
shown, for example, by growth that is faster this quarter than last or faster
this year than the year before. The Sub-Advisor's strategy is based on the
premise that, over the long-term, the stocks of companies with accelerating
earnings and revenues have a greater than average chance to increase in value.
Using its extensive computer database, the Sub-Advisor tracks financial
information for thousands of companies. This information is used to help it
select or decide to continue to hold the stocks of companies it believes will be
able to sustain accelerating growth and to sell stocks of companies whose growth
begins to slow down.
Under normal market conditions, the Sub-Advisor intends to keep the Fund
essentially fully invested in stocks regardless of the movement of stock prices
generally. When it considers it prudent, it may invest Fund assets in
nonleveraged futures and options. Nonleveraged means that the Fund may not
invest in futures and options where it would be possible to lose more than the
Fund invests. Futures and options can help the Fund's cash assets remain liquid
while performing more like stocks.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
In addition, the Fund is subject to the risk that its principal market segment,
large capitalization growth stocks, may underperform compared to other market
segments or to the equity markets as a whole. The securities purchased by the
Fund may present greater opportunities for growth because of high potential
earning growth, but may also involve greater risk than securities that do not
have the same potential.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
American Century Investment Management, Inc. ("American Century") was founded in
1958. Its office is located in the American Century Tower at 4500 Main Street,
Kansas City, KS 64111. As of October 31, 2000, American Century managed over
$109.7 billion in assets.
Portfolio Managers
(since Fund's inception)
Gregory Woodhams, CFA. Mr. Woodhams is a Vice President and Portfolio Manager
for American Century Investments, Mr. Woodhams has worked in the financial
industry since 1992 and joined American Century in 1997. Previously, he was Vice
President and Director of Equity Research at Texas Commerce Bank. Mr. Woodhams
holds a Bachelor's Degree in Economics from Rice University and a Master's
Degree in Economics from the University of Wisconsin at Madison. He has earned
the right to use the Chartered Financial Analyst designation.
C. Kim Goodwin. Ms. Goodwin was named co-chief investment officer for American
Century's domestic growth equity discipline in 2000. Previously she was senior
vice president and senior portfolio manager and has been a member of the team
that manages Growth since joining American Century in 1997. Before joining
American Century, she served as senior vice president and portfolio manager at
Putnam Investments from 1996 to 1997, and vice president and portfolio manager
at Prudential Investments from 1993 to 1996. Ms. Goodwin holds a Bachelor of
Arts Degree from Princeton University, an MBA in finance and a Master's Degree
in public affairs from the University of Texas.
Prescott LeGard, CFA. Mr. LeGard is a Portfolio Manager for American Century
Investments. Mr. LeGard joined the company in 1999. Before joining the company,
he was an Equity Analyst for USAA Investment Management where he analyzed
technology companies. He has worked in the investment industry since 1993. Mr.
LeGard holds a BA Degree in Economics from DePaul University. He has earned the
right to use the Chartered Financial Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors 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.
Fund Operating Expenses
Management Fees 1.00%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.57%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $160 $496
Principal Investors Fund, Inc. Profile
Partners LargeCap Value Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Partners LargeCap Value Fund
("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in undervalued equity securities of companies among
the 750 largest by market capitalization that the Sub-Advisor, believes offer
above-average potential for growth in future earnings. Under normal market
conditions, the Fund generally invests at least 65% of its assets in companies
with a market capitalization of greater than $10 billion at the time of
purchase.
The Sub-Advisor employs an investment strategy, generally described as "value"
investing, that involves seeking securities that:
o exhibit low financial ratios (particularly stock price-to-book value, but
also stock price-to-earnings and stock price-to-cash flow);
o can be acquired for less than what the Sub-Advisor believes is the issuer's
intrinsic value; or
o appear attractive on a dividend discount model.
Value oriented investing entails a strong "sell discipline" in that it generally
requires the sale of securities that have reached their intrinsic value or a
target financial ratio. Value oriented investments may include securities of
companies in cyclical industries during periods when such securities appear to
the Sub-Advisor to have strong potential for capital appreciation or securities
of "special situation" companies. A special situation company is one that the
Sub-Advisor believes has potential for significant future earnings growth but
has not performed well in the recent past. These situations include companies
with management changes, corporate or asset restructuring or significantly
undervalued assets. For the Sub-Advisor, identifying special situation companies
and establishing an issuer's intrinsic value involves fundamental research about
such companies and issuers.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility, which is the principal risk of investing in the Fund.
In addition, the Fund is subject to the risk that its principal market segment,
large capitalization value stocks, may underperform compared to other market
segments or to the equity markets as a whole. The value of the Fund's securities
may fluctuate on a daily basis. As with all mutual funds, as the value of the
Fund's assets rise and fall, the Fund's share price changes. If the investor
sells Fund shares when their value is less than the price the investor paid for
them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Alliance Capital Management L.P. ("Alliance") through its Bernstein Investment
Research and Management unit ("Bernstein"). As of __________, Alliance managed
$____ billion in assets.
Portfolio Managers
(since Fund's inception)
Marilyn G. Fedak. Ms. Fedak, Chief Investment Officer of U.S. Value Equities and
Chairman of the U.S. Equity Investment Policy Group of the Bernstein Investment
Research and Management unit of Alliance Capital Management L.P. ("Alliance")
since October 2, 2000 and prior to that at Sanford C. Bernstein & Co., Inc.
("SCB Inc.") since 1993. She joined SCB Inc. in 1984 and has managed portfolio
investments since 1976. She has a BA from Smith College and an MBA from Harvard
Business School.
Steven Pisarkiewicz. Mr. Pisarkiewicz has been with Alliance since October 2,
2000 and prior to that with SCB Inc. since 1989 and has been Senior Portfolio
Manager since 1997. He holds a BS from the University of Missouri and an MBA
from the University of California at Berkeley.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors must be willing to accept the risks of investing in
common stocks but prefer investing in companies that appear to be considered
undervalued relative to similar companies.
Fund Operating Expenses
Management Fees 0.80%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.37%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $139 $434
Principal Investors Fund, Inc. Profile
Partners MidCap Growth Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Partners MidCap Growth Fund
("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in common stocks and other equity securities of U.S.
companies with strong earnings growth potential. Under normal market conditions,
the Fund invests at least 65% of its assets in companies with market
capitalizations between $1 billion and $10 billion at the time of purchase.
The Fund invests in securities of companies that are diversified across economic
sectors. It attempts to maintain sector concentrations that approximate those of
its current benchmark, the Russell MidCap Growth Index. The Fund is not an index
fund and does not limit its investment to the securities of issuers in the
Russell MidCap Growth Index.
The Sub-Advisor selects stocks that it believes have strong earnings growth
potential. It invests in companies with strong earnings dynamics, and sells
those with deteriorating earnings prospects. The Sub-Advisor believes forecasts
for market timing and sector rotation are unreliable and introduce an
unacceptable level of risk. As a result, under normal market conditions the Fund
is fully invested.
Due to its investment strategy, the Fund may buy and sell securities frequently.
This may result in higher taxable distributions and lower performance due to
increased brokerage costs.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility, which is the principal risk of investing in the Fund.
The medium capitalization companies the Fund invests in may be more vulnerable
to adverse business or economic events than larger, more established companies.
In particular, these mid-size companies may pose greater risk due to narrow
product lines, limited financial resources, less depth in management or a
limited trading market for their securities.
In addition, the Fund is subject to the risk that its principal market segment,
medium capitalization growth stocks, may underperform compared to the equity
markets as a whole. The securities purchased by the Fund may present greater
opportunities for growth because of high potential earnings growth, but may also
involve greater risks than securities that do not have the same potential. The
value of the Fund's equity securities may fluctuate on a daily basis. As with
all mutual funds, as the value of the Fund's assets rise and fall, the Fund's
share price changes. If the investor sells Fund shares when their value is less
than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Turner Investment Partners, Inc. ("Turner") was founded in 1990. As of October
31, 2000, Turner had discretionary management authority with respect to
approximately $11.7 billion in assets.
Portfolio Managers
(since Fund's inception)
Robert E. Turner, CFA. Mr. Turner, Chairman and Chief Investment Officer,
founded Turner Investment Partners, Inc. in 1990. Prior to 1990, he was Senior
Investment Manager with Meridian Investment Company. He has 17 years of
investment experience. He has earned the right to use the Chartered Financial
Analyst designation.
Christopher K. McHugh. Mr. McHugh joined Turner Investment Partners, Inc. in
1990. He holds a BS in Accounting from Philadelphia College of Textiles and
Science and an MBA in Finance from St. Joseph's University.
William C. McVail. Mr. McVail, Senior Equity Portfolio Manager, joined Turner in
1998. Prior thereto, he was Portfolio Manager at PNC Equity Advisers. He has 12
years of investment experience.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors 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.
Fund Operating Expenses
Management Fees 1.00%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.57%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $160 $496
Principal Investors Fund, Inc. Profile
Partners MidCap Value Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Partners MidCap Value Fund
("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in common stocks of medium capitalization companies.
Under normal market conditions, the Account invests at least 65% of its total
assets in companies with a market capitalization between $1 billion and $10
billion at the time of purchase. The Fund may continue to hold or add to a
position in a stock after it has grown beyond $10 billion. Companies may range
from the well established and well known to the new and unseasoned.
The stocks are selected using a value oriented investment approach by the
Sub-Advisor which identifies value stocks in several ways. Factors it considers
in identifying value stocks may include:
o strong fundamentals, such as a company's financial, operational and
competitive positions;
o consistent cash flow; and
o a sound earnings record through all phases of the market cycle.
The Sub-Advisor may also look for other characteristics in a company, such as a
strong position relative to competitors, a high level of stock ownership among
management, and a recent sharp decline in stock price that appears to be the
result of a short-term market overreaction to negative news. The Sub-Advisor
believes that, over time, securities that are undervalued are more likely to
appreciate in price and are subject to less risk of price decline than
securities whose market prices have already reached their perceived economic
value.
This approach also involves selling portfolio securities when the Sub-Advisor
believes they have reached their potential, when the securities fail to perform
as expected or when other opportunities appear more attractive. It is
anticipated that the annual portfolio turnover rate may be greater than 100%.
Turnover rates in excess of 100% generally result in higher transaction costs
and a possible increase in short-term capital gains (or losses).
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of the securities
issued by such companies may decline. These factors contribute to price
volatility, which is the principal risk of investing in the Fund.
The medium capitalization companies the Fund invests in may be more vulnerable
to adverse business or economic events than larger, more established companies.
In particular, these 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 securities.
In addition, the Fund is subject to the risk that its principal market segment,
medium capitalization value stocks, may underperform compared to other market
segments or to the equity markets as a whole. Because different types of stocks
tend to shift in and out of favor depending on market and economic conditions,
the Fund's performance may sometimes be lower or higher than that of other types
of funds. The value of the Fund's equity securities may fluctuate on a daily
basis. If the investor sells Fund shares when their value is less than the price
the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Neuberger Berman Management Inc. ("Neuberger Berman") is an affiliate of
Neuberger Berman, LLC. Together, the firms manage more than $56.5 billion in
total assets (as of September 30, 2000) and continue an asset management history
that began in 1939.
Portfolio Manager
(since Fund's inception)
Robert I. Gendelman, Managing Director and Portfolio Manager, Neuberger Berman
Management, Inc., since 1994. He holds a BA from the University of Michigan as
well as a JD and an MBA from the University of Chicago.
Investor Profile
The Fund is generally a suitable investment if investors are seeking long-term
growth and are willing to accept short-term fluctuations in the value of
investments.
Fund Operating Expenses
Management Fees 1.00%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.57%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $160 $496
Principal Investors Fund, Inc. Profile
Partners SmallCap Growth Fund I
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Partners SmallCap Growth Fund
I ("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
To pursue its goal, the Fund invests mainly in common stocks of
small-capitalization companies, which it defines as those with a total market
value of no more than $1.5 billion at the time the Fund first invests in them.
The Fund may continue to hold or add to a position in a stock after it has grown
beyond $1.5 billion. The Fund seeks to reduce risk by diversifying among many
companies and industries.
The Sub-Advisor takes a growth approach to selecting stocks, looking for new
companies that are in the developmental stage as well as older companies that
appear poised to grow because of new products, markets or management. Factors in
identifying these firms may include financial strength, a strong position
relative to competitors and a stock price that is reasonable in light of its
growth rate.
The Sub-Advisor follows a disciplined selling strategy and may eliminate a stock
from the portfolio when it reaches a target price, fails to perform as expected,
or appears substantially less desirable than another stock.
Through active trading, the Fund may have a high portfolio turnover rate. High
turnover notes which can mean higher taxable distributions and lower performance
due to increased brokerage costs.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
Investments in companies with smaller market capitalizations may involve greater
risks and price volatility (wide, rapid fluctuations) 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.
In addition, the Fund is subject to the risk that its principal market segment,
small capitalization growth stocks, may underperform compared to the equity
markets as a whole. The securities purchased by the Fund present greater
opportunities for growth because of high potential earnings growth, but may also
involve greater risks than securities that do not have the same potential. The
value of the Fund's equity securities may fluctuate on a daily basis. As with
all mutual funds, as the values of the Fund's assets rise and fall, the Fund's
share price changes. The Fund's share price may fluctuate more than that of
funds primarily invested in stocks of mid and large-sized companies and may
underperform as compared to the securities of larger companies. If the investor
sells Fund shares when their value is less than the price the investor paid for
them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Neuberger Berman Management Inc. ("Neuberger Berman") is an affiliate of
Neuberger Berman, LLC. Together, the firms manage more than $56.5 billion in
total assets (as of September 30, 2000) and continue an asset management history
that began in 1939.
Portfolio Managers
(since Fund's inception)
Michael F. Malouf. Mr. Malouf is a Vice President of Neuberger Berman Management
and Managing Director of Neuberger Berman, LLC. Mr. Malouf joined the firm in
1998. From 1991 to 1998, he was a Portfolio Manager at another firm.
Jennifer K. Silver. Ms. Silver is a Vice President of Neuberger Berman
Management and Managing Director of Neuberger Berman, LLC. Ms. Silver has been
Director of the Growth Equity Group since 1997 and was an Analyst and a
Portfolio Manager at another firm from 1981 to 1997.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors 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.
Fund Operating Expenses
Management Fees 1.10%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.67%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $170 $526
Principal Investors Fund, Inc. Profile
Partners SmallCap Growth Fund II
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Partners SmallCap Growth Fund
II ("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund pursues its investment objective by investing primarily in equity
securities of companies offering superior prospects for earnings growth. These
companies are generally characterized as "growth" companies. Under normal market
conditions, the Fund invests at least 65% of its assets in companies with small
market capitalization.
Using its own quantitative process, the Sub-Advisor rates the future performance
potential of companies. It then evaluates each company's earnings quality in
light of their current valuation to narrow the list of attractive companies. The
Sub-Advisor then evaluates product positioning, management quality and
sustainability of current growth trends of those companies. Using this type of
fundamental analysis, it selects the most promising companies for the Fund's
portfolio.
Companies with similar characteristics may be grouped together in broad
categories called sectors. In determining the amount to invest in a security,
the Fund's exposure is limited to each business sector that comprises the S&P
500 Index. The Fund considers its approach aggressive because its strategies
with respect to security analysis, market capitalization, and sector allocation,
are designed to produce a portfolio of stocks whose long-term growth prospects
are significantly above those of the S&P 500 Index. Accordingly, the prices of
the stocks held by the Fund may, under certain market conditions, be more
volatile than the prices of stocks selected using a less aggressive approach.
The Fund actively trades its portfolio securities in an attempt to achieve its
investment objective. Active trading will cause the Fund to have an increased
portfolio turnover rate, which is likely to generate short-term gains (losses)
for its shareholders, which are taxed at a higher rate than long-term gains
(losses). Actively trading portfolio securities increases the Fund's trading
costs and may have an adverse impact on the Fund's performance.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
Investments in companies with smaller market capitalizations may involve greater
risks and price volatility (wide, rapid fluctuations) 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.
In addition, the Fund is subject to the risk that its principal market segment,
small capitalization growth stocks, may underperform compared to the equity
markets as a whole. The securities purchased by the Fund present greater
opportunities for growth because of high potential earnings growth, but may also
involve greater risks than securities that do not have the same potential. The
value of the Fund's equity securities may fluctuate on a daily basis. As with
all mutual funds, as the values of the Fund's assets rise and fall, the Fund's
share price changes. The Fund's share price may fluctuate more than that of
funds primarily invested in stocks of mid and large-sized companies and may
underperform as compared to the securities of larger companies. If the investor
sells Fund shares when their value is less than the price the investor paid for
them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Federated Investment Management Company ("Federated") is a registered investment
adviser and a wholly-owned subsidiary of Federated Investors, Inc., which was
founded in 1955. As of October 31, 2000, Federated managed $131 billion in
assets.
Portfolio Managers
(since Fund's inception)
Keith J. Sabol, CFA. Mr. Sabol joined Federated in 1994. He has been a Porfolio
Manager since 1996 and served as an Assistant Vice President of Federated
Investment Management Company from 1997 to 1998. He has been a Vice President of
Federated Investment Management Company since 1998. Mr. Sabol was an Investment
Analyst, and then Equity Research Coordinator for Federated Investment
Management Company from 1994 to 1996. Mr. Sabol earned his MS in Industrial
Administration from Carnegie Mellon University. He has earned the right to use
the Chartered Financial Analyst designation.
Aash M. Shah, CFA. Mr. Shah joined Federated in 1993 and has been a Portfolio
Manager and a Vice President of Federated Investment Management Company since
1997. Mr. Shah was a Portfolio Manager and served as an Assistant Vice President
of Federated Investment Management Company from 1995 through 1996, and as an
Investment Analyst from 1993 to 1995. Mr. Shah received his Masters in
Industrial Administration from Carnegie Mellon University with a concentration
in Finance and Accounting. He has earned the right to use the Chartered
Financial Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors 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.
Fund Operating Expenses
Management Fees 1.00%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.57%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $160 $496
Principal Investors Fund, Inc. Profile
Real Estate Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Real Estate Fund ("Fund") that
is included in the Fund's prospectus. The Fund's prospectus includes additional
information about the Fund, including a more detailed description of the risks
associated with investing in the Fund that you may want to consider before you
invest. You may obtain the prospectus and other information (including
Sub-Advisor composite performance information) about the Fund at no cost by
calling 1-800-547-7754. The prospectus is also available on our website at
www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks to generate a total return.
Main Investment Strategies of the Fund
The Fund invests primarily in equity securities of companies principally 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 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.
Real estate investment trusts ("REITs") are corporations or business trusts that
are permitted to eliminate corporate level federal income taxes by meeting
certain requirements of the Internal Revenue Code. REITs are characterized as:
o equity REITs, which primarily own property and generate revenue from rental
income;
o mortgage REITs, which invest in real estate mortgages; and
o hybrid REITs, which combine the characteristics of both equity and mortgage
REITs. In selecting securities for the Fund, the Sub-Advisor focuses on
equity REITs.
In selecting securities for the Fund, the Sub-Advisor uses a fundamental company
analysis which utilizes a free cash flow model. The Sub-Advisor attempts to
leverage its relationship with its affiliated real estate professionals to
identify regions and assets classes for investment.
Main Risks of Investing in the Fund
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 dependency on management skills
o heavy cash flow dependency
o possible lack of available mortgage funds
o overbuilding
o extended vacancies in properties
o increases in property taxes and operating expenses
o changes in zoning laws
o expenses incurred in the cleanup of environmental problems
o casualty or condemnation losses
o changes in interest rates
Because of these factors, the value of the securities held by the Fund, and in
turn the price per share of 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, share prices can fluctuate
dramatically in response to these factors. Because of these fluctuations,
principal values and investment returns vary. As with all mutual funds, the
value of the Fund's assets may rise or fall. If the investor sells Fund shares
when their value is less than the price the investor paid for them, the investor
will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Principal Capital Real Estate Investors, LLC ("PCREI"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 2000. It manages investments for
institutional investors, including The Principal. Assets under management as of
____________were approximately $____ billion.
Portfolio Manager
(since Fund's inception)
Kelly D. Rush, CFA. Mr. Rush directs the Real Estate Investment Trust (REIT)
activity for PCREI. Mr. Rush joined the Principal Financial Group(R) in 1987 and
has been dedicated to public real estate investments since 1995. His experience
includes the structuring of public real estate transactions that included
commercial mortgage loans and the issuance of unsecured bonds. He received his
Master's degree and Bachelor's degree in Finance from the University of Iowa. He
has earned the right to use the Chartered Financial Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors who seek a total
return, want to invest in companies engaged in the real estate industry and are
willing to accept the potential for volatile fluctuations in the value of
investments.
Fund Operating Expenses
Management Fees 0.85%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.42%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $145 $449
Principal Investors Fund, Inc. Profile
SmallCap S&P 600 Index Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the SmallCap S&P 600 Index Fund
("Fund") that is included in the Fund's prospectus. The Fund's prospectus
includes additional information about the Fund, including a more detailed
description of the risks associated with investing in the Fund that you may want
to consider before you invest. You may obtain the prospectus and other
information (including Sub-Advisor composite performance information) about the
Fund at no cost by calling 1-800-547-7754. The prospectus is also available on
our website at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
Under normal market conditions, the Fund invests at least 80% of its assets in
common stocks of companies that compose the Standard & Poor's SmallCap 600
Index*. The Sub-Advisor attempts to mirror the investment performance of the
index by allocating the Fund's assets in approximately the same weightings as
the S&P 600. The S&P 600 is an unmanaged index of 600 domestic stocks chosen for
market size, liquidity and industry group representation.
The Fund uses an indexing strategy and is not managed according to traditional
methods of "active" investment management. It does not attempt to manage market
volatility, use defensive strategies or reduce the effect of any long-term
periods of poor stock performance. The correlation between Fund and index
performance may be affected by the Fund's expenses, changes in securities
markets, changes in the composition of the index and the timing of purchases and
sales of Fund shares.
Main Risks of Investing in the Fund
Because of the difficulty and expense of executing relatively small stock
trades, the Fund may not always be invested in the less heavily weighted S&P 600
stocks. The Fund's portfolio may be weighted differently from the index
particularly if the Fund has a small level of assets to invest. In addition, the
Fund's ability to match the performance of the index is affected to some degree
by the size and timing of cash flows into and out of the Fund. The Fund is
managed to attempt to minimize such effects.
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
Investments in companies with smaller market capitalizations may involve greater
risks and price volatility 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.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Managers
(since Fund's inception)
Robert Baur, Ph.D. Dr. Baur joined Invista in 1995 after serving as a professor
of finance and economics at Drake University and Grand View College. He received
his Bachelor's degree in Mathematics and his Ph.D. in Economics from Iowa State
University. Dr. Baur also did post-doctoral study in finance and economics at
the University of Minnesota. He also holds a BS in Mathematics from Iowa State
University.
Rhonda VanderBeek. Ms. Vander Beek directs trading operations for Invista index
accounts. She joined the Principal Financial Group(R)in 1983 as a trading
statistical clerk and moved to Invista in 1992. Ms. Vander Beek has extensive
experience trading both domestic and international securities.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors must be willing to accept the potential for
volatile fluctuations in the value of investments and prefer a passive rather
than active management style.
* Standard & Poor's Corporation is not affiliated with the SmallCap S&P 600
Index Fund, Invista or The Principal.
Fund Operating Expenses
Management Fees 0.15%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 0.72%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $74 $230
Principal Investors Fund, Inc. Profile
SmallCap Blend Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the SmallCap Blend Fund ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in common stocks of small capitalization companies.
Under normal market conditions, the Fund invests at least 65% of its assets in
companies with a market capitalization of $1.5 billion or less at the time of
purchase.
In selecting securities for investment, the Sub-Advisor looks at stocks
with value and/or growth characteristics and constructs an investment portfolio
that has a "blend" of stocks with these characteristics. In managing the assets
of the Fund, the Sub-Advisor does not have a policy of preferring one of these
categories to the other. 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.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility, which is the principal risk of investing in the Fund.
Investments in companies with smaller market capitalizations may involve greater
risks and price volatility (wide, rapid fluctuations) 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.
In addition, the Fund is subject to the risk that its principal market segment,
small capitalization stocks, may underperform compared to the equity markets as
a whole. The value of the Fund's equity securities may fluctuate on a daily
basis. As with all mutual funds, as the values of the Fund's assets rise and
fall, the Fund's share price changes. The Fund's share price may fluctuate more
than that of funds primarily invested in stocks of mid and large-sized companies
and may underperform as compared to the securities of larger companies. If the
investor sells Fund shares when their value is less than the price the investor
paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Managers
(since Fund's inception)
Tom Morabito, CFA. Mr. Morabito joined Invista in 2000 as the lead small-cap
value portfolio manager. He has more than 12 years of analytical and portfolio
management expertise. Since 1994, Mr. Morabito was a manager for INVESCO
Management & Research. He received his MBA in Finance from Northeastern
University and his Bachelor's degree in Economics from State University of New
York. He has earned the right to use the Chartered Financial Analyst
designation.
Michael L. Johnson. Mr. Johnson is a portfolio manager of Invista. He performs
security analysis and strategy development for the firm's growth equity research
effort. Mr. Johnson specializes in the capital goods, health care and technology
sectors. He joined Invista in 1992. He received his MBA from Drake University
and his Bachelor's degree in business administration and finance from the
University of Nebraska. He has earned the right to use the Chartered Financial
Analyst designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors must be willing to accept the potential for
volatile fluctuations in the value of investments.
Fund Operating Expenses
Management Fees 0.75%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.32%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $134 $418
Principal Investors Fund, Inc. Profile
SmallCap Growth Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the SmallCap Growth Fund ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in common stocks of small capitalization companies.
Under normal market conditions, the Fund invests at least 65% of its assets in
companies with a market capitalization of $1.5 billion or less at the time of
purchase.
The Sub-Advisor selects individual securities that it believes have an above
average potential for earnings growth. Selection is based on fundamental
analysis of a company relative to other companies with the focus being on an
assessment of current and future sales growth and operating margins.
The Sub-Advisor focuses its stock selection on companies it believes have
sustainable competitive advantages and constructs a portfolio that is "benchmark
aware" in that it is sensitive to the sector (companies with similar
characteristics) and security weightings of its benchmark. However, the Fund is
actively managed and prepared to over- and/or under-weight sectors and
industries differently from the benchmark.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility, which is the principal risk of investing in the Fund.
Investments in companies with smaller market capitalizations may involve greater
risks and price volatility (wide, rapid fluctuations) 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.
In addition, the Fund is subject to the risk that its principal market segment,
small capitalization growth stocks, may underperform compared to the equity
markets as a whole. The securities purchased by the Fund present greater
opportunities for growth because of high potential earnings growth, but may also
involve greater risks than securities that do not have the same potential.
The value of the Fund's equity securities may fluctuate on a daily basis. As
with all mutual funds, as the values of the Fund's assets rise and fall, the
Fund's share price changes. The Fund's share price may fluctuate more than that
of funds primarily invested in stocks of mid and large-sized companies and may
underperform as compared to the securities of larger companies. If the investor
sells Fund shares when their value is less than the price the investor paid for
them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Manager
(since Fund's inception)
John F. McClain. Mr. McClain is a portfolio manager for small company and medium
company growth products. He joined Invista in 1990. Previously, he was an
investment executive with Paine Webber. He earned an MBA from Indiana University
and a BBA in Economics from the University of Iowa.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital. Investors 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.
Fund Operating Expenses
Management Fees 0.75%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.32%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $134 $418
Principal Investors Fund, Inc. Profile
SmallCap Value Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the SmallCap Value Fund ("Fund")
that is included in the Fund's prospectus. The Fund's prospectus includes
additional information about the Fund, including a more detailed description of
the risks associated with investing in the Fund that you may want to consider
before you invest. You may obtain the prospectus and other information
(including Sub-Advisor composite performance information) about the Fund at no
cost by calling 1-800-547-7754. The prospectus is also available on our website
at www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in common stocks of small capitalization companies.
Under normal market conditions, the Fund invests at least 65% of its assets in
companies with a market capitalization of $1.5 billion or less at the time of
purchase. These stocks are often characterized by below-average stock
price/earnings ratios and above-average dividend yields. The Sub-Advisor selects
the Fund's investments primarily on the basis of fundamental security analysis,
focusing on the company's financial stability, sales, earnings, dividend trends,
return on equity and industry trends.
The Sub-Advisor focuses its stock selection on companies it believes have
sustainable competitive advantages and constructs a portfolio that is "benchmark
aware" in that it is sensitive to the sector (companies with similar
characteristics) and security weightings of its benchmark. However, the Fund is
actively managed and prepared to over- and/or under-weight sectors and
industries differently from the benchmark.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. In response, the price of securities issued by
such companies may decline. These factors contribute to price volatility, which
is the principal risk of investing in the Fund.
Investments in companies with smaller market capitalizations may involve greater
risks and price volatility (wide, rapid fluctuations) 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.
In addition, the Fund is subject to the risk that its principal market segment,
small capitalization value stocks, may underperform compared to the equity
markets as a whole. The value of the Fund's equity securities may fluctuate on a
daily basis. As with all mutual funds, as the values of the Fund's assets rise
and fall, the Fund's share price changes. The Fund's share price may fluctuate
more than that of funds primarily invested in stocks of mid and large-sized
companies and may underperform as compared to the securities of larger
companies. If the investor sells Fund shares when their value is less than the
price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
Invista Capital Management, LLC(R) ("Invista"), an indirect wholly-owned
subsidiary of Principal Life Insurance Company (The Principal(R)) and an
affiliate of the Manager, was founded in 1985. It manages investments for
institutional investors, including The Principal. Assets under management as of
_________ were approximately $______ billion.
Portfolio Manager
(since Fund's inception)
Tom Morabito, CFA. Mr. Morabito joined Invista in 2000 as the lead small-cap
value portfolio manager. He has more than 12 years of analytical and portfolio
management expertise. Since 1994, Mr. Morabito was a manager for Invesco
Management & Research. He received his MBA in Finance from Northeastern
University and his Bachelor's degree in Economics from State University of New
York. He has earned the right to use the Chartered Financial Analyst
designation.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital who are willing to accept the potential for volatile
fluctuations in the value of investments.
Fund Operating Expenses
Management Fees 0.75%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.32%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $134 $418
Principal Investors Fund, Inc. Profile
Technology Fund
Advisors Preferred Class Shares
The date of this Profile is ___________ ___, 2000
This Profile summarizes key information about the Technology Fund ("Fund") that
is included in the Fund's prospectus. The Fund's prospectus includes additional
information about the Fund, including a more detailed description of the risks
associated with investing in the Fund that you may want to consider before you
invest. You may obtain the prospectus and other information (including
Sub-Advisor composite performance information) about the Fund at no cost by
calling 1-800-547-7754. The prospectus is also available on our website at
www.principal.com.
Advisors Preferred shares of the Fund are available to an employer's sponsored
retirement plan(s) (the "plan") if the plan invests at least $10 million in the
Principal Investors Fund.
Fund Objective/Goal
The Fund seeks long-term growth of capital.
Main Investment Strategies of the Fund
The Fund invests primarily in common stocks and other securities of technology
and telecommunications companies domiciled anywhere in the world. The
Sub-Advisor believes that analysis and research needs to be conducted in a
global context and considers companies in a broad range of technology-related
industries, generally including: computers; software and peripheral products;
electronics; communications equipment and services; and information services.
The Sub-Advisor focuses on three key criteria when selecting securities:
o business franchise - considering factors such as the company's relationship
with its suppliers and customers, the degree of rivalry with competitors as
well as the exposure to regulatory and technological risk;
o quality of management - assessing the company's management on its ability to
execute current business plans, manage the capital invested in the business
as well as the level of transparency with respect to strategy and operations;
and
o business valuation - determining the private market or `true business value'
of the firm.
The Sub-Advisor's qualitative analysis is complemented by disciplined valuation
techniques. These include proprietary models as well as conventional market
measurements and industry specific models of relative value. This analytical
framework ensures consistency and transparency throughout the research process.
Portfolios are constructed and managed within predetermined guidelines that are
regularly monitored by the Sub-Advisor.
Main Risks of Investing in the Fund
Because it purchases equity securities, the Fund is subject to the risk that
stock prices will fall over short or extended periods of time. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The price of securities issued by such
companies may suffer a decline in response. These factors contribute to price
volatility.
The Fund may invest in securities of companies with small to medium market
capitalizations. While small companies may offer greater opportunities for
capital growth than larger, more established companies, they also involve
greater risk and should be considered speculative. Small to 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 securities.
The Fund is also subject to the risk that its principal market segment,
technology stocks, may underperform compared to other market segments or to the
equity markets as a whole. The competitive pressures of advancing technology and
the number of companies and product offerings which continue to expand could
cause technology companies to become increasingly sensitive to short product
cycles and aggressive pricing.
As with all mutual funds, as the value of the Fund's assets rise and fall, the
Fund's share price changes. If the investor sells Fund shares when their value
is less than the price the investor paid for them, the investor will lose money.
Performance
Because the inception date of the Fund is December, 2000, historical performance
data is not available.
Manager
The Manager of the Fund is Principal Management Corporation. The Manager handles
the investment advisory services and provides certain corporate administrative
services to the Fund. The Manager is an indirect subsidiary of Principal
Financial Services, Inc. and has managed mutual funds since 1969. As of October
31, 2000, the mutual funds it manages had assets of approximately $6.6 billion.
The Manager has contracted with the Sub-Advisor to provide investment advisory
services to the Fund.
Sub-Advisor
BT Funds Management (International) Limited ("BT") is a related company of BT
Funds Management Limited ("BTFM") and a member of the Principal Financial
Group(R). As of October 31, 2000, BT, together with BTFM, had approximately
$23.8 billion under management.
Portfolio Manager
(since Fund's inception)
David Mills is Executive Vice President of BT and serves as its head of U.S.
Equities. He joined BT's retail unit trust team in January 1990 as an Analyst in
European equities. In July 1996, he assumed fund management responsibility for
all of the direct European investment vehicles offered by BT.
Investor Profile
The Fund is generally a suitable investment for investors seeking long-term
growth of capital in the technology and telecommunications sector. Investors
must be able to assume the increased risks of higher price volatility associated
with such investments as well as currency fluctuations associated with
investments in stocks trading in non-U.S. currencies.
Fund Operating Expenses
Management Fees 1.00%
12b-1 Fees 0.31
Other Expenses* 0.26
Total Fund Operating Expenses 1.57%
* Other Expenses:
Service Fee 0.17%
Administrative Service Fee 0.09
Example
The Example assumes that 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
Example also assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. Based on these assumptions your cost
would be:
1 Year 3 Years
Advisors Preferred Class $160 $496
