Principal SmallCap S&P 600 Index R5 (Principal Fds, Inc. SmallCap S&) Fonds

Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that compose the Standard & Poor's ("S&P") SmallCap 600 Index. The index is designed to represent U.S. equities with risk/return characteristics of the small cap universe.