https://www.sec.gov/Archives/edgar/data/898745/000089874516001491/pfi831123115supp-091616.htm497 1 pfi831123115supp-091616.htm PFI 831 1231 SUPP 091616
Principal Funds, Inc.
Supplement dated September 16, 2016
to the Statutory Prospectus dated December 31, 2015
(as supplemented on March 18, 2016, May 31, 2016, June 17, 2016,
June 30, 2016, and July 29, 2016)
This supplement updates information currently in the Statutory Prospectus. Please retain this supplement for future reference.
SUMMARY FOR CREDIT OPPORTUNITIES EXPLORER FUND
On September 13, 2016, the Board of Directors of Principal Funds, Inc. approved the Plan of Liquidation (the “Plan”) for the Credit Opportunities Explorer Fund (the "Fund"). Effective as of the close of the New York Stock Exchange on September 1, 2016, the Fund is no longer available for purchase from new investors. Pursuant to the Plan, the Fund will liquidate on or about October 28, 2016. All outstanding shares will be redeemed at net asset value, proceeds will be sent to shareholders of record, and the Fund will discontinue its operations. In light of the anticipated liquidation, the Fund may deviate from its stated investment objective and strategies.
