Principal Global Investors LLC

Item 5 – Fees and Compensation
Principal AM’s fees generally depend on the services being provided. Principal AM offers its
services for compensation based primarily on a percentage of assets under management or on a
fixed fee basis. Principal AM may negotiate and charge different fees for different accounts. For
example, Principal AM may consider a variety of factors when offering discounted fee schedules
to certain clients, including but not limited to the totality of the client’s (and/or their affiliates’)
relationship with Principal AM or its affiliates, the number of accounts managed, the size or asset
level of the account(s), the nature of services rendered, the country of domicile, and any special
requirements of the account(s) managed. For clients with whom Principal AM has agreed to
provide the lowest fee rate charged to any other similarly situated client, all these factors,
including the totality of Principal AM’s relationship with a client and/or its affiliates, may be taken
into consideration in determining whether a client is similarly situated to another. Principal AM
may also consider the impact such arrangements could have on agreements that have previously
been entered into with other clients.

In addition, fees and allocations are often fixed, fixed plus performance, or performance only.
Certain fixed fees are required to be paid up front. For an additional discussion of performance-
based fees and allocations, please refer to Item 6 (“Performance-Based Compensation and Side-
by-Side Management”) of this Brochure.

When deciding whether to negotiate a particular fee, Principal AM may also consider its capacity
to manage assets in a particular strategy. In addition, Principal AM may offer or make available to
certain clients a specified asset level or capacity maximum that Principal AM will allow them to

invest in a given strategy. The amount of capacity offered may impact fee negotiations. The
negotiation of fees may result in similarly situated clients paying different fees for comparable
advisory services.

Clients may invest in a variety of U.S. and non-U.S. commingled vehicles, including private
commingled vehicles. Information regarding advisory fees charged by Principal AM and other
expenses payable by investors is set forth in the offering documents for the applicable
commingled vehicle.

Fees for Institutional Clients Accounts

Equities Fee Schedules:

Principal AM’s standard annual fees for investment management services are based on the fair
market value of assets under management as outlined in the table below. Published fee schedules
shown reflect unaffiliated client portfolios which are individually managed (segregated and
discretionary) and subject to the stated minimum accounts sizes. Fees and minimum investment
amounts in all categories and ranges can be subject to negotiation as appropriate and may be
higher or lower than those described below.

   International Equity                                Fee Schedule
   International Equity                                0.60% on the first $50 million
   Diversified International Equity                    0.55% on the next $50 million
                                                       0.50% thereafter
                                                       Minimum Account Size: $50 million

   International Developed Equity                      0.55% on the first $50 million
                                                       0.50% on the next $50 million
                                                       0.45% thereafter
                                                       Minimum Account Size: $25 million

   Global Emerging Markets Equity                      0.75% on the first $50 million
   Emerging Markets Ex-China                           0.70% on the next $50 million
                                                       0.60% thereafter
                                                       Minimum Account Size: $50 million
   Asia Pacific ex Japan Equity Asia                   0.65% on the first $50 million
   Ex Japan Equity                                     0.60% on the next $50 million
                                                       0.50% thereafter
                                                       Minimum Account Size: $25 million

   European Equity                                     0.50% on the first $50 million
                                                       0.40% on the next $50 million
                                                       0.30% thereafter
                                                       Minimum Account Size: $25 million

   European Responsible Equity                         0.55% on the first $50 million
                                                       0.50% on the next $50 million
                                                       0.45% thereafter

International Small Cap Equity           0.80% on the first $50 million
                                         0.75% on the next $50 million
                                         0.70% thereafter
                                         Minimum Account Size: $25 million

Global Equity                            0.55% on the first $50 million
Global Opportunities Equity              0.50% on the next $50 million
Global Sustainable Equity                0.45% thereafter
                                         Minimum Account Size: $25 million

Principal Equities                       Fee Schedule
U.S. Small Cap Equity                    0.60% on the first $50 million
U.S. Small Cap Select Equity             0.55% on the next $50 million
U.S. Small Cap Select Value Equity       0.45% thereafter
U.S. SMID Equity                         Minimum Account Size: $10 million

Capital Appreciation                     0.50% on the first $50 million
U.S. Core Equity Income Equity           0.45% on the next $50 million
...

Item 7 – Types of Clients
Principal AM provides portfolio management services to individuals, high net worth individuals,
corporate pension and profit–sharing plans, Taft-Hartley plans, charitable institutions,
foundations, endowments, municipalities, registered mutual funds, private investment funds,
ETFs, trusts, sovereign wealth funds, foreign funds, supranational, central banks, collective
investment trusts, wrap programs, insurance separate accounts, life insurance company general
accounts, fund of funds, 529 plans, real estate, listed infrastructure, interval funds and other U.S.
and international institutions. Some of Principal AM’s clients are affiliates. Principal AM is a sub-
adviser to Principal Trust Company and Principal Bank providing asset allocation advice and other
investment advisory services to institutional investors.

Principal AM provides investment advisory services both directly to clients and as a sub‑adviser to
investment products (e.g., ETF, CIT, model portfolios) sponsored or advised by other registered
investment advisers or financial institutions. Principal AM also provides asset allocation and other
investment advisory services to qualified retirement plans funded with group annuity contracts
purchased from Principal Life.

Generally, the minimum account size for opening and maintaining an individually managed equity
portfolio/account is $10-50 million and is based on the type of strategy used for the client’s
portfolio.

Generally, the minimum account size for opening and maintaining an individually managed fixed
income portfolio/account is $25-50 million and is based on the type of strategy used for the
client’s portfolio.

Principal AM reserves the right in its sole discretion to accept client accounts with fewer initial
assets.

The minimum account size for all Separately Managed Accounts in which Principal AM
participates is generally $100,000. Although investment minimums differ from program to
program and are determined by the Program Sponsor, Principal AM may elect to waive or
negotiate other minimum account sizes.