(j)
Certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
are
based
on
current
market
conditions. These
securities
do
not
indicate
a
reference
rate
and
spread
in
their
description.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(k)
Security
is
an
Interest
Only
Strip.
(l)
Payment
in
kind;
the
issuer
has
the
option
of
paying
additional
securities
in
lieu
of
cash.
(m)
Non-income
producing
security
(n)
The
value
of
these
investments
was
determined
using
significant
unobservable
inputs,
in
good
faith
by
the
Manager,
under
procedures
established
and
periodically
reviewed
by
the
Board
of
Directors.
(o)
This
Senior
Floating
Rate
Note
will
settle
after
March
31,
2026,
at
which
time
the
interest
rate
will
be
determined.
(p)
Security
was
purchased
in
a
"to-be-announced"
("TBA")
transaction.
(q)
Security
or
a
portion
of
the
security
was
pledged
to
cover
margin
requirements
for
futures
contracts.
At
the
end
of
the
period,
the
value
of
these
securities
totaled
$1,873
or
0.77%
of
net
assets.
(r)
Rate
shown
is
the
discount
rate
of
the
original
purchase.
Affiliated
Securities
December
31,
2025
Purchases
Sales
March
31,
2026
Value
Cost
Proceeds
Value
Principal
Funds,
Inc
-
Government
Money
Market
Fund
-
Class
R-6
3.55%
$
7,561
$
82,927
$
74,635
$
15,853
$
7,561
$
82,927
$
74,635
$
15,853
Income
(a)
Realized
Gain/(Loss)
on
Investments
Realized
Gain
from
Capital
Gain
Distributions
Change
in
Unrealized
Gain/
(Loss)
Principal
Funds,
Inc
-
Government
Money
Market
Fund
-
Class
R-6
3.55%
$
58
$
—
$
—
$
—
$
58
$
—
$
—
$
—
Amounts
in
thousands.
(a)
Amount
excludes
earnings
from
securities
lending
collateral.
Futures
Contracts
Description
and
Expiration
Date
Type
Contracts
Notional
Amount
Value
and
Unrealized
Appreciation/(Depreciation)
US
10
Year
Treasury
Note;
June
2026
Short
49
$
5,441
$
90
US
10
Year
Treasury
Ultra
Note;
June
2026
Short
16
1,816
41
US
2
Year
Treasury
Note;
June
2026
Long
130
26,968
(
198
)
US
5
Year
Treasury Note;
June
2026
Long
163
17,633
(
201
)
US
Long
Bond;
June
2026
Long
45
5,124
(
163
)
US
Ultra
Bond;
June
2026
Long
43
5,012
(
152
)
Total
$
(
583
)
Amounts
in
thousands
except
contracts.
Exchange
Cleared
Credit
Default
Swaps
Sell
Protection
Reference
Entity
Implied
Credit
Spread
as
of
March
31,
2026
(a)
(Pay)/
Receive
Fixed
Rate
Payment
Frequency
Maturity
Date
Notional
Amount
(b)
Upfront
Premiums
Paid/
(Received)
Unrealized
Appreciation/
(Depreciation)
Fair
Value
(c)
CDX.NA.HY.46
N/A
5.00%
Quarterly
06/20/2031
$
2,320
$
92
$
20
$
112
Total
$
92
$
20
$
112
Amounts
in
thousands.
(a)
Implied
credit
spreads,
represented
in
absolute
terms,
used
in
determining
the
fair
value
of
credit
default
swap
agreements
on
corporate
issues
or
sovereign
issues
as
of
period
end
serve
as
an
indicator
of
the
current
status
of
the
payment/performance
risk
and
represent
the
likelihood
or
risk
of
default
for
the
credit
derivative.
The
implied
credit
spread
of
a
particular
referenced
entity
reflects
the
cost
of
buying/selling
protection
and
may
include
upfront
payments
required
to
be
made
to
enter
into
the
agreement.
Wider
credit
spreads
represent
a
deterioration
of
the
referenced
entity's
credit
soundness
and
a
greater
likelihood
or
risk
of
default
or
other
credit
event
occurring
as
defined
under
the
terms
of
the
agreement.
(b)
The
maximum
potential
payment
amount
that
the
seller
of
credit
protection
could
be
required
to
make
if
a
credit
event
occurs
is
$2,320.
(c)
The
price
and
resulting
fair
value
for
credit
default
swap
agreements
serve
as
an
indicator
of
the
current
status
of
the
payment/performance
risk
and
represent
the
likelihood
of
an
expected
liability
(or
profit)
for
the
credit
default
swap
as
of
the
period
end.
Increasing
fair
values
of
the
swap,
in
absolute
terms
when
compared
to
the
notional
amount
of
the
swap,
represent
a
deterioration
of
the
referenced
entity's
credit
soundness
and
a
greater
likelihood
or
risk
of
default
or
other
credit
event
occurring
as
defined
under
the
terms
of
the
agreement.