United States Treasury Note/Bond $ 733,250 700,000 1.49% 6/30/2013 3.38 Carrington Mortgage Loan Trust $ 614,722 800,000 1.25% 12/25/2035 0.59 Ginnie Mae $ 598,898 575,000 1.22% 7/1/2039 6.00 Freddie Mac $ 584,847 560,500 1.19% 7/1/2039 6.00 Ginnie Mae $ 535,172 525,000 1.09% 7/1/2039 5.00 Fannie Mae $ 534,516 525,000 1.09% 7/1/2039 5.00 Fannie Mae $ 530,400 520,000 1.08% 7/1/2024 4.50 Fannie Mae $ 527,175 495,000 1.07% 7/1/2039 6.50 Freddie Mac $ 526,432 537,265 1.07% 7/15/2023 0.72 HD Supply Inc, Term Loan B $ 501,956 551,600 1.02% 8/30/2012 1.68 Investment in Joint Trading Account; Credit Suisse Repurchase Agreement $ 451,727 451,727 0.92% 7/1/2009 0.02 Investment in Joint Trading Account; Deutsche Bank Repurchase Agreement $ 451,727 451,727 0.92% 7/1/2009 0.08 Investment in Joint Trading Account; Morgan Stanley Repurchase Agreement $ 451,727 451,727 0.92% 7/1/2009 0.03 Bear Stearns Cos LLC/The $ 439,089 450,000 0.89% 11/28/2011 0.85 Morgan Stanley Capital I $ 435,656 575,000 0.89% 3/15/2044 5.36 Discover Card Master Trust I $ 415,907 425,000 0.85% 5/15/2012 0.56 PNC Funding Corp $ 414,415 450,000 0.84% 1/31/2012 1.18 American Honda Finance Corp $ 398,131 400,000 0.81% 4/20/2010 1.21 JP Morgan Mortgage Acquisition Corp $ 386,228 455,000 0.79% 11/25/2036 5.45 Textron Financial Corp $ 377,166 425,000 0.77% 2/25/2011 0.79 Fannie Mae $ 371,419 355,000 0.76% 7/1/2024 5.50 Indymac Residential Asset Backed Trust $ 371,346 800,000 0.76% 4/25/2037 0.50 HSBC Finance Corp $ 356,959 355,000 0.73% 11/16/2009 4.13 Citigroup Mortgage Loan Trust Inc $ 351,408 625,000 0.71% 3/25/2037 0.46 Impac Secured Assets CMN Owner Trust $ 349,860 925,000 0.71% 3/25/2036 0.59 6-09 PQ 4132 Not FDIC or NCUA Insured May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee Not Insured by any Federal Government Agency Please note that coupon rates are not available for all securities displayed on this report. High Quality Intermediate-Term Bond Fund As of June 30, 2009 SCHEDULE OF INVESTMENTS ISSUER SHARES/ PAR VALUE MARKET VALUE % TOTAL NET ASSETS MATURITY DATE COUPON RATE Martin Marietta Materials Inc $ 344,703 350,000 0.70% 4/30/2010 1.19 Freddie Mac $ 337,697 325,000 0.69% 9/15/2031 5.50 First Franklin Mortgage Loan Asset Backed Certificates $ 332,474 371,582 0.68% 11/25/2035 0.55 JP Morgan Mortgage Acquisition Corp $ 330,500 516,580 0.67% 4/25/2036 0.48 Freddie Mac $ 325,631 315,000 0.66% 7/1/2024 5.00 Banc of America Commercial Mortgage Inc $ 313,439 325,000 0.64% 9/10/2045 5.33 Bank One Issuance Trust $ 299,792 300,000 0.61% 3/15/2012 0.64 Hartford Life Global Funding Trusts $ 298,781 300,000 0.61% 9/15/2009 0.80 KeyBank NA $ 297,330 300,000 0.60% 11/3/2009 1.17 Morgan Stanley Capital I $ 296,752 425,000 0.60% 5/24/2043 0.53 Vodafone Group PLC $ 286,711 300,000 0.58% 2/27/2012 0.94 M&I Marshall & Ilsley Bank $ 278,092 400,000 0.57% 12/4/2012 0.92 Wells Fargo Home Equity Trust $ 274,191 346,702 0.56% 10/25/2035 0.60 JP Morgan Chase Commercial Mortgage Securities Corp $ 269,593 360,000 0.55% 2/15/2051 5.88 Commercial Mortgage Loan Trust $ 259,515 350,000 0.53% 9/10/2017 6.22 Daimler Chrysler Auto Trust $ 256,034 250,000 0.52% 9/10/2012 4.71 Cabela's Master Credit Card Trust $ 253,078 250,000 0.51% 12/16/2013 4.31 Ohio Power Co $ 252,211 255,000 0.51% 4/5/2010 1.35 Countrywide Asset-Backed Certificates $ 249,113 274,749 0.51% 2/25/2036 0.60 Capital One Financial Corp $ 249,088 250,000 0.51% 9/10/2009 0.93 Long Beach Mortgage Loan Trust $ 248,673 675,000 0.51% 11/25/2036 0.42 HSBC Finance Corp $ 248,045 250,000 0.50% 11/16/2009 1.13 HSI Asset Securitization Corp Trust $ 246,952 775,000 0.50% 1/25/2037 0.45 Xstrata Finance Dubai Ltd $ 246,862 250,000 0.50% 11/13/2009 1.27 ProLogis $ 244,186 250,000 0.50% 8/24/2009 0.91 ING Groep NV $ 239,850 410,000 0.49% 12/8/2035 5.78 Banc of America Funding Corp $ 239,224 279,866 0.49% 7/20/2036 0.39 Countrywide Asset-Backed Certificates $ 233,571 447,869 0.48% 3/25/2036 0.56 National Semiconductor Corp $ 225,017 250,000 0.46% 6/15/2010 0.88 Snap-On Inc $ 222,733 225,000 0.45% 1/12/2010 1.27 Morgan Stanley Capital I $ 219,459 300,000 0.45% 4/12/2049 5.81 Freddie Mac Non Gold Pool $ 219,209 215,394 0.45% 6/1/2035 4.62 Indymac Index Mortgage Loan Trust $ 217,141 500,117 0.44% 6/25/2037 0.55 Countrywide Asset-Backed Certificates $ 216,919 306,585 0.44% 1/25/2036 0.58 Indymac Index Mortgage Loan Trust $ 213,032 625,000 0.43% 2/25/2037 0.49 Wells Fargo Mortgage Backed Securities Trust $ 212,284 273,783 0.43% 10/25/2035 4.81 Countrywide Asset-Backed Certificates $ 208,176 400,000 0.42% 11/25/2037 0.44 Bank of America Corp $ 206,603 200,000 0.42% 5/15/2014 7.38 Credit Suisse Mortgage Capital Certificates $ 205,998 300,000 0.42% 9/15/2040 5.69 Ford Credit Auto Owner Trust $ 203,311 210,000 0.41% 6/15/2012 5.30 Time Warner Inc $ 199,523 200,000 0.41% 11/13/2009 1.15 Vulcan Materials Co $ 199,014 200,000 0.40% 12/15/2010 1.88 Long Beach Mortgage Loan Trust $ 198,632 800,000 0.40% 10/25/2036 0.42 Bear Stearns Adjustable Rate Mortgage Trust $ 194,087 303,356 0.39% 8/25/2035 4.58 Capital Auto Receivables Asset Trust $ 193,977 245,000 0.39% 3/15/2011 5.52 6-09 PQ 4132 Not FDIC or NCUA Insured May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee Not Insured by any Federal Government Agency Please note that coupon rates are not available for all securities displayed on this report. High Quality Intermediate-Term Bond Fund As of June 30, 2009 SCHEDULE OF INVESTMENTS ISSUER SHARES/ PAR VALUE MARKET VALUE % TOTAL NET ASSETS MATURITY DATE COUPON RATE GMAC Mortgage Corp Loan Trust $ 187,817 303,084 0.38% 10/25/2036 5.75 Banc of America Commercial Mortgage Inc $ 186,481 250,000 0.38% 1/15/2049 5.45 Freddie Mac Non Gold Pool $ 184,696 177,436 0.38% 12/1/2035 5.44 Merrill Lynch & Co Inc $ 183,378 200,000 0.37% 11/1/2011 1.23 International Lease Finance Corp $ 182,409 200,000 0.37% 5/24/2010 0.88 WaMu Mortgage Pass Through Certificates $ 181,777 229,538 0.37% 11/25/2045 0.69 Saxon Asset Securities Trust $ 180,577 250,000 0.37% 3/25/2035 0.83 Rockies Express Pipeline LLC $ 180,017 180,000 0.37% 8/20/2009 4.50 Wachovia Bank Commercial Mortgage Trust $ 177,675 345,000 0.36% 7/15/2045 5.80 First NLC Trust $ 175,885 189,782 0.36% 9/25/2035 0.61 Banc of America Commercial Mortgage Inc $ 175,034 190,000 0.36% 10/10/2045 5.31 Bear Stearns Asset Backed Securities Trust $ 174,359 525,000 0.35% 8/25/2036 0.47 Telecom Italia Capital SA $ 173,307 195,000 0.35% 11/15/2033 6.38 Merrill Lynch & Co Inc $ 172,945 175,000 0.35% 2/5/2010 1.24 Fannie Mae Pool $ 172,518 168,432 0.35% 3/1/2036 3.50 National City Capital Trust II $ 170,280 9,000 0.35% JP Morgan Mortgage Trust $ 163,512 250,000 0.33% 4/25/2037 5.68 Morgan Stanley REREMIC Trust $ 162,806 190,000 0.33% 8/12/2045 5.81 Credit Suisse Mortgage Capital Certificates $ 162,432 350,000 0.33% 2/15/2041 6.42 Anheuser-Busch InBev Worldwide Inc $ 158,580 145,000 0.32% 1/15/2019 7.75 International Lease Finance Corp $ 157,946 170,000 0.32% 1/15/2010 1.53 Fannie Mae Whole Loan $ 157,689 163,249 0.32% 5/25/2035 0.51 Residential Asset Securities Corp $ 154,562 305,000 0.31% 9/25/2036 0.46 GMAC Commercial Mortgage Securities Inc $ 151,110 146,301 0.31% 9/15/2035 6.96 JP Morgan Chase Commercial Mortgage Securities Corp $ 150,579 285,000 0.31% 6/12/2041 5.63 First Union National Bank Commercial Mortgage Securities Inc $ 150,449 150,000 0.31% 2/12/2034 6.14 Fannie Mae $ 150,168 155,000 0.31% 7/1/2039 4.00 WFS Financial Owner Trust $ 149,899 150,000 0.30% 5/17/2013 4.50 Telefonica Emisiones SAU $ 144,943 155,000 0.29% 2/4/2013 1.35 Telecom Italia Capital SA $ 143,352 150,000 0.29% 7/18/2011 1.72 Goldman Sachs Group Inc/The $ 143,235 150,000 0.29% 2/6/2012 1.19 Freddie Mac Non Gold Pool $ 142,105 137,146 0.29% 5/1/2037 5.64 Vodafone Group PLC $ 141,530 145,000 0.29% 6/15/2011 0.97 WAMU Asset-Backed Certificates $ 140,990 340,000 0.29% 5/25/2037 0.48 GSR Mortgage Loan Trust $ 140,896 531,777 0.29% 8/25/2046 0.57 Lincoln National Corp $ 140,742 145,000 0.29% 8/27/2012 5.65 Banc of America Commercial Mortgage Inc $ 140,388 200,000 0.29% 2/10/2051 5.49 Lehman XS Trust $ 140,001 144,499 0.28% 9/25/2035 0.51 Credit Suisse Mortgage Capital Certificates $ 139,947 200,000 0.28% 9/15/2039 5.47 Credit Suisse Mortgage Capital Certificates $ 138,637 300,000 0.28% 9/15/2040 5.87 Fannie Mae $ 136,886 139,350 0.28% 3/25/2035 0.56 Rabobank Nederland NV $ 136,838 123,000 0.28% 12/29/2049 11.00 Unicredit Luxembourg Finance SA $ 134,352 150,000 0.27% 10/31/2017 6.00 Merrill Lynch & Co Inc $ 133,522 150,000 0.27% 6/5/2012 0.87 6-09 PQ 4132 Not FDIC or NCUA Insured May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee Not Insured by any Federal Government Agency Please note that coupon rates are not available for all securities displayed on this report.<br><br> High Quality Intermediate-Term Bond Fund As of June 30, 2009 SCHEDULE OF INVESTMENTS ISSUER SHARES/ PAR VALUE MARKET VALUE % TOTAL NET ASSETS MATURITY DATE COUPON RATE Fannie Mae $ 130,223 121,788 0.26% 2/25/2047 6.50 Citigroup Inc $ 127,155 125,000 0.26% 5/22/2019 8.50 Credit Suisse Mortgage Capital Certificates $ 126,993 5,833,195 0.26% 12/15/2039 0.86 Anheuser-Busch InBev Worldwide Inc $ 126,115 125,000 0.26% 11/15/2014 5.38 Credit Suisse/New York NY $ 125,062 125,000 0.25% 7/2/2012 3.45 Morgan Stanley $ 124,434 120,000 0.25% 5/13/2019 7.30 Credit Suisse Mortgage Capital Certificates $ 124,078 170,000 0.25% 6/15/2038 6.02 Erac USA Finance Co $ 124,016 125,000 0.25% 8/28/2009 0.91 JP Morgan Mortgage Trust $ 122,804 220,000 0.25% 4/25/2037 5.68 Option One Mortgage Loan Trust $ 119,817 183,485 0.24% 7/25/2036 0.41 Greenwich Capital Commercial Funding Corp $ 119,441 230,000 0.24% 7/10/2038 6.11 Vodafone Group PLC $ 118,002 120,000 0.24% 6/10/2019 5.45 Bear Stearns Commercial Mortgage Securities $ 116,602 114,439 0.24% 5/20/2030 7.00 Fannie Mae $ 116,528 109,448 0.24% 3/25/2039 6.80 WaMu Mortgage Pass Through Certificates $ 113,953 147,789 0.23% 12/25/2027 0.95 Bella Vista Mortgage Trust $ 111,965 244,055 0.23% 1/22/2045 0.61 Capital One Financial Corp $ 110,488 110,000 0.22% 9/15/2011 5.70 JP Morgan Mortgage Acquisition Corp $ 110,452 139,387 0.22% 3/25/2037 0.39 Comcast Corp $ 109,812 110,000 0.22% 7/1/2039 6.55 Citigroup/Deutsche Bank Commercial Mortgage Trust $ 109,205 7,281,285 0.22% 10/15/2048 0.62 Korea Development Bank/Republic of Korea $ 109,184 110,000 0.22% 10/20/2009 1.51 JP Morgan Mortgage Acquisition Corp $ 104,185 290,000 0.21% 3/25/2037 0.46 Fannie Mae $ 102,649 104,038 0.21% 1/25/2023 0.51 Freddie Mac $ 101,901 104,374 0.21% 6/15/2023 0.77 Xcel Energy Inc 7.60% $ 101,320 4,000 0.21% Santander Finance Preferred SA Unipersonal 6.00% $ 100,125 8,900 0.20% Hyundai Auto Receivables Trust $ 97,401 97,675 0.20% 1/17/2012 0.72 Delhaize America Inc $ 97,115 80,000 0.20% 4/15/2031 9.00 Carolina Power & Light Co $ 96,617 75,000 0.20% 9/15/2021 8.63 Masco Corp $ 96,458 100,000 0.20% 3/12/2010 0.94 Countrywide Asset-Backed Certificates $ 96,180 203,703 0.20% 1/25/2034 1.38 Ginnie Mae $ 95,929 2,072,378 0.20% 2/16/2047 1.07 Merrill Lynch/Countrywide Commercial Mortgage Trust $ 94,847 425,000 0.19% 6/12/2050 5.94 Fannie Mae $ 92,456 93,441 0.19% 2/25/2032 0.61 Commercial Mortgage Pass Through Certificates $ 92,401 100,000 0.19% 12/10/2046 5.25 PLC Capital Trust V $ 91,840 5,600 0.19% Credit Suisse Mortgage Capital Certificates $ 91,792 4,891,512 0.19% 9/15/2039 0.77 Great America Leasing Receivables $ 91,691 90,000 0.19% 9/15/2011 5.39 SLM Corp $ 90,765 100,000 0.18% 7/26/2010 1.25 Oncor Electric Delivery Co $ 90,397 85,000 0.18% 5/1/2032 7.00 Baltimore Gas & Electric Co $ 90,142 90,000 0.18% 10/1/2016 5.90 Ginnie Mae $ 89,551 1,782,585 0.18% 3/16/2047 0.82 Weatherford International Ltd $ 88,231 75,000 0.18% 3/1/2019 9.63 HRPT Properties Trust $ 87,094 100,000 0.18% 3/16/2011 1.22 United States Treasury Note/Bond $ 87,047 90,000 0.18% 5/15/2019 3.13 6-09 PQ 4132 Not FDIC or NCUA Insured May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee Not Insured by any Federal Government Agency Please note that coupon rates are not available for all securities displayed on this report. High Quality Intermediate-Term Bond Fund As of June 30, 2009 SCHEDULE OF INVESTMENTS ISSUER SHARES/ PAR VALUE MARKET VALUE % TOTAL NET ASSETS MATURITY DATE COUPON RATE AmeriCredit Automobile Receivables Trust $ 86,579 88,634 0.18% 4/6/2012 0.34 Comcast Corp $ 84,228 85,000 0.17% 7/1/2019 5.70 Fannie Mae $ 84,224 85,215 0.17% 11/25/2022 0.56 Countrywide Asset-Backed Certificates $ 83,953 223,555 0.17% 4/25/2036 5.39 Ispat Inland ULC $ 83,819 80,000 0.17% 4/1/2014 9.75 CDC Mortgage Capital Trust $ 83,443 143,893 0.17% 6/25/2034 1.17 Bear Stearns Asset Backed Securities Trust $ 81,107 148,558 0.17% 3/25/2034 0.91 GE Capital Commercial Mortgage Corp $ 80,961 10,772,972 0.16% 5/10/2014 0.37 Residential Asset Mortgage Products Inc $ 80,532 97,388 0.16% 7/25/2035 0.58 Structured Asset Securities Corp $ 80,470 325,000 0.16% 6/25/2036 5.50 Freddie Mac $ 80,317 81,505 0.16% 2/15/2030 0.67 Ford Credit Auto Owner Trust $ 79,861 90,000 0.16% 10/15/2012 5.60 CBA Capital Trust II $ 79,800 120,000 0.16% 3/15/2036 6.02 WR Berkley Corp $ 79,540 115,000 0.16% 2/15/2037 6.25 Oncor Electric Delivery Co $ 79,142 75,000 0.16% 5/1/2012 6.38 Aetna Inc $ 78,816 85,000 0.16% 12/15/2037 6.75 Bank One Capital VI $ 78,200 3,400 0.16% Brandywine Operating Partnership LP $ 77,072 79,000 0.16% 12/15/2010 5.63 Countrywide Asset-Backed Certificates $ 76,869 195,884 0.16% 8/25/2036 5.51 Citigroup Commercial Mortgage Trust $ 76,283 4,380,740 0.16% 10/15/2049 0.71 Telecom Italia Capital SA $ 76,027 75,000 0.15% 6/18/2019 7.18 Chase Mortgage Finance Corp $ 75,241 119,468 0.15% 7/25/2037 4.06 Commercial Mortgage Pass Through Certificates $ 75,081 425,000 0.15% 12/10/2049 6.01 COX Communications Inc $ 73,837 70,000 0.15% 3/15/2011 6.75 Telecom Italia Capital SA $ 73,544 75,000 0.15% 11/15/2013 5.25 Citigroup/Deutsche Bank Commercial Mortgage Trust $ 73,540 6,588,215 0.15% 12/11/2049 0.51 Verizon Communications Inc $ 72,820 70,000 0.15% 4/1/2019 6.35 Deutsche Bank Capital Funding Trust X $ 71,188 3,700 0.14% Fannie Mae Pool $ 70,382 68,126 0.14% 12/1/2034 4.31 Rogers Wireless Inc $ 69,672 65,000 0.14% 3/1/2014 6.38 Marriott Vacation Club Owner Trust $ 69,054 87,062 0.14% 5/20/2029 5.52 Prudential Financial Inc $ 68,728 70,000 0.14% 6/15/2019 7.38 Fannie Mae $ 68,046 67,934 0.14% 2/25/2018 0.61 SACO I Inc $ 67,665 156,262 0.14% 6/25/2036 0.45 Credit Suisse Mortgage Capital Certificates $ 67,460 150,000 0.14% 2/15/2040 5.42 USB Capital XII $ 67,328 3,200 0.14% Telecom Italia Capital SA $ 67,256 70,000 0.14% 2/1/2011 1.51 PartnerRe Ltd 6.50% $ 65,967 3,300 0.13% Morgan Stanley Capital I $ 65,782 270,000 0.13% 4/12/2049 5.81 First Union National Bank Commercial Mortgage Securities Inc $ 64,469 65,000 0.13% 5/17/2032 8.09 PPL Capital Funding Inc $ 63,206 2,600 0.13% Countrywide Asset-Backed Certificates $ 62,621 216,846 0.13% 6/25/2021 6.09 Prudential PLC 6.50% $ 62,475 3,500 0.13% Oncor Electric Delivery Co $ 62,433 60,000 0.13% 9/1/2013 5.95 6-09 PQ 4132 Not FDIC or NCUA Insured May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee Not Insured by any Federal Government Agency Please note that coupon rates are not available for all securities displayed on this report. High Quality Intermediate-Term Bond Fund As of June 30, 2009 SCHEDULE OF INVESTMENTS ISSUER SHARES/ PAR VALUE MARKET VALUE % TOTAL NET ASSETS MATURITY DATE COUPON RATE GE Capital Commercial Mortgage Corp $ 62,392 195,000 0.13% 11/10/2045 5.51 Southwest Airlines Co 2007-1 Pass Through Trust $ 61,956 66,556 0.13% 8/1/2022 6.15 Option One Mortgage Loan Trust $ 60,400 101,935 0.12% 5/25/2034 1.36 Delphi Financial Group Inc 7.38% $ 60,280 4,000 0.12% Export-Import Bank of Korea $ 59,993 60,000 0.12% 8/12/2009 4.50 First Franklin Mortgage Loan Asset Backed Certificates $ 58,987 59,876 0.12% 9/25/2035 0.58 Fleet Capital Trust VIII $ 58,400 3,200 0.12% WaMu Mortgage Pass Through Certificates $ 57,955 75,000 0.12% 5/25/2035 4.68 WAMU Commercial Mortgage Securities Trust $ 57,303 58,956 0.12% 1/25/2035 3.83 JP Morgan Chase Commercial Mortgage Securities Corp $ 55,123 115,000 0.11% 6/15/2049 6.01 Capital One Auto Finance Trust $ 54,893 55,268 0.11% 7/15/2011 0.33 LB-UBS Commercial Mortgage Trust $ 54,446 75,000 0.11% 7/15/2040 5.86 AMB Property Corp - Series M $ 54,000 3,000 0.11% Telefonica Europe BV $ 52,744 50,000 0.11% 9/15/2010 7.75 JP Morgan Chase Commercial Mortgage Securities Corp $ 52,194 230,000 0.11% 2/12/2051 6.40 Banc of America Funding Corp $ 52,037 276,392 0.11% 7/20/2036 0.60 Yum!<br><br> Brands Inc $ 51,445 50,000 0.10% 3/15/2018 6.25 Quest Diagnostics Inc $ 51,032 50,000 0.10% 7/1/2017 6.40 First-Citizens Home Equity Loan LLC $ 50,689 89,913 0.10% 9/15/2022 0.53 Capital One Bank USA NA $ 50,412 51,000 0.10% 6/13/2013 6.50 AutoZone Inc $ 49,875 50,000 0.10% 1/15/2015 5.75 Wells Fargo & Co $ 49,719 50,000 0.10% 8/20/2010 1.01 Fannie Mae Pool $ 48,748 45,711 0.10% 7/1/2037 6.50 ING Groep NV 8.50% $ 48,625 2,500 0.10% Pacific Life Insurance Co $ 48,526 50,000 0.10% 6/15/2039 9.25 Goldman Sachs Group Inc/The $ 47,521 50,000 0.10% 1/15/2017 5.63 Freddie Mac Gold Pool $ 47,051 43,793 0.10% 3/1/2029 6.50 CW Capital Cobalt Ltd $ 46,525 100,000 0.09% 7/15/2017 6.02 Altria Group Inc $ 45,858 40,000 0.09% 11/10/2018 9.70 Fannie Mae Pool $ 45,469 43,685 0.09% 7/1/2023 5.50 Anadarko Petroleum Corp $ 45,414 45,000 0.09% 6/15/2019 6.95 CBS Corp 7.25% $ 45,375 2,500 0.09% BRE Properties Inc - Series C $ 45,325 2,500 0.09% Comcast Corp 6.63% $ 45,318 2,100 0.09% Fannie Mae Pool $ 45,031 43,786 0.09% 6/1/2034 3.96 LB-UBS Commercial Mortgage Trust $ 45,001 185,000 0.09% 9/15/2045 6.46 Rio Tinto Finance USA Ltd $ 44,450 40,000 0.09% 5/1/2014 8.95 Goldman Sachs Group Inc/The $ 44,450 50,000 0.09% 10/1/2037 6.75 Banc of America Commercial Mortgage Inc $ 44,438 130,000 0.09% 7/10/2043 4.97 M&T Capital Trust IV $ 42,075 1,700 0.09% ING Groep NV 6.20% $ 41,524 2,800 0.08% CVS Pass-Through Trust $ 40,868 40,000 0.08% 7/10/2031 8.35 Structured Asset Mortgage Investments Inc $ 40,482 86,368 0.08% 9/25/2045 0.62 France Telecom SA $ 40,311 40,000 0.08% 7/8/2014 4.38 LB-UBS Commercial Mortgage Trust $ 40,000 250,000 0.08% 7/17/2040 6.45 6-09 PQ 4132 Not FDIC or NCUA Insured May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee Not Insured by any Federal Government Agency Please note that coupon rates are not available for all securities displayed on this report. High Quality Intermediate-Term Bond Fund As of June 30, 2009 SCHEDULE OF INVESTMENTS ISSUER SHARES/ PAR VALUE MARKET VALUE % TOTAL NET ASSETS MATURITY DATE COUPON RATE CS First Boston Mortgage Securities Corp $ 39,846 40,000 0.08% 9/15/2041 8.11 Specialty Underwriting & Residential Finance $ 39,770 80,575 0.08% 2/25/2035 1.08 Merrill Lynch Capital Trust II $ 38,448 2,400 0.08% Fannie Mae Pool $ 38,266 35,883 0.08% 7/1/2037 6.50 Regency Centers Corp 7.25% $ 38,120 2,000 0.08% JP Morgan Chase Commercial Mortgage Securities Corp $ 37,061 65,000 0.08% 5/15/2045 5.44 AMB Property Corp - Series P $ 36,860 2,000 0.07% Wells Fargo Capital IX $ 36,480 1,900 0.07% Anadarko Petroleum Corp $ 36,393 35,000 0.07% 6/15/2039 7.95 Countrywide Asset-Backed Certificates $ 36,334 49,265 0.07% 11/25/2035 0.59 HRPT Properties Trust - Series B $ 35,840 2,000 0.07% Telefonica Emisiones SAU $ 35,576 35,000 0.07% 1/15/2015 4.95 France Telecom SA $ 35,253 35,000 0.07% 7/8/2019 5.38 American Airlines Pass Through Trust 2009-1A $ 35,000 35,000 0.07% 7/2/2019 10.38 Countrywide Alternative Loan Trust $ 34,967 77,604 0.07% 5/25/2035 0.53 Morgan Stanley Capital Trust III $ 34,560 1,800 0.07% Wachovia Bank Commercial Mortgage Trust $ 34,121 4,419,578 0.07% 10/15/2041 0.59 COX Communications Inc $ 33,449 30,000 0.07% 3/1/2039 8.38 WaMu Mortgage Pass Through Certificates $ 33,243 72,616 0.07% 7/25/2045 0.60 Fannie Mae Pool $ 33,119 31,058 0.07% 2/1/2038 6.50 Wachovia Bank Commercial Mortgage Trust $ 32,582 4,232,333 0.07% 11/15/2035 0.38 Wells Fargo Home Equity Trust $ 31,599 62,466 0.06% 4/25/2034 0.81 Bear Stearns Commercial Mortgage Securities $ 31,331 31,555 0.06% 11/11/2035 3.97 Vodafone Group PLC $ 31,014 30,000 0.06% 2/15/2010 7.75 Telefonica Emisiones SAU $ 30,930 30,000 0.06% 7/15/2019 5.88 JP Morgan Chase Commercial Mortgage Securities Corp $ 30,576 100,000 0.06% 9/12/2037 5.29 Dell Inc $ 30,538 30,000 0.06% 6/15/2012 3.38 Mastr Asset Backed Securities Trust $ 30,416 100,216 0.06% 8/25/2033 2.79 International Game Technology $ 30,269 30,000 0.06% 6/15/2019 7.50 Soundview Home Equity Loan Trust $ 30,225 30,782 0.06% 7/25/2036 0.40 Ginnie Mae I pool $ 30,148 28,684 0.06% 12/15/2032 6.00 Korea East-West Power Co Ltd $ 30,066 30,000 0.06% 4/21/2011 4.88 GE Capital Commercial Mortgage Corp $ 29,570 29,323 0.06% 8/11/2036 4.97 Viacom Inc $ 29,078 1,400 0.06% Morgan Stanley Capital Trust IV $ 28,755 1,500 0.06% Kraft Foods Inc $ 26,944 25,000 0.05% 6/1/2012 6.25 Magellan Midstream Partners LP $ 25,663 25,000 0.05% 7/15/2019 6.55 CS First Boston Mortgage Securities Corp $ 25,490 1,921,297 0.05% 11/15/2037 0.42 Bear Stearns Commercial Mortgage Securities $ 25,469 2,851,175 0.05% 5/11/2039 0.60 Dominion Resources Inc/VA $ 25,400 1,000 0.05% Fannie Mae Pool $ 25,209 24,792 0.05% 7/1/2034 4.31 Morgan Stanley Dean Witter Capital I $ 24,994 24,904 0.05% 2/15/2031 6.54 Indymac Index Mortgage Loan Trust $ 24,680 54,206 0.05% 4/25/2035 0.54 Berkley W R Capital Trust $ 24,640 1,100 0.05% Commercial Mortgage Pass Through Certificates $ 24,614 3,857,770 0.05% 12/10/2046 0.10 6-09 PQ 4132 Not FDIC or NCUA Insured May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee Not Insured by any Federal Government Agency Please note that coupon rates are not available for all securities displayed on this report. High Quality Intermediate-Term Bond Fund As of June 30, 2009 SCHEDULE OF INVESTMENTS ISSUER SHARES/ PAR VALUE MARKET VALUE % TOTAL NET ASSETS MATURITY DATE COUPON RATE WaMu Mortgage Pass Through Certificates $ 24,099 51,844 0.05% 1/25/2045 0.62 Fannie Mae Pool $ 23,961 22,462 0.05% 8/1/2036 6.50 Freddie Mac Gold Pool $ 23,348 22,587 0.05% 5/1/2038 5.50 MSDWCC Heloc Trust $ 23,090 55,120 0.05% 7/25/2017 0.50 LB-UBS Commercial Mortgage Trust $ 22,363 1,379,941 0.05% 3/15/2036 1.23 WaMu Mortgage Pass Through Certificates $ 22,316 168,565 0.05% 1/25/2045 0.84 Fannie Mae Pool $ 21,947 20,581 0.04% 1/1/2038 6.50 Freddie Mac Gold Pool $ 21,619 19,954 0.04% 10/1/2030 7.50 United States Treasury Note/Bond $ 21,617 25,000 0.04% 2/15/2039 3.50 SunTrust Capital IX $ 21,250 1,000 0.04% Morgan Stanley Capital I $ 21,180 21,211 0.04% 4/15/2033 7.11 Saxon Asset Securities Trust $ 20,807 72,495 0.04% 3/25/2035 2.01 Long Beach Mortgage Loan Trust $ 20,550 40,000 0.04% 6/25/2034 0.84 Fannie Mae Pool $ 20,014 19,589 0.04% 7/1/2035 5.00 JP Morgan Chase Commercial Mortgage Securities Corp $ 19,911 1,890,007 0.04% 1/15/2042 0.32 Everest Re Capital Trust II $ 19,900 1,000 0.04% Morgan Stanley Capital I $ 19,641 2,751,021 0.04% 12/15/2043 0.15 Freddie Mac Gold Pool $ 19,506 18,176 0.04% 5/1/2031 6.50 Time Warner Cable Inc $ 19,466 20,000 0.04% 6/15/2039 6.75 Adjustable Rate Mortgage Trust $ 18,394 35,186 0.04% 2/25/2035 0.88 Ameriquest Mortgage Securities Inc $ 18,079 23,152 0.04% 3/25/2035 0.61 Freddie Mac Gold Pool $ 17,866 16,621 0.04% 5/1/2032 6.50 Chase Funding Mortgage Loan Asset-Backed Certificates $ 17,516 65,559 0.04% 9/25/2033 1.06 Wachovia Bank Commercial Mortgage Trust $ 17,320 80,000 0.04% 12/15/2043 5.48 KeyCorp Capital IX $ 16,970 1,000 0.03% Rio Tinto Finance USA Ltd $ 16,673 15,000 0.03% 5/1/2019 9.00 Structured Asset Mortgage Investments Inc $ 16,190 63,373 0.03% 5/25/2045 0.61 EI Du Pont de Nemours & Co $ 15,881 15,000 0.03% 11/15/2012 4.75 PS Business Parks Inc - Series P $ 15,795 900 0.03% Ginnie Mae I pool $ 15,743 14,979 0.03% 7/15/2032 6.00 Ginnie Mae II pool $ 15,593 14,479 0.03% 10/20/2028 6.50 Consolidated Edison Co of New York Inc $ 15,580 15,000 0.03% 2/1/2013 4.88 Fannie Mae Pool $ 15,430 14,357 0.03% 12/1/2031 6.50 Bear Stearns Asset Backed Securities Trust $ 15,413 43,947 0.03% 2/25/2034 0.96 JP Morgan Chase Commercial Mortgage Securities Corp $ 15,059 50,000 0.03% 2/12/2051 6.30 Rio Tinto Finance USA Ltd $ 15,009 15,000 0.03% 7/15/2018 6.50 WaMu Mortgage Pass Through Certificates $ 14,593 28,490 0.03% 4/25/2045 0.54 First Union National Bank Commercial Mortgage Securities Inc $ 14,503 14,440 0.03% 2/12/2034 5.59 Impac CMB Trust $ 14,488 24,727 0.03% 10/25/2033 1.31 Freddie Mac Gold Pool $ 13,541 12,496 0.03% 1/1/2032 7.00 Nomura Asset Acceptance Corp $ 13,004 18,700 0.03% 2/25/2035 0.66 Impac CMB Trust $ 12,769 41,421 0.03% 4/25/2035 0.62 Indymac Index Mortgage Loan Trust $ 12,697 19,196 0.03% 4/25/2034 0.91 GSR Mortgage Loan Trust $ 12,679 33,372 0.03% 12/25/2035 0.67 6-09 PQ 4132 Not FDIC or NCUA Insured May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee Not Insured by any Federal Government Agency Please note that coupon rates are not available for all securities displayed on this report.<br><br> High Quality Intermediate-Term Bond Fund As of June 30, 2009 SCHEDULE OF INVESTMENTS ISSUER SHARES/ PAR VALUE MARKET VALUE % TOTAL NET ASSETS MATURITY DATE COUPON RATE Ginnie Mae I pool $ 12,630 11,557 0.03% 7/15/2031 7.00 Telephone & Data Systems Inc 7.60% $ 12,330 600 0.03% GMAC Commercial Mortgage Securities Inc $ 12,193 896,381 0.02% 3/10/2038 1.01 JP Morgan Chase Commercial Mortgage Securities Corp $ 11,874 801,037 0.02% 1/12/2039 1.26 Regency Centers Corp 7.45% $ 11,856 600 0.02% Freddie Mac Gold Pool $ 11,699 10,777 0.02% 12/1/2030 7.00 LB-UBS Commercial Mortgage Trust $ 11,658 533,879 0.02% 3/15/2036 0.49 GE Capital Commercial Mortgage Corp $ 11,605 1,191,850 0.02% 3/10/2040 0.76 Merrill Lynch Mortgage Trust $ 11,488 1,305,646 0.02% 2/12/2042 0.63 Morgan Stanley Capital I $ 11,090 575,127 0.02% 1/13/2041 1.18 Freddie Mac Gold Pool $ 10,930 10,115 0.02% 4/1/2032 7.50 KeySpan Corp $ 10,628 10,000 0.02% 11/15/2010 7.63 CS First Boston Mortgage Securities Corp $ 10,323 864,667 0.02% 7/15/2036 0.76 Greenpoint Mortgage Funding Trust $ 10,316 60,154 0.02% 6/25/2045 0.61 Dell Inc $ 10,207 10,000 0.02% 6/15/2019 5.88 Falconbridge Ltd $ 9,942 10,000 0.02% 6/5/2012 7.35 Kinder Morgan Energy Partners LP $ 9,687 10,000 0.02% 1/15/2038 6.95 Suncor Energy Inc $ 9,414 10,000 0.02% 6/15/2038 6.50 Freddie Mac Gold Pool $ 9,024 8,460 0.02% 12/1/2015 7.50 Structured Adjustable Rate Mortgage Loan Trust $ 8,854 194,851 0.02% 8/25/2034 1.01 Fannie Mae Pool $ 8,558 8,027 0.02% 10/1/2016 6.00 Specialty Underwriting & Residential Finance $ 8,440 8,686 0.02% 3/25/2036 0.54 Ginnie Mae II pool $ 8,323 7,753 0.02% 2/20/2032 6.50 Ameriquest Mortgage Securities Inc $ 7,948 8,282 0.02% 7/25/2035 0.54 Freddie Mac Gold Pool $ 7,709 7,184 0.02% 2/1/2032 6.50 LB-UBS Commercial Mortgage Trust $ 7,311 7,220 0.01% 6/15/2020 6.06 Freddie Mac Gold Pool $ 7,292 6,795 0.01% 10/1/2031 6.50 CS First Boston Mortgage Securities Corp $ 6,439 784,109 0.01% 3/15/2036 1.27 Impac CMB Trust $ 6,387 42,444 0.01% 4/25/2035 0.74 LB-UBS Commercial Mortgage Trust $ 6,249 581,610 0.01% 8/15/2036 0.70 Chase Funding Mortgage Loan Asset-Backed Certificates $ 6,100 8,333 0.01% 12/25/2033 0.77 British Telecommunications PLC $ 5,543 5,000 0.01% 12/15/2030 9.62 Merck & Co Inc/NJ $ 5,136 5,000 0.01% 6/30/2039 5.85 Residential Asset Securities Corp $ 5,106 5,353 0.01% 7/25/2035 0.58 Charles Schwab Corp/The $ 5,086 5,000 0.01% 6/1/2014 4.95 Freddie Mac Gold Pool $ 5,084 4,795 0.01% 12/1/2015 6.50 CS First Boston Mortgage Securities Corp $ 4,624 822,481 0.01% 5/15/2036 0.43 Freddie Mac Gold Pool $ 4,153 3,874 0.01% 5/1/2032 6.50 New Century Home Equity Loan Trust $ 3,694 8,648 0.01% 3/25/2035 0.60 Freddie Mac Gold Pool $ 3,022 2,790 0.01% 12/1/2030 7.50 Ginnie Mae II pool $ 2,713 2,527 0.01% 5/20/2032 6.50 Liberty Mutual Group Inc $ 2,644 3,000 0.01% 9/1/2012 7.25 Wachovia Bank Commercial Mortgage Trust $ 2,388 674,867 0.00% 1/15/2041 0.34 Ginnie Mae II pool $ 2,048 1,817 0.00% 8/20/2029 8.00 Prudential PLC 6.75% $ 1,830 100 0.00% 6-09 PQ 4132 Not FDIC or NCUA Insured May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee Not Insured by any Federal Government Agency Please note that coupon rates are not available for all securities displayed on this report. High Quality Intermediate-Term Bond Fund As of June 30, 2009 SCHEDULE OF INVESTMENTS ISSUER SHARES/ PAR VALUE MARKET VALUE % TOTAL NET ASSETS MATURITY DATE COUPON RATE Popular ABS Mortgage Pass-Through Trust $ 1,351 1,363 0.00% 11/25/2035 0.57 Option One Mortgage Loan Trust $ 793 14,941 0.00% 2/25/2035 1.31 Freddie Mac Gold Pool $ 771 701 0.00% 11/1/2030 8.00 JP Morgan Chase Commercial Mortgage Securities Corp $ 0 4 0.00% 10/12/2035 1.43 $ 49,148,565 Total Net Assets $ 65,718,550 -16,569,985 Total Market Value Cash 133.71% -33.71% 100.00% 6-09 PQ 4132 Not FDIC or NCUA Insured May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee Not Insured by any Federal Government Agency Please note that coupon rates are not available for all securities displayed on this report. High Quality Intermediate-Term Bond Fund As of June 30, 2009 Insurance products and plan administrative services are provided by Principal Life Insurance Company.<br><br> Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities sold or services offered by a Princor® Registered Representative are offered through Princor Financial Services Corporation 800-547-7754, member SIPC, and/or independent broker/dealers.<br><br> Principal Funds Distributor and Princor are members o f the Principal Financial Group®, Des Moines, IA 50392. Certain investment options may not be available in all states or U.S. commonwealths.<br><br> Before investing in mutual funds, investors should carefully consider the investment objectives, risks, charges and expenses of the funds. This and other information is contained in the free prospectus, which can be obtained from your local representative. Please read the pr ospectus carefully before investing.<br><br> While the underlying securities of this investment option may be guaranteed by the U.S. government as to timely payment of prin cipal and interest, this investment option is not guaranteed. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise.<br><br> Neither the principal of the bond investment options nor their yields are guaranteed by the U.S. government. Portfolio holdings may not reflect the current portfolio composition.<br><br> The holdings listed do not constitute a recommendation t o purchase or sell a particular security. A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment wh en you sell your shares may be more or less than the original cost. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to re al estate exposure.<br><br> Information is current as of the creation of this piece. Keep in mind that portfolio holdings are subject to risk. 6-09 PQ 4132 Not FDIC or NCUA Insured May Lose Value, Not a Deposit, No Bank or Credit Union Guarantee Not Insured by any Federal Government Agency Please note that coupon rates are not available for all securities displayed on this report.<br><br>

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