MM1290B 05 178035 MM1291semi
User Manual: 178035
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STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 1
Amounts in thousands, except per share amounts
Balanced
Account
Bond Market
Index Account
Core Plus
Bond Account(a)
Investment in securities--at cost ............................................................... $ 41,817 $ 2,174,990 $ 324,853
Assets
Investment in securities--at value ............................................................... $ 44,307 $ 2,238,612 $ 329,855
Cash .............................................................................................. 1 133 17
Receivables:
Dividends and interest...................................................................... 128 11,045 1,939
Fund shares sold ............................................................................ 3 20 40
Investment securities sold .................................................................. 125 31,365 3,326
Variation margin on financial derivative instruments .....................................
–
–
5
Total Assets 44,564 2,281,175 335,182
Liabilities
Accrued management and investment advisory fees............................................. 21 419 113
Accrued directors' expenses ...................................................................... 1 7 2
Accrued other expenses .......................................................................... 7 16 9
Payables:
Fund shares redeemed ...................................................................... 22 5,882 394
Investment securities purchased ........................................................... 1,510 184,026 28,528
Short sales (proceeds received $0, $510 and $0) ..........................................
–
510
–
Variation margin on financial derivative instruments .....................................
–
–
85
Total Liabilities 1,561 190,860 29,131
Net Assets Applicable to Outstanding Shares ................................................. $ 43,003 $ 2,090,315 $ 306,051
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 36,497 $ 1,972,753 $ 324,443
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 1,274 55,963 12,954
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... 2,742 (2,023) (36,564)
N
et unrealized appreciation (depreciation) of investments ...................................... 2,490 63,622 5,218
Total Net Assets $ 43,003 $ 2,090,315 $ 306,051
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 100,000 200,000 300,000
Net Asset Value Per Share:
Class 1: Net Assets ............................................................................... $ 43,003 $ 2,090,315 $ 306,009
Shares issued and outstanding ............................................................. 2,375 194,880 26,216
Net Asset Value per share .................................................................. $ 18.11 $ 10.73 $ 11.67
Class 2: Net Assets ............................................................................... N/A N/A $ 42
Shares issued and outstanding ............................................................. 4
Net Asset Value per share .................................................................. $ 11.64
(a) Effective May 1, 2016, Bond & Mortgage Securities Account changed its name to Core Plus Bond Account.
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 2
Amounts in thousands, except per share amounts
Diversified
Balanced
Account
Diversified
Balanced
Managed
Volatility
Account
Diversified
Growth Account
Investment in affiliated Accounts--at cost ..................................................... $ 903,032 $ 150,269 $ 2,914,503
Assets
Investment in affiliated Accounts--at value ...................................................... $ 1,079,026 $ 154,818 $ 3,400,517
Receivables:
Investment securities sold .................................................................. 3,655 275 6,429
Total Assets 1,082,681 155,093 3,406,946
Liabilities
Accrued management and investment advisory fees............................................. 44 6 138
Accrued distribution fees ......................................................................... 220 32 692
Accrued directors' expenses ...................................................................... 5 1 10
Accrued other expenses .......................................................................... 4 4 5
Payables:
Fund shares redeemed ...................................................................... 3,655 275 6,429
Total Liabilities 3,928 318 7,274
Net Assets Applicable to Outstanding Shares ................................................. $ 1,078,753 $ 154,775 $ 3,399,672
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 880,388 $ 148,494 $ 2,838,051
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 11,807 844 37,398
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... 10,564 888 38,209
N
et unrealized appreciation (depreciation) of investments ...................................... 175,994 4,549 486,014
Total Net Assets $ 1,078,753 $ 154,775 $ 3,399,672
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 250,000 200,000 300,000
Net Asset Value Per Share:
Class 2: Net Assets ............................................................................... $ 1,078,753 $ 154,775 $ 3,399,672
Shares issued and outstanding ............................................................. 73,372 13,885 217,249
Net Asset Value per share .................................................................. $ 14.70 $ 11.15 $ 15.65
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 3
Amounts in thousands, except per share amounts
Diversified
Growth
Managed
Volatility
Account
Diversified
Income Account
Diversified
International
Account
Investment in securities--at cost ............................................................... $
–
$
–
$ 234,096
Investment in affiliated Accounts--at cost ..................................................... $ 280,847 $ 210,116 $
–
Assets
Investment in securities--at value ............................................................... $
–
$
–
$ 251,230
Investment in affiliated Accounts--at value ...................................................... 287,547 228,165
–
Receivables:
Dividends and interest......................................................................
–
–
1,318
Fund shares sold ............................................................................
–
–
242
Investment securities sold .................................................................. 148 2,485 1,957
Total Assets 287,695 230,650 254,747
Liabilities
Accrued management and investment advisory fees............................................. 12 9 179
Accrued distribution fees ......................................................................... 58 46
–
Accrued directors' expenses ...................................................................... 1 2 2
Accrued other expenses .......................................................................... 4 4 42
Cash overdraft ....................................................................................
–
–
64
Payables:
Deferred foreign tax ........................................................................
–
–
26
Fund shares redeemed ...................................................................... 148 2,485 302
Investment securities purchased ...........................................................
–
–
1,380
Total Liabilities 223 2,546 1,995
Net Assets Applicable to Outstanding Shares ................................................. $ 287,472 $ 228,104 $ 252,752
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 277,407 $ 206,774 $ 326,871
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 1,315 1,977 9,109
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... 2,050 1,304 (100,239)
N
et unrealized appreciation (depreciation) of investments ...................................... 6,700 18,049 17,108
N
et unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency ..........................................................................................
–
–
(97)
Total Net Assets $ 287,472 $ 228,104 $ 252,752
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 200,000 50,000 300,000
Net Asset Value Per Share:
Class 1: Net Assets ............................................................................... N/A N/A $ 251,427
Shares issued and outstanding ............................................................. 18,828
Net Asset Value per share .................................................................. $ 13.35
Class 2: Net Assets ............................................................................... $ 287,472 $ 228,104 $ 1,325
Shares issued and outstanding ............................................................. 25,738 18,382 99
Net Asset Value per share .................................................................. $ 11.17 $ 12.41 $ 13.44
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 4
Amounts in thousands, except per share amounts
Equity
Income Account
Government &
High Quality
Bond Account Income Account
Investment in securities--at cost ............................................................... $ 339,758 $ 258,622 $ 226,279
Assets
Investment in securities--at value ............................................................... $ 539,727 $ 260,938 $ 237,693
Cash ..............................................................................................
–
3 171
Receivables:
Dividends and interest...................................................................... 1,442 1,480 2,350
Fund shares sold ............................................................................ 84 82 5
Investment securities sold .................................................................. 3,137 1,253 833
Total Assets 544,390 263,756 241,052
Liabilities
Accrued management and investment advisory fees............................................. 219 111 101
Accrued distribution fees ......................................................................... 5 1 1
Accrued directors' expenses ...................................................................... 2 2 2
Accrued other expenses .......................................................................... 11 5 4
Payables:
Fund shares redeemed ...................................................................... 3,131 259 355
Total Liabilities 3,368 378 463
Net Assets Applicable to Outstanding Shares ................................................. $ 541,022 $ 263,378 $ 240,589
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 281,993 $ 270,204 $ 216,534
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 24,399 13,560 14,018
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... 34,661 (22,702) (1,377)
N
et unrealized appreciation (depreciation) of investments ...................................... 199,969 2,316 11,414
Total Net Assets $ 541,022 $ 263,378 $ 240,589
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 200,000 200,000 200,000
Net Asset Value Per Share:
Class 1: Net Assets ............................................................................... $ 517,419 $ 260,522 $ 237,371
Shares issued and outstanding ............................................................. 22,184 24,782 21,842
Net Asset Value per share .................................................................. $ 23.32 $ 10.51 $ 10.87
Class 2: Net Assets ............................................................................... $ 23,603 $ 2,856 $ 3,218
Shares issued and outstanding ............................................................. 1,020 272 298
Net Asset Value per share .................................................................. $ 23.13 $ 10.50 $ 10.81
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 5
Amounts in thousands, except per share amounts
International
Emerging
Markets Account
LargeCap
Growth Account
LargeCap
Growth
Account I
Investment in securities--at cost ............................................................... $ 81,392 $ 88,551 $ 189,547
Foreign currency--at cost ....................................................................... $73
$
–
$
–
Assets
Investment in securities--at value ............................................................... $ 86,233 $ 102,567 $ 239,869
Foreign currency--at value ....................................................................... 73
–
–
Cash ..............................................................................................
–
–
111
Deposits with counterparty .......................................................................
–
–
530
Receivables:
Dividends and interest...................................................................... 402 50 136
Expense reimbursement from Manager ....................................................
–
–
3
Fund shares sold ............................................................................ 7 63 9
Investment securities sold .................................................................. 723
–
2,016
Variation margin on financial derivative instruments .....................................
–
–
68
Prepaid professional fees ......................................................................... 11
–
–
Total Assets 87,449 102,680 242,742
Liabilities
Accrued management and investment advisory fees............................................. 87 58 152
Accrued custodian fees ........................................................................... 21
–
–
Accrued directors' expenses ...................................................................... 1 2 2
Accrued other expenses ..........................................................................
–
4 9
Cash overdraft .................................................................................... 9
–
–
Payables:
Fund shares redeemed ...................................................................... 86 55 443
Investment securities purchased ...........................................................
–
101 1,054
Total Liabilities 204 220 1,660
Net Assets Applicable to Outstanding Shares ................................................. $ 87,245 $ 102,460 $ 241,082
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 111,562 $ 93,741 $ 167,372
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 1,652 553 118
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... (30,811) (5,850) 23,284
N
et unrealized appreciation (depreciation) of investments ...................................... 4,841 14,016 50,308
N
et unrealized appreciation (depreciation) on translation of assets and liabilities in foreign
currency .......................................................................................... 1
–
–
Total Net Assets $ 87,245 $ 102,460 $ 241,082
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 200,000 300,000 200,000
Net Asset Value Per Share:
Class 1: Net Assets ............................................................................... $ 87,175 $ 101,343 $ 240,573
Shares issued and outstanding ............................................................. 6,441 4,167 9,429
Net Asset Value per share .................................................................. $ 13.53 $ 24.32 $ 25.51
Class 2: Net Assets ............................................................................... $ 70 $ 1,117 $ 509
Shares issued and outstanding ............................................................. 5 46 20
Net Asset Value per share .................................................................. $ 13.50 $ 24.20 $ 25.45
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 6
Amounts in thousands, except per share amounts
LargeCap
S&P 500
Index Account
LargeCap S&P
500 Managed
Volatility
Index Account
LargeCap
Value Account
Investment in securities--at cost ............................................................... $ 1,631,134 $ 174,730 $ 128,885
Assets
Investment in securities--at value ............................................................... $ 2,160,967 $ 183,547 $ 138,271
Cash .............................................................................................. 1
–
–
Receivables:
Dividends and interest...................................................................... 2,387 189 122
Fund shares sold ............................................................................ 173
–
11
Investment securities sold .................................................................. 1,677 137
–
Variation margin on financial derivative instruments ..................................... 404 22
–
Total Assets 2,165,609 183,895 138,404
Liabilities
Accrued management and investment advisory fees............................................. 441 68 66
Accrued directors' expenses ...................................................................... 6 2 2
Accrued other expenses .......................................................................... 8 6 4
Payables:
Fund shares redeemed ...................................................................... 4,918 162 69
Investment securities purchased ........................................................... 2,473 201
–
Options and swaptions contracts written (premiums received $0, $384 and $0) ..........
–
158
–
Total Liabilities 7,846 597 141
Net Assets Applicable to Outstanding Shares ................................................. $ 2,157,763 $ 183,298 $ 138,263
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 1,513,088 $ 173,011 $ 116,169
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 56,489 3,345 4,153
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... 58,142 (2,116) 8,555
N
et unrealized appreciation (depreciation) of investments ...................................... 530,044 9,058 9,386
Total Net Assets $ 2,157,763 $ 183,298 $ 138,263
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 300,000 100,000 200,000
Net Asset Value Per Share:
Class 1: Net Assets ............................................................................... $ 2,157,547 $ 183,298 $ 138,238
Shares issued and outstanding ............................................................. 144,418 15,770 4,685
Net Asset Value per share .................................................................. $ 14.94 $ 11.62 $ 29.51
Class 2: Net Assets ............................................................................... $ 216 N/A $ 25
Shares issued and outstanding ............................................................. 15 1
Net Asset Value per share .................................................................. $ 14.90 $ 29.42
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 7
Amounts in thousands, except per share amounts and Multi-Asset Income Account MidCap Account
Multi-Asset
Income Account
Principal Capital
Appreciation
Account
Investment in securities--at cost ............................................................... $ 430,989 $
–
$ 118,265
Investment in affiliated Accounts--at cost ..................................................... $
–
$ 21,014 $
–
Assets
Investment in securities--at value ............................................................... $ 613,281 $
–
$ 156,330
Investment in affiliated Accounts--at value ......................................................
–
20,493
–
Cash .............................................................................................. 275
–
–
Receivables:
Dividends and interest...................................................................... 281 80 186
Expense reimbursement from Manager ....................................................
–
5,165
–
Fund shares sold ............................................................................ 192
–
58
Investment securities sold .................................................................. 2,990
–
1,231
Total Assets 617,019 25,738 157,805
Liabilities
Accrued management and investment advisory fees............................................. 268 7 80
Accrued distribution fees ......................................................................... 3 23 2
Accrued directors' expenses ...................................................................... 4 914 2
Accrued professional fees ........................................................................
–
4,302
–
Accrued other expenses .......................................................................... 5 10 8
Payables:
Fund shares redeemed ...................................................................... 901
–
55
Investment securities purchased ........................................................... 1,443 80 917
Total Liabilities 2,624 5,336 1,064
Net Assets Applicable to Outstanding Shares ................................................. $ 614,395 $ 20,402 $ 156,741
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 312,792 $ 19,994 $ 118,910
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 3,984 887 2,688
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... 115,327 42 (2,922)
N
et unrealized appreciation (depreciation) of investments ...................................... 182,292 (521) 38,065
Total Net Assets $ 614,395 $ 20,402 $ 156,741
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 105,000 200,000,000 200,000
Net Asset Value Per Share:
Class 1: Net Assets ............................................................................... $ 599,827 $ 10,213 $ 148,937
Shares issued and outstanding ............................................................. 10,413 1,000 6,495
Net Asset Value per share .................................................................. $ 57.60 $ 10.21 $ 22.93
Class 2: Net Assets ............................................................................... $ 14,568 $ 10,189 $ 7,804
Shares issued and outstanding ............................................................. 254 1,000 344
Net Asset Value per share .................................................................. $ 57.25 $ 10.19 $ 22.69
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 8
Amounts in thousands, except per share amounts
Principal
LifeTime 2010
Account
Principal
LifeTime 2020
Account
Principal
LifeTime 2030
Account
Investment in affiliated Accounts--at cost ..................................................... $ 41,474 $ 187,256 $ 117,693
Assets
Investment in affiliated Accounts--at value ...................................................... $ 42,736 $ 191,024 $ 119,987
Receivables:
Dividends and interest...................................................................... 23 114 62
Fund shares sold ............................................................................ 1 87 110
Investment securities sold .................................................................. 41 36
–
Total Assets 42,801 191,261 120,159
Liabilities
Accrued directors' expenses ...................................................................... 1 2 1
Accrued professional fees ........................................................................ 4
–
–
Accrued other expenses ..........................................................................
–
4 4
Payables:
Fund shares redeemed ...................................................................... 43 123 87
Investment securities purchased ........................................................... 23 114 85
Total Liabilities 71 243 177
Net Assets Applicable to Outstanding Shares ................................................. $ 42,730 $ 191,018 $ 119,982
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 40,011 $ 177,010 $ 110,660
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 1,000 4,077 2,175
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... 457 6,163 4,853
N
et unrealized appreciation (depreciation) of investments ...................................... 1,262 3,768 2,294
Total Net Assets $ 42,730 $ 191,018 $ 119,982
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 100,000 200,000 200,000
Net Asset Value Per Share:
Class 1: Net Assets ............................................................................... $ 42,730 $ 190,993 $ 119,940
Shares issued and outstanding ............................................................. 3,400 14,714 10,273
Net Asset Value per share .................................................................. $ 12.57 $ 12.98 $ 11.68
Class 2: Net Assets ............................................................................... N/A $ 25 $ 42
Shares issued and outstanding ............................................................. 2 4
Net Asset Value per share .................................................................. $ 12.94 $ 11.64
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 9
Amounts in thousands, except per share amounts
Principal
LifeTime 2040
Account
Principal
LifeTime 2050
Account
Principal
LifeTime 2060
Account
Investment in affiliated Accounts--at cost ..................................................... $ 46,286 $ 23,079 $ 2,606
Assets
Investment in affiliated Accounts--at value ...................................................... $ 46,073 $ 23,077 $ 2,492
Receivables:
Dividends and interest...................................................................... 12 7 1
Fund shares sold ............................................................................ 13 18 1
Investment securities sold .................................................................. 20
–
9
Total Assets 46,118 23,102 2,503
Liabilities
Accrued directors' expenses ...................................................................... 1 1 1
Accrued professional fees ........................................................................ 4 4 4
Payables:
Fund shares redeemed ...................................................................... 34 1 10
Investment securities purchased ........................................................... 12 24 1
Total Liabilities 51 30 16
Net Assets Applicable to Outstanding Shares ................................................. $ 46,067 $ 23,072 $ 2,487
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 43,927 $ 21,741 $ 2,499
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 726 355 29
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... 1,627 978 73
N
et unrealized appreciation (depreciation) of investments ...................................... (213) (2) (114)
Total Net Assets $ 46,067 $ 23,072 $ 2,487
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 200,000 200,000 100,000
Net Asset Value Per Share:
Class 1: Net Assets ............................................................................... $ 46,046 $ 23,037 $ 2,487
Shares issued and outstanding ............................................................. 3,372 1,752 211
Net Asset Value per share .................................................................. $ 13.66 $ 13.15 $ 11.80
Class 2: Net Assets ............................................................................... $ 21 $ 35 N/A
Shares issued and outstanding ............................................................. 2 3
Net Asset Value per share .................................................................. $ 13.62 $ 13.11
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 10
Amounts in thousands, except per share amounts
Principal
LifeTime
Strategic Income
Account
Real Estate
Securities
Account
SAM Balanced
Portfolio
Investment in securities--at cost ............................................................... $
–
$ 122,372 $ 2,117
Investment in affiliated Accounts--at cost ..................................................... $ 24,345 $
–
$ 722,380
Assets
Investment in securities--at value ............................................................... $
–
$ 174,465 $ 2,117
Investment in affiliated Accounts--at value ...................................................... 25,537
–
799,841
Receivables:
Dividends and interest...................................................................... 16 549 533
Fund shares sold ............................................................................ 12 267 208
Investment securities sold .................................................................. 17
–
1,187
Total Assets 25,582 175,281 803,886
Liabilities
Accrued management and investment advisory fees.............................................
–
120 150
Accrued distribution fees .........................................................................
–
–
20
Accrued directors' expenses ...................................................................... 1 2 4
Accrued professional fees ........................................................................ 4
–
–
Accrued other expenses ..........................................................................
–
4 4
Payables:
Fund shares redeemed ...................................................................... 29 27 1,394
Investment securities purchased ........................................................... 16
–
2,579
Total Liabilities 50 153 4,151
Net Assets Applicable to Outstanding Shares ................................................. $ 25,532 $ 175,128 $ 799,735
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 23,836 $ 96,436 $ 662,290
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 694 4,262 17,382
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... (190) 22,337 42,602
N
et unrealized appreciation (depreciation) of investments ...................................... 1,192 52,093 77,461
Total Net Assets $ 25,532 $ 175,128 $ 799,735
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 100,000 300,000 300,000
Net Asset Value Per Share:
Class 1: Net Assets ............................................................................... $ 25,532 $ 172,938 $ 702,457
Shares issued and outstanding ............................................................. 2,205 6,997 46,421
Net Asset Value per share .................................................................. $ 11.58 $ 24.72 $ 15.13
Class 2: Net Assets ............................................................................... N/A $ 2,190 $ 97,278
Shares issued and outstanding ............................................................. 88 6,497
Net Asset Value per share .................................................................. $ 24.78 $ 14.97
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 11
Amounts in thousands, except per share amounts
SAM
Conservative
Balanced
Portfolio
SAM
Conservative
Growth Portfolio
SAM Flexible
Income Portfolio
Investment in securities--at cost ............................................................... $ 1,522 $1 $ 1,110
Investment in affiliated Accounts--at cost ..................................................... $ 193,146 $ 272,817 $ 198,995
Assets
Investment in securities--at value ............................................................... $ 1,522 $ 1 $ 1,110
Investment in affiliated Accounts--at value ...................................................... 208,797 295,763 217,619
Receivables:
Dividends and interest...................................................................... 167 141 257
Fund shares sold ............................................................................ 42 16 25
Investment securities sold .................................................................. 82 357 175
Total Assets 210,610 296,278 219,186
Liabilities
Accrued management and investment advisory fees............................................. 40 54 41
Accrued distribution fees ......................................................................... 4 22 4
Accrued directors' expenses ...................................................................... 2 2 2
Accrued other expenses .......................................................................... 4 4 4
Payables:
Fund shares redeemed ...................................................................... 123 373 200
Investment securities purchased ........................................................... 1,639 141 1,330
Total Liabilities 1,812 596 1,581
Net Assets Applicable to Outstanding Shares ................................................. $ 208,798 $ 295,682 $ 217,605
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 183,369 $ 257,672 $ 190,319
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 5,688 3,875 8,064
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... 4,090 11,189 598
N
et unrealized appreciation (depreciation) of investments ...................................... 15,651 22,946 18,624
Total Net Assets $ 208,798 $ 295,682 $ 217,605
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 200,000 200,000 200,000
Net Asset Value Per Share:
Class 1: Net Assets ............................................................................... $ 191,081 $ 190,635 $ 196,851
Shares issued and outstanding ............................................................. 16,013 10,825 15,295
Net Asset Value per share .................................................................. $ 11.93 $ 17.61 $ 12.87
Class 2: Net Assets ............................................................................... $ 17,717 $ 105,047 $ 20,754
Shares issued and outstanding ............................................................. 1,502 6,042 1,628
Net Asset Value per share .................................................................. $ 11.80 $ 17.39 $ 12.75
STATEMENTS OF ASSETS AND LIABILITIES
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
June 30, 2016 (unaudited)
See accompanying notes. 12
Amounts in thousands, except per share amounts
SAM Strategic
Growth Portfolio
Short-Term
Income Account
SmallCap
Account(a)
Investment in securities--at cost ............................................................... $ 1,062 $ 166,434 $ 188,078
Investment in affiliated Accounts--at cost ..................................................... $ 228,397 $
–
$
–
Assets
Investment in securities--at value ............................................................... $ 1,062 $ 167,258 $ 198,067
Investment in affiliated Accounts--at value ...................................................... 238,260
–
–
Cash ..............................................................................................
–
3
–
Receivables:
Dividends and interest...................................................................... 92 872 189
Expense reimbursement from Manager ....................................................
–
1
–
Fund shares sold ............................................................................ 58 650 3
Investment securities sold .................................................................. 84 347 2,247
Total Assets 239,556 169,131 200,506
Liabilities
Accrued management and investment advisory fees............................................. 44 69 134
Accrued distribution fees ......................................................................... 20
–
1
Accrued directors' expenses ...................................................................... 2 2 2
Accrued other expenses .......................................................................... 4 6 10
Payables:
Fund shares redeemed ...................................................................... 142 28 561
Investment securities purchased ........................................................... 1,119 878 2,701
Total Liabilities 1,331 983 3,409
Net Assets Applicable to Outstanding Shares ................................................. $ 238,225 $ 168,148 $ 197,097
Net Assets Consist of:
Capital shares and additional paid-in-capital .................................................... $ 216,527 $ 178,963 $ 185,991
Accumulated undistributed (overdistributed) net investment income (loss) ..................... 3,026 5,134 1,900
Accumulated undistributed (overdistributed) net realized gain (loss) ........................... 8,809 (16,773) (783)
N
et unrealized appreciation (depreciation) of investments ...................................... 9,863 824 9,989
Total Net Assets $ 238,225 $ 168,148 $ 197,097
Capital Stock (par value: $.01 per share):
Shares authorized ................................................................................ 200,000 400,000 200,000
Net Asset Value Per Share:
Class 1: Net Assets ............................................................................... $ 140,323 $ 165,705 $ 192,392
Shares issued and outstanding ............................................................. 7,395 63,887 13,980
Net Asset Value per share .................................................................. $ 18.98 $2.59 $ 13.76
Class 2: Net Assets ............................................................................... $ 97,902 $ 2,443 $ 4,705
Shares issued and outstanding ............................................................. 5,220 947 343
Net Asset Value per share .................................................................. $ 18.76 $2.58 $ 13.72
(a) Effective May 1, 2016, SmallCap Blend Account changed its name to SmallCap Account.
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 13
Amounts in thousands Balanced Account
Bond Market
Index Account
Core Plus
Bond Account(a)
Net Investment Income (Loss)
Income:
Dividends ................................................................................... $ 306 $
–
$38
Withholding tax ............................................................................ (5)
–
–
Interest...................................................................................... 270 21,195 4,953
Total Income 571 21,195 4,991
Expenses:
Management and investment advisory fees ................................................ 128 2,451 660
Custodian fees .............................................................................. 9 21 11
Directors' expenses ......................................................................... 2 20 4
Professional fees ........................................................................... 2 2 2
Other expenses .............................................................................
–
1 1
Total Expenses 141 2,495 678
Net Investment Income (Loss) 430 18,700 4,313
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions .................................................................... 475 4,983 (935)
Futures contracts ...........................................................................
–
–
560
Short sales ..................................................................................
–
(19)
–
Swap agreements ...........................................................................
–
–
64
Change in unrealized appreciation/depreciation of:
Investments ................................................................................. 75 75,363 11,874
Futures contracts ...........................................................................
–
–
537
Swap agreements ...........................................................................
–
–
(403)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 550 80,327 11,697
Net Increase (Decrease) in Net Assets Resulting from Operations $ 980 $ 99,027 $ 16,010
(a) Effective May 1, 2016, Bond & Mortgage Securities Account changed its name to Core Plus Bond Account.
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 14
Amounts in thousands
Diversified
Balanced Account
Diversified
Balanced Managed
Volatility Account
Diversified
Growth Account
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts ........................................................ $
–
$
–
$
–
Total Income
–
–
–
Expenses:
Management and investment advisory fees ................................................ 259 36 808
Distribution Fees - Class 2 ................................................................. 1,295 181 4,041
Directors' expenses ......................................................................... 11 2 32
Professional fees ........................................................................... 1 1 1
Other expenses ............................................................................. 1
–
3
Total Expenses 1,567 220 4,885
Net Investment Income (Loss) (1,567) (220) (4,885)
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions in affiliated Accounts ............................................ 519 4 (160)
Change in unrealized appreciation/depreciation of:
Investments in affiliated Accounts ......................................................... 44,491 6,056 130,380
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 45,010 6,060 130,220
Net Increase (Decrease) in Net Assets Resulting from Operations $ 43,443 $ 5,840 $ 125,335
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 15
Amounts in thousands
Diversified Growth
Managed Volatility
Account
Diversified
Income Account
Diversified
International
Account
Net Investment Income (Loss)
Income:
Dividends ................................................................................... $
–
$
–
$ 5,304
Withholding tax ............................................................................
–
–
(571)
Interest......................................................................................
–
–
1
Total Income
–
–
4,734
Expenses:
Management and investment advisory fees ................................................ 66 53 1,090
Distribution Fees - Class 2 ................................................................. 330 263 2
Custodian fees ..............................................................................
–
–
42
Directors' expenses ......................................................................... 4 3 4
Professional fees ........................................................................... 1 1 13
Other expenses .............................................................................
–
–
1
Total Expenses 401 320 1,152
Net Investment Income (Loss) (401) (320) 3,582
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions (net of foreign taxes of $0, $0 and $3, respectively) .............
–
–
(2,536)
Investment transactions in affiliated Accounts ............................................ 6 5
–
Foreign currency transactions ..............................................................
–
–
(13)
Litigation settlement .......................................................................
–
–
240
Change in unrealized appreciation/depreciation of:
Investments (net of deferred foreign tax payable of $0, $0 and $26, respectively) ........
–
–
(7,925)
Investments in affiliated Accounts ......................................................... 10,165 10,081
–
Translation of assets and liabilities in foreign currencies ..................................
–
–
27
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 10,171 10,086 (10,207)
Net Increase (Decrease) in Net Assets Resulting from Operations $ 9,770 $ 9,766 $ (6,625)
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 16
Amounts in thousands
Equity
Income Account
Government &
High Quality
Bond Account Income Account
Net Investment Income (Loss)
Income:
Dividends ................................................................................... $ 8,209 $
–
$
–
Withholding tax ............................................................................ (171)
–
–
Interest...................................................................................... 8 5,173 5,360
Total Income 8,046 5,173 5,360
Expenses:
Management and investment advisory fees ................................................ 1,300 706 626
Distribution Fees - Class 2 ................................................................. 28 3 3
Custodian fees .............................................................................. 7 2 2
Directors' expenses ......................................................................... 6 4 4
Professional fees ........................................................................... 1 2 2
Total Expenses 1,342 717 637
Net Investment Income (Loss) 6,704 4,456 4,723
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions .................................................................... 11,719 (11) 596
Change in unrealized appreciation/depreciation of:
Investments ................................................................................. 20,968 5,186 9,679
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 32,687 5,175 10,275
Net Increase (Decrease) in Net Assets Resulting from Operations $ 39,391 $ 9,631 $ 14,998
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 17
Amounts in thousands
International
Emerging
Markets Account
LargeCap
Growth Account
LargeCap
Growth Account I
Net Investment Income (Loss)
Income:
Dividends ................................................................................... $ 1,374 $ 639 $ 1,016
Withholding tax ............................................................................ (144)
–
(3)
Interest...................................................................................... 1 3 8
Total Income 1,231 642 1,021
Expenses:
Management and investment advisory fees ................................................ 516 368 909
Distribution Fees - Class 2 .................................................................
–
1
–
Custodian fees .............................................................................. 45 1 8
Directors' expenses ......................................................................... 2 2 3
Professional fees ........................................................................... 13 2 2
Total Gross Expenses 576 374 922
Less: Reimbursement from Manager ......................................................
–
–
19
Total Net Expenses 576 374 903
Net Investment Income (Loss) 655 268 118
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions .................................................................... (6,203) 6,522 3,751
Foreign currency transactions .............................................................. (56)
–
–
Futures contracts ...........................................................................
–
–
250
Litigation settlement ....................................................................... 478
–
–
Change in unrealized appreciation/depreciation of:
Investments ................................................................................. 9,314 (13,535) (12,050)
Futures contracts ...........................................................................
–
–
19
Translation of assets and liabilities in foreign currencies .................................. 3
–
–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 3,536 (7,013) (8,030)
Net Increase (Decrease) in Net Assets Resulting from Operations $ 4,191 $ (6,745) $ (7,912)
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 18
Amounts in thousands
LargeCap S&P 500
Index Account
LargeCap S&P 500
Managed Volatility
Index Account
LargeCap
Value Account
Net Investment Income (Loss)
Income:
Dividends ................................................................................... $ 22,672 $ 1,751 $ 1,952
Interest...................................................................................... 25 12 1
Total Income 22,697 1,763 1,953
Expenses:
Management and investment advisory fees ................................................ 2,566 380 424
Custodian fees .............................................................................. 6 7 1
Directors' expenses ......................................................................... 20 3 3
Professional fees ........................................................................... 2 2 2
Other expenses ............................................................................. 12 1
–
Total Expenses 2,606 393 430
Net Investment Income (Loss) 20,091 1,370 1,523
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions .................................................................... 17,900 (221) 4,418
Futures contracts ........................................................................... (355) 315
–
Options and swaptions .....................................................................
–
87
–
Change in unrealized appreciation/depreciation of:
Investments ................................................................................. 44,191 4,174 (4,784)
Futures contracts ........................................................................... (30) 27
–
Options and swaptions .....................................................................
–
282
–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 61,706 4,664 (366)
Net Increase (Decrease) in Net Assets Resulting from Operations $ 81,797 $ 6,034 $ 1,157
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 19
Amounts in thousands, except for Multi-Asset Income Account MidCap Account
Multi-Asset
Income Account
Principal
Capital
Appreciation
Account
Net Investment Income (Loss)
Income:
Dividends from Affiliated Accounts ....................................................... $
–
$ 436 $
–
Dividends ................................................................................... 2,233
–
1,437
Withholding tax ............................................................................ (54)
–
–
Interest...................................................................................... 1
–
2
Total Income 2,180 436 1,439
Expenses:
Management and investment advisory fees ................................................ 1,591 4 481
Distribution Fees - Class 2 ................................................................. 18 12 9
Custodian fees .............................................................................. 3
–
1
Directors' expenses ......................................................................... 7 911 3
Professional fees ........................................................................... 2 1,502 2
Other expenses ............................................................................. 1 3
–
Total Gross Expenses 1,622 2,432 496
Less: Reimbursement from Manager - Class 1 ............................................
–
1,207
–
Less: Reimbursement from Manager - Class 2 ............................................
–
1,204
–
Total Net Expenses 1,622 21 496
Net Investment Income (Loss) 558 415 943
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions .................................................................... 15,123
–
(2,891)
Change in unrealized appreciation/depreciation of:
Investments ................................................................................. 8,877
–
5,731
Investments in affiliated Accounts ........................................................
–
559
–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 24,000 559 2,840
Net Increase (Decrease) in Net Assets Resulting from Operations $ 24,558 $ 974 $ 3,783
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 20
Amounts in thousands
Principal LifeTime
2010 Account
Principal LifeTime
2020 Account
Principal LifeTime
2030 Account
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts ........................................................ $ 105 $ 431 $ 195
Total Income 105 431 195
Expenses:
Management and investment advisory fees ................................................ 2 9 5
Directors' expenses ......................................................................... 2 3 2
Professional fees ........................................................................... 1 1 1
Total Expenses 5 13 8
Net Investment Income (Loss) 100 418 187
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions in affiliated Accounts ............................................ 258 (271) 27
Change in unrealized appreciation/depreciation of:
Investments in affiliated Accounts ......................................................... 958 4,711 2,146
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 1,216 4,440 2,173
Net Increase (Decrease) in Net Assets Resulting from Operations $ 1,316 $ 4,858 $ 2,360
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 21
Amounts in thousands
Principal LifeTime
2040 Account
Principal LifeTime
2050 Account
Principal LifeTime
2060 Account
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts ........................................................ $ 41 $ 19 $ 2
Total Income 41 19 2
Expenses:
Management and investment advisory fees ................................................ 2 1
–
Directors' expenses ......................................................................... 2 1 1
Professional fees ........................................................................... 1 1 1
Total Gross Expenses 5 3 2
Less: Reimbursement from Manager - Class 1 ............................................
–
–
1
Total Net Expenses 5 3 1
Net Investment Income (Loss) 36 16 1
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions in affiliated Accounts ............................................ (142) (71) (7)
Change in unrealized appreciation/depreciation of:
Investments in affiliated Accounts ......................................................... 644 117 29
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 502 46 22
Net Increase (Decrease) in Net Assets Resulting from Operations $ 538 $62 $23
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 22
Amounts in thousands
Principal LifeTime
Strategic
Income Account
Real Estate
Securities Account
SAM Balanced
Portfolio
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts ........................................................ $ 72 $
–
$ 1,944
Dividends ...................................................................................
–
2,412
–
Interest......................................................................................
–
1
–
Total Income 72 2,413 1,944
Expenses:
Management and investment advisory fees ................................................ 1 702 908
Distribution Fees - Class 2 ................................................................. N/A 3 118
Custodian fees ..............................................................................
–
1
–
Directors' expenses ......................................................................... 1 3 9
Professional fees ........................................................................... 1 2 1
Other expenses .............................................................................
–
–
1
Total Expenses 3 711 1,037
Net Investment Income (Loss) 69 1,702 907
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions ....................................................................
–
8,890
–
Investment transactions in affiliated Accounts ............................................ (39)
–
(1,711)
Change in unrealized appreciation/depreciation of:
Investments .................................................................................
–
7,101
–
Investments in affiliated Accounts ......................................................... 907
–
24,087
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 868 15,991 22,376
Net Increase (Decrease) in Net Assets Resulting from Operations $ 937 $ 17,693 $ 23,283
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 23
Amounts in thousands
SAM Conservative
Balanced Portfolio
SAM Conservative
Growth Portfolio
SAM Flexible
Income Portfolio
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts ........................................................ $ 760 $ 319 $ 1,267
Total Income 760 319 1,267
Expenses:
Management and investment advisory fees ................................................ 234 329 246
Distribution Fees - Class 2 ................................................................. 22 127 26
Directors' expenses ......................................................................... 3 4 3
Professional fees ........................................................................... 1 1 1
Total Expenses 260 461 276
Net Investment Income (Loss) 500 (142) 991
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions in affiliated Accounts ............................................ (1,216) (3,139) (836)
Change in unrealized appreciation/depreciation of:
Investments in affiliated Accounts ......................................................... 7,861 9,706 9,994
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 6,645 6,567 9,158
Net Increase (Decrease) in Net Assets Resulting from Operations $ 7,145 $ 6,425 $ 10,149
STATEMENTS OF OPERATIONS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
Six Months Ended June 30, 2016 (unaudited)
See accompanying notes. 24
Amounts in thousands
SAM Strategic
Growth Portfolio
Short-Term
Income Account
SmallCap
Account(a)
Net Investment Income (Loss)
Income:
Dividends from affiliated Accounts ........................................................ $ 179 $
–
$
–
Dividends ...................................................................................
–
–
2,102
Interest......................................................................................
–
1,962 4
Total Income 179 1,962 2,106
Expenses:
Management and investment advisory fees ................................................ 263 405 795
Distribution Fees - Class 2 ................................................................. 117 2 5
Custodian fees ..............................................................................
–
4
–
Directors' expenses ......................................................................... 3 3 3
Professional fees ........................................................................... 1 2 2
Total Gross Expenses 384 416 805
Less: Reimbursement from Manager - Class 1 ............................................
–
8
–
Total Net Expenses 384 408 805
Net Investment Income (Loss) (205) 1,554 1,301
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements
N
et realized gain (loss) from:
Investment transactions ....................................................................
–
158 (9,056)
Investment transactions in affiliated Accounts ............................................ (2,825)
–
–
Change in unrealized appreciation/depreciation of:
Investments .................................................................................
–
1,804 10,187
Investments in affiliated Accounts ......................................................... 6,338
–
–
Net Realized and Unrealized Gain (Loss) on Investments, Foreign currencies,
Futures, Options and Swaptions, Short sales, and Swap agreements 3,513 1,962 1,131
Net Increase (Decrease) in Net Assets Resulting from Operations $ 3,308 $ 3,516 $ 2,432
(a) Effective May 1, 2016, SmallCap Blend Account changed its name to SmallCap Account.
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 25
Amounts in thousands Balanced Account Bond Market Index Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Operations
N
et investment income (loss) ....................................................................... $ 430 $ 827 $ 18,700
$ 32,850
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... 475 2,319 4,964
2,717
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 75 (2,899) 75,363
(33,768)
Net Increase (Decrease) in Net Assets Resulting from Operations 980 247 99,027
1,799
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(844)
–
(28,036)
From net realized gain on investments:
Class 1 .........................................................................................
–
(3,238)
–
–
Total Dividends and Distributions
–
(4,082)
–
(28,036)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 424 1,479 217,360
456,166
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
4,082
–
28,036
Shares redeemed:
Class 1 ......................................................................................... (2,655) (8,060) (163,727)
(255,113)
Net Increase (Decrease) in Net Assets from Capital Share Transactions (2,231) (2,499) 53,633
229,089
Total Increase (Decrease) (1,251) (6,334) 152,660
202,852
Net Assets
Beginning of period ................................................................................. 44,254 50,588 1,937,655
1,734,803
End of period (including undistributed net investment income as set forth below) ................ $ 43,003 $ 44,254 $ 2,090,315
$ 1,937,655
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 1,274 $ 844 $ 55,963
$ 37,263
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 24 77 20,719
44,079
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
224
–
2,746
Shares redeemed:
Class 1 ......................................................................................... (149) (427) (15,769)
(24,742)
N
et Increase (Decrease) ............................................................................. (125) (126) 4,950
22,083
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 26
Amounts in thousands Core Plus Bond Account(a) Diversified Balanced Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015(b)
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Operations
N
et investment income (loss) ....................................................................... $ 4,313 $ 8,650 $ (1,567)
$ 13,381
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... (311) (1,599) 519
10,200
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 12,008 (8,023) 44,491
(22,094)
Net Increase (Decrease) in Net Assets Resulting from Operations 16,010 (972) 43,443
1,487
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(9,626) N/A
N/A
Class 2 .........................................................................................
–
(1)
–
(10,360)
From net realized gain on investments:
Class 2 .........................................................................................
–
–
–
(11,596)
Total Dividends and Distributions
–
(9,627)
–
(21,956)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 33,144 25,822 N/A
N/A
Class 2 ......................................................................................... 12 40 27,467
64,227
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
9,626 N/A
N/A
Class 2 .........................................................................................
–
1
–
21,956
Shares redeemed:
Class 1 ......................................................................................... (33,175) (56,554) N/A
N/A
Class 2 .........................................................................................
–
(11) (23,268)
(45,709)
Net Increase (Decrease) in Net Assets from Capital Share Transactions (19) (21,076) 4,199
40,474
Total Increase (Decrease) 15,991 (31,675) 47,642
20,005
Net Assets
Beginning of period ................................................................................. 290,060 321,735 1,031,111
1,011,106
End of period (including undistributed net investment income as set forth below) ................ $ 306,051 $ 290,060 $ 1,078,753
$ 1,031,111
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 12,954 $ 8,641 $ 11,807
$ 13,374
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 2,896 2,256 N/A
N/A
Class 2 ......................................................................................... 1 4 1,933
4,450
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
863 N/A
N/A
Class 2 .........................................................................................
–
–
–
1,533
Shares redeemed:
Class 1 ......................................................................................... (2,917) (4,963) N/A
N/A
Class 2 .........................................................................................
–
(1) (1,630)
(3,181)
N
et Increase (Decrease) ............................................................................. (20) (1,841) 303
2,802
(a) Effective May 1, 2016, Bond & Mortgage Securities Account changed its name to Core Plus Bond Account.
(b) Period from May 1, 2015, date operations commenced, through December 31, 2015 for Class 2 shares.
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 27
Amounts in thousands
Diversified Balanced
Managed Volatility Account Diversified Growth Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Operations
N
et investment income (loss) ....................................................................... $ (220) $ 1,065 $ (4,885)
$ 42,285
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... 4 885 (160)
38,726
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 6,056 (2,470) 130,380
(79,942)
Net Increase (Decrease) in Net Assets Resulting from Operations 5,840 (520) 125,335
1,069
Dividends and Distributions to Shareholders
From net investment income:
Class 2 .........................................................................................
–
(1,010)
–
(31,927)
From net realized gain on investments:
Class 2 .........................................................................................
–
(889)
–
(39,243)
Total Dividends and Distributions
–
(1,899)
–
(71,170)
Capital Share Transactions
Shares sold:
Class 2 ......................................................................................... 13,995 60,772 110,398
359,378
Shares issued in reinvestment of dividends and distributions:
Class 2 .........................................................................................
–
1,899
–
71,170
Shares redeemed:
Class 2 ......................................................................................... (3,444) (6,395) (37,556)
(39,674)
Net Increase (Decrease) in Net Assets from Capital Share Transactions 10,551 56,276 72,842
390,874
Total Increase (Decrease) 16,391 53,857 198,177
320,773
Net Assets
Beginning of period ................................................................................. 138,384 84,527 3,201,495
2,880,722
End of period (including undistributed net investment income as set forth below) ................ $ 154,775 $ 138,384 $ 3,399,672
$ 3,201,495
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 844 $ 1,064 $ 37,398
$ 42,283
Increase (Decrease) in Capital Shares
Shares sold:
Class 2 ......................................................................................... 1,298 5,556 7,354
23,218
Shares issued in reinvestment of dividends and distributions:
Class 2 .........................................................................................
–
175
–
4,627
Shares redeemed:
Class 2 ......................................................................................... (321) (593) (2,457)
(2,612)
N
et Increase (Decrease) ............................................................................. 977 5,138 4,897
25,233
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 28
Amounts in thousands
Diversified Growth Managed
Volatility Account Diversified Income Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Operations
N
et investment income (loss) ....................................................................... $ (401) $ 1,718 $ (320)
$ 2,298
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... 6 2,049 5
1,333
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 10,165 (5,003) 10,081
(3,561)
Net Increase (Decrease) in Net Assets Resulting from Operations 9,770 (1,236) 9,766
70
Dividends and Distributions to Shareholders
From net investment income:
Class 2 .........................................................................................
–
(2,225)
–
(1,447)
From net realized gain on investments:
Class 2 .........................................................................................
–
(2,050)
–
(1,285)
Total Dividends and Distributions
–
(4,275)
–
(2,732)
Capital Share Transactions
Shares sold:
Class 2 ......................................................................................... 29,499 108,374 29,164
51,346
Shares issued in reinvestment of dividends and distributions:
Class 2 .........................................................................................
–
4,275
–
2,732
Shares redeemed:
Class 2 ......................................................................................... (4,408) (6,199) (9,588)
(21,216)
Net Increase (Decrease) in Net Assets from Capital Share Transactions 25,091 106,450 19,576
32,862
Total Increase (Decrease) 34,861 100,939 29,342
30,200
Net Assets
Beginning of period ................................................................................. 252,611 151,672 198,762
168,562
End of period (including undistributed net investment income as set forth below) ................ $ 287,472 $ 252,611 $ 228,104
$ 198,762
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 1,315 $ 1,716 $ 1,977
$ 2,297
Increase (Decrease) in Capital Shares
Shares sold:
Class 2 ......................................................................................... 2,735 9,801 2,428
4,273
Shares issued in reinvestment of dividends and distributions:
Class 2 .........................................................................................
–
389
–
228
Shares redeemed:
Class 2 ......................................................................................... (411) (573) (793)
(1,762)
N
et Increase (Decrease) ............................................................................. 2,324 9,617 1,635
2,739
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 29
Amounts in thousands
Diversified
International Account Equity Income Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Operations
N
et investment income (loss) ....................................................................... $ 3,582 $ 6,425 $ 6,704
$ 14,903
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... (2,309) 30,288 11,719
28,852
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... (7,898) (32,671) 20,968
(66,010)
Net Increase (Decrease) in Net Assets Resulting from Operations (6,625) 4,042 39,391
(22,255)
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(7,388)
–
(13,573)
Class 2 .........................................................................................
–
(32)
–
(555)
Total Dividends and Distributions
–
(7,420)
–
(14,128)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 6,409 16,905 10,698
37,699
Class 2 ......................................................................................... 34 348 243
1,801
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
7,388
–
13,573
Class 2 .........................................................................................
–
32
–
555
Shares redeemed:
Class 1 ......................................................................................... (21,692) (176,857) (44,122)
(102,756)
Class 2 ......................................................................................... (34) (238) (1,529)
(3,046)
Net Increase (Decrease) in Net Assets from Capital Share Transactions (15,283) (152,422) (34,710)
(52,174)
Total Increase (Decrease) (21,908) (155,800) 4,681
(88,557)
Net Assets
Beginning of period ................................................................................. 274,660 430,460 536,341
624,898
End of period (including undistributed net investment income as set forth below) ................ $ 252,752 $ 274,660 $ 541,022
$ 536,341
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 9,109 $ 5,527 $ 24,399
$ 17,695
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 485 1,167 489
1,674
Class 2 ......................................................................................... 3 24 11
80
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
513
–
600
Class 2 .........................................................................................
–
2
–
25
Shares redeemed:
Class 1 ......................................................................................... (1,639) (12,171) (1,987)
(4,521)
Class 2 ......................................................................................... (3) (16) (70)
(136)
N
et Increase (Decrease) ............................................................................. (1,154) (10,481) (1,557)
(2,278)
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 30
Amounts in thousands
Government & High
Quality Bond Account Income Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Operations
N
et investment income (loss) ....................................................................... $ 4,456 $ 7,956 $ 4,723
$ 9,878
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... (11) 1,203 596
2,468
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 5,186 (6,505) 9,679
(14,058)
Net Increase (Decrease) in Net Assets Resulting from Operations 9,631 2,654 14,998
(1,712)
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(9,930)
–
(11,705)
Class 2 .........................................................................................
–
(58)
–
(108)
From net realized gain on investments:
Class 1 .........................................................................................
–
(402)
–
–
Class 2 .........................................................................................
–
(2)
–
–
Total Dividends and Distributions
–
(10,392)
–
(11,813)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 10,636 16,889 3,201
11,316
Class 2 ......................................................................................... 1,096 1,035 678
45
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
10,332
–
11,705
Class 2 .........................................................................................
–
60
–
108
Shares redeemed:
Class 1 ......................................................................................... (46,330) (47,392) (35,417)
(30,469)
Class 2 ......................................................................................... (151) (115) (67)
(617)
Net Increase (Decrease) in Net Assets from Capital Share Transactions (34,749) (19,191) (31,605)
(7,912)
Total Increase (Decrease) (25,118) (26,929) (16,607)
(21,437)
Net Assets
Beginning of period ................................................................................. 288,496 315,425 257,196
278,633
End of period (including undistributed net investment income as set forth below) ................ $ 263,378 $ 288,496 $ 240,589
$ 257,196
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 13,560 $ 9,104 $ 14,018
$ 9,295
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 1,027 1,625 305
1,049
Class 2 ......................................................................................... 106 98 64
4
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
1,018
–
1,129
Class 2 .........................................................................................
–
6
–
10
Shares redeemed:
Class 1 ......................................................................................... (4,455) (4,568) (3,352)
(2,866)
Class 2 ......................................................................................... (15) (11) (6)
(57)
N
et Increase (Decrease) ............................................................................. (3,337) (1,832) (2,989)
(731)
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 31
Amounts in thousands
International Emerging
Markets Account LargeCap Growth Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015(a)
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Operations
N
et investment income (loss) ....................................................................... $ 655 $ 1,166 $ 268
$ 285
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... (5,781) (6,376) 6,522
4,953
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 9,317 (8,516) (13,535)
862
Net Increase (Decrease) in Net Assets Resulting from Operations 4,191 (13,726) (6,745)
6,100
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(1,655)
–
(173)
Total Dividends and Distributions
–
(1,655)
–
(173)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 3,726 11,049 3,100
6,552
Class 2 ......................................................................................... 26 46 503
504
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
1,655
–
173
Shares redeemed:
Class 1 ......................................................................................... (6,173) (14,985) (13,463)
(17,325)
Class 2 .........................................................................................
–
–
(410)
(108)
Net Increase (Decrease) in Net Assets from Capital Share Transactions (2,421) (2,235) (10,270)
(10,204)
Total Increase (Decrease) 1,770 (17,616) (17,015)
(4,277)
Net Assets
Beginning of period ................................................................................. 85,475 103,091 119,475
123,752
End of period (including undistributed net investment income as set forth below) ................ $ 87,245 $ 85,475 $ 102,460
$ 119,475
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 1,652 $ 997 $ 553
$ 285
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 294 743 130
256
Class 2 ......................................................................................... 2 3 20
20
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
117
–
7
Shares redeemed:
Class 1 ......................................................................................... (485) (1,005) (553)
(676)
Class 2 .........................................................................................
–
–
(17)
(4)
N
et Increase (Decrease) ............................................................................. (189) (142) (420)
(397)
(a) Period from May 1, 2015, date operations commenced, through December 31, 2015 for Class 2 shares.
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 32
Amounts in thousands LargeCap Growth Account I
LargeCap S&P 500
Index Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015(a)
Period
Ended June
30, 2016
Year Ended
December
31, 2015(a)
Operations
N
et investment income (loss) ....................................................................... $ 118 $ 180 $ 20,091
$ 36,196
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... 4,001 20,379 17,545
53,618
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... (12,031) (2,393) 44,161
(61,719)
Net Increase (Decrease) in Net Assets Resulting from Operations (7,912) 18,166 81,797
28,095
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(562)
–
(29,180)
Class 2 .........................................................................................
–
(1)
–
(1)
From net realized gain on investments:
Class 1 .........................................................................................
–
(37,084)
–
(23,947)
Class 2 .........................................................................................
–
(62)
–
(1)
Total Dividends and Distributions
–
(37,709)
–
(53,129)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 13,008 23,800 148,571
354,977
Class 2 ......................................................................................... 384 523 67
163
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
37,646
–
53,127
Class 2 .........................................................................................
–
63
–
2
Shares redeemed:
Class 1 ......................................................................................... (16,911) (29,218) (106,272)
(212,649)
Class 2 ......................................................................................... (374) (13) (20)
(1)
Net Increase (Decrease) in Net Assets from Capital Share Transactions (3,893) 32,801 42,346
195,619
Total Increase (Decrease) (11,805) 13,258 124,143
170,585
Net Assets
Beginning of period ................................................................................. 252,887 239,629 2,033,620
1,863,035
End of period (including undistributed net investment income as set forth below) ................ $ 241,082 $ 252,887 $ 2,157,763
$ 2,033,620
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 118 $
–
$ 56,489
$ 36,398
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 520 846 10,723
24,799
Class 2 ......................................................................................... 16 17 5
11
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
1,415
–
3,629
Class 2 .........................................................................................
–
2
–
–
Shares redeemed:
Class 1 ......................................................................................... (675) (1,027) (7,416)
(14,626)
Class 2 ......................................................................................... (15)
–
(1)
–
N
et Increase (Decrease) ............................................................................. (154) 1,253 3,311
13,813
(a) Period from May 1, 2015, date operations commenced, through December 31, 2015 for Class 2 shares.
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 33
Amounts in thousands
LargeCap S&P 500 Managed
Volatility Index Account LargeCap Value Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Period
Ended June
30, 2016
Year Ended
December
31, 2015(a)
Operations
N
et investment income (loss) ....................................................................... $ 1,370 $ 1,976 $ 1,523
$ 2,669
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... 181 503 4,418
4,309
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 4,483 (1,200) (4,784)
(8,693)
Net Increase (Decrease) in Net Assets Resulting from Operations 6,034 1,279 1,157
(1,715)
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
–
–
(2,487)
From net realized gain on investments:
Class 1 .........................................................................................
–
(567)
–
(18,013)
Class 2 ......................................................................................... N/A N/A
–
(2)
Total Dividends and Distributions
–
(567)
–
(20,502)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 22,791 77,842 2,283
5,397
Class 2 ......................................................................................... N/A N/A 4
20
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
567
–
20,500
Class 2 ......................................................................................... N/A N/A
–
2
Shares redeemed:
Class 1 ......................................................................................... (7,181) (14,703) (18,261)
(21,295)
Net Increase (Decrease) in Net Assets from Capital Share Transactions 15,610 63,706 (15,974)
4,624
Total Increase (Decrease) 21,644 64,418 (14,817)
(17,593)
Net Assets
Beginning of period ................................................................................. 161,654 97,236 153,080
170,673
End of period (including undistributed net investment income as set forth below) ................ $ 183,298 $ 161,654 $ 138,263
$ 153,080
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 3,345 $ 1,975 $ 4,153
$ 2,630
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 2,070 6,940 81
170
Class 2 ......................................................................................... N/A N/A
–
1
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
49
–
686
Shares redeemed:
Class 1 ......................................................................................... (644) (1,312) (639)
(663)
N
et Increase (Decrease) ............................................................................. 1,426 5,677 (558)
194
(a) Period from May 1, 2015, date operations commenced, through December 31, 2015 for Class 2 shares.
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 34
Amounts in thousands, except for Multi-Asset Income Account MidCap Account Multi-Asset Income Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Period
Ended June
30, 2016
Period Ended
December 31,
2015(a)
Operations
N
et investment income (loss) ....................................................................... $ 558 $ 2,468 $ 415
$ 466
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... 15,123 100,918
–
42
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 8,877 (90,200) 559
(1,080)
Net Increase (Decrease) in Net Assets Resulting from Operations 24,558 13,186 974
(572)
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(3,384)
–
–
Class 2 .........................................................................................
–
(44)
–
–
From net realized gain on investments:
Class 1 .........................................................................................
–
(69,262)
–
–
Class 2 .........................................................................................
–
(1,683)
–
–
Total Dividends and Distributions
–
(74,373)
–
–
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 5,887 23,039
–
10,000
Class 2 ......................................................................................... 125 433
–
10,000
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
72,646
–
–
Class 2 .........................................................................................
–
1,727
–
–
Shares redeemed:
Class 1 ......................................................................................... (47,501) (95,380)
–
–
Class 2 ......................................................................................... (1,354) (1,394)
–
–
Net Increase (Decrease) in Net Assets from Capital Share Transactions (42,843) 1,071
–
20,000
Total Increase (Decrease) (18,285) (60,116) 974
19,428
Net Assets
Beginning of period ................................................................................. 632,680 692,796 19,428
–
End of period (including undistributed net investment income as set forth below) ................ $ 614,395 $ 632,680 $ 20,402
$ 19,428
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 3,984 $ 3,426 $ 887
$ 472
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 108 381
–
1,000
Class 2 ......................................................................................... 2 7
–
1,000
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
1,237
–
–
Class 2 .........................................................................................
–
30
–
–
Shares redeemed:
Class 1 ......................................................................................... (873) (1,574)
–
–
Class 2 ......................................................................................... (25) (24)
–
–
N
et Increase (Decrease) ............................................................................. (788) 57
–
2,000
(a) Period from July 28, 2015, date operations commenced, through December 31, 2015.
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 35
Amounts in thousands
Principal Capital
Appreciation Account
Principal
LifeTime 2010 Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Operations
N
et investment income (loss) ....................................................................... $ 943 $ 1,733 $ 100
$ 901
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... (2,891) 1,188 258
1,263
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 5,731 (2,462) 958
(2,628)
Net Increase (Decrease) in Net Assets Resulting from Operations 3,783 459 1,316
(464)
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(404)
–
(986)
Class 2 .........................................................................................
–
(3) N/A
N/A
From net realized gain on investments:
Class 1 .........................................................................................
–
(2,851)
–
–
Class 2 .........................................................................................
–
(134) N/A
N/A
Total Dividends and Distributions
–
(3,392)
–
(986)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 2,020 3,759 4,842
5,796
Class 2 ......................................................................................... 714 702 N/A
N/A
Shares issued in acquisition:
Class 1 ......................................................................................... N/A 139,230 N/A
N/A
Class 2 ......................................................................................... N/A 1,001 N/A
N/A
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
3,255
–
986
Class 2 .........................................................................................
–
137 N/A
N/A
Shares redeemed:
Class 1 ......................................................................................... (11,399) (21,791) (4,560)
(11,512)
Class 2 ......................................................................................... (626) (1,192) N/A
N/A
Net Increase (Decrease) in Net Assets from Capital Share Transactions (9,291) 125,101 282
(4,730)
Total Increase (Decrease) (5,508) 122,168 1,598
(6,180)
Net Assets
Beginning of period ................................................................................. 162,249 40,081 41,132
47,312
End of period (including undistributed net investment income as set forth below) ................ $ 156,741 $ 162,249 $ 42,730
$ 41,132
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 2,688 $ 1,745 $ 1,000
$ 900
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 93 169 397
456
Class 2 ......................................................................................... 33 30 N/A
N/A
Shares issued in acquisition:
Class 1 ......................................................................................... N/A 6,089 N/A
N/A
Class 2 ......................................................................................... N/A 44 N/A
N/A
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
143
–
79
Class 2 .........................................................................................
–
6 N/A
N/A
Shares redeemed:
Class 1 ......................................................................................... (520) (967) (374)
(912)
Class 2 ......................................................................................... (28) (53) N/A
N/A
N
et Increase (Decrease) ............................................................................. (422) 5,461 23
(377)
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 36
Amounts in thousands
Principal
LifeTime 2020 Account
Principal
LifeTime 2030 Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015(a)
Period
Ended June
30, 2016
Year Ended
December
31, 2015(a)
Operations
N
et investment income (loss) ....................................................................... $ 418 $ 3,660 $ 187
$ 1,988
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... (271) 6,614 27
4,932
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 4,711 (12,276) 2,146
(8,152)
Net Increase (Decrease) in Net Assets Resulting from Operations 4,858 (2,002) 2,360
(1,232)
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(5,282)
–
(3,046)
Class 2 .........................................................................................
–
(1)
–
–
From net realized gain on investments:
Class 1 .........................................................................................
–
(9,330)
–
(4,446)
Class 2 .........................................................................................
–
(1)
–
(1)
Total Dividends and Distributions
–
(14,614)
–
(7,493)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 11,576 23,798 11,455
18,970
Class 2 .........................................................................................
–
26 16
28
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
14,612
–
7,492
Class 2 .........................................................................................
–
2
–
1
Shares redeemed:
Class 1 ......................................................................................... (16,427) (42,280) (10,565)
(18,013)
Class 2 ......................................................................................... (1)
–
(1)
(1)
Net Increase (Decrease) in Net Assets from Capital Share Transactions (4,852) (3,842) 905
8,477
Total Increase (Decrease) 6 (20,458) 3,265
(248)
Net Assets
Beginning of period ................................................................................. 191,012 211,470 116,717
116,965
End of period (including undistributed net investment income as set forth below) ................ $ 191,018 $ 191,012 $ 119,982
$ 116,717
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 4,077 $ 3,659 $ 2,175
$ 1,988
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 922 1,743 1,024
1,550
Class 2 .........................................................................................
–
2 2
2
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
1,118
–
630
Shares redeemed:
Class 1 ......................................................................................... (1,320) (3,106) (941)
(1,465)
N
et Increase (Decrease) ............................................................................. (398) (243) 85
717
(a) Period from May 1, 2015, date operations commenced, through December 31, 2015 for Class 2 shares.
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 37
Amounts in thousands
Principal
LifeTime 2040 Account
Principal
LifeTime 2050 Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015(a)
Period
Ended June
30, 2016
Year Ended
December
31, 2015(a)
Operations
N
et investment income (loss) ....................................................................... $ 36 $ 690 $ 16
$ 339
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... (142) 1,810 (71)
1,071
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 644 (2,974) 117
(1,529)
Net Increase (Decrease) in Net Assets Resulting from Operations 538 (474) 62
(119)
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(1,129)
–
(602)
Class 2 .........................................................................................
–
–
–
(1)
From net realized gain on investments:
Class 1 .........................................................................................
–
(1,632)
–
(1,069)
Class 2 .........................................................................................
–
(1)
–
(1)
Total Dividends and Distributions
–
(2,762)
–
(1,673)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 5,836 12,548 2,142
6,576
Class 2 ......................................................................................... 11 11
–
37
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
2,761
–
1,671
Class 2 .........................................................................................
–
1
–
2
Shares redeemed:
Class 1 ......................................................................................... (5,589) (9,118) (2,669)
(4,753)
Net Increase (Decrease) in Net Assets from Capital Share Transactions 258 6,203 (527)
3,533
Total Increase (Decrease) 796 2,967 (465)
1,741
Net Assets
Beginning of period ................................................................................. 45,271 42,304 23,537
21,796
End of period (including undistributed net investment income as set forth below) ................ $ 46,067 $ 45,271 $ 23,072
$ 23,537
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 726 $ 690 $ 355
$ 339
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 446 871 169
473
Class 2 ......................................................................................... 1 1
–
3
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
196
–
123
Shares redeemed:
Class 1 ......................................................................................... (420) (639) (215)
(335)
N
et Increase (Decrease) ............................................................................. 27 429 (46)
264
(a) Period from May 1, 2015, date operations commenced, through December 31, 2015 for Class 2 shares.
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 38
Amounts in thousands
Principal
LifeTime 2060 Account
Principal LifeTime
Strategic Income Account
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Operations
N
et investment income (loss) ....................................................................... $ 1 $ 28 $ 69
$ 625
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... (7) 80 (39)
708
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 29 (150) 907
(1,542)
Net Increase (Decrease) in Net Assets Resulting from Operations 23 (42) 937
(209)
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(22)
–
(608)
From net realized gain on investments:
Class 1 .........................................................................................
–
(32)
–
–
Total Dividends and Distributions
–
(54)
–
(608)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 613 1,759 2,368
3,369
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
54
–
608
Shares redeemed:
Class 1 ......................................................................................... (246) (445) (2,225)
(8,724)
Net Increase (Decrease) in Net Assets from Capital Share Transactions 367 1,368 143
(4,747)
Total Increase (Decrease) 390 1,272 1,080
(5,564)
Net Assets
Beginning of period ................................................................................. 2,097 825 24,452
30,016
End of period (including undistributed net investment income as set forth below) ................ $ 2,487 $ 2,097 $ 25,532
$ 24,452
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $29
$28 $ 694
$ 625
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 55 142 211
292
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
5
–
54
Shares redeemed:
Class 1 ......................................................................................... (22) (36) (199)
(760)
N
et Increase (Decrease) ............................................................................. 33 111 12
(414)
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 39
Amounts in thousands
Real Estate
Securities Account SAM Balanced Portfolio
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Operations
N
et investment income (loss) ....................................................................... $ 1,702 $ 2,514 $ 907
$ 16,480
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... 8,890 14,073 (1,711)
50,604
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 7,101 (10,156) 24,087
(73,516)
Net Increase (Decrease) in Net Assets Resulting from Operations 17,693 6,431 23,283
(6,432)
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(2,423)
–
(22,820)
Class 2 .........................................................................................
–
(27)
–
(2,672)
From net realized gain on investments:
Class 1 .........................................................................................
–
(4,938)
–
(58,520)
Class 2 .........................................................................................
–
(56)
–
(7,497)
Total Dividends and Distributions
–
(7,444)
–
(91,509)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 9,275 18,700 9,074
24,942
Class 2 ......................................................................................... 348 1,699 3,845
9,886
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
7,361
–
81,340
Class 2 .........................................................................................
–
83
–
10,169
Shares redeemed:
Class 1 ......................................................................................... (13,086) (32,474) (60,108)
(113,505)
Class 2 ......................................................................................... (388) (263) (5,807)
(12,203)
Net Increase (Decrease) in Net Assets from Capital Share Transactions (3,851) (4,894) (52,996)
629
Total Increase (Decrease) 13,842 (5,907) (29,713)
(97,312)
Net Assets
Beginning of period ................................................................................. 161,286 167,193 829,448
926,760
End of period (including undistributed net investment income as set forth below) ................ $ 175,128 $ 161,286 $ 799,735
$ 829,448
Undistributed (Overdistributed) Net Investment Income (Loss) ................................... $ 4,262 $ 2,560 $ 17,382
$ 16,475
Increase (Decrease) in Capital Shares
Shares sold:
Class 1 ......................................................................................... 411 826 616
1,554
Class 2 ......................................................................................... 16 75 267
616
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
339
–
5,380
Class 2 .........................................................................................
–
4
–
678
Shares redeemed:
Class 1 ......................................................................................... (588) (1,458) (4,106)
(7,117)
Class 2 ......................................................................................... (17) (12) (402)
(762)
N
et Increase (Decrease) ............................................................................. (178) (226) (3,625)
349
STATEMENTS OF CHANGES IN NET ASSETS
PRINCIPAL VARIABLE CONTRACTS FUNDS,INC.
(unaudited)
See accompanying notes. 40
Amounts in thousands
SAM Conservative
Balanced Portfolio
SAM Conservative
Growth Portfolio
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Period
Ended June
30, 2016
Year Ended
December
31, 2015
Operations
N
et investment income (loss) ....................................................................... $ 500 $ 5,189 $ (142)
$ 4,017
N
et realized gain (loss) on investments, foreign currencies, futures,
options and swaptions, short sales, and swap agreements ......................................... (1,216) 8,204 (3,139)
18,450
Change in unrealized appreciation/depreciation of investments, futures, options and swaptions,
short sales, swap agreements, and translation of assets and liabilities in foreign currencies ...... 7,861 (14,940) 9,706
(25,979)
Net Increase (Decrease) in Net Assets Resulting from Operations 7,145 (1,547) 6,425
(3,512)
Dividends and Distributions to Shareholders
From net investment income:
Class 1 .........................................................................................
–
(6,438)
–
(4,461)
Class 2 .........................................................................................
–
(547)
–
(2,142)
From net realized gain on investments:
Class 1 .........................................................................................
–
(9,390)
–
(12,644)
Class 2 .........................................................................................
–
(857)
–
(6,779)
Total Dividends and Distributions
–
(17,232)
–
(26,026)
Capital Share Transactions
Shares sold:
Class 1 ......................................................................................... 6,690 18,108 6,830
20,596
Class 2 ......................................................................................... 579 4,029 3,512
13,112
Shares issued in reinvestment of dividends and distributions:
Class 1 .........................................................................................
–
15,828
–
17,105
Class 2 .........................................................................................
–
1,404
–
8,921
Shares redeemed:
Class 1 ......................................................................................... (15,737) (29,800) (14,35