CONTRACTUAL FEE WAIVER AGREEMENT
CONTRACTUAL FEE WAIVER AGREEMENT
AGREEMENT to be effective March 1, 2023 by and between Principal Funds, Inc. (the "Fund") and Principal Global Investors, LLC (the "Advisor") (together, the "Parties").
The Advisor has contractually agreed to limit the Fund's expenses (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, and other extraordinary expenses) on certain share classes of certain of the Funds. For avoidance of doubt, the expenses associated with collecting tax reclaims in foreign countries, such as countries in the European Union, for taxes withheld in prior years are extraordinary expenses and, as such, are excluded from the expense limits. The reductions and reimbursements are in amounts that maintain total operating expenses at or below certain limits. The limits are expressed as a percentage of average daily net assets attributable to each respective class on an annualized basis. The expenses borne by the Advisor are subject to reimbursement by the Funds through the fiscal year end, provided no reimbursement will be made if it would result in the Funds' exceeding the total operating expense limits. The operating expense limits are attached on Schedule A to this Agreement.
Further, the Advisor has contractually agreed to waive a portion of the management fee it receives from certain Funds. The waiver is expressed as a percentage of average daily net assets. The management fee waivers are attached as Schedule B to this Agreement.
The Agreement embodies the entire agreement of the Parties relating to the subject matter hereof. This Agreement supersedes all prior agreement and understandings, and all rights and obligations thereunder are hereby canceled and terminated. No amendment or modification of this Agreement will be valid or binding unless it is in writing by the Parties.
This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Each Party agrees that electronic signatures of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record, including facsimile or email electronic signatures.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed effective as of the day and year first written above.
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PRINCIPAL GLOBAL INVESTORS, LLC |
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By: |
/s/ Xxxxx X. Xxxxx |
By: |
/s/ Xxxxx X. Xxxxx |
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Name: |
Xxxxx X. Xxxxx |
Name: |
Xxxxx X. Xxxxx |
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Title: |
Vice President, Counsel, and Assistant Secretary |
Title: |
Vice President, Associate General Counsel, and |
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Secretary |
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By: |
/s/ Xxxx X. Xxxxxx |
By: |
/s/ Xxxx X. Xxxxxx |
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Name: |
Xxxx X. Xxxxxx |
Name: |
Xxxx X. Xxxxxx |
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Title: |
Vice President and Secretary |
Title: |
Assistant General Counsel |
1
SCHEDULE A
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Series |
Class A |
Class C |
Class J |
Institutional |
Expiration |
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Class |
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California Municipal Fund |
N/A |
N/A |
N/A |
0.46% |
02/29/2024 |
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Core Fixed Income Fund |
N/A |
N/A |
N/A |
0.46% |
02/29/2024 |
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Core Plus Bond Fund |
0.84% |
N/A |
N/A |
0.56% |
02/29/2024 |
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Diversified Income Fund |
N/A |
N/A |
N/A |
0.68% |
02/29/2024 |
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Diversified International Fund |
N/A |
N/A |
N/A |
0.85% |
02/29/2024 |
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Equity Income Fund |
N/A |
N/A |
N/A |
0.52% |
02/29/2024 |
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Finisterre Emerging Markets Total Return Xxxx Xxxx |
X/X |
X/X |
X/X |
0.85% |
02/29/2024 |
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Global Emerging Markets Fund |
1.45% |
N/A |
1.30% |
1.10% |
02/29/2024 |
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Global Real Estate Securities Fund |
N/A |
N/A |
N/A |
0.94% |
02/29/2024 |
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Government & High Quality Bond Fund |
N/A |
N/A |
N/A |
0.53% |
02/29/2024 |
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Government Money Market Fund |
N/A |
N/A |
N/A |
0.20% |
02/29/2024 |
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High Xxxxx Xxxx |
X/X |
X/X |
X/X |
0.61% |
02/29/2024 |
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International Fund I |
N/A |
N/A |
N/A |
0.79% |
02/29/2024 |
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LargeCap S&P 500 Index Fund |
N/A |
1.30% |
N/A |
N/A |
02/29/2024 |
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XxxXxx Xxxxxx Xxxx |
X/X |
X/X |
X/X |
0.75% |
02/29/2024 |
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MidCap Value Fund I |
N/A |
N/A |
N/A |
0.69% |
02/29/2024 |
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Money Market Fund |
0.50% |
N/A |
N/A |
N/A |
02/29/2024 |
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Principal LifeTime 2010 Fund |
0.38% |
N/A |
N/A |
N/A |
02/29/2024 |
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Principal LifeTime 2040 Fund |
0.38% |
N/A |
N/A |
N/A |
02/29/2024 |
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Principal LifeTime 2050 Fund |
0.38% |
N/A |
N/A |
N/A |
02/29/2024 |
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Principal LifeTime 2060 Fund |
N/A |
N/A |
0.38% |
N/A |
02/29/2024 |
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Principal LifeTime 2070 Fund |
N/A |
N/A |
0.30% |
0.05% |
02/28/2025 |
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Principal LifeTime Hybrid 0000 Xxxx |
X/X |
X/X |
X/X |
0.05% |
02/29/2024 |
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Principal LifeTime Hybrid 0000 Xxxx |
X/X |
X/X |
X/X |
0.05% |
02/29/2024 |
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Principal LifeTime Hybrid 0000 Xxxx |
X/X |
X/X |
X/X |
0.05% |
02/29/2024 |
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Principal LifeTime Hybrid 0000 Xxxx |
X/X |
X/X |
X/X |
0.05% |
02/29/2024 |
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Principal LifeTime Hybrid 0000 Xxxx |
X/X |
X/X |
X/X |
0.05% |
02/29/2024 |
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Principal LifeTime Hybrid 0000 Xxxx |
X/X |
X/X |
X/X |
0.05% |
02/29/2024 |
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Principal LifeTime Hybrid 0000 Xxxx |
X/X |
X/X |
X/X |
0.05% |
02/29/2024 |
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Principal LifeTime Hybrid 0000 Xxxx |
X/X |
X/X |
X/X |
0.05% |
02/29/2024 |
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Principal LifeTime Hybrid 2055 Fund |
N/A |
N/A |
0.30% |
0.05% |
02/29/2024 |
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Principal LifeTime Hybrid 2060 Fund |
N/A |
N/A |
0.30% |
0.05% |
02/29/2024 |
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Principal LifeTime Hybrid 2065 Fund |
N/A |
N/A |
0.30% |
0.05% |
02/29/2024 |
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Principal LifeTime Hybrid 2070 Fund |
N/A |
N/A |
0.30% |
0.05% |
02/28/2025 |
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Principal LifeTime Hybrid Income Fund |
N/A |
N/A |
N/A |
0.05% |
02/29/2024 |
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Principal LifeTime Strategic Income Fund |
0.38% |
N/A |
N/A |
N/A |
02/29/2024 |
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Real Estate Securities Fund |
N/A |
N/A |
N/A |
0.86% |
02/29/2024 |
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SmallCap Fund |
N/A |
N/A |
N/A |
0.85% |
02/29/2024 |
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SmallCap S&P 600 Index Fund |
N/A |
N/A |
N/A |
0.21% |
02/29/2024 |
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SmallCap Value Fund II |
N/A |
N/A |
N/A |
0.96% |
02/29/2024 |
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Tax-Exempt Xxxx Xxxx |
X/X |
X/X |
X/X |
0.45% |
02/29/2024 |
2
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Series |
R-1 |
R-3 |
R-4 |
R-5 |
Expiration |
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Government & High Quality Bond Fund |
1.29% |
0.98% |
0.79% |
0.67% |
02/29/2024 |
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Principal LifeTime 2070 Fund |
0.93% |
0.62% |
0.43% |
0.31% |
02/28/2025 |
In addition, the Advisor has contractually agreed to limit the expenses identified as "Other Expenses" related to certain share classes of certain of the Funds by paying, if necessary, expenses normally payable by the Fund (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, and other extraordinary expenses) to maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) at or below certain limits. For avoidance of doubt, the expenses associated with collecting tax reclaims in foreign countries, such as countries in the European Union, for taxes withheld in prior years are extraordinary expenses and, as such, are excluded from the expense limits. The limits are expressed as a percent of average net assets on an annualized basis. The Other Expenses limits and the agreement terms are as follows:
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Series |
Class R-6 |
Expiration |
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Diversified Income Fund |
0.02% |
02/29/2024 |
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Global Emerging Markets Fund |
0.04% |
02/29/2024 |
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Government Money Market Fund |
0.00% |
02/29/2024 |
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International Fund I |
0.04% |
02/29/2024 |
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Principal LifeTime Hybrid 2015 Fund |
0.02% |
02/29/2024 |
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Principal LifeTime Hybrid 2020 Fund |
0.02% |
02/29/2024 |
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Principal LifeTime Hybrid 2025 Fund |
0.02% |
02/29/2024 |
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Principal LifeTime Hybrid 2030 Fund |
0.02% |
02/29/2024 |
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Principal LifeTime Hybrid 2035 Fund |
0.02% |
02/29/2024 |
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Principal LifeTime Hybrid 2040 Fund |
0.02% |
02/29/2024 |
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Principal LifeTime Hybrid 2045 Fund |
0.02% |
02/29/2024 |
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Principal LifeTime Hybrid 2050 Fund |
0.02% |
02/29/2024 |
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Principal LifeTime Hybrid 2055 Fund |
0.02% |
02/29/2024 |
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Principal LifeTime Hybrid 2060 Fund |
0.02% |
02/29/2024 |
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Principal LifeTime Hybrid 2065 Fund |
0.02% |
02/29/2024 |
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Principal LifeTime Hybrid 2070 Fund |
0.02% |
02/28/2025 |
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Principal LifeTime Hybrid Income Fund |
0.02% |
02/29/2024 |
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SmallCap Fund |
0.02% |
02/29/2024 |
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SmallCap Growth Fund I |
0.01% |
02/29/2024 |
3
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Series |
Class A |
Class C |
Institutional |
Expiration |
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Class |
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Blue Chip Fund |
N/A |
N/A |
0.66% |
12/30/2023 |
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Diversified Real Asset Fund |
1.20% |
N/A |
0.83% |
12/30/2023 |
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Edge MidCap Fund |
1.10% |
N/A |
0.77% |
12/30/2023 |
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Global Multi-Strategy Fund |
N/A |
N/A |
1.48% |
12/30/2023 |
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Global Sustainable Listed Infrastructure |
N/A |
N/A |
0.88% |
12/30/2023 |
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International Equity Index Fund |
N/A |
N/A |
0.31% |
12/30/2023 |
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International Small Company Fund |
N/A |
N/A |
1.08% |
12/30/2023 |
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Opportunistic Municipal Fund |
0.84% |
N/A |
0.56% |
12/30/2023 |
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Origin Emerging Markets Fund |
1.45% |
N/A |
1.10% |
12/30/2023 |
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Small-MidCap Dividend Income Fund |
1.12% |
1.87% |
0.85% |
12/30/2023 |
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Small-MidCap Growth Fund |
N/A |
N/A |
0.83% |
12/30/2023 |
For Capital Securities Fund, the Advisor has agreed contractually to limit the Fund's expenses attributable to Class S shares by paying expenses normally payable by the Fund (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.00%. For avoidance of doubt, the expenses associated with collecting tax reclaims in foreign countries, such as countries in the European Union, for taxes withheld in prior years are extraordinary expenses and, as such, are excluded from the expense limit. It is expected that the expense limit will continue permanently (and in any event, at least through December 30, 2023); however, Principal Funds, Inc. and the Advisor, the parties to the agreement, may mutually agree to terminate the expense limit.
In addition, the Advisor has contractually agreed to limit the expenses identified as "Other Expenses" related to certain share classes of certain of the Funds by paying, if necessary, expenses normally payable by the Fund (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, and other extraordinary expenses) to maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) at or below certain limits. For avoidance of doubt, the expenses associated with collecting tax reclaims in foreign countries, such as countries in the European Union, for taxes withheld in prior years are extraordinary expenses and, as such, are excluded from the expense limits. The limits are expressed as a percent of average net assets on an annualized basis. The Other Expenses limits and the agreement terms are as follows:
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Series |
Class R-6 |
Expiration |
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Diversified Real Asset Fund |
0.02% |
12/30/2023 |
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Edge MidCap Fund |
0.02% |
12/30/2023 |
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Global Multi-Strategy Fund |
0.02% |
12/30/2023 |
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International Equity Index Fund |
0.04% |
12/30/2023 |
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International Small Company Fund |
0.04% |
12/30/2023 |
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Small-MidCap Dividend Income Fund |
0.02% |
12/30/2023 |
4
SCHEDULE B
|
Series |
Waiver |
Expiration |
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Blue Chip Fund |
0.03% |
12/30/2023 |
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Bond Market Index Fund |
0.015% |
12/30/2023 |
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High Income Fund |
0.015% |
02/29/2024 |
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LargeCap Growth Fund I |
0.016% |
02/29/2024 |
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LargeCap Value Fund III |
0.065% |
02/29/2024 |
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MidCap Growth Fund III |
0.02% |
02/29/2024 |
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MidCap Value Fund I |
0.02% |
02/29/2024 |
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Overseas Fund |
0.02% |
02/29/2024 |
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SmallCap Growth Fund I |
0.02% |
02/29/2024 |
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SmallCap Value Fund II |
0.02% |
02/29/2024 |
5
