High Yield I Separate Account-R6 as of 06/30/2010
Composition as of % of Assets Top ten holdings % of net Analysis
U.S. Bonds 86.42 1. Hca 9.25% 1.52 # of Stock Hldgs 8
Non-U.S. Bonds 7.19 2. Gmac 8% 1.46 # of Bond Hldgs 633
3. Cit Grp 7% 1.31 # of Other Hldgs 26
Non-U.S. Stocks 0.68
4. Intelsat Bermuda 11.5% 0.88 Turnover Ratio 104%
U.S. Stocks 0.20 5. Chesapeake Engy 6.875% 0.84
Other 0.14 6. Ford Motor Credit Co 8.125% 0.84
Convertibles 0.12 7. Sprint Cap 6.875% 0.81
8. Citizens Comms 9% 0.79
9. Engy Future Hldgs 10.875% 0.73
10. Sabine Pass Lng L P 7.5% 0.69
% of net assets in top ten holdings* 9.88
Credit Analysis % Bonds Statistics
As of 04/30/2010 Avg Eff Duration (Yrs) 4.08
AAA 4.23 Avg Eff Maturity (Yrs) 7.18
AA 0.00 Avg Weighted Price 96.62
Below B 27.65
Not Rated 2.03
Separate Accounts are available through a group annuity contract with the Principal Life Insurance Company. Insurance products and plan administrative
services are provided by Principal Life Insurance Company a member of the Principal Financial Group, Des Moines, IA 50392. See the group annuity contract for
the full name of the Separate Account. Certain investment options may not be available in all states or U.S. commonwealths.
The full name of this investment option is Principal High Yield I Separate Account-R6.
Barclays Capital US Corp High Yld 2% Issuer Capped Index is an unmanaged in ex comprised of fixed rate, non-investment grade debt securities that are dollar
denominated. The index limits the maximum exposure to any one issuer to 2%.
Alpha - The difference between an investment's actual returns and its expected performance, given its level of risk (as measured by beta). Beta - An
investment's sensitivity to market movements. R-squared - Ranges from 0 to 100 and reveals how closely an investment's returns track those of a benchmark
index. Standard Deviation - Measures how much an investment's returns are likely to fluctuate. Mean - Represents the annualized total return for a fund
over 3 and 5 years. Sharpe Ratio - Measures how an investment balances risks and rewards. The higher the Sharpe ratio, the better the investment's historical
risk-adjusted performance. Excess Return - The difference between a manager's return and the return of an external standard such as a passive index. Excess
Risk - The standard deviation or volatility of excess returns. Information Ratio - A risk-adjusted measure commonly used to evaluate an active manager's
involvement skill. It's defined as the manager's excess return divided by the variability or standard deviation of the excess return.
Portfolio holdings are subject to change and companies referenced in this report may not currently be held. Information is current as of the creation of this
piece. Keep in mind that portfolio holdings are subject to risk. For a complete list of the most recent publicly available holdings visit www.principal.com.
High yield investment options are subject to greater credit risk associated with high yield bonds.
This Separate Account invests solely in the Institutional class shares of the Principal Funds. All voting rights associated with ownership of shares in the mutual
fund are the rights of the Separate Account, not of contract holders investing in the Separate Account. For further information on the underlying mutual fund,
see the prospectus of the fund.
Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of bond investment
options nor their yields are guaranteed by the U.S. government.
Effective January 2, 2008, this portfolio is co-sub-advised by JP Morgan and Neuberger Berman Fixed Income LLC (formerly named Lehman Brothers Asset
Management). Prior to January 2, 2008 Post Advisory Group was a third sub-advisor for this portfolio. Performance results displayed reflect all sub-advisors
managing this portfolio during the time periods displayed.
Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.
Formerly known as High Yield Separate Account.
* Values may exceed 100% if both long and short positions are included in the portfolio.