PRINCIPAL FUNDS, INC. SUB-ADVISORY AGREEMENT SCHRODER INVESTMENT MANAGEMENT NORTH AMERICA INC.
| PRINCIPAL FUNDS, INC. | ||
| SUB-ADVISORY AGREEMENT | ||
| ▇▇▇▇▇▇▇▇ INVESTMENT MANAGEMENT NORTH AMERICA INC. | ||
| AGREEMENT executed as of January 11, 2010, by and between PRINCIPAL MANAGEMENT CORPORATION, an | ||
| Iowa corporation (hereinafter called "the Manager"), and ▇▇▇▇▇▇▇▇ INVESTMENT MANAGEMENT NORTH | ||
| AMERICA INC., a Delaware corporation (hereinafter called “the Sub-Advisor). | ||
| W I T N E S S E T H: | ||
| WHEREAS, the Manager is the manager and investment adviser to each Fund of the Principal Funds, Inc., (the "Fund"), | ||
| an open-end management investment company registered under the Investment Company Act of 1940, as amended | ||
| (the "1940 Act"); and | ||
| WHEREAS, the Manager desires to retain the Sub-Advisor to furnish it with portfolio selection and related research and | ||
| statistical services in connection with the investment advisory services for each series identified in Appendix A ( | ||
| hereinafter called the “Series”), which the Manager has agreed to provide to the Fund, and the Sub-Advisor desires to | ||
| furnish such services; and | ||
| WHEREAS, The Manager has furnished the Sub-Advisor with copies properly certified or authenticated of each of the | ||
| following and will promptly provide the Sub-Advisor with copies properly certified or authenticated of any amendment or | ||
| supplement thereto: | ||
| (a) | Management Agreement (the "Management Agreement") with the Fund; | |
| (b) | The Fund's registration statement and financial statements as filed with the Securities and Exchange | |
| Commission; | ||
| (c) | The Fund's Articles of Incorporation and By-laws; | |
| (d) | Policies, procedures or instructions adopted or approved by the Board of Directors of the Fund relating to | |
| obligations and services provided by the Sub-Advisor. | ||
| NOW, THEREFORE, in consideration of the premises and the terms and conditions hereinafter set forth, the parties | ||
| agree as follows: | ||
| 1. | Appointment of Sub-Advisor | |
| In accordance with and subject to the Management Agreement, the Manager hereby appoints the Sub-Advisor | ||
| to perform the services described in Section 2 below for investment and reinvestment of the securities and other | ||
| assets of the Series, subject to the control and direction of the Manager and the Fund's Board of Directors, for | ||
| the period and on the terms hereinafter set forth. The Sub-Advisor accepts such appointment and agrees to | ||
| furnish the services hereinafter set forth for the compensation herein provided. The Sub-Advisor shall for all | ||
| purposes herein be deemed to be an independent contractor and shall, except as expressly provided or | ||
| authorized, have no authority to act for or represent the Fund or the Manager in any way or otherwise be | ||
| deemed an agent of the Fund or the Manager. | ||
| 2. | Obligations of and Services to be Provided by the Sub-Advisor | |
| The Sub-Advisor will: | ||
| (a) | Provide investment advisory services, including but not limited to research, advice and supervision for the | |
| Series. | ||
| (b) | Furnish to the Board of Directors of the Fund for approval (or any appropriate committee of such Board), | |
| and revise from time to time as economic conditions require, a recommended investment program for the | ||
| Fund consistent with the Series’ investment objective and policies. | ||
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