Affiliates

Principal Global Investors offers expertise in the management of growth equities through our affiliate, Columbus Circle Investors. With $15.3 billion in assets under management,* as of June 30, 2008, Columbus Circle Investors (CCI) provides a strong history in growth-oriented equity investment management. The firm was founded in 1975 and is based in Stamford, Conn. CCI is distinguished by its depth of investment management expertise, the long-term continuity of its senior professionals and its focused investment process. CCI manages assets for a diverse variety of organizations including corporate, government, endowment and foundation and Taft-Hartley funds.

With $13.3 billion in assets under management,* as of June 30, 2008, Post Advisory Group (Post) is a leading manager of high yield fixed income and related alternative investments. Post's predecessor firm was founded in 1992 by Larry Post, a pioneer in the U.S. high yield market, and is based in Los Angeles, California. The firm's investment capabilities include a full spectrum of product offerings ranging from traditional high yield to distressed debt and leveraged loan strategies.

For each of its capabilities, Post applies a consistent investment philosophy. This philosophy is based on the belief that superior performance is achieved by identifying three specific attributes: (1) value identification, (2) downside protection, and (3) risk diversification. The disciplined process used to implement this philosophy has been enhanced and refined since the firm's inception to meet changing capital markets conditions. Post has successfully navigated both up and down market cycles, which provides a competitive advantage in analyzing the potential downside risk of each investment.

With $11.0 billion in assets under management,* as of June 30, 2008, Spectrum Asset Management is one of the largest managers of preferred securities portfolios in the United States. The firm was founded in 1987 and is based in Stamford, Connecticut. Spectrum's investment capabilities emphasize hybrid preferred securities, generally the highest yielding investment grade securities in the U.S. capital markets. Preferred securities also offer diversification and relatively low volatility compared to traditional equity alternatives. Spectrum offers intermediate and short duration investment programs, which use an allocation of $25 par preferreds, $1,000 par capital securities, and dividends received deduction issues to best achieve a client's objectives. When consistent with client guidelines, portfolios may be hedged to manage interest rate risk to a targeted duration.

Principal Global Investors offers specialized expertise in the management of stable value portfolios through our affiliate, Morley Financial Services, Inc. (Morley). With $14.6 billion in assets under management,* as of June 30, 2008, Morley has a long history in stable value and other short duration fixed income investment management. The firm was founded in 1982 and is based in Portland, Oregon. Morley’s senior investment staff averages over 20 years of broad experience in stable value and total return fixed income management. Their disciplined investment process, with an emphasis on credit research, sector & security selection and liquidity management techniques, has consistently met client objectives and delivered strong performance.

Edge Asset Management offers specialized expertise in managing equities, fixed income and asset allocation portfolios. Edge has been a pioneer in the field of actively managed asset allocation funds and is a leading manager of value equities and taxable fixed-income securities. The firm manages the Strategic Asset Management (SAM) Portfolios, a target-risk investment option for lifecyle funds. Edge has $15.0 billion in equity and fixed income assets, including $12.4 billion in asset allocation products/accounts,* as of June 30, 2008. Edge is an affiliate of Principal Global Investors, and a member of the Principal Financial Group®.