Affiliates

Principal Global Investors offers expertise in the management of growth equities through our affiliate, Columbus Circle Investors. With $15.7 billion in assets under management,* as of December 31, 2009, 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 $9.3 billion in assets under management* as of December 31, 2009**, Post Advisory Group (Post) is a leading manager of high yield fixed income. 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 offers two products with different risk/return profiles; Traditional High Yield and High Yield Plus.

Post applies a consistent investment philosophy that 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.

**The asset total does not include Post’s former alternative investments business (approximately $3 billion in assets), which was spun-off effective January 1, 2009, to Beach Point Capital Management LP (“Beach Point”). Beach Point is 100% owned by portfolio managers Carl Goldsmith and Scott Klein. A shared services arrangement between Post and Beach Point is in place.

With $9.2 billion in assets under management,* as of December 31, 2009, 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 one of the highest yielding high grade securities in the U.S. capital markets. Preferred securities also offer diversification attributes 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 $15.5 billion in assets under management,* as of December 31, 2009, 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 $10.7 billion in equity and fixed income assets, including $9.9 billion in asset allocation products/accounts,* as of December 31, 2009. Edge is an affiliate of Principal Global Investors, and a member of the Principal Financial Group®.

The Macro Currency Group is the specialist currency investment group within Principal Global Investors with over $3.5 billion in assets under management* for global institutional clients. The Macro Currency Group has been managing currency mandates on behalf of clients for over 17 years. The group’s management strategy is tailored to investor requirements and includes both leveraged and unleveraged absolute return strategies as well as benchmark-oriented strategic currency overlay.