Principal Preferred Securities Fund - A Class Acc Units (USD)

Important Notes

  • The Principal Preferred Securities Fund will invest primarily in a portfolio of U.S. dollar denominated preferred securities and debt securities.

  • The Fund's investments will be offered on markets listed in Appendix A to the Summary Prospectus, although it is anticipated that the majority will be issued by U.S. issuers. Compared with a well-diversified fund, its concentration risk is relatively high and hence it might be more volatile than a well-diversified fund.

  • Investment involves risk. There is no assurance on investment returns and you may not get back the amount originally invested.

  • The investment decision is yours but you should not invest in this Fund unless the intermediary who sells it to you has advised you that it is suitable for you and explained how it is consistent with your investment objectives.

  • You should not invest solely in reliance on this website alone. You should read the Summary Prospectus and the relevant Supplement(s) before investing including the Special Investment Considerations and Risks section of the Summary Prospectus. 


High Quality Credits

In the US Dollar Fixed Income market, preferred and capital securities is one of the asset classes with higher yields and credit ratings at the same time. Nearly 90% of the senior debt of preferred and capital securities issuers is investment-grade, making preferred and capital securities reasonably comparable to high grades.



Preferred and capital securities historically have had a low correlation to other fixed-income and equity products in various market conditions, as shown in the table below. Investors can capture potential returns and stable yields throughout different economic cycles through a strategic allocation with preferred and capital securities.


Preferred Securities’s Performance Comparing to Key Asset Classes Over the Past 10 Years

In recent years, when the market went up, preferred securities performed better than the other fixed income products; while when the market went down, it secured a greater capital protection comparing with equities.


Lower Default Rates than Other Fixed Income Instruments

Comparing with the high-yield bond market, preferred and capital securities historically have had lower default rates. The issuers of preferred securities are usually corporates with stable financial status and therefore higher credit ratings.


Potentially Higher Yields than Other Corporate Bonds

The yield of the preferred and capital securities is 5.50%, which generates higher yields than 10-year U.S. Treasuries and investment grade corporate bonds.


Compelling Return with Much Less Volatility Relative to Equity

Coupon premium offered due to subordination plus concentration to financial services sectors add up to a high total return at a volatility comparable to other fixed income instruments.

Source: please refer to the sales flyer in download section.

Strong AUM Growth with a Long Track Record

As the only authorized preferred securities fund with long proven track record in Hong Kong, the asset size of the fund grew exponentially since launch in 2005, with more than 53 times over the past 11 years.


High Credit Quality

The fund possesses high credit quality with about 80% rated investment grade.


Attractive Income Opportunities by Dividend Payout

Preferred and capital securities offer the potential for higher yields than corporate bonds and behave like fixed-income investment due to the amount of income they generate.


Outstanding long-term performance


Highly Specialized and Experienced Team

Spectrum Asset Management (Spectrum) was founded in 1987 and it is one of the largest specialized managers of preferred and capital securities in the United States and the world. Spectrum has a team of 10 investment professionals with an average of 28 years’ of industry experience. Mark Lieb and Phillip Jacoby are + rated by Citywire for the 3-year risk adjusted performance for the period 28 February 2017 to 29 February 2020.

Source: please refer to the sales flyer in download section.
16.97 USD
Daily Change
Valuation Date (DD/MM/YYYY)

^ The unit price of the fund is calculated on net asset value.

Investment Objective:

The overall objective of the Fund is to provide an income return consistent with capital preservation.

Investment Policy:

The Fund seeks to achieve its overall objective by investing primarily in a portfolio of US dollar denominated preferred securities and debt securities. Preferred securities for this purpose refer to securities with a claim to a company’s earnings before payment can be made on common stock, and which are usually entitled to priority over common stock if a company liquidates. For details please refer to KFS & Summary Prospectus.

  • Series Name

    Principal Global Investors Funds

  • Fund Name

    Principal Preferred Securities Fund - A Class Acc Units (USD)

  • Asset Class

    Preferred Securities

  • Fund Domicile


  • Base Currency


  • Fund Size

    USD4,750.3million As of 31/08/2020

  • 3 years annualized volatility1

    9.92 As of 31/08/2020

  • Management Fees


  • Investment Manager

    Mark A. Lieb; L. Phillip Jacoby, IV; Manu Krishnan; Bob Giangregorio; Fred Diaz

  • Launch Date (DD/MM/YYYY)


  • Ongoing charges over a year2

    1.09% As of 30/09/2019

  1. The 3 Years Annualized Volatility shows the risk of a fund and is calculated as an annualized standard deviation based on the monthly rates of return of the constituent fund over the past three years. However, it is not required to indicate the 3 Years Annualized Volatility if the period between the reporting date of the website and the inception date for the fund is less than 3 years.
  2. The ongoing charges are based on last year’s expenses, for the year ended 30 September 2019, and this figure may vary from year to year. The ongoing charges include management fee, trustee fee, administration fee, custodian fee, audit fee, professional expense, legal fee and other expenses. 

Cumulative Return (%)

  As of (DD/MM/YYYY) 1 month 3 months Year To Date 1 year 3 years 5 years Since Inception
Fund 31/08/2020 1.67 5.73 1.05 4.58 12.26 28.69 64.3
Index 31/08/2020 -1.14 3.91 6.78 7.4 20.15 34.28 52.59

Calendar Year Return (%)

  As of (DD/MM/YYYY) 2019 2018 2017 2016 2015
Fund 31/08/2020 16.23 -5.44 9.83 4.88 2.43
Index 31/08/2020 14.06 -2.24 6.32 5.95 -0.42

For further details, please refer to Fund Fact Sheet.
  • fd-label-icon
    Explanatory Memorandum / Summary Prospectus
  • fd-label-icon
    Product Key Facts - Preferred Securities Fund
  • fd-label-icon
    Sales Flyer - Preferred Securities Fund
  • fd-label-icon
    Fund Fact Sheet - Preferred Securities Fund - A Acc Units USD
  • fd-label-icon
    HK Unitholder Notice (European Equity Fund / Global Equity Fund / High Yield Fund / Preferred Securities Fund)
  • fd-label-icon
    HK Unitholder Notice (Preferred Securities Fund)
  • fd-label-icon
    Condensed Interim Report and Unaudited Financial Statements (For The Period Ended 31 March 2020)
  • fd-label-icon
    Annual Report and Audited Financial Statements
  • fd-label-icon
    HK Unitholder Notice (All Funds) (17 June 2020)
  • fd-label-icon
    HK Unitholder Notice (All Funds) (20 December 2019)
  • fd-label-icon
    Summary Prospectus - First Addendum (21 August 2020)

This material is intended for general reference only. This material does not constitute an offer or solicitation or invitation or advice or recommendation to enter into any transactions.  Investment involves risk. There is no assurance on investment returns.  You should consider your own risk tolerance level and financial circumstances before making any investment choices. If you are in doubt as to whether a certain fund or product mentioned in this material is suitable for you, you should seek independent professional advice

Issuer of this material

Principal Global Investors Funds, CCB Principal Selected Growth Mixed Asset Fund, CCB Principal Dual Income Bond Fund 
Issuer: Principal Investment & Retirement Services Limited

Principal Life Style Fund, Principal Prosperity Series
Issuer: Principal Asset Management Company (Asia) Limited

This material has not been reviewed by the Securities and Futures Commission.