Login
Preferred Securities Fund - D2 Class Inc Plus Units (HKD)
Important Notes
- The Fund will invest primarily in a portfolio of US dollar denominated preferred securities and debt securities.
- 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.
- In relation to D2 Class Income Plus Units of the Fund, the dividends which may be distributed by such class of units may be paid effectively out of the capital of the Fund (i.e. making the distribution from gross income while charging all or part of the Fund's fees and expenses to capital), resulting in an increase in distributable income for the payment of dividends by the Fund and an immediate reduction of the net asset value per unit of the Fund. Payment of dividends effectively out of capital amounts to a return or withdrawal of part of an investor's original investment or from any capital gains attributable to that original investment. Dividend is not guaranteed.
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.
Diversification
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.
NAV ^
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. 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. For details please refer to KFS and Summary Prospectus.
-
Series Name
Principal Global Investors Funds
-
Fund Name
Preferred Securities Fund - D2 Class Inc Plus Units (HKD)
-
Asset Class
Preferred Securities
-
Fund Domicile
Ireland
-
Base Currency
USD
-
Fund Size
HKD31,823.4 million As of 31/12/2022
-
3 years annualized volatility1
N/A
-
Management Fees
0.60% pa
-
Investment Manager
Mark A. Lieb / L. Phillip Jacoby, IV / Manu Krishnan / Bob Giangregorio / Fred Diaz / Kevin Nugent / Satomi Yarnell
-
Launch Date (DD/MM/YYYY)
02/06/2020
-
Ongoing charges over a year2
1.38%
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, no data will be displayed 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 2021, 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, set up cost and other expenses. The set up costs are based on the amortised portion recognised in accordance with the section “Fees and Expenses” of the Summary Prospectus.
Cumulative Return (%)
| As of (DD/MM/YYYY) | 1 Month | 3 Months | Year To Date | 1 Year | 3 Years | 5 Years | Since Inception | |
|---|---|---|---|---|---|---|---|---|
| Fund | 31/12/2022 | 1.03 | 3.42 | -10.6 | -10.6 | N/A | N/A | -0.34 |
| Index | 31/12/2022 | -0.28 | 2.86 | -15.18 | -15.18 | N/A | N/A | -9.76 |
Calendar Year Return (%)
As of (DD/MM/YYYY)
2022
2021
2020
2019
2018
Fund
31/12/2022
-10.6
2.26
N/A
N/A
N/A
Index
31/12/2022
-15.18
-0.34
N/A
N/A
N/A
| As of (DD/MM/YYYY) | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|
| Fund | 31/12/2022 | -10.6 | 2.26 | N/A | N/A | N/A |
| Index | 31/12/2022 | -15.18 | -0.34 | N/A | N/A | N/A |
| Dividend Period End Date | Dividend per unit | Dividend paid out of net distributable income for the period | Dividend effectively paid out of capital |
|---|---|---|---|
| 30/06/2020 | HKD 0.0502 | 57.22% | 42.78% |
| 31/07/2020 | HKD 0.0542 | 57.91% | 42.09% |
| 31/08/2020 | HKD 0.0548 | 58.07% | 41.93% |
| 30/09/2020 | HKD 0.0543 | 53.76% | 46.24% |
| 30/10/2020 | HKD 0.0542 | 55.20% | 44.80% |
| 30/11/2020 | HKD 0.0552 | 50.70% | 49.30% |
| 31/12/2020 | HKD 0.0553 | 52.35% | 47.65% |
| 29/01/2021 | HKD 0.0551 | 32.01% | 67.99% |
| 26/02/2021 | HKD 0.0551 | 50.03% | 49.97% |
| 31/03/2021 | HKD 0.0544 | 41.44% | 58.56% |
| 30/04/2021 | HKD 0.0544 | 41.27% | 58.73% |
| 31/05/2021 | HKD 0.0543 | 35.56% | 64.44% |
| 30/06/2021 | HKD 0.0544 | 42.11% | 57.89% |
| 30/07/2021 | HKD 0.0505 | 47.09% | 52.91% |
| 31/08/2021 | HKD 0.0506 | 62.22% | 37.78% |
| 30/09/2021 | HKD 0.0506 | 52.19% | 47.81% |
| 29/10/2021 | HKD 0.0498 | 53.23% | 46.77% |
| 30/11/2021 | HKD 0.0491 | 56.17% | 43.83% |
| 31/12/2021 | HKD 0.0491 | 59.90% | 40.10% |
| 31/01/2022 | HKD 0.0482 | 54.50% | 45.50% |
| 28/02/2022 | HKD 0.0469 | 69.88% | 30.12% |
| 31/03/2022 | HKD 0.0463 | 67.77% | 32.23% |
| 29/04/2022 | HKD 0.0448 | 57.77% | 42.23% |
| 31/05/2022 | HKD 0.0443 | 69.85% | 30.15% |
| 30/06/2022 | HKD 0.0424 | 69.69% | 30.31% |
| 29/07/2022 | HKD 0.0437 | 65.72% | 34.28% |
| 31/08/2022 | HKD 0.0428 | 75.28% | 24.72% |
| 30/09/2022 | HKD 0.0406 | 74.65% | 25.35% |
| 28/10/2022 | HKD 0.0471 | 68.32% | 31.68% |
| 30/11/2022 | HKD 0.0479 | 71.41% | 28.59% |
| 30/12/2022 | HKD 0.0483 | 65.62% | 34.38% |
Distributions of the D2 Class Income Plus Units and Hong Kong Dollar D2 Class Income Plus Units will be declared and paid monthly within 30 days of the end of each calendar month.
Dividend, if declared, will be automatically re-invested unless cash distribution is applied for.
Net distributable income = "Gross income (other than any realised gain on sale of investments, unrealised gain on investments and foreign exchange gain)" less "total expenses incurred by fund"
Warning: Please note that a positive distribution yield does not imply a positive return. Investors should not make any investment decision solely based on information contained in the table above. You should read the relevant offering document (including the key facts statement) of the fund for further details including the risk factors.
-
Explanatory Memorandum / Summary Prospectus
-
Product Key Facts - Preferred Securities Fund
-
Sales Flyer - Preferred Securities Fund
-
Fund Fact Sheets - D2 Class Inc Plus Units HKD
-
Dividend Records - Preferred Securities Fund
-
Condensed Interim Report and Unaudited Financial Statements (For The Period Ended 31 March 2022)
-
Annual Report and Audited Financial Statements (For The Year Ended 30 September 2022)
-
HK Unitholder Notice (All Funds) (11 January 2023)
-
HK Unitholder Notice (Preferred Securities Fund) (16 December 2021)
-
HK Unitholder Notice (All Funds) (17 June 2020)
-
HK Unitholder Notice (Preferred Securities Fund)
-
HK Unitholder Notice (European Equity Fund / Global Equity Fund / High Yield Fund / Preferred Securities Fund)
-
HK Unitholder Notice (All Funds) (20 December 2019)
-
Summary Prospectus - First Addendum (21 August 2020)
-
Annex II - Template pre-contractual disclosure for the financial products
-
Mutual Funds Product Range Brochure