Preferred Securities Fund - D2 Class Inc Plus Units (USD)

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 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.

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Varied Coupon Structures

Preferred and Capital Securities have varied coupon structures for interest rate risks management. Increases in interest rates will likely lengthen duration for fixed-coupon perpetual securities, while securities with reset structures, on the other hand, may be less impacted.

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Favorable Yield Relative to Duration

Compared with traditional global government bonds and investment-grade bonds, preferred securities and capital securities are relatively attractive in terms of yield and duration. Meanwhile, its average credit quality outperforms higher-yield bonds.

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Historically Lower Default Rate than High Yield

Cumulative preferred and capital securities have coupons that can be deferred, and the deferred coupons will continue to accrue as a liability to the issuer. This may add extra protection for investors, as well as incentive for the issuing companies to keep making payments, which also potentially lowered the default rate of preferred and capital securities.

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Potential for Increased Risk-Adjusted Return

With relatively lower correlation to other asset classes, preferred and capital securities are likely to offer a diversification tool for both equities and fixed income investors. By adding preferred and capital securities to the portfolio, it may improve income profiles and risk-adjusted returns within diversified portfolios due to their unique and complementary characteristics.

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Banking System's Financial Condition Has Improved

Banks continued to report robust levels of capital and liquidity. Ample capital and liquidity positions make banks more resilient to economic shocks and allow them to continue to support the economic recovery. Banks' interest income for a given level of interest-bearing assets is likely to rise as the Fed raises its policy rate, and as longer-term rates rise, because banks can pass on rate increases to borrowers through floating rate loans and new fixed-rate loan originations.

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Strong AUM Growth with a Long Track Record

Principal Preferred Securities Fund is one of the earliest authorized preferred securities funds with more than 10 years of proven track record in Hong Kong. The asset size of the fund grew exponentially since A Class Income Units USD launch in 2005, with more than 4 times over the past 10 years.

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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.

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Outstanding Long-term Performance

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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 13 dedicated investment professionals with an average of 25 years of industry experience.

NAV ^
8.54 USD
Valuation Date (DD/MM/YYYY)
29/02/2024

^ 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 (USD)

  • Asset Class

    Preferred Securities

  • Fund Domicile

    Ireland

  • Base Currency

    USD

  • Fund Size

    USD3.92 billion As of 31/01/2024

  • 3 years annualized volatility1

    6.74 As of 31/01/2024

  • 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 2022, 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 31/01/2024 1.19 7.56 1.19 4.9 -1.04 N/A 7.83
Index 31/01/2024 -0.08 9.9 -0.08 4.37 -7.98 N/A -2.86

Calendar Year Return (%)

  As of (DD/MM/YYYY) 2023 2022 2021 2020 2019
Fund 31/01/2024 7.67 -10.69 1.66 N/A N/A
Index 31/01/2024 8.47 -15.28 -0.89 N/A N/A

Fund performance is calculated on a NAV to NAV basis, net performance including trustee and management fees. Please see Performance Notes section of the Fund Fact Sheet for the details.
Dividend Period End Date Dividend per unit Dividend paid out of net distributable income for the period Dividend effectively paid out of capital
31/01/2024 USD 0.0548 57.78% 42.22%
29/12/2023 USD 0.0512 67.75% 32.25%
30/11/2023 USD 0.0501 61.88% 38.12%
31/10/2023 USD 0.0488 72.62% 27.38%
29/09/2023 USD 0.0495 59.16% 40.84%
31/08/2023 USD 0.0501 68.03% 31.97%
31/07/2023 USD 0.0505 59.14% 40.86%
30/06/2023 USD 0.0502 63.04% 36.96%
31/05/2023 USD 0.0501 72.62% 27.38%
28/04/2023 USD 0.0503 53.16% 46.84%
31/03/2023 USD 0.0501 73.29% 26.71%
28/02/2023 USD 0.0519 55.46% 44.54%
31/01/2023 USD 0.0528 60.91% 39.09%
30/12/2022 USD 0.0479 57.52% 42.48%
30/11/2022 USD 0.0477 55.37% 44.63%
28/10/2022 USD 0.0466 64.91% 35.09%
30/09/2022 USD 0.0401 74.63% 25.37%
31/08/2022 USD 0.0423 71.60% 28.40%
29/07/2022 USD 0.0431 63.63% 36.37%
30/06/2022 USD 0.0420 95.69% 4.31%
31/05/2022 USD 0.0438 69.94% 30.06%
29/04/2022 USD 0.0443 58.93% 41.07%
31/03/2022 USD 0.0458 78.36% 21.64%
28/02/2022 USD 0.0465 66.71% 33.29%
31/01/2022 USD 0.0482 54.50% 45.50%
31/12/2021 USD 0.0489 59.43% 40.57%
30/11/2021 USD 0.0490 55.99% 44.01%
29/10/2021 USD 0.0496 33.12% 66.88%
30/09/2021 USD 0.0501 52.48% 47.52%
31/08/2021 USD 0.0504 63.54% 36.46%
30/07/2021 USD 0.0506 50.17% 49.83%
30/06/2021 USD 0.0545 42.67% 57.33%
31/05/2021 USD 0.0544 42.28% 57.72%
30/04/2021 USD 0.0545 43.85% 56.15%
31/03/2021 USD 0.0543 70.46% 29.54%
26/02/2021 USD 0.0547 50.39% 49.61%
29/01/2021 USD 0.0551 15.14% 84.86%
31/12/2020 USD 0.0553 52.43% 47.57%
30/11/2020 USD 0.0552 51.14% 48.86%
30/10/2020 USD 0.0542 35.02% 64.98%
30/09/2020 USD 0.0543 53.92% 46.08%
31/08/2020 USD 0.0548 58.17% 41.83%
31/07/2020 USD 0.0542 58.03% 41.97%
30/06/2020 USD 0.0502 57.28% 42.72%

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.

  • fd-label-icon
    Explanatory Memorandum / Summary Prospectus
  • fd-label-icon
    Product Key Facts - Preferred Securities Fund
  • fd-label-icon
    Fund Fact Sheets - D2 Class Inc Plus Units USD
  • fd-label-icon
    Dividend Records - Preferred Securities Fund
  • fd-label-icon
    Condensed Interim Report and Unaudited Financial Statements (For The Period Ended 31 March 2023)
  • fd-label-icon
    Annual Report and Audited Financial Statements (For The Year Ended 30 September 2023)
  • fd-label-icon
    HK Unitholder Notice (All Funds) (11 January 2023)
  • fd-label-icon
    HK Unitholder Notice (Preferred Securities Fund) (16 December 2021)
  • 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
    HK Unitholder Notice (European Equity Fund / Global Equity Fund / Global High Yield Fund / Preferred Securities Fund)
  • fd-label-icon
    HK Unitholder Notice (Preferred Securities Fund)
  • fd-label-icon
    Summary Prospectus - First Addendum (21 August 2020)
  • fd-label-icon
    Annex II - Template pre-contractual disclosure for the financial products
  • fd-label-icon
    Mutual Funds Product Range Brochure

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.