Preferred Securities Fund - D2 Class Inc Units (HKD)

Important Notes

  • The Fund will invest primarily in a portfolio of US 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.
  • 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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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.

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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.

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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.

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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.

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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.

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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.
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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.

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High Credit Quality

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

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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 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 ^
9.01 HKD
Daily Change
-0.3%
Valuation Date (DD/MM/YYYY)
01/02/2023

^ 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

    Preferred Securities Fund - D2 Class Inc 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

    10.85 As of 31/12/2022

  • 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)

    08/02/2019

  • 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 1.1 3.39 -10.61 -10.61 -5.27 N/A 5.3
Index 31/12/2022 -0.28 2.86 -15.18 -15.18 -7.74 N/A -2.01

Calendar Year Return (%)

  As of (DD/MM/YYYY) 2022 2021 2020 2019 2018
Fund 31/12/2022 -10.61 2.22 3.68 N/A N/A
Index 31/12/2022 -15.18 -0.34 9.15 N/A N/A

For further details, please refer to Fund Fact Sheet.
Dividend Period End Date Dividend per unit Dividend paid out of net distributable income for the period Dividend effectively paid out of capital
28/02/2019 HKD 0.0257 100% 0%
29/03/2019 HKD 0.0437 99.84% 0.16%
30/04/2019 HKD 0.0376 99.74% 0.26%
31/05/2019 HKD 0.0398 99.77% 0.23%
28/06/2019 HKD 0.0308 65.72% 34.28%
31/07/2019 HKD 0.0376 82.96% 17.04%
30/08/2019 HKD 0.0364 76.17% 23.83%
30/09/2019 HKD 0.0400 94.84% 5.16%
31/10/2019 HKD 0.0470 34.03% 65.97%
29/11/2019 HKD 0.0437 67.20% 32.80%
31/12/2019 HKD 0.0498 72.36% 27.64%
31/01/2020 HKD 0.0443 58.55% 41.45%
28/02/2020 HKD 0.0432 70.51% 29.49%
31/03/2020 HKD 0.0542 78.85% 21.15%
30/04/2020 HKD 0.0479 77.01% 22.99%
29/05/2020 HKD 0.0401 81.24% 18.76%
30/06/2020 HKD 0.0427 71.53% 28.47%
31/07/2020 HKD 0.0426 71.86% 28.14%
31/08/2020 HKD 0.0441 73.80% 26.20%
30/09/2020 HKD 0.0411 72.59% 27.41%
30/10/2020 HKD 0.0419 73.93% 26.07%
30/11/2020 HKD 0.0404 72.13% 27.87%
31/12/2020 HKD 0.0413 71.48% 28.52%
29/01/2021 HKD 0.0378 69.97% 30.03%
26/02/2021 HKD 0.0388 70.69% 29.31%
31/03/2021 HKD 0.0515 76.27% 23.73%
30/04/2021 HKD 0.0382 63.64% 36.36%
31/05/2021 HKD 0.0415 67.24% 32.76%
30/06/2021 HKD 0.0383 65.21% 34.79%
30/07/2021 HKD 0.0385 69.91% 30.09%
31/08/2021 HKD 0.0444 70.19% 29.81%
30/09/2021 HKD 0.0385 69.29% 30.71%
29/10/2021 HKD 0.0406 70.36% 29.64%
30/11/2021 HKD 0.0408 65.99% 34.01%
31/12/2021 HKD 0.0419 70.32% 29.68%
31/01/2022 HKD 0.0395 70.08% 29.92%
28/02/2022 HKD 0.0417 67.52% 32.48%
31/03/2022 HKD 0.0431 72.75% 27.25%
29/04/2022 HKD 0.0373 74.61% 25.39%
31/05/2022 HKD 0.0427 73.57% 26.43%
30/06/2022 HKD 0.0402 74.41% 25.59%
29/07/2022 HKD 0.0391 77.66% 22.34%
31/08/2022 HKD 0.045 74.91% 25.09%
30/09/2022 HKD 0.0409 75.89% 24.11%
28/10/2022 HKD 0.0412 78.84% 21.16%
30/11/2022 HKD 0.0455 76.65% 23.35%
30/12/2022 HKD 0.0422 76.91% 23.09%

For income units of the fund, dividend will be paid on a quarterly basis in the month of January, April, July and October each year, with the exception of the D2 Class Income Units. Distributions of the D2 Class Income 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
    Sales Flyer - Preferred Securities Fund
  • fd-label-icon
    Fund Fact Sheet - Preferred Securities Fund - D2 Inc Units HKD
  • fd-label-icon
    Dividend Records - Preferred Securities Fund
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    Condensed Interim Report and Unaudited Financial Statements (For The Period Ended 31 March 2022)
  • fd-label-icon
    Annual Report and Audited Financial Statements (For The Year Ended 30 September 2022)
  • 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 (Preferred Securities Fund)
  • fd-label-icon
    HK Unitholder Notice (European Equity Fund / Global Equity Fund / High Yield Fund / 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.