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Principal Sustainable Asian Income Fund - Income Plus (monthly) Class Units - Retail (USD)
Important Notes
- The Principal Sustainable Asian Income Fund (“Sub-Fund”) will primarily (i.e. at least 70% of the Sub-Fund’s net asset value) invest in a diversified portfolio of fixed income securities and fixed income-related securities of companies and issuers in Asia which are considered to be outperforming their peers with respect to sustainability performance based on environmental, social and governance (“ESG”) factors (“ESG achievers”) as well as exchange traded funds (“ETFs”) and other collective investment schemes (“CISs”) which primarily invest in debt securities of companies or issuers that maintain better ESG profiles than their corresponding traditional counterparts (collectively “ESG achiever ETFs/CISs”), and provide a return consisting of income and capital growth over medium to long term.
- The Sub-Fund will primarily invest in a portfolio of fixed income and fixed income-related securities of companies domiciled in, traded in and/or with substantial business interests in Asia and/or governments and government-related issuers located in Asia, including but not limited to sovereign, quasi-sovereign, agency, such investments may include corporate bonds/debentures, floating rate notes, bills, commercial papers, certificates of deposit, and debt instruments with loss-absorption features, which may be denominated in USD or other currencies. The Sub-Fund may invest 30% or more of its net asset value in fixed income and fixed income-related securities relating to emerging markets. Such investments carry general investment risk, risks associated with debt securities, ESG investment policy risk, currency risk, concentration risk, specific risks in investing in emerging markets, risks associated with RMB unit classes, risk associated with investment in financial derivative instruments, risks of implementing active currency position and other associated risks that can cause portfolio values to be very volatile.
- The Sub-Fund may invest up to 40% of its Net Asset Value in debt securities rated below investment grade (i.e. rated BB+ or below by Standard & Poor’s or comparable ratings by Moody’s Investors Services or Fitch Ratings) or in the case the credit rating is designated/assigned by a PRC (means the People’s Republic of China excluding Hong Kong, Macau and Taiwan for purpose of this material) credit rating agency, A+ and below, or unrated. For the purpose of the Sub-Fund, “unrated debt securities” is defined as debt securities which neither the debt securities nor their issuers have a credit rating. While these credit ratings provided by the relevant rating agencies serve as a point of reference, the Sub-Delegate of the Manager will conduct its own assessment on the credit quality based on various factors, such as leverage level, operating margin, return on capital, interest coverage, operating cash flows, industry outlook, competitive position in the market and corporate governance. The Sub-Fund may from time to time invest less than 30% of its Net Asset Value in RMB-denominated debt securities issued in the PRC, including through the Qualified Foreign Investor (“QFI”) regime, the China interbank bond market direct access program and/ or China Hong Kong Bond Connect, as well as urban investment bonds which are debt instruments issued by local government financing vehicles (“LGFVs”). These LGFVs are separate legal entities established by local governments and/or their affiliates to raise financing for public welfare investment or infrastructure projects.
- The use of ESG criteria may affect the Sub-Fund’s investment performance and, as such, the Sub-Fund may perform differently compared to similar funds that do not use such criteria. For instance, ESG criteria used in the Sub-Fund’s investment policy may result in the Sub-Fund forgoing opportunities to buy certain securities when it might otherwise be advantageous to do so, and/or selling securities due to such securities no longer meeting the Sub-Fund’s ESG criteria when it might be disadvantageous to do so. As such, the application of ESG criteria may restrict the ability of the Sub-Fund to acquire or dispose of its investments at a price and time that it wishes to do so, and may therefore result in a loss to the Sub-Fund. The use of ESG criteria may also result in the Sub-Fund being concentrated in companies with a focus on ESG criteria and its value may be more volatile than that of a fund having a more diverse portfolio of investments. The selection of securities may involve the subjective judgement of the Fund Manager’s Sub-Delegates. There is also a lack of standardised taxonomy of ESG criteria evaluation methodology and the way in which different funds apply such ESG criteria may vary. The Fund Manager and the Fund Manager’s Sub-Delegates’ ESG assessment takes into account ESG data and research from external data providers, which may be incomplete, inaccurate or unavailable. As a result, there is a risk associated with the assessment of a security or issuer based on such information or data.
- In respect of the Income Class Units, the Fund Manager may at its discretion pay dividend out of gross income while paying all or part of the fees and expenses attributable to the Income Class Units out of the capital of such units, resulting in an increase in distributable income for the payment of dividend by the Income Class Units and therefore, the Sub-Fund may effectively pay dividend out of capital. For Income Plus Class Units, the Fund Manager may pay dividends out of capital. The payment of dividends effectively out of capital or out of capital amounts to a return or withdrawal of part of a Unitholder’s original investment in the Income Class Units or the Income Plus Class Units or from any capital gains attributable to that original investment. Any such distributions may result in an immediate reduction of the net asset value per unit. Dividend is not guaranteed.
- The Sub-Fund may also invest less than 30% of its net asset value in debt instruments with loss absorption features, which may include instruments classified as Additional Tier 1/Tier 2 capital instruments, contingent convertible bonds (“CoCos”), non-preferred senior bonds which may also be known as Tier 3 bonds and other instruments eligible to count as loss-absorbing capacity under the resolution regime for financial institution, in compliance with its investment policy and limits. These instruments may be subject to contingent write-down or contingent conversion to equity on the occurrence of trigger event(s).
- The Sub-Fund’s net derivative exposure may be up to 50% of the Sub-Fund’s net asset value.
- 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 Sub-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 rely solely on this marketing material when making your investment decision. You should read the Explanatory Memorandum and Product Key Facts of Principal Prosperity Series for further details (including investment policy, risk factors, fees and charges, and fund information).
Performance During Fed Rate Hikes
With easing inflationary pressures, the Federal Reserve may slow down the pace of rate hikes. Asian economies could continue to recover from the shock of COVID-19. With relatively solid fundamentals, Asian bonds could still sustain their uptrend over a short-to-medium term.
Robust Economic Growth Potential
Although the COVID-19 pandemic has caused hardship, Asia as a region exhibited resilience in the face of this extraordinary shock. GDP growth has proved relatively stable through the pandemic and is expected to rebound faster in post pandemic times.
Competitive Yields Relative To Developed Markets
While interest rates in developed markets are on the rise, Asia still possesses potential yield advantages.
Attractive Relative Valuation
With solid fundamentals, Asian bonds looked attractive over US bonds in relative value terms.
Source: Please refer to the Sales Flyer under the Download section.
Investing in Best-In-Class Companies
All securities invested by the fund (including ETF and CIS) are screened with the aim of identifying ESG leaders. ESG scorings on potential companies/issuers are assigned using a proprietary ESG methodology. The fund’s goal is to achieve a better ESG rating than the traditional index.
Core Plus Satellite Approach
A dynamic allocation approach between Investment-Grade and High-yield bonds. The purposes of the satellite approach are yield enhancement and diversification of income exposure.
Implementation of Our ESG Principles
* Social and Environment driven by sector specific factors. * Governance being the most important element.
Source: Please refer to the Sales Flyer under the 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 Sub-Fund will primarily (i.e. at least 70% of the Sub-Fund’s net asset value) invest in a diversified portfolio of fixed income securities and fixed income-related securities of companies and issuers in Asia which are considered to be outperforming their peers with respect to sustainability performance based on environmental, social and governance (“ESG”) factors (“ESG achievers”) as well as exchange traded funds (“ETFs”) and other collective investment schemes (“CISs”) which primarily invest in debt securities of companies or issuers that maintain better ESG profiles than their corresponding traditional counterparts (collectively “ESG achiever ETFs/CISs”), and provide a return consisting of income and capital growth over medium to long term.
Investment Policy:
The Sub-Fund aims to maintain a minimum of 70% of the Sub-Fund’s net asset value invested in fixed income securities and fixed income-related securities issued by ESG achievers as well as ESG achiever ETFs/CISs. The aggregate investment of the Sub-Fund’s investment in ETFs and CISs (including ESG achiever ETFs/CISs) will be less than 30% of the Sub-Fund’s net asset value. The Fund Manager adopts a best-in-class strategy under which the Fund Manager will screen all securities investable by the Sub-Fund (including ETFs and CISs) with the aim of identifying ESG achievers and ESG achiever ETFs/CISs. For details please refer to Explanatory Memorandum and Product Key Facts.
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Series Name
Principal Prosperity Series
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Fund Name
Principal Sustainable Asian Income Fund - Income Plus (monthly) Class Units - Retail (USD)
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Asset Class
Fixed Income
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Fund Domicile
Hong Kong
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Base Currency
USD
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Fund Size
USD18.85 million As of 30/9/2024
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3 years annualized volatility1
N/A
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Management Fees
0.90% pa
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Investment Manager
Howe Chung Wan, Prakash Gopalakrishnan
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Launch Date (DD/MM/YYYY)
15/12/2021
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Ongoing charges over a year2
1.63%
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 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 figure is an annualised figure which is calculated based on expenses chargeable to the relevant class for the 6-month period ended 31 December 2023 and then extrapolated to 12 months. This figure may vary from year to year.
Cumulative Return ¹ (%)
| As of (DD/MM/YYYY) | 1 Month | 3 Months | Year To Date | 1 Year | 3 Years | 5 Years | Since Launch | |
|---|---|---|---|---|---|---|---|---|
| Fund | 30/09/2024 | 1.3 | 4.4 | 5.5 | 11.6 | N/A | N/A | -7.1 |
| Index | 30/09/2024 | 1.4 | 4.7 | 6.8 | 13.3 | N/A | N/A | -0.2 |
Calendar Year Return ¹ (%)
As of (DD/MM/YYYY)
Year To Date
2023
2022
2021
2020
2019
Fund
30/09/2024
5.5
4.8
-15.6
N/A
N/A
N/A
Index
30/09/2024
6.8
7.2
-12.5
N/A
N/A
N/A
| As of (DD/MM/YYYY) | Year To Date | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|
| Fund | 30/09/2024 | 5.5 | 4.8 | -15.6 | N/A | N/A | N/A |
| Index | 30/09/2024 | 6.8 | 7.2 | -12.5 | 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 |
|---|---|---|---|
| 29/11/2024 | USD 0.0458 | 38% | 62% |
| 31/10/2024 | USD 0.0459 | 35% | 65% |
| 30/09/2024 | USD 0.0469 | 39% | 61% |
| 30/08/2024 | USD 0.0466 | 48% | 52% |
| 31/07/2024 | USD 0.0462 | 46% | 54% |
| 28/06/2024 | USD 0.0457 | 31% | 69% |
| 31/05/2024 | USD 0.0457 | 0% | 100% |
| 30/04/2024 | USD 0.0452 | 32% | 68% |
| 28/03/2024 | USD 0.0463 | 37% | 63% |
| 29/02/2024 | USD 0.0462 | 44% | 56% |
| 31/01/2024 | USD 0.0466 | 30% | 70% |
| 29/12/2023 | USD 0.0409 | 38% | 62% |
| 30/11/2023 | USD 0.0399 | 42% | 58% |
| 31/10/2023 | USD 0.0386 | 44% | 56% |
| 29/09/2023 | USD 0.0392 | 40% | 60% |
| 31/08/2023 | USD 0.0402 | 40% | 60% |
| 31/07/2023 | USD 0.0408 | 39% | 61% |
| 30/06/2023 | USD 0.0411 | 36% | 64% |
| 31/05/2023 | USD 0.0414 | 42% | 58% |
| 28/04/2023 | USD 0.0421 | 28% | 72% |
| 31/03/2023 | USD 0.0420 | 38% | 62% |
| 28/02/2023 | USD 0.0417 | 31% | 69% |
| 31/01/2023 | USD 0.0429 | 32% | 68% |
| 30/12/2022 | USD 0.0416 | 33% | 67% |
| 30/11/2022 | USD 0.0411 | 32% | 68% |
| 31/10/2022 | USD 0.0393 | 36% | 64% |
| 30/09/2022 | USD 0.0410 | 37% | 63% |
| 31/08/2022 | USD 0.0398 | 37% | 63% |
| 29/07/2022 | USD 0.0401 | 37% | 63% |
| 30/06/2022 | USD 0.0402 | 40% | 60% |
| 31/05/2022 | USD 0.0416 | 40% | 60% |
| 29/04/2022 | USD 0.0422 | 36% | 64% |
| 31/03/2022 | USD 0.0400 | 42% | 58% |
| 28/02/2022 | USD 0.0400 | 40% | 60% |
| 31/01/2022 | USD 0.0400 | 44% | 56% |
Dividend, if declared, will be paid on a monthly basis. If the dividend is below US$100, it will be reinvested.
There is no guarantee that dividends will be paid or that there will be a target level of dividend payments for the Income Class Units. It is intended, although not guaranteed, that Income Plus Class Units will distribute a set level of net income, i.e. a target income, determined by the Manager on a regular basis. The level and frequency of the dividends paid by the Sub-Fund does not necessarily indicate the total return and income of the Sub-Fund. Dividend payments are subject to the Fund Manager’s discretion.
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.
| Financed Carbon Emissions (tons CO2e / $M invested)^ | Financed Carbon Emissions Coverage |
| 75.99 | 85 |
| All data is sourced from MSCI based on the portfolio holdings as of 31/12/2023 | |
| ^ Total Portfolio Carbon Emissions measures the scope 1 and scope 2 GHG emission for all the investments in the investee company per USD million invested by their equity ownership. | |
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Explanatory Memorandum - Principal Prosperity Series
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Product Key Facts - Principal Sustainable Asian Income Fund
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Fund Fact Sheets - Principal Sustainable Asian Income Fund
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Annual Audited Report (For The Year Ended 30 June 2024)
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Unaudited Semi-Annual Report (For The Six Months Ended 31 December 2023)
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Notice to Unitholder of Principal Prosperity Series (30 June 2023)
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Notice to Unitholder of Principal Prosperity Series (25 November 2022)
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Notice to Unitholder of Principal Prosperity Series (7 February 2022)
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Notice to Unitholder of Principal Prosperity Series (8 December 2021)
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Sustainable Investment Policy
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Additional Sustainability Related Information for Principal Sustainable Asian Income Fund
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Sustainability Related Periodic Assessment for Principal Sustainable Asian Income Fund
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Sales Flyer - Principal Sustainable Asian Income Fund
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Dividend Records - Principal Sustainable Asian Income Fund
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Mutual Funds Product Range Brochure