Principal introduces first local-domiciled ESG Asian Income and Allocation Strategies to Hong Kong Market

HONG KONG SAR – Media OutReach – 15 December 2021 – Principal
Hong Kong (“Principal”) announced the launch of the Principal Sustainable
Asian Income Fund today and the upcoming Principal Sustainable Asian
Allocation Fund (New Funds) under the Principal Prosperity Series. These
funds are SFC authorized and placed on their “list of green and ESG funds” #. This enables retail investors to gain
access to the first-to-market local-domiciled ESG Asian income and allocation
strategies, which may be part of the income solutions for pre- and
post-retirement.

“Enhancing retirement protection with potential
regular dividend paying investment products may help sustain the living
standards of retirees enabling them to feel more financially secure,” said Mr.
Derek Ching, CEO of Principal Investment & Retirement Services Limited.

The New Funds aim to provide capital growth and income
over medium to long term by investing in Asia Pacific companies
that are environmental, social and governance (ESG) Leaders+.
They utilize a Best-In-Class strategy^ with the portfolio
being 100% ESG screened.

“At
Principal, our investment capabilities in ESG
have been building for over two decades.” said
Mr. Ching. “Sustainable investing is becoming a more important consideration
for investors. Our New Funds are Asian
focused ESG funds with 100% ESG screening. Investing in ESG does not mean that
investors need to sacrifice investment returns. In fact, the performance
of ESG indices may outperform non-ESG traditional indices.”

These New Funds
domiciled in Hong Kong with relatively low to medium risk level are available
for investment from both local and Greater Bay Area (GBA) mainland residents. As
a southbound stream of GBA’s Wealth Management Connect, these New Funds may help
capture the business opportunities with unique fund features not currently
offered in the market. The New Funds come with different share classes which
include Income Plus Class Units that target higher potential monthly yields for
those investors trying to match desired income levels.

“We keep
innovating to empower customers along their retirement journey. By introducing
the new ESG income funds, we strive to bring more diversified products for our
clients to generate possible passive income and help them achieve their
financial goals. At the same time, we help them align their investments with
the environmental and social values they’re concerned with. Together, we wish
to safeguard the sustainability of our clients’ interests for future
generations to come.” Mr. Ching added.  Notes:

~ Principal
Sustainable Asian Income Fund and Principal Sustainable Asian Allocation Fund
are on the list of green and ESG funds, and currently they are the only Hong
Kong domiciled funds classified as Asian Income and/or Allocation Strategies,
please details please refer to https://www.sfc.hk/en/Regulatory-functions/Products/List-of-green-and-ESG-funds# The list of green and ESG funds does not
constitute an official recommendation of these products or a guarantee of their
green or ESG attributes or related performance.

+ Principal Asset
Management Company (Asia) Limited (the Manager) will assign ESG scorings on
potential companies/issuers by using a proprietary ESG methodology.
Companies/issuers which are in the higher Quartile 1 or 2 within their
respective sectors based on ESG scores as ranked by the Manager’s internal
rating system, or have a minimum MSCI ESG rating of BBB will be considered to
be ESG leaders.

^ The Manager adopts a best-in-class strategy under which the Manager
will screen all securities investable by the Sub-Fund (including ETF and CIS)
with the aim of identifying ESG leaders and ESG-focused ETF/CIS.Investments involve risks. This material is intended
for general reference only. There is no assurance on investment returns and you
may not get back the amount originally invested.  Dividend is not guaranteed. SFC authorization
does not mean the product is suitable for you or any particular investor. You
should read the relevant offering document (including the key facts statement)
of the funds for further details including the risk factors.

Comments are closed.