Principal Global Dynamic Income Fund
A new approach for a new market environment
What has worked over the past decade may not work in the next decade. In a world where inflation and interest rates are both likely to remain higher, investors' capital needs to work harder.
A new regime shift for markets
After years of low inflation and interest rates, higher inflation brought an end to easy money. Central banks have taken centre stage as tighter monetary policies have raised interest rates, bringing greater volatility.
What it means for active investors
Introducing Principal Global Dynamic Income Fund
An unconstrained multi-asset fund, aiming to deliver an attractive and resilient income stream through exposure to fixed income, equities and alternative1 investments.
What does the Fund offer investors?
The Fund is designed to deliver an attractive income stream, whilst achieving better risk-adjusted returns than typical 60:40 (equity:fixed income) balanced funds.
Our investment exposure
The Fund is designed to potentially deliver an attractive income stream.
The ability to allocate dynamically between and within these engines provides the flexibility to capture potentially attractive income and growth opportunities, whilst navigating market and interest rate volatility.
Source: Schroders, as at 31 January 2024. Please note that this is indicative exposure only and may change, subject to market conditions and outlook. Please note limits are internal only and subject to change.
1. Alternative sources of income within the portfolio include convertibles, insurance linked securities, emerging market debt and securitised credit.
Our approach is based on three key themes:
1. Robust income stream
Placing emphasis on yields adjusted for interest rate sensitivity, as well as credit quality, will be critical in generating a resilient income stream with considerably lower risk of capital erosion.
Exposure to diversified assets for a smoother investment journey.
Diagram for illustrative purposes only.
2. Diversified assets for a smoother investment journey
From a strategic perspective, in a ‘higher-for-longer’ environment, we believe that achieving enhanced diversification will require a more thoughtful and dynamic approach. This includes adding selectively to alternatives, such as emerging market debt, convertibles, securitised credit and insurance linked securities.
Source: Schroders, as at 31 January 2024. For illustrative purposes only. Totals may not sum due to rounding.
2. Schroder ISF Dynamic Income
3. Potential capital growth through thematic opportunities
The Fund is designed to potentially provide investors with both income and capital growth. It aims to achieve this with investment exposure in some of the most exciting growth opportunities across the global investment universe. We believe these key themes are likely to be critical growth drivers over the next decade.
Source: Schroders. For illustrative purposes only. The thematic investment opportunities presented are valid as of 31 January 2024 and are subject to change without notice.
3. Improving governance standards in Japan are driving potential outsized returns. This may result in improved return on equity for shareholders.
How can the Fund meet your needs?
An unconstrained multi-asset fund, aiming to deliver an attractive and resilient income stream through exposure to investments in fixed income, equities and alternative1 investments.
Source: Schroders, as at March 2024. There is no guarantee these objectives and investment outcomes will be achieved. For illustrative purposes only and not to be viewed as a recommendation to buy/sell securities.
Disclaimer: We recommend that you read and understand the contents of the Information Memorandum for Principal Global Dynamic Income Fund dated 27 March 2024 which has been duly lodged with the Securities Commission Malaysia (SC) before investing and that you keep the said Information Memorandum for your record. Any issue of units to which the Information Memorandum relates will only be made upon receipt of the completed application form referred to in and accompanying the Information Memorandum, subject to the terms and conditions therein. Investments in the Fund are exposed to risks. You should understand the risks involved in relation to the product, and you should make your own risk assessment, and seek professional advice, where necessary. You can obtain copies of the Information Memorandum from the head office of Principal Asset Management Berhad, our website at www.principal.com.my or from any of our approved distributors. There are fees and charges involved in investing in the funds which we suggest that you consider carefully prior to making an investment. Investors have the right to request for the Information Memorandum, Product Highlights Sheet (PHS) and any other product disclosure document. Unit prices and income distributions, if any, may fall or rise. Past performance is not reflective of future performance and income distributions are not guaranteed. You are also advised to read and understand the contents of the Financing for Investments in Unit Trust Risk Disclosure Statement before deciding to obtain financing to purchase units. The lodgement of the Information Memorandum with the SC does not amount to nor indicate that the SC recommends or endorses the fund, and the SC does not review advertisements produced by Principal.
Ready to invest with Principal Global Dynamic Income Fund?
We offer 5 share classes. Click on each share class to learn more.
Class MYRFund Partner
HSBC Bank (Malaysia) Berhad
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