Supplement. for the. Global Small Cap Equity Fund

Transcription

1 Supplement for the Global Small Cap Equity Fund 28 September 2018 Principal Global Investors Funds This Supplement contains specific information in relation to the Global Small Cap Equity Fund (the Fund), a Fund of the Principal Global Investors Funds (the "Unit Trust"), an open-ended umbrella type unit trust authorised by the Central Bank of Ireland (the "Central Bank") as an undertaking for collective investment in transferable securities pursuant to the Regulations. The Directors of the Manager, whose names appear in the Prospectus, accept responsibility for the information contained in this Supplement. To the best of the knowledge and belief of the Directors (who have taken all reasonable care to ensure that such is the case) the information contained in this document is in accordance with the facts and does not omit anything likely to affect the import of the information. The Directors accept responsibility accordingly. This Supplement forms part of and should be read in conjunction with the Prospectus for the Unit Trust dated 28 September 2018 (the "Prospectus"). Words and expressions defined in the Prospectus shall, unless the context otherwise requires, have the same meaning when used in this Supplement.

2 Table of Contents 1 Investment Objective, Policies and Profile of a Typical Investor Investment Restrictions Efficient Portfolio Management Borrowings Investment Adviser Risk Factors Distribution Policy Key Information For Buying And Selling Charges and Expenses Information... 3 CZY/ / v19

3 1 Investment Objective, Policies and Profile of a Typical Investor 1.1 Investment Objective The investment objective of the Fund is to provide medium to long-term capital growth. 1.2 Investment Policies The Fund seeks to achieve its objective by investing primarily in publicly listed equity securities of smaller capitalisation companies in markets globally. It is anticipated that the Fund will usually hold at least 70% in such securities. When investing in emerging markets, the Fund will adopt a policy of diversification and the percentage of the Fund's assets invested in a single emerging market will not, in the Adviser's opinion, be imprudent. The Fund can also invest in real estate investment trusts ("REITS") and equity securities of issuers that derive income or profits from products or services related to the global property industry. It may also invest in other Funds of the Unit Trust in order to seek to meet its objective. The Fund may also hold ancillary liquid assets such as bank deposits, and a range of nonequity securities, including but not limited to; commercial paper, floating rate notes, certificates of deposit, freely transferable promissory notes, warrants, debentures, asset backed securities, government or corporate bonds and debt and preferred securities issued by companies, the equity securities of which would be eligible for purchase by the Fund. These non-equity securities may or may not be of investment grade. The Fund's investments will be listed/traded on the exchanges and markets listed in Appendix E to the Prospectus. Investors' attention is drawn to the information set out in the Prospectus under the headings General Information and Special Investment Considerations and Risks. The Fund may invest more 20% if its Net Asset Value in emerging markets and, as a result, an investment in the Fund should not constitute a substantial proportion of an investment portfolio and may not be appropriate for all investors. The Net Asset Value of the Fund is expected to have a high volatility from time to time. 1.3 Profile of a Typical Investor Investment in the Fund is suitable for investors seeking medium to long term capital growth and who are prepared to accept a high degree of volatility of net asset value. All investors must be able to afford to set aside the invested capital for the medium to long term. The Fund is suitable as an investment in a well diversified portfolio. 2 Investment Restrictions The general investment restrictions set out in Appendix A of the Prospectus shall apply. In the case of cross-investment in other Funds of the Unit Trust particular attention is brought to the investment restriction in section 3.4 of Appendix A of the Prospectus and the following additional restrictions apply: (a) (b) An investment must not be made in a Fund which itself holds shares in other Funds of the Unit Trust; The Fund must not pay a fee to the Manager in respect of that portion of its assets invested in other Funds of the Unit Trust. CZY/ / v19

4 3 Efficient Portfolio Management The Fund will utilise derivative techniques and instruments for the purposes of efficient portfolio management in accordance with the investment restrictions, conditions and limits laid down by the Central Bank and investors' attention is drawn to the relevant information set out in the Prospectus under the headings General Information and Special Investment Considerations and Risks. 4 Borrowings In accordance with the general provisions set out under the heading General Information Borrowings of the Prospectus, the Fund may borrow up to 10% of its net assets on a temporary basis. 5 Investment Adviser The Manager has appointed Principal Global Investors, LLC ("Principal Global Investors" or the "Investment Adviser") as investment adviser to the Fund pursuant to the Investment Advisers Agreement (as amended and novated) described in the Prospectus under the heading Material Contracts. This agreement may be terminated by either party on giving six (6) months' written notice to the other although, in certain circumstances, the agreement may be terminated forthwith by notice in writing by either party to the other. Principal Global Investors is a diversified asset management organization and a member of the Principal Financial Group. Its investment capabilities encompass an extensive range of equity, fixed income and real estate investments as well as specialized overlay and advisory services. 6 Risk Factors The general risk factors set out under the heading Special Investment Considerations and Risks of the Prospectus apply to the Fund. 7 Distribution Policy The general distribution policy set out under the heading Distribution Policy of the Prospectus applies to the Fund. 8 Key Information For Buying And Selling Base Currency US dollars Initial Issue Price save for A Class Accumulation Units and I Class Accumulation Units US$10 per Unit (or its equivalent in a foreign currency). Initial Offer Period save for A Class Accumulation Units and I Class Accumulation Units From 9.00 a.m. on 26 March 2018 to 5.30 p.m. on 26 September 2018 as may be shortened or extended by the Manager and in accordance with the requirements of the Central Bank. Business Day Any day other Saturday or Sunday on which banks are open for business in Ireland. Dealing Day Any Business Day and/or such other day or days as the Manager may with prior notification to Holders determine provided that there shall be at least one per fortnight. CZY/ / v19 2

5 Dealing Deadline In relation to any particular place means such time or times of day in that place as the Manager may from time to time determine and, in relation to Hong Kong, shall until further notice, be 5:00 p.m. Hong Kong time and in relation to Dublin shall, until further notice, be 10:00 a.m. Dublin time in each case on the relevant Dealing Day. 9 Charges and Expenses 9.1 Investment and Management Charges (all amounts in US$): Units Minimu m Initial Subscri ption Minimu m Addition al Subscri ption Current Prelimin ary Charge (%) Annual Manage ment Fee (% per Adminis tration Fee (% per Marketin g and Distribut ion Fee (% per Annual Trustee Fee (% per A 10,000 1, Not more D 10,000 1, Not more F 10,000 1, Not more I 2,000, , Not more P 10,000 1, Not more N 10,000 1, Not more 9.2 The costs of establishing the Fund, which are not expected to exceed USD 20,000, will be borne by the Fund and amortised over the first five years of the Fund. Further details of charges and expenses payable out of the assets of the Fund are set out in the Prospectus under the heading Charges and Expenses. 10 Information 10.1 The other Funds of the Unit Trust in existence at the date of this Supplement are: (a) Asian Equity Fund CZY/ / v19 3

6 (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) (s) (t) (u) (v) European Equity Fund Global Equity (ex-japan) Fund (which is in the process of being terminated and units therein are no longer available for subscription) Global Capital Structure Opportunities Fund Global Equity Fund Global Property Securities Fund Global Time Diversified Absolute Return Fund High Yield Fund Japanese Equity Fund Origin Global Constrained Equity Fund Origin Global Emerging Markets Fund Origin Global Smaller Companies Fund Post Global Limited Term High Yield Fund Preferred Securities Fund US Equity Fund Emerging Markets Equity Fund Finisterre EM Debt Fund (which is in the process of being terminated and units therein are no longer available for subscription) Claritas Latin American Equity Fund (which is in the process of being terminated and units therein are no longer available for subscription) Spectrum Global Capital Securities Fund (which is in the process of being terminated and units therein are no longer available for subscription) Real Estate Debt Fund Global Income Fund Finisterre Unconstrained Emerging Markets Fixed Income Fund 10.2 The Fund was approved by the Central Bank on 10 October The following classes of Units in the Fund are available for issue. They may have either already been admitted to listing on the Irish Stock Exchange or application has been made for them to be admitted to listing on the official list and to trading on the Main Securities Market of the Irish Stock Exchange: A Class Accumulation Units I Class Accumulation Units CZY/ / v19 4

7 Euro A Class Accumulation Units Euro I Class Accumulation Units Sterling A Class Accumulation Units Sterling I Class Accumulation Units Swiss Franc A Class Accumulation Units Swiss Franc I Class Accumulation Units Yen A Class Accumulation Units Yen I Class Accumulation Units Danish Kroner A Class Accumulation Units Danish Kroner I Class Accumulation Units Swedish Kroner A Class Accumulation Units Swedish Kroner I Class Accumulation Units D Class Accumulation Units F Class Accumulation Units P Class Accumulation Units N Class Accumulation Units Euro N Class Accumulation Units Sterling N Class Accumulation Units 10.4 Investors should contact the Administrator for confirmation of the classes of Units available in the Fund at any given time and whether or not they have already been admitted to listing and trading on the Main Securities Market of the Irish Stock Exchange. CZY/ / v19 5