Supplement. for the. Emerging Markets Equity Fund

Transcription

1 Supplement for the Emerging Markets Equity Fund 16 November 2017 Principal Global Investors Funds This Supplement contains specific information in relation to the Emerging Markets 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 16 November 2017 (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 Sub Investment Adviser Risk Factors Distribution Policy Key Information for Buying and Selling Charges and Expenses Other Information Directory... 6 CZY/ / v10

3 1 Investment Objective, Policies and Profile of a Typical Investor 1.1 Investment Objective The investment objective of the Fund is to seek capital growth over the medium to long term. 1.2 Investment Policies The Fund seeks to achieve its objective by investing principally in the equity securities of companies domiciled or with their core business in the world's emerging investment markets, which the Adviser believes are mispriced by the market and have the potential for significant growth. Emerging markets include those countries identified as emerging markets by the International Finance Corporation, a division of the World Bank and other underdeveloped countries that the Adviser believes present attractive investment opportunities. Emerging markets include, but are not limited to, Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Portugal, Russia, Slovakia, South Africa, Taiwan, Thailand, Turkey and Venezuela. While the Fund is primarily an emerging markets fund, the Fund may invest in securities issued in non- emerging markets, subject to the limitation described below. This includes where the Fund has invested in an emerging market but due to economic development, that market is no longer classified as an emerging market. The Fund can invest in both listed and unlisted equity securities, with a level of 10% of the net assets of the Fund permitted in unlisted securities. It may also invest in a range of non-equity securities, including debt securities issued by companies in which the Fund can purchase equity securities, fixed interest and money market securities (such as government bonds and bank bills), and other collective investment schemes. The Fund may also invest in real estate investment trusts ("REITS") or other REIT-like structures which will be the equivalent of REITS. It may also invest in other Funds of the Unit Trust in order to obtain its objective. The Fund may also hold ancillary liquid assets such as bank deposits. However no more than 1/3 of the net assets of the Fund may be held in aggregate in ancillary liquid assets, nonequity securities and/or invested other than in emerging markets. The Fund may hold investments from time to time which are listed or traded in Russia. It is not anticipated that such investments will normally constitute a substantial element of the Fund and shall not in any event exceed 15% of the net assets of the Fund. Investors attention is drawn to the information set out in the Prospectus under the headings General Information and Special Investment Considerations and Risks. Investment in the Fund carries significant risk and may not be suitable for all investors. 1.3 Profile of a typical investor Investment in the Fund is suitable for investors seeking capital growth over the medium to long term 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. CZY/ / v10 2

4 2 Investment Restrictions The general investment restrictions set out in Appendix A of the Prospectus shall apply. 3 Efficient Portfolio Management The Fund may use techniques and instruments, including derivatives for the purpose of efficient portfolio management in accordance with the conditions and limits laid down by the Central Bank. Investors attention is drawn to the relevant information pertaining to this set out in the Prospectus under the headings General Information. 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 "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 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 Sub Investment Adviser The Investment Adviser has, in turn, appointed Principal Global Investors (Europe) Ltd ("PGIE") to act as sub-investment adviser to the Fund. PGIE were appointed pursuant to a Sub-Investment Advisers Agreement dated 29 June Pursuant to this Agreement, the Investment Advisor has delegated to PGIE overall responsibility for the Fund s investments in equity securities of companies domiciled or with their core business in Japan and related aspects of the management of the Fund, which may include (but are not limited to) security selection and/or portfolio construction responsibilities, as the parties may from time to time agree. The Sub-Investment Advisers Agreement may be terminated by either party on giving sixty (60) days written notice to the other although, in certain circumstances such as the liquidation of the other party, the agreement may be terminated forthwith by notice in writing by either party to the other. PGIE is regulated by the Financial Services Authority. CZY/ / v10 3

5 7 Risk Factors The general risk factors set out under the heading Special Investment Considerations and Risks of the Prospectus apply to the Fund. 8 Distribution Policy The general distribution policy set out under the heading Distribution Policy of the Prospectus applies to the Fund. 9 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$10 per Unit (or its equivalent in a foreign currency) Initial Offer Period save for A Class Accumulation Units and I Class Accumulation Units From 9.00 a.m. on 17 November 2017 to 5.30 p.m. on 17 May 2018 as may be shortened or extended by the Manager and in accordance with the requirements of the Central Bank. Business Day Any day other than Saturday or Sunday on which banks are open for business in Ireland. Dealing Day Any Business Day and/or such other day or days as the Manager may with prior notification to the Holders determine provided that there shall be at least one per fortnight. Dealing Deadline In relation to any particular place means such time or times of day in that place as the Manager may from time to time determine and, in relation to Hong Kong, shall until further notice, be 5:00 p.m. Hong Kong time and in relation to Dublin shall, until further notice, be 10:00 a.m. Dublin time in each case on the relevant Dealing Day. 10 Charges and Expenses 10.1 Investment and Management Charges (all amounts in US$) 1 Units Minimum Initial Subscriptio n Minimum Additional Subscriptio n Current Preliminary Charge (%) Annual Scaled Management Fee (% per annum) Annual Trustee Fee (% per annum) Administration Fee (% per annum) A 10,000 1, Not more than Or such other amounts as the Manager may determine and, in the case of an increase in such amounts, notify to the Holders. CZY/ / v10 4

6 I 2,000, , Not more than N 10,000 1, Not more than 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. 11 Other Information 11.1 The other Funds of the Unit Trust in existence at the date of this Supplement are: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q) (r) (s) (t) (u) (v) (w) (x) (y) Asian Equity Fund EDGE Small/Mid-Cap Equity Income Fund European Equity Fund Global Equity (ex-japan) Fund Global Capital Structure Opportunities Fund Global Credit Alpha Fund Global Short Duration High Yield Fund Global Equity Fund Global Property Securities Fund Global Small Cap Equity Fund Global Time Diversified Absolute Return Fund Long/Short Global Opportunities Equity Fund High Yield Fund Japanese Equity Fund Origin Global Constrained Equity Fund Origin Global Emerging Markets Fund Origin Global Equity Fund Origin Global Smaller Companies Fund Post Global Limited Term High Yield Fund Preferred Securities Fund US Equity Fund Finisterre EM Debt Fund Claritas Latin American Equity Fund Spectrum Global Capital Securities Fund Real Estate Debt Fund CZY/ / v10 5

7 (z) (aa) Global Income Fund Finisterre Unconstrained Emerging Markets Fixed Income Fund 11.2 The Fund was approved by the Central Bank on 23 January 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 A Class Income Units Sterling A Class Accumulation Units Euro A Class Accumulation Units Yen I Class Accumulation Units N Class Accumulation Units N Class Income Units Sterling N Class Accumulation Units Sterling N Class Income Units Euro N Class Accumulation Units Euro N Class Income Units 11.4 Investors should contact the Administrator or the Hong Kong Representative 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. 12 Directory Sub-Investment Adviser Principal Global Investors (Europe) Ltd 1 Wood Street London EC2V 7JB United Kingdom CZY/ / v10 6