Global Sustainable Investment Trends 2023: New Funds, ESG Strategies, and Recognition
Our Commitment to Global Sustainable Investment
Growing Interest in Sustainable Investing
Institutional investors globally are increasingly focused on sustainable investment options, and we are adapting to this demand.
Our Strategy
As a global asset manager, we are dedicated to developing and converting funds to meet the heightened sustainability expectations set by regulators and clients.
2023 Achievements
In 2023, we introduced two new funds and transitioned two existing funds to Article 8 status under the EU’s Sustainable Finance Disclosure Regulation (SFDR). By the end of 2023, our Article 8/9 assets under management reached $7.18 billion. For 2024, we plan to further launch or convert funds to Article 8 or 9 under the SFDR framework. Additionally, we rolled out four new products, including three with enhanced ESG integration and one thematic strategy.
Meeting Client Needs
In collaboration with China Construction Bank (CCB), we introduced the CCB Principal China New Energy Innovation Fund. This fund provides offshore investors with access to A-share listed companies in the new energy sector, including renewable power, electrical equipment, energy storage, and electric vehicles. The fund employs local thematic equity insights from mainland China, focusing on industry policy, supply-and-demand trends, and a proprietary ESG scorecard.
The Principal Sustainable Asia Equity Income Fund in Hong Kong invests over 70% of its net asset value in top-performing ESG-rated companies within the Asia Pacific region (excluding Japan). Besides focusing on high ESG performers, the fund excludes investments in tobacco, casinos, gaming, controversial weapons, and companies with governance concerns.
The Thai ESG Fund encourages long-term savings and boosts local investments in Thai businesses with ESG characteristics. In November 2023, the Thai Ministry of Finance approved a tax-saving scheme offering a 30% tax incentive for investments in ESG-labeled products, promoting sustainable development in Thailand and supporting the country's Sustainable Development Goals for 2030.
Future Plans
We are actively engaging with clients to tailor sustainable investment strategies to their needs. Current areas of interest include sustainable food, biodiversity, climate transition, responsible equity, and real estate decarbonization.
Recognition
Principal Asset ManagementSM was honored as a Best Place to Work in Money Management for the 12th consecutive year by Pensions and Investments (December 2023).
Click here to learn more.
Growing Interest in Sustainable Investing
Institutional investors globally are increasingly focused on sustainable investment options, and we are adapting to this demand.
Our Strategy
As a global asset manager, we are dedicated to developing and converting funds to meet the heightened sustainability expectations set by regulators and clients.
2023 Achievements
In 2023, we introduced two new funds and transitioned two existing funds to Article 8 status under the EU’s Sustainable Finance Disclosure Regulation (SFDR). By the end of 2023, our Article 8/9 assets under management reached $7.18 billion. For 2024, we plan to further launch or convert funds to Article 8 or 9 under the SFDR framework. Additionally, we rolled out four new products, including three with enhanced ESG integration and one thematic strategy.
Meeting Client Needs
In collaboration with China Construction Bank (CCB), we introduced the CCB Principal China New Energy Innovation Fund. This fund provides offshore investors with access to A-share listed companies in the new energy sector, including renewable power, electrical equipment, energy storage, and electric vehicles. The fund employs local thematic equity insights from mainland China, focusing on industry policy, supply-and-demand trends, and a proprietary ESG scorecard.
The Principal Sustainable Asia Equity Income Fund in Hong Kong invests over 70% of its net asset value in top-performing ESG-rated companies within the Asia Pacific region (excluding Japan). Besides focusing on high ESG performers, the fund excludes investments in tobacco, casinos, gaming, controversial weapons, and companies with governance concerns.
The Thai ESG Fund encourages long-term savings and boosts local investments in Thai businesses with ESG characteristics. In November 2023, the Thai Ministry of Finance approved a tax-saving scheme offering a 30% tax incentive for investments in ESG-labeled products, promoting sustainable development in Thailand and supporting the country's Sustainable Development Goals for 2030.
Future Plans
We are actively engaging with clients to tailor sustainable investment strategies to their needs. Current areas of interest include sustainable food, biodiversity, climate transition, responsible equity, and real estate decarbonization.
Recognition
Principal Asset ManagementSM was honored as a Best Place to Work in Money Management for the 12th consecutive year by Pensions and Investments (December 2023).
Click here to learn more.
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