Principal Malaysia (Principal) launched the Principal Commodity Fund (“Fund”) that aims to assist investors in pursuing a portfolio diversification through exposure to investments in global commodities such as agriculture, energy, and metals, while seeking to provide medium and long-term capital appreciation.
As a growth fund, the Fund invests into a single collective investment scheme which is the Schroder Alternative Solutions Commodity Fund (“Target Fund”). To achieve this goal, the Fund will invest at least 85% of its net asset value (NAV) in the Target Fund, and up to 15% of its NAV in liquid assets for liquidity purposes.
The Fund has four available share classes: Class USD, Class AUD-Hedged, Class MYR-Hedged and Class SGD-Hedged.
“As we continue to evolve our products and solutions, we are committed to providing our clients opportunities to diversify in alternative assets,” says Munirah Khairuddin, the chief executive officer and country head of Principal Malaysia.
“As inflation continues across global markets, the Fund promotes exposure to a broad range of commodities and may provide a suitable option to mitigate inflation impacts.”
Leveraging fundamental research done by the Target Fund’s investment team, the Fund will offer investors seeking lower-risk solutions an opportunity to diversify their portfolio.
Commodities are an alternative asset class that historically do not experience the same level of impact as traditional asset classes, like equities and bonds, may face during periods of rising inflation.
“In addition, as we see continuous development within the green technology space, supporting the growth and demand for commodities required for climate change efforts will remain important for Principal,” says Munirah.
