Principal Asset Management is providing investors a chance to tap into Asia Pacific renewable energy investments with the introduction of the Principal Asia Pacific Renewables Fund. This sector is expected to experience monumental growth of US$1.3 trillion in value by 2030.
The Asia Pacific region is potent with opportunities in the renewable energy sectors with over 80% of global solar panel production2 and over 40% of global wind turbine manufacturing being accomplished in the region. It is home to some of the largest wind turbine manufacturers and over 50% of the global market share for electrical batteries4 is sitting in the region.
The Principal Asia Pacific Renewables Fund will invest at least 70% of its total assets in equity securities of renewable energy companies. This includes companies involved in other renewable energy technology, renewable energy developers, alternative fuels, energy efficiency, energy infrastructure, pollution control and waste management.
As a signatory to the United Nations Principles for Responsible Investment, Principal views the qualified Sustainable and Responsible Investment (SRI) Fund will be subject to the Environmental, Social, and Governance (ESG) integration approach.
Munirah Khairuddin, CEO and country head of Principal Asset Management said, “The call to pivot to clean and sustainable energy grows ever louder as we head into the future. In 2021, at the 26th UN Climate Change Conference of the Parties (COP26), participating countries have collectively reinforced the pledge to pursue renewable alternatives and transition to net-zero emissions. Principal pledge our commitment to Sustainability to fulfill our responsibility to our stakeholders and investors at large to take the lead in environmental issues.”
“We are also in the business of understanding investors’ financial needs and as the world transitions into renewables, Principal is offering the leadership to identify structural drivers and capture growth opportunities. The Fund is dynamically positioned to provide investors with the prospects for capital growth amidst the inevitable multi-decade megatrends of renewable energy across the Asia Pacific Region,” she added.
Designed with a multi-class structure, the fund has four share classes; Class AUD-Hedged, Class MYR-Hedged, Class SGD-Hedged, and Class USD, and is priced with an initial offer of AUD 1.0000, MYR 1.0000, SGD 1.0000, USD 1.0000 per unit, respectively. The Principal Asia Pacific Renewables Fund will be available at Principal branches and through its authorised distributors nationwide.
