Principal Asset Management Expands Sustainable Investment Offerings in 2024
Our Global Sustainable Investment Offering
Institutional investors worldwide are increasingly prioritizing sustainable investment options—and we’re adapting to meet that demand.
Our Strategy
As a global asset manager, we are committed to launching and transitioning funds to reflect stronger sustainability considerations. This aligns with the growing expectations of clients and regulators regarding responsible investment practices.
2024 Highlights
In 2024, we introduced six new sustainable investment products—three with advanced ESG integration features and three thematic strategies. Additionally, we upgraded four existing products to Article 8 and one to Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR).
Key product launches include:
Institutional investors worldwide are increasingly prioritizing sustainable investment options—and we’re adapting to meet that demand.
Our Strategy
As a global asset manager, we are committed to launching and transitioning funds to reflect stronger sustainability considerations. This aligns with the growing expectations of clients and regulators regarding responsible investment practices.
2024 Highlights
In 2024, we introduced six new sustainable investment products—three with advanced ESG integration features and three thematic strategies. Additionally, we upgraded four existing products to Article 8 and one to Article 9 under the EU’s Sustainable Finance Disclosure Regulation (SFDR).
Key product launches include:
- Spectrum Asset Management Funds: Two new SFDR Article 8 UCITS Funds—Principal High Grade Capital Securities Fund and Principal Capital Securities Fund. These integrate ESG considerations by targeting companies reducing greenhouse gas emissions and advancing renewable energy, while excluding those tied to thermal coal or hazardous chemicals.
- Malaysia’s Principal Sustainable Conservative Bond Fund: Designed to cut carbon emissions through investments in low-carbon intensity bonds, supporting the long-term transition to a net-zero economy. Classified as an ESG Integration Enhanced Features fund.
- Global Climate and Environment Strategy: A thematic product focusing on companies aiming for net-zero goals and decoupling economic growth from environmental harm.
- Global Sustainable Food and Biodiversity Fund: An Article 9 thematic fund that invests in businesses contributing to sustainable food systems and biodiversity protection. It aligns with UN Sustainable Development Goals (SDGs) such as responsible consumption (SDG 12), good health (SDG 3), reduced hunger (SDG 2), and clean water (SDG 6).
By year-end 2024, we offered 28 ESG Integration Enhanced Features strategies and six thematic strategies, with Article 8/9 assets under SFDR reaching $17.63 billion.
Looking Ahead
With global regulations placing greater emphasis on climate-related disclosures, we will continue to develop products that help clients adapt to and mitigate climate change. Energy resilience and infrastructure innovation will be critical drivers of the low-carbon transition, while also contributing to national security—a theme relevant across political divides. Expanding our sustainable offerings in Europe and Asia remains a key focus.
Recognition
Principal Asset Management was named a Best Place to Work in Money Management by Pensions & Investments for the 13th consecutive year (December 2024).
Click here to know more.
Looking Ahead
With global regulations placing greater emphasis on climate-related disclosures, we will continue to develop products that help clients adapt to and mitigate climate change. Energy resilience and infrastructure innovation will be critical drivers of the low-carbon transition, while also contributing to national security—a theme relevant across political divides. Expanding our sustainable offerings in Europe and Asia remains a key focus.
Recognition
Principal Asset Management was named a Best Place to Work in Money Management by Pensions & Investments for the 13th consecutive year (December 2024).
Click here to know more.
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