Principal Asset Management launches Principal Next-G Connectivity Fund

KUCHING: Principal Asset Management Bhd (Principal) recently announced the launch of the Principal NextG Connectivity Fund to the market, a fund which aims to help investors achieve capital appreciation through exposure in portfolio of global equity holdings, focusing on companies that are involved or derive benefit from Next Generation Connectivity.

The fund will be initially distributed exclusively through Standard Chartered Bank branches nationwide.

“I believe technology will continue to be a dominant and central theme in the market. Globally, connectivity in technology has allowed approximately six billion people to connect with one another. With the rise of 5G networks and the ‘Internet of Things’, we are looking at exponential growth potential,” Principal chief executive officer (CEO) Munirah Khairuddin said.

“Through the Principal NextG Connectivity Fund, investors who seek medium to long-term capital appreciation would be able to benefit in line with the progress in the technology sector.

“We are committed to leading the way for consumers to achieve their financial goals through a Fund that provides the potential for long-term gains.”

The fund will invest at least 95 per cent of its net asset value in a portfolio of best-in-class companies with sustainable advantages around the world, and which have at least 50 per cent of their future earnings growth driven by 5G.

Key enablers and beneficiaries in 5G network infrastructure, Internet of Things (IoT) devices, and applications and services will be in focus.

Leveraging on the strong industry expertise of Neuberger Berman Europe Ltd, the fund seeks to identify hidden gems of 5G using a research-intensive, bottom-up approach.

Standard Chartered Malaysia’s Wealth Management head Sammeer Sharma believes that 5G is the next big thing for investors.

“If the past decade was about investing in technology, then the focus now is on investing in companies at the forefront of 5G innovation,” Sharma said.

“The fund offers potentially good returns as economies are now looking ahead to a post Covid-19 world, where the adoption and advancement of technology will intensify and investors can reap the diversification benefits from investing in a portfolio centered on 5G.

“As trusted wealth advisors, we play a crucial role in helping investors understand and gain access to opportunities in building and enhancing their financial portfolio.”

Meanwhile, Neuberger Berman’s director of Research (Asia) and a portfolio manager for the group’s research thematic portfolios Yan Taw Boon highlighted that 2020 was just the beginning of 5G network deployment and 5G smartphone launches.