Notification of proposed change to Principal European Responsible Equity (USD)
21 Mar 2025
- J76 Principal European Responsible Equity (USD)
- H65 Principal European Responsible Equity (USD)*
(Together the “Affected Mirror Funds”)
We have been notified by Principal Global Investors (Ireland) Limited (the “Manager”) of a proposed change of name to the underlying fund of the Affected Mirror Funds. This change is subject to approval by the Central Bank of Ireland (the “CBI”), and if approved will take effect on or about 31 March 2025 (the “Effective Date”).
Change of name
If CBI approval is received, the Manager has advised that on or around the Effective Date, the underlying fund of the Affected Mirror Funds will be renamed from Principal European Responsible Equity Fund to Principal European Equity Fund. Accordingly, the ILF name will also change on or around the Effective Date as follows:
| Before the Effective Date | From the Effective Date |
|---|---|
| J76 Principal European Responsible Equity (USD) | J76 Principal European Equity (USD) |
| H65 Principal European Responsible Equity (USD)* | H65 Principal European Equity (USD)* |
Reason behind the change
One of the requirements stemming from the European Securities and Markets Authority’s Guidelines on funds’ names using Environmental, Social and Governance (“ESG”) or sustainability related terms (the “Guidelines”) requires funds using environmental related terms in their name to (i) meet an 80% threshold linked to the proportion of investment used to meet the environmental and/or social characteristics promoted by the fund; and (ii) incorporate the exclusionary criteria for the EU Paris-aligned Benchmarks detailed in Article 12(1)(a) – (g) of Commission Delegated Regulation (EU) 2020/1818 (the “PAB Exclusions”).
The Manager is of view that the term Responsible in the name of the underlying fund of the Affected Mirror Funds could be considered to be an environmental-related term in the context of the underlying fund’s investment strategy and bring the underlying fund in scope of the Guidelines. However, as the underlying fund of the Affected Mirror Funds does not currently incorporate all of the PAB Exclusions in its investment strategy, the Manager has determined to remove Responsible from the name of the underlying fund of the Affected Mirror Funds in order to bring it out of scope of the Guidelines.
The Manager has confirmed that the name change will not have any impact on the manner in which the underlying fund is being operated or the overall risk profile.
Please see the Principal Global Investors Notification opposite for further information.
If the CBI approval is received, these changes will happen automatically and policyholders do not need to take any action. Should the name change not proceed, we will provide an updated notification accordingly, after the Effective Date.
We recommend that policyholders seek the advice of their usual financial adviser before making any investment decisions.
Should you have any questions regarding these changes, please contact the Investment Marketing Team.
*Fund applicable to Hong Kong designated policyholders.
