PGI Annual 2012
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PRINCIPAL GLOBAL INVESTORS FUNDS An umbrella trust governed by the laws of Ireland Annual Report and Audited Financial Statements For the year ended 30 September 2012 PRINCIPAL GLOBAL INVESTORS FUNDS ANNUAL REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2012 CONTENTS General Information ............................................................................................................................................................. 3 Investment Adviser’s Report ........................................................................................................................................... 5 Independent Auditor’s Report ................................................................................................................................... 12 Trustee’s Report ..................................................................................................................................................................... 14 Statement of Manager’s and Trustee’s Responsibilities ........................................................................... 15 Portfolio of Investments Global Equity Fund ................................................................................................................................................... 16 Asian Equity Fund ...................................................................................................................................................... 18 European Equity Fund ............................................................................................................................................ 21 Emerging Markets Equity Fund ...................................................................................................................... 24 Japanese Equity Fund ............................................................................................................................................... 27 Preferred Securities Fund ....................................................................................................................................... 30 US Equity Fund ............................................................................................................................................................ 36 High Yield Fund ........................................................................................................................................................... 38 Global Property Securities Fund ...................................................................................................................... 43 Global Equity (ex-Japan) Fund ........................................................................................................................ 46 Post Global Limited Term High Yield Fund .......................................................................................... 50 Multi Strategy Currency Fund .......................................................................................................................... 54 EDGE Equity Income Fund .............................................................................................................................. 56 Statement of Total Return for the year ended 30 September 2012 .............................................. 58 Statement of Total Return for the period ended 30 September 2011 ........................................ 59 Statement of Movement in Net Assets attributable to redeemable participating unitholders for the year ended 30 September 2012 ................................................. 60 Statement of Movement in Net Assets attributable to redeemable participating unitholders for the period ended 30 September 2011 ........................................... 61 Balance Sheet as at 30 September 2012 ............................................................................................................. 62 Balance Sheet as at 30 September 2011 ............................................................................................................. 65 Notes to the Annual Report and Financial Statements .......................................................................... 68 Unaudited Information Fund Performance ............................................................................................................................................................ 137 Portfolio Turnover Ratios ........................................................................................................................................... 145 Total Expense Ratios ...................................................................................................................................................... 145 Statement of Portfolio Changes Global Equity Fund ................................................................................................................................................ 146 Asian Equity Fund ................................................................................................................................................... 146 European Equity Fund ......................................................................................................................................... 147 Emerging Markets Equity Fund ................................................................................................................... 147 Japanese Equity Fund ............................................................................................................................................ 148 Preferred Securities Fund .................................................................................................................................... 148 US Equity Fund ........................................................................................................................................................ 149 High Yield Fund ....................................................................................................................................................... 149 Global Property Securities Fund ................................................................................................................... 150 Global Equity (ex-Japan) Fund ..................................................................................................................... 150 Post Global Limited Term High Yield Fund ....................................................................................... 151 Multi Strategy Currency Fund ....................................................................................................................... 151 EDGE Equity Income Fund ........................................................................................................................... 152 Directory ................................................................................................................................................................................. 153 Information for Investors in Switzerland ....................................................................................................... 154 Enquiries .................................................................................................................................................................................. 155 PRINCIPAL GLOBAL INVESTORS FUNDS GENERAL INFORMATION The following information is derived from and should be read in conjunction with the full text and definitions section of the Prospectus. The Principal Global Investors Funds (the “Trust”), was constituted on 13 October 1992 as an open-ended umbrella unit trust established as a UCITS under the laws of Ireland. Units of certain classes of the Trust are listed on the Irish Stock Exchange. The Trust has been authorised by the Central Bank of Ireland (the “Central Bank”) pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011(as amended) (the “UCITS Regulations”). At 30 September 2012, the Trust comprised the following separate investment portfolios (“Funds”): FUND TYPE OF UNITS • Global Equity Fund (GEF) Investor: Income Investor: Accumulation Institutional: Accumulation • Asian Equity Fund (AEF) Investor: Income Investor: Accumulation Institutional: Accumulation • European Equity Fund (EEF) Investor: Income Investor: Accumulation Institutional: Accumulation Institutional: Accumulation (Euro Hedged) • Emerging Markets Equity Fund (EMEF) Investor: Accumulation Institutional: Accumulation • Japanese Equity Fund (JEF) Investor: Accumulation Institutional: Accumulation Institutional: Accumulation (JPY) • Preferred Securities Fund (PSF) Investor: Accumulation (Euro Hedged) Institutional: Accumulation Investor: Income Investor : D Class Accumulation Investor : F Class Accumulation Institutional: Accumulation (Euro Hedged) Institutional: Accumulation (JPY Hedged) Institutional: Income (Euro Hedged) Institutional: Income (JPY Hedged) Investor : D Class Income Investor : F Class Income Investor : Accumulation Institutional : Income (GBP Hedged) • US Equity Fund (USEF) Investor: Accumulation Institutional: Accumulation Institutional Accumulation (GBP Hedged) • High Yield Fund (HYF) Institutional: Accumulation Investor: Accumulation • Global Property Securities Fund (GPSF) Institutional: Accumulation (Euro Hedged) Institutional Accumulation (USD Hedged) Institutional: Accumulation (GBP Hedged) Institutional: Accumulation • Global Equity