Principal Asset Management launches “PRINCIPAL INXUS-A,” the first fund in Thailand to invest in global equities outside the United States.
Principal Asset Management has launched the Principal International XUS Equity Fund “PRINCIPAL INXUS-A,” the first fund in Thailand to invest in global equities outside the United States through the Principal International Equity ETF. This fund offers the opportunity to build a growth portfolio with diversified investments across multiple regions. Earnings per share of markets outside the US are projected to grow by approximately 14% this year, and current prices do not yet reflect this strong growth, making it an attractive investment opportunity. The underlying fund has delivered an outstanding 1-year return of 37.55%, outperforming its benchmark. The initial public offering (IPO) of units will be held from February 9-20.
Mr. Chumpol Saimala, CEO of Principal Asset Management Co., Ltd., revealed that Principal Asset Management has launched the “Principal International Ex US Equity Fund” (PRINCIPAL INXUS). Its key feature is that it's the first fund in Thailand with a policy of investing in global equities outside the United States, primarily through investment in the Principal International Equity ETF as its core fund. This aims to diversify investments outside the US and seize opportunities for strong portfolio growth. Principal sees this as a good opportunity to diversify into global stock markets outside the US (ACWI ex US), which delivered an outstanding return of 37.55% last year and continues to perform well year-to-date (YTD). This is driven by consistent fund flows into stock markets outside the US. Principal forecasts strong earnings per share (EPS) growth of approximately 14% this year for global stock markets outside the US, mirroring the US market, and with diversified growth across multiple countries. This presents investment opportunities in various key regions including Europe, Asia, Taiwan, Korea, and Japan.
Europe is benefiting from new economic stimulus measures led by Germany, increased investment in infrastructure, and increased defense budgets. Asia, including Taiwan (a world leader in advanced chip manufacturing), South Korea (a leader in high-speed memory for AI), and China (developing its own AI ecosystem and platform), and Japan (reforming corporate governance), are all positive factors. Investment in AI, wage growth, and a shift in investment behavior from safe assets to high-yielding assets are all contributing to these positive trends. These countries are considered the global hubs of AI and semiconductor innovation, thus mitigating the concentration risk in the US stock market, which accounts for nearly two-thirds of the market index, while current valuations remain relatively inexpensive.
The PRINCIPAL INXUS open-ended fund invests in units of the Principal International Equity ETF as its core fund, which focuses on investing in foreign stocks excluding US stocks (Global ex US) and diversifies investments across at least 10 countries in their respective stock markets.
The fund invests in developed and emerging market equities, diversified across various industries. The core fund has generated 3-month, 6-month, 1-year, and inception (November 2024) returns of 5.41%, 14.47%, 37.55%, and 33.19%, respectively, outperforming its benchmark index (MSCI ACWI Ex USA NR USD) which yielded 5.05%, 12.29%, 32.39%, and 27.20%, respectively. Compared to similar funds, the core fund has consistently remained in the 1st Quartile across all timeframes.
The fund is managed by a team of investment experts with an average of over 30 years of experience, particularly in stock markets outside the United States. They employ a bottom-up investment approach, emphasizing individual stock analysis based on fundamental factors such as strong business fundamentals, participation in high-potential industries, high future free cash flow, and stable and sustained profit growth prospects. This creates a high-conviction portfolio by investing in stocks with the potential to outperform market expectations, adjusting investment weights based on the fund managers' confidence. The focus is on selecting companies whose cash flow is underestimated by the market to generate alpha, or returns exceeding market expectations. Historical data over the past 40 years shows that companies with a tendency to generate strong cash flow...
A high forward free cash flow yield typically generates returns that consistently outperform the market in all market conditions.
Examples of stocks invested in the portfolio as of December 31, 2025 include technology stocks such as SAMSUNG, a leading integrated technology provider ranging from memory chips and semiconductors to consumer devices and mobile phones, global automotive and audio solutions, and ASML, a technology leader with a significant role in the chip manufacturing and semiconductor industry, etc.; and the financial sector, such as AIB GROUP, a leading Irish bank providing comprehensive financial services, etc.
The Principal International XUS Equity Fund “PRINCIPAL INXUS” has a registered capital of 1,000 million baht. The initial public offering (IPO) of fund units is scheduled for February 9-20, 2569. The minimum subscription amount is 1,000 baht. Interested investors can contact Principal Asset Management or its officially appointed sales and redemption agents for more information and a prospectus.
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