Real estate

Listed real assets outlook and opportunities

Resiliency matters in 2023

December 19, 2022 | 8 min read

Kelly Rush, CFA

Chief Executive Officer, Public Real Assets & Chief Investment Officer, Real Estate Securities

Emily Foshag, CFA

Portfolio Manager, Listed Infrastructure

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Key Insights

There is a high degree of uncertainty for what lies ahead.

This is not surprising in a regime of higher inflation and rates not seen in nearly 40 years. Inflation and central bank policies are key signals to the path of growth forward.

Materially weaker global outlook with rolling regional recessions in 2023 are our base case.

In eight of the nine times the U.S. Federal Reserve (Fed) has tightened to tame inflation in the past 60 years it has engineered a recession. We expect a moderately worse recession than what is implied in markets today and perceive broad equity markets as susceptible to sell-offs to price in the damage.

The Fed is no longer a friend of the market so don’t expect a quick rescue.

Investors today are accustomed to short-lived crises, having learned to expect that the Fed will quickly loosen monetary conditions to backstop markets. With inflation likely to remain above average for longer, a Fed pivot is less likely to occur when economic conditions do weaken.

In uncertain times we believe investors should favor listed real assets for the resiliency they offer.

Listed REITs and infrastructure companies can provide durable and defensive cash flow streams that are relatively more resilient than other equities.

Peaking real yields and inexpensive relative valuations are tailwinds for REITs.

Rising real yields are big negatives for higher duration REITs but this headwind will fade away as growth weakens. REITs trade at wide discounts relative to both equities and private real estate.

Listed infrastructure companies possess multiple sources of resiliency for uncertain times.

As regulated monopolies or monopoly-like businesses delivering essential services, most companies have a differentiated ability to preserve margins during periods of rising inflation and deliver stable cash flows. Structural themes of demographics, decarbonization, and digitalization may offer tailwinds for growth to outlast a recession.

The pain of rising real yields is largely in the past

In an environment of rising real yields, the investments that suffer the most are those associated with long duration. In public equity markets, stocks with higher multiples and long-term resilient cash flows are viewed as higher duration, including listed REITs and infrastructure stocks. This explains most of the underperformance of listed REITs in 2022, in our view. Listed infrastructure, however, outperformed. We believe this mostly reflects a catch-up for the asset class after underperforming four of the prior five calendar years and remain constructive on the forward-looking returns potential of listed infrastructure.

Looking ahead, the peaking in real yields should usher in a more favorable environment for REITs and infrastructure as discount rates reach equilibrium and investors focus again on cash flows. The outperformance of listed real assets relative to equities has historically been quite significant after real yields have peaked, and for this top-down reason we are optimistic about listed real assets relative to other equities in 2023.

We are closer to the peak of interest rates than we are the start of rate hikes, and that itself bodes well for listed REITS and infrastructure stocks.

Kelly Rush

TIPS yields and trailing one year total returns for listed real assets and equities

As of 30 November 2022. Source: FactSet. FTSE Global Core Infrastructure 50/50 Index, FTSE EPRA/NAREIT Developed GTR Index, MSCI World GTR Index, and U.S. 10-year TIPS yields. Returns in USD. Past performance is not a reliable indicator of future return and should not be relied upon to make investment decisions. Index performance information reflects no deduction for fees, expenses, or taxes. Indices are unmanaged and individuals cannot invest directly in an index. Does not represent any investment strategy.

Real assets and real yields

As of 31 October 2022. Source: FactSet. Returns data is showing FTSE EPRA/NAREIT Developed index (global REITs) average cumulative total returns and excess returns over the MSCI World (global equities), FTSE NAREIT Equity REITs (U.S. REITs) over the S&P 500 (U.S. equities), and FTSE Global Core Infrastructure 50/50 (listed infrastructure) over the MSCI ACWI (global equities) during the last 7 periods of rising real yields (an increase of at least 75 bps represented by the US 10-year TIPS) and during the 12 months after the peak of the rising rate period. *Listed infrastructure represents the last 6 periods due to a shorter data history. Past performance does not guarantee future results. Indices are unmanaged and do not take into account fees, expenses, and transaction costs and it is not possible to invest in an index.

Earnings resilience should matter in a recession

Listed infrastructure and REITs have generally exhibited greater earnings resilience during major downturns, with the best example perhaps how earnings reacted during the global financial crisis (2008-09). The potential for earnings resilience across these asset classes is directly linked to medium- to long-term lease periods in the case of REITs, or in the case of infrastructure, to the robust regulatory or contractual protections the companies enjoy as essential service providers. In many cases, demand for infrastructure services also exhibits relatively low economic sensitivity. The cash flow profile of REITs and listed infrastructure businesses can thus be advantageous when economic times get tough.

We believe investors should be cautious about how much company earnings estimates for the next 12 months need to come down. Comparatively, we expect REIT and infrastructure equities to see more modest declines.

There are structural themes for listed REITs and infrastructure that are providing tailwinds to growth, themes that we expect will meaningfully outlast central bank tightening and recession concerns.

Emily Foshag

Earnings declines during the global financial crisis (2008-09)

As of 31 December 2008, & 2009. Source: FactSet. Calendar year earnings per share year over year growth for the SPDR S&P Global Infrastructure ETF (proxy for listed infrastructure universe), FTSE EPRA/NAREIT Developed, and MSCI World indices.

Structural themes are driving change and opportunity in real assets

Principal Real Estate

Resilient balance sheets for uncertain times

Both REITs and listed infrastructure businesses have resilient balance sheets given the significant amount of long dated and fixed rate debt typically utilized. REITs have demonstrated discipline in the use of leverage and today are in a stronger position than ever before. While leverage ratios for listed infrastructure companies are not materially different than they have been historically, the quality of the businesses has increased notably in the past 15 years and accordingly we remain comfortable with leverage as it stands today. In many cases, leverage ratios are dictated by regulators, and as such companies have formal restrictions on their ability to deviate from reasonable levels of leverage.

Going forward, the cost of capital is indeed higher, and we expect refinancing future debt maturities will represent a drag on earnings. Fortunately, we expect a modest impact as future debt maturities are quite manageable and well staggered over long periods.

The balance sheets of public real estate and infrastructure companies are in a good position to weather the storm ahead.

Kelly Rush

Global REITs: % of debt expiring by year

Global listed infrastructure: % of debt expiring by year

As of 30 November 2022. Source: FactSet. Long term debt maturities for the FTSE EPRA/NAREIT Developed and FTSE Global Core Infrastructure 50/50 indic

Listed REITs a bargain relative to equities and private real estate

Public REIT markets have priced in much higher real estate capitalization rates due to rising yields and higher cost of capital. This results in REITs looking cheap both relative to equities and the physical real estate they own (i.e., net asset value).

For private real estate funds and non-traded REITs, shares are valued using property appraisals, which tend to lag real-time changes in conditions. With property transactions coming to a standstill this year, participants in the private real estate market don’t have the price discovery needed to determine changes in values. We believe this will change as we move into next year, with private real estate values likely seeing downside driven by higher cost of capital and economic headwinds pushing up cap rates.

Historically, we have seen public REITs outperform private real estate the next three years when trading at discounts to NAV greater than 15%.

The set-up for potential outperformance of REITs next year is positive given cheap relative valuations.

Kelly Rush

Global REITs vs. equities EV/EBITDA spreads

As of 30 November 2022. Source: FactSet. EV/EBITDA (NTM) multiples are shown for the FTSE EPRA/NAREIT Developed index over the MSCI World.

Global REITs: premium (discount) to NAV

As of 30 November 2022. Source: Principal Global Investors, FactSet, FTSE. This chart illustrates the weighted average Price/Net Asset Value of the stocks in FTSE EPRA/NAREIT Developed Index. Past performance is not a reliable indicator of future return. Index performance information reflects no deduction for fees, expenses, or taxes. Indices are unmanaged and individuals cannot invest directly in an index. Does not represent any investment strategy.

Listed infrastructure valuations remain reasonable

Listed infrastructure currently trades above its long-term average on an EV-to-next 12 months (NTM) EBITDA basis. Valuations for listed infrastructure may therefore seem less compelling on the surface but remain quite reasonable in the context of outsized expected growth, in our view.

Unlike with other areas of the public equity markets, the higher multiples we are seeing today are not a function of meaningful multiple expansion. Instead, listed infrastructure multiples reflect a still denominator, or EBITDA, compared to pre-pandemic levels. Comparing listed infrastructure to its own long-term history also does not reflect notable improvements in business quality over the last 15 years.

EBITDA growth expectations remain elevated relative to historical levels given tailwinds from a return to normal post- the coronavirus pandemic and an acceleration in structural growth drivers such as decarbonization. Expectations for year-over-year EBITDA growth in the next 12 months are nearly two standard deviations above the long-term average.

Given the high confidence we have in forward- looking fundamentals, you don’t have to assume further multiple expansion to see positive returns next year for listed infrastructure.

Emily Foshag

Global listed infrastructure EV/EBITDA next 12 months multiples

As of 30 November 2022. Source: FactSet. EV/EBITDA (NTM) multiples are shown for the FTSE Global Core Infrastructure 50/50 index.

Global listed infrastructure EBITDA NTM year-over-year growth

As of 30 November 2022. Source: FactSet. EBITDA (NTM) year over year growth is shown for the FTSE Global Core Infrastructure 50/50 index.

Sector preferences in 2023

Our investment approach within listed real assets emphasizes resiliency for what we expect to be tougher macroeconomic conditions ahead. We are expressing a preference for businesses with resilient pricing power, lower economic sensitivity, and/or favorable exposure to structural growth drivers. Our emphasis on bottom-up stock-picking does lead to certain sector preferences.

In listed REITs, the non-traditional residential sectors are a favorite given home ownership is expensive, forcing many individuals to rent when they would otherwise buy. In healthcare, senior housing enjoys demographic tailwinds and niche life science office is more immune from work-from-home trends. Long-term growth in mobile data usage is a big structural driver for tower REITs and this subsector is a favorite in our listed infrastructure portfolios, too.

Also, within listed infrastructure, the clean energy transition provides favorable tailwinds for many listed infrastructure subsectors. Water utilities benefit from demand inelasticity for clean water and a need to invest to mitigate the impacts of climate change. Lastly, as the consumer continues to face challenges from the deteriorated macro environment, we see certain subsectors as better positioned given they are less likely to see major regulatory scrutiny over end-user costs. Towers and energy infrastructure companies largely operate using business-to-business (B2B) models, for example, and water bills are typically a much smaller portion of household costs than are energy bills.

Bubble chart showing preferences in 2022 in REITs and listed infrastructure sectors

As of 30 November 2022. These are the current views and opinions of Principal Real Estate Investors and is not intended to be, nor should it be relied upon in any way as a forecast or guarantee of future events regarding particular investments or the markets in general. Current views should not be considered as a comprehensive statement and should not be relied upon as such nor should it be construed as specific investment advice or recommendation.

Disclosure

Risk Warnings
Investing involves risk, including possible loss of principal. Past performance is no guarantee of future results. Potential investors should be aware of the risks inherent to owning and investing in real estate, including value fluctuations, capital market pricing volatility, liquidity risks, leverage, credit risk, occupancy risk and legal risk. Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Infrastructure issuers may be subject to regulation by various governmental authorities and may also be affected by governmental regulation of rates charged to customers, operational or other mishaps, tariffs and changes in tax laws, regulatory policies and accounting standards. Foreign securities involve special risks, including currency fluctuations, lower liquidity, political and economic uncertainties and differences in accounting standards. Some international securities may represent small and medium-sized companies, which may be more susceptible to price volatility and may be less liquid than larger companies.

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This material covers general information only and does not take account of any investor’s investment objectives or financial situation and should not be construed as specific investment advice, a recommendation, or be relied on in any way as a guarantee, promise, forecast or prediction of future events regarding an investment or the markets in general. The opinions and predictions expressed are subject to change without prior notice. The information presented has been derived from sources believed to be accurate; however, we do not independently verify or guarantee its accuracy or validity. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security, nor an indication that the investment manager or its affiliates has recommended a specific security for any client account. Subject to any contrary provisions of applicable law, the investment manager and its affiliates, and their officers, directors, employees, agents, disclaim any express or implied warranty of reliability or accuracy and any responsibility arising in any way (including by reason of negligence) for errors or omissions in the information or data provided.

This material may contain ‘forward looking’ information that is not purely historical in nature. Such information may include, among other things, projections, and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

All figures shown in this document are in U.S. dollars unless otherwise noted. Indices are unmanaged and do not take into account fees, expenses and transaction costs. It is not possible to invest directly in an index.

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This website may contain videos where the comments were valid on the date the video was recorded. Markets move continuously and you should only rely on current information for any investment decisions. The information and materials contained on this website, and the terms, conditions, and descriptions that appear, are subject to change. All content on this website is presented only as of the date published or indicated, and may be superseded by subsequent market events or for other reasons. In addition, you are responsible for setting the cache settings on your browser to ensure you are receiving the most recent data.

No Warranties
The information on this website has been developed internally and/or obtained from sources believed to be reliable; however Principal Global Investors and its affiliates do not independently verify or guarantee its accuracy or validity. The information and services provided on this website are provided ""AS IS"" and without warranties of any kind, either expressed or implied. To the fullest extent permissible pursuant to applicable law, Principal Global Investors disclaims all warranties, including, but not limited to, any warranty of non-infringement of third-party rights and any implied warranties of merchantability and fitness for a particular purpose. Principal Global Investors does not warrant, either expressly or impliedly, the accuracy or completeness of the information, text, graphics, links or other items contained on this website and does not warrant that the functions contained in this website will be uninterrupted or error-free, that defects will be corrected, or that the website will be free of viruses or other harmful components. Principal Global Investors expressly disclaims all liability for errors and omissions in the materials on this website and for the use or interpretation by others of information contained on the website. Subject to any contrary provisions of applicable law, no company in the Principal Financial Group nor any of their employees or directors gives any warranty of reliability or accuracy nor accepts any responsibility arising in any other way (including by reason of negligence) for errors or omissions on this website.

If you have questions, please email us.

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"These Terms & Conditions explain certain legal and regulatory conditions and restrictions in relation to the Principal Global Investors (Europe) Limited website, and in relation to the Principal Global Investors Funds (‘the Funds’). This information may be changed by Principal Global Investors at any time without notice.

In these terms and conditions, references to 'Principal Global Investors' means Principal Global Investors (Europe) Limited or any affiliate of the Principal Financial Group, Inc. or Principal Global Investors, LLC.

Before you proceed, you must acknowledge that you have read, and agree to, our terms and conditions.

Information in relation to the Principal Global Investors Funds is available through this web site to institutional investors resident in the following countries of: Belgium, France, Finland, Germany, Guernsey, Ireland, Italy, Jersey, Netherlands, Spain, Sweden, Switzerland and the United Kingdom. By proceeding this far you are representing and warranting that you are an institutional investor resident in one of these countries. Not all of the Funds are available in all these jurisdictions, and investors are directed to the Country Registration document for detailed information . What follows is not an offer or invitation to acquire an investment to, and should therefore not be relied upon by, any person anywhere other than the countries noted. Persons in respect of whom such prohibitions apply must not access this web site. This web site is reserved exclusively for non-U.S. persons and should not be accessed by any person in the United States.

Yes, I certify to be an institutional investor and resident of a country listed above.

Cookies
Use of cookies on this site is outlined in the Privacy and Security Policy. In accepting these terms and conditions, you accept the terms of the Cookie Policy and the use of cookies from this site.

Legal Entity Disclosure and Regulation
In Europe by Principal Global Investors (EU) Limited, Sobo Works, Windmill Lane, Dublin D02 K156, Ireland. Principal Global Investors (EU) Limited is regulated by the Central Bank of Ireland.

In the United Kingdom by Principal Global Investors (Europe) Limited, Level 1, 1 Wood Street, London, EC2V 7 JB, registered in England, No. 03819986, which is authorised and regulated by the Financial Conduct Authority (“FCA”).

In Switzerland by Principal Global Investors (Switzerland) GmbH. This website is considered as advertising and information contained herewith be treated as such. Investors can obtain free of charge the prospectus, trust deed, the prospectus, the key investor information document (KIID), and the annual and semi-annual reports from the representative in Switzerland.

In Europe and United Kingdom, this website is directed exclusively at Professional Clients and Eligible Counterparties and should not be relied upon by Retail Clients (all as defined by the MiFID and FCA respectively). If you are viewing the material as a retail investor, you should seek independent investment advice before deciding whether the products and services in question are suitable to meet your investment needs and objectives, as the language has not been complied to a retail client standard.

Principal Global Investors Funds
Principal Global Investors (Ireland) Limited is the issuer of the Funds. Investments may only be made on an application form attached to a current prospectus and following receipt by the investor of the KIID in respect of the Fund in which they intend to invest. The latest version of the prospectus of the Funds is dated 14 December 2012.

For Real estate investors in the European Economic Area (“EEA”), this website and the information on it is only directed at persons who are professional investors for the purposes of the Alternative Investment Fund Managers Directive (2011/61/EU) (“AIFMD”), professional clients or eligible counterparties for the purposes of the Markets in Financial Instruments Directive (Directive 2014/65/EU) (“MiFID II”) or as otherwise defined under applicable local law and regulation and at whom this website and the information on it may lawfully be directed in any relevant jurisdiction (“Eligible Persons”). In relation to each member state of the EEA (“Member State”) which has implemented AIFMD (and for which transitional arrangements are not/ no longer available), this website may only be accessed and interests in Funds may only be offered or placed in a Member State to the extent that: (i) the relevant Fund is permitted to be marketed to professional investors in the relevant Member State in accordance with AIFMD (as implemented into the local law/regulation of the relevant Member State); or (ii) this website and its information may otherwise be lawfully distributed and the interests in Funds may otherwise be lawfully offered or placed in that Member State (including at the initiative of the investor). In relation to each Member State of the EEA which, at the date of accessing this website, has not implemented AIFMD, this information may only be distributed and interests in Funds may only be offered or placed to the extent that this information may be lawfully distributed and the interests in Funds may lawfully be offered or placed in that Member State (including at the initiative of the investor).

Persons who are not Eligible Persons, including but not limited to those individuals or other persons who fall within the FCA’s definition of ‘retail clients’, should not use or rely upon this website or the information contained therein and may not engage the services of Principal Real Estate or any of its affiliates, or invest in any Fund. Potential investors are advised that all or most of the protections provided by the UK regulatory system will not apply and that the UK Financial Services Compensation Scheme may not be available in relation to an investment in a Fund or separate account.

The contents of this website have not been verified or approved by any competent regulatory or supervisory authority. No liability, whether in negligence or otherwise, arising directly or indirectly from the use of the information or any part of it on this website is accepted and no representation, warranty or undertaking, whether express or implied, is or will be made at any time by Principal Real Estate or its affiliates or any of their respective advisers, directors, officers, employees, representatives or other agents (“Principal Agents”) for any information or any of the opinions contained herein or for any errors, omissions or misstatements.

None of Principal Real Estate or its affiliates or any Principal Agents makes or has been authorised to make any representation or warranties, whether express or implied, in relation to Principal Real Estate or regarding the truth, accuracy or completeness of any of the information contained on this website at any time. No representation or warranty is given by Principal Real Estate, its affiliates or the Principal Agents as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, estimates or forecasts contained in the information on this website. Furthermore, nothing contained on this website is or should be relied on as a promise or representation as to the future. No reliance may be placed by any person for any purpose whatsoever on the information or opinions contained on this website or on its completeness, accuracy or fairness at any time.

Principal Global Investors (Europe) Limited is not authorised by the FCA to directly deal with retail investors; any distribution of the Fund to retail investors in Europe is facilitated by fund distributors with which Principal Global Investors (Europe) Limited has entered distribution arrangements, pursuant to advice provided to investors by those distributors, based on the documents Principal Global Investors (Europe) Limited provides. Retail investors should not be provided with access to this website.

The name of the Swiss representative is ACOLIN Fund Services AG, Stadelhoferstrasse 18, CH-8001 Zürich. The name of the Swiss paying agent is Banque Cantonale de Genève, 17, quai de l’Ile, 1204 Geneva. Investors can obtain the prospectus, trust deed, the simplified prospectuses and the annual and semi-annual reports free of charge from the representative in Switzerland.
The value of units and the income from them may fall as well as rise.

Investments in the Funds are neither insured nor guaranteed by the US Government or the Federal Deposit Insurance Corporation and are not deposits or obligations of, or guaranteed by, Principal Global Investors.

No Solicitation
Nothing contained in this website shall constitute an offer or solicitation, in relation to units in the Funds or generally, in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or not authorised.

In particular, shares issued by the Company, and units in the Funds, have not been and will not be registered under the United States Securities Act of 1933 as amended or the securities laws of any state or political subdivision of the United States and may not, except in a transaction which does not violate US securities laws, be directly offered or sold in the United States or to any US Person. The Company will not be registered under the United States Investment Company Act of 1940 as amended.

This website is reserved exclusively for non-US persons and should not be accessed by any person in the United States.

No Investment Advice
The information in this website contains general information only on investment matters and should not be considered as a comprehensive statement on any matter and should not be relied upon as such nor should it be construed as specific investment advice, an opinion or recommendation. The general information it contains does not take account of any investor’s investment objectives, particular needs or financial situation, nor should it be relied upon in any way as a forecast or guarantee of future events regarding a particular investment or the markets in general. Past performance is not a reliable indicator of future performance and should not be relied upon as a significant basis for an investment decision.

You should also inform yourself as to (a) the possible tax consequences, (b) the legal requirements and (c) any foreign exchange restrictions or exchange control requirements which you might encounter under the laws of the countries of your citizenship, residence or domicile and which might be relevant to any investment, including the subscription, holding, transfer or disposal of units in the Funds

Delegation of Investment Management to Affiliates

Products upon which composite results contained in this material, if any, are based may not themselves be available in the United Kingdom and certain other jurisdictions; however, the underlying investment management capability can be made available to institutional investors subject to all applicable local regulations and restrictions. In connection with its management of client portfolios, PGIE may delegate management authority to affiliates that are not authorised and regulated by the Financial Conduct Authority. In any such case, the client may not benefit from all protections afforded by rules and regulations enacted under the Financial Services and Markets Act 2000.

Disclaimer
The information on this website is given by Principal Global Investors in good faith and has been derived from sources believed to be reliable and accurate as at their date. However, Principal Global Investors makes no representation or warranty of any kind for the accuracy or completeness of the information and it is under no obligation to update or correct any errors in the information after the date of publication. This website also contains videos where the comments were valid on the date the video was recorded. Markets move continuously and you should only rely on current information for any investment decisions.

Subject to applicable law, Principal Global Investors and its affiliates and their respective directors, employees and associates do not accept any responsibility arising in any way (including by reason of negligence) for errors in, or omissions from, the information and do not accept any liability for any loss or damage, however caused, as a result of any person relying on any information on the website or being unable to access the website.

The Internet is not a totally reliable and secure medium of communication. Principal Global Investors accepts no liability for the security or confidentiality of information transmitted in this way and any such transmission of information shall be at your own risk.

The entire content of this website is subject to copyright with all rights reserved. You may not copy, reproduce, distribute or modify the content of this website without the prior written permission of Principal Global Investors.

No instructions for investment purposes will be accepted directly from this website or by e-mail.

If you accept these terms and conditions, click ""Accept."""

You are about to leave PrincipalAM.com and be directed to our Japanese site, PrincipalGlobal.jp. If you wish to proceed, please click "Accept." If you would like to stay on PrincipalAM.com, please click "I do not accept."

You may view, download for caching purposes only, and print content from the website for your own personal use, subject to the restrictions set out below and elsewhere in these Terms of Use.

No Guarantee of Timeliness
This website may contain videos where the comments were valid on the date the video was recorded. Markets move continuously and you should only rely on current information for any investment decisions. The information and materials contained on this website, and the terms, conditions, and descriptions that appear, are subject to change. All content on this website is presented only as of the date published or indicated, and may be superseded by subsequent market events or for other reasons. In addition, you are responsible for setting the cache settings on your browser to ensure you are receiving the most recent data.

No Warranties
The information on this website has been developed internally and/or obtained from sources believed to be reliable; however Principal Global Investors and its affiliates do not independently verify or guarantee its accuracy or validity. The information and services provided on this website are provided ""AS IS"" and without warranties of any kind, either expressed or implied. To the fullest extent permissible pursuant to applicable law, Principal Global Investors disclaims all warranties, including, but not limited to, any warranty of non-infringement of third-party rights and any implied warranties of merchantability and fitness for a particular purpose. Principal Global Investors does not warrant, either expressly or impliedly, the accuracy or completeness of the information, text, graphics, links or other items contained on this website and does not warrant that the functions contained in this website will be uninterrupted or error-free, that defects will be corrected, or that the website will be free of viruses or other harmful components. Principal Global Investors expressly disclaims all liability for errors and omissions in the materials on this website and for the use or interpretation by others of information contained on the website. Subject to any contrary provisions of applicable law, no company in the Principal Financial Group nor any of their employees or directors gives any warranty of reliability or accuracy nor accepts any responsibility arising in any other way (including by reason of negligence) for errors or omissions on this website.

If you have questions, please email us.

Click ""Accept"" to indicate your acknowledgement and acceptance of Principal Global Investors Terms of Use and to continue."

"Principal Global Investors, LLC, the issuer of this website, is a branch registered in the Dubai International Financial Centre and is authorized by the Dubai Financial Services Authority as a representative office.

This website contains general information only on investment matters and nothing in this website is intended to constitute or form part of any offer or inducement to issue or sell, or any solicitation of any offer to subscribe for or purchase, any securities or investment products in the UAE (including the Dubai International Financial Centre) and accordingly should not be construed as such. Information in this website is not directed at you if we are prohibited by any law of any jurisdiction from making the information on this site available to you and is not intended for any use that would be contrary to local law or regulation. Products or services mentioned on this site are subject to legal and regulatory requirements in applicable jurisdictions and may not be available in all jurisdictions. Accordingly persons are required to inform themselves of and observe any such restrictions.

The information in this website is being made available on the basis that the recipient acknowledges and understands that the entities and securities to which it may relate have not been approved, licensed by or registered with the UAE Central Bank, the Dubai Financial Services Authority or any other relevant licensing authority or governmental agency in the UAE or elsewhere in the Middle East.

The information in the following website should not be construed as investment advice or a recommendation for the purchase or sale of any security. The value of investments and the income from them may fall as well as rise. Principal Global Investors, LLC and the other member firms of Principal Global Investors (collectively, the ""Firms"")* do not guarantee any investment results and there can be no assurance that the strategies employed will improve investment performance, and make no guarantee that a client's investment objectives will be achieved and no warranties or representations, expressed or implied, are made by the Firms concerning the benefits of these strategies discussed herein. The information in this website has been developed internally and/or obtained from sources that the Firms believe to be reliable; however, the Firms do not guarantee the accuracy, adequacy or completeness of such information and are not responsible for any errors or omissions. This website also contains videos where the comments were valid on the date the video was recorded. Markets move continuously and you should only rely on current information for any investment decisions.

This website contains general information only on investment matters and should not be considered as a comprehensive statement on any matter and should not be relied upon as such. The information it contains does not take account of any investor's investment objectives, particular needs or financial situation. Past performance is not a reliable indicator of future performance and should not be relied upon as a significant basis for an investment decision. You should consider whether an investment fits your investment objectives, particular needs and financial situation before making any investment decision.

Nothing in this website should be construed as investment, tax, legal or other advice.

The content of this website has not been approved by or filed with the UAE Central Bank or Dubai Financial Services Authority.

Access to this website is only permitted for ""sophisticated institutional investors/professional clients"". If you are not a ""sophisticated institutional investor/professional client"", you may not access this website and you should select the ""Decline"" link below.

By selecting the ""Accept"" button below, and entering this website, you agree to these terms and confirm and represent that you are a "" sophisticated institutional investor/professional client""."