Principal International Equity Fund – Class D
BCT MPF Scheme Series 800
Data as of 2026-06-30
Straight talk on this fund
- Up 13.5% over the past year — 15 out of 16 global equity MPF funds. near the bottom of the group. Over 5 years it's made 7.8% a year.
- Fund expense ratio 1.24% a year — 11 bps below the median global equity fund (1.35%), middle of the range (peers: 0.82%–1.77%). 11 bps below the median — that cost edge compounds every year.
- Risk class 5, near the top of the scale. Worst calendar year on record: 2022 (-21.9%). That kind of drawdown separates the patient from the panicked.
- Top 10 holdings (NVIDIA Corp, Alphabet Inc-A, Amazon.com Inc…) are 36.7% of the fund — concentration is moderate. The top three (NVIDIA Corp, Alphabet Inc-A, Amazon.com Inc) alone are 16.4%: when those names move, the fund moves with them.
- In its best calendar year (2023) it made 23.5%; in its worst (2022) it lost 21.9% — that range tells you what you're signing up for.
- For monthly contributors, volatility can be a friend (buy more when down). Near retirement, that ride needs a second thought. When markets are choppy, position size itself is a decision.
Manager's LensWhat the portfolio reveals about the manager's thinking
Top-10 holdings are 36.7% of the fund. Nvidia at 6.8% is the largest single position. The top three together are 16.4%. Concentration is moderate. Within the top 10, by sector: semiconductors 14.0%, tech and internet 9.7%, software 4.0%. Within the top 10, by geography: US 20.4%, Taiwan 3.9%, Europe 3.3%. 5 of the top 10 holdings overlap with peers — selective differentiation from the category.
There is meaningful AI-cycle exposure through semiconductors and hardware. It is a contributor, not the driver.
Selective deviations from peers include Alphabet -A (5.4%), Asml Holding N.V. (3.3%), Western Digital (2.8%).
Balanced with no dominant style; top-10 concentration 36.7%. Manager makes selective deviations from peers (5/10 top holdings overlap). No strong cyclical tilt — stock selection, not macro rotation, will drive returns. Diversified portfolios have manageable volatility — suitable as a foundation; aggressive investors can add thematic satellites.
Investment Objective
To seek capital growth over the long-term through investing mainly in equity markets around the world.
Trailing Returns ⓘ
| 1 Year | 3 Years | 5 Years | 10 Years | Since Inception | YTD | |
|---|---|---|---|---|---|---|
| Cumulative | +13.50% | +49.47% | +45.26% | +145.44% | +252.46% | +4.73% |
| Annualised | +13.50% | +14.34% | +7.75% | +9.39% | +5.05% | — |
Calendar Year Returns ⓘ
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Return (%) | +21.64% | +10.67% | +23.53% | -21.91% | +18.19% |
Returns are net of fees. Past performance is not indicative of future returns.
Dollar Cost Averaging Return ⓘ
Cumulative Return
| YTD | 1 Year | 3 Years | 5 Years | 10 Years | Since Inception | |
|---|---|---|---|---|---|---|
| Return (%) | +3.10% | +6.21% | +24.26% | +37.36% | +69.44% | +181.42% |
Annualised Return
| 1 year | 5 years | 10 years | Since launch | |
|---|---|---|---|---|
| Return (% p.a.) | +8.6% | +15.92% | +37.96% | +61.12% |
Fund Commentary
The second quarter was defined by a gradual transition from acute geopolitical fear toward a more measured assessment of how persistent geopolitical, inflationary, and structural forces will shape the global economy. Equity markets entered the quarter recovering from the sharp selloff experienced at the end of March as investors grew more confident that the Middle East conflict, while significant, was unlikely to cause widespread fundamental damage to corporate earnings or trigger a global recession. As the quarter progressed, market leadership increasingly shifted away from geopolitical headlines alone and toward the interaction between energy markets, inflation, monetary policy, and the accelerating influence of artificial intelligence.The quarter demonstrated that global markets remain remarkably resilient despite elevated geopolitical risks, persistent inflation pressures, and higher interest rates. Investors increasingly shifted their focus away from the immediate consequences of the Middle East conflict and toward the longer-term implications of energy security, monetary policy, and artificial intelligence. While economic fundamentals remain constructive, diversification has become more difficult to achieve as global drivers increasingly shape outcomes across regions and asset classes. In this environment, earnings durability, pricing power, balance sheet strength, and exposure to differentiated structural growth drivers remain critical factors for navigating an increasingly interconnected global landscape.
Portfolio Allocation
Top 10 Holdings
| # | Security name | Holdings Weight |
|---|---|---|
| 1 | NVIDIA Corp | 6.77% |
| 2 | Alphabet Inc-A | 5.44% |
| 3 | Amazon.com Inc | 4.21% |
| 4 | Microsoft Corp | 3.96% |
| 5 | Taiwan Semiconductor Manufacturing Co Ltd | 3.94% |
| 6 | ASML Holding N.V. | 3.32% |
| 7 | Western Digital Corp | 2.75% |
| 8 | Renesas Electronics Corporation | 2.18% |
| 9 | NextEra Energy, Inc. | 2.11% |
| 10 | Motorola Solution Inc | 1.99% |
| Total | 36.67% |
Fees & Charges
The fund expense ratio shows the total annual cost of running this fund as a percentage of its assets. It is already reflected in the fund price and returns. When comparing similar funds, fees are one of the few factors you can control.
FER is a backward-looking figure from the fund's financial year, taken from provider fact sheets and audited annual reports. It may not yet reflect announced fee cuts.