Principal Capital Appreciation Series 3 ETF (LCAP)

Overview

LCAP is a strategic investment vehicle that provides investors with exposure to the US equity market, focusing on long-term capital growth. The portfolio is actively managed and consists of a diverse array of US companies spanning all market capitalizations, with a notable emphasis on small and medium-sized firms. However, the fund aims for an increased exposure to large-cap companies, capitalizing on their stability and growth potential. The investment advisers of LCAP undertake meticulous analysis to identify securities that are perceived to be trading at a discount to their intrinsic market value. They focus on companies that possess competitive advantages and significant barriers to entry within their industries, ensuring robust investment choices aimed at delivering superior returns for clients.

Products and Services

• Actively Managed Equity Portfolio

  LCAP offers an actively managed portfolio that includes a diversified range of US companies across various market capitalizations. This strategy is designed to enhance growth potential while actively responding to market changes.

• Small and Medium-Sized Enterprises Focus

  With an emphasis on small and medium-sized firms, LCAP taps into high-growth potential areas of the market that might be undervalued or overlooked by traditional large-cap strategies.

• Large-Cap Exposure

  The fund strategically increases its exposure to large-cap companies, leveraging their market presence and stability to provide a balanced risk-return profile within the portfolio.

• Value Investing Strategy

  LCAP employs a value investing approach, targeting securities believed to be undervalued in the market, focusing on their private market value. This disciplined approach aims to identify high-conviction investments that can lead to significant capital appreciation.

• Competitive Advantage Assessment

  The advisers conduct thorough analyses to pinpoint companies that hold a competitive edge within their respective industries. This ongoing evaluation helps in selecting firms that are well-positioned for long-term success.

• Barrier to Entry Analysis

  Investments are also made in businesses that exhibit substantial barriers to entry, ensuring that competitors have difficulty replicating their success, thus safeguarding the investment and increasing the likelihood of sustained profitability.