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Strategy differentiators

  • Time-tested process complemented by proprietary investment tools.

  • Rigorous fundamental credit research informed by top-down macro.

  • Team structure that fosters the swift translation of insight into action.

  • Cross-sector collaboration across our fixed income platform.

Strategy facts

  • Manager

    Principal Fixed Income

  • Inception

    1 January 2010

  • Index

    ICE BofA Global High Yield USD Hedged Index 

  • Targeted number of issuers

    150-225

  • Expected turnover

    30-50%

  • Investment vehicles

    IMA, SMA, UCITS Fund

Portfolio management

Principal Fixed Income

A global platform of integrated and specialized teams focused on delivering innovative, actively managed total return and yield-oriented investment solutions through capabilities that span all major fixed income sectors.

PM Title
Head of High Yield
Name
Mark Denkinger, CFA
32 years of experience
PM Title
Portfolio Manager
Name
Joshua Rank, CFA
22 years of experience
PM Title
Portfolio Manager
Name
Darrin Smith, CFA
31 years of experience
Learn more

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Past performance does not guarantee future results.

Fixed‐income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Lower-rated securities are subject to additional credit and default risks. Risk management techniques seek to mitigate or reduce risk but cannot remove it.

Investment guidelines are subject to change.

Not all investment options are available in all jurisdictions. Certain vehicles have not been registered with the United States Securities and Exchange Commission under the United States Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States or to any United States person.

Non-investment grade securities offer a potentially higher yield but carry a greater degree of risk. Potential investors should be aware that fixed Investments carry credit risks, default risk, liquidity risks, currency risks, operational risks, legal risks, counterparty risk and valuation risks.

Principal Fixed Income is an investment team within Principal Global Investors.

Prior to January 1, 2015 the benchmark used for comparison purposes for the Global High Yield strategy is the ICE BofA Global High Yield Index. On January 1, 2015 the strategy benchmark was changed to the ICE BofA Global High Yield USD Hedged Index. The ICE BofA Global High Yield Hedged to USD Index is the hedged version of the ICE BofA Global High Yield Index. The index tracks the performance of USD, CAD, GBP, and EUR denominated below investment grade corporate debt publicly issued in the major domestic or Eurobond market. Qualifying securities must have a below investment grade rating (based on the average of Moody’s, S&P, and Fitch). In addition, qualifying securities must have an investment grade rated country of risk (based on an average of Moody’s, S&P, and Fitch foreign currency long term sovereign debt ratings), at least one year remaining term to final maturity, a fixed coupon schedule and a minimum amount outstanding of USD 100 million, EUR 100 million, GBP 50 million, or CAF 100 million. In reports issued prior to January 1, 2015, the ICE BofA Global High Yield Index was used for comparison purposes. The benchmark was changed to be more representative of the composite strategy.