Home Equity investment strategies Global Emerging Markets
Strategy differentiators

High conviction stock selection

Our experienced investment team conducts independent, bottom-up research to identify companies with differentiated business models, attractive long-term growth prospects, and improving fundamentals. Research is strengthened through collaboration across sector specialists, portfolio managers, and our global research network.

Governance-first framework

We integrate corporate and political governance into every investment decision, focusing on companies and countries with governance practices that support long-term value creation while protecting minority shareholders.

Risk-aware portfolio construction

Portfolio construction is guided by conviction, valuation, liquidity, and stock-specific risk. Our multi-dimensional risk framework emphasizes security selection while maintaining balanced exposures and a consistent investment style.

Strategy facts

Manager

Principal Equities

Inception

1 January 1995

Index

MSCI Emerging Markets Index

Targeted number of holdings

50-80

Expected turnover

30-60%

Investment vehicles

IMA & U.S. Mutual Fund

Portfolio management
Principal Equities

We believe bottom-up stock selection is the most reliable and repeatable source of consistent performance. Through focused fundamental research and disciplined risk management, we strive to take advantage of persistent behavioral biases and impediments to capital flows, which often create market inefficiencies and opportunities.

John Paul Lech
John Paul Lech
Portfolio Manager
22 years of experience

No information

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Past performance does not guarantee future results. Investing involves risk, including possible loss of principal.

Equity investments involve greater risk, including higher volatility, than fixed-income investments. Risk is magnified in emerging markets, which may lack established legal, political, business, or social structures to support securities markets.

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.

MSCI Emerging Markets Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets. The index covers approximately 85% of the free float-adjusted market capitalization in each country.

Principal Equities is an investment team within Principal Global Investors.