Investing in underappreciated companies where strong fundamentals, supportive country tailwinds, and responsible governance intersect to create long-term investment opportunities
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.
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
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.
No information
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.