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Emerging markets debt

Finisterre Emerging Markets Debt Total Return

An active, unconstrained, adaptive, long-biased, multi-EMD strategy that aims to participate in the upside potential of EMD, while seeking to limit downside volatility.

Strategy differentiators

  • Designed to be an all-weather solution that assesses the full EMD market cycle and allocates across U.S. dollar, sovereign or corporate credit, local currency bonds, and foreign exchange.

  • Innovative portfolio construction process—team ranks and optimizes EMD performance drivers (cash, income, alpha, and beta assets) with an emphasis on volatility and liquidity.

  • EMD-focused investment manager with extensive experience providing solutions within the entire emerging market universe through market cycles.

Strategy facts

  • Manager

    Principal Finisterre

  • Inception

    1 June 2013

  • Index

    JP Morgan EM Equal Weight Total Return Index*

  • Targeted number of issuers

    70-150

  • Expected turnover

    200-500%**

  • Investment vehicles

    IMA, LP Fund, UCITS Fund, U.S. Mutual Fund

*For performance comparison only.
**Bond only.

Portfolio management

Principal Finisterre

As a specialist emerging market debt manager committed to delivering solutions that can perform in any market condition, we utilize an unconstrained, time-tested approach to managing income, volatility, and liquidity.

Chief Investment Officer
Damien Buchet, CFA
31 years of experience
Senior Portfolio Manager
Christopher Watson, CFA
24 years of experience
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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. International and global investing involves greater risks such as currency fluctuations, political/social instability, and differing accounting standards. Risk is magnified in emerging markets, which may lack established legal, political, business, or social structures to support securities markets. Emerging market debt may be subject to heightened default and liquidity risk. 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.

Principal Finisterre is an investment team within Principal Global Investors.

JP Morgan EM Equal Weight Index is composed of 33.3% JP Morgan Corporate Emerging Market Bond Index Broad Diversification, 33.3% JP Morgan Emerging Markets Bond Global Diversification Index, and 33.3% JP Morgan Government Bond Emerging Market Global Diversification Index.

JP Morgan EMBI Global Diversified Index is an unmanaged, market-capitalization weighted, total-return index tracking the traded market for U.S.-dollar-denominated Brady bonds, Eurobonds, traded loans, and local market debt instruments issued by sovereign and quasi-sovereign entities. JP Morgan CEMBI Broad Diversified Index is an expansion of the JP Morgan Corporate Emerging Markets Bond Index (CEMBI). The CEMBI is a market capitalization weighted index consisting of U.S. dollar denominated emerging market corporate bonds. JP Morgan GBI-EM Global Diversified Index is a comprehensive global local emerging markets index, and consists of regularly traded, liquid fixed-rate, domestic currency government bonds to which international investors can gain exposure.