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Our investment approach

Principal Finisterre is an experienced team dedicated to finding opportunities within the diversified emerging market universe through various market cycles. We are unconstrained, flexible, adaptive, and independent specialist investors in EMD, offering total return and diversified income strategies to a wide range of investors.

A disciplined, top-down, discretionary, and repeatable investment process
 

Finisterre investment process

Fundamental analysis is subject to the risk that unexpected factors may dominate the market causing distortions. Principal Finisterre may modify its investment approach (including investment themes), portfolio allocations and geographical and sector exposures at any time in any manner that it believes is consistent with its overall investment objective without notice to investors.

Explore our featured fixed income strategy.

To help you diversify your opportunities, we continually review fixed income markets to identify and offer strategies to meet your objectives.
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.

Sustainable investing approach

When it comes to sustainable investing, we empower fixed income investors by offering choice, confidence, and flexibility.

We believe that ESG characteristics are not just an investment risk factor, but also a broader consideration to positively impact and influence various stakeholders for a more sustainable world. Our ESG-integrated quantitative process is used to detect opportunities and exclusions to enhance and improve a portfolio’s ESG footprint and ESG scores.

  • ESG considerations are embedded into our single-name research assessment of corporate and sovereign issuers, focusing on sectoral exclusion policies and environmental impact considerations.

  • ESG footprint is measured and managed at the portfolio level using third-party portfolio scoring methodology and internal ESG committee reviews of controversial names.

  • Engagement with Emerging Markets sovereign and corporate issuers is well-documented to measure impact and ensure portfolio optimization.

Get to know our fixed income investment teams.

Our fixed income investment teams have a track record of solving for a wide range of personalized investor objectives.
Principal Alternative Credit

A seasoned investment team with significant credit investment experience across all major industries and market cycles, focused on providing our global investment base access to private credit solutions.

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.

Principal Morley

Specializes in managing capital preservation strategies and designing customized stable value solutions through a risk-managed, multi-stage construction approach incorporating a proprietary optimization model. 

Post Advisory Group

A value-oriented active manager that specializes in managing high yield bonds, leveraged loans, collateralized loan obligations, and structured credit products, finding high-quality businesses through rigorous bottom-up fundamental credit research with a top-down macro and technical overlay.

Spectrum Asset Management

Extensive experience in managing global preferred and capital securities with a robust fundamental credit research approach, including both top-down and bottom-up analyses that lead to selective and thoughtful portfolio construction.

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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.

ESG integration is considered across all actively managed asset classes, with the approach determined by each investment group’s process. This information is specific to the strategies managed by the individuals providing this content and various investment teams across Principal may have differing views of this approach.

Principal Finisterre is an investment team within Principal Global Investors.