An all-weather emerging market debt solution designed to navigate market ups & downs.

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Principal Finisterre Emerging Markets Total Return Bond Fund | PFUMX

Overall Morningstar RatingTM 1

As of 06/30/2024 among 226 Emerging Markets Bond Funds.

Morningstar ratings are based on risk-adjusted returns.

Upside/downside capture during major EMD market events

Our objective is to deliver more resilient and predictable returns from an EMD allocation, aiming at maximizing income and upside capture while minimizing downside capture and volatility throughout the EMD asset price cycle. Using our unique approach, we aim to deliver the income and return opportunities available across the entire EMD universe in a risk-managed way, such that EMD can become a resilient core allocation in your portfolio.

Finisterre Emerging Market Total Return Bond Fund (class I) track record versus main EMD market indices
Click here to view standardized performance.

Infographic showing Finisterre emerging market total return bond fund track record vs. main EMD market indices
Disclosure

Source: Principal Finisterre. As of June 30, 2024. Chart reflects performance for the Finisterre Emerging Market Total Return Bond Fund Class I. The Blended Index is the JP Morgan EM Equal Weight Total Return Index which is currently 33.3% CEMBI Broad Diversified, 33.3% EMBI Global Diversified, and 33.3% GBI-EM Global Diversified, gross of withholdings taxes, rebased monthly. The benchmark was changed retroactively on April 30, 2017 back to August 1, 2016. This change is due to the fact that the current benchmark more accurately reflects the investment strategies of the fund. No leverage cost assumed. Additional information concerning this is available on request.

Important index information:

Indices are unmanaged and do not take into account fees, expenses, and transaction costs and it is not possible to invest in an index.

  • The J.P. Morgan Emerging Market Bond Index Global Diversified (EMBIGD) is a uniquely weighted USD-denominated emerging markets sovereign index. The diversification methodology limits the weights of the larger index countries by only including a specified portion of those countries' eligible face amount outstanding, thus reducing single issuer concentration and providing a more even distribution of weights.
  • The J.P. Morgan CEMBI Broad Diversified Index (CEMBIB Div) tracks the performance of US dollar-denominated bonds issued by emerging market corporate entities. The diversification methodology limits the weights of the larger index countries by only including a specified portion of those countries' eligible face amount outstanding, thus reducing single issuer concentration and providing a more even distribution of weights.
  • The J.P. Morgan Emerging Market Bond Index Global Diversified (GBI-EM Gl Div) is a uniquely weighted local currency denominated emerging markets sovereign index. The diversification methodology limits the weights of the larger index countries by only including a specified portion of those countries' eligible face amount outstanding, thus reducing single issuer concentration and providing a more even distribution of weights.

Principal Finisterre Emerging Markets Debt Total Return strategy

Emerging market debt (EMD) is rightly seen as a key provider of potentially higher yield and diversification for a global portfolio. With exposure to the world's fastest-growing economies, EMD offers investors attractive income, growth, and risk diversification. The strategy:

  • Aims to capture most of the market upside, with half the downside during major market events.

  • Helps provide potential income and capital gains across market cycles.

  • Since inception (07/01/2016), the fund has delivered on its objective and has been tested in difficult market conditions.

About Principal Finisterre

Principal Finisterre is an EMD specialized investment 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.

Citation

1 Overall Morningstar Rating™ as of June 30, 2024 reflects the I share class in the Emerging Markets Bond Morningstar Category and is out of 226 Funds. For the other time periods ratings are Class I, 3-year (4 stars/226 funds), 5-year (4 stars/207 funds), 10-year, not rated.
Disclosure

Carefully consider a fund’s objectives, risks, charges, and expenses. Contact your financial professional or visit PrincipalAM.com for a prospectus, or summary prospectus if available, containing this and other information. Please read it carefully before investing.

Investing involves risk, including possible loss of principal.

Past performance does not guarantee future results.

Emerging market debt may be subject to heightened default and liquidity risk. Investing in emerging markets has associated risks including currency risk, confiscatory taxation, nationalization of assets, possibility of expropriation, volatility, liquidity and external factors e.g. war or natural disasters. Fixed‐income investment options are subject to interest rate risk, and their value will decline as interest rates rise.

Class I shares are available only to eligible investors, including various institutional investors and investors in certain mutual fund wrap or asset allocation programs.

Third party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation.

Morningstar Ratings

The Morningstar Rating™ for funds, or “star rating,” is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar risk-adjusted return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Morningstar ratings do not reflect the inclusion of sales charges. If sales charges were reflected, ratings could be lower.

© 2024 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Principal Finisterre is an investment team within Principal Global Investors.

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