Principal launches emerging markets debt fund

Principal Global Investors, the Iowa-headquartered investment manager, has launched an emerging markets fixed income fund.

The Dublin-domiciled Ucits fund will be managed by London-based Finisterre Capital, a boutique emerging market debt specialist that is majority-owned by Principal.

The Finisterre Unconstrained Emerging Markets Fixed Income Fund will invest in emerging market fixed income, focusing on opportunities with strong income characteristics and capital appreciation potential.

Finisterre’s client base has traditionally comprised of institutional investors but this new Ucits fund vehicle allows a wider range of investors to gain exposure to the strategy.

The fund, to be co-managed by partner and chief investment officer Damien Buchet and portfolio manager Christopher Watson, will target a mix of investors in the UK, Europe, Middle East and Asia.

Buchet said: “The unconstrained framework means the fund has the freedom to invest where our convictions are strongest.

“This allows us to differentiate ourselves from benchmarked funds by effectively managing the beta across the portfolio and making strategic and opportunistic decisions on income generation and alpha.”

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