Principal invests in emerging market fixed income opportunities
(Des Moines, Iowa and London, United Kingdom)—Principal Global Investors announced today that it will align the emerging market fixed income capabilities within Finisterre Capital and Principal Global Fixed Income to meet growing client demand today and fuel future product development.
“For investors looking for income, emerging markets represent a critical opportunity across asset classes as these geographies are experiencing significant demographic change and economic growth,” said Pat Halter, president and CEO of Principal Global Investors. “As a combined emerging market fixed income team, we will be set up for greater collaboration between investment teams, leading to more innovative solutions to meet client needs.”
As part of the alignment, Principal will acquire the remaining stake in Finisterre Capital. Principal has had a majority stake in Finisterre since 2011. The investment process and teams for Finisterre and Principal Global Fixed Income remain unchanged.
“Together, our teams will manage more than $7.6 billion in assets1 and cover the full spectrum of emerging market fixed income solutions to meet investors’ needs through varying market cycles,” said Halter.
Collectively, Principal will be well-positioned to serve a diverse client base with several investment styles across the emerging market fixed income universe which is estimated at more than $20 trillion2 and growing. This includes income solutions, liquid alternatives and alternative strategies.
1 As of 9/30/19
2Total includes local and hard currency sovereign, quasi-sovereign and corporate debt. Source: J.P. Morgan, Bloomberg. Data as of August 30, 2019
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