EN DE
Contact Us
FairHorizon Yellow
Y9-A

Principal Global Investors Funds - Preferred Securities Fund

Global USD hybrid bonds. Active strategy with concentrated portfolio.

Das Family Office logo Download PDF

About the Fund

Data as of

Principal Asset Management is the global investment management business for Principal Financial Group, a Nasdaq listed global financial services company established in 1879. Principal AM manages over US$590bn of assets globally covering the full client spectrum and across asset classes and vehicles. Principal AM acquired Spectrum Asset Management in 2001 through its Principal Global Investors business arm.

The Principal Preferred Securities Fund is an actively managed bond strategy that invests primarily in global USD investment grade preferred and capital securities, including convertible bonds and contingent convertible bonds. The fund seeks to add value primarily through bottom-up fundamental, qualitative and quantitative analyses to company and credit selection, and top-down relative value analysis to individual security and sector selection. Its investment process involves in depth proprietary research, and strategic and disciplined portfolio construction. The fund has a concentrated portfolio of >240 holdings.

Performance

Price Performance – Maximum Period

The FairHorizon Context

Investment-Time-Horizon in years

0 - 22 - 44 - 7 7 - 1010 - 1515+
Expected long-term return
2 - 4% p.a.
Expected volatility
3 - 5% p.a.

Building Block Returns

Principal Global Investors Funds - Preferred Securities Fund

Ann. return (3-year):
8.71%
Ann. return (5-year):
3.60%
Ann. return (10-year):
5.05%
Ann. Standard Deviation (5-year):
5.69%

This fund provides an active approach to invest in the preferred and capital securities market, with a focus on USD issues.

Benchmark Returns

iShares Global High Yield Corp Bond UCITS ETF

Ann. return (3-year):
8.47%
Ann. return (5-year):
3.18%
Ann. return (10-year):
4.57%
Ann. Standard Deviation (5-year):
8.74%

FairHorizon Benchmark Returns

Dimensional Funds PLC - World Allocation 60/40 Fund

Ann. return (3-year):
12.53%
Ann. return (5-year):
6.41%
Ann. return (10-year):
—
Ann. Standard Deviation (5-year):
9.71%
Link to the Funds FairSheet

The Dimensional World Allocation 60/40 Fund is our FAIRHORIZON Yellow reference benchmark solution that has 60% global developed equities and 40% global investment grade short-to-medium maturity bonds for global high risk bonds-like or multi-asset returns and volatility.

SHARING OUR PASSION FOR INVESTMENTS FAIRSHEET™  Principal Global Investors Funds - Preferred Securities Fund  Page 1/2

Why we prefer this fund

Relevance of strategy

This fund provides an active approach to invest in the preferred and capital securities market, with a focus on USD issues.

Manager expertise

The fund is managed by Spectrum Asset Management, a US-based boutique investment team founded in 1987 by Mark Lieb to specialise in preferred and capital securities investing for institutional investors. Mark remains the CEO of Spectrum and his team retains full autonomy on the management of this fund while under the Principal AM umbrella.

Historical maximum drawdown & recovery time

Max drawdown (since inception)
-54.59%
Recovery Period
352 Days

Diversification

Credit Rating

  • A12.29%
  • Baa58.96%
  • Ba18.53%
  • Others10.22%

Sectors

  • Corporate97.86%
  • Government-Related1.44%
  • Others0.70%

Geography

  • U.S.A.34.37%
  • Canada18.24%
  • United Kingdom10.59%
  • France7.21%
  • Netherlands5.12%
  • Japan4.70%
  • Switzerland4.67%
  • Spain3.41%
  • Ireland3.15%
  • Germany2.97%
  • Sweden1.12%
  • Others4.46%