13 Nov 2018

Principal Global Perspectives: Looking at geopolitical risks

Table of Contents: 

Geopolitical risk affects markets, investment decisions, and the global economy. Some main concerns for investors surround the increasingly uncertain outcome of Brexit negotiations, the potential for fragmentation in the European Union, and impact from the recent US midterm elections. All have the potential to shake investor confidence and economic growth.

The experts at Principal Global Investors discuss these concerns, the likelihood that they will escalate further, and what investors need to know.

Brexit negotiations

Seema Shah, senior global investment strategist, Principal Global Investors

Brexit deadlines get serious in 2019, and investors and businesses are still unclear about what to expect or how to prepare. Seema Shah discusses potential scenarios, what to watch for at the end of 2018, and what might be in store for investors and the global economy.

A fragmented Europe

Binay Chandgothia, managing director & portfolio manager, Principal Portfolio Strategies

The grand European project has been increasingly called into question. If the economic and political union fragments, European growth could suffer, and the risk of conflict could rise. Binay Chandgothia talks about the future of Europe’s economy and what investors can expect to see.

US midterm elections

Bob Baur, chief global economist, Principal Global Investors

The US midterm elections delivered control of the House of Representatives back to Democrats beginning in 2019. What could the new dynamic in Washington D.C. mean for US economic growth and financial markets? Find out as Bob Baur discusses his views on the meanings and repercussions for investors.


Unless otherwise noted, the information in this document has been derived from sources believed to be accurate as of November 2018. Information derived from sources other than Principal Global Investors or its affiliates is believed to be reliable; however, we do not independently verify or guarantee its accuracy or validity. This material contains general information only and does not take account of any investor’s investment objectives or financial situation and should not be construed as specific investment advice, recommendation or be relied on in any way as a guarantee, promise, forecast or prediction of future events regarding an investment or the markets in general. The opinions and predictions expressed are subject to change without prior notice. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security, nor an indication that Principal Global Investors or its affiliates has recommended a specific security for any client account.

Subject to any contrary provisions of applicable law, Principal Global Investors and its affiliates, and their officers, directors, employees, agents, disclaim any express or implied warranty of reliability or accuracy and any responsibility arising in any way (including by reason of negligence) for errors or omissions in this document or in the information or data provided in this document.

Past performance is no guarantee of future results and should not be relied upon to make an investment decision. Investing involves risk, including possible loss of principal. All figures shown in this document are in US dollars unless otherwise noted.

This document is issued in:
•The United States by Principal Global Investors, LLC, which is regulated by the US Securities and Exchange Commission.
•Europe by Principal Global Investors (Europe) Limited, Level 1, 1 Wood Street, London EC2V 7JB, registered in England, No. 03819986, which has approved its contents, and which is authorized and regulated by the Financial Conduct Authority. In Europe, this document is directed exclusively at Professional Clients and Eligible Counterparties and should not be relied upon by Retail Clients (all as defined by the MiFID). Principal Global Investors is a global asset management company and strategies may be accessed from entities other than that which is issuing this document. Clients that do not directly contract with Principal Global Investors (Europe) Limited (“PGIE”) will not benefit from the protections offered by the rules and regulations of the Financial Conduct Authority, including those enacted under MiFID II. Further, where clients do contract with PGIE, PGIE may delegate management authority to affiliates that are not authorised and regulated within Europe and in any such case, the client may not benefit from all protections offered by the rules and regulations of the Financial Conduct Authority, including those enacted under MiFID II.
•Singapore by Principal Global Investors (Singapore) Limited (ACRA Reg. No. 199603735H), which is regulated by the Monetary Authority of Singapore and is directed exclusively at institutional investors as defined by the Securities and Futures Act (Chapter 289).
•Australia by Principal Global Investors (Australia) Limited (ABN 45 102 488 068, AFS License No. 225385), which is regulated by the Australian Securities and Investment Commission and is only directed at wholesale investors (as defined in sections 761G and 761GA of the Corporations Act).
•This document is issued by Principal Global Investors LLC, a branch registered in the Dubai International Financial Centre and authorized by the Dubai Financial Services Authority as a representative office and is delivered on an individual basis to the recipient and should not be passed on or otherwise distributed by the recipient to any other person or organization. This document is intended for sophisticated institutional and professional investors only.
•Switzerland by Principal Global Investors (Switzerland) GmbH which is authorized by the Swiss Financial Market Supervisory Authority (“FINMA”).
•India by Principal Asset Management Private Limited (Formerly known as Principal Pnb Asset Management Company Private Limited). PPAMC offers only the units of the schemes of Principal Mutual Fund, a mutual fund registered with SEBI.
•Hong Kong by Principal Global Investors (Hong Kong) Limited, which is regulated by the Securities and Futures Commission and is directed exclusively at professional investors as defined by the Securities and Futures Ordinance

This material is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation.

Expressions of opinions, predictions and other forward-looking statements regarding future events are accurate as of the date of this communication and are subject to change without notice. There is no assurance that such events or prospections will occur, and actual conditions may be significantly different than that shown here. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

©2018 Principal Financial Services, Inc.
Principal, Principal and the symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group. Principal Global Investors is the asset management arm of the Principal Financial Group.

11/2018 | 658225-112019