Global High Yield
The Global High Yield strategy invests in high yield corporate bonds of primarily U.S.- and European-based companies, with a focus on income and capital appreciation coming mostly from security selection.
Why choose this investment strategy?
Our high yield team of portfolio managers and analysts averages nearly two decades of industry experience. Guided by their combined expertise, our Global High Yield strategy offers several benefits:
• A blended investment approach: Rooted in bottom-up security selection, we go beyond typical bottom-up high yield investing to incorporate key macroeconomic factors that have potential to drive performance. Using our internal framework that focuses on fundamental, technical, and relative value research, we’re able to take a forward-looking view and identify investment choices that strictly bottom-up managers might miss.
• An integrated, specialized team: Our high yield team doesn’t operate in a vacuum. As an integrated part of our broader Principal Global Fixed Income credit team, we draw from the specialized knowledge of our locally based team members to find non-U.S. opportunities. The result is diversified portfolios that can be customized to your investment needs and goals.
• Explicit risk controls: We use pre-set security and portfolio risk controls, and define clear exit strategies before investing in a credit. These dynamic risk measures allow us to help limit risk when needed, and increase risk when warranted.
Where Global High Yield invests:
The strategy’s portfolios are broadly diversified across industries and individual companies, primarily in the United States and Europe, and help to avoid unnecessary concentration or liquidity risk.
Our investment style is deeply rooted in fundamental research, which drives our decision-making process. Using our proprietary FTV (fundamental, technical, and valuation) research framework, we create a stable, repeatable, and unemotional investment foundation that delivers consistent portfolios for up and down markets.