Long Duration Fixed Income Credit Emphasis

Overview

The Long Duration Fixed Income Credit Emphasis strategy invests in a broad array of high-quality, long-duration fixed income securities, with an emphasis on corporate credit. The average duration is typically between 10 and 15 years.

 

Why choose this investment strategy?

Led by portfolio managers that average more than 20 years of investment experience, our Long Duration Fixed Income Credit Emphasis strategy offers:

•    Access to long-duration bonds: Our specialized investment management group is the right size to meet the growing demand for (and limited supply of) longer-duration assets. We’re big enough to get a significant amount of new bond deals, but not so big that allocations are too small when divided among our investors.
 
•    Corporate credit emphasis: With decades of expertise as a global credit specialist—we’ve been conducting independent credit research since 1965 —Principal Global Fixed Income offers a multi-dimensional approach to long-duration investing. We move beyond traditional duration management to integrate dynamic asset allocation with active credit management, driving alpha and helping to meet target portfolio yield.

•    Customized solutions focused on matching liabilities: Our customized solutions can meet your liability-matching investment needs, no matter how complex. Choose from flexible solutions including traditional long duration, core/satellite, and glidepath, a comprehensive liability-driven investing strategy that gradually matches your assets with liabilities as part of dynamic asset allocation.

 

Where Long Duration Fixed Income Credit Emphasis invests:

The strategy typically invests across a range of sectors, including government securities (Treasurys/agencies), investment grade corporate, high yield, securitized assets, and emerging market debt. 

Our investment style is deeply rooted in fundamental research, guided by our proprietary FTV (fundamental, technical, and valuation) research framework. Combined with our macro perspective and disciplined risk management, this allows us to build portfolios that provide multiple sources of alpha.