Principal Global Investors is offering investors a Dublin-domiciled Strategic Fixed Income fund. The...
Principal Global Investors is offering investors a Dublin-domiciled Strategic Fixed Income fund. The product investment objective is to achieve a return for investors of 3% pa gross in excess of the three-month Libor rate over a three-year period.
The minimum investment for the fund is $10,000 or the sterling or euro equivalent. The product has no initial charge and an annual management fee of 1.15%. Intermediary commission is negotiable.
Rob da Silva, Zeid Ayer and Craig Dawson co-manage the portfolio, using Principal's affiliates the Post Advisory Group and Spectrum Asset Management to help choose positions.
Post Advisory Group advises on high-yield securities and Spectrum Asset Management helps choose the preferred securities sectors. Principal will recommend all other fixed income securities available globally. These include investment grade corporates, structured debt, commercial mortgage-based securities, asset-backed securities, emerging markets debt and hybrids.
Fixed interest securities selected for the portfolio will have a duration of up to one-and a-half-years, although there will be an upper limit of three years in order to target low volatility.
The fund is based on a strategy developed for the Australian market. Grant Forster, chief executive of Principal Global Investors, said: "There will always be a need for income and, in the current environment of low interest rates and a return to rising inflation, we are experiencing a greater demand for investment products that can generate higher yields.
Principal launches Dublin-based Strategic Fixed Income fund
Product based on a strategy developed for Australian market
Target return is 3% over Libor
Two global vehicles
'Further plug advice gap'
Must appoint separate CEOs and boards
Advisers do come out well
Will report to Mark Till