Principal employs a rigorous and disciplined global investment process that is highly risk-conscious and seeks to add incremental value from a broadly-diversified bond portfolio. We place great emphasis on top-down, macro strategies and also employ in-depth credit research on individual stocks/bonds combined with active asset and sector rotation.
A bond portfolio has historically been shown to produce less volatile returns than riskier asset classes, such as equities, over long investment periods and should generate a relatively stable and secure income stream.
We use our experience and technical knowledge of global government bonds, investment grade corporate bonds and inflation-linked bonds to construct suitable bond portfolios on behalf of our clients, within agreed guidelines.
We can build portfolios that target the production of a higher regular income, that aim to match client liabilities or that augment growth through the reinvestment of income payments.
For more information on bonds, please find some useful links below:
http://www.bankofengland.co.uk/
http://www.federalreserve.gov/
http://www.ecb.int/home/html/index.en.html
http://europe.wsj.com/home-page
Investment views
Latest bond factsheet"In our view, an investor looking for income or capital and income growth with less risk than equities should allocate a reasonable amount of their overall assets to fixed income investment, particularly in uncertain times, as such an investment can offer an attractive and more stable income stream than many asset classes. A bond portfolio can also outperform other asset classes in times of risk aversion as well as low economic growth."
Craig Veysey CFA, Bond team.
