The Principal Global Multi-Strategy Fund (PMSAX) invests in alternative strategies to achieve long-term capital appreciation with an emphasis on positive total returns and relatively low volatility.
The fund, launched October 24, combines multiple alternative strategies and specialist subadvisers to offer diversification by both strategy and manager. Principal Funds is collaborating with Cliffwater, Inc., a hedged-strategies consultant, to aid in portfolio design, strategy selection and risk management. Additional subadvisors for the fund include:
- AQR Capital Management; CNH Partners – multi-strategy
- PIMCO – multi-strategy (fixed income)
- Wellington Management – equity long/short (fundamental approach)
- Los Angeles Capital – equity long/short (quantitative approach)
- Loomis Sayles – credit long/short
Also available from Principal is a new white paper that outlines how alternative strategies may be used to address market risk. The paper takes a current and historical look at equity market volatility and addresses the role of alternative strategies within an asset allocation strategy. It also includes a set of questions for financial professionals and their clients to review when building or evaluating an investment strategy.
The Principal Global Multi-Strategy Fund is the third in a series of funds designed to provide outcome-oriented solutions for financial professionals and their clients. The Principal Global Diversified Income Fund (PGBAX), launched December 15, 2008, focuses on income generation. Launched March 16, 2010, the Principal Diversified Real Asset Fund (PRDAX), seeks to help manage the impact of inflation on purchasing power. For more information on these funds, visit https://www.principalfunds.com/investor/funds/specialty.htm.