Principal Asset Management Launches Active Emerging Markets Bond ETF (EMDI) Targeting High-Yield Income

Principal Asset Management has launched the Principal Finisterre Emerging Markets Diversified Income ETF (EMDI), an actively managed fund seeking income opportunities across emerging and frontier market debt. The ETF invests at least 80% of its assets in emerging market securities, including sovereign, quasi-sovereign, and corporate bonds. EMDI has a flexible mandate spanning investment-grade and high-yield debt, distressed securities, convertible bonds, and multiple currencies, with no minimum credit rating or maturity restrictions. The strategy employs a top-down investment approach, combining macroeconomic, geopolitical, fundamental, and technical analysis to identify opportunities across countries and credit markets. The fund may also use derivatives, including currency forwards, futures, options, and swaps, to enhance returns and manage risk, offering investors diversified exposure to emerging market fixed income.