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market strategies
2Q 2024
Seeking income & optimizing yield
Record cash
Attractive yield
Strategic income opportunities for portfolios
Investors today hold a record $6.8 trillion USD in money market funds—nearly three times more than a decade ago. However, putting that cash to work in portfolios may be a timely idea.
High yields across fixed income and equities may offer investors meaningful ways to generate income in portfolios.
Seeking an income stream with future growth potential
Securities with adjustable rates—such as preferred securities—and stocks that can both maintain and potentially increase dividends offer two key benefits: current income and future income growth. This dual approach to income generation can help investors protect purchasing power and defend against inflation by providing both immediate cash flow and the possibility of higher payments over time.
Optimizing yield through risk assets
Elevated yields coupled with robust fundamentals are creating an entry point for risk assets like high yield bonds and emerging market debt (EMD). Putting cash to work in these areas of the market may improve the likelihood that investors meet their current income needs.
investment strategies
Timely reasons to put cash to work
Discover expert insights on managing portfolios, fighting inflation, and building sustainable income in today's dynamic market environment.
01
Global central bank policy may enhance fixed income returns.
Expand credit horizons to emerging markets
02
Higher yield in preferred securities may help outpace inflation.
Improve income possibilities with preferred & capital securities
03
Strong credit fundamentals and robust balance sheets reduce corporate refinancing risks.
Optimize yield potential with high yield
Expert insights: Seeking income & optimizing yield
Recently, our investment experts revealed what they’re looking for when offering guidance to income-seeking investors.
Our experts
Michael Goosay,
Chief Investment Officer,
Global Fixed Income
Sarah Radecki, CFA,
Portfolio Manager,
Equities
Seema Shah,
Chief Global Strategist
solutions
Actively-managed mutual funds & ETFs
High yields across fixed income and equities attempt to offer investors meaningful ways to put cash to work generating income in portfolios. Explore our solutions below.
Asset class
Product
High yield bonds
Emerging market debt
Principal Finisterre Emerging Markets Total Return Bond Fund
Adaptable, unconstrained portfolio able to navigate market cycles and allocate across the full spectrum of EMD opportunities.
Large-cap equities
Principal Equity Income Fund
A quality-first mentality removes subpar large-cap operators, helping to avoid value traps.
Preferred & capital securities
Principal Spectrum Preferred Securities Active ETF
Dedicated exposure to $1,000 par preferred securities from a renowned team of industry experts.
High yield bonds
Principal Active High Yield ETF
High conviction, high yield portfolio aiming to deliver attractive yield while managing volatility.
Small- & mid-cap equities
Principal Small-Midcap Dividend Income Fund
A quality-first mentality removes subpar mid- and small-cap operators, helping to avoid value traps.
Preferred & capital securities
Emerging market debt
Large-cap equities
Small- & mid-cap equities
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CIO insights: 2025 outlook for fixed income investors
Michael Goosay, CIO and Global Head of Fixed Income, addresses six timely topics shaping fixed income markets, including the impact of inflation on portfolios.
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View video transcript
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For more than a century, Principal has helped individuals confidently reach their goals. Established in 1994, Principal Asset Management is the investment management business for Principal Financial Group®.
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