Principal Funds has launched the Principal Global Multi-Strategy Fund, which will invest in alternative strategies through specialist sub-advisors to provide income, while combating inflation and market volatility.
“Investors today face many portfolio risks, some very familiar, like risk associated with market volatility,” said Mike Finnegan, portfolio advisor and chief investment officer of Principal Funds.
“With the market’s continuing volatility, it’s clear that traditional investment strategies aren’t always enough to provide desired returns while managing portfolio risk. We believe alternative strategies allow us to take advantage of market opportunities wherever and whenever they occur,” Finnegan added.
Principal is collaborating with Cliffwater, a consultant on hedged strategies, on the portfolio design, strategy selection and risk management of the fund.
The sub-advisors include: AQR Capital Management, CNH Partners, PIMCO, Wellington Management, Los Angeles Capital, and Loomis Sayles.
The new fund is complementary to three other Principal funds with the same goals, the company said: the Principal Global Diversified Income Fund, the Principal Diversified Real Asset Fund and the Principal Funds Specialty Funds.
-- This article first appeared on Money Management Executive.