Key Facts

Index Used: Bloomberg AusBond Composite 0+ Yr Index Discretionary/Quantitative: Discretionary
Peer Group: Fixed Income - Credit FUM (millions): AU$ 188.68m
Investment Style: N/A Fund Inception Date: May 2004
Geographic Mandate: Global Latest Return Date: February 2024
Investor Type: Wholesale & Retail Status: Open
Minimum Investment: AU$ 20,000 Investment Frequency: Daily

Manager Details

Principal Global Investors manages assets for sophisticated investors around the world. The multi-boutique strategy provides a range of diverse investment capabilities, including equity, fixed income and real estate investments. Pimco also have experience in currency management, asset allocation, stable value management and other structured investment strategies through their network of specialized investment groups and affiliates.
Principal Global Investors manages assets for sophisticated investors around the world. The multi-boutique strategy provides a range of diverse investment capabilities, including equity, fixed income and real estate investments. Pimco also have experience in currency management, asset allocation, stable value management and other structured investment strategies through their network of specialized investment groups and affiliates.

Strategy Description

The Fund employs a global multi-credit fixed-income strategy that invests predominantly in a wide range of global credit securities and investments across a number of sectors, and actively manages volatility to seek to mitigate downside risk and enhance returns.

The Fund is actively managed by a specialist fixed income investment team with a focus on identifying the best sectors for investment opportunities and then within the sectors to the most attractive securities to generate the potential for both income and capital appreciation.

Active hedging is utilised to manage risks. Investments denominated in foreign currencies are hedged into Australian dollars.
The Fund employs a global multi-credit fixed-income strategy that invests predominantly in a wide range of global credit securities and investments across a number of sectors, and actively manages volatility to seek to mitigate downside risk and enhance returns.

The Fund is actively managed by a specialist fixed income investment team with a focus on identifying the best sectors for investment opportunities and then within the sectors to the most attractive securities to generate the potential for both income and capital appreciation.

Fund Fees

Management Fee: 0.8% Performance Fee: 0%
Buy Spread: 0.15% Sell spread: 0.3%
High Water Mark: No Hurdle: N/A

Fund Structure

Offshore/Onshore: Onshore Fund Structure: Unit Trust
Share Classes: AU$ Trustee/RE: Ironbark Asset Management (Fund Services) Limited
Administrator: State Street Australia Ltd Prime Broker: N/A
Custodian: State Street Australia Ltd Legal: Hall & Wilcox

Ratings & Availability

Research Ratings

Morningstar Star Rating5 stars (1 Aug 2021) LonsecRecommended (1 Aug 2021) ZenithRecommended (1 Mar 2021)

Platform Availability

BT Wrap, HUB24, Macquarie Wrap, Netwealth, Asgard, MLC Wrap, AMP MyNorth, BT Panorama, Colonial FirstWrap, Mason Stevens

Performance Review

The Principal Global Credit Opportunities Fund has a track record of 19 years and 9 months and has underperformed the Bloomberg AusBond Composite 0+ Yr benchmark since inception in June 2004, providing investors with an annualised return of 3.7% compared with the benchmark's return of 4.37% over the same period.

The Manager has delivered these returns with 3.41% more volatility than the benchmark, contributing to a Sharpe ratio which has fallen below 1 five times over the past five years and which currently sits at 0.11 since inception. The fund has provided positive monthly returns 74% of the time in rising markets and 48% of the time during periods of market decline, contributing to an up-capture ratio since inception of 46% and a down-capture ratio of 38%.

The Principal Global Credit Opportunities Fund returned -1.52% in February, a difference of -1.22% compared with the Bloomberg AusBond Composite 0+ Yr benchmark which fell by -0.3%. Over the past 12 months, the fund's best monthly return was +4.19% compared with the benchmark's best return of +3.16%, and its worst monthly return was -2.57% vs the benchmark's worst return over the same period of -1.95%.

YearJan %Feb %Mar %Apr %May %Jun %Jul %Aug %Sep %Oct %Nov %Dec %YTD %
2024-0.37-1.52NANANANANANANANANANA-1.88
20233.76-2.212.940.69-1.470.09-0.29-0.63-2.57-1.364.193.706.70
2022-3.20-1.99-1.69-5.320.51-5.493.95-2.52-6.72-0.794.31-0.16-18.08
2021-0.78-1.49-0.441.000.221.230.650.00-0.67-0.02-0.340.810.13
20202.021.91-2.804.971.521.002.28-0.62-0.02-0.431.190.2311.62
20192.680.602.321.101.112.050.522.15-0.49-0.110.130.0312.72
2018-0.57-1.49-0.49-0.390.38-0.381.230.54-0.17-0.84-0.96-0.24-3.35
20170.661.600.381.411.100.070.680.840.130.29-0.370.527.55
2016-0.65-0.173.231.460.261.911.630.85-0.27-0.44-2.280.746.34
2015-0.061.820.610.160.340.890.42-0.98-0.410.97-0.03-1.432.28
20142.082.100.361.191.020.850.601.25-0.59-0.090.28-1.158.14
2013-0.171.360.581.74-0.78-2.731.30-0.730.932.090.600.784.97
20122.561.881.011.721.550.703.210.781.631.511.010.7619.92
20112.251.640.790.540.95-0.710.00-2.27-1.471.77-1.391.974.02
20101.950.921.721.25-1.68-0.301.800.741.991.381.161.9513.59
20092.15-5.521.355.176.082.664.032.274.041.541.202.1230.12
20080.59-1.34-2.502.150.85-2.02-0.79-0.15-6.40-9.84-12.85-3.63-31.41
20070.840.180.460.390.63-0.54-1.81-2.30-0.010.52-2.72-0.46-4.79
20060.980.900.870.100.400.250.720.750.540.660.690.958.10
20050.381.09-0.440.190.520.801.080.530.750.540.230.626.46
2004NANANANANA1.181.390.810.600.601.220.656.63

Only seven years of data shown. Click here to view all data.

Annual Returns

Over the past 12 months, the fund has risen by +3.17% compared with the benchmark which has returned +3.51%, for a difference of -0.34%. Since inception in June 2004, the fund has returned +3.7% per annum, a difference of -0.67% relative to the benchmark which has returned +4.37% on an annualised basis over the same period.

Cumulative Returns

On a cumulative basis (assuming reinvestment of distributions), $100 invested since inception would have become $204. The same amount invested in the benchmark over the same period would have become $232.

Annual Returns %

 
 

Volatility and Risk

Annual Standard Deviation

The fund's returns over the past 12 months have been achieved with a volatility of 7.27% vs the index's 6.08%. The annualised volatility of the fund's returns since inception in June 2004 is 7.09% vs the index's 3.68%. Over all other periods, the fund's returns have been more volatile than the benchmark.

Sharpe Ratio

The fund's Sharpe ratio has ranged from a high of -0.03 for performance over the most recent 60 months to a low of -0.72 over the latest 24 months, and is 0.11 for performance since inception. By contrast, the Bloomberg AusBond Composite 0+ Yr Index's Sharpe for performance since June 2004 is 0.34.

Annual Standard Deviation

 

Sharpe Ratio

 

Performance in Positive Markets

Since inception in June 2004 in the months where the market was positive, the fund has provided positive returns 74% of the time, contributing to an up-capture ratio for returns since inception of 46.34%. Over all other periods, the fund's up-capture ratio has ranged from a high of 113.53% over the most recent 24 months to a low of 95.95% over the latest 36 months. An up-capture ratio greater than 100% indicates that, on average, the fund has outperformed in the market's positive months.

Performance in Negative Markets

Since inception in June 2004 in the months where the market was negative, the fund has provided positive returns 48% of the time, contributing to a down-capture ratio for returns since inception of 37.91%. Over all other periods, the fund's down-capture ratio has ranged from a high of 136.18% over the most recent 24 months to a low of 99.97% over the latest 12 months. A down-capture ratio less than 100% indicates that, on average, the fund has outperformed in the market's negative months.

Average Return in +ve Market %

 

Average Return in -ve Market %

 

Sortino Ratio

The fund's Sortino ratio (which excludes volatility in positive months) has ranged from a high of -0.09 for performance over the most recent 60 months to a low of -0.93 over the latest 24 months, and is 0.09 for performance since inception. By contrast, the Bloomberg AusBond Composite 0+ Yr Index's Sortino for performance since June 2004 is 0.47.

Drawdown

Over the past 12 months, the fund's largest drawdown was -6.1% vs the index's -5.2%, and since inception in June 2004 the fund's largest drawdown was -38.53% vs the index's maximum drawdown over the same period of -13.2%.

Sortino Ratio

 

Drawdown%

 
Fund Index Peer group

Quintile Ranking vs. Average Fixed Income - Credit as of February 2024

The Principal Global Credit Opportunities Fund is not ranked in the first or second quintile for any KPI.

Over the past 12 months, the fund has risen by +3.17% compared with the peer group which has returned an average of +7.53%, for a difference of -4.36%.

The fund's returns over the past 12 months have been achieved with a volatility of 7.27% vs the peer group's average volatility of 2.22%. The annualised volatility of the fund's returns since inception in June 2004 is 7.09% vs the peer group's 5.22%. Over all other periods, the fund's returns have been more volatile than the peer group.

1 Year
3 Year
5 Year
7 Year
Principal Global Credit Opportunities Fund
RBA Cash Rate + 5%
Quintile Rankings display Key Performance Indicators (KPI's) against the fund's Peer Group. Each green square ranks the fund in one quintile (or 20%) of its peer group - five green squares indicate the fund is in the best quintile for each KPI. The performance of the peer group's underlying index is shown by a red dot.