NEI Investments (NEI) has signed of a new investment management agreement with Principal Global Investors (PGI) of Des Moines, Iowa.
PGI assumed sub-advisory responsibilities for NEI Northwest Specialty High Yield Bond Fund and NEI Northwest Specialty Global High Yield Bond Fund (as of May 8.
PGI is a multi-boutique firm currently managing over US$340 billion of assets on behalf of a broad range of sophisticated investors. The funds will be managed by Principal Global fixed income, a specialized investment management group within PGI that focuses on providing customized and yield-oriented investment solutions for clients worldwide. The overall objectives of the funds will not change. However, over time the portfolios will transition to reflect PGI’s approach to generating excess returns and managing risk.
“Principal Global Investors’ corporate structure was of great appeal to us,” says Daniel Solomon, chief investment officer, NEI. “The multi-boutique approach allows the high yield team to really focus on their area of expertise while leveraging the extensive research capabilities of Principal Global Investors. They have a strong, stable and experienced portfolio management team that is focused on delivering superior results for long term investors.”
“Our high yield team utilizes a team-based approached,” said Josh Rank, portfolio manager, Principal Global fixed income. “Our investment philosophy is designed to provide consistent returns above the high yield market through rigorous fundamental research with a global perspective, well-defined exit strategies, and dynamic risk management.”
Also effective May 8, NEI’s in-house investment team became responsible for the tactical asset allocation decisions of NEI Northwest Tactical Yield Fund (the underlying fund of NEI Northwest Tactical Yield Corporate Class). The change reflects NEI’s enhanced in-house management capabilities and is consistent with the company’s approach to fund-of-fund solutions. The NEI investment team also oversees asset allocation decisions within NEI Select and NEI Ethical Select Portfolios, and manages NEI Global Strategic Yield Fund.
In addition to this change, one of the portfolio sub-advisors to NEI Northwest Tactical Yield Fund will change to Guardian Capital LP. Guardian will manage the Canadian fixed income portion of the fund.
NEI Investments, which is owned 50% by the Provincial Credit Union Centrals and 50% by Desjardins Group, has offices in Toronto, Vancouver and Montreal.