PRINCIPAL FINISTERRE EMERGING MARKETS DIVERSIFIED INCOME ETF (USD) EMDI.US

The fund is an actively managed ETF whose objective is to provide current income and potential for capital appreciation by investing primarily in fixed-income securities tied economically to emerging markets.

Under normal circumstances it allocates at least 80% of its net assets, plus any borrowings for investment purposes, to emerging markets debt securities. It invests in a broad range of fixed-income instruments including sovereign, quasi-sovereign, and corporate issuers.

It may also invest in convertible bonds, credit- and index-linked securities, restricted securities (such as those under Rule 144A and Regulation S), securities of distressed or bankrupt issuers, and U.S. government or U.S. government-sponsored enterprise instruments.

The fund is managed by Principal Global Investors through its Specialist Emerging Markets team, Principal Finisterre. It is an exchange-traded fund organized under the U.S. investment-company regulatory framework (i.e. a 1940 Act fund).

The approach is "unconstrained" in that it employs active, discretionary positioning across the emerging markets debt universe, with top-down and bottom-up sovereign and corporate research, and flexibility across sectors, geographies, and credit types.