The Pioneer Sicav-Absolute Return Bond fund, managed by Tanguy Le Saout and Cosimo Marasciulo, aims to beat the sterling overnight index average rate by 4%. The fund managers are also drawing on the expertise of the firm’s European fixed income and credit teams.
The portfolio primarily holds investment grade bonds, with a core set of holdings alongside what the fund managers hope are alpha generating strategies. Investment ideas in the fund are generated by a team of analysts, each of whom is responsible for a specific area of fixed income under the group’s proprietary ‘Matrix’ investment structure.
David Hanratty, head of UK and Ireland distribution at Pioneer, noted that rising yields and falling bond prices are becoming a reality, and investors should be looking at more innovative approaches. “The real question here is the timing and pace at which they will rise. We believe that investors now need to consider new approaches to fixed income investing, stepping away from traditional mandates.”
A euro version of the fund was launched in 2008 and has been managed using the Matrix approach since 2010. Figures from Bloomberg show the fund has returned 1.6% over the year to 13 January.
