Pioneer launches ‘go-anywhere’ fund

Pioneer Investments, the fund management arm of Italian banking group UniCredit, has launched a fund aiming to protect against inflation and preserve capital.

Pioneer Investments has launched Pioneer Funds – Multi Asset Real Return, a global, dynamic and flexible approach to pursuing consistent returns. In a statement, Pioneer said: “The fund should allow investors the opportunity to be rapidly exposed to best-in-class high conviction bets, whilst aiming to protect them against market volatility via diversification in smaller positions across low correlated asset classes.”

The fund is domiciled in Dublin and a mirror of a US-domiciled version, and shares a team of fund managers. Led by Michele Garau as lead portfolio manager, together with Kenneth Taubes, head of investment management US, and Howard Weiss, associate portfolio manager, the team is backed by the extensive global research and investment capabilities across Pioneer Investments.

“The current investment landscape is demanding more flexible approaches from investment managers to manage market volatility, protect against inflation and preserve capital,” Pioneer said in a statement.

The portfolio management team select the optimal mix of assets for portfolio inclusion, based on their evaluation of economic growth and inflation levels. The fund is not constrained by single asset classes to hedge inflation, but can gain exposure to a broad spectrum of traditional financial securities and real assets through closed end funds. The portfolio management team can rapidly position the fund for changing market environments, significantly and substantially exploiting the most attractively valued assets and sectors opportunistically. The Fund’s “go-anywhere” approach provides a more diversified, inflation-hedge complement.

Kenneth J. Taubes, US chief investment officer and one of three portfolio managers on the fund, said: “We believe that the flexible, dynamic approach to asset allocation we use in this fund offers an advantage over a more limited inflation hedging strategy focused largely on TIPS. What we seek to do is protect purchasing power over the course of an economic cycle by investing in a wide range of asset classes that may have low correlations to each other and to the broader equity and bond markets.”

“In addition to protecting investors against inflation movements, this fund also has the proposition of defending investors assets against an eventual rise in interest rates which could adversely affect the value of fixed income investments. We believe that for many investors this fund may be a better alternative to managing inflation risk than owning a single asset class,” Taubes concluded.

Pioneer Investments has €160,319m of total assets under management as at 30 November 2011.

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