Focus on corporate bonds – Pioneer launches Emerging Markets Corporate High Yield Bond
Pioneer Investments has announced today the launch of its Emerging Markets Corporate High Yield Bond, a fund designed to enable investors to take advantage of the higher growth and superior yield available in the niche corporate high yield segment of Emerging Markets.
The fund will be managed by Greg Saichin (pictured), head of emerging markets & high yield fixed income portfolio management, supported by a team of in-house bottom-up credit research analysts looking for unique, high conviction investment opportunities, beyond traditional benchmark constraints, Pioneer said.
Key features of the fund are high income, with attractive income potential via exposure to selected emerging market high yielding corporates offering compelling fundamentals, proprietary research focused on exploiting best opportunities while managing default risk and an underinvested story, as emerging markets make up about 40% of world GDP, while EM bonds represent and 20% of global bond market capitalization.
“The fund offers investors unique exposure to a growing asset class. All it takes is a little growth for us to seize higher quality returns with lower volatility. The asset class profits from credit convergence in the long term whilst having the benefit of higher yields short term. We aim to take full advantage by combining it with our bond selection capability,” Saichin said.