Continued shift in fixed income investor appetite spotted by Pioneer
Pioneer Investments has said that 75% of its year-to-date fixed income investments have flowed to high yield, emerging market debt, and flexible income products.
Sandro Pierri, CEO of Pioneer Investments (pictured) said that the prolonged low interest-rate environment has increased the need for yield.
“The so-called safe government bonds at the current yield levels are just not luring investors. Against this backdrop, flexible bond strategies, which give the opportunity to invest in multiple sectors of the fixed income market, have been particularly appealing for our clients. We believe they are well suited for investors searching for higher yield, without dramatically increasing their risk profile, as result of a diversified approach and a strong risk management framework.”
Pioneer said the trend in appetite for certain fixed income products was seen across different markets and geographies, such as Asia, Latin America, Germany, France and Spain.