Pioneer Investments has launched the Optimal Yield Short-Term strategy, a new fixed income fund which aims to optimize yield by investing in a flexible and unconstrained manner subject to the maximum duration constraint of three years.
The fund, managed by Colm D’Rosario, lead portfolio manager, and Paolo Pennati, portfolio manager, uses its flexibility to aim to invest in fixed income investment opportunities across regions, sectors and credit ratings.
It employs a multi-tier investment process, seeking to add value through multiple sources including asset allocation, security selection and tactical overlays. The risk profile of the strategy can be adapted to suit both the economic cycle and future market conditions.
“In a low/negative yield environment, we believe that investors need to take a fresh approach as to how they generate income and seek investment opportunities,” said Mauro Ratto, head of Emerging Markets.
“A flexible unconstrained approach can offer greater potential to generate income by investing in the most attractive short duration opportunities irrespective of geography, sector or credit rating.
“Furthermore, investment in short duration securities can offer a less volatile investment, reducing the likelihood of capital impairment from a rising rate environment,” Ratto said.