Pioneer Investments Friday announced the launch of two new funds, the Pioneer Absolute Return Credit Fund and the Pioneer Multi-Asset Floating Rate Fund.
“Investors are looking for new, innovative ways to diversify their fixed income portfolios that allow them to address the growing risks in fixed income markets associated with volatility and the inevitability of rising interest rates,” said Kenneth J. Taubes, U.S. chief investment officer of Pioneer. “Both of our new funds offer solutions for these concerns through flexible investment strategies.”
The Absolute Return Credit Fund is Pioneer’s first U.S. absolute return fund. It will invest in a broad spectrum of credit instruments globally, using multiple hedging techniques to manage cyclical market volatility.
“While many absolute return funds focus on total return, our fund’s flexible mandate allows us to generate income while hedging against market volatility in an effort to achieve positive returns over market cycles,” said Michael Temple, head of credit research and a member of the fund’s portfolio management team. “One of the unique features of this fund is our ability to use different techniques to attempt to protect fund assets during extreme ‘black swan’-type market events.”
The Multi-Asset Floating Rate Fund seeks to address the challenges posed by rising interest rates, potential inflation and volatility by investing in a wide range of securities. Its main focus is on U.S. dollar-denominated securities including mortgage-backed, asset-backed and U.S. government securities, as well as corporate bonds, bank loans and event-linked bonds.
“What sets this fund apart is its flexibility to invest in a wide range of floating rate instruments globally, a focus on short durations of one year or less and a bias towards high-quality securities,” said Charles Melchreit, a portfolio manager and member of the team managing the fund.