Pioneer Investments has launched an Emerging Markets Bond Short-Term strategy, aimed at offering a strategy to respond to the prospect of rising interest rates.
The new strategy will be managed by Pioneer Investments’ Emerging Market Fixed Income team under the direction of lead Portfolio Manager Yerlan Syzdykov, who has managed Emerging Market Debt portfolios at Pioneer Investments since 2000.
The strategy employs a similar fundamental top down, bottom up approach investment approach to the existing Emerging Markets Fixed Income range, seeking to exploit the increasing divergence in emerging markets economic performance with an annual return of 4%.
‘’Emerging Markets remain one of the most dynamic areas in the investable universe,’’ said Yerlan Syzdykov (pictured), head of Emerging Markets Bond and High Yield at Pioneer Investments, ‘’but the “Taper Tantrum” in May 2013 demonstrated the impact on Emerging Markets Fixed Income as a result of U.S. interest rate expectations.’’
‘’Short Term Emerging Market Bonds are less sensitive to changes in both domestic and developed world interest rates ‘’ said Syzdykov, ‘’and can provide investors with the yield from Emerging Markets with less of the volatility associated with longer duration Emerging Market Bonds.’’
The London-based emerging markets bond team currently has around €8.3 bn in assets under management.