Pioneer Investments’ Emerging Markets fixed income range reached a record level of AUM this month, as a result of strong performance combined with record net sales in excess of €1.5bn so far this year.
According to Morningstar mutual fund flows data, the company ranks 5th in Europe in terms of Emerging market fixed income flows YTD, and 3rd for its flows in same category over the past three years.
Emerging markets are one of the few global fixed income classes that still has the potential to offer access to real (above the level of inflation) rates and real yields, Pioneer said.
In addition, over the last several years, the emerging market credit arena has become an important source of return for global investors, because it has the potential to help investors access more discrete risk versus comparable sovereign yield, asset manager of Italy’s Unicredit added.
The Emerging Markets Bond flagship strategy, managed by Yerlan Syzdykov, head of Emerging Markets Bond and High Yield, attracted €992.9m inflows so far this year, reaching an overall AUM of €3.7bn in October.
The Emerging Markets Bond Short-Term strategy which launched just over a year ago, in June 2015, reached €753m in AUM this month, having garnered €411.6m in net sales since January.
Lastly, the Emerging Markets Corporate Bond fund doubled in size over the past nine months, reaching €288.7m this month. Collectively, Pioneer Investments manages over €14bn in emerging market fixed income portfolios.
The London-based EM Fixed Income team consists of eight portfolio managers, whose investment philosophy is conviction based. They follow a highly active, flexible and research-driven process supported by 13 team members of EM, High Yield and European credit research.
“The EM fixed income universe has witnessed material growth since the 2008 financial crisis. Spurred on by lower sovereign debt levels and high macroeconomic growth rates, the asset class has experienced a substantial market deepening. Credit market issuance, in particular, has doubled, and the value of credit now exceeds that of sovereign debt in the EM,” Syzdykov said.