The Amundi Pioneer Core Fixed Income Strategy seeks to add value relative to a broad market index such as the Bloomberg Barclays US Aggregate by focusing on bond selection and sector rotation with limited duration exposure relative to the benchmark.
Multi-Sector Fixed Income
The Core Fixed Income portfolios will typically hold lower allocations to government bonds and higher allocations to the non-government sectors (corporate bonds, agency mortgage-backed securities, commercial mortgage-backed securities, asset-backed securities, and non-agency mortgage-backed securities) relative to the Bloomberg Barclays US Aggregate index. This is for two reasons (1) The non-government sectors offer a yield spread advantage that is typically significant even after adjusting for credit and prepayment risk (2) The greater variety of securities in the non-government sectors may provide greater opportunities for adding value through identifying undervalued and overvalued securities. The Core Fixed Income Strategy is appropriate for investors seeking actively managed broad US high quality fixed income exposure.
Jonathan Duensing, CFA
Director of Investment Grade Corporates
- Low exposure to macro factor risk (duration, curve, volatility)
- Duration limits +/- 0.5 versus the benchmark
- Focus on investment grade securities
- Leverage is generally prohibited, or if permitted, not greater than 1.1 times capital
PLEASE NOTE: The Internal Guidelines referenced do not necessarily represent prospectus/statutory limitations. These internal guidelines are used as guidance in the daily management of the Portfolio’s investments. These guidelines are subject to change and should not be relied upon as a long term view of the Portfolio’s exposures, limitations, and/or risks.
Why Amundi Pioneer?
A strong fixed income investment culture focused on sound, fundamental research drives the management of the Core Fixed Income Strategy. Key features of the Strategy include:
- We offer flexibility to meet client needs. Our investment process allows us to manage to custom guidelines and objectives.
- The lead Portfolio Manager has managed the Core strategies since inception (1994). He is supported by sector teams covering all the sectors in the investment universe.
- A decisive and nimble portfolio management process can allow us to take advantage of market opportunities that are too small for larger US fixed income managers.
- We focus on security selection and sector rotation, which we expect to provide more competitive excess returns than more macro/"top-down" strategies.