The Amundi Pioneer Long Duration Credit - Higher Quality Strategy is a higher quality strategy that strives to outperform a client’s long corporate benchmark over a three- to five-year investment horizon by 1.0% to 1.5% with a tracking error of 1.5% to 2.0%.

                         

                              

                        

                       

The Amundi Pioneer Long Duration Credit - Higher Quality Strategy invests across a broad range of credit securities, with a primary focus on corporate issues. We strive to achieve strong risk-adjusted returns primarily through security selection and active industry and quality allocation. We are able to customize portfolio parameters based on client-specific risk and return objectives. Our opportunity set includes BBB-rated issues, subordinated securities and off-the-run issues to increase the potential for higher return. The Strategy may also maintain modest non-investment grade exposure if permitted within client-specific guidelines. These investments can help diversify1 portfolio risk, by reducing risk inherent in the highly concentrated benchmark, and broaden industry exposures. Duration and yield curve represent secondary alpha sources.

 ¹Diversification does not guarantee a profit or protect against a loss.

Ken Taubes

Executive Vice President
Chief Investment Officer of the US Investment Management
Portfolio Manager 

Biography

Jonathan Duensing, CFA

Managing Director
Director of Investment Grade Corporates
Portfolio Manager

Biography

Brad Komenda, CFA

Senior Vice President
Deputy Director of Investment Grade Corporates, US
Portfolio Manager 

Biography

Overview

  • We examine relative value across industry sectors and issuers, seeking strong risk-adjusted returns based on attractively priced sectors and securities with stable or improving outlooks.
    • Sector rotation reflects our relative value, economic cycle stage, and secular views.
    • Security selection focuses on identifying issuers with attractive total return prospects and those securities within an issuer complex, looking across capital structures, deal size and maturities that may offer higher spreads with modest additional risk.
  • The portfolio managers construct each portfolio in accordance with its investment objectives, guidelines and risk tolerances.
  • We are able to customize the Strategy based on specific client guidelines and needs.
  • The primary focus is benchmark-relative risk.
  • Target duration is typically + or – 0.5 years relative to the benchmark.

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?

The Strategy is managed within a strong fixed income investment culture focused on sound, fundamental research. Key features of the Amundi Pioneer Long Duration Credit – Higher Quality Strategy include:

  • Value approach: The Strategy assesses relative value across industry sectors and issuers, seeking strong risk-adjusted returns.
  • Broad opportunity set: Issuer concentration risk is reduced by expanding the opportunity set to permit allocations to BBB and non-US-domiciled issuers, as well as modest allocations to BB/B issues, subordinated securities and off-the-run issues. Increasing BBB allocation broadens industry diversification by including sectors that carry maximum BBB rating. Inclusion of the BBB universe more than doubles the number of issuers available to invest in and reduces issuer concentration risk.
  • Seasoned Global Credit Research team, disciplined process: The credit research process is comprised of three pillars of credit research: strong underwriting/buy discipline, comprehensive surveillance and strict exposure management. Our proprietary global research platform provides broad access to an active coverage list focused on recommendation and investment thesis, internal credit rating, fundamental momentum and downgrade risk.