To protect investor purchasing power by providing real return in excess of CPI over a full market cycle*
Dynamic allocation to a diversified set of asset classes in order to outperform CPI in different growth environments
Barclays TIPS 1 - 10 year index
Investing for Real Return
We believe real return investments to be a critical part of an appropriate investor's total asset allocation.
- Real return refers to return in excess of inflation (e.g. the Consumer Price Index or CPI)
- Fund's goal: to protect investor purchasing power by investing in a variety of global asset classes and sectors including
Treasury Inflation Protected Securities (TIPS), floating rate bonds, select commodities, income generating real estate, equities,
corporate bonds and various real assets deemed of value in the context of the macroeconomic environment.
- We believe real assets, which may include oil, gold, commodities and real estate, among other types of securities, can play an important role in hedging against inflation, enhancing returns and reducing volatility.
A Diversified, Dynamic Approach to Allocation
Pursue real return opportunistically through a flexible, active approach that allows us to choose what we believe
are the most appropriate investment vehicles or real assets based on the current environment.
- The Fund applies dynamic allocation to a diversified mix of financial securities and real assets, seeking to outpace the rate of
inflation over a full market cycle.* There can be no assurance that the Fund will meet this target over the long term.
- Our views of inflation levels and GDP growth drive our asset allocation decisions.
- Volatility and correlation modeling applied to the Fund's asset mix are essential elements of our Portfolio construction, as we
attempt to uncover alpha and reduce volatility relative to the CPI.
* A typical full market cycle may generally last from 6 to 8 years and includes both a market peak and a market trough.
The Pioneer Difference
Seeking to address multiple investor challenges - protection of purchasing power, accessing investments with lower
correlations to traditional asset classes and reducing portfolio volatility - with the additional benefit of professional management
- We believe that our flexible, active allocation approach offers an advantage over more limited inflation hedging strategies focused largely on TIPS.
- Our ability to invest across a range of asset classes allows us to invest in securities that we believe will generate return - even through periods of low inflation - unlike more limited strategies that do not have the flexibility to invest in such a broad range of securities.
- Portfolio management is backed by the extensive expertise of Pioneer's global research organization, which includes teams of
analysts specializing in U.S. and international fixed income, emerging market debt, global equities and commodities.
Portfolio Management Team
Industry experience since 1983. Manages Pioneer's multi-sector fixed income strategies, including Pioneer's Strategic Income Fund and Pioneer Bond Fund
Industry experience since 1982. An experienced balanced fund manager, Mr. Garau's allocation experience, together with his work in the European markets, lends itself well to the global and dynamic approach of this Fund.
Industry experience since 2005. Works with Ken Taubes and Michele Garau on the implementation of the Fund's investment strategies, including asset allocation and security selection.