Pioneer Investments sees inflows of £5bn this year

Pioneer Investments sees inflows of £5bn this year

Pioneer Investments chief executive Giordano Lombardo has said the company will be evolving its product offering to create funds generating alternative sources of income.

He said: “Our priority remains to continuously evolve our product offering to provide alternative sources of income to our clients, and to that end, we recently launched an innovative global GDP-weighted bond strategy, with the aim of delivering more yield without increasing credit risk.”

Mr Lombardo was speaking after one of the world’s oldest mutual fund management firms posted inflows of £5.06bn globally for the first quarter of 2015.

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While the highest inflows in the first quarter came from Europe and Latin America, the company said the US also saw “positive momentum”.

The firm’s assets under management increased by 25 per cent to £160.6bn year on year.

Mr Lombardo added: “Our global net sales for the first quarter this year represent more than half of 2014’s total.

“These excellent results are further evidence of our consistent investment performance, innovative product strategy, and the continued trust our clients have shown in our business.

“With modest expected returns and increased volatility in the markets generally, investors are looking for new sources of risk-adjusted returns.”

Last month Milan-based Unicredit, the owner of Pioneer Investments, reached an agreement to merge the company with Santander’s asset management arm.

Adviser view

Richard Ross, director of Norwich-based Chadwicks, said: “I think increasingly asset management at this scale will be a commodity so it will compete on price.

“The deal with Santander is an indication of the increasing consolidation within the asset management industry.”