Pioneer brings AR fund to the UK

Pioneer brings AR fund to the UK

Pioneer Investments has launched a UK retail-friendly share class for its Absolute Return Multi-Strategy fund in an attempt to tap the growing demand for flexible portfolios.

The existing version of the strategy, which aims to achieve a positive return in all market conditions, is €1.3bn (£1bn) in size and has been run by Davide Cataldo since 2008.

The fund can invest in government and corporate bonds, equities, convertible bonds and money market securities. It can hold up to 50 per cent of its assets in equities and up to 25 per cent in convertible bonds.

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The manager also has the ability to use derivatives depending on market conditions.

The fund returned 4 per cent in the year to the end of August and an annualised 5.3 per cent in the past three years, according to data from the group.

The new Luxembourg Sicav version of the fund launched at the beginning of the month. The product is positioned as an alternative to vehicles such as the £25.8bn Standard Life Investments Global Absolute Return Strategies fund.

The launch comes as investors – nervous about the fate of a variety of assets – are piling into absolute return strategies.

The IA Targeted Absolute Return sector was the best-selling sector in June and the third-best in July with net retail sales of £322m, data from the Investment Association shows.

Pioneer had £156bn in assets under management at the end of June, and is shortly to merge with Santander Asset Management to create a £290bn fund house.