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Pioneer bets against QE

Worried that QE is depressing bond yields, Pioneer has unveiled a new kind of global bond strategy that favours GDP over market values

By favouring GDP rankings, Pioneer is giving greater weight to China in its portfolio
By favouring GDP rankings, Pioneer is giving greater weight to China in its portfolio

In the first product announcement since news of its merger with Santander Asset Management, Pioneer Investments has launched a global bond strategy which takes a low weighting in bonds issued by countries using quantitative easing to revive their economies.

Traditional strategies rank bonds according to their market value, This favours the biggest issuers of government debt which are disproportionately made up of countries pursuing QE, which inflates bond prices.

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