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2 Compelling Core Fixed-Income Opportunities

Brian Moriarty

Brian Moriarty: Investors looking for core fixed-income opportunities should consider Pioneer Bond and Pioneer Strategic Income, which are two compelling options designed for different risk profiles.

Pioneer Bond is an intermediate-term bond fund that puts a 20% to 25% combined limit on aggressive sectors like high yield, bank loans, and emerging markets. That limit is higher than some peers, which puts the fund in the "core plus" range.

On the other hand, Pioneer Strategic Income is a multisector bond fund that can make much wider use of those aggressive sectors. This makes it a riskier option compared to the Pioneer Bond fund. But, compared to its multisector peers, it tends to hold much more in agency mortgages and even Treasuries, which gives it a more conservative approach compared to its own category.

Both funds are managed with a thorough relative-value driven strategy. Managers are willing to reduce exposure to sectors that have been doing well and add exposure to sectors that have been cheapening. Over time, this has generated strong absolute returns and an impressive risk-adjusted profile for both funds.