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Addressing Challenges with Solutions

Real Liquid Assets

Alfred Grusch

Liquid Real Assets have gained investor interest not only for their ability to generate sustainable income and real returns but also to diversify risk due to lower correlation with traditional assets.

 

 

Pioneer Funds - Real Assets Target Income
Class A EUR Non-Distributing
 

Seeking Value Equities in Europe

Andreas Wosol

Inflation is back on the radar suggesting bond yields which continue to move higher in 2017. This environment has typically been a support to "Value Investing" in Europe. Andreas Wosol, Senior Portfolio Manager, believes the sweet spot of fundamental value investing involves identifying those companies, which potentially offer a significant margin of safety (value) but can also demonstrate the ability to deliver sustainable earnings power.

 

Pioneer Funds - European Equity Value
Morningstar RatingTM

challenge-3-reflation

Investment Experts
Video Interviews

challenge-3-semin-soher
  • Semin Soher - Senior Portfolio Manager
  • Alfred Grusch - Senior Portfolio Manager
  • Andreas Wosol - Senior Portfolio Manager

Overview

After years of global disinflation in Developed Markets, inflation pressures seem to finally be building up. The main inflation drivers that investors should pay attention to are the labour market in the U.S., the positive commodity outlook, the loose fiscal policies, the service sector inflation and weaker globalisation.

 

A reflationary environment could offer opportunities for active investors across the board. In Fixed Income, inflation-linked and short duration bonds could benefit investor portfolios in periods of higher inflation. On Equities, a reflation scenario could be positive, especially for European value stocks where earnings growth could materialise throughout the year. However, single name selection will be crucial in identifying companies that combine value and quality and, therefore, could perform the best. From a Multi-Asset perspective, the favourite asset classes in reflation phases have historically been Global Equities, Credit and Commodities. Investments linked to real assets can also offer interesting inflation protection opportunities in this environment. 

 

For investors it is time to be aware of the new inflation narrative in order to build portfolios that are resilient to this new market scenario.