Spotlight on Investor
Views for 2016
1. PROFESSIONAL INVESTOR PRIORITIES
% of respondents answering Extremely & Very Relevant
||Relevant downside protection/capital preservation
||Consistently beating the benchmark(Alpha)2
||Search for uncorrelated3 asset classes
||Asset growth through market exposure(Beta)4
||Risk adjusted asymmetric payoff
||Flexible goal-oriented solutions
- FACES OF RISK
- INVESTMENT FOCUS
2. MULTIPLE FACES OF RISK
% of respondents answering Extreme&Very Relevant
3. TOP FIVE GOALS FOR MULTI-ASSET INVESTING
Reach a specific
Professional investors and intermediaries interested in multi-asset solutions
ASSET MANAGER ANSWERS
TO MEET CLIENT NEEDS
|Low Yields Enviroment
||Compensation for Lower Beta
1. The findings come from a survey, conducted by Pioneer Investments between August and December 2015, involving around 570 professional investors and intermediaries in Europe and Asia.
2. Alpha – The additional return above the expected return of the beta adjusted return of the market; a positive alpha suggests risk-adjusted value added by the money manager versus the index.
3. Correlation – The degree of association between two or more variables; in finance, it is the degree to which assets or asset class prices have moved in relation to one another. Correlation is expressed by a correlation coefficient that ranges from -1 (never move together) through 0 (absolutely independent) to 1 (always move together).
4. Beta – A statistical measurement of an investment’s sensitivity (volatility) to market movements in relation to an index; for example, a beta of 1.2 suggests 20% more volatility in returns than the benchmark, which is assigned a beta of 1.0.
5. Diversification does not guarantee a profit or protect against a loss.
6. Drawdown – The peak-to-trough decline during a specific record period of an investment, fund or commodity, usually quoted as the percentage between the peak and the trough.
Unless otherwise stated, all information contained in this document is from Pioneer Investments and is as of May 31, 2016.
The views expressed regarding market and economic trends are those of the author and not necessarily Pioneer Investments, and are subject to change at any time based on market and other conditions and there can be no assurances that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading on behalf of any Pioneer Investments product.
There is no guarantee that market forecasts discussed will be realized or that these trends will continue. Investments involve certain risks, including political and currency risks. Investment return and principal value may go down as well as up and could result in the loss of all capital invested. This material does not constitute an offer to buy or a solicitation to sell any units of any investment fund or any services.
Pioneer Investments is a trading name of the Pioneer Global Asset Management S.p.A. group of companies.
Date of First Use: June 6, 2016.