Amundi Pioneer today introduced Pioneer Securitized Income Fund (Ticker: XSILX), an interval fund investing primarily in high yielding mortgage-backed securities, asset-backed securities, and other securitized credit instruments. The Fund’s investment objective is total return.
FOR IMMEDIATE RELEASE
Boston, December 9, 2019 - Amundi Pioneer today introduced Pioneer Securitized Income Fund (Ticker: XSILX), an interval fund investing primarily in high yielding (below investment grade) mortgage-backed securities, asset-backed securities, and other securitized credit instruments. The Fund’s investment objective is total return.
The Fund is managed by Noah Funderburk and Nicolas Pauwels, who are members of Amundi Pioneer’s seven-person team that specializes in securitized assets. This team, which manages $20.9 billion in securitized assets in dedicated and multisector portfolios as of September 30, 2019, seeks to add value over the course of market cycles by identifying opportunities that offer the potential for attractive risk-adjusted returns. The team is supported by Amundi Pioneer’s fixed income team, as well as Amundi’s global research teams.
The Fund’s shares are offered continuously and are priced daily at their net asset value. The Fund’s interval structure is designed to align the liquidity of its target investments with the limited liquidity offered to its shareholders. As an interval fund, by prospectus, the Fund will make quarterly offers to repurchase a portion of its outstanding shares at net asset value.
Christine Todd, Head of US Fixed Income, of Amundi Pioneer
“Following the 2008 recession securitized credit has transformed into a stand-alone asset class with materially improved fundamental structure and loan quality. Our Fund offers investors a diversity of exposures that are not readily available in benchmark form. The relatively low historic correlation of the securitized credit asset class to corporate credit and equities suggests investors should consider a strategic allocation to this sector.
We believe the interval fund structure is optimal for this strategy because it provides the opportunity for the Fund to capture liquidity premium under normal market conditions and to potentially benefit as a liquidity provider during stressed markets. Amundi Pioneer has over 30 years of history investing in securitized assets, including dedicated securitized credit strategies. The launch of the Fund shows our commitment to thoughtfully expanding investor access to this space.”
Before investing, consider the product’s investment objectives, risks, charges and expenses. Contact your advisor or Amundi Pioneer for a prospectus or summary prospectus containing this information. Read it carefully.
Neither Amundi Pioneer nor its representatives are legal or tax advisors. In addition, Amundi Pioneer does not provide advice or recommendations. The investments you choose should correspond to your financial needs, goals, and risk tolerance. For assistance in determining your financial situation, please consult an investment professional.
A Word About Risk:
Please see a prospectus for a complete discussion of the Fund’s risks. The Fund is a non-diversified, closed-end management investment company designed primarily as a long-term investment. The Fund is not a complete investment program. The Fund is newly organized and has no operating history or history of public trading. There is currently no secondary market and the Fund doesn’t expect one to develop. The shares are, therefore, not readily marketable. The Fund invests primarily in mortgage-backed securities, asset-backed securities and other securitized asset instruments. A substantial portion of the Fund’s assets ordinarily will consist of high yield debt securities that involve substantial risk of loss. The Fund is operated as an interval fund, meaning the Fund will seek to conduct quarterly repurchase offers for a percentage of the Fund’s outstanding shares. Although the Fund will make quarterly repurchase offers, the Fund’s shares should be considered illiquid.
Investments in the Fund are subject to possible loss due to the financial failure of issuers of underlying securities and their inability to meet their debt obligations. Investments in high yield or lower-rated securities are subject to greater-than-average price volatility, illiquidity and possibility of default. When interest rates rise, the prices of fixed-income securities in the Fund will generally fall. Conversely, when interest rates fall, the prices of fixed-income securities in the Fund will generally rise. The value of mortgage-related and asset backed securities will be influenced by factors affecting the real estate market and the assets underlying those securities. These securities are also subject to prepayment and extension risks and risk of default. The Fund anticipates borrowing for leveraging purposes, including through reverse repurchase agreements or other means. When the Fund uses leverage, the value of the investment will be more volatile and other risks will tend to be compounded. Leverage generally magnifies the effect of any increase or decrease in the value of the Fund’s underlying assets and creates a risk of loss of value on a larger pool of assets than the Fund would otherwise have. Certain securities and derivatives held by the Fund may be impossible or difficult to purchase, sell or unwind. Such securities may also be difficult to value. The use of interest rate futures and options and other derivatives can increase fund losses and reduce opportunities for gain. The Fund may invest in credit default swaps, inverse floating rate obligations, and other derivative instruments. Derivatives may have a leveraging effect on the Fund. As a non-diversified Fund, the Fund can invest a higher percentage of its assets in the securities of any one or more issuers than a diversified fund. Being non-diversified may magnify the Fund’s losses from adverse events affecting a particular issuer.
Executive Vice President, Chief Invetment Officer, US Portfolio Manager
Ken Taubes is Chief Investment Officer, US and a Portfolio Manager at Amundi Asset Management US, Inc.. As Chief Investment Officer, Ken oversees US fixed income, equity, and multi-asset teams, including[...]Read more
Director of Corporate Communications
About Amundi US
Amundi US is the US business of Amundi, Europe’s largest asset manager by assets under management and ranked among the ten largest globally. Boston is one of Amundi’s six main global investment hubs and offers a broad range of fixed-income, equity, and multi-asset investment solutions in close partnership with wealth management firms, distribution platforms, and institutional investors across the Americas, Europe, and Asia-Pacific.
With our financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape. Amundi clients benefit from the expertise and advice of 5,400 employees in 35 countries. A subsidiary of the Crédit Agricole group and listed on the Paris stock exchange, Amundi currently manages approximately $2.01 trillion of assets.
Amundi, a Trusted Partner, working every day in the interest of our clients and society
1. Source: IPE “Top 500 Asset Managers” published in June 2022, based on assets under management as of 12/31/2021
2. Boston, Dublin, London, Milan, Paris, and Tokyo
3. Consolidated internal Amundi and Lyxor workforce as at 6/30/2022
4. Amundi data as of 6/30/22