New Frontiers in Emerging Markets Credit:               The Case For Emerging Markets Corporate Credit               Greg ...
WHY EMERGING MARKETS CORPORATE CREDIT?                For Use at the Citywire Wealth Manager Conference Only and not to be...
Spread Convergence to Sovereign Ceiling               Hard Currency Spreads Are Approaching Pre Lehman Lows               ...
With Risk Declining, Emerging Attracts More InvestorsEmerging Markets Are Not Much Riskier Than US BBB                    ...
Wider Sponsorship from InvestorsRising EM Debt Issuance Should Re-balance Global Aggregates                       Nearly 4...
Critical Mass: EM Corporate Issuance Approaches US BBBCEMBI Catching Up With US High Yield                                ...
Near Term Performance Drivers                                                                                     IMF: GDP...
WHY PIONEER INVESTMENTS?                For Use at the Citywire Wealth Manager Conference Only and not to be Distributed t...
Why Partner with Pioneer Investments?                                          15 Years Of Investing In Emerging MarketsJP...
Our Investment Capability                           Aggregate Product                  Pioneer Funds – Emerging Markets Bo...
Emerging Market Fixed Income – Team Capabilities                  Emerging Markets        Local Currencies                ...
A Strong Track Record…                                               Pioneer Funds – Emerging Markets Bond Fund (EUR, I un...
…Outperforming Peers                        0                                2009                                    2010 ...
APPENDIX           For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 14
A 6-Stage Process Drives our Investment DecisionsAnchored by Integrated Risk Management                                   ...
Pioneer Funds - Emerging Markets BondKey Characteristics                 Term Exposure                                    ...
Pioneer Funds – Emerging Markets Bond Local CurrenciesKey Characteristics                   Term Exposure                 ...
Pioneer Funds - Emerging Markets Corporate High Yield BondKey Characteristics                Term Exposure                ...
EM Fixed Income TeamBiographies       Greg Saichin, Head of Emerging Markets & High Yield Fixed Income Portfolio Managemen...
EM Fixed Income TeamBiographies       Colm D‘Rosario, Portfolio Manager        Colm is a Portfolio Manager who has worked...
Disclaimer   Unless otherwise stated all information contained in this document is from Pioneer Investments and is as at 3...
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Pioneer investments

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Pioneer investments

  1. 1. New Frontiers in Emerging Markets Credit: The Case For Emerging Markets Corporate Credit Greg Saichin, Senior Vice President, Head of Emerging Markets & High Yield Fixed Income Portfolio Management Citywire Wealth Manager Conference| March 4th - 5th , 2013For Use at the Citywire Wealth Manager Conference Only and Not to be Distributed to the Public.
  2. 2. WHY EMERGING MARKETS CORPORATE CREDIT? For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 2
  3. 3. Spread Convergence to Sovereign Ceiling Hard Currency Spreads Are Approaching Pre Lehman Lows JPMorgan EMBI Global Diversified Blended Spreads over US Treasuries 800 700 600Basis Points 500 400 300 200 Source: Bloomberg, 18 February 2013 For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 3
  4. 4. With Risk Declining, Emerging Attracts More InvestorsEmerging Markets Are Not Much Riskier Than US BBB JP Morgan EMBI Spread vs CS Liquid US Corporate BBB Spread (bp) 1200 Emerging Markets US Corporate (BBB) 1000 800 Basis Points 600 400 200 0 Source: Bloomberg, 18 February 2013 For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 4
  5. 5. Wider Sponsorship from InvestorsRising EM Debt Issuance Should Re-balance Global Aggregates Nearly 43% of World GDP, but only 5% of BarCap Global Aggregate World GDP BarCap Global Agg China (11.1%) Emerging Markets (5%)Brazil, Russia, India (8.5%)Other Emerging 22.7% Rest of World (95%) Developed Markets 57.5% Data source: BarCap, IMF, November 2012 For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 5
  6. 6. Critical Mass: EM Corporate Issuance Approaches US BBBCEMBI Catching Up With US High Yield Source: JP Morgan EM Corp 2013 Outlook & Strategy – 6 Dec 12 For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 6
  7. 7. Near Term Performance Drivers IMF: GDP Growth & 2013 ForecastA low global growth environment World G7 EmergingNegative real interest rates 10EM Domestic Demand Story is improving 8 6Commodity price backdrop 4 2Government incentive spending 0Superior demographics -2 -4Declining barriers to foreign investment. -6 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017Higher corporate issuance Source: IMF, January 2013 For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 7
  8. 8. WHY PIONEER INVESTMENTS? For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 8
  9. 9. Why Partner with Pioneer Investments? 15 Years Of Investing In Emerging MarketsJPMorgan EMBI Team • 6 Dedicated portfolio managers • 8 Credit research analysts focusing on Emerging Markets • Team founded in 2000 by Greg Saichin, Head of High Yield and Global EM Fixed Income. Experience • Greg has 24 years of experience in dealing with Emerging Market Corporates • Team averages 15 years of experience • Team has managed corporate Emerging Market exposure since 2002 Source: Pioneer Investments, as of January, 2013 For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 9
  10. 10. Our Investment Capability Aggregate Product Pioneer Funds – Emerging Markets BondLocal Currency Sovereign Corporate IG Credit Available in SICAV For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 10
  11. 11. Emerging Market Fixed Income – Team Capabilities Emerging Markets Local Currencies Corporate & High Yield Aggregate Debt Emerging Markets Emerging Markets Emerging Markets Emerging Markets Emerging Markets Corporate Debt(Buy and Corporate High Yield Strategy Name Aggregate Debt Debt Local Currencies Corporate Debt Hold)** DebtInception Date 4 July 2000 4 November 2009 7 June 2011 11 December 2012 11 July 2012 AUM* €1.25 billion €459 million €362 million €11 million €30 million Sovereign Hard and Local EM Debt Instruments Corporate Emerging Corporate Emerging Corporate Emerging Currency plus Corporate denominated in Local Markets Hard Currency Markets Hard and Markets, High Yield Investment Emerging Markets Hard Currencies Bonds Local Currency Bonds Universe and Local Currency Bonds Bonds Max 25% in Local Max 25% in High Currency Bonds Yield JPM EMBI Global JP Morgan GBI – EM N/A JPMorgan CEMBI JPM CEMBI Broad Diversified 95% Broad Diversified EUR Broad Diversified Diversified Non– Unhedged Investment Grade Benchmark JPM Cash 5% *Assets under management represents both funds and segregated accounts as of 15 February 2013 **The funds using the Emerging Markets Corporate Bond buy and hold strategy are closed to new investments. Source: Pioneer Investments 15 February 2013 For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 11
  12. 12. A Strong Track Record… Pioneer Funds – Emerging Markets Bond Fund (EUR, I units) vs Benchmark (95% EMBI, 5% Cash) Pioneer Funds - Emerging Markets Bond Benchmark 256 206Indexed Performance 156 106 56 6 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Jun-02 Mar-03 Jun-03 Mar-04 Jun-04 Mar-05 Jun-05 Mar-06 Jun-06 Mar-07 Jun-07 Mar-08 Jun-08 Mar-09 Jun-09 Mar-10 Jun-10 Mar-11 Jun-11 Mar-12 Jun-12 Source: Bloomberg, 2 January 2013 - Performance data provided refers to Class I units EUR ND only, and is based upon NAV net of fees. For details of other unit Classes available, please refer to the prospectus. – Minimum Investments : €10.0Mil Benchmark of Pioneer Funds – Emerging Markets Bond : JPM EMBI Global Div (95%) + JPM Cash 1 Month Euro (5%) Past performance does not guarantee and is not indicative of future results. For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 12
  13. 13. …Outperforming Peers 0 2009 2010 2011 2012 YTD 0 3 6 10 20 25 Percentile (%) 55 50 46 51 57 56 75 76 100 Pioneer Funds - Emerging Market Bond MorningStar Peer Category Source: Morningstar, January 31 2013 *Source: Morningstar Direct (as at 31 January 2012). Pioneer Funds – Emerging Market Bond Class A non-distributing US dollars, rank returns vs Emerging Market Debt peers. Copyright © 2012 Morningstar UK Limited. All Rights Reserved. The information contained herein: (1) may not be copied or distributed; and (2) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 13
  14. 14. APPENDIX For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 14
  15. 15. A 6-Stage Process Drives our Investment DecisionsAnchored by Integrated Risk Management 1. Macro Analysis 6. Portfolio 2. Idea Construction Generation Risk Management 3. Sector 5. Valuation Analysis 4. Credit Analysis For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 15
  16. 16. Pioneer Funds - Emerging Markets BondKey Characteristics Term Exposure 50.0% Weight 40.0% 30.0% Key Details 20.0%Yield To Maturity 6.38% 10.0% 0.0%Spread Duration 3.92 Liq Cash FRN 1-3 3-7 7-11 11-20 20-35 35+ OtherEffective Duration 5.39 German Rating Allocation WeightAverage Quality B+ 20.0% 15.0% 10.0% Regional Allocation 5.0% Asia 0.0% AAA AA- A+ A A- BBB+ BBB BBB- BB+ BB BB- B+ B B- CCC+ CCC CCC- CC C D Cash NR Carribean Latin America Currency Exposure Weight 100.0% North America 50.0% EMEA 0.0% ARS BRL CLP CNY COP EUR GBP HKD HUF MXN NGN NOK NZD PHP PLN RUB SEK TRY USD ZAR Europe Data Source: Pioneer Investments, 30 January 2013 For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 16
  17. 17. Pioneer Funds – Emerging Markets Bond Local CurrenciesKey Characteristics Term Exposure 30.0% Weight 20.0% Key Details 10.0%Yield To Maturity 4.51%Spread Duration 3.60 0.0% Liq Cash FRN 1-3 3-7 7-11 11-20 20-35 OtherEffective Duration 3.59Average Quality BBB+ German Rating Allocation Weight 30.0% 20.0% Country Allocation Malaysia Russia 10.0% Brazil Romania Chile 0.0% Supranational AAA A+ A A- BBB+ BBB BBB- BB+ BB B Cash NR Mexico United States Hungary Netherlands Weight Philippines Currency Exposure Poland 15.0% Nigeria Indonesia Thailand 10.0% Peru Turkey 5.0% South Africa Colombia 0.0% India BRL CLP CNY COP CZK EUR HUF IDR INR MXN MYR NGN PEN PHP PLN RUB THB TRY USD ZAR China Data Source: Pioneer Investments, 30 January 2013 For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 17
  18. 18. Pioneer Funds - Emerging Markets Corporate High Yield BondKey Characteristics Term Exposure 60.0% Weight 40.0% Key Details 20.0%Yield To Maturity 6.68%Effective Duration 3.69 0.0% Liq Cash FRN 1-3 3-7 7-11 11-20 20-35 35+Spread Duration 3.69Average Quality B+ Rating Allocation Weight 25.0% 20.0% 15.0% Regional Allocation 10.0% 5.0% Asia 0.0% BBB BBB- BB+ BB BB- B+ B B- CCC+ CCC CCC- C Cash NR Carribean Currency Exposure Weight Latin America 100.0% North America 50.0% EMEA 0.0% EUR GBP USD Europe Data Source: Pioneer Investments, 31 January 2013 For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 18
  19. 19. EM Fixed Income TeamBiographies Greg Saichin, Head of Emerging Markets & High Yield Fixed Income Portfolio Management  Greg Saichin is Head of Emerging Market & High Yield Fixed Income Portfolio Management. He is also a Senior Portfolio Manager responsible for all dedicated emerging-market bond funds. He has held this role since January 2000, spending more than 10 years working in our Dublin office before relocating to London in 2011 .  Greg has worked on emerging markets throughout his career. His area of expertise has expanded since 2000 to cover the sub-investment-grade universe, with the advent of European High Yield as an asset class.  Greg joined Pioneer Investments in 2000 from Deutsche Morgan Grenfell in London where he had been working in emerging markets fixed-income sales. Before this, he worked in the same field with Chemical Bank for three years. Greg began his career as a corporate banker with Citibank N.A’s international division in Mexico upon completion of his MBA in 1986. Yerlan Syzdykov, Senior Portfolio Manager  Yerlan Syzdykov is an emerging markets Portfolio Manager at Pioneer Investments Dublin. He manages Pioneer Obbligazionario Paesi Emergenti and Pioneer Funds – Emerging Markets Bond. Before beginning his portfolio management role in 2004 he was responsible for emerging markets analysis for all dedicated emerging markets funds.  Yerlan has worked on emerging markets throughout his career. He joined Pioneer Investments in 2000 from Bancroft in Paris where he had been working as an Investment Analyst. Before this he was employed by various companies in London and Paris within the emerging markets area. Yerlan started his career as an Equity Analyst with Renaissance Capital in Moscow upon completion of his MBA in 1997. Hakan Aksoy, Portfolio Manager  Hakan works primarily on Pioneer Funds – Emerging Markets Bond Local Currencies. He also covers the local currency bond and the EM FX trades with the other funds at the desk.  He joined Pioneer Investments in 2005 as an analyst in the Multi Asset Management Team. In August 2007, he became a member of the High Yield & Global EM Fixed Income team.  Prior to joining Pioneer Investments, Hakan held the position of Senior Fund Manager for five years in Koc Portfolio Management, Turkey. Before this, Hakan worked as a Portfolio Manager in Iktisat Asset Management and as an Economist in Iktisat Investment Securities. Hakan achieved a BS in Electrical Engineering (Control Theory) and a subsequent Masters in the same subject. He also holds a Masters degree in Economics from Bilkent University, and in 2004 he received a PhD in Finance from Bogazici University For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 19
  20. 20. EM Fixed Income TeamBiographies Colm D‘Rosario, Portfolio Manager  Colm is a Portfolio Manager who has worked on various products on the desk since 2007. In January 2011 he was appointed co-manager of Pioneer Obbligazionario Paesi Emergenti a distribuzione.  Before joining Pioneer Investments, Colm worked as a Credit Analyst with WGZ Bank (2004-2007), where he was primarily responsible for the research and analysis of Asset-Backed Securities and Banks.  Colm has an MA in Economics and Finance, an MSc in Mathematics and a BA in Double Mathematics/Economics. He was awarded the Financial Risk Manager (FRM®) designation by the Global Association of Risk Professionals (GARP) in April 2007 Alejandro Arevalo, Portfolio Manger  Alejandro is a High Yield EM Portfolio Manager for Pioneer Investments with fourteen years’ experience in the financial services industry.  Before joining Pioneer Investments, Alejandro held the position of Senior Credit Analyst for The International Bank of Miami from 1999 to 2003, when he moved to Gibraltar Bank and took the position of Senior Credit Analyst/Credit Manager.  In 2005 joined Standard Bank Asset Management as Senior EM Fixed Income Analyst, becomiong EM Corporate Portfolio Manager in 2011 where he was given responsibility for marketing, structuring and managing new Emerging Markets, focusing in regions such as Latin America, CIS and Asia.  Alejandro has an MBA with concentration in Finance from Florida International University, Miami. Giles Bedford, Client Portfolio Manger  Giles is a Client Portfolio manager with 18 years of experience in the financial services industry.  Before joining Pioneer Investments, Giles was the managing partner of Beltone Financial UK, the European arm of a leading Egyptian investment bank. Previous to this, he was a partner at E2 Research, an independent research boutique, having held positions at Morgan Stanley, Goldman Sachs and Robert Fleming. For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 20
  21. 21. Disclaimer Unless otherwise stated all information contained in this document is from Pioneer Investments and is as at 31 January 2013. Pioneer Funds – Emerging Markets Corporate High Yield Bond, Pioneer Funds – Emerging Markets Bond and Pioneer Funds – Emerging Markets Bond Local Currencies are sub-funds (individually the “Sub-Fund” and collectively the „Sub-Funds“) of Pioneer Funds (the “Fund”), a fonds commun de placement with several separate sub- funds established under the laws of the Grand Duchy of Luxembourg. The investment schemes or strategies described in this document (the “Schemes”) may not be registered for sale with the relevant authorities of individual Member States of the EEA or in Switzerland. Where unregistered, the Schemes may not be sold or offered except in the circumstances permitted by law and therefore no action may be taken, directly or indirectly, which could be construed as a promotion or solicitation of the Schemes (including the provision of any Scheme documentation or advertising materials to any third party). The shares/units of any Scheme may not be offered for sale in the United States of America, or in any of its territories or possessions subject to its jurisdiction or to/for the benefit of a US Person. Past performance does not guarantee and is not indicative of future results. Unless otherwise stated, all views expressed are those of the investment professional. These views do not necessarily reflect the views of Pioneer Investments or others in the Pioneer Investments organization. These views 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. 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. More recent returns may be different than those shown. Please contact your local sales representative for more current performance results. Please seek professional advice and read the prospectus carefully before making any investment decision. This document does not constitute investment advice or any offering of shares/units and does not take account of the investment objectives or needs of or suitability for a specific investor. The content of this document is approved by Pioneer Global Investments Limited. In the UK, it is approved for distribution by Pioneer Global Investments Limited (London Branch), Portland House, 8th Floor, Bressenden Place, London SW1E 5BH, authorised by the Central Bank of Ireland and regulated by the Financial Services Authority for the conduct of UK business. The Schemes are unregulated collective investment schemes under the UK Financial Services and Markets Act 2000 (“FSMA”) and therefore do not carry the protection provided by the UK regulatory system. This document is addressed only to those persons in the UK falling within one or more of the following exemptions from the restrictions in s 238 FSMA: • authorised firms under FSMA and certain other investment professionals falling within article 14 of the FSMA (Promotion of Collective Investment Schemes) (Exemptions) Order 2001, as amended (the “CIS Order”) and their directors, officers and employees acting for such entities in relation to investment; • high value entities falling within article 22 CIS Order and their directors, officers and employees acting for such entities in relation to investment; • other persons who are in accordance with the Rules of the FSA prior to 1 November 2007 classified as Intermediate Customers or Market Counterparties or on or thereafter classified as Professional Clients or Eligible Counterparties. The distribution of this document to any person in the UK not falling within one of the above categories is not permitted by Pioneer Global Investments Limited (London Branch) and may contravene FSMA. No person in the UK falling outside those categories should rely or act on it for any purposes whatever. This document is not GIPS compliant. For Professional Investor Use Only at the Citywire Wealth Manager Conference Only and Not to be Distributed to the Public. This document is not intended for and no reliance can be placed on this document by retail clients, to whom the document should not be provided. Pioneer Investments is a trading name of the Pioneer Global Asset Management S.p.A. group of companies. Date of First Use 4 March 2013 For Use at the Citywire Wealth Manager Conference Only and not to be Distributed to the Public. | Page 21

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