The commentary provided is based on the information provided by Cerberus Capital Management, L.P. to Pioneer Investments.

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1 Update: DR Funds January 2013 Alternative Relevant Fund of Hedge Funds: Special Investment Class Fund, DR AllWeather Fund, DR2 AllWeather Fund, DR AllWeather Strategies II Fund, DR2 AllWeather Strategies II Fund, DR AllWeather Institutional Fund, DR2 AllWeather Institutional Fund, DR AllWeather Liquidity Fund, DR2 AllWeather Liquidity Fund, DR Meteor Opportunities Fund and DR DebtMaster Fund (collectively known as the DR Funds ). The commentary provided is based on the information provided by Cerberus Capital Management, L.P. to Pioneer Investments. The DR Funds allocate a large portion of their capital to one hedge fund manager Cerberus Capital Management, L.P. ( Cerberus ). Allocations are split between three underlying funds: Cerberus International SPV ( CI SPV ), Styx International Fund ( Styx ) and Cerberus Institutional Overseas IV, Ltd ( Cerberus Institutional ). Please find below allocation information for each of the DR Funds as well as a brief update on these underlying funds. DR Fund Name CI SPV Styx Cerberus Institutional Total Special Investment Class Fund 51.63% 14.67% 11.29% 77.59% DR DebtMaster Fund 64.00% 13.99% 12.24% 90.23% DR AllWeather Fund 68.50% 14.97% 83.48% DR2 AllWeather Fund 25.39% 38.30% 5.55% 69.74% DR AllWeather Strategies II Fund 65.89% 14.40% 80.29% DR2 AllWeather Strategies II Fund 8.81% 55.14% 1.93% 65.88% DR AllWeather Liquidity Fund 66.96% 14.64% 81.60% DR2 AllWeather Liquidity Fund 81.91% 81.91% DR AllWeather Institutional Fund 64.63% 14.13% 78.76% DR2 AllWeather Institutional Fund 66.04% 66.04% DR Meteor Opportunities Fund 54.06% 11.82% 65.88% Source: Pioneer Investments. Data as at 30 September 2012 Cerberus has $21.7 billion of assets under management as at 1 October Approximately $17.7 billion of these assets are invested in Hedge Funds; $0.9 billion in institutional real estate funds and $3.1 billion in lending funds. 1. Cerberus International SPV - CI SPV recorded a positive performance in the third quarter up +2.93%. This has been followed by a flat performance in October (-0.03%) and upside in November (+0.88%) thus leaving the fund up +8.77% YTD to 30 November This followed impressive returns of % in 2011 and % in In comparison, the HFRX ED: Distressed Restructuring Index was up +0.41% in the third quarter and is up +0.44% YTD to 30 November 2012 (with performances in October and November respectively -2.99% and +0.06%). The HFRX ED: Distressed Restructuring Index was down -8.05% in 2011 and was up +8.33% in 2010.

2 - Performance in the third quarter was dominated by a top public holding in a Japanese bank. In August, the stock appreciated on announcement of a share buyback and increase of dividend and thus contributed to the strong results during the quarter. In October and November, the same position continues to influence strongly CI SPV performance. Below is the composition of the CI SPV portfolio as at 30 September 2012 (% shown as a % of CI SPV NAV): CI SPV is diversified across circa 25 significant majority holdings but remains relatively concentrated within the top 5 and 10 positions (57.2% and 71.2% respectively) The portfolio is invested in equities (80.2%), credit (3.4%), real estate (2.9%) and lending (0.2%) o The equity book is comprised mainly of private equity investments. Some of these are now in publicly traded companies but due to the size and illiquidity of Cerberus stake are classified as private equity. The mainstream private equity investments are typically control positions in turnaround situations but often where the company s balance sheet is not as levered as in typical private equity deals. These holdings can typically be broken into senior debt with a residual piece of private equity. o The credit book is comprised of structured products (2.9%) and distressed trading (0.5%) o The remaining is in real estate (2.9%), lending (0.2%) and other (0.8%) The CI SPV portfolio is mainly invested across the following main sectors: financials (41.9%), industrials (25.9%), consumer discretionary (9.0%), financial assets (6.4%), healthcare (3.3%) and information technology (0.9%) Exposure to Asia is 50.4% which is primarily to Japan. United States (17.9%), Europe including UK (13.2%) and Latin America and Caribbean (5.0%) account for the rest of the regional exposure of the portfolio. At period end, gross and net exposure stand at 92.0% and 86.0% respectively. Long positions represent 89.0% of the September 2012 NAV while short positions represent -3.0%. CI SPV Liquidity Update Despite a challenging and volatile environment, Cerberus has continued to diligently create liquidity for its shareholders and making distributions. Liquidity events during Q3 included the partial sales and material proceeds from: - Spanish-based multinational pharmaceutical and chemical company - Japan-based regional bank that provides a range of banking services - Structured finance position in a Canadian bank - Commercial aircraft leasing company - World leading staffing company - Specialty finance company focused on the needs of middle market As at 30 September 2012, the manager has distributed 54.35% of the CI SPV s September 2009 NAV over 15 distributions. CI SPV is expected to make the next cash distribution in Q The outlook for liquidating CI SPV depends on the stability of equity markets, which are required to achieve successful exits. Potential liquidity events include: - The top holding in a midsize Japanese bank is now public and trading; the manager is aiming to liquidate the position within the upcoming year (looking at the private markets as well if they can t sell the entire holding in public). - Among other Japanese investments, Cerberus is working on an IPO and sale options for its investments in a rail and property group and is looking into creating a liquidity event for its holdings in a Japanese resort hotel company. - The manager is working to selling its holding in an insurance company operator in the U.K. to a strategic buyer. Additionally, structured finance positions continue to generate a strong cash flow for the portfolio.

3 2. Styx International Fund Styx was up +1.59% in the third quarter of This has been followed by a small loss in October (-0.41%) and upside in November (+0.56%) thus leaving the fund up +3.26% YTD to 30 November Gains for the third quarter were primarily driven by coupons given the 8.88% average coupon on the portfolio. Losses came from loan mark-downs which are undergoing a problematic restructuring. As at September 2012, the Styx portfolio consists of 64 individual loans to 40 borrowers. The loan book is diversified across sectors albeit with a relatively large exposure to the consumer sector. The loan portfolio is slowly shrinking as a result of acceleration in the pace of loan payoffs in 2010 and 2011 (203 loans to 118 borrowers at the end of December 2009). Below is the composition of the Styx portfolio as at 30 September 2012 (shown as a % of Styx NAV): Top 10 positions represent approximately 47.1% The Styx portfolio is spread across all sectors with a significant exposure to the consumer sector (38.4%) Other sectors include industrials (30.9%), healthcare (10.3%), technology (6.3%), telecommunication services (4.5%), energy (2.2%), materials (1.5%), technology (0.6%) and financials (0.3%) Geographic exposure is primarily to North America (64.69%) followed by Europe (26.08%) with the remainder in the Caribbean (0.02%) Styx has historically been a floating rate lender to avoid interest rate risk, but as part of the restructuring has tried to renegotiate not only higher spreads but also interest rate floors to hedge against a drop in yields. As at the end of September, based on principal amounts, 84.05% of portfolio loans were floating rate and 15.95% were fixed rate, 49.49% of the loans have an interest floor protection The credit quality of the portfolio has deteriorated over the past few years with 45.82% of the portfolio currently rated by Standard & Poor s, although a majority of ratings remain below Investment Grade. The average rating of the portfolio is CCC (16.18%), while 2.12% of the portfolio is rated B- or above The weighted average yield to maturity of the portfolio is 7.99% The weighted average life of the portfolio has come down to 1.87 years from 3.11 years at the end of 2008 as existing loans get closer to maturity. No new deals were been funded through Styx since 2009 because it is in managed liquidation. At period end, gross and net exposure stand at 88.7%. The book is only comprised of long positions. Styx Liquidity Update Styx is in managed liquidation as of April 2010, following large redemption requests in The outlook for the portfolio is limited to the ability to recover on the existing loans given that new deals are not being financed and the manager can no longer participate in the secondary market to profit from distressed loans. A majority of the Styx portfolio consists of middle market loans which are non-tradable and hence illiquid. Styx must wait for its holdings to pay down or get refinanced. An anaemic economic recovery would certainly have a negative impact on the profitability of companies therefore reducing the interest coverage of loans. As such, a major risk in the portfolio is that the value of the collateral does not cover the value of the loan, i.e. credit mistakes. The average loan life of the portfolio is currently at 1.87 years. Cerberus expects the liquidation to take approximately 2-3 years, assuming that the average life of the portfolio gets extended as some portfolio loans approach maturity and companies look to restructure their loans. This timeline will be difficult to achieve if economic conditions deteriorate causing credit markets to collapse and more borrowers to extend loan maturities rather than repay them. Adverse selection may kick in as the portfolio becomes more concentrated. In order to maximize the value of the portfolio, maturities could get extended above the current 1.87 years. Fortunately, given currently low market interest rates, yields will not drop despite the floating rate nature of majority of the loans. Notably, a number of refinancing deals also pay fees, which supplement the return on the investments.

4 In the third quarter, Styx made a distribution of 3.29% of December 2009 NAV. The manager is ahead of target and has distributed 16.28% in 2012 and 82.15% over 19 distributions since the beginning of the liquidation in December The most notable liquidity events in the quarter were the sale of a U.S. mid-range restaurant chain; a sewing machine manufacturer; a Canadian IT consulting business and a magazine publisher. Future liquidity events include potential sales of top holdings including a U.S. specialty retailer (4.29% of Sep NAV), a U.S. manufacturer and leading provider of highly engineered electrical home and office equipment (3.84% of Sep NAV). Styx is well known for its conservative approach which is a strong positive given that, in general, the resilience of a portfolio depends on a manager s credit standards. Furthermore, Styx relies on its own work-outs and is well positioned to achieve a maximum recovery on loans. 3. Cerberus Institutional Overseas IV, Ltd. Cerberus Institutional Overseas IV, Ltd. was up in Q gaining +1.94%. This has been followed by strong performances in October and November (+1.10% and +1.64% respectively) thus leaving the fund up % YTD to 30 November In comparison, the HFRX ED: Distressed Restructuring Index was up +0.41% in the third quarter and is up +0.44% YTD to 30 November 2012 (with performances in October and November respectively -2.99% and +0.06%). Gains during Q were driven by the run up in CMBS (Collateralized Mortgage Backed Securities), RMBS (Residential Mortgage Backed Securities) and corporate structured credit. Additionally, and a holding experienced a strong rally on merger talks. Below is the composition of the Cerberus Institutional portfolio as at 30 September 2012 (% shown as a % of NAV): The Cerberus Institutional portfolio is diversified across five main strategies with a bias to private equity holdings (37.4%) and structured products (36.9%). The rest of the allocations are accounted for by distressed debt (7.5%), real estate (6.8%) and lending (0.7%) Sector exposure is diversified across several sectors including approximately 40.5% to financial assets, 15.6% to consumer discretionary, 11.1% to industrials, 10.7% to diversified financials, 7.9% to healthcare, 4.2% to energy, 1.4% to information technology, 0.1% into each consumer staples, utilities and materials and 0.4% to other. Cerberus Institutional is mainly invested in the United States (76.4%) with a smaller exposure to Europe (14.5%) and Asia (1.3%). At period end, gross and net exposure stand at 174.6% and 92.2% respectively. Long positions represent 133.4% of the September 2012 NAV while short positions represent -41.2%. Cerberus Institutional Overseas IV Update The investment period for the manager ended in November Currently, the manager is in the harvesting period and cannot make new investments. However, they are allowed to make add-on investments and harvest existing positions. Following two capital calls of 4.66% and 1.86% in November 2011, approximately 7.66% could be potentially called over the remaining life of Cerberus Institutional to make add-on investments or meet expenses. The manager expects to return the bulk of the capital in 3-4 years, but a small remainder in residual private equity holdings may take longer. Since the end of the investment period in November 2011, they have returned 25.8% of committed capital in 5 distributions thus being slightly ahead of their target to return approximately 25% per year. The distributions resulted from the liquidation of distressed positions and cash proceeds received from mortgage and loan books.

5 Important Information Unless otherwise stated all information contained in this document is from Pioneer Investments and is as at 30 September Effective 01 December 2011 DR Funds Limited has been specifically created to aggregate and manage certain illiquid investments. Special Investment Class Fund, DR AllWeather Fund, DR2 AllWeather Fund, DR AllWeather Strategies II Fund, DR2 AllWeather Strategies II Fund, DR AllWeather Liquidity Fund, DR2 AllWeather Liquidity Fund, DR AllWeather Institutional Fund, DR2 AllWeather Institutional Fund, DR Meteor Opportunities Fund and DR DebtMaster Fund (the DR Funds ) are class funds of DR Funds Limited, a Bermuda based multi-class fund company incorporated on 11th October Shares in the DR Funds will not be redeemable at the option of the shareholder until the holdings of the illiquid assets, in whole or in part, become liquid. As assets become liquid, holders of shares in the DR Funds will receive cash equal to their pro-rata holding of shares in the DR Funds in exchange for an equivalent portion of their shares in the DR Funds. Small amounts of cash received in respect of assets in the DR Funds may not be paid immediately, but held until aggregated with larger cash amounts. For further information please contact your Pioneer Investments representative. Unless otherwise stated, all views expressed are those of Pioneer Investments. 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. Past performance does not guarantee and is not indicative of future results. 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. Investments employing the strategies described in this document are by nature highly speculative and may be volatile, involve leverage, be affected by lack of liquidity or lack a readily assessable market value. More recent returns may be different than those shown. Please contact Pioneer Investments for more current performance results. Ratings are as rated by the Standard & Poor s. This document was prepared by the staff and management of Pioneer Global Investments Limited using information provided to Pioneer Global Investments Limited as at 30 September 2012 unless otherwise stated. In preparing this document, information has been received and collated from various companies comprising the Pioneer Global Asset Management S.p.A. group of companies. Whilst every effort has been made to ensure that all factual data provided is accurate based on the most current information available at the time of preparation, Pioneer Global Investments Limited cannot accept liability for any errors or omissions contained within and expressly disclaim any liability whether in contract or negligence to the addressee of this document or any third party who may review it or use any material from it in respect of any loss or damage occasioned whether direct or consequential. This material is not a prospectus and does not constitute an offer to buy or a solicitation to sell any shares of the funds described in this document or any services. For additional information on the DR Funds a free prospectus should be requested from Pioneer Global Investments Limited ( PGIL ), 1 George s Quay Plaza, George s Quay, Dublin 2, Ireland. Call Fax This information is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities or services in the United States or in any of its territories or possessions subject to its jurisdiction to or for the benefit of any United States person (being residents and citizens of the United States or partnerships or corporations organized under United States laws). The DR Funds have not been registered in the United States under the Investment Company Act of 1940 and shares of the DR Funds are not registered in the United States under the Securities Act of 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 The content of this document is approved by PGIL. In the UK, it is directed at professional clients and not at retail clients and it is approved for distribution by Pioneer Global Investments Limited (London Branch), Portland House, 8 th 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 DR Funds are unregulated collective investment schemes under the UK Financial Services and Markets Act 2000 and therefore does not carry the protection provided by the UK regulatory system. Pioneer Funds Distributor, Inc., 60 State Street, Boston, MA ( PFD ), a U.S.-registered broker-dealer, provides marketing services in connection with the distribution of Pioneer Investments products. PFD markets these products to financial intermediaries, both within and outside of the U.S. (in jurisdictions where permitted to do so) for sale to clients who are not United States persons. For Broker/Dealer of Existing Clients Use Only and not to be Distributed to the Public. Pioneer Alternative Investments and Pioneer Investments are trading names of the Pioneer Global Asset Management S.p.A. group of companies. Date of first use: 16 January 2013