Pioneer Funds Absolute Return European Equities

Transcription

1 Pioneer Funds Absolute Return European Equities Fiona English, Client Portfolio Manager September 2016 Page 1 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

2 Pure Alpha is a Precious Commodity! What are the Risks for Absolute Return Investors? Increased Manager Risk Solution: Dilute this risk through multiple Alpha Sources Drawdown Risk Solution: Aims to protect the Alpha through multiple layers of Drawdown Management Page 2 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

3 Pioneer Funds Absolute Return European Equity Targeting Positive Returns Independent of Market Direction MARKET NEUTRAL PORTFOLIO Focus on alpha generation Seeks to eliminate beta Low correlation with equities and bonds PROVEN STOCK-PICKING CAPABILITIES Experienced Investment Team Bottom-Up Fundamental Approach To Stock Selection Each team member involved in process Gross Exposure Max 250% Net Exposure -10% - +10% AUM 326m Number of Positions Corresponding Performance Target 1 Eonia +5-6%** CLEAR RISK PARAMETERS Target Volatility Range 2 4% (max.6%**) Risk budget defined for each alpha sleeve Multiple layers of risk management seeks to dampen volatility and minimise loss of capital Risk Budgeting framework via dedicated Portfolio Construction team Liquidity ** over 3 yrs rolling Source: Pioneer Investments, as at 29 July The Performance Target can be exceeded or undershot and should not be construed as an assurance or guarantee. 2 The internal guidelines referenced do not necessarily represent statutory limitations. These guidelines are used in the daily management of the strategy s investments, are subject to change and should not be relied upon as a long-term view of the strategy s exposures, limitations and/or risks. Daily Liquidity UCITs vehicle Page 3 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

4 Long/Short European Equity 3 Groups of Specialists Contribute to the Process Diego Franzin Head of Equity Ali Chabanne Head of Portfolio Construction Fabio Di Giansante Head of Long Short European Equity Lorenzo Angelini Portfolio Manager Patrick Marshall Dedicated Analyst Portfolio Construction Analyst Alpha Sources Marco Motta Consumer Discretionary Martin Dolan Consumer Staples Patrick Marshall Industrials Philip Molloy Utilities/Autos Luca Corona IT, Telecom Small Cap Team Gianluca Spingola Financials Virna Valenti Financials Michael Murphy Energy Michael Morris Materials Nick Aslibekian Healthcare Fabio/Lorenzo Trading Book Patrick Marshall Shorts Book Source: Pioneer Investments as at May Page 4 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

5 3 Step Process in Which Every Team Member Influences Performance Clear Targets and Risk Budget Defined For Each Alpha Sleeve Each Alpha Sleeve is Built Around: Long Positions Short Positions Pair Trades Each Alpha Sleeve is continuously monitored and drawdown controlled Page 5 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

6 Uncorrelated Alpha Strategies Target Return and Current Positions for Each Alpha Sleeve Sleeve Target Return *Expected Hit Ratio of 50% IR Dispersion of Sector Risk Budget Banks % 1.17 Consumer Staples % 2.10 Diversified Financials/Insurance %/17.07% 0.84(DF) 0.86(I) Consumer Discretionary Ex Autos % 1.69 Autos/Utilities %/14.79% 0.71(A) 0.99(U) Industrials % 1.73 Healthcare % 1.87 Materials % 1.45 IT/Telecoms %/15.30% 0.75 (I) 0.96 (T) Energy % 1.55 Shorts Book Trading Small Cap Source: Pioneer Investments 4 January 2016 IR = Information Ratio *Target return can be exceeded or undershot and should not be construed as an assurance or guarantee. Risk Allocation based on Past volatility and Dispersion in sector. Page 6 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

7 Investment Framework: Bottom-Up Fundamental Approach to Long and Short Stock Selection Structural Winners Exploiting Volatility Quality Companies with Strategic Competitive Advantage Sustainable Growth Clear Valuation Upside LONG CORE HOLDINGS LONG OPPORTUNISTIC HOLDINGS Restructuring Stories/Large Margin of Safety Top Down Views/Themes through Single Stock Selection Structural Losers Business Model Under Threat Competitive Pressures Technological Obsolescence For illustrative purposes only. SHORT CORE HOLDINGS SHORT OPPORTUNISTIC HOLDINGS Valuation adjustments Quality Companies where the Market is Extrapolating High Growth into the Future Moderation in Expectations Page 7 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

8 Pair Trades Only initiated where companies are natural pairs Natural Peers in same sector where business strategy or execution is different Seeking to capitalise on mean reversion Efficient manner to hedge systematic risk at trade level Page 8 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

9 Dynamic Drawdown Management at Each Strategy Level Pre-Defined Risk and Performance Targets* Ex-ante Risk for Consumer Discretionary % 2,00 1,00 Comparison of actual risk level to the planned risk budget for the sleeve 0,00 Monitoring of achieved performance with regard to desired target* and drawdown levels Ex-ante Risk Performance for Consumer Discretionary % 1,50 1,00 0,50 0,00-0,50-1,00 Band 1 Performance Target Return* Band 1 Source: Pioneer Investments for Illustrative purposes only. In the graphs above, the phrase Band 1 represents the allocated level of risk for a given alpha sleeve. *Targets can be exceeded or undershot and should not be construed as an assurance or guarantee. Page 9 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

10 Bringing it all Together PM seeks to evaluate portfolio in total to ascertain risk 01 Work with risk budgeting at portfolio level to understand risks across entire portfolio 02 Market Hedge put in place to eliminate any residual risk 03 Correlation of different strategies Total portfolio drawdown Page 10 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

11 Correlation Analysis Between Strategies FX-Hedge Hedge Sector - Autos Sector - Banks Sector - Consumer Discretionary Sector - Consumer Staples Sector - Diversified Financials Sector - Energy Sector - Healthcare Sector - IT Sector - Industrials Sector - Insurance Sector - Materials Sector - Telecoms Sector - Utilities Short Small Cap Core Startegy FX-Hedge Hedge Sector - Autos Sector - Banks Sector - Consumer Discretionary Sector - Consumer Staples Sector - Diversified Financials Sector - Energy Sector - Healthcare Sector - IT Sector - Industrials Sector - Insurance Sector - Materials Sector - Telecoms Sector - Utilities Short Small Cap Core Startegy Source: Pioneer Investments 31 August 2016 Page 11 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

12 Contribution to Risk of Different Strategies Bps Hedge Long Pairs Short Core Strategy Standalone Risk Tracking Error Contribution Source: Pioneer Investments 31 August 2016 Page 12 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

13 Performance by Strategy (On a Market Neutral Basis) 12,00% 10,00% 8,00% 6,00% 4,00% 2,00% 0,00% -2,00% -4,00% Core Strategy Hedge Long Pairs Short Grand Total Source: Pioneer Investments 29 July Past performance does not guarantee and is not indicative of future results. Each strategy versus the MSCI Europe index Page 13 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

14 Pioneer Funds Absolute Return European Equity Historical Performance Since Portfolio Manager Inception* Fund % 2016 YTD -0.40% 2015 FY 7.33% 2014 FY -0.3% 2013* 5.4% 3 Year Ann 2.81% Sharpe Ratio 1 Year Years Ann Source: Pioneer Investments, as 31 August Referring to Pioneer Funds Absolute Return European Equity I Class EUR net of fees. Class I of the Sub-Fund is reserved to institutional investors and is subject to an initial subscription of EUR 10 million or more (or the equivalent in another currency). For details of other unit classes please refer to the Prospectus. Fund inception is 21 June *Performance is highlighted from 1 April 2013 as the day Fabio Di Giansante starting managing the sub- fund. Past performance does not guarantee and is not indicative of future results. Page 14 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

15 Why Pioneer Funds - Absolute Return European Equity? 1 Seeks Positive Returns Regardless of Market Direction 2 Team Focus on Alpha Generation = Seek to reduce Risk Management 3 Seeks Alpha Protection Through Multiple Layers of Risk Management 4 Low Correlation with Equities and Bonds Page 15 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

16 Agenda 1. Current Market Environment 2. Pioneer Funds- Absolute Return European Equity 3. Appendix Page 16 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

17 Gross/Net Exposure Evolution 180,00% 160,00% 140,00% 120,00% 100,00% 80,00% 60,00% 40,00% 20,00% 0,00% 4/30/2013 5/31/2013 6/30/2013 7/31/2013 8/31/2013 9/30/ /31/ /30/ /31/2013 1/31/2014 2/28/2014 3/31/2014 4/30/2014 5/31/2014 6/30/2014 7/31/2014 8/31/2014 9/30/ /31/ /30/ /31/2014 1/31/2015 2/28/2015 3/31/2015 4/30/2015 5/31/2015 6/30/2015 7/31/2015 8/31/2015 9/30/ /31/ /30/ /31/2015 1/31/2016 2/29/2016 3/31/2016 4/30/2016 5/31/2016 6/30/2016 7/31/ ,00% Net Exposure Gross Exposure Source: Pioneer Investments 29 July 2016 Page 17 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

18 Our Investment Process Has Ensured A Consistent Return Profile 2,50 1,50 0,50 % -0,50-1,50-2,50-3,50 Apr 13 Mai 13 Jun 13 Jul 13 Aug 13 Sep 13 Okt 13 Nov 13 Dez 13 Jan 14 Feb 14 Mrz 14 Apr 14 Mai 14 Jun 14 Jul 14 Aug 14 Sep 14 Okt 14 Nov 14 Dez 14 Jan 15 Feb 15 Mrz 15 Apr 15 Mai 15 Jun 15 Jul 15 Aug 15 Sep 15 Okt 15 Nov 15 Dez 15 Jan 16 Feb 16 Mrz 16 Apr 16 Mai 16 Jun 16 Jul 16 Pioneer Fds Abs Ret Europ Eq A EUR ND +/- 1 Std Dev* *Standard Deviation +/- 0.97% Source Morningstar, as at 31 July Performance is highlighted from 1 April 2013 as the day Fabio Di Giansante starting managing the sub- fund. Past performance does not guarantee and is not indicative of future results. Referring to Pioneer Funds Absolute Return European Equity A Class EUR net of fees The full legal name of the fund is Pioneer Funds Absolute Return European Equity. Page 18 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

19 Distribution of Monthly Returns Since Portfolio Manager Inception Source: Morningstar Direct as at 31/07/2016. Performance is net of fees, highlighted from 01 April 2013 as the day Fabio Di Giansante starting managing the sub- fund. Past performance does not guarantee and is not indicative of future results. The full legal name of the fund is Pioneer Funds Absolute Return European Equity. Page 19 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

20 Pioneer Funds Absolute Return European Equity A, EUR, ND Fondsart Absolute-Return-Fonds ISIN LU WKN A1JA6V Bloomberg Ticker PIAREAE LX Erste Kursfeststellung Ausgabeaufschlag 5,00% Verwaltungsvergütung p.a. 1,60% Performancevergütung 0,03% zum Gesamtkostenquote 1,86% zum Ertragsverwendung Thesaurierend Fondsvolumen (alle Anteilsklassen) 338,6 Mio. EUR zum Page 20 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

21 Pioneer Funds Absolute Return European Equity I, EUR, ND (Mindestanlage 10 Mio. Euro) Fondsart Absolute-Return-Fonds ISIN LU WKN A1JAYQ Bloomberg Ticker HVBPARI LX Erste Kursfeststellung Ausgabeaufschlag -- Verwaltungsvergütung p.a. 0,80% Performancevergütung 0,16% zum Gesamtkostenquote 0,90% zum Ertragsverwendung Thesaurierend Fondsvolumen (alle Anteilsklassen) 338,6 Mio. EUR zum Page 21 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

22 Additional Notes The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an as is basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the MSCI Parties ) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. ( Page 22 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public

23 Disclaimer Unless otherwise stated all information contained in this document is from Pioneer Investments and is as at 31 August Pioneer Funds Absolute Return European Equity is a sub-fund (the Sub-Fund ) 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. Class I of the Sub-Fund is reserved to institutional investors and is subject to a minimum subscription of EUR 10 million (or currency equivalent). Class I of the Sub-Fund is reserved to institutional investors and is subject to an initial subscription of EUR 10 million or more (or the equivalent in another currency). The Fund may not be registered for sale with the relevant authorities in your jurisdiction. Where unregistered, the Fund may not be sold or offered except in the circumstances permitted by law. The Fund may not be regulated or supervised by any governmental or similar authority in your jurisdiction. This material does not constitute an offer to buy or a solicitation to sell any units of the Fund or any services, by or to anyone in any jurisdiction in which such offer or solicitation would be unlawful or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation. 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 Restricted U.S. Investor (as defined in the prospectus of the Fund). The Fund has not been registered in the United States under the Investment Company Act of 1940 and units of the Fund are not registered in the United States under the Securities Act of Past performance does not guarantee and is not indicative of future results. 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 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 seek professional advice and read the prospectus carefully before you invest. This material is not a prospectus, a free prospectus is available from Pioneer Global Investments Limited, 1 George s Quay Plaza, George s Quay, Dublin 2, Ireland. Call Fax or your local Pioneer Investments sales office. The Sub-Fund s prospectus and Key Investor Information document ( KIID ) are also be available on This document does not constitute investment advice or any offering of units and does not take account of the investment objectives or needs of or suitability for a specific investor. Pioneer Investments is not making any representation nor does this document constitute a representation with respect to (i) the eligibility of any recipients of this document to acquire units in the Fund in any jurisdiction or (ii) the eligibility of any recipients of this document to receive this document in any jurisdiction. If you are in doubt about the content of this document or your eligibility, you should obtain independent professional advice. 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 Pioneer Global Investments Limited. In the UK, it is approved for distribution by Pioneer Global Investments Limited (London Branch), Portland House, 8 th Floor, Bressenden Place, London SW1E 5BH. Pioneer Global Investments Limited is authorised and regulated by the Central Bank of Ireland and subject to limited regulation by the Financial Conduct Authority. Details about the extent of our regulation by the Financial Conduct Authority ( FCA ) are available from us on request. The Fund is an unregulated collective investment scheme under the UK Financial Services and Markets Act 2000 ( FSMA ) and therefore does 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 employeesacting for such entities in relation to investment; high value entities falling within article 22 CIS Order and their directors, officers and employeesacting for such entities in relation to investment; other persons who are in accordance with the Rules of the FCA 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. Pioneer Investments is a trading name of the Pioneer Global Asset Management S.p.A. group of companies. Date of First Use: 12 September 2016 Page 23 I For Attendees of the NGF Conference Only and Not to be Distributed to the Public