Merrill Lynch Due Diligence Meeting October 2012, Boston. Commodities: Taking Advantage of Supply and Demand

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1 Merrill Lynch Due Diligence Meeting October 2012, Boston Commodities: Taking Advantage of Supply and Demand Peter Königbauer, Head of Aggressive Balanced and Real Assets, Senior Portfolio Manager For 2012 Merrill Lynch Due Diligence Meeting Attendees Only and Not to be Distributed to the Public

2 Agenda What s going on in the commodity markets and what does it mean for portfolio performance? What could be the story for next year? What do we expect for our portfolio? For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 2

3 Commodities Overview Divergence in Performance Across the Different Sectors YTD DJ-UBS CI Soybean Oil Coffee Cotton Sugar Silver Gold Nickel Zinc Copper Aluminium Soybeans Corn Wheat Lean Hogs Live Cattle Heating Oil Gasoline Crude Oil Natural Gas Brent Oil -24,0% -20,2% -15,5% -13,8% -6,5% -3,8% -2,2% -1,4% -7,8% -5,7% 4,7% 12,7% 10,8% 9,0% 5,6% 3,5% 20,7% 23,2% 25,1% 29,4% 34,4% Source: Bloomberg; Pioneer Investments, 4 October Past performance is no indicator of future results. For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 3

4 Portfolio Performance Overview Navigating a Difficult Market Pioneer Funds Commodity PF - Alpha: Performance Sectors Sectors 130 Index (Strategy) Energy Metal Agriculture Source: Bloomberg; PioneerInvestments as of Data excluding costs. For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 4

5 Expansion Slowing......We Are Now Seeing a Slowdown Across All Regions of the World World GDP GDP BRIC GDP Europe GDP USA Real GDP growth against previous year in % Source: US Bureau of Economic Analysis, Eurostat, Bloomberg, Data until 29 June For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 5

6 China Reduced its Mid-Term Growth Target The government of China wants to have more sustainable and efficient growth % GDP growth and target levels ,3 12,7 14,2 9, ,2 10,4 9,2 7, (7,5%) (7%) GDP growth GDP consensus forecast 2012 Growth target Growth target 2012 Growth target Sources: Bloomberg, Börsenzeitung, UniCredit Research, Data until June For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 6

7 Economic Forecast What We Expect ENERGY PRECIOUS METALS BASE METALS AGRICULTURE Source: Pioneer Investments, 4 October For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 7

8 Agriculture Market El Nino A Small Change With Strong Consequences Source: 17 October For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 8

9 Oil Market Political Conflict Can and Will Move The Markets Refinery Pipeline Closed Pipeline Exported oil in Mio metric tons Source: Diercke, theodora.com, IEA Stand: For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 9

10 Pioneer Funds - Commodity Alpha The Model Adjusts the Portfolio to the Economic Situation 70% Energy Metal Agriculture 60% 50% 40% 30% 20% 10% 0% -10% Source: Bloomberg; Pioneer Investments, 4 October For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 10

11 Pioneer Funds - Commodity Alpha Current Allocation: Overweight Petroleum and Grains Source: Bloomberg; Pioneer Investments, 4 October For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 11

12 Summary We believe Commodities as an asset class has the potential to deliver positive returns in 2013 As part of a diversified* portfolio, Investors should consider having commodity exposure to provide a hedge against inflation and to capture the potential for positive performance Our portfolio provides exposure through an actively managed strategy which has the ability to adapt to market trends and deliver outperformance *Diversification does not guarantee a profit or protect against a loss. For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 12

13 Important Information Unless otherwise stated all information contained in this document is from Pioneer Investments and is as at 30 September Pioneer Fund Commodity Alpha 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. This sub-fund does not invest directly in commodities. Any reference in this document to positions in or investing in commodities should be read as achieving exposure through the entering into of derivative transactions linked to the performance of commodity future indices and sub-indices. All commodity price movements based on USD and are sourced from 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. 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 contact your local sales representative for more current performance results. This material is not a prospectus and 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. For additional information on the Fund, 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 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 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, 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 Fund is an unregulated collective investment scheme 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 2012 Merrill Lynch Due Diligence Attendees Use Only and Not to be Distributed to the Public. Pioneer Investments is a trading name of the Pioneer Global Asset Management S.p.A. group of companies. Date of First Use: 24 October For 2012 Merrill Lynch Due Diligence Attendees Only and Not to be Distributed to the Public Page 13