Pioneer Funds U.S. Research & Pioneer Funds U.S. Research Growth Investment Conference, Boston, March 2010 John Peckham CFA, Head of Global Fundamental Research Ashesh Savla Associate Portfolio Manager For Broker/Dealer Use Only and Not to be Distributed to the Public
Pioneer Investments US Equity Investment Philosophy We believe in a consistent, disciplined investment process based on fundamental research, quantitative analysis and active portfolio management. This three-pillared approach is supported by an integrated team, and results in the careful balance of risk and reward that we apply to each of our investment portfolios. For Broker/Dealer Use Only and Not to be Distributed to the Public March 2010 Page 2
Pioneer Funds U.S. Research Investment Process Screening Investable Universe Qualitative Research Portfolio Construction Sell Discipline Emphasis on S&P 500 Index companies Typical market capitalisation > US$10 billion Research those securities which offer attractive risk / reward ratio through analysis of industry structure, business outlook and financials, focusing on: Above average ROE and operating margins Strong balance sheet Catalyst for incremental earnings power Diversified portfolio of approximately 100 holdings. Initial positions 1%; top 10 holdings typically represent 20% 25%* Sectors generally +/ - 1% of S&P 500 Index* Typically holding period of 1 to 2 years Deteriorating fundamentals Earnings slowdown Loss of market share Change in capital structure Outlook becomes uncertain Management commitment to shareholder value Superior returns on invested capital Risk Management * Note: These are internal guidelines and not prospectus limits and may be subject to change over time. The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure of the broad US stockmarket. Indices are unmanaged and their returns assume reinvestment of dividends and, unlike mutual fund returns, do not reflect any fees or expenses associated with a mutual fund. It is not possible to invest directly in an index. For Broker/Dealer Use Only and Not to be Distributed to the Public March 2010 Page 3
Pioneer Funds U.S. Research Characteristics as of 31 December 2009 Information Technology Financials Sector Weights 14.4% 14.3% 19.4% 19.9% Top Ten Holdings Sector Portfolio % S&P 500 Index % Chevron Energy 3.2 1.6 Apple Information Technology 2.9 1.9 Microsoft Information Technology 2.2 2.4 Health Care Energy Consumer Staples Industrials 12.7% 12.6% 11.7% 11.5% 11.3% 11.4% 10.3% 10.3% Pfizer Health Care 2.2 1.5 Google Information Technology 2.1 1.5 JP Morgan Chase Financials 2.1 1.7 Cisco Systems Information Technology 2.1 1.4 Wells Fargo Financials 1.9 1.4 3M Industrials 1.9 0.6 Colgate Palmolive Consumer Staples 1.7 0.4 Consumer Discretionary 9.3% 9.6% Utilities 3.7% 3.7% Portfolio % Materials 3.4% S&P 500 % 3.6% Telecommunication Services 3.2% 3.2% 0% 5% 10% 15% 20% 25% Characteristics Portfolio S&P 500 Index Weighted Avg. Market Cap. US$66.9B US$80.9B Median Market Cap. US$19.5B US$8.9B Average P/E Ratio (Trailing) 24.6x 23.2x Average P/E Ratio (FY1) 19.0x 19.0x Return on Assets (3 Yrs) 8.0% 8.5% Return on Equity (3 Yrs) 18.7% 20.0% The Portfolio is actively managed and current holdings and characteristics may be different. The holdings listed should not be considered recommendations to buy or sell any particular security listed. The Standard & Poor's 500 Stock Index (the S&P 500) is a commonly used measure of the broad US stockmarket. Indices are unmanaged and their returns assume reinvestment of dividends and, unlike mutual fund returns, do not reflect any fees or expenses associated with a mutual fund. It is not possible to invest directly in an index. Source: Pioneer Investment, 31 December 2009 For Broker/Dealer Use Only and Not to be Distributed to the Public March 2010 Page 4
Pioneer Funds U.S. Research Trailing Returns Fund % Benchmark % Relative % 1 Month 3 Months YTD 1 Year 3 Years Ann. 5 Years Ann. 4.28 1.78 2.46 6.56 5.49 1.02 28.85 23.45 4.37 28.85 23.45 4.37-4.57-7.68 3.37 1.08-1.65 2.77 Source: Pioneer Investments as at 31 December 2009. Performance figures are in USD and have been converted from the Sub-Fund s base currency, the euro. Performance data provided refers to Class A units only, and is based upon NAV net of fees. For details of other unit Classes available, please refer to the prospectus. For Broker/Dealer Use Only and Not to be Distributed to the Public March 2010 Page 5
Pioneer Funds U.S. Research Calendar Year Returns 2005-2009 Fund % Benchmark % Relative % 2009 (YTD) 2008 2007 2006 2005 28.85 23.45 4.37-36.39-38.49 3.41 6.00 3.51 2.40 14.90 13.62 1.13 5.71 3.00 2.63 Source: Pioneer Investments as at 31 December 2009. Performance figures are in USD and have been converted from the Sub-Fund s base currency, the euro. Performance data provided refers to Class A units only, and is based upon NAV net of fees. For details of other unit Classes available, please refer to the prospectus. For Broker/Dealer Use Only and Not to be Distributed to the Public March 2010 Page 6
Pioneer Funds U.S. Research Risk Analysis Standard Deviation (3 Years) 17.86% Sharpe Ratio (3 Years) -0.42 Alpha 1.48% Beta 0.9302 R-Squared 0.9398 Relative Information Ratio 1.10 Tracking Error 5.72% Source: Pioneer Investments as at 31 December 2009. Risk Measures, except Standard Deviation and Sharpe Ratio, are based on Class E Units, which are only offered for public sale in Italy. Standard Deviation and Sharpe Ratio: Lipper. For Broker/Dealer Use Only and Not to be Distributed to the Public March 2010 Page 7
Pioneer Funds U.S Research Growth Characteristics as of 31 December 2009 Sector Weights Information Technology 32.2% 33.2% Health Care 15.5% 15.9% Consumer Staples 15.6% 15.7% Consumer Discretionary 10.3% 10.5% Industrials 10.3% 10.1% Financials 5.3% 4.9% 4.1% Materials 3.9% 3.8% Energy 4.3% Portfolio % 1.1% Utilities 0.9% Russell 1000 Growth % 0.8% Telecommunication Services 0.6% 0% 5% 10% 15% 20% 25% 30% 35% Top Ten Holdings Apple Sector Portfolio % Information Technology 4.8 Russell 1000 Growth Index % Microsoft Information Technology 4.7 4.2 Google Information Technology 4.4 2.6 Cisco Systems Information Technology 4.3 2.5 Wal-Mart Consumer Staples 4.1 2.1 Hewlett-Packard Information Technology 3.6 1.7 Phillip Morris Consumer Staples 3.6 1.7 Oracle Information Technology 3.1 1.7 United Technologies Industrials 2.9 0.9 Amgen Health Care 2.6 1.0 Characteristics Average P/E Ratio (FY1) Portfolio 3.4 Russell 1000 Growth Index % 17.3x 19.9x Price/Book Ratio 5.0x 5.1x Weighted Ave. Market Cap (billion) US$78.9B US$77.6B Median Market Cap (billion) US$21.5B US$4.4B The Portfolio is actively managed and current holdings and characteristics may be different. The holdings listed should not be considered recommendations to buy or sell any particular security listed. The Russell 1000 Growth Index measures the performance of large-cap US growth stocks. Indices are unmanaged and their returns assume reinvestment of dividends and, unlike mutual fund returns, do not reflect any fees or expenses associated with a mutual fund. It is not possible to invest directly in an index. Source: Pioneer Investments, 31 December 2009 For Broker/Dealer Use Only and Not to be Distributed to the Public March 2010 Page 8
Pioneer Funds U.S. Research Growth Trailing Returns Fund % Benchmark % Relative % 1 Month 3 Months YTD 1 Year 3 Years Ann. 5 Years Ann. 4.07 3.09 0.95 7.59 7.94-0.33 35.72 37.21-1.08 35.72 37.21-1.08 - - - - - - Source: Pioneer Investments as at 31 December 2009. Performance figures are in USD and have been converted from the Sub-Fund s base currency, the euro. Performance data provided refers to Class A units only, and is based upon NAV net of fees. For details of other unit Classes available, please refer to the prospectus. For Broker/Dealer Use Only and Not to be Distributed to the Public March 2010 Page 9
Pioneer Funds U.S. Research Growth Calendar Year Returns 2009 Fund % Benchmark % Relative % 2009 (YTD) 35.72 37.21-1.08 Source: Pioneer Investments as at 31 December 2009. Performance figures are in USD and have been converted from the Sub-Fund s base currency, the euro. Performance data provided refers to Class A units only, and is based upon NAV net of fees. For details of other unit Classes available, please refer to the prospectus. For Broker/Dealer Use Only and Not to be Distributed to the Public March 2010 Page 10
Pioneer Funds U.S. Research Growth Risk Analysis Standard Deviation (1 Year) 16.68% Sharpe Ratio (1 Year) Alpha 1.81 1.39% Beta 0.8078 R-Squared 0.8887 Relative Information Ratio Tracking Error 0.27 11.10% Source: Pioneer Investments as at 31 December 2009. Risk Measures, except Standard Deviation and Sharpe Ratio, are based on Class E Units, which are only offered for public sale in Italy. Standard Deviation and Sharpe Ratio: Lipper. For Broker/Dealer Use Only and Not to be Distributed to the Public March 2010 Page 11
Important Information Unless otherwise stated all information contained in this document is from Pioneer Investments and is as at 31/12/2009. Pioneer Funds U.S. Research and Pioneer Funds U.S. Research Growth are sub-funds (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. 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 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 +353 1 480 2000 Fax +353 1 449 5000. 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 1933. 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), 123 Buckingham Palace Road, London SW1W 9SL, authorised by the Financial Regulator in 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 02109 ( 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. Pioneer Investments is a trading name of the Pioneer Global Asset Management S.p.A. group of companies. For Broker/Dealer use only and not for distribution to the public Date of First Use: 10 March 2010 For Broker/Dealer Use Only and Not to be Distributed to the Public March 2010 Page 12