Pioneer Investments:



Portfolio Management

Tanguy Le Saout
Head of European Fixed Income and Co-Portfolio Manager

Cosimo Marasciulo
Head of European Government Bonds - Europe, and Co-Portfolio Manager

Pioneer Absolute Return Bond Fund

While fixed income investors have generally benefited from quantitative easing, the Federal Reserve does intend to raise interest rates eventually. In such an environment, any exposure to duration (sensitivity of a bond to rising interest rates as expressed in years) can cause losses. The Fund seeks to:

  • Provide total return with capital preservation, to help investors pursue consistent, positive returns in all market environments

  • Use investment strategies uncorrelated* to duration, to help enhance portfolio diversification** and pursue positive returns

  • Maintain low volatility in the range of 3-month U.S. Treasury Bills

* Correlation is the degree to which assets or asset prices move in relation to one another. A correlation of +1 implies that they move in lockstep, in the same direction. A correlation of -1 implies they move in opposite directions. A zero correlation indicates their movements are completely random.
** Diversification does not assure a profit or protect against a loss in a declining market.

The Danger of Duration

The potential for increased volatility due to rising interest rates is concerning for investors who have relied on conventional wisdom for asset allocation and diversification. The danger lies with duration Ė the sensitivity of a bondís value to a rise in interest rates.

Source: Bloomberg and U.S. Federal Reserve. Data as of 12/31/2013. Calculations include yield. Data represents past performance, which is no guarantee of future results. This effect only applies if the bonds are sold prior to maturity. Changes in interest rates may have a different effect on other types of fixed income investments based on various factors including duration and credit rating.

Pioneer Absolute Return Bond Fund Seeks to Make Efficient Use of Risk

The Fundís distinctive investment strategy seeks to make the most efficient use of duration and credit risk in pursuit of absolute return by splitting the portfolio into two separately managed components:

**Alpha refers to the additional return produced from a portfolio manager above that of a passive index.

Who Might Invest in this Fund?

Pioneer Absolute Return Bond Fund may be suitable for a wide range of investors, but particularly for those who:

  • Seek total return and capital preservation across all market conditions
  • Seek diversification through strategies with returns uncorrelated to rising interest rates or the broader fixed income market
  • Seek to reduce risk caused by rising interest rates and increasing global market volatility