pioneer global asset management

Pioneer Global Asset Management

New York – February 2003

2

2002 Overview

Structure and Governance

Future Perspectives

3


Pioneer Investments is part of UCI group, whose structure has been designed to exploit all the existing business potential and to drive future growth

UCI

RetailBank

Retail division

Corporate division

Private & AM division

New Europe division

Corporate bank

Privatebank

Xelion

New Europe Banks

4


Strong Senior Management Team

PGAMDario Frigerio

(CEO)

Dublin

Milan

Momentum Intl

USA

Canada

Mexico

Italy

Cont. Europe

Latin America

Asia

Poland

Czech Rep.

Turkey

Slovakia

COO

Angelo Forloni

CIO

Giordano Lombardo

USA

Dan Geraci

(CEO PIM Inc.)

INTERNATIONAL

Matteo Perruccio

(CEO PIM Sgr & Head of Intl.)

NEW EUROPE

Dan Kingsbury

(CEO N.E.)

ALTERNATIVE INV.

Alberto La Rocca

(CEO Alt. Inv.)

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Total number of employees: 1,632(as of 31 December 2002)

Audit


A lean Holding Company: strong Investment, Distribution and Operations structures

OperationsDistribution Investment

Boston

Milan Dublin

Singapore390

240

958

Pioneer Global AssetManagement

Risk Management

Global Finance

Strategic Planning

Compliance & Org.

44

Holding Company

Human Resources

Inform. Technology

Research Unit

UCI

6

Singapore

WarsawPrague

Boston

Dublin

Hong KongMiami

Buenos Aires

Paris

Madrid MilanMunichLondon


A Global Presence …

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Pioneer IM Inc

Boston

Pioneer IM Ltd

Dublin

Pioneer IM SgrpA

Milan

Pioneer IM

Singapore


… leveraging on four Manufacturing Centres

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The four pillars of Pioneer as a “Best Practice Company”

Consistency in Communication: Performance Presentation Standards - GIPS /AIMR Compliant

Risk Control: Segregated Investment and

Operational Risk Management

Asset Management: Disciplined investment

process and client oriented philosophy

Corporate Governance: Active role of

Independent Directors, Self Regulation Code

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Investment Risks are controlled within the Investment Division and are reported ultimately to the

Global Chief Investment Officer. Independent monitoring is run by Risk Management function which

reports to the Board of Directors

Operational Risks are controlled by the Risk Management function, providing guidance and support

to employees and executive management. All Pioneer employees have responsibilities for managing

operational risks.

Risk Management

Risk Management

* Portfolio Risk

DimensionsDimensions

CategoriesCategories


Focus on Risk Management

InvestmentInvestment RiskRisk * *InvestmentInvestment RiskRisk * * Operational Risk Operational Risk Operational Risk Operational Risk

OrganisationalOrganisationalOrganisationalOrganisational

MarketMarketMarketMarket CreditCreditCreditCreditBusinessBusinessBusinessBusiness EventEventEventEvent

LiquidityLiquidityLiquidityLiquidity

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2002 Overview


Future Perspectives

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EBITA in line with 2001 thanks to: Good revenue stream, due to:

product innovation in Italy strong sales in USA, New Europe and International

business areas cost control

Strong relative performance of leading funds

Higher Third Party penetration and Brand Awareness

2002 Overview

Most important achievements

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145

408597

1.376

2.863

220

579

973

3.211

1.342

-

500

1.000

1.500

2.000

2.500

3.000

3.500

US International Italy New Europe AlternativeInvestments

(1) Excluding Proprietary Funds(2) Net Sales already included in the other divisions; AuM including Momentum (acquired in Nov. 2002)

TOTAL PIONEER

Italy

(Euro mln)

USA

International

Net Sales 2001(1)

Net Sales2002(1)

5,242.3

1,375.7

2,862.6

6,045.4

3,211.1

972.7

1,342.2

17,659

2,754

103,474

New Europe 578.7

Alternative Investment(2) 145.2

407.5

596.5

220 1,520

1,522

80,655

PGAM Net Sales (Mln EUR)

2001 2002

2002 Overview – Focus on Sales

Record net sales in the US, New Europe and International business areas; positive sales in Italy

AuM31.12.’02

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Innovative Capital Guaranteed Products:

WrapAccounts

Unit Linked

Adaptable to several risk profiles

Guarantee of capital

Flexible segregated accounts, invested in Pioneer funds and securities linked to a 5-year put option

Guarantee: 100% of the investment including entry fees, plus the option cost

Maximum weight of equities: 60% of total assets

Hedge Funds

Single Strategy Hedge Funds

Funds of Hedge Funds (Momentum)

Structured products on Hedge Funds

2002 Overview – Analysis by business area

Italy - Shift towards high value added products: Capital Guaranteed, Unit Linked and Hedge Funds

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Hedge Funds:

20.18% Mkt. Share (as of 31.12.2002)

Unit Linked:

17.72% Mkt. Share (as of 30.06.2002)

Mutual Funds:

13.32% Mkt. Share (as of 31.12.2002)

UCI current accounts and other deposits:

9.50% Mkt. Share (as of 30.09.2002)

Source: Assogestioni for Mkt. Shares in Hedge and Mutual funds; IAMA for Unit Linked and ABI for UCI current accounts and other saving deposits


Italy – Benefiting from a long tradition in innovation, Pioneer has gained leading market share in new products

Innovative Products

vs.

Traditional Products

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Signed agreements with major global platforms: UBS Paine Webber, Salomon Smith Barney, Lehman Private Clients, Standard Chartered, Crédit Suisse Fund Lab., Merrill Lynch, Prudential Bache

Agreement with Primary Spanish Bank New mandate from GIC (Singapore) Penetration into new markets (HK, Switzerland)

New Mandates

First launch of guaranteed notes Launch of guaranteed products

New products

Top ranking in Chilean Pension System (out of 59) Top ranking in Merrill Lynch offshore platform Top ranking in Prudential Bache platform # 1 foreign fund brand in Germany

High Ranking


International – New mandates and new products

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Pioneer High Income Trust Lead underwriters: Merrill Lynch and UBS Paine-Webber Over $ 500 million raised in one-month offering

First closed-end mutual fund

2 asset-allocation concepts (for financial advisors)

Double Feature: combination of Pioneer Equity Income Fund and Pioneer High Yield Fund in a single portfolio offering competitive performance and low volatility through negatively correlated investments

Pioneer 4: a diversified mix of Pioneer Fund, Pioneer Mid Cap Value Fund, Pioneer Small Cap Value Fund and Pioneer High Yield Fund that outperformed the S&P 500 over the past 3+ years with significantly less volatility

Innovative principal-protected mutual fund

Over $160 million raised in less than 2 months

UNI-K: Innovative individual retirement account


USA – 2002 Major initiatives/achievements

Co-branded with Merrill Lynch and H&R Block

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Poland

Continued shift from saving deposits to fixed income funds despite tax disadvantages (+75% AUM growth)

Launch of closed-end tax-advantaged products Launch of 2 USD fixed income products (clones of Pioneer US funds)

Czech Republic

Launch of a Luxembourg funds family

Slovakia Start of sales of international products

Croatia

First-move into the market and launch of a balanced fund jointly with Zagrebacka Banka


New Europe: Leveraging on Euro-convergence and international products

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Revenues(2)

401.1

9M02 … revenues are in line with 9M01 …

107.8

Avg AuM(2)

Managerial EBITA(1)

120.7

Despite lower AuM due to market conditions …

… and EBITA improves thanks to cost control

(1) Accounting Gross Operating Inc. + Interest expenses + Non-cash Operating items. (2) Revenues from pure Asset Management business.

Good net sales trend outside Italy and related strong performance of underwriting fees (+69.4% y/y)

Confirmed commitment on cost reduction and monitoring, resulting in increased efficiency

9M01

403.9

110.3

113,8

‘02/’01% ch.

-2.3%

-0.7%

+6.1%

2002 Overview – Key Financial Indicators

Sustained profitability, despite difficult market conditions, …

9M02 9M01

9M02 9M01

Euro bn

Euro mln

Euro mln

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European Equities

Bonds

US Equities

Pioneer US High Yield Corporate Bond**

Pioneer Strategic Income**

Pioneer Euro Short Term***

Pioneer Fund*

Pioneer Small Cap Value*

Pioneer US Small Companies***

Pioneer US Mid Cap Value***

Pioneer US Value***

Pioneer Independence***

Pioneer French Equity**

Pioneer Top European Players***

Pioneer European Small Companies***

Pioneer Euro Select***

2002 Overview – Focus on Fund Performance

… coupled with strong relative fund performance in leading segments…

Note: * Over 5 years history – Comparison with peers universe for the last 5 years** Over 3 years history but less than 5 years – Comparison with peers universe for the last 3

years *** Over 1 year history but less than 3 years – Comparison with peers universe for the last 1 years

Top Quartile Funds

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… and on average overperforming benchmarks in bond and equity portfolios

0% 25% 50% 75% 100%

Balanced

Bond

Equity

Total

1 Year 3 Year 5 Year

% Funds outperforming Benchmark

1,3,5 years to December '02

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Period: January 1999 - December 2002

Italian domiciled

Pioneer Conservative Hedge

Pioneer Balanced Hedge

Pioneer High Risk Hedge

Dublin domiciled

Pioneer Global Opportunities

Pioneer Convertible Bond Arbitrage

Pioneer Global Equity Arbitrage

Pioneer Long Short European Equity

Pioneer Global Macro

Note: *Risk free rate for computing Sharpe Ratios at 4% ** Since inception (April 1999) *** Since May 1995

Momentum

All Weather Funds

Orbit Funds

Meteor Funds

Capital Guaranteed Funds


New Products: Hedge Funds

Morgan Stanley World Equity -31.1% 8.9% 16.6% -0.78%

JP Morgan Global Govt Bond

CSFB/Tremont HF Index

Pioneer Global Opportunities**

Momentum All Weather Fund***

15.0%

37.8%

26.4%

96.8%

3.6%

8.3%

6.5%

9.2%

6.9%

7.6%

4.9%

3.6%

-0.06%

0.57%

0.65%

1.19%

Annualised Volatility

Sharpe Ratio*

Annualised Return

Total Return

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2002 Overview


Future Perspectives

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ContinentalEurope

North America

New Europe

Further enhance leadership in Asset Management in

close cooperation with UCIBe the best in class

provider for UCI Group, while building international presence through selected

Third Party channels

Pioneer Investments

Position Pioneer for Market Share Growth and Introduce

Wealth Management Products

Future Perspectives – Strategic Guidelines

Leveraging on three business divisions with a clearly defined mission

Latin AmericaAsia

Mainly Bank/Insurance Captive Networks and Global Distribution

Open Platforms

Euro-convergence

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* Pertaining to Asset Managers only** The switch effect has been calculated assuming that in Europe in a 15 year time at least 45% of household financial

assets will be institutionally managed Source: PGAM Research

Medium-term sustainable AuM growth

28%28%

Disposable Income/Household financial assets

12%12%

Financial savings/Disposable Income

3.3%3.3%

0.5%0.5%

Risk premium effect

2%2%

Inflation

2.5%2.5%

Real GDP Growth

5%5%

Performance

++

xx

11%11%

AuM growth

2.7%

2.7%

Switch effect into retirement**

Net inflows

European Asset Management Revenue* and AuM growth (% Change)

7.9

-6.7

7.5

-10.9

17.6

35.6

1999-20001998-1999 2000-2001

Revenue

AuM

Is it realistic?

Financial saving

/HFA

Future Perspectives – Focus on Continental Europe

Still a positive medium-term scenario for Asset Managers in Europe ...

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Total Household managed assets*/Household financial assetsData as of 2000

* Calculated including mutual funds, pension funds, life insurance and segregated accounts** Germany, France, Italy, Spain

Source:PGAM Research on National statistics data

35%

24%30%

24%29%

59%55%

47%

France Italy Germany Spain Europe (4) **Netherlands UK US

45% target in 15 years

Penetrationpotential

Penetrationpotential


... thanks also to the expected alignment of household portfolios to Dutch, UK and US standards

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Gain recognition as

independent manager Excellence in products

such as European equities,

US value, corporate bonds Focus on high growth

segments of open platforms Customization and client

servicing for selected

channels (A.I., Structured

Products)

DistinctiveDistinctiveMissionMission

One One platform, platform,

twotwo distribution distribution

modelsmodels

DistinctiveDistinctiveMissionMission

One One platform, platform,

twotwo distribution distribution

modelsmodels

Proprietary Model

Third Party Model

Synergies and cross- fertilization

Vertical integration with

distribution Continuous innovation Scalability Operational efficiency in risk

management Advice role Brand


Our strategy: devising a winning combination of two distribution models

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Retail

Corporate

Private

Internationally recognised Brand

Best practice in client services

Ability to innovate and segment product and service offerings

“Pioneer Inside”

Cross–fertilization of global expertise

Personalised solutions/ Industrialised processes

Future Perspectives – Focus on Continental Europe/Italy

Our consolidated expertise in the proprietary model is a strong competitive advantage within UCI new organization

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Pioneer(Manufacturing)

UniCredit Private A.M.

(Specialist)

UCI Private Banking

(Relationship)

Product Development

Packaging

Profiling

Personalization of strategies on single client portfolios “personalized model”

Client relationships

Sales effort

Asset management advice

Product Development and marketing strategies

Stock Picking Modelling

A/L Risk Modelling “industrial model”


Two examples: one for the Wealth Management Division …

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Model returns on investment classesLiabilities model

Dynamic optimization model for assets-liabilitiesRisk preferences

Investment horizon

Dynamic Investment Decisions

The Pioneer/Cambridge model


… and one across all client segments including mass/affluent and institutional

Long-term Retirement Products

Capital Guaranteed & VaR Constrained

Portfolios

Multi Manager

Target Portfolios

Since 1999 Pioneer has been engaged with the University of Cambridge-UK in a joint research on Asset Liability Management, that has now delivered the first operational models.

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Focus on strategic relationships

Excellence in key products Gaining Third Party Mandates proposing “non transactional” deals Focus on Funds of Funds, Structured Products, Institutional and Private Banking

Build Hedge Funds business

Focus on key partners and value added of being integrated provider with full range of Long, Alternative + Structured Products

Brand Recognition

“Pioneer Investments is the most distinguished brand in the financial services sector in Germany”*

* Source: Capital Corporate Branding survey – Sector Analysis 2002

Future Perspectives – Focus on Continental Europe (ex Italy), LatAm and Asia

Gaining even broader recognition as leading third party player in Europe, LatAm and Asia

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Diversify Pioneer’s mix of equity and fixed income fund sales through multi-asset class fund packages (e.g., Pioneer Four, Double Feature)

Actively promote and distribute Pioneer’s hedge fund strategies (institutional and retail)

Close gaps in product range (investment styles; various disciplines)

Upcoming Initiatives

New Product Launches

Separate account strategies and capabilities

Enhanced variable annuity products now wrapped by Travelers Insurance Company

Tax deferred education savings program (i.e., 529 Plan)

Institutional mandates across all appropriate disciplines

Future Perspectives – Focus on USA

Position Pioneer USA for market share growth and introduce Wealth Management products

32

Launch clones of Pioneer Euro funds (fixed income, balanced, &equity) Launch Savings Plan program with Bank Pekao Work to shift emphasis from local fixed income to local balanced & equity

and to international strategies

Poland

Czech Republic Complete registration of fixed income portion of Luxembourg family product line Determine synergies with Zivnostenska Banka asset management

Slovakia

Croatia

Turkey

Launch a Luxembourg fund family

Launch guaranteed products

Explore and develop opportunities with new financial service joint venture between UCI and the Koc Group

Future Perspectives – Focus on New Europe

Further enhance leadership in Asset Management in close cooperation with UCI local banks

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Indust

rialis

e

d Pro

cess

Pionee

r

Personalis

ed

Solutio

ns

/

Future Perspectives – Strategy Synopsis

Our Mission: Help distributors to best service their clients by optimising portfolio strategy and risk control

pioneer global asset management

Documents

risk managementinvestment

risk management function

strong investment

segregated investment

executive management

investment division

pioneer employees

salesrecord net sales