Pioneer Investments is incorporating its UCITS III structure Pioneer Absolute Return Equity (PARE) into the mainstream Luxembourg Pioneer Funds Umbrella.
Investors in the new fund, Pioneer Funds – Absolute Return European Equity should benefit from: greater transparency – the change in portfolio structuring allows the implementation of a Long/Short equity fundamental approach using derivative instruments to provide both long and short exposure at single position level in a UCITS vehicle; increased liquidity – fhe fund will now offer daily NAV which will improve the liquidity profile in terms of subscriptions and redemptions; and reduced fees – performance will not be imported from an underlying absolute return strategy via a Total Return Swap but is generated directly within the Funds portfolio.
The fund is managed predominantly through CFD’s on long and short positions, and through sector and equity basket swaps as well as listed futures and options. Over the past three and half years the strategy has established a consistent track record with a strong asset base through PARE.
Joining a new range of absolute return strategies launched earlier this year, the Fund constitutes the next step in the evolution of Pioneer Investments absolute return capabilities. Pioneer Investments plans to add to the range later this year with the launch of two further strategies.
Pioneer Funds – Absolute Return European Equity launched and assets in the current investment vehicle merged on 21 June 2011. Investors are now in a position to take advantage of the opportunity to freely exchange from one sub-fund to another sub-fund within the Luxembourg Pioneer Funds range due its Umbrella structure.
Riccardo Cavo, Head of European Long/short Strategies and Andrea Buda, Senior Fund Manager who have managed similar strategies since 2002 will manage the Fund following the merger.
