Pioneer Investments Management Inc

  • Overview

Hitting eighty

Pioneer Investments celebrated its 80th anniversary in 2008, having evolved significantly since Barron's journalist Philip L. Carret began the Pioneer Fund, the third-oldest mutual fund in the United States.  Carret's initial investment consisted of $25,000 collected from friends and family that he invested primarily in undervalued stocks.  By 1951, Pioneer Fund's assets had exceeded $1 million, and the fund counted 500 investors.

The firm spent the second half of the 20th century aggressively expanding in the United States, Asia and Europe.  It became the first investment management firm to launch mutual investments in Italy, the first foreign investment fund in Germany and the first open-ended fund in Poland.  In 1999, Pioneer launched a hedge fund family, later called Pioneer Alternative Investments.

Pioneer offers mutual funds, separately managed accounts, institutional funds, single manager hedge funds, funds of hedge funds and alternative structured products to retail investors and institutions around the globe.  The firm's U.S. retail products are sold exclusively through financial advisors and third-party firms.  Pioneer's asset management philosophy rests on three pillars: fundamental research, quantitative research and portfolio construction.  Pioneer performs more than 90 percent of the research required in portfolio management in-house.  Italian bank UniCredit acquired the Pioneer Group in 2000.  UniCredit is the third-largest bank in Germany and has 40 million customers in 22 European countries.  The bank has more than 10,000 branches and about 168,000 employees worldwide.

Changing compensation

In May 2007, Pioneer announced it would carry out a new compensation plan aimed at aligning managers' interests with shareholders' interests and emphasizing long-term gains.  The plan ties 80 percent of portfolio managers' bonuses to pretax returns against benchmarks for a four-year period ending December 31 of each year.  The other 20 percent of the bonus stems from qualitative performance measures, such as teamwork, leadership, communications and marketing.  The company's annual bonus pool is increased or decreased based on Pioneer's overall results.  Senior executives may also receive equity based on the performance of UniCredit.

International expansion

In October 2007, Pioneer Investment signed an asset management joint venture agreement with Bank of Baroda in India, expanding its presence in India's mutual fund market.  Also that month, the firm announced the launch of its business in Russia and the future appointment of Elena Loginova to the role of general director of Pioneer Investments Russian subsidiary.  The business began with the launch of four investment funds in September.  The move comes as UniCredit makes a push into retail investment banking in Russia with plans to double the number of branches belonging to its subsidiary International Moscow Bank to more than 100.  The eastern European arm of UniCredit completed the acquisition of Russian brokerage Aton Capital in September 2007.



Pioneer Investments Management Inc


60 State Street
Boston, MA 02109
Phone: (617) 742-7825
Fax: (617) 422-4231
www.pioneerinvestments.com

STATS


  • Employer Type: Private
  • President & CEO: Daniel K. Kingsbury
  • 2008 Employees: 2,300

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