Market Outlook and

Asset Allocation

February 2017

Multi Asset Investing

The views expressed in this presentation are those of the Multi Asset Team, and are subject to change at

any time. These views should not be relied upon as investment advice, as securities recommendations,

or as an indication of trading intent on behalf of any of Pioneer Investments’ strategies.

Page 2

ENJOY THE TRANSITION

Page 3

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

-4

-3

-2

-1

0

1

2

3

-4

-3

-2

-1

0

1

2

3

% o

f P

ote

nti

al G

DP

From DMs From EMs Global

Inflation Expected to Raise in DMClosing Output Gap

-3

-2

-1

0

1

2

3

4

5

6

Jan

-97

Fe

b-9

8

Ma

r-9

9

Ap

r-0

0

Ma

y-0

1

Jun

-02

Jul-0

3

Au

g-0

4

Se

p-0

5

Oct-

06

No

v-0

7

De

c-0

8

Jan

-10

Fe

b-1

1

Ma

r-1

2

Ap

r-1

3

Ma

y-1

4

Jun

-15

Jul-1

6

Au

g-1

7

%

US Japan Eurozone

Pioneer Investments’

Forecast

Source: Analysis by Pioneer Investments - Global Asset Allocation Research, IMF.

Data as of December 31, 2016.

Notes: Coverage: DMs – US, Eurozone, UK, Japan; EMs – China, India, Russia, Turkey, Brazil,

Mexico. Output gaps of DMs and EMs are calculated by weighted average from above

economies by each group; and then global output gap is weighted average of DMs and EMs.

Assumption: they are representative of DMs and EMs respectively.

Source: Analysis by Pioneer Investments - Global Asset Allocation Research. Thomson Reuters.

Data as of December 31, 2016.

Theme 1: Global Reflation Waves

Pioneer Investments’

Forecast

Page 4

Theme 2: Central Bank Policy Reaching a Tipping Point

Source: Pioneer Investments, February 7, 2017. Calendar dates indicate next CBs scheduled meeting. PBOC does not publish meetings schedules in advance.

FED

Two/Three hikes

expected

15

MARCH

BOE

Nimble and Willing to

Eventually Quickly Adjust

16

MARCH

ECB

Debate on Forward Guidance,

Scarcity and Economic

Momentum. Accommodative

BOJ

Focus on

Yields Targeting and

continuing QE

MARCH

169

MARCH

PBOC

Tightening Bias, Controlling

Capital Outflows, RMB and

Inflation

Page 5

Tariffs

Immigration

Trade restrictions Infrastructure spending

Tax cuts

Deregulation

Theme 3: Trump Trade

Fundamental Economic Policies Microeconomic Priorities

Source: Pioneer Investments, February 7, 2017.

Page 6

Theme 4: Emerging Markets Divergences

Emerging Markets Vulnerability Index EM: Fiscal Monitor

-15 -5 5 15

India

Peru

China

Russia

Philippines

Brazil

Mexico

Indonesia

Korea

Thailand

Malaysia

South Africa

Colombia

Chile

Czech Republic

Poland

Hungary

Turkey

Index level

Vulnerability Index January 2016

More

Vulnerable

Less

Vulnerable

Le

ss F

rag

ile

Fiscal Consolidation 2017

Turkey

Czech Republic

Russia

ChileChina

Hungary

Peru

Malaysia

South

Korea

Thailand

Mexico

Philippines

Poland

IndiaSouth Africa

Indonesia

Colombia

Brazil

70

80

90

100

110

120

130

140

-2.0-1.00.01.02.0

Revenue (%GDP)

Mo

re F

rag

ile

Fiscal Impulse 2017

Vulnerability Index takes into account: CA and Funding; External Debt and ST External Debt;

Reserve Adequacy; Domestic variables. Source: Analysis by Pioneer Investments - Global

Asset Allocation Research. January 2017 compared to January 2016. Data as of February

1, 2017.

X axis: Fiscal Impulse (IMF definition): difference of Cyclically Adjusted Primary Balance (CAPB)

between 2015 and 2016.

Y axis: Fiscal Fragility Indicator ranks the countries according to: CAPB, Gross Debt/GDP,

Expenditure/GDP, CDS, Fertility Rate, Old age dependency Ratio, Liquidity, Gov External Debt,

Reserves. Source: Analysis by Pioneer Investments - Global Asset Allocation Research. Thomson

Reuters. Data as of February 3, 2017.

Page 7

Theme 5: Top Global Hot Spots

Page 8

PLAYING ACCELERATION

Page 9

STRONGER

DM GROWTH 2 Positive on Global Equities (Japan, US, EU)

Tail Risk Hedging on Fatter Tails (USD, Gold) HEDGING RISKS5

Specific and Targeted on EM Equity, Bond, FX EM DIVERGENCES3

Navigate across the asset class spectrumSEARCH FOR

INCOME4

Investment Ideas for 2017

Negative View on Duration, Curve Steepening, BreakevenHIGHER

INFLATION1

Page 10

German Government Bond Yields Forecast

2.00%

2.41%

2.93%

3.42%

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

2Y 5Y 10Y 30Y

Yie

ld D

iffere

ntia

l

Yie

ld

Delta Yield (RHS) 1Y forward rate 2017 Target

-0.55%

0.03%

0.73%

0.0%

0.1%

0.2%

0.3%

0.4%

-1.0%

-0.5%

0.0%

0.5%

1.0%

2Y 5Y 10Y

Yie

ld D

iffere

ntia

l

Yie

ld

Delta Yield (RHS) 1Y forward rate 2017 Target

1Improving Economic Outlook: Short Duration

US Government Bond Yields Forecast

Source: Analysis by Pioneer Investments - Global Asset Allocation Research.

Yield differential between Dec 17 Forecast and 1Y forward rate. Data as of February 6, 2017.

Source: Analysis by Pioneer Investments - Global Asset Allocation Research.

Yield differential between Dec 17 Forecast and 1Y forward rate. Data as of February 6, 2017.

Page 11

Expectations Mispricing: Inflation Linkers and Curve Steepening

Breakeven Inflation US Treasury and German Bund Curve

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

10

Ye

ar

Bre

ak

eve

n I

nfl

ati

on

Germany US Japan UK

-50

0

50

100

150

200

250

300

350

2 -

10

Ye

ar

Yie

ld D

iffe

ren

tia

l in

Go

vern

me

nt

Bo

nd

s

US Curve 2-10 Year Spread

German Curve 2-10 Year Spread

1

Source: Pioneer Investments on Bloomberg data. As of February 7, 2017. Source: Pioneer Investments on Bloomberg data. As of February 7, 2017.

Page 12

Valuation

Ratios

PE 14.9 17.6 15.8 14.2 13.4 12.8 13.6 16.2 14.6

Price to Book

Value1.8 2.9 1.3 1.5 1.8 1.0 1.3 2.4 1.9

Price to SALES 1.2 2.0 0.8 1.1 0.9 0.6 1.3 2.1 1.3

Price to Cash

Flow6.7 12.5 5.4 5.8 5.6 3.8 2.8 24.7 7.6

Dividend Yield 3.4 2.1 2.0 3.4 2.6 3.9 4.0 3.5 4.0

Price to EBITDA 8.7 11.2 6.5 8.7 6.2 4.5 6.7 11.2 11.1

Very Expensive Expensive Neutral Cheap

Stronger Growth in DM – Positive on DM Equities

Equity Market Fundamentals (Forecast, horizon Dec. ’17)

Equity Market Valuations: Do They Really Matter?

Source: Analysis by Pioneer Investments - Global Asset Allocation Research on MSCI indexes.

Data as of February 2, 2017.

Source: Pioneer Investments, Bloomberg. Data available as of 1 Feb 2017. Color stands for

each market relative to their own history over a 10 year period. The price/earnings is the ratio

of market’s current share price compared to its estimated per share earnings for the current

year. The price/book value (PBV) is the ratio of market price of a company's shares (share price)

over its book value of equity. The price to sales is the ratio of the mart’s price to its revenue per

share for the trailing 12 months. The price to cash flow compares market’s price to its level of

annual cash flow. Dividend Yield is the annual dividends per share divided by the market’s

price. The price to EBITDA compares market’s price to earnings before interest, taxes,

depreciation and amortization.

2

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

US Eurozone Japan Emerging

Markets

Page 13

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

Ma

r-1

2

Jun

-12

Se

p-1

2

De

c-1

2

Ma

r-1

3

Jun

-13

Se

p-1

3

De

c-1

3

Ma

r-1

4

Jun

-14

Se

p-1

4

De

c-1

4

Ma

r-1

5

Jun

-15

Se

p-1

5

De

c-1

5

Ma

r-1

6

Jun

-16

Se

p-1

6

De

c-1

6

Ma

r-1

7

Jun

-17

Se

p-1

7

De

c-1

7

Ma

r-1

8

MSCI Em EPS Consensus exp Pioneer Forecast

Turkey

South AfricaTaiwan

Poland

India

Thailand

Czech Republic

Philippines

Malaysia

IndonesiaBrazil

China

Russia

Mexico

HungaryChile

Peru

Korea

-5

-4

-3

-2

-1

0

1

2

3

4

5

051015N

eg

ati

ve

12

M F

WD

M

acro

mo

me

ntu

m

Po

sit

ive

12

M F

WD

Ma

cro

Mo

me

ntu

mLow Fundamental Momentum High Fundamental Momentum

EM Divergences– Positive EPS Growth Offers Selective Opportunities

MSCI Emerging Market EPS Country Selection Paramount in EM Equity

Source: Analysis by Pioneer Investments - Global Asset Allocation Research. Forecast on

MSCI EM EPS in USD. Data as of January 16, 2017.

Source: Analysis by Pioneer Investments - Global Asset Allocation Research. Countries in the

top right are the most attractive. Data as of December 31, 2016.

Note: 18 Global Emerging equity markets are ranked with an overall score attributed to each

market. Overall scores are based on valuation, profitability, growth, positioning and risk,

using econometric analysis.

3

Page 14

EM Sovereign Credit

EXPENSIVE

0

50

100

150

200

250

300

CD

S 5

Yr.

Sp

rea

d, B

asis

Po

ints

Rating

AAA AA A BBB BB B

South Africa Brazil

Russia

Turkey

Hungary

Indonesia

Romania

ColombiaMexico

Philippines

Thailand

Peru

Chile

Korea

Israel

Czech Republic

Malaysia

Poland

India

CHEAP

EM Divergences – Neutral, but with Selective Opportunities

EMBI Spread

3

Source: Analysis by Pioneer Investments - Global Asset Allocation Research.

Data as of February 2, 2017.

Source: Analysis by Pioneer Investments - Global Asset Allocation Research. We consider

the median rating on External debt published by Moody, S&P and Fitch. Data as of

February 10, 2017.

Notes: we use an exponential regression in order to consider the non-linear relationship between

credit rating and spreads. The relationship allow us to estimate a “fair value” level for each spread

taking into account the credit rating of each issuer. Countries falling above the fair value line are

cheap, while the countries below are expensive.

0

100

200

300

400

500

600

700

800

2003 2005 2007 2009 2011 2013 2015 2017

Sp

rea

d B

ps

Forecast

Dec 17, 420

Page 15

Source: Bloomberg. Data as at February 7, 2017. Eurozone Bond = JPMorgan GBI Germany, Treasuries = JPMorgan GBI US, EUR IG Bonds = Barclays Pan European Aggregate Corporate Bond, US IG Bonds = Barclays US Aggregate Credit, EUR HY Bonds = Barclays

PanEuropean High Yield Bond, US HY Bonds = Barclays US Corporate High Yield, EM Bonds = JPMorgan EMBI Global, US Equities = S&P 500, Global Equities = MSCI World, European Equities = MSCI Europe, Eur High Div Equities = MSCI Europe High Dividend Yield,

Global REITs = FTSE EPRA/NAREIT Global, Global Infrastructure = Dow Jones Brookfield Global Infrastructure Index, US MLP = Alerian MLP Index. All indexes are total return in local currency. Max Drawdown is the largest 1 year decline in value registered since

December 2010 based on an analysis on monthly data. Drawdown – The peak-to-trough decline during a specific record period of an investment, fund or commodity, usually quoted as the percentage between the peak and the trough. Yield is the Yield to maturity for

bonds and the dividend yield for equities. Data represents past performance, which is no guarantee of future results. Data represents past performance, which is no guarantee of future results..Please see additional MSCI disclaimer in the Additional Notes.

Income: Broaden the Asset Class Spectrum but be Aware of Risk

Asset Classes Yields and Drawdown

0.4

2.4

1.3

3.2

4.3

5.7

5.5

2.0

2.5

3.5

5.2

4.1

3.6

6.7

-6.0

-4.8

-3.7

-5.2

-12.0

-9.7

-10.3

-16.3

-19.4

-18.8

-12.8

-19.9

-16.7

-41

-30 -25 -20 -15 -10 -5 0 5 10

Eurozone Bond

Treasuries

Eur IG Bonds

US IG Bonds

Eur HY Bonds

US HY Bonds

EM Bonds

US Equities

Global Equities

European Equities

Eur High Div Equities

Global REITs

Global Infrastructure

US MLP

Go

vt

Bo

nd

s

Co

rp &

EM

Bo

nd

sE

QU

ITY

RE

ITs

1 Year Max Drawdown (%) Current Yield (%)

-40

4

Page 16

Policy Uncertainty Index & USDVolatility in Fixed Income and Equity

5

10

15

20

25

30

35

40

50

60

70

80

90

100

110

120

VIX

Ind

exM

ove

In

de

x

Move Index (left scale) VIX Index (right scale)

50

100

150

200

250

300

350

1000

1050

1100

1150

1200

1250

1300

Bloomberg Dollar Spot Index (Left Scale)

Global Policy Uncertainty Index (Right Scale)

5

Hedging: Gold and USD May Help to Protect from Tail Risk and Market

Complacency

Source: Analysis by Pioneer Investments, Bloomberg. Data as of February 2, 2017.

Note: VIX is CBOE Volatility Index, Move Index is the Merrill Lynch Option Volatility Estimate

for the Treasury. Source: Analysis by Pioneer Investments, Bloomberg. Data as of February 2, 2017.

Page 17

ASSET CLASS

ECONOMICBACKDROP(50%)

VALUATION

(20%)

RISK SENTIMENT(20%)

TECHNICAL

(10%)ASSESSMENT

Core Government

Bonds

Core Credit

EM Bonds

Global Equity

EM Equity

Commodities

MediumPoor Good

2017 Asset Class Assessment

Source: Analysis by Pioneer Investments - Global Asset Allocation Research. Data as of February 2, 2017.

Page 18

Our New Macro and Investment Outlook Toolkit

Page 19

Disclaimer

The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of

any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from

making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future

performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use

made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively,

the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement,

merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any

liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages.

Unless otherwise stated all information contained in this document is from Pioneer Investments Multi Asset Team and is as at February 2,2017.

The views expressed regarding market and economic trends are those of the author and not necessarily Pioneer Investments, and are subject to change at any time.

These views should not be relied upon as investment advice, as securities recommendations, or as an indication of trading on behalf of any Pioneer Investment product.

There is no guarantee that market forecasts discussed will be realized or that these trends will continue.

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.

Indices are unmanaged and their returns assume reinvestment of dividends, and unlike Fund returns, do not reflect any fees or expenses. It is not possible to invest

directly in an index.

Diversification does not guarantee a profit or protect against a loss. Unless otherwise stated, all information contained in this document is from Pioneer Investments Multi

Asset Team and is as of February 2, 2017.

This material does not constitute an offer to buy or a solicitation to sell any units of any investment fund or any service. Pioneer Investments is a trading name of the

Pioneer Global Asset Management S.p.A. group of companies.

Date of First Use: February 20 2017.