Pioneer Investment and Ibbotson Associates announced a joint launch of the Pioneer Ibbotson Conservative Allocation Fund. The new portfolio, aimed to provide long-term capital growth and current income for risk-averse investors, will be the fourth in the family of the Pioneer Ibbotson Asset Allocation Funds.
The series has reached $100 million in assets since its launch of Pioneer Ibbotson Moderate Fund, Pioneer Ibbotson Growth Fund and Pioneer Ibbotson Aggressive Fund in August of 2004. Management and assets allocation of the portfolios, structured as "funds-of-funds" out of select group of Pioneer mutual funds, is daily conducted by Ibbotson,.
In the case of the new conservative portfolio, 30% of assets will be invested in domestic or international equities, while 70% will go into debt instruments. This is a significantly more prudent strategy compared to the Pioneer Ibbotson Moderate Fund, Pioneer Ibbotson Growth Fund and Pioneer Ibbotson Aggressive Fund. These existing funds are allocated to invest 60% equities and 40% in bonds; 75% equities and 25% bonds; and 90% equities and 10% bonds, respectively.
Pioneer had $42.7 billion in assets under management at the end of the first quarter of 2005. It is the