Pioneer Investments plans to increase its U.S. institutional assets under management annual growth rate expectations to $2 billion by 2016, from $500 million currently, as part of a companywide push for organic growth, CEO Roger Yates said Monday at a news conference in London.
The five-year plan was developed in November after a strategic review of the firm.
Pioneer is eyeing a 2012 growth rate in U.S. institutional assets of about $500 million; that annual rate is expected to grow to $2 billion within five years.
“We've barely touched the institutional distribution channel in the U.S.,” said Mr. Yates, who is based in Milan. The firm's U.S. institutional assets were about $12 billion as of Dec. 31.
Mr. Yates said changes in the money management industry since the global financial crisis are pushing firms to become more competitive. “You have to think really hard about where you want to play in this industry,” he said, adding it was that thinking that led to the strategic review.
The review also followed an attempt to sell off all or parts of the business, Mr. Yates acknowledged.
Pioneer is increasing its Boston-based global/international equity investment capabilities, but Daniel K. Kingsbury, president and CEO of Pioneer's U.S. business, expects inflows across asset classes, including its fund subadvisory business.
Strategies based in U.S. dollars are big sellers in Asian markets such as Taiwan, another geographic area identified for growth, Mr. Yates said. In January, Pioneer named Jack W. Lin to the new position of head of Asia and Middle East. The firm plans to open an office in Korea.
Pioneer is also in the process of hiring about a dozen investment staff in its London office to boost its emerging markets capabilities, both in equities and bonds. New hires are expected to be made by June, said Giordano Lombardo, group chief investment officer.