Societe Generale Securities Services provides Pioneer Investments with a new share class hedging solution

Societe Generale Securities Services (SGSS) has launched a new share class hedging solution in Korean Won for Pioneer Investments, the global investment management firm. This solution enables the firm to extend its investment product range in Korea for asset managers and institutional and retail investors.

In 2014, Pioneer Investments extended its offering in Asia and launched the distribution of its funds in Korea, a high-potential market for retail and institutional investors. As the Korean Won is a non-convertible currency, SGSS developed new hedging capabilities to support this initiative with the use of non-deliverable forwards (NDFs). Share class hedging services are used for funds that market their share classes in foreign currencies and want to protect their international investors from exchange rate swings. This solution is transferable to other non-convertible currencies.

SGSS has proven experience in providing clients with innovative, flexible and efficient foreign exchange (Forex) services. Available on a third-party provider basis in collaboration with custodians, transfer agents and fund administrators, these services ensure end-to-end Forex hedging calculations and pricing.

Jack Lin, Head of Asia Pacific, Middle East and Africa region for Pioneer Investments, underlines the firm’s long-standing relations with the bank: "SGSS has proved to be a very efficient, flexible and precise partner. When we decided to launch our business in Korea, it was very reactive in adjusting its product to our needs. SGSS takes on all operational risks related to Forex operations, which leaves us free to concentrate on our core business activities."

“We value our long term partnership with Pioneer Investments and we are proud to be its reference provider for Forex services,” says Anne-France Demarolle, Head of Liquidity Management Services at SGSS. “Our client’s international strategy required the new share class in order to trigger the distribution of its funds in Korea and we have adapted its offer accordingly as our client’s interest is the number one priority for us”.

About Pioneer Investments

Pioneer Investments, founded in 1928, is the trading name of the Pioneer Global Asset Management S.p.A. group of companies. Pioneer Investments is a global investment firm with offices in 28 countries, 2,000 employees and over €200 billion in assets under management as of December 2014. Pioneer Global Asset Management S.p.A. is a wholly-owned subsidiary of UniCredit S.p.A.