Prospectus - Notowania

- 74 -
RISK FACTORS
could be in the future, in proceedings and/or in the investigations into the
Madoff case in various countries throughout the world, including the USA,
Austria and Chile.
As of the date Bernard L. Madoff was arrested, Pioneer’s Alternative
Investments division, said company being a subsidiary of the Issuer (“PAI”),
acted as investment manager and/or investment adviser for a number of funds
which, in turn, had invested in other funds which held accounts managed at
BMIS. In detail, PAI as investment manager and/or investment adviser for the
Primeo funds and the AllWeather funds. PAI had undertaken the role of
investment adviser for the Primeo funds in April 2007, after having taken over
from BA Worldwide Fund Management (“BAWFM”), an indirect subsidiary of
BA. The Primeo and AllWeather funds had invested in other funds which, in
turn, held accounts managed at BMIS. In certain documents drawn up by these
funds, indication was provided of assets under management on behalf of the
funds administered by the subsidiaries of the Issuer amounting to €805 million
in November 2008. On the basis of the afore-mentioned documents, this amount
included the invested capital and the income deriving from the investment. In
light of Bernard L. Madoff’s admission of guilt and the facts which emerged
subsequent to the swindle committed by BMIS, it is clear that the amounts
indicated in the afore-mentioned documents do not accurately reflect the
investments made or the income deriving from those investments.
Consequently, the above values must not be considered indicative of the amount
of the losses suffered by the end investors of the funds involved.
The speculative funds established in accordance with Italian law and managed
by PAI have no exposure to funds which, in turn, had invested in accounts
managed at BMIS.
HVB had issued various tranches of debt securities whose potential return was
calculated with reference to the yield of a hypothetical structured investment
(so-called synthetic investment) in the Primeo funds. The notional value of the
debt securities issued which refer to the Primeo funds came to around €27
million. As at the Date of the Prospectus, some legal proceedings had been
brought in Germany in relation to the debt securities issued by HVB and
associated with the Primeo funds, citing HVB as the defendant.
BAWFM, a subsidiary of BA, had acted as investment adviser for the Primeo
funds since April 2007. Several BA customers had acquired investments in the
Primeo funds which were held by BA.
The Issuer and its subsidiaries BA and PAI were summoned before the court in
three collective lawsuits (putative class action) brought before the United States
District Court for the Southern District of New York, in which around 50
defendants were summoned and in which those bringing the action declare that
they represent the investors of three funds whose assets were invested, directly
or indirectly, in BMIS. The defendants are accused of having omitted significant
information from, or having included false information in, prospectuses and the