Pioneer has €7.8m loss as Madoff takes toll
A DUBLIN-based investment firm with a $1bn (€0.8bn) exposure to Bernard Madoff's infamous Ponzi schemes swung to a €7.8m loss last year as income collapsed by more than 50pc.
Accounts just filed for Pioneer Alternative Investment Management (PAIM) also show the company still has no visibility over the potential impact of US lawsuits surrounding the Madoff funds.
PAIM is one of three Irish offshoots owned by Italian giant Pioneer Global Asset Management. The company employed 62 last year, trading out of an office in Dublin's George's Quay.
Last year's pre-tax loss followed pre-tax earnings of €20.3m and came as PAIM's income dipped from €50.5m to €24.9m. The company's directors blamed the lower sales on "the downturn in the global financial markets and its impact on the hedge fund industry".
The directors also noted 2009's higher cost base, including payments of €12.7m for "Madoff-related legal and other costs" and a €9.6m charge for the revaluation of stock options.
Notes to the accounts say the Madoff-related proceedings are "in their initial stages" and so "it is not possible to reliably estimate the liability, if any".
Mr Madoff is serving a 150-year jail sentence for executing a $65m fraud scheme that stretched to investors across the globe.