The solution will enable Pioneer to extend its investment products range in Korea for asset managers, institutional investors and retail investors.

“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," said Anne-France Demarolle, head of liquidity management services at SGSS.

As the Korean Won is a non-convertible currency and not openly traded on the foreign exchange market, SGSS developed new hedging capabilities to support this initiative with the use of non-deliverable forwards (NDFs).

Share class hedging services allow funds to market their share classes in foreign currencies while protecting their international investors from exchange rate swings.

"SGSS has proved to be a very efficient, flexible and precise partner," said Jack Lin, head of Asia Pacific, Middle East and Africa region for Pioneer Investments. 

"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."

Pioneer launched the distribution of its funds in Korea in 2014.