Is Pioneer Core Equity Fund A (PIOTX) a Strong Mutual Fund Pick Right Now?
Any investors hoping to find an All Cap Value fund might consider looking past Pioneer Core Equity Fund A (PIOTX). PIOTX bears a Zacks Mutual Fund Rank of 4 (Sell), which is based on nine forecasting factors like size, cost, and past performance.
Objective
Zacks categorizes PIOTX as All Cap Value, which is a segment packed with options. All Cap Value mutual funds, as the name suggests, invest across the cap spectrum in small-cap, mid-cap, and large-cap companies. However, in practice, these funds generally end up focusing on larger companies thanks to their percentage of assets. Regardless, these funds look for value positions, targeting firms whose share prices do not reflect their full worth, as well as low P/E Ratios and high dividend yields.
History of Fund/Manager
Pioneer Invstestments is based in Boston, MA, and is the manager of PIOTX. Pioneer Core Equity Fund A debuted in September of 1969. Since then, PIOTX has accumulated assets of about $2 billion, according to the most recently available information. The fund's current manager, Craig Sterling, has been in charge of the fund since May of 2015.
Performance
Investors naturally seek funds with strong performance. PIOTX has a 5-year annualized total return of 17.42% and is in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of 16.85%, which places it in the middle third during this time-frame.
When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 16.02%, the standard deviation of PIOTX over the past three years is 18.9%. The standard deviation of the fund over the past 5 years is 15.28% compared to the category average of 13.22%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
The fund has a 5-year beta of 1, so investors should note that it is hypothetically as volatile as the market at large. Another factor to consider is alpha, as it reflects a portfolio's performance on a risk-adjusted basis relative to a benchmark-in this case, the S&P 500. The fund has produced a positive alpha over the past 5 years of 0.21, which shows that managers in this portfolio are skilled in picking securities that generate better-than-benchmark returns.
Holdings
Investigating the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.
The mutual fund currently has 91.61% of its holdings in stocks, and these companies have an average market capitalization of $241.81 billion. The fund has the heaviest exposure to the following market sectors:
Technology
Finance
This fund's turnover is about 76%, so the fund managers are making more traders than comparable funds in a given year.
Expenses
For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, PIOTX is a load fund. It has an expense ratio of 0.90% compared to the category average of 1.11%. Looking at the fund from a cost perspective, PIOTX is actually cheaper than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $100.
Bottom Line
Overall, Pioneer Core Equity Fund A ( PIOTX ) has a low Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat weak choice for investors right now.
This could just be the start of your research on PIOTXin the All Cap Value category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.
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