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If you have been looking for All Cap Value funds, a place to start could be Pioneer Core Equity Fund A (PIOTX). PIOTX bears a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
PIOTX is one of many All Cap Value funds to choose from. All Cap Value mutual funds buy stakes in companies in all three valuation categories: small, medium, and large-cap. However, they end up focusing on bigger firms due to percentage of assets. Most importantly, these funds look for key value characteristics, targeting stocks that boast low P/E ratios, high dividend yields, and whose share prices do not reflect their worth.
History of Fund/Manager
PIOTX finds itself in the Pioneer Invstestments family, based out of Canton, MA. Pioneer Core Equity Fund A debuted in September of 1969. Since then, PIOTX has accumulated assets of about $1.46 billion, according to the most recently available information. Craig Sterling is the fund's current manager and has held that role since May of 2015.
Performance
Obviously, what investors are looking for in these funds is strong performance relative to their peers. This fund carries a 5-year annualized total return of 7.66%, and it sits 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 11.44%, which places it in the top 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. Over the past three years, PIOTX's standard deviation comes in at 12.5%, compared to the category average of 9.62%. Over the past 5 years, the standard deviation of the fund is 12.54% compared to the category average of 10.02%. This makes the fund more volatile than its peers over the past half-decade.
Risk Factors
Investors should always remember the downsides to a potential investment, and this segment carries some risks one should be aware of. In the most recent bear market, PIOTX lost 59.15% and underperformed its peer group by 9.77%. These results could imply that the fund is a worse choice than its peers during a sliding market environment.
Even still, the fund has a 5-year beta of 1.05, so investors should note that it is hypothetically more volatile than 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. Over the past 5 years, the fund has a negative alpha of -2.13. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.