Mid Cap Value Fund Pioneer Q2 2024 Performance Analysis

Mid Cap Value Fund Pioneer Q2 2024 Performance Analysis

In the second quarter of 2024, the Pioneer Mid Cap Value Fund (MUTF:PYCGX) experienced a range of returns across different time frames. The Class Y shares saw a -1.95% month-to-date return, a -4.28% quarter-to-date return, and a 2.62% year-to-date return. Over a 1-year period, the fund delivered a return of 10.03%, while over 3 years, 5 years, and 10 years, the returns were 5.89%, 9.14%, and 6.68%, respectively. In comparison, the benchmark Russell Midcap Value Index saw slightly better returns across most time frames, with a year-to-date return of 4.54% and a 1-year return of 11.98%.

The fund has a gross and net expense ratio of 0.98% and is available for limited groups of investors, including institutional investors. Class Y shares do not have sales charges and require a $5 million investment minimum, which may be waived in certain circumstances. It’s important to note that past performance is not indicative of future results, and current performance may vary.

The investment approach of the Pioneer Mid Cap Value Fund focuses on investing in higher-quality mid-cap value stocks with a valuation focus. The portfolio managers use a disciplined and repeatable approach to fundamental analysis to identify high-quality mid-cap companies trading at attractive valuations. The fund typically holds 50 to 70 stocks, aiming to limit risk while seeking above-average total returns.

In the market review for the second quarter of 2024, the S&P 500 Index returned 4.28%, driven by the performance of the Magnificent Seven stocks, including Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla. Growth stocks continued to outperform value stocks, with the Russell 1000 Growth Index returning 8.33% compared to the -2.17% return of the Russell 1000 Value Index.

For the Pioneer Mid Cap Value Fund, the second quarter saw underperformance compared to the benchmark, with a return of -1.95%. This underperformance was attributed to a combination of allocation effects and stock selection results. The fund’s overweight position in the consumer staples sector and underweight position in the real estate sector detracted from performance. Individual holdings such as Zimmer Biomet and Walgreens Boots Alliance also contributed to the fund’s underperformance.

Looking at the top contributors and detractors for the period, AerCap and Public Service Enterprise Group were among the top contributors, while Zimmer Biomet and GE Healthcare were top detractors. The fund’s top 10 holdings as of June 30, 2024, included State Street, Ebay, Coterra Energy, Aercap, and Public Service Enterprise, among others.

In terms of market outlook and positioning, the fund remains cautious due to elevated valuations and potential risks related to the economy, interest rates, inflation, federal debt, and elections. The fund is overweight in the financial, energy, and consumer staples sectors, while being underweight in industrials and information technology.

In conclusion, the Pioneer Mid Cap Value Fund’s performance in the second quarter of 2024 was mixed, with underperformance compared to the benchmark. The fund’s investment approach and focus on high-quality mid-cap value stocks with attractive valuations provide a framework for generating above-average total returns. Investors should carefully consider the risks and potential rewards of investing in the fund based on their individual investment goals and risk tolerance.