Pioneer Fundamental Growth Fund
We believe a portfolio of companies that have sustainable competitive advantages, earn high returns on growth capital, demonstrate consistent growth and sell at a discount to their intrinsic value can outperform the broader market over time with less risk.
- Sustainable competitive advantage – We look for companies with an economic moat, which creates a barrier to the competition and the potential for above average returns.
- High returns on growth capital – Growth capital is capital a company uses to grow its business versus simply maintaining it. A high return on growth capital is an indication that a company is growing profitably and not simply for the sake of growth.
- Consistent growth – A company must not only have a track record of growth, but also must be able to sustain it. We look for an identifiable tailwind, such as increased spending on pharmaceuticals due to an aging population.
Low Volatility with Attractive Risk-Adjusted Returns
For growth investors who fear the effects of volatile markets, Pioneer Fundamental Growth Fund offers an attractive track record of risk and reward.
High Conviction Approach
The Fund currently invests in 39 stocks (as of 3/31/17) that we believe best meet our investment criteria of having a sustainable competitive advantage, high returns on growth capital and consistent growth. We believe this high conviction approach to investing reduces overall risk by avoiding lower quality companies that have a greater likelihood of succumbing to competitive threats or allocating capital unwisely.
The Fund’s lower risk profile is evidenced by a lower standard deviation and downside capture than the Russell 1000® Growth Index and its peer group over 5- and 10-year periods. As part of its risk management strategy, the Fund limits industry weightings to 25% and limits position sizes at purchase.
Morningstar Ratings and Rankings for all Periods Among 1306 Large Growth Funds
as of 3/31/17
|Class A||Class Y|
|3-year||12% (154/1306)||9% (107/1306)|
|5-year||28% (322/1154)||20% (231/1154)|
|10-year||12% (91/800)||9% (95/1150)|
A Competitive Large Growth Performer