Pioneer Corporate High Yield Fund Performance Update
As of June 30, 2024, the Pioneer Corporate High Yield Fund (MUTF:RCRYX) reported a month-to-date return of 0.92%, a quarter-to-date return of 1.43%, and a year-to-date return of 3.80%. The fund’s one-year return stood at 11.27%, with a three-year return of 1.27% and a five-year return of 3.40%. Since its inception on January 1, 2017, the fund has delivered a return of 4.19%.
In comparison, the ICE BofA US High Yield Index, the fund’s benchmark, reported a month-to-date return of 0.97%, a quarter-to-date return of 1.09%, and a year-to-date return of 2.62%. The benchmark’s one-year return was 10.45%, with a three-year return of 1.65% and a five-year return of 3.73%.
The fund’s gross expense ratio is 1.30%, while its net expense ratio is 0.61%. Investors can obtain the most recent month-end performance results by calling 1-800-225-6292 or visiting Amundi US.
Market Overview
The US economy experienced a slowdown in the second quarter, with economic data coming in below consensus since early May. Despite this, the Federal Reserve maintained a hawkish tone, suggesting that interest rate cuts may not occur until September. As a result, investment-grade fixed-income markets were flat for the quarter, with the Bloomberg US Aggregate Index returning 0.07%. High-yield corporates, however, returned 1.09%, outperforming other fixed-income sectors.
Portfolio Performance
The Pioneer Corporate High Yield Fund’s outperformance relative to its benchmark was driven primarily by sector selection, with individual security selection playing a secondary role. The fund’s underweight positions in media, telecommunications, and healthcare contributed positively to its performance, while overweight positions in automotive, insurance, and technology detracted from its performance.
The fund’s managers believe that the current economic environment warrants a defensive positioning, given the headwinds facing the US economy. They expect to increase the fund’s allocation to “income producers,” which are defensive in nature, while seeking attractively priced “spread tighteners” that can benefit from improving fundamentals.
Investment Risks
Investments in the Pioneer Corporate High Yield Fund are subject to various risks, including market risk, credit risk, interest rate risk, and liquidity risk. The fund’s investments in high-yield or lower-rated securities may be subject to greater price volatility, illiquidity, and default risk. Additionally, the fund’s use of derivatives may increase losses and have a potentially large impact on its performance.
Before investing in the Pioneer Corporate High Yield Fund, individuals should carefully consider the fund’s investment objectives, risks, charges, and expenses. They should also read the prospectus or summary prospectus carefully and consult with their financial, legal, tax, and other appropriate professionals.
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