Pioneer Mid-Cap Value Fund Class A (PCGRX) is one of several classes of Middle Capitalization funds managed by Pioneer funds. The Pioneer Mid-Cap Value sister funds are class B, C, R, and Y. The class A fund is the largest of the 5 with over $900 million dollars in managed assets, a 1.13% expense ratio and a total return of nearly 4% since its 1990 inception date.
The Pioneer Mid-Cap Value Fund Class A is managed by a financial services and investments firm called Pioneer Investment Management, Inc. that is of European ownership and registration with offices and mutual fund tailored to the United States market(s). The company and/or asset management by the company has been in operation since the late 1920’s. This review will discuss the Pioneer Mid Cap Value fund in regard to its performance, characteristics and competitiveness as a choice among an array of similar funds.
Pioneer Mid-cap Value Fund Class A performance
If an investors expectations are moderate return on investment, medium risk, and equity portfolio diversification among multiple mid-sized U.S. companies across several industrial sectors, then the Pioneer Mid-Cap Value Fund Class A might be a good choice. The difference between the Class A fund and the others pertains to 1) assets managed, 2) expense calculations, fund creation date and availability to investors.
While the Class A fund has the largest amount of assets, it also incurs a sales charge and does not have exclusive ownership like the Class Y fund. In terms of performance, the Pioneer Mid-Cap Value Fund Class A has not greatly exceeded the Russell Mid-Cap Value Index that’s 10 year return is around 21 basis points short of 4%. Moreover, the companies the fund invests in have relatively normal Price to earnings ratios and a near 75% index correlation indicating a somewhat predictable performance.
Competitive Positioning: Pioneer Mid-cap Value Fund Class A
The Pioneer Mid-Cap Value Fund Class A is managed for value and capital appreciation rather than niche market and outstanding potential to grow as would be more the case with a Small-Cap growth fund. In light of this, the fund is not entirely aggressive or high risk but rather a moderate position which itself has relatively frequent turnover of 61% of its assets within its portfolio. This indicates an active management with a short-term as well as long-term approach to asset management investing.
Middle capitalization firms that were not previously large capitalization firms, but rather small capitalization firms and in the investment portfolio of the Pioneer Mid-Cap Value Fund Class A may indicate strong value and/or potential growth due to current market conditions approaching the 3rd quarter of 2009. In terms of additional mutual funds of similar nature, the Pioneer Mid-Cap Value Fund Class A performs on average. Some of the higher ranked funds in this category as indicated by Morningstar rankings and smartmoney.com include the following:
• Artisan Mid-Cap Value Fund (ARTQX)
• Dreyfus Mid-Cap Value (DMCVX)
• American Century Mid-Cap Value (ACMVX)
• T. Rowe Price Mid-Cap Value (TRMCX)
• Janus Perkins Mid-Cap Value (JMCVX)
Summary
The Pioneer Mid-Cap Value Fund Class A is a mutual fund that invests in U.S. companies with equity capitalizations under $10 billion dollars i.e. ‘Mid-Cap’. The fund is slightly above average in return performance, is of moderate risk and invests primarily in diversified U.S. companies and industries. The quality of the selection of these companies i.e. the management’s ability to select quality and companies with high revenue and earnings growth potential is a significant factor affecting the performance of this fund. For example, a mid-cap company upgraded as such during an economic recession may have more potential than a mid-cap company downgraded to such during the same time period. This fund has a sales expense but is a no load fund with a fairly typical expense ratio for a mutual fund.