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Overview

The Pioneer Dynamic Credit Fund is a flexible, focused and disciplined approach to global credit.

 

The Fund seeks performance consistent with "high quality" high yield markets with significantly less drawdown during times of market stress.

BB Rated.

What Makes This Fund Different?

Flexibility – allows us to take advantage of global credit opportunities that arise from market dislocations, changes in valuations and volatility. Over time, the Fund adjusts exposure levels across a wide range of credit asset classes across the global fixed income markets.


Focused - on the overarching objective of constructing a portfolio around credit exposure that can deliver strong, stable cash flows over a credit cycle. By design, we will take focused exposures that are large enough to potentially impact performance, in an effort to avoid the risk of over-diversification.*

Disciplined – We implement disciplined risk management throughout the portfolio construction process.  The Fund manages risk in two important ways:

  • Through asset allocation and security selection we can target, what we believe to be, the optimal asset class, sector and securities that can best "pursue" our target for return and income.
  • By implementing a flexible hedging strategy that adapts to the credit cycle and can limit drawdown during extreme market stress.

 

We seek to capitalize on opportunities rising from market dislocations and volatility across global fixed income asset classes and employ a scenario-based approach in an effort to uncover securities that may potentially offer the strongest risk-adjusted return. The Fund integrates risk management throughout the entire investment process. 

Seeking to protect during times of severe market drawdown is important. 

Quarters with Negative High Yield Returns Since Inception

quarters-with-negative-hy-returns
Call 1-800-622-9876 or visit us.amundipioneer.com for the most recent month-end performance results. Current performance may be lower or higher than the performance data quoted. The performance data quoted represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

Performance results reflect any applicable expense waivers in effect during the periods shown. Without such waivers fund performance would be lower. Waivers may not be in effect for all funds. Certain fee waivers are contractual through a specified period. Otherwise, fee waivers can be rescinded at any time. See the prospectus and financial statements for more information. NAV results represent the percent change in net asset value per share. POP returns reflect deduction of a maximum 4.50% sales charge. All results are historical and assume the reinvestment of dividends and capital gains. Other share classes are available for which performance and expenses will differ. Class Y shares are not subject to sales charges and are available for limited groups of investors, including institutional investors.
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Average Annual Total Returns as of 9/30/18

 

YTD 1-Year 3-Year 5-Year Since Inception
4/29/2011
 
Class Y Share (NAV) 0.73% 1.13% 4.96% 3.41% 3.73%
Class A Share (NAV) 0.41% 0.84% 4.61% 3.10% 3.36%
Class A Sare (POP) -4.10% -3.66% 3.01% 2.15% 2.73%
ICE BofA ML USD 3-Month
LIBOR Index3
1.50% 1.79% 1.10% 0.76% 0.63%
ICE BofA ML US HY Index1 2.52% 2.94% 8.19% 5.54% 6.13%
Morningstar Multisector Bond Category Average -0.09% 0.57% 4.14% 3.25% 4.91%
 
A Share Gross and Net Expense Ratio: 1.25%. Y Share Gross Expense Ratio: 1.01% and Net Expense Ratio: 0.91%. 

The Net Expense Ratio reflects contractual expense limitations currently in effect through 8/1/2019 for Class Y Shares. There can be no assurance that Amundi Pioneer will extend the expense limitations beyond such time. Please see the prospectus and financial statements for more information.

*Diversification does not assure a profit or protect against a loss in a declining market.

¹The ICE Bank of America Merrill Lynch U.S. High Yield Index is a commonly accepted measure of the performance of high yield securities. 

²The ICE BofA Merrill Lynch U.S. High Yield BB/B Constrained Index contains all securities in the ICE BofA Merrill Lynch U.S. High Yield Index rated BB+ through B- by S&P (or equivalent as rated by Moody’s or Fitch), but caps issuer exposure at 2%. Index constituents are capitalization-weighted, based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 2%. Indices are unmanaged and their returns assume reinvestment of dividends and, unlike mutual fund returns, do not reflect any fees or expenses associated with a mutual fund. It is not possible to invest directly in an index. 

³The ICE BofA Merrill Lynch U.S. Dollar 3-Month LIBOR Index represents the London Interbank Offered Rate (LIBOR) with a constant 3-month average maturity. LIBOR is a composite of the rates of interest at which banks borrow from one another in the London market, and it is a widely used benchmark for short-term interest rates.

This material is not intended to replace the advice of a qualified attorney, tax advisor, investment professional or insurance agent. Before making any financial commitment regarding the issues discussed here, consult with the appropriate professional advisor. Mutual fund investing carries risks. Investment return and principal values fluctuate, and shares, when redeemed, may be worth more or less than their original cost.

 

A Word About Risk:
All investments are subject to risk, including the possible loss of principal. The Fund has the ability to invest in a wide variety of debt securities. The Fund may invest in underlying funds, including ETFs. In addition to the Fund's operating expenses, you will indirectly bear the operating expenses of investments in any underlying funds.The Fund and some of the underlying funds employ leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if an underlying fund's investments decline in value. The Fund and some of the underlying funds may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. The Fund may invest in inflation-linked securities. As inflationary expectations increase, inflation-linked securities may become more attractive, because they protect future interest payments against inflation. Conversely, as inflationary concerns decrease, inflation-linked securities will become less attractive and less valuable. The Fund may invest in credit default swaps, which may in some cases be illiquid, and they increase credit risk since the fund has exposure to both the issuer of the referenced obligation and the counterparty to the credit default swap. The Fund may invest in floating rate loans. The value of collateral, if any, securing a floating rate loan can decline or may be insufficient to meet the issuer's obligations or may be difficult to liquidate. The Fund may invest in event-linked bonds. The return of principal and the payment of interest on event-linked bonds are contingent on the non-occurrence of a pre-defined "trigger" event, such as a hurricane or an earthquake of a specific magnitude. The Fund may invest in zero coupon bonds and payment in kind securities, which may be more speculative and fluctuate more in value than other fixed income securities. The accrual of income from these securities are payable as taxable annual dividends to shareholders. Investments in equity securities are subject to price fluctuationInvestments in fixed income securities involve interest rate, credit, inflation, and reinvestment risks. As interest rates rise, the value of fixed income securities falls. The Fund may invest in mortgage-backed securities, which during times of fluctuating interest rates may increase or decrease more than other fixed-income securities. Mortgage-backed securities are also subject to pre-payments. Prepayment risk is the chance that an issuer may exercise its right to prepay its security, if falling interest rates prompt the issuer to do so. Forced to reinvest the unanticipated proceeds at lower interest rates, the Fund would experience a decline in income and lose the opportunity for additional price appreciation. High yield bonds possess greater price volatility, illiquidity, and possibility of default
There is no assurance that these and other strategies used by the Fund or underlying funds will be successful. The Fund is not intended to outperform stocks and bonds during strong market rallies. 
These risks may increase share price volatility. 
Please see the prospectus for a more complete discussion of the Fund's risks.
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Fund Facts

Tickers, CUSIPs
Class A: RCRAX, 72388E100
Class C: RCRCX, 72388E209
Class Y: RCRYX, 72388E308

 

Inception Date
April 29, 2011

 

Benchmark
ICE BofA Merrill Lynch U.S. Dollar 3-Month 
LIBOR Index3

 

Investment Objectives
A high level of current income. Capital appreciation is a secondary objective.

 

Contact us to learn more.
1-800-622-9876

Related Resources

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Portfolio Manager

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Portfolio Manager

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