Details for Investment Manager
Investment Manager

Pioneer Investment Management, Inc.

60 State Street
Boston, MA 02109
Asset Class and Objective

Core broad U.S. stock fund, focusing on the large capitalization sector

Fund Benchmark

S&P 500 Index

Management Type

Actively Managed

Marketing Company

VALIC Retirement

Restrictions on Transfers Investment funds in the FRS Investment Plan are subject to excessive trading restrictions as detailed in the FRS Investment Plan Summary Plan Description and FRS Excessive Fund Trading Policy.
Fees and Expenses

Fees and expenses are only one of several factors that should be considered when making investment decisions. More information on fees and expenses can be found in the FAQs on the MyFRS.com website.

How mutual fund fees work

On an annual basis, marketing companies estimate the fees that FRS Investment Plan participants will pay as a percentage of their mutual fund account assets; e.g., 0.50% per year. These figures reflect any rebates or reductions negotiated by the State Board of Administration and are published in the Fund Profiles and other plan materials.

However, the actual fees you would pay as an investor in a mutual fund are not guaranteed and will vary over time when expressed as a percent of asset values. Mutual fund boards of directors can change fees without the FRS's permission. Changes occur throughout the year in the day-to-day expenditures made by mutual funds to cover their operating expenses and these changes are passed through to shareholders. The amount of assets under management changes from period to period and so fees expressed as a ratio of assets will vary, even if the actual dollar expenditures do not. Also, some mutual funds have fees that can rise or fall depending on performance compared to a benchmark.

The actual expenses paid for mutual funds included in the FRS Investment Plan are detailed in their annual or semi-annual reports for previous periods. These reports are available free of charge by calling the MyFRS Financial Guidance Line (1-866-446-9377). Please note that these reports will not reflect any rebates or reductions negotiated by the State Board of Administration.

Investment Philosophy

Pioneer Fund invests in a broad list of carefully selected, reasonably priced securities rather than in securities whose prices reflect a premium resulting from their current market popularity.

Research Process

Pioneer Fund is managed using a fundamental research driven approach, which selects high quality securities selling at substantial discounts to their underlying values and holds these securities until their intrinsic value is reflected in the marketplace. This value approach to security selection can produce superior returns over time.

Security Selection

Pioneer Investment Management, Inc., the fund's investment advisor, uses a value approach to select the fund's investments. Pioneer evaluates a security's potential value, including the attractiveness of its market valuation, based on the company's assets and prospects for earnings growth. In making that assessment, Pioneer employs due diligence and fundamental research, an evaluation of the issuer based on its financial statements and operations. Pioneer also considers a security's potential to provide a reasonable amount of income. Pioneer relies on the knowledge, experience and judgement of its staff who have access to a wide variety of research. Pioneer focuses on the quality and price of individual issuers, not on economic sector or market timing strategies. Factors Pioneer looks for in selecting investments include:

  • Favorable expected returns relative to perceived risk;
  • Above average potential for earnings and revenue growth;
  • Low market valuations relative to earnings forecast, book value, cash flow and sales;
  • A sustainable competitive advantage, such as a brand name, customer base, proprietary technology or economies of scale;
  • Pioneer Fund maintains socially responsible screens so as not to purchase companies whose primary business is alcohol or tobacco.

Portfolio Construction

Pioneer Fund is broadly diversified across all of the sectors which comprise the S&P 500 index.

Sell Discipline

The fund usually does not trade for short term profits. The fund will sell an investment, however, even if it has only been held for a short time, if it no longer meets the fund's investment criteria.

Portfolio Manager(s)
Name Investment Experience Experience Last 5 Years
John A. Carey 30 years Portfolio Manager and Executive Vice President
Walter Hunnewell Jr. - Assistant Portfolio Manager 21 years Assistant Portfolio Manager and Vice President.
Prior to joining Pioneer in 2001, he was an investment manager (2000-01) and a global equity analyst (1994-99)
IMPORTANT NOTE: The information on investment philosophy, research process, security selection, portfolio construction, sell discipline and personnel was provided to the FRS by product marketing companies or investment managers. The FRS has taken this information as given for the purposes of this document.