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We believe investors should seek to continue to add resilience to portfolios by incorporating high-quality assets that can help diversify away from the top of the market. Cyclical investments, such as utilities and telecommunications, can provide opportunities. Later in the year, consumer and financial sectors and companies that typically benefit from the energy transition, healthcare and innovations in artificial intelligence may offer attractive opportunities.
Whatever the outcome of the upcoming US elections, a divided government is likely, making legislative agendas difficult to achieve. Marco Pirondini, Amundi US’s Chief Investment Officer, explains why this environment makes it even more important for investors to consider quality stocks with reasonable valuations.
Are the Magnificent Seven losing their shine? Dive into our latest market insights, with words of wisdom from Ted Lasso, to uncover why the shrinking earnings advantage of the S&P 500’s top players might signal a shift. Plus, explore how this could pave the way for active managers to pursue new opportunities.
Read our paper, Passive to Active: Words of Wisdom from Ted Lasso |
Higher quality growth stocks have outperformed the broader market over time. We believe that a focused portfolio of companies that meet our three quality requirements – high returns on growth capital, sustainable competitive advantages, and secular growth opportunities – can generate attractive risk-adjusted returns over a full market cycle.
High Quality and Low Quality in the chart are determined by a composite score based on ROE, earnings stability, YoY sales growth, net margin, sequential trend stability of ROE, and net cash ratio volatility. Higher scores suggest higher quality.
Source: Alliance Bernstein. Data range: February 1, 1990 – September 30, 2024. Data is based on past performance, which is no guarantee of future results. For more information, please see Terms and Indices below.
Amundi US bring a legacy of experience to the selection of quality assets to pursue better outcomes:
Pioneer Fundamental Growth FundSeeking quality stocks, at attractive valuations, of primarily US large capitalization companies, with the potential for long-term capital growth |
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Pioneer FundRigorous, innovative research and a long-term focus on quality designed to deliver investment growth for over 95 years |
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Pioneer Disciplined Growth FundInvesting in companies with more business model volatility and risk, in exchange for potential higher returns on capital and growth |
Please visit our Mutual Fund page to find our full list of mutual funds.
Terms & Indices:
Cyclicals: Stocks whose performance moves in sync with trends in the economy, often because they make or sell items and services that are in demand when the economy is doing well. Valuation:The process of determining the value of an investment, asset, or security. Net cash ratio: The ratio of net cash minus liabilities. Trend stability: Used to predict future stock price movements based on observed trend data. Year-over-year (YoY): Measures the rate of change in a metric across two comparable periods. Return on equity (ROE): Measure of financial performance calculated by dividing net income by shareholders' equity.
The Russell 1000 Growth Index measures the performance of large-cap U.S. growth stocks.
Indices are unmanaged and their returns assume reinvestment of dividends and do not reflect any fees or expenses. It is not possible to invest directly in an index.
Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of 3/31/2024.
Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your financial professional or Amundi US for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it from our literature section.
Securities offered through Amundi Distributor US, Inc.
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Underwriter of Pioneer mutual funds, Member
SIPC.
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