The Pioneer Fund, one of the oldest mutual funds in the US, has now returned over one million percent since its inception on February 13 1928. The milestone was reached on 31 December 2010, when the exact growth rate of the fund hit 1,073,300.43%, based on the value of an investment at inception, according to figures from Lipper and Morningstar.
According to Morningstar’s data, $1,000 invested in the Pioneer Fund’s A Shares at inception would have been worth about $10.73million last December, assuming all the dividends and capital gains distributions were reinvested. A quite astounding investment return!
The fund’s value-based investment philosophy, which is quite similar to that used by legendary US investor Warren Buffet, was developed by Pioneer’s founder Philip Carret and subsequently its manager for the past 25 years, John Carey.
Carey, said: “The fund’s long term record can be attributed to our focus on the underlying business value of stocks, our close attention to investment fundamentals, and our dedicated independent research management effort.”
Sadly, there are no known original shareholders of in the Pioneer Fund still alive; the oldest known shareholders are from the 1950s.
To put the performance into perspective, the performance of the Dow Jones between 1928 and today is ‘only’ around 5000%