The Pioneer Floating Rate Fund has outperformed bond indices recently due to its investment in floating-rate securities, benefiting from the Federal Reserve's monetary tightening from 2022 to mid-2024. Falling interest rates will pressure the fund's income and distribution, as floating-rate securities' coupons decline without delivering capital gains. Despite its attractive 11.20% yield, the fund's income will likely decline, forcing a distribution cut as the Federal Reserve continues reducing rates.
The Pioneer Floating Rate Fund offers a high level of income with an 11.54% yield, comparable to its peers. The fund lacks inflation protection, which may be a concern for investors looking to preserve the purchasing power of their assets. The fund has outperformed investment-grade and junk bonds since early January, providing a total return of 9.33% for investors.
The Pioneer Floating Rate Fund, Inc. offers a high level of current income with a 12.20% current yield, higher than junk bond funds. The PHD closed-end fund has underperformed fixed-rate bond indices due to lack of price appreciation, but this may change in the coming weeks. The fund invests in floating-rate loans, which provide income and are less affected by changes in interest rates, making it a safer asset to hold.
Pioneer Floating Rate Fund and Invesco Senior Income Trust have outperformed the S&P 500 thanks to increased monthly distributions. VVR has had the strongest return at 12.54%, compared to 7.87% for PHD and 4.26% for the S&P 500. VVR has a better long-term track record.
Pioneer Floating Rate Fund, Inc. offers a high level of current income with a whopping 12.43% yield. The PHD closed-end fund has outperformed the Bloomberg U.S. Aggregate Bond Index and the S&P 500 Index since the start of 2022. The fund's distribution has varied over the years, due to variations in interest rates.
The Pioneer Floating Rate Fund aims to deliver high current income from floating rate loans. The PHD fund has generated modest long-term returns of 6.0%/3.1%/3.8%/4.6% over 3/5/10/15-year horizons, but its distribution yield may be too generous and unsustainable. Investors should try to avoid amortizing 'return of principal' funds like PHD as they lead to long-term principal losses.
The Pioneer Floating Rate Fund has underperformed compared to its peers, despite a rise in disbursable cash flow due to increased interest rates. The fund has tended to choose credits with inferior risk/reward metrics when compared to its peers. The CEF has a wide discount to NAV on the back of its mediocre performance. The discount will not narrow until we see a new structural bull market.