Fund Complex: Pioneer Funds
Management Company: Amundi Pioneer Asset Management, Inc.
Funds Affected: (1) Pioneer Fund, (2) Pioneer Classic Balanced Fund
Sustainable Investing Strategy: Exclusions; ESG Integration
(1) In addition to all other considerations, Amundi Pioneer extends its evaluation of evaluates investments to include sustainable business practices, including through environmental, social and/or corporate governance (ESG) policies, practices or outcomes. The firm integrates ESG analysis into its investment process by focusing on companies with sustainable business models and evaluating ESG-related risks as part of our research recommendations. Environmental assessment categories typically include climate change, natural resource use, waste management and environmental opportunities. Social assessment categories typically include human capital, product safety and social opportunities. Governance assessment categories typically include corporate governance, business ethics and government and public policy. ESG related concerns in one area that might not automatically eliminate an issuer from being an eligible investment for the fund. In making ESG evaluations, Amundi Pioneer may consider whether an issuer’s ESG policies or practices are improving.
In addition, the fund generally excludes corporate issuers that do not meet or exceed minimum ESG standards, based on a system that uses ESG ratings provided by third parties or internal sources. When using ESG ratings to exclude corporate issuers and evaluating ESG issues generally, Amundi Pioneer considers ratings in the context of an issuer’s respective sector or industry.
The fund generally will not invest in companies significantly involved in certain business activities, including but not limited to, the production of alcohol, tobacco products and certain controversial military weapons, and the operation of coal mines and gambling casinos and other gaming businesses.
(1) (2) In addition to the ESG considerations outlined above, Amundi Pioneer does not take into consideration whether the sponsor of a mortgage-backed or asset-backed security in which the fund invests meets ESG criteria. That is because mortgage-backed and asset-backed securities represent interests in pools of underlying assets (e.g., mortgages or loans), and not of the ongoing business enterprise of the sponsor. It is therefore possible that the fund could invest in a mortgage-backed or asset-backed security sponsored by a bank or other financial institution in which the fund would not invest directly.