The ‘Stupid Name’ Fund
There are some really poorly named mutual funds; none worse than the Pimco All Asset All Authority Fund (PAUIX).
I hate to pick on Pimco, but it sounds like something right out of the Pentagon. They might as well call it the Pimco “Go Anywhere Buy Anything Fund” because that’s exactly what it is. Portfolio Manager Rob Arnott’s investment strategy is to invest in whatever Pimco funds he deems appropriate to maximize investors’ real return while preserving capital at the same time.
It all sounds very nice. But have a look at the fund’s holdings and you’ll see it owns 46 different Pimco funds. Why not 56? Why not every mutual fund offered by the company? The whole point of investing in mutual funds is to simplify your life. This fund doesn’t do that by any stretch of the imagination.
Performance-wise, it has performed decently, achieving a 5-year annualized total return of 6.3% — only 235 basis points worse than the S&P 500. In addition, its trailing twelve-month yield is a robust 7.1%. It’s not the worst fund in the world, but I doubt it’s worth attracting $32.2 billion in total assets. The average person should definitely stay away.