Pacific Investment Management Company, LLC (commonly known as PIMCO) is a well-known global investment management firm. It offers a broad lineup of investment solutions that encompass the entire gamut of equities, bonds, currencies, real estates, alternative investments and risk management.
Though the firm manages a large number of mutual funds across a wide range, it is best known for fixed income mutual funds. It boasts more than 2,150 employees working in 11 countries and trading operations in North America, Europe and Asia. The company had around $1.61 trillion of assets under management as of Jun 30, 2017.
Below we share with you three top-ranked PIMCO mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of PIMCO funds.
PIMCO Income D (MUTF:PONDX) invests a minimum of 65% of its assets in Fixed Income Instruments of different maturities. It also invests nearly half of its assets in high-yield securities which are rated at least Caa by Moody’s, or equivalently rated by Fitch or S&P. PIMCO Income D has three-year annualized returns of 5.7%.
Alfred Murata is one of the fund managers of PONDX since 2013.
PIMCO StocksPLUS A (MUTF:PSPAX) seeks returns higher than that of the S&P 500 Index. The fund focuses on investing in fixed income instruments, like bonds, debt securities and other similar instruments issued by various domestic and foreign public- or private-sector entities. PSPAX normally invests about 30% of its assets in securities denominated in foreign currencies. PIMCO StocksPLUS A has three-year annualized returns of 12%.
As of June 2017, PSPAX held 490 issues, with 39.75% of its assets invested in E-mini S&P 500 Sept17.
PIMCO High Yield Municipal Bond D (MUTF:PYMDX) invests a major portion of its assets in debt obligations which are expected to provide income free from federal income tax. PYMDX may invest in investment grade municipal bonds and not more than 30% of its assets in “private activity” bonds. PIMCO High Yield Municipal Bond D has three-year annualized returns of 5.8%.
PYMDX has an expense ratio of 0.85% compared with the category average of 0.92%.
To view the Zacks Rank and past performance of all PIMCO mutual funds, investors can click here to see the complete list of funds.
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