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Is PIMIX a Strong Bond Fund Right Now?

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There are plenty of choices in the Diversified Bonds category, but where should you start your research? Well, one fund that you should consider investigating is PIMCO Income Institutional (PIMIX - Free Report) . PIMIX carries a Zacks Mutual Fund Rank of 3 (Hold), which is based on nine forecasting factors like size, cost, and past performance.

Objective

PIMIX is one of many Diversified Bonds funds to choose from. Diversified Bonds funds give investors exposure to a variety of fixed income types that span across different issuers, maturities, and credit levels. Usually, these funds will have a good amount of exposure to government debt, in addition to modest holdings in the corporate bond market.

History of Fund/Manager

PIMIX is a part of the PIMCO Funds family of funds, a company based out of Newport Beach, CA. PIMCO Income Institutional debuted in April of 2007. Since then, PIMIX has accumulated assets of about $56.06 billion, according to the most recently available information. The fund is currently managed by Daniel J. Ivascyn who has been in charge of the fund since April of 2007.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 5.48%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 5.02%, which places it in the top third during this time-frame.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. Compared to the category average of 7.78%, the standard deviation of PIMIX over the past three years is 2.26%. Looking at the past 5 years, the fund's standard deviation is 2.54% compared to the category average of 7.61%. This makes the fund less volatile than its peers over the past half-decade.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, PIMIX is a no load fund. It has an expense ratio of 0.48% compared to the category average of 0.91%. PIMIX is actually cheaper than its peers when you consider factors like cost.

Investors need to be aware that with this product, the minimum initial investment is $1 million; each subsequent investment has no minimum amount.

Bottom Line

Overall, PIMCO Income Institutional has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and lower fees, PIMCO Income Institutional looks like a somewhat average choice for investors right now.

Want even more information about PIMIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Want to learn even more? We have a full suite of tools on stocks that you can use to find the best choices for your portfolio too, no matter what kind of investor you are.


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