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Having trouble finding a Diversified Bonds fund? PIMCO CommoditiesPlus Strategy A (PCLAX - Free Report) is a potential starting point. PCLAX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify PCLAX in the Diversified Bonds category, an area that is rife with potential choices. Diversified Bonds funds offer exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. Generally speaking, bond funds here will have sizable exposure to government debt, as well as modest holdings in the corporate bond market too.
History of Fund/Manager
PCLAX finds itself in the PIMCO Funds family, based out of Newport Beach, CA. The PIMCO CommoditiesPlus Strategy A made its debut in June of 2010 and PCLAX has managed to accumulate roughly $79.09 million in assets, as of the most recently available information. The fund's current manager, Nicholas Johnson, has been in charge of the fund since June of 2010.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 4.24%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of -2%, 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. Over the past three years, PCLAX's standard deviation comes in at 27.59%, compared to the category average of 15.16%. Looking at the past 5 years, the fund's standard deviation is 22.97% compared to the category average of 13%. This makes the fund more volatile than its peers over the past half-decade.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PCLAX is a load fund. It has an expense ratio of 1.19% compared to the category average of 0.88%. From a cost perspective, PCLAX is actually more expensive than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, PIMCO CommoditiesPlus Strategy A ( PCLAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
Your research on the Diversified Bonds segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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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Is PCLAX a Strong Bond Fund Right Now?
Having trouble finding a Diversified Bonds fund? PIMCO CommoditiesPlus Strategy A (PCLAX - Free Report) is a potential starting point. PCLAX possesses a Zacks Mutual Fund Rank of 2 (Buy), which is based on nine forecasting factors like size, cost, and past performance.
Objective
We classify PCLAX in the Diversified Bonds category, an area that is rife with potential choices. Diversified Bonds funds offer exposure to a wide variety of fixed income types, stretching across various issuers, credit levels, and maturities. Generally speaking, bond funds here will have sizable exposure to government debt, as well as modest holdings in the corporate bond market too.
History of Fund/Manager
PCLAX finds itself in the PIMCO Funds family, based out of Newport Beach, CA. The PIMCO CommoditiesPlus Strategy A made its debut in June of 2010 and PCLAX has managed to accumulate roughly $79.09 million in assets, as of the most recently available information. The fund's current manager, Nicholas Johnson, has been in charge of the fund since June of 2010.
Performance
Investors naturally seek funds with strong performance. This fund carries a 5-year annualized total return of 4.24%, and it sits in the top third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3-year annualized total return of -2%, 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. Over the past three years, PCLAX's standard deviation comes in at 27.59%, compared to the category average of 15.16%. Looking at the past 5 years, the fund's standard deviation is 22.97% compared to the category average of 13%. This makes the fund more volatile than its peers over the past half-decade.
Expenses
Costs are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, PCLAX is a load fund. It has an expense ratio of 1.19% compared to the category average of 0.88%. From a cost perspective, PCLAX is actually more expensive than its peers.
This fund requires a minimum initial investment of $1,000, and each subsequent investment should be at least $50.
Bottom Line
Overall, PIMCO CommoditiesPlus Strategy A ( PCLAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
Your research on the Diversified Bonds segment doesn't have to stop here. You can check out all the great mutual fund tools we have to offer by going to www.zacks.com/funds/mutual-funds to see the additional features we offer as well 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.