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Having trouble finding a Mutual Fund Bond fund? PIMCO High Yield Municipals Bond A (PYMAX - Free Report) is a potential starting point. PYMAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
PIMCO Funds is based in Newport Beach, CA, and is the manager of PYMAX. PIMCO High Yield Municipals Bond A made its debut in August of 2006, and since then, PYMAX has accumulated about $687.11 million in assets, per the most up-to-date date available. The fund is currently managed by David Hammer who has been in charge of the fund since August of 2015.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 0.93%, and is 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 -2.62%, 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 14.62%, the standard deviation of PYMAX over the past three years is 8.79%. The standard deviation of the fund over the past 5 years is 7.11% compared to the category average of 12.69%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.02, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, PYMAX has a positive alpha of 0.93, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, PYMAX has 22.16% in high quality bonds rated at least 'AA' or higher, while 37.48% are of medium quality, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 39.73%, giving PYMAX an average quality of BBB. This means that it focuses on medium quality securities.
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, PYMAX is a load fund. It has an expense ratio of 0.85% compared to the category average of 0.79%. Looking at the fund from a cost perspective, PYMAX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, PIMCO High Yield Municipals Bond A ( PYMAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.
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Is PYMAX a Strong Bond Fund Right Now?
Having trouble finding a Mutual Fund Bond fund? PIMCO High Yield Municipals Bond A (PYMAX - Free Report) is a potential starting point. PYMAX has a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.
History of Fund/Manager
PIMCO Funds is based in Newport Beach, CA, and is the manager of PYMAX. PIMCO High Yield Municipals Bond A made its debut in August of 2006, and since then, PYMAX has accumulated about $687.11 million in assets, per the most up-to-date date available. The fund is currently managed by David Hammer who has been in charge of the fund since August of 2015.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 0.93%, and is 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 -2.62%, 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 14.62%, the standard deviation of PYMAX over the past three years is 8.79%. The standard deviation of the fund over the past 5 years is 7.11% compared to the category average of 12.69%. This makes the fund less volatile than its peers over the past half-decade.
This fund has a beta of 1.02, meaning that it is more volatile than a broad market index of fixed income securities. Taking this into account, PYMAX has a positive alpha of 0.93, which measures performance on a risk-adjusted basis.
Ratings
Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, PYMAX has 22.16% in high quality bonds rated at least 'AA' or higher, while 37.48% are of medium quality, with ratings of 'A' to 'BBB'. The fund's junk bond component-bonds rated 'BB' or below-is at 39.73%, giving PYMAX an average quality of BBB. This means that it focuses on medium quality securities.
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, PYMAX is a load fund. It has an expense ratio of 0.85% compared to the category average of 0.79%. Looking at the fund from a cost perspective, PYMAX is actually more expensive than its peers.
Investors should also note that the minimum initial investment for the product is $1,000 and that each subsequent investment needs to be at $50.
Bottom Line
Overall, PIMCO High Yield Municipals Bond A ( PYMAX ) has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, better downside risk, and higher fees, this fund looks like a good potential choice for investors right now.
For additional information on this product, or to compare it to other mutual funds in the Mutual Fund Bond, make sure to go to www.zacks.com/funds/mutual-funds for additional information. And don't forget, Zacks has all of your needs covered on the equity side too! Make sure to check out Zacks.com for more information on our screening capabilities, Rank, and all our articles as well.