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Mutual Fund Bond fund seekers may want to consider taking a look at PIMCO CommoditiesPlus Strategy A (PCLAX - Free Report) . PCLAX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various 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 PCLAX. The PIMCO CommoditiesPlus Strategy A made its debut in June of 2010 and PCLAX has managed to accumulate roughly $123.26 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. PCLAX has a 5-year annualized total return of 10.6% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 16.68%, 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. PCLAX's standard deviation over the past three years is 28.85% compared to the category average of 17.65%. Over the past 5 years, the standard deviation of the fund is 24.65% compared to the category average of 15.32%. This makes the fund more volatile than its peers over the past half-decade.
This fund has a beta of -2.17, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PCLAX has a positive alpha of 12.23, 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, PCLAX has 95.34% in high quality bonds rated at least 'AA' or higher. The fund has an average quality of AAA, and focuses on high quality securities.
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, PCLAX is a load fund. It has an expense ratio of 1.19% compared to the category average of 0.83%. PCLAX is actually more expensive than its peers when you consider factors like cost.
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 CommoditiesPlus Strategy A ( PCLAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, PIMCO CommoditiesPlus Strategy A ( PCLAX ) looks like a somewhat average choice for investors right now.
Don't stop here for your research on Mutual Fund Bond funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare PCLAX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.
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Is PCLAX a Strong Bond Fund Right Now?
Mutual Fund Bond fund seekers may want to consider taking a look at PIMCO CommoditiesPlus Strategy A (PCLAX - Free Report) . PCLAX possesses a Zacks Mutual Fund Rank of 3 (Hold), which is based on various 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 PCLAX. The PIMCO CommoditiesPlus Strategy A made its debut in June of 2010 and PCLAX has managed to accumulate roughly $123.26 million in assets, as of the most recently available information. The fund is currently managed by a team of investment professionals.
Performance
Of course, investors look for strong performance in funds. PCLAX has a 5-year annualized total return of 10.6% and is in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 16.68%, 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. PCLAX's standard deviation over the past three years is 28.85% compared to the category average of 17.65%. Over the past 5 years, the standard deviation of the fund is 24.65% compared to the category average of 15.32%. This makes the fund more volatile than its peers over the past half-decade.
This fund has a beta of -2.17, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PCLAX has a positive alpha of 12.23, 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, PCLAX has 95.34% in high quality bonds rated at least 'AA' or higher. The fund has an average quality of AAA, and focuses on high quality securities.
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, PCLAX is a load fund. It has an expense ratio of 1.19% compared to the category average of 0.83%. PCLAX is actually more expensive than its peers when you consider factors like cost.
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 CommoditiesPlus Strategy A ( PCLAX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, worse downside risk, and higher fees, PIMCO CommoditiesPlus Strategy A ( PCLAX ) looks like a somewhat average choice for investors right now.
Don't stop here for your research on Mutual Fund Bond funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare PCLAX to its peers as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.