With nearly $1.51 trillion assets under management, Pacific Investment Management Company, LLC (commonly known as PIMCO) is considered as one of the well-known investment management firms across the globe. The company provides a wide range of financial services in 12 countries with the help of more than 2,200 employees and over 700 professionals. PIMCO offers a broad lineup of investment solutions to its clients 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 its fixed income mutual funds.
Below we share with you four top-rated PIMCO mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and we expect the fund to outperform its peers in the future. Investors can click here to see the complete list of PIMCO funds.
PIMCO High Yield Spectrum D seeks to maximize returns. PHSDX invests a majority of its assets in high-yield securities like “junk bonds” which are ranked lower than investment grade. PHSDX may also invest in various derivative instruments like swap agreements. The PIMCO High Yield Spectrum D fund has year-to-date, three-year and five-year annualized returns of 9.3%, 4% and 6.2%, respectively.
Andrew Jessop is one of the fund managers of PHSDX since 2010.
PIMCO High Yield Municipal Bond D invests a lion’s share of its assets in debt obligations which are expected to provide income that are 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. The PIMCO High Yield Municipal Bond D has year-to-date, three-year and five-year annualized returns of 7.3%, 8.5% and 7.3%, respectively.
PYMDX has an expense ratio of 0.85% compared to the category average of 0.94%.
PIMCO Real Estate Real Return Strategy D seeks to provide maximum real return. PETDX invests in real estate-linked derivatives and a basket of inflation-indexed securities to achieve its investment objective. PETDX also invests in Fixed Income Instruments including bonds and debt instruments issued by domestic or foreign public and private sector entities. The PIMCO Real Estate Real Return Strategy D has year-to-date, three-year and five-year annualized returns of 15.4%, 15% and 14.2%, respectively.
As of March 2016, PETDX held 442 issues with 29.47% of its assets invested in US Treasury Note.
PIMCO Foreign Bond (USD-Hedged) D invests the majority of its assets in Fixed Income Instruments that are economically linked to a minimum of three non-U.S. nations. PFODX generally invests in investment grade bonds and nearly one-tenth of its assets in junk bonds. PFODX may also invest in derivative instruments. The PIMCO Foreign Bond (USD-Hedged) D is a non-diversified fund and has year-to-date, three-year and five-year annualized returns of 6.5%, 6.1% and 6.1%, respectively.
PFODX has an expense ratio of 0.90% compared to the category average of 0.95%.
To view the Zacks Rank and past performance of all PIMCO mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Pick the best mutual funds with the Zacks Rank.