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Mutual Fund Commentary

Pacific Investment Management Company, LLC (commonly known as PIMCO) is a well-known investment management firm across the globe. It offers a broad lineup of investment solutions 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. It boasts more than 2,200 employees working in 13 offices across 12 countries.

Below we share with you three best-rated PIMCO mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of PIMCO funds.

PIMCO High Yield Municipal Bond A (PYMAX - Free Report) invests a major portion of its assets in debt obligations that are expected to provide income free from federal income tax. PYMAX may invest in investment grade municipal bonds and not more than 30% of its assets in "private activity" bonds. PIMCO High Yield Municipal Bond A has a three-year annualized return of 6.5%.

PYMAX has an expense ratio of 0.85% as compared to a category average of 0.94%.

PIMCO Real Estate Real Return Strategy A (PETAX - Free Report) seeks to provide maximum real return. PETAX invests in real estate-linked derivatives and a basket of inflation-indexed securities to achieve its investment objective. The fund also invests in Fixed Income Instruments including bonds and debt instruments issued by domestic or foreign public and private sector entities. PIMCO Real Estate Real Return Strategy A has a three-year annualized return of 12.4%.

As of June 2016, PETAX held 455 issues with 37.32% of its assets invested in US Treasury Note.

PIMCO New York Municipal A (PNYAX - Free Report) invests the majority of its assets in debt securities whose interest is exempt from regular federal income tax and New York income tax. PNYAX may invest in “private activity” bonds having interest which is a tax-preference item for the purpose of the federal alternative minimum tax. The fund may also invest in other derivatives. PIMCO New York Municipal A has a five-year annualized return of 4.1%.

PNYAX has an expense ratio of 0.77% as compared to the category average of 0.87%.

To view the Zacks Rank and past performance of all PIMCO mutual funds, investors can click here to see the complete list of funds.

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