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There are plenty of choices in the Government Mortgage - Short category, but where should you start your research? Well, one fund that might be worth investigating is PIMCO Low Duration Income Ins (PFIIX - Free Report) . PFIIX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
PFIIX is classified in the Government Mortgage - Short segment by Zacks, which is full of possibilities. Government Mortgage - Short funds focus on the mortgage-backed securities (MBS) market, which packages mortgages together and then sells off the pooled securities as a MBS. Focusing on securities that have less than three years until maturity, this category gives funds a lower yield but lower interest rate sensitivity.
History of Fund/Manager
PIMCO Funds is based in Newport Beach, CA, and is the manager of PFIIX. The PIMCO Low Duration Income Ins made its debut in July of 2004 and PFIIX has managed to accumulate roughly $5.87 billion in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 4.3%, 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 8.04%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. The standard deviation of PFIIX over the past three years is 2.98% compared to the category average of 9.65%. Over the past 5 years, the standard deviation of the fund is 3.57% compared to the category average of 10.89%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, so when judging how fixed income securities will respond in a shifting rate environment, it is an excellent figure to look at.
For investors who think interest rates will rise, this is an important factor to consider. PFIIX has a modified duration of 2.45, which suggests that the fund will decline 2.45% for every hundred-basis-point increase in interest rates.
This fund has a beta of 0.22, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PFIIX has a positive alpha of 2.67, 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, PFIIX has 76% in high quality bonds rated at least "AA" or higher. The fund has an average quality of AA, and focuses on high 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, PFIIX is a no load fund and it has an expense ratio of 0.50%.
This fund requires a minimum initial investment of $1.00 million, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
This puts this fund from PIMCO Funds in the top 20% of all mutual funds we have a rank on right now. As a result, this is likely an excellent choice for investors seeking an option in the Government Mortgage - Short category.
Want even more information about PFIIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.
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Is PFIIX a Strong Bond Fund Right Now?
There are plenty of choices in the Government Mortgage - Short category, but where should you start your research? Well, one fund that might be worth investigating is PIMCO Low Duration Income Ins (PFIIX - Free Report) . PFIIX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.
Objective
PFIIX is classified in the Government Mortgage - Short segment by Zacks, which is full of possibilities. Government Mortgage - Short funds focus on the mortgage-backed securities (MBS) market, which packages mortgages together and then sells off the pooled securities as a MBS. Focusing on securities that have less than three years until maturity, this category gives funds a lower yield but lower interest rate sensitivity.
History of Fund/Manager
PIMCO Funds is based in Newport Beach, CA, and is the manager of PFIIX. The PIMCO Low Duration Income Ins made its debut in July of 2004 and PFIIX has managed to accumulate roughly $5.87 billion in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.
Performance
Investors naturally seek funds with strong performance. This fund in particular has delivered a 5-year annualized total return of 4.3%, 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 8.04%, which places it in the top third during this time-frame.
It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.
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. The standard deviation of PFIIX over the past three years is 2.98% compared to the category average of 9.65%. Over the past 5 years, the standard deviation of the fund is 3.57% compared to the category average of 10.89%. This makes the fund less volatile than its peers over the past half-decade.
Bond Duration
Modified duration is a measure of a given bond's interest rate sensitivity, so when judging how fixed income securities will respond in a shifting rate environment, it is an excellent figure to look at.
For investors who think interest rates will rise, this is an important factor to consider. PFIIX has a modified duration of 2.45, which suggests that the fund will decline 2.45% for every hundred-basis-point increase in interest rates.
This fund has a beta of 0.22, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PFIIX has a positive alpha of 2.67, 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, PFIIX has 76% in high quality bonds rated at least "AA" or higher. The fund has an average quality of AA, and focuses on high 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, PFIIX is a no load fund and it has an expense ratio of 0.50%.
This fund requires a minimum initial investment of $1.00 million, while there is no minimum for each subsequent investment.
Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.
Bottom Line
This puts this fund from PIMCO Funds in the top 20% of all mutual funds we have a rank on right now. As a result, this is likely an excellent choice for investors seeking an option in the Government Mortgage - Short category.
Want even more information about PFIIX? Then go over to Zacks.com and check out our mutual fund comparison tool, and all of the other great features that we have to help you with your mutual fund analysis for additional information. Zacks provides a full suite of tools to help you analyze your portfolio - both funds and stocks - in the most efficient way possible.