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Is PONCX a Strong Bond Fund Right Now?

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If you have been looking for Diversified Bonds funds, a place to start could be PIMCO Income C (PONCX - Free Report) . PONCX holds a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on nine forecasting factors like size, cost, and past performance.

Objective

The world of Diversified Bonds funds is an area filled with options, such as PONCX. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. Typically, these funds have a solid amount of exposure to government debt, as well as modest holdings in the corporate bond market.

History of Fund/Manager

PIMCO Funds is based in Newport Beach, CA, and is the manager of PONCX. PIMCO Income C made its debut in April of 2007, and since then, PONCX has accumulated about $9.10 billion in assets, per the most up-to-date date available. The fund is currently managed by Daniel J. Ivascyn who has been in charge of the fund since April of 2007.

Performance

Obviously, what investors are looking for in these funds is strong performance relative to their peers. PONCX has a 5-year annualized total return of 4.26% 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 4.38%, 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. Over the past three years, PONCX's standard deviation comes in at 2.25%, compared to the category average of 7.83%. Over the past 5 years, the standard deviation of the fund is 3.17% compared to the category average of 7.78%. This makes the fund less volatile than its peers over the past half-decade.

Expenses

For investors, taking a closer look at cost-related metrics is key, since costs are increasingly important for mutual fund investing. Competition is heating up in this space, and a lower cost product will likely outperform its otherwise identical counterpart, all things being equal. In terms of fees, PONCX is a no load fund. It has an expense ratio of 1.60% compared to the category average of 0.92%. So, PONCX is actually more expensive than its peers from a cost perspective.

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 Income C has a high Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and higher fees, PIMCO Income C 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 Diversified Bonds, make sure to go to www.zacks.com/funds/mutual-funds 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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