PIMCO or Pacific Investment Management Company, LLC is a well-known global investment management firm. It offers a broad line-up 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 spectrum, it is best known for fixed income mutual funds. It boasts more than 2,800 employees across 12 countries and has trading operations in North America, Europe and Asia. The company had around $2.21 trillion of assets under management as of Dec 31, 2020.
Below we share with you three top-ranked PIMCO mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.
PIMCO Fixed Income SHares: Series M FXIMX fund aims for maximum total return along with the preservation of capital and prudent investment management. The fund invests the majority of its assets in a portfolio of domestic and foreign fixed income instruments of varying maturities that include mortgage- and other asset-backed securities, corporate debt securities, and floating and variable rate debt instruments. FXIMX sports a Zacks Mutual Fund Rank #1 and has returned 6.9% in the past three years.
As of the end of December 2020, FXIMX held 1,044 issues, with 16.32% of its assets invested in Federal National Mortgage Association 2.5%.
PIMCO High Yield Fund Class A PHDAX aims for maximum total return. The fund invests the majority of its assets in a diversified portfolio of high-yield investments such as junk bonds. It may also invest a minority of its assets in securities rated Caa or below by Moody’s or rated likewise by the S&P or Fitch. If the security is unrated, PIMCO determines its quality. PHDAX carries a Zacks Mutual Fund Rank #2 and has returned 5.5% in the past three years.
PHDAX has an expense ratio of 0.92% compared with the category average of 1.00%.
PIMCO Diversified Income Fund Class C PDICX seeks to maximize total return on investment, which is on par with preservation of capital. The fund invests the majority of its assets in a diverse portfolio of Fixed Income Instruments of varying maturities. It may also invest in investment-grade as well as high-yield securities. PDICX sports a Zacks Mutual Fund Rank #1 and has three-year annualized returns of 4.4%.
Eve Lagrellette Tournier is the fund manager of PDICX since 2016.
To view the Zacks Rank and the past performance of all PIMCO mutual funds, investors can click here to see the complete list of funds.
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