The Pimco High Income Fund (PHK) alters its mandate to allow the manager to invest in IO...

The Pimco High Income Fund (PHK) alters its mandate to allow the manager to invest in IO (interest-only) and PO (principal-only) securities, as well as inverse floaters. Pimco's Dynamic Income Fund (PDI) has had a great deal of success with this strategy since its launch about a year ago, and trades at NAV as opposed to the closed-end PHK at a whopping 44% premium to NAV.

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Comments (3)
  • bobbeau
    , contributor
    Comments (10) | Send Message
    I guess its O.K. really don't understand the 44% premium to NAV
    3 Apr 2013, 08:39 PM Reply Like
  • Left Banker
    , contributor
    Comments (3903) | Send Message
    I've been in PDI for about 7 months. Initially appealed to me as a long-time holder of PONDX. I'm continually amazed at its performance. When I bought it I predicted to myself that it would soon be selling for a ridiculous premium and Pimco's CEFs tend to do. Hasn't happened, but who's complaining?
    3 Apr 2013, 10:34 PM Reply Like
  • Michael Fabian
    , contributor
    Comments (50) | Send Message
    I am a holder of PDI and like leftbanker have been impressed with the performance. I recently purchased a starter piece of PCI since it neared parity. NAV performance has been strong in recent weeks. It doesn't have the star factor of Gross or Ivascyn, but I dont remember ever seeing a PIMCO fund with that many managers... I think the drawback is that its a large fund, and also has limited history.
    6 Apr 2013, 12:59 PM Reply Like
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