Pacific Investment Management Company, LLC (commonly known as PIMCO) is an internationally acclaimed investment management firm. The company provides a wide range of financial services in 12 countries with the help of more than 2,100 employees and over 650 professionals. It has around $1.47 trillion assets under management as of December 31, 2016.
PIMCO offers a broad lineup of investment solutions to its clients that encompass the entire gamut of equities, bonds, currencies, real estates, alternative investments and risk management. Though the firm manages an array of mutual funds, it is best known for those based on fixed income.
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 Short Duration Municipal Income Fund A (MUTF:PSDAX) seeks growth of income exempted from federal income tax, as well as preservation of capital. It invests a bulk of its assets in debt securities whose interest is free from federal income tax. It may also invest at least one-fourth of its assets in bonds of companies based in New York and California. The fund has a three-year annualized return of 0.5%.
PSDAX has an expense ratio of 0.73% compared with the category average of 0.94%.
PIMCO Income Fund D (MUTF:PONDX) invests more than 65% of its assets in a multi-sector portfolio of fixed income securities. It may also invest around half of its assets in high yield debt securities. The fund seeks growth of income and capital. It has a three-year annualized return of 5.7%.
As of December 2016, PONDX held 5008 issues, with 5.63% of its assets invested in Cdx Hy25 5y Ice.
PIMCO StocksPLUS International Fund (U.S. Dollar-Hedged) D (MUTF:PIPDX) seeks returns ahead of the fund's benchmark index. It invests heavily in foreign equity derivatives and fixed-income instruments issued by both domestic and foreign entities. The fund has a three-year annualized return of 7.6%.
PIPDX has an expense ratio of 1.15% compared with the category average of 1.16%.