Pacific Investment Management Company, LLC (commonly known as PIMCO) is a well-known investment management firm across the globe. It offers a broad lineup 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 range, it is best known for its fixed-income mutual funds. It boasts more than 2,150 employees working in 11 countries and trading operations in North America, Europe and Asia.
Below we share with you four best-ranked 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 StocksPLUS Small Fund D (MUTF:PCKDX) seeks growth of return which is greater than that of the Russell 2000 Index. It invests in derivatives included in the Russell 2000 Index, which are backed by a wide array of portfolio covering fixed-income instruments. These fixed-income instruments include bonds and debt securities of domestic as well as foreign public or private sector companies. The fund has returned 9.1% in the last three-year period.
PCKDX has an expense ratio of 1.09%, compared with the category average of 1.21%.
PIMCO California Intermediate Municipal Bond Fund A (MUTF:PCMBX) invests the lion's share of its assets in debt securities whose interest is free from federal income tax and California income tax. It may also invest almost 10% of its assets in high yield securities which are B or higher rated by Moody's or equivalently by S&P or Fitch. The fund seeks growth of income exempted from federal and California income tax. The fund has returned 2.1% in the last three-year period.
Julie Callahan has been one of the fund managers of PCMBX since 2015.
PIMCO High Yield Spectrum Fund D (MUTF:PHSDX) seeks maximization of returns. The fund invests a bulk of its assets in a portfolio of junk bonds or high yield securities. These debt securities include convertibles, forwards or derivatives which are rated below investment grade by Moody's or equivalently by S&P or Fitch. It has returned 4.4% in the last three-year period.
As of December 2016, PHSDX held 633 issues, with 0.94% of its assets invested in Crimson Merger Sub / Ortho-C 144A 6.625%.
PIMCO New York Municipal Fund A (MUTF:PNYAX) invests the majority of its assets in debt securities whose interest is exempted from regular federal income tax and New York income tax. It may invest in "private activity" bonds having interest which is a tax-preference item for the purpose of the federal alternative minimum tax. It may also invest in other derivatives. The fund has returned 3.3% in the last three-year period.
PNYAX has an expense ratio of 0.77%, as compared to the category average of 0.94%.