Founded in 1971, Pacific Investment Management Company, LLC or PIMCO is an internationally acclaimed investment management firm. The company provides a wide range of financial services across the globe with the help of more than 2,800 employees. PIMCO had around $2.21 trillion assets under management as of Dec 31, 2020.
PIMCO offers a broad lineup of investment solutions for the entire gamut of equities, bonds, currencies, real estate, alternative investments and risk-management services. 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 top-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 funds.
PIMCO Low Duration Income Fund Class A PFIAX aims to maximize current income as its primary objective. The fund also aims for appreciation of capital in the long run. PFIAX invests a minimum of 65% of its assets in a multi-sector portfolio of fixed-income securities of varying maturities, the likes of which may include forwards or derivatives such as options, futures contracts or swap agreements. PFIAX has returned 3.8% in the past three years.
As of the end of December 2020, PFIAX held 1,868 issues, with 7.66% of its assets invested in Federal National Mortgage Association (OTC:FNMA) 3.5%.
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 has returned 6.2% in the past three years.
FXIMX has an expense ratio of 0.06% compared with the category average of 0.98%.
PIMCO High Yield Municipal Bond Fund Class A PYMAX invests the major portion of its assets in debt securities that are expected to provide income free from federal income tax. PYMAX may invest in investment grade municipal bonds and not more than 30% of its assets in "private activity" bonds. PYMAX has three-year annualized returns of 6.2%.
David Hammer has been one of the fund managers of PYMAX since 2015.
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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