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Anyone know PONAX?

edited September 2011 in Fund Discussions
Does anyone have any insights into the PIMCO Income Fund (PONAX)? We need more bond exposure in our portfolio, and this looks good, but I’m no bond expert. The fund is only 4 years old, but has done well except for 2008. Current yield is 5.76%. It uses a multi-sector approach.

Thank you,



  • Howdy Archaic,

    Gotta go do some outside work while the weather gods are smiling upon our part of Michigan........but, a few quick cents worth.
    This fund type is positioned a bit like DBLTX, although neither are similar to FSICX, which is more of a multi sector bond fund.
    But, this fund may fit in with other bond funds you hold that have little or limited exposure to the mortgage related bond area. NOTE: I have not read the prospectus for PONDX, to determine how multi-sector it may become.
    An instant savings/profit of 3.75% exists if you choose load, as is the case for the advisor class, PONAX. The funds are twins.

    I'll be back..........

  • I've followed Pimco Income for a while (and held it for several months starting Q4 2010), and, as Catch says above, it acts like a de facto mortgage fund that dabbles in other bond sectors where the manager sees value. Over the past few months, it's stalled significantly from its previous high-octane momentum.

    Imho, it's likely to be a good fund longer term, but DoubleLine does mortgages better, and if you want a true "multi" sector bond fund, you may need to look elsewhere - although if you're stock-heavy and bond-light, you may want to look at core bond funds instead, because they offer a diversification benefit where MS funds generally correlate with stocks.

    If you decide to go for Pimco Income, try to get Pimix, the institutional & least expensive share class. Vanguard offers it for a $25k minimum with a $20-$35 transaction fee; other brokerages probably offer similar deals. (Vanguard sells most (all?) Pimco I-class funds on the same basis.)

    Otherwise, in addition to DoubleLine, I'd look at TCW and MetWest offerings as the best source of core bond funds, if you want to consider those.
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