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Does anyone own this fund? When I first saw it's yield I thought what a money maker but further analysis leads me to believe this fund may be a NAV eater. Any comments welcome.
Hi Dante, A quick note. The fund ticker is good in the subject line, but you should also place the ticker into the text PIXDX so that others may have a quick link to M* or the other sites for a fast reference so they know what fund is being discussed. You may also add the fund name in the subject line. Not pick'in on ya....... Regards, Catch
Dante. Don't worry too much about NAV erosion. It can happen in high yielding funds (I gave the example of Vanguard High Yield fund for example).
A lot of high yield (junk) bond funds have this characteristic. Also a lot of derivative driven funds like the way PIMCO does will be subject to NAV erosion. You need to add it the distributions for the real picture i.e. Total Return. Fund investors should never be concerned about the NAV. They should only look at the Total Return and percent changes of the total return. The NAV can be anything.
Comments
Not pick'in on ya.......
Regards,
Catch
A lot of high yield (junk) bond funds have this characteristic. Also a lot of derivative driven funds like the way PIMCO does will be subject to NAV erosion. You need to add it the distributions for the real picture i.e. Total Return. Fund investors should never be concerned about the NAV. They should only look at the Total Return and percent changes of the total return. The NAV can be anything.