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Bond Funds Are Feeling the Pain. There’s An Exception At Pimco: (PONAX)

FYI: The recent fixed-income selloff means large bond funds have posted losses in November. That might surprise investors who have seen healthy gains from bonds for most of the year.

But one popular Pimco fund is bucking the trend, climbing during the turbulence—though its conservative posture has caused it to lag for most of the year.

M* Snapshot PONAX:


  • edited November 2019
    PONAX is one of Old_Skeet's fund holdings found in the income area of my portfolio. Year to date it trails most of the other funds found within its sleeve; but, for November (as the article states) it and a few other of it's income sleeve members are up while the others (within the sleeve) are down. With this, I've got four that are up, thus far, for Novemeber and five that are down. For November my income sleeve is down -0.28% while year to date it is up +8.95%. Overall, thus far, for November I'm up +0.22% and year to date +13.75%. I'm thinking not to bad for a 20%cash, 40% income, and 40% equity portfolio with a yield of about 3.2%; and, with anticipated yearend capital gain distributions figured in this will put the total income distribution yield at better than 5%. This results in more income than I need; but, it does leave some left for new investment opportunity.
  • PIMIX lost its mojo since early 2018. In 2019 PIMIX managers continue to make fatal mistakes which put its performance in the bottom 10% for YTD until several weeks ago. The managers finally got it right (about rising rates) but it still ranks in the bottom 20%. I think its best days are over, PIMIX may still be an above-average fund
    but not in the top 10%. PIMIX was my biggest % fund for years (40-50% and more) and the easiest fund to hold. In the last year I have been using JMSIX,EIXIX and IOFIX instead.
  • A number of Pimco funds have been on a nice run since the Argentine bond debacle in August. Pimco seems to have the correct macro view right now.
  • The author of the link=
    Is comparing PIMIX=Multisector fund to Investment Grade funds which is not correct.
    MS funds (IOFIX,JMSIX) + HY (ARTFX) + EIFAX (bank loans) are up in Nov and the first 3 funds are also doing much better YTD.
  • I have come to prefer some funds of Prudential. PDBZX, PHYZX. Also for total return WATFX
  • msf
    edited November 2019
    Since you mentioned WATFX, have you looked at WBND? Same management team. Seems to fall somewhere between WATFX and WACPX. Duration closer to WATFX (around 6 years), portfolio sector distribution closer to WATFX (½ MBS, ¼ IG), but with the flexibility of WACPX (per prospectuses) and similar 10% foreign currency exposure. All three have about the same ER.

    WATFX is NTF with a $100 min at Schwab. WBND is NTF at many brokerages these days (lots of places giving away stock/ETF trades), though there's still a small "SEC fee" on sales and a bid/ask spread.

    Side note: M* analysts (humans) rate the people and the process for both the OEFs as positive. M*'s AI system rates people and process as negative for WBND, even though it's the same people and as near as I can tell a similar process.
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