Morn'in Coffee from MI to Ya'll,
PETDX. I would like to sit for a day and have the managers of this fund explain the tools available to them to use for operating this fund. Then, I would hang around for the remaining 4 days of a normal week and watch the moves and understand the "whys". There are other classes of this fund, but this class is in the afforable reach of the individual investor.
I have watched/thought about this fund for awhile and I still scratch my head about the name, the returns, their methods and try to understand the most current data about holdings and the big picture.
Perhaps this house will throw some sticky money against this fund's wall and find how much sticks in place. Not unlike our CAMAX holding, I classify this as a hot dog holding that could actually fall off the roasting stick, into the fire, burn to a crisp and no longer fit for eating.....:):):)
Just a little 2 cups of coffee chatter from this house, this morning.
Take care,
Catch
Comments
Not sure about the data you are looking at in Yahoo, but if you go to M* / Performance, and compare PETDX and CSRSX, growth of $10,000 isn't much different between the two funds since 2004. Actually, PETDX grew to $26000, 2004 - YTD 2011. Slightly better than CSRSX.
Something strange about the share price for PETDX. If you look back around the end of Dec, 2004, it looks like the price was adjusted. It took abpit a 30% drop in a day. Anyway, your 10k growth analysis doesn't appear accurate.
I don't think you should only look at the NAV chart. You need to look at the total returns as these funds have a very large dividend yield (REITs have to distribute the majority of their income for maintaining tax favored status). If you look at the total return, you will get a different picture.
For those using Yahoo Finance to chart funds using 200 day MA's, this is not a good practice and it's not an accurate measure of fund performance, particularly for funds that pay large distributions. MikeM's post regarding using M* is accurate. M* is a better tool for charting fund returns. As to the major dip in price in 2004, this was not a price change, but a true decline in value. The REIT market fell by 20% from April through May 2004. It recovered strongly from there. PIMCO Real Real Estate fell by about 24% during the same time.
I can't fully explain the 18% TTM distribution other than to say that it isn't really a sustainable number and one should not expect an 18% total return from the fund by any means. PIMCO's other funds run in this manner also have double-digit payouts over the last year. If you do continue to receive that payout, you will no doubt also be getting NAV erosion.
Growth of $10,000 = 26,504.38
Giant divs have eroded the NAV. See a number of other, similar Pimco funds that offer similarly giant dividends (PIXDX w/a 21.66% *listed* yield) for similar results.
Lastly, the SEC 30 day yield is just shy of 8% for this fund.
Regards,
Catch
Hi Dante,
No, our house hasn't and currently does not own this one. I noted in the original post that we having been looking at this fund. Based on the M* performance, and as noted; 2004 was a general REIT area problem and one also finds 2007 being a fairly big negative, and of course the 2008 melt.
We would only consider to use this fund as an add-to other unrelated sector/type holdings. We currently have a conservative REIT fund, FRIFX; and PETDX could be a tag along for this sector portion, with a bit more "fire".
We currently are awaiting the outcome of the follies in DC to find broad market reactions to the decisions being made and/or finalized.
We are sitting with about 13% cash that needs a good home for some growth, but will wait a few more weeks to attempt to find the path.
Thank you for your questions and thoughts regarding this fund. This is what helps all of us learn, think and stay sharp.
Regards,
Catch
A quick note about posting. You will find with your own post, as long as you are signed into MFO, an edit button next to the reply button. For your second post here you could have used the edit button to add to your first post. When you are finished with "edit" you with find a "save comment" at the bottom of your editied post. This will help keep the discussion thread cleaner, as some discussions can be long.
Also, you should post about PIXDX and ask whether anyone holds this fund.
Take care,
Catch