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Just curious if anyone has any thoughts on why this fund is struggling during the market rout. I posed this question on *M, but apparently it isn't proper to inquire as to why one of the biggest bond funds in the world is struggling.
willmat72: I think that FD1000 at M* hits the nail on the head here pretty well -- at least in the responses so far. Too many headwinds hitting this holding with 19% in EM, long U.S. dollar bias, and some high yield based on the fund's comments last month's Others may add some ideas. Best.
Stillers at M* does not mean to discourage you, I guess. He was pointing you to the 300+ posts thread on PIMIX in the past, where there was a heated, but largely good discussion. You can read that thread. I think FD1000 started it.
Stillers at M* does not mean to discourage you, I guess. He was pointing you to the 300+ posts thread on PIMIX in the past, where there was a heated, but largely good discussion. You can read that thread. I think FD1000 started it.
- Mrc
I'm never discouraged Some posters on *M have more time to spend and monitor the boards, whereas I don't. I've seen other threads about PIMIX in the past. This new post was concerned with more of its recent performance, which has been disappointing to me. It is eye-opening at least.
willmat72: I think that FD1000 at M* hits the nail on the head here pretty well -- at least in the responses so far. Too many headwinds hitting this holding with 19% in EM, long U.S. dollar bias, and some high yield based on the fund's comments last month's Others may add some ideas. Best.
It does appear to have a rather large cash-like holding at 32%, so I'm a bit surprised at the extent of the downside movement from the fund.
Remember that PONAX/PIMIX has a (quasi-) defined distribution policy. Last year, the fund had so much extra dvd flowing in that, by year's end, they had a special dvd distribution they had to release (12/29), just ahead of the fund's usual dvd payout (12/31), so that contributed to making it seem like the fund has had an unusual drawdown, which it really hasn't (in terms of total return). Another minor contributor has been the fact the fund chose to hold "a little bit extra" of EM bonds and we have seem how that has gone, haven't we?
It also appeared the fund had, at least for a time, a short position on both ends of the yield curve, on ST and LT Treasuries, but I haven't checked the latest asset allocation.... and that could have been my imagination at work, at the end of 2015.
Hi @heezsafe I find these numbers (M* performance link below) to be in line for 2015 and 1 year total return numbers.
Placement of this fund to other similar funds still finds performance to be very good, eh? One could have and some have done much worst in this bond category for the past 1, 3 and 5 years returns.
I agree that the numbers relative to the category (multisector bond) are impressive. But the numbers compared to the bond aggregate category are way down because of the exposure to EM bonds, high yield and the short positions as noted above. Currently, PIMIX is my largest bond fund holding. It may be time to trim and replace it with something like DODIX as my largest bond fund holding.
Comments
Stillers at M* does not mean to discourage you, I guess. He was pointing you to the 300+ posts thread on PIMIX in the past, where there was a heated, but largely good discussion. You can read that thread. I think FD1000 started it.
- Mrc
It also appeared the fund had, at least for a time, a short position on both ends of the yield curve, on ST and LT Treasuries, but I haven't checked the latest asset allocation.... and that could have been my imagination at work, at the end of 2015.
I find these numbers (M* performance link below) to be in line for 2015 and 1 year total return numbers.
Placement of this fund to other similar funds still finds performance to be very good, eh?
One could have and some have done much worst in this bond category for the past 1, 3 and 5 years returns.
http://performance.morningstar.com/fund/performance-return.action?t=PIMIX®ion=usa&culture=en_US
Regards,
Catch