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3 PIMCO Mutual Funds to Buy Now

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Founded in 1971, Pacific Investment Management Company, LLC or PIMCO is an internationally acclaimed investment management firm. The company provides a wide range of financial services across the globe with the help of more than 2,400 employees. PIMCO had around $1.72 trillion assets under management as of Sep 30, 2018.

PIMCO offers a broad lineup of investment solutions that encompass the entire gamut of equities, bonds, currencies, real estates, alternative investments and risk management. Though the firm manages an array of mutual funds, it is best known for those based on fixed income.

Below we share with you three top-ranked PIMCO mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of PIMCO funds .

PIMCO StocksPLUS A PSPAX seeks returns higher than that of the S&P 500 Index. The fund focuses on fixed income instruments like bonds, debt securities and other similar instruments issued by various domestic and foreign public- or private-sector entities. PSPAX normally invests about 30% of its assets in securities denominated in foreign currencies. PIMCO StocksPLUS A has three-year annualized returns of 11.7%.

As of Sep 30, 2018, PSPAX held 559 issues, with 29.15% of its assets invested in 90 Day Eurodollar Future Mar19.

PIMCO High Yield Municipal Bond A PYMAX invests the major portion of its assets in debt obligations that are expected to provide income free from federal income tax. PYMAX may invest in investment grade municipal bonds and not more than 30% of its assets in "private activity" bonds. PIMCO High Yield Municipal Bond A has three-year annualized returns of 4.5%.

David Hammer is one of the fund managers of PYMAX since 2015.

PIMCO Municipal Bond A PMLAX seeks a high level of income free from federal income tax as well as preservation of capital. PMLAX invests the bulk of its assets in debt securities whose interest is exempted from federal income tax like muni bonds. The fund may also invest around one-fifth of its assets in money market instruments and U.S. government securities. PIMCO Municipal Bond A has three-year annualized returns of 2.77%.

PMLAX has an expense ratio of 0.79% compared with the category average of 0.84%.

To view the Zacks Rank and past performance of all PIMCO mutual funds, investors can click here to see the complete list of funds .

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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