What Do You Think About PIMCO Income Fund?

CDmanFL | Dec 11, 2023 | 286 posts since 2019

I respect the opinions and advice shared here and was wondering what you guys think of the PIMCO Income Fund (PIMIX)? I know this is mainly a CD forum but I’ve seen other income-producing investments discussed here, such as MYGA annuities, I-Bonds, etc. I think this could be an excellent investment in general as well as a profitable hedge if rates go down as the value of these shares (that is, the underlying bonds) increase. It may be an ideal time to add some diversity with this fund or something similar. Thoughts?

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w00d00w | Dec 12, 2023 | 360 posts since 2012

via Morningstar, from PIMCO's prospectus:

Strategy
The investment seeks to maximize current income; long-term capital appreciation is a secondary objective. The fund invests at least 65% of its total assets in a multi-sector portfolio of Fixed Income Instruments of varying maturities, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. It may invest up to 50% of its total assets in high yield securities rated below investment grade by Moody's, S&P or Fitch, or if unrated, as determined by PIMCO.

Some recent portfolio qualities: 17% of below investment grade holdings, a juicy trailing 12 month yield of 7.38%, and an effective duration of 4.74.

https://www.morningstar.com/funds/xnas/pimix/portfolio

CDmanFL | Dec 12, 2023 | 286 posts since 2019

Thank you. I like this fund as a complement to my CDs. I made an investment in it. It's like a fixed income annuity for me but even better because I don't need to forever give away my money to an insurance company and yes, while there is some risk to principal, in reality I don't see it losing much principal even in a bad economy. Plus, the yield is quite juicy (always has been relative to CDs regardless of market conditions) and the track record is excellent. And PIMCO does have a lot of talent at the management level. I jumped in with both feet! Who knows, maybe I'll add even more money as more CDs mature.

w00d00w | Dec 13, 2023 | 360 posts since 2012

PIMCO offers the fund with varying share classes and fortunately you're getting the lowest priced ones. The class A shares with a low minimum initial investment charge a 3.75% front load with ongoing fee of 0.9%. high minimum institutional class share PIMIX is no load with 0.5% fee. Good luck!

CDmanFL | Dec 13, 2023 | 286 posts since 2019

Fidelity offers PONAX (A shares) with no front load and Vanguard offers PIMIX (the beautiful Institutional shares) with no front load and only a $25,000 minimum investment.

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