• 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5

Where are you regarding PIMCO Income Fund (PONAX and PIMIX) for retirement income?

PIMCO Income Fund (PONAX and Institutional PIMIX) has been noted for years by investors on this forum as a key multisector bond fund for retirement income (PIMIX currently 4.06% 30-day SEC yield; 5.45% dividend yield 6/30/18). Morningstar rating remains at the top of the chart. PIMIX was recently 'dropped' from research coverage at Fidelity (perhaps because the minimum was raised from $100K to $1M).  PIMIX/PONAX keep dividend yield up and duration down with riskier strategies, but are showing impact of interest rate increases this year that cut into total return.  How are retirement investors currently viewing PONAX/PIMIX for the long term?  Keep for the income level (i.e, figuring good income level that's hard to replicate, the interest rate impact ultimately covered by dividends, and PIMIX now hard to get back into later with the new minimum) or consider other alternatives (and what are those?)?  Thanks.
I'm just sitting on our PONAX, at 3% of portfolio. I just consider it part of the total bond portfolio, total about 25% of portfolio. Ain't buying more, but don't see the point of doing anything else (though I did cash out of one bond fund to secure cash for 2 year's expenses).
I am holding PIMIX as 9% of my IRA portfolio.  While the results have been less than stellar this year in the current rising rate environment, I don't see any better alternatives in the bond arena. 
a newsletter called profitable investing by Neil George had it in its income portfolio, and has since put in a sell order on it. He does not like the changes and he tends to very conservative I have a large position in it, and these changes and its relative poor performance have me thinking of selling part or all of it
I sold and have not looked back.

I'm not going to list a mess of alternatives, but even FFRHX or FZDXX have done better since.
Thanks for all of the replies thus far.  Sounds like the consensus is staying pat with PIMCO positions that have generated good income for many years. I have about 13% of overall portfolio in PIMIX/PONAX and didn't see any better alternatives for right now.  Looking at it the same way as many look at dividend generating stocks while retired--take the income and don't worry about fluctuations in the basis.  Want solid income generators for the long term--low duration bond funds (e.g., bank loan), individual bonds held to maturity, CDs, and cash can take care of the short term.
I admit I was tempted but never owned PIMIX/PONAX/PONDX, as I could never get comfortable with it.

It is highly leveraged and is not like a traditional bond fund that owns fixed income assets. Instead it seems as if it is betting on the future shape of the yield curve through interest rate swaps.  The credit quality distribution of the holdings is not readily available (or may be impossible or meaningless to define), so it is difficult (at least for me) to judge.  No doubt the managers are expert at what they are doing, but so were Long Term Capital Management. See: Long-Term Capital Management (LTCM)

It has done well over time, but it is not something for me.  If I cannot understand something, I tend to avoid owning it. It is not a risk a need to take.
Had close to 10% of my retirement fund in PONDX as of last year. Converted it to PIMIX earlier this year. Sold all over a month ago and bought short term CDs. Makes no sense to pay managers to lose money. I can do that cheaper on my own
When rates started to raise, I sold out of most of my bond funds and went to ladders instead. Never looked back.
The only funds I have are ones that are hard or impossible to ladder like a high yield, ARTFX and floating rate, SPFPX.
Great fund wrong timing.. also bond funds are not bonds and don’t perform the same

Forum Jump:

Users browsing this thread: 1 Guest(s)