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.
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