Is PSLDX a Strong Bond Fund Right Now?

If you have been looking for Government - Bonds: Misc funds, a place to start could be PIMCO StockPlus Long Duration Institutional (PSLDX). PSLDX possesses a Zacks Mutual Fund Rank of 1 (Strong Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

We note that PSLDX is a Government - Bonds: Misc option, and this area is loaded with many different choices. Often seen as risk-free assets and described as extremely low-risk from a default perspective,Government - Bonds: Misc funds hold securities issued by the United States' federal government. This category stretches across the curve, meaning the yields and interest rate sensitivity will vary, but a mixed approach can typically result in a medium yield and risk profile.

History of Fund/Manager

PSLDX finds itself in the PIMCO Funds family, based out of Newport Beach, CA. Since PIMCO StockPlus Long Duration Institutional made its debut in August of 2007, PSLDX has garnered more than $501.72 million in assets. The fund's current manager, Mohit Mittal, has been in charge of the fund since February of 2016.

Performance

Of course, investors look for strong performance in funds. This fund has delivered a 5-year annualized total return of 4.83%, and is in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 16.78%, which places it in the top third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of PSLDX over the past three years is 21.79% compared to the category average of 11.29%. The standard deviation of the fund over the past 5 years is 25.75% compared to the category average of 13.04%. This makes the fund more volatile than its peers over the past half-decade.

Expenses

As competition heats up in the mutual fund market, costs become increasingly important. Compared to its otherwise identical counterpart, a low-cost product will be an outperformer, all other things being equal. Thus, taking a closer look at cost-related metrics is vital for investors. In terms of fees, PSLDX is a no load fund. It has an expense ratio of 0.59% compared to the category average of 0.47%. So, PSLDX is actually more expensive than its peers from a cost perspective.

Investors should also note that the minimum initial investment for the product is $1.00 million and that each subsequent investment has no minimum amount.

Fees charged by investment advisors have not been taken into consideration. Returns would be less if those were included.

Bottom Line

Overall, even with its comparatively strong performance, worse downside risk, and higher fees, PIMCO StockPlus Long Duration Institutional ( PSLDX ) has a high Zacks Mutual Fund rank, and therefore looks a good potential choice for investors right now.

Don't stop here for your research on Government - Bonds: Misc funds. We also have plenty more on our site in order to help you find the best possible fund for your portfolio. Make sure to check out www.zacks.com/funds/mutual-funds for more information about the world of funds, and feel free to compare PSLDX to its peers as well for additional information. If you want to check out our stock reports as well, make sure to go to Zacks.com to see all of the great tools we have to offer, including our time-tested Zacks Rank.

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