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4 Strong Buy PIMCO Mutual Funds for Steady Return

With nearly $1.5 trillion assets under management, Pacific Investment Management Company, LLC (commonly known as PIMCO) is considered as one of the well known investment management firms across the globe. The company provides a wide range of financial services in 12 countries with the help of more than 2,300 employees and over 720 professionals. PIMCO offers a broad lineup of investment solutions to its clients that encompass the entire gamut of equities, bonds, currencies, real estates, alternative investments and risk management. Though the firm manages a large number of mutual funds across a wide range, it is best known for its fixed income mutual funds.

Below we share with you four top-rated PIMCO mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all PIMCO funds, investors can click here to see the complete list of PIMCO funds .

PIMCO Income A (PONAX) invests a minimum of 65% of its assets in fixed income securities from a wide range of sectors. These securities may include options, futures contracts and swap agreements. PONAX may invest not more than half of its assets in securities that are rated below investment grade. The PIMCO Income A fund has a five-year annualized return of 7.5%.

As of December 2015, PONAX held 4,022 issues, with 7.76% of its total assets invested in Irs Usd 2.75000 06/17/15-10y Cme.

PIMCO New York Municipal A (PNYAX) seeks high tax-exempted income. PNYAX invests the lion’s share of its assets in debt securities whose interest is exempted from regular federal income tax and New York income tax. PNYAX may invest in “private activity” bonds having interest which is a tax-preference item for the purpose of the federal alternative minimum tax. The fund may also invest in other derivatives. The PIMCO New York Municipal A fund has a five-year annualized return of 5%.

PNYAX has an expense ratio of 0.77% as compared to the category average of 0.93%.

PIMCO StocksPLUS A (PSPAX) maintains a portfolio by investing in fixed income securities related to the S&P 500 including bonds and other derivatives in order to derive higher return compared to the index. PSPAX invest in securities from public as well as private sectors issued worldwide. While PSPAX will not invest more than 30% of its assets in foreign currencies denominated securities, it may invest more than 30% of its assets in foreign securities that are denominated in the U.S. dollar. The PIMCO StocksPLUS A fund has a five-year annualized return of 11.8%.

Sudi N Mariappa is the fund manager of PSPAX since 2014.

PIMCO Low Duration D (PLDDX) seeks to maximize return with capital preservation. PLDDX invests more than 65% of its assets in fixed income securities irrespective of their maturities. PLDDX invests in securities of both domestic and foreign issuers. PLDDX may also invest in forwards, options and futures contracts. The PIMCO Low Duration D fund has a five-year annualized return of 1.4%.

PLDDX has an expense ratio of 0.75% as compared to the category average of 0.80%.

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

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds.


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