PIMCO Convertible Fund (PACNX)

One of the popular PIMCO mutual funds is PIMCO Convertible fund. This convertible mutual fund invest in variety of convertible securities. You will find this bond mutual fund review below.

PIMCO Convertible A (Ticker: PACNX)

The investment aim of PIMCO Convertible fund is to achieve maximum total return, consistent with prudent investment management. This PIMCO fund uses its assets to purchase a diversified portfolio of convertible securities. It may use forwards or derivatives such as options, futures contracts or swap agreements. This convertible bond fund may invest in both investment-grade and high-yield bonds.

Fund Profile

• Fund Inception Date: May 31, 2011
• Ticker Symbol: PACNX
• CUSIP: 693391849
• Beta (3yr): 1.06 
• Rank in category (YTD): 66%
• Category: Convertibles
• Yield: N/A
• Capital Gains: 0%
• Expense Ratio: 1.05%
• Net Assets: $ 1.63 billion
• Number of Years Up: 0 year
• Number of Years Down: 0 year
• Annual Turnover Rate: 43%

Updated on 05/22/2012

PIMCO Convertible fund

This PIMCO fund is introduced to investors in May 2011. It has total net assets of $1.63 billion. This convertible bond mutual fund has 3-stars rating from Morningstar. Currently, there is no yield information. Its expense ratio is 1.05%. The average annual expense ratio in the Convertibles category is 1.23%. It is currently managed by Jonathan L. Horne since March 2010. The 12b1 fee is 0.25%.  It also has 5.50% maximum sales charge.

This balanced fund has YTD return of 7.81%. The 5-year average return is 3.71%. Based on the load adjusted return, the fund has returned 24.07% over the past 3-year, and 6.12% over the past 10-year. The performance of this mutual fund, based on load adjusted returns, is as follow:

• 1-year: -5.85%
• 3-year: 24.07%
• 5-year: 2.54%
• 10-year: 6.12%

Investors who are interested to invest in this investment fund can open a brokerage account with a minimum initial investment of $1,000. This fund can be purchased from a limited range of 16 brokerages, such as Raymond James, Vanguard Load, Common Wealth Core, Ameriprise Brokerage, Pershing Fund Center, TD Ameritrade Retail, etc. The other classes of this fund are Admin Class (PFCAX), Class C (PCCNX), Class D (PCVDX), Institutional Class (PFCIX) and Class G (PCVPX).

The top industry sector exposures of this PIMCO convertible fund as of February 2012 are Technology (24.91%), Pharmaceuticals (7.87%), Banks (5.45%), Metals & Mining (5.18%), Healthcare (4.61%), Automotive (4.21%) and Independent E&P (3.95%). The duration of this convertible securities fund is 0.37 years. The effective maturity is 8.98 years.

According to the fund’s prospectus, this investment fund has the following risks: Interest Rate Risk, Credit Risk, High Yield Risk, Market Risk, Issuer Risk, Liquidity Risk, Derivatives Risk, Equity Risk, Foreign (non-U.S.) Investment Risk, Leveraging Risk, Convertible Securities Risk, etc.

Pros and Cons

Advantages:

• Well known fund family
• Lower expense fee than average

Disadvantages:

• New management since 2010

Disclosure: No Position

Other mutual fund articles:

• Calamos Convertible Fund