December 12, 2012

PIMCO Short-Term Fund (PSHAX) Class A

PIMCO Short-Term Fund (Ticker: PSHAX) is a taxable bond mutual fund. It focuses its assets in high quality bond with short term maturity. It provides higher yield than regular saving account.

PIMCO Short-Term A (Ticker: PSHAX)

The investment objective of PIMCO Short-Term fund is to seek maximum current income, consistent with capital preservation and daily liquidity. The fund utilizes its total assets to purchase a diversified portfolio of Fixed Income Instruments of varying maturities. It may use forwards or derivatives such as options, futures contracts or swap agreements. It invests mainly in investment grade debt securities, but may invest up to 10% of its total assets in high yield securities (“junk bonds”) rated B or higher. The credit rating are rated by Moody’s, or equivalently rated by S&P or Fitch.

Fund Profile
    PIMCO Short-Term Fund
  • Fund Inception Date: 01/20/1997
  • Ticker Symbol: PSHAX
  • CUSIP: 693391211
  • Beta (3yr): 0.03
  • Rank in category (YTD): 19%
  • Category: Ultra short Bond
  • Yield: 0.89%
  • Capital Gains: 0%
  • Expense Ratio: 0.71%
  • Net Assets: $ 11.63 billion
  • Number of Years Up: 13 years
  • Number of Years Down: 1 year
  • Effective duration: 0.95 years
  • Effective maturity: 1.16 years
  • Annual Turnover Rate: 307%
Updated on 12/12/2012

Since 2011, this ultrashort bond fund has been managed by Jerome M. Schneider. This best fund has a yield of 0.89%. Its net annual expense ratio is 0.71% and it includes 12b1 fee of 0.25%. The total net assets are $11.63 billion. It is ranked 3-stars and Gold rating by Morningstar. The effective maturity is 0.95 years and the effective duration is 1.16 years. The fund shares price is $9.91 (as of 12/1/2012).

More: Best Ultrashort Bond Mutual Funds

To start investing in this bond mutual fund, you will need to a minimum initial investment of $1,000 for regular brokerage account. PSHAX can be purchased from 109 brokerages such as Vanguard, JP Morgan, Merrill Lynch, Schwab Retail, Td Ameritrade Inc, EP Fee Small, E Trade Financial, Royal Alliance, Raymond James, etc. Please check with your mutual fund broker for details.

As of September 30, 2012, the fund’s year to date (YTD) performance is 2.77%. This taxable bond fund has returned 2.48% over the past 10-years and 2.04% over the 5-years. This percentage rank in category is 19%. The fund benchmarks are Citigroup 3-Month Treasury Bill Index and Lipper Ultra-Short Obligation Funds Average.

As of June 2012, the sector diversification as per Market Value Weighted is Investment Grade Credit (35%), Government-Agency (21%), Mortgage (14%), Other (14%) and Emerging Markets (5%). The other classes of this fund are Class B (PTSBX), Class C (PFTCX) and Class R (PTSRX).

According to the fund’s prospectus, the principal investment risks are interest rate risk, credit risk, high yield risk, market risk, issuer risk, liquidity risk, derivatives risk, equity risk, mortgage-related and other asset-backed risk, foreign (non-U.S.) investment risk, Currency risk, leveraging risk, management risk, short sale risk, etc.

Disclosure: No Position

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