PIMCO Emerging Markets Bond Fund (PAEMX)

PIMCO Emerging Markets Bond Fund (PAEMX) is a taxable bond mutual fund. The mutual fund invests in emerging market debts issued by developing countries.

PIMCO Emerging Markets Bond Fund (MUTF:PAEMX)

The PIMCO Emerging Markets Bond Fund objective is to seek maximum total return, consistent with capital preservation and prudent investment management. The fund utilizes its assets to purchase Fixed Income Instruments that are economically tied to emerging market countries. It may use forwards or derivatives such as options, futures contracts or swap agreements to invest. It may invest in both investment-grade securities and junk bonds. The fund is non-diversified.

Fund Details

PIMCO EM Bond Fund

• Fund Inception Date: 07/31/1997
• Ticker Symbol: PAEMX
• CUSIP: 693391575
• Beta (3yr): 0.51
• Rank in category (YTD): 65%
• Category: Emerging Markets Bond
• Distribution: 3.88%
• Capital Gains: 0%
• Expense Ratio: 1.25%
• Net Assets: $ 8.02 billion
• Number of Years Up: 12 years
• Number of Years Down: 2 years
• Average duration: 6.30 years
• Average maturity: 10.82 years
• Annual Turnover Rate: 12%

Updated on 3/5/2013

This emerging markets bond mutual fund is managed by Michael Gomez and Ramin Toloui. It has total net assets of $7.83 billion. It also has 3.92% of yearly dividend. The most recent dividend was distributed to its investor in November 29, 2012 in the amount of $0.05. There is a 12b1 fee of 0.25% and a front-end sales load fee of 3.75%. Its annual expense ratio is 1.25% which is the same with the average ratio in the category.

Best No Load Emerging Markets Bond Mutual Funds 2012

Morningstar analysts rank this emerging markets bond mutual fund with Gold and 3-stars rating. The best 1-year total return within 12 years of positive return was achieved in 2003 with 32.01%. And since its inception, it only recorded 2 years of negative return (in 2008 with -14.34% and in 1998 with -12.10%). It has YTD return of 14.98% and 5-year annualized return of 8.97%. Based on the load adjusted returns, the fund’s performance is listed below:

• 1-year: 11.76%
• 3-year: 9.73%
• 5-year: 8.14%
• 10-year: 11.23%

The minimum initial investment is $1,000 for brokerage account. After that, you will only need $50 minimum subsequent investment. For retirement account, you may need to check with your brokerage. This PAEMX fund is available for purchase through a wide selection of 107 brokerages. The other classes are B Class (PBEMX) and C Class (PEBCX). The fund’s benchmarks are JP Morgan Emerging Markets Bond Index (EMBI) Global and Lipper Emerging Markets Debt Funds Average. As of November 2012, the effective duration of this fund is 6.38 years.

The top countries of this emerging markets bond fund as of November 2012 are Russia (19.69%), Brazil (19.43%), Mexico (16.00%), Venezuela (10.71%), Indonesia (8.22%), Turkey (5.07%) and Philippines (4.19%). The top currency diversification as of September 2012 is Brazil (1.30%).

According to the fund prospectus, the principal 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-US) investment risk, real estate risk, emerging markets risk, currency risk, issuer non-diversification risk, leveraging risk, management risk and short sale risk.

Disclosure: No Position

More fund review:

• Franklin Templeton Emerging Market Debt Opportunities Fund (FEMDX)