PIMCO High Yield Fund (PHDAX)

PIMCO High Yield Fund (PHDAX) is another popular taxable bond mutual fund. It provides high yield interest income for investors by investing in lower quality bonds.

PIMCO High Yield Fund (PHDAX)

The PIMCO High Yield Fund objective is to seek maximum total return, consistent with capital preservation and prudent investment management. The mutual fund utilizes its assets to purchase a diversified portfolio of high yield securities (“junk bonds”) rated below investment grade. It may use forwards or derivatives such as options, futures contracts or swap agreements. The fund may invest, without limitation, in derivative instruments.

Fund Profile

PIMCO High Yield Fund

• Fund Inception Date: January 12, 1997
• Ticker Symbol: PHDAX (Class A)
• CUSIP: 693390379
• Beta (3yr): -0.22
• Rank in category (YTD): 75%
• Category: High Yield Bond
• Distribution: 5.98%
• Capital Gains: 0%
• Expense Ratio: 0.90%
• Net Assets: $ 19.2 billion
• Number of Years Up: 12 years
• Number of Years Down: 3 years
• Average Duration: 3.43 years
• Average Maturity: 4.58 years
• Annual Turnover Rate: 50%

Updated on 4/6/2013

Andrew Jessop has been managed this fund since January 9, 2010. The fund has a total of $19.2 billion of total net assets. It has an expense ratio of 0.90% per year. This fee is lower than the category average ratio in High Yield Bond, 1.13%. Investors receive 5.98% dividend yield. The most recent dividend distribution was given in January 2013 in the amount of $0.05. Morningstar ranks it with 2-stars rating and Bronze rating. The 12b1 fee of this fund is 0.25% and the front end sales load is 3.75%.

Top Performing High Yield Bond Mutual Funds January 2013

This high yield bond mutual fund has a YTD of 1.42%. It has 12 years of positive return and 3 years of negative return. The best 1-year total return was occurred in 2009 with 43.56%. The worst 1 year total return was occurred in 2008 with -23.98%. Based on the load adjusted returns, the performance of the fund is as below:

• 1-year: 7.43%
• 3-year: 8.73%
• 5-year: 7.41%
• 10-year: 8.18%

The minimum initial investment for brokerage account is $1,000 with $50 subsequent investment. There is no IRA account available. There are 126 brokerages that provide the sale of this fund such as Edward Jones, Vanguard, Scottrade Load, Merrill Lynch, Fidelity Retail Fundsnetwork, Trade Station Securities, etc. The other classes are Admin Class (PHYAX), Class B (PHDBX), Class C (PHDCX), Class D (PHYDX), Institutional Class (PHIYX), Class P (PHLPX) and Class R (PHYRX).

Best PIMCO Mutual Funds for 2013

As of January 2013, the top industry sector exposure is Integrated Oil (5.30%), Independent E&P (5.30%), Electric Utility (4.31%) and Non-Captive Consumer Finance (3.95%). The top industry diversification is Healthcare (9%), Wireless (6%) and Media Cable (6%).

According to the fund prospectus, the principal investment risks are Interest Rate Risk, Credit Risk, High Yield Risk, Market Risk, Issuer Risk, Liquidity Risk, Derivative Risk, Equity Risk, Mortgage-Related and Other Asset-Backed Risk, Foreign (Non-U.S) Investment Risk, Emerging Markets Risks, Currency Risks, Leveraging Risks, etc.

Disclosure: No Position