PIMCO StocksPlus Funds: Investment Ad

Find article about investing in PIMCO StocksPlus Funds, part of top stock mutual funds. As non-traditional equity fund, it uses equity indexing and bond management in its strategy.

Investing Idea

Looking through various investment ads, you will find one from PIMCO about PIMCO StocksPLUS Funds. This ad doesn’t show any specific mutual funds. By visiting to the website you will find there are 2 mutual funds: PIMCO StocksPLUS Absolute Return Fund (PSPTX) and PIMCO StocksPLUS Fund (PSTKX).

Find out whether these equity mutual funds is suitable for your investment brokerage account, retirement account (IRA), or 401(k) account. Whether these top funds are suitable for your investment account or not, you should find out the details.

One of the investment ads is showed below:

Think Outside The Index. 

The PIMCO StocksPLUS Funds 

Innovative equity strategies backed by PIMCO’s time-tested investment process. Bill Gross pioneered the StocksPLUS approach in 2986, combining passive equity indexing with active bond management. Lipper recognized these strategies and PIMCO’s equity platform by naming PIMCO Large Company Equity Manager of the Year for four consecutive years. To find out more about the PIMCO StocksPLUS strategies, harness our thinking at PIMCO.com/StocksPLUS. 

Lipper Large Company Equity Manager of the Year 2010, 2011, 2012 & 2013

PIMCO | Your Global Investment Authority 

Investors should consider the investment objectives, risks, charges and expenses of the funds carefully before investing. This and other information are contained in the fund’s prospectus and summary prospectus, if available, which may be obtained by contacting your PIMCO representative. Please read them carefully before you invest or send money.
A company of Allianz.

PIMCO Fund Review

PIMCO StocksPLUS Absolute Return Fund (PSPTX)

William H. Gross, also known as Bill Gross, manages this PIMCO StocksPLUS Absolute Return fund since the inception in June 2002. This mutual fund invests in S&P 500 Index derivatives, backed by a portfolio of Fixed Income Instruments. Ranked with 5-stars rating by Morningstar, the total net assets are $1.2 billion. The fee is below average, 0.64%. The average ratio fee in the Large Blend category is 1.09%. Investors receive $0.03 of distribution in March 2013.

The YTD return is 24.06%. It has 1-year annualized return of 24.93% and 10-year annualized return of 9.73%. This is a no load fund. It has no 12b1 fee and no front-end sales load fee. The fund has been in the market for 10 years, and it always has positive return except in 2008 (-42.97%). The best 1-year total return was in 2009 with 41.30%.

The top sector diversification is 1.32 years in net cash & equivalents and 0.74 years in mortgage. For the fund’s benchmark, S&P 500, the top sectors diversification is Information Technology (17.9%) and Financials (16.3%). The current share price is $11.14. This fund has a high yield dividend of 4.25%.

PIMCO StocksPLUS Fund (PSTKX)

Investment objective of this PIMCO StocksPLUS Funds is to seek total return which exceeds that of the S&P 500. The Institutional Class (PSTKX) is incepted in May 1993 and is currently managed by Bill Gross. The fund’s dividend yield is 3.94% and is distributed quarterly. It has low fee of 0.50%, while the average expense ratio in Large Blend category is 1.09%. The total net assets are $792.7 million.

Morningstar analysts rank this PSTKX fund with 4-stars and Neutral rating. It has 15 years of positive return and 4 years of negative return. The highest return was in 2009 with 42.04%. The YTD return as of October 2013 is 26.49%. The 10-year annualized return is 7.80%. It also has 3-year beta risk of 1.10. The effective maturity is 1.29 years.

This top stock fund is also available in many other classes, such as Class A (PSPAX), Class B (PSPBX), Class C (PSPCX), etc. The top sector diversifications of the benchmark are Information Technology (17.9%), Financials (16.3%), Health Care (13.0%), Consumer Discretionary (12.5%) and Industrials (10.7%).

Investment Opinion

• Both of these mutual funds have great performance.
• Since both funds are institutional classes, they have no sales load and low expense ratio fee.
• Pick only one of these funds hence they are similar.