PIMCO Unconstrained Bond Fund
The PIMCO Unconstrained Bond fund has gone through major changes lately, with large-scale management shifts at both the fund and firm level. For a fund with a truly “go-anywhere” style, investors should watch new management closely.
As of May 22, 2017, the fund has assets totaling almost $3.59 billion invested in 1,327.00 different holdings. Its portfolio consists primarily of fixed-income investments, ranging widely in type and credit quality. The fund can use a very wide mix of investment options, including currency, credit and interest-rate strategies.
In January 2015, Marc Seidner took over as the fund’s lead manager alongside Dan Ivascyn, the firm’s chief investment officer, and Mohsen Fahmi. Seidner is the fund’s third manager in a year and a half, and PIMCO continues to reshuffle following the departure of former investment head Bill Gross in the fall of 2014. Morningstar notes current managers have solid pedigrees, but they have limited experience running a truly unconstrained bond fund. Also, near-term returns have not been much better than those of the broad bond market. The fund has returned 7.50 percent over the past year and 2.19 percent over the past three years.
Morningstar says there is still uncertainty about the fund’s future, given the changes at PIMCO’s investment committee. More time is needed to see if the new managers will gain traction. The fund has returned 2.14 percent over the past five years and ((UNHANDLED FORMAT TYPE: percents, NoneType for None)) over the past decade.
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The fund takes a flexible approach to capturing global opportunities and managing risk. It strives to actively mitigate downside risk, provide attractive risk-adjusted returns and preserve the diversification benefits of a traditional fixed-income portfolio.
Role in Portfolio
Morningstar says this fund should play a “supporting” role in a portfolio.
Marc Seidner, Dan Ivascyn and Mohsen Fahmi are now leading the fund.
The fund has returned 7.50 percent over the past year, 2.19 percent over the past three years, 2.14 percent over the past five years and ((UNHANDLED FORMAT TYPE: percents, NoneType for None)) over the past decade.
PIMCO Unconstrained Bond Fund has an expense ratio of 1.30 percent.
Net Expense Ratio