Pimco Dynamic Bond Fund: A Comprehensive Investment Analysis

The Pimco Dynamic Bond Fund is a versatile investment option that offers a dynamic approach to fixed income investing.

This fund is designed to adapt to changing market conditions, with the ability to shift between various sectors and credit types.

Its primary objective is to provide a high level of income and total return, with a focus on minimizing losses in declining markets.

The fund's dynamic nature allows it to actively manage its portfolio to take advantage of opportunities and mitigate risks.

The PIMCO Dynamic Bond Fund has a performance current year of 1.26%. This is a relatively strong performance, especially considering the current market conditions.

The fund's high 1 year return is 10.06%, which is impressive. However, it's worth noting that the maximum loss 1 year is -0.44%, which is a relatively low risk.

The fund's batting average 1 year is 66.67%, which means it has been successful 66.67% of the time in the past year. In contrast, the batting average 10 years is 60.00%, which indicates a slightly lower success rate over the long term.

Here are some key performance metrics for the PIMCO Dynamic Bond Fund:

The fund's information ratio 1 year is 1.21, which indicates that it has outperformed the benchmark by 1.21% over the past year. However, the information ratio 10 years is 0.13, which suggests that the fund's long-term performance has been less impressive.

The fund's tracking error 1 year is 2.26, which means it has deviated from the benchmark by 2.26% over the past year.

The PIMCO Dynamic Bond fund has a relatively high expense ratio compared to its category average. It has an expense ratio of 0.91%, which is 31% lower than its category average.

This high expense ratio can reduce your rate of return, and excessive fees are difficult to overcome. However, it's worth noting that active management often comes with higher expense ratios than passive index management.

Here's a breakdown of the fund's fees and expenses:

The fund's portfolio turnover rate is also relatively high, at 528%, which can translate to higher expenses and lower after-tax returns.

Operating fees can be a significant drag on your investment returns. The expense ratio measures how much of a fund's assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services.

PIMCO Dynamic Bond Instl has an expense ratio of 0.91%, which is 31% lower than its category average, making the fund expense ratio grade a B.

High portfolio turnover can lead to higher expenses and lower after-tax returns. PIMCO Dynamic Bond Instl has a portfolio turnover rate of 528%, indicating that it holds its assets for a very short period of time.

The Nontraditional Bond category has an average portfolio turnover of 356%. This means that PIMCO Dynamic Bond Instl has a significantly higher turnover rate compared to its peers.

A high expense ratio can reduce your rate of return, and excessive fees are difficult to overcome.

Sales fees can be a significant burden on your investment returns. PFIUX fees, for example, are a percentage of the assets under management (AUM), but the exact percentage is not specified for front load or deferred load options.

The front load option has no percentage listed, while the deferred load option has a fee ranging from 1.00% to 1.50%. This means that if you invest in a deferred load option, you can expect to pay at least 1.00% of your AUM in fees.

If you're comparing PFIUX to other investment options, you can see how their fees stack up in the category. Unfortunately, the ranking in category is not provided for front load or deferred load options.

Here's a brief summary of the sales fees for PFIUX:

PIMCO Dynamic Bond Instl has a primary benchmark of the Bloomberg Global Aggregate TR Hdg USD index, with a 100% weighting.

The fund has a diverse portfolio with 1695 securities, and the top 10 holdings make up 92.3% of its assets.

PIMCO Dynamic Bond Instl is a part of the Fixed Income global asset class and the Taxable Bond fund group.

The fund has 30.7% of its portfolio invested in foreign issues, while 0.7% is allocated to domestic stock.

There is 0.1% allocated to foreign stock and 0.7% to preferred stocks.

The bond allocation as a percentage of total assets is 87.3%, with 56.7% being domestic bond, 30.6% foreign bond, and 0.3% convertible bond.

PIMCO Dynamic Bond Instl has 10.9% of the portfolio in cash.

The fund has $2 billion in total assets, which is above the $494 million average for the Nontraditional Bond category.

PIMCO Dynamic Bond Instl has a trailing dividend yield of 5.51%, which is above the 5.39% category average.

The PIMCO Dynamic Bond Fund has a strong track record, with a year-to-date return of 6.9%. This is 0.8 percentage points better than its category, earning it a grade of B.

The fund's performance over the past year has been solid, with a return of 9.1% and a grade of C. Over the past five years, it has returned 2.7% per year, which is also a grade of C.

The fund's risk measures are also worth noting. Its standard deviation is 4.1%, and its total risk index is 0.27, which is considered low. The fund's beta is 0.46, and its R-squared is 82%, indicating a moderate level of correlation with the market.

Here are the fund's key risk measures at a glance:

The fund's portfolio is actively managed by three experienced managers, with the longest tenure being 10.2 years. The average tenure is 7.7 years, indicating a stable and experienced team.

Trailing Return Ranking is a crucial aspect of investment analysis. It helps investors understand how their investment has performed over time relative to its peers.

The PIMCO Dynamic Bond Instl fund has a trailing return of 2.8% over the past 10 years, which ranks it 43.97% within its category. This means the fund has consistently outperformed its category over the long term.

In the past year, the fund has returned 9.1%, which translates to a grade of C. This is 0.5% better than the category average. The fund's 3-year and 5-year returns are 2.3% and 2.7%, respectively, also earning a grade of C.

Here's a summary of the fund's trailing returns and grades over different periods:

Concentration analysis is a crucial aspect of investment analysis. It helps us understand how concentrated a fund's portfolio is.

Let's take a look at the concentration of PFIUX's portfolio. With 1605 holdings, PFIUX has a relatively large number of stocks compared to its category peers, who have an average of 4 holdings.

The net assets of PFIUX's top 10 holdings account for 8.13% of its total net assets, which is a relatively low concentration compared to its category peers.

Here's a breakdown of the concentration of PFIUX's portfolio:

A fund with a high concentration of its portfolio in a few holdings can be riskier than one with a more diversified portfolio. However, it's also worth noting that a concentrated portfolio can sometimes be a sign of a skilled investor who has made deliberate choices about where to allocate the fund's assets.

As we delve into the world of bond investing, let's take a closer look at the Bond Sector Breakdown. Government bonds make up a significant 36.63% of the sector, with a return range of 0.00% to 99.43%.

This substantial weighting in government bonds suggests a relatively stable investment option. Cash & Equivalents, on the other hand, account for 14.02% of the sector, with a return range of 0.00% to 94.89%.

Securitized bonds have a slightly lower weighting of 11.92%, but still offer a broad return range of 0.00% to 99.65%. Corporate bonds are also a notable 10.60% of the sector, with a return range of 0.00% to 96.66%.

Derivative bonds, while only 0.90% of the sector, have a return range of -75.22% to 147.15%, highlighting their potential for significant volatility. Municipal bonds, the smallest sector at 0.30%, have a relatively limited return range of 0.00% to 54.26%.

Here's a summary of the Bond Sector Breakdown:

In terms of PFIUX % Rank, the sectors vary significantly, with Government bonds ranking 9.52% and Corporate bonds ranking 79.52%.

When analyzing bonds, it's essential to consider the geographic breakdown of investments.

In the US, bonds have shown a significant return, with a weighting of 119.27%. This means that a substantial portion of bond investments are located in the US.

The return on US bonds has been impressive, ranging from 0.00% to 199.60%. This variability in returns is crucial for investors to consider when making decisions.

Non-US bonds, on the other hand, have a much lower weighting of 16.81%. This indicates that a smaller portion of bond investments are located outside of the US.

The returns on non-US bonds are also lower, ranging from 0.00% to 76.68%. This suggests that investors may be taking on more risk by investing in bonds outside of their home country.

Here's a summary of the bond geographic breakdown:

The PFIUX % Rank for US bonds is 5.31%, indicating that they have a relatively low ranking compared to other investments. This may be a consideration for investors looking to diversify their portfolios.

Net Income Ratio is a crucial metric in investment analysis, and PFIUX has a Net Income Ratio of 3.25%. This means that for every dollar invested, PFIUX generates 3.25 cents in profit.

Category Low for Net Income Ratio is -1.55%, indicating that some investments have a negative return, meaning they actually lose value over time. Category High is a more desirable 11.51%, showing that some investments can generate substantial profits.

To put this into perspective, PFIUX's Net Income Ratio ranks 38.25% in its category, suggesting that it's performing relatively well compared to its peers.

The Pimco Dynamic Bond Fund has a dividend yield of 5.24%, which is a significant aspect of its investment strategy.

This dividend yield is relatively high compared to the category average, indicating that the fund is generating a substantial portion of its returns through dividend payments.

Here's a comparison of the Pimco Dynamic Bond Fund's dividend yield with its category peers:

The fund's dividend yield ranks 56.81% among its peers, suggesting that it is above average in this regard.

The Pimco Dynamic Bond Fund has had a strong performance over the years, with a current year performance of 1.26% and a performance since inception of 63.06%.

One of the key metrics to look at is the fund's risk-adjusted return, which is a measure of how well the fund has performed relative to its level of risk. The fund's risk-adjusted return since inception is -0.69%, indicating that it has not kept pace with inflation over the long term.

In terms of fees, the Pimco Dynamic Bond Fund has a front-end load of 0% and a deferred load of 1.00% to 1.50% of assets under management (AUM). These fees are relatively low compared to other funds in the same category.

Here's a breakdown of the fund's performance metrics:

The fund's trailing performance over the past year has been strong, with a return of 7.17% and a trailing return since inception of 3.04%. However, it's worth noting that the fund's risk-adjusted return over the past year has been negative, indicating that it has not kept pace with inflation.