PIMCO Multi Sector Bond Fund Investment Options and Benefits

The PIMCO Multi Sector Bond Fund is a great option for investors looking to diversify their portfolios with a mix of high-quality bonds from around the world. This fund aims to provide a regular income stream by investing in a range of sectors, including investment-grade corporate bonds, government securities, and mortgage-backed securities.

By investing in this fund, you'll have access to a diversified portfolio of over 7,000 individual bonds from more than 40 countries. This diversification helps to reduce risk and increase potential returns.

PIMCO's experienced team of bond experts actively manages the fund to ensure it remains focused on its investment objectives. They use a rigorous investment process to select the best bonds to include in the portfolio.

Investors in the PIMCO Multi Sector Bond Fund can expect a competitive yield, with a historical average return of around 4-5% per annum. This is a relatively stable source of income, making it a great option for those seeking regular returns with lower volatility.

The PIMCO Income I-3 fund has an expense ratio of 0.98%, which is 4% lower than its category average, making it a C-grade expense ratio.

High portfolio turnover can result in higher expenses and lower after-tax returns, and PIMCO Income I-3 has a portfolio turnover rate of 588%, significantly higher than the average of 147% for the Multisector Bond category.

PIMCO Income I-3's high expense ratio and turnover rate may impact its returns, but it did have a strong return of 1.2% in January 2025, earning it an A-grade within its category.

Assets Under Management can have a significant impact on your investment returns. The fund has $2 billion in total assets, which is above the $1 billion average for the Multisector Bond category.

Higher assets under management can sometimes lead to lower average expense ratios, but it's not always the case. For some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

Having $2 billion in assets is a notable advantage for PIMCO Income I-3, as it allows for more diversification and potentially better investment opportunities.

PIMCO Income I-3 has a high expense ratio of 0.98%, which is 4% lower than its category average. This makes the fund's expense ratio grade a C.

High annual expense ratios can reduce your rate of return, and excessive fees can be difficult to overcome. Active management normally comes with higher expense ratios than passive index management.

PIMCO Income I-3 has a portfolio turnover rate of 588%, indicating it holds its assets for a very short time. This high turnover rate can translate to higher expenses and lower after-tax returns.

In comparison, the average portfolio turnover for the Multisector Bond category is 147%. This suggests PIMCO Income I-3 is more actively managed than its peers.

In January 2025, PIMCO Income I-3 returned 1.2%, earning it a grade of A in the Multisector Bond category. This return was higher than the category average of 0.9%.

To start investing, it's essential to set clear financial goals. Determine what you want to achieve, whether it's saving for a down payment on a house, retirement, or a big purchase.

Research and understand the different types of investments available, such as stocks, bonds, and mutual funds. This knowledge will help you make informed decisions about where to put your money.

Consider consulting with a financial advisor or doing your own research to learn about risk tolerance and asset allocation. This will help you create a diversified portfolio that suits your needs.

You can start investing with a small amount of money, even as little as $100, and gradually increase your investment as you become more comfortable with the process.

PIMCO Income I-3 is an actively managed fund that launched in 2018, seeking to maximize current income with long-term capital appreciation as a secondary objective.

The fund invests at least 65% of its total assets in a multi-sector portfolio of Fixed Income Instruments of varying maturities.

It may use derivatives like options, futures contracts, or swap agreements to represent these instruments.

PIMCO Income I-3 may invest up to 50% of its total assets in high yield securities rated below investment grade by Moody's, S&P, or Fitch, or if unrated, as determined by PIMCO.