PIMCO Short-Term Fund Overview and Analysis

The PIMCO Short-Term Fund is a popular investment option for those seeking low-risk returns. It's managed by PIMCO, a well-established asset management company.

PIMCO Short-Term Fund aims to provide liquidity and preserve capital by investing in a diversified portfolio of short-term debt securities. These securities typically have a maturity of one year or less.

The fund's primary objective is to maintain a stable net asset value (NAV) of $1.00 per share. This means investors can expect a relatively stable return without exposure to significant market fluctuations.

Investors can expect a return of around 1-2% per annum, depending on market conditions. This is a relatively low-risk investment, making it suitable for those with conservative investment goals.

The PIMCO Short-Term Fund has a rich history, having been established on January 3, 1994.

This fund is part of the PIMCOFUNDS family, which suggests a strong focus on investment expertise and a long track record of success.

The fund's shares are denominated in USD, making it accessible to investors globally.

Jerome Schneider is the manager behind the PIMCO Short-Term Fund, bringing their expertise to the table.

Here are some key details about the fund:

The PIMCO Short Term Fund is designed to provide liquidity and preserve capital by investing in a diversified portfolio of high-quality, short-term debt securities.

It has a low average maturity of 60 days, which helps to minimize interest rate risk and ensure that the fund can meet its liquidity needs.

The fund's average credit quality is AA, which is a testament to the quality of its underlying holdings.

The PIMCO Short Term Fund has historically provided competitive returns, with a 1-year return of 1.2% and a 3-year return of 1.5%.

It has a low expense ratio of 0.37%, which is lower than the average expense ratio of its peers.

The fund's management team has a proven track record of success, with over 20 years of experience in managing short-term bond portfolios.

The Pimco Short Term Fund (PTSHX) has a significant concentration of assets, with a net asset value of $10.7 billion. This is a substantial amount of money, dwarfing the category lows of $26.6 thousand and highs of $28.6 billion.

The fund holds a large number of securities, with 1,093 holdings in its portfolio. This is a relatively high number, especially when compared to the category lows of just 2 holdings. The fund's number of holdings is actually the 8th best in its category, with a ranking of 8.02%.

The Pimco Short Term Fund has a significant portion of its assets invested in its top 10 holdings, with $4.09 billion allocated to these positions. This is a substantial amount, representing 5.19% of the fund's total net assets.

The weighting of the fund's top 10 holdings is also noteworthy, with a combined weighting of 41.84% of the total portfolio. This is a significant concentration of assets, and it's worth noting that the category highs are skewed by a few large holdings, with a weighting of 156.6% in the top 10.

Here's a summary of the fund's concentration analysis:

Short-term investments like PIMCO's fund can be volatile, meaning their value will fluctuate.

Short-term investments don't offer the same level of federal guarantees as traditional cash investments, which means they may lose value.

PIMCO's fund may invest a portion of its assets in junk bonds, which can be a riskier investment option.

Distributions are a crucial aspect of investing, and understanding them can make a big difference in your returns. A 0.9% YTD Total Return is a decent start, but it's essential to look at the bigger picture.

The 3 Yr Annualized Total Return of 4.4% is more impressive, indicating a consistent growth over the past three years. This is a significant improvement from the 5 Yr Annualized Total Return of 3.0%, showing that the investment has gained momentum.

Capital gains are distributed annually, which can provide a regular influx of cash. However, it's essential to note that the Net Income Ratio of 0.78% is relatively low, meaning that most of the returns come from capital gains rather than dividends.

Dividend investing can be a great way to earn passive income, with a Dividend Yield of 5.0% offering a decent return. Dividends are distributed monthly, providing a regular stream of income.

Here are the key distribution facts at a glance:

Short-term investments are a crucial part of a portfolio, offering a way to generate returns in a relatively short period of time.

Their value will fluctuate, making them more volatile than traditional cash investments.

Short-term strategies are not federally guaranteed, which means they carry a risk of losing value.

Investors should be aware that some short-term investments may also invest in junk bonds, which can be a high-risk, high-reward option.

It's essential to carefully consider the potential risks and rewards before investing in short-term strategies.

Let's take a closer look at how the Pimco Short Term Fund has performed over the years. In terms of return, the fund has seen some ups and downs.

The fund's return has ranged from a low of -3.3% in 2022 to a high of 1.4% in 2023. This variability is reflected in its ranking within its category, with a high of 43.40% in 2023 and a low of 7.85% in 2020.

Here's a comparison of the fund's return with the category's return low and high for each year:

Looking at the Total Return Ranking, the fund's return has also been quite variable, ranging from a low of 0.0% in 2022 to a high of 6.9% in 2024. This is reflected in its ranking within its category, with a high of 8.49% in 2024 and a low of 7.85% in 2020 and 2020.

The cost of investing in a PIMCO Short Term Fund can be a significant consideration. The return of elevated bond yields comes at an opportune time to consider shifting out of cash, which can be sitting idle and not earning much interest.

Cash, in particular, can be a costly investment option, with a staggering $6 trillion question mark hanging over it. This is because cash, or more specifically, holding large amounts of cash, can mean missing out on potential returns that could be earned through other investments.

In the long run, the fees associated with a PIMCO Short Term Fund can be a worthwhile trade-off for the potential returns and stability it offers.

Operating fees can be a significant expense, especially for those with low credit scores. Some credit cards charge as much as 25% of the balance as an annual fee.

Annual fees can range from $50 to $1,000 or more, depending on the card and the benefits it offers.

If you're not careful, you might end up paying more in fees than you save on interest. For example, if you have a credit card with a 25% annual fee and a balance of $2,000, you'll pay $500 in fees alone.

Some credit cards also charge late fees, which can be as high as $38. This can add up quickly if you're not paying your bill on time.

The good news is that some credit cards offer waived fees for certain situations, such as if you're a student or a military member.

Sales fees can be a significant burden on your investments. The PTSHX fund has a front load fee of 1.50% for Category Return Low and 5.75% for Category Return High.

Deferred load fees are also a thing, and for PTSHX, they range from 0.25% for Category Return Low to 1.00% for Category Return High.

Here's a breakdown of the sales fees:

Investors can earn premium returns over cash with active management in short-term bonds, but with a modest increase in risk.

Active management can help investors earn more than cash by investing in short-term bonds that offer higher yields.

By investing in short-term bonds, investors can maintain diversification in their portfolios, which is especially important during economic downturns.

Economic downturns can be a challenge for investors, but short-term bonds can provide resilience by offering a relatively stable source of returns.

Investors can benefit from a modest increase in risk by investing in short-term bonds, as they often offer higher returns than cash deposits.

The Pimco Short-Term fund is a top selection among ultrashort bond peers due to its strong collaboration and time-tested process.

This fund's mandate is the broadest of Pimco's suite of ultrashort offerings, giving it a wide range of investment opportunities.