PIMCO Total Return A (PTTAX) is an investment-grade intermediate bond fund managed by PIMCO, based in Newport Beach, California. The fund has been available since May 1987 and currently manages around $4.05 billion in assets.
This fund invests in bonds that typically mature between three and 15 years. Such bonds offer moderate risk and modest yields compared to shorter-term bonds. PTTAX focuses on high-quality bonds, with about 72% rated ‘AA’ or higher and an overall average rating of AA, which suggests a strong credit profile.
Performance-wise, PTTAX has delivered mixed results. Its five-year annualized return is slightly negative at -0.22%, placing it in the middle third of its peer group.
Over three years, it has returned 2.2% annually, also ranking in the middle third. However, the fund shows lower volatility than its peers, with a standard deviation around 7.5% over three years compared to the category average of 13.2%. This means it experiences less price fluctuation than many similar funds.
The fund’s beta is 1, indicating it moves in line with the broader bond market, and it has a positive alpha of 0.56, reflecting modest outperformance on a risk-adjusted basis.
On the cost front, PTTAX charges an expense ratio of 0.80%, which is slightly below the category average of 0.91%. However, it is a load fund, meaning investors pay a sales charge, which can reduce overall returns. The minimum initial investment is $1,000, with subsequent investments requiring at least $50.
Despite these factors, PTTAX currently holds a Zacks Mutual Fund Rank of 4 (Sell), indicating it is not a recommended choice at this time. This ranking considers factors like size, cost, and recent performance, suggesting investors might find better options within the investment-grade intermediate bond fund category.
In summary, while PTTAX offers a stable portfolio with lower volatility and reasonable costs, its recent performance and overall rating make it a less attractive option for investors seeking strong returns in this fund category right now.
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