3 PIMCO Mutual Funds That Are Must-Haves for Any Portfolio

Founded in 1971, Pacific Investment Management Company, LLC or PIMCO is an internationally acclaimed investment management firm. The company provides a wide range of financial services across the globe with the help of more than 2,800 employees. PIMCO had around $2.2 trillion assets under management as of Jun 30, 2021.

PIMCO offers a broad lineup of investment solutions for the entire gamut of equities, bonds, currencies, real estate, alternative investments and risk-management services. Though the firm manages an array of mutual funds, it is best known for those based on fixed income.

Below we share with you three top-ranked PIMCO mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of funds.

PIMCO Real Return Fund Class A PRTNX maximum real return that is consistent with preservation of capital as well as prudent investment management. The fund normally invests the lion’s share of its assets in inflation-indexed bonds of different maturities issued by the U.S. and non-U.S. governments, their agencies or instrumentalities, as well as corporations. It carries a Zacks Mutual Fund Rank #1 and has returned 6.3% in three years.

As of the end of March 2021, PRTNX held 997 issues, with 20.8% of its assets invested in 5 Year Treasury Note Future June 21.

PIMCO Low Duration Income Fund Class A PFIAX fund aims to maximize current income as its primary objective. The fund also aims for appreciation of capital in the long run. PFIAX invests a minimum of 65% of its assets in multi-sector portfolio of fixed-income securities. PFIAX carries a Zacks Mutual Fund Rank #1 and has three-year annualized returns of 4.1%.

Eve Lagrellette Tournier is one of the fund managers of PFIAX since 2016.

PIMCO RAE US Small Fund Class A PMJAX seeks long-term capital growth. The fund invests the majority of its assets in securities of small-capitalization companies. It particularly focuses on small-cap companies in the United States. PMJAX carries a Zacks Mutual Fund Rank #2 and has three-year annualized returns of 15%.

PMJAX has an expense ratio of 0.94% compared with the category average of 1.16%.

To view the Zacks Rank and the past performance of all PIMCO mutual funds, investors can click here to see the complete list of funds.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.