PIMCO has long been known as a fixed-income powerhouse with an abundance of investment management talent and enviable track record. They are also one of the most successful purveyors of actively managed exchange-traded funds focused primarily on the bond market to-date.
That dynamic changed recently with the launch of three new multi-factor equity ETFs that successfully complement the existing PIMCO fund lineup. These new funds are backed by a stringent research and stock selection criteria created by Rob Arnott of Research Affiliates, who has a well-respected background in building smart beta portfolios.
I write a ton of words every week on the topic of building income portfolios using exchange-traded funds. Some articles are purely an exercise in research and education, while others are directed towards real-world concepts that we are implementing for clients of our firm.
It’s through this process that I often dive into a new fund or sector and compare it to an established group of peers. It’s also refreshing to see funds that I have reviewed favorably in the past live up to (or exceed) their lofty expectations. Read more
Virtually every corner of the closed-end fund (CEF) marketplace has been on an unrelenting grind higher over the last 18-months. Very few pullbacks have meant that you either had to be in these vehicles to capture the capital appreciation from the get-go or grind your teeth and jump in at some random point along the way. Read more
I’ve always been a big fan of actively managed bond funds as a way for investors to access risk managed or alpha-generating strategies. Unlike active stock pickers, the best managers from the likes of PIMCO, DoubleLine, Guggenheim, and Loomis Sayles have proven track records of adding value for their investors versus a passive benchmark. Fixed-income is still one of those asset classes where sector positioning, duration targeting, and credit selection can make a huge impact on net returns.
Look back through my blog and you will see numerous references to some of my favorite funds like the DoubleLine Total Return Bond Fund (DBLTX) or the PIMCO Income Fund (PONDX). We have owned both for our clients and in our own accounts for years. Read more
This month’s video takes an in-depth look at the closed-end fund marketplace. Charts include both diversified CEF indexes and single fund names. Overall the trend remains solid, however we are starting to see stretched premiums and tight discounts across the entire spectrum. Risk is high and caution should be warranted at this stage of the cycle. Video recorded after the market close on February 8, 2017.