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Re: PMZIX

 


@BigTom wrote:

Option 4: Sell both because they are black boxes and PIMCO is expensive...


60 basis points is not expensive for a managed fund if managed fund is what one is seeking.

VICSX is an index fund and it is in only one sector so its performance should be more predictable and takes away manager risk.  PIGIX mandate is a bit broader.

I own PIGIX, for the first time since March 26.  I never gave VG any thought for fixed income investing, but most of their funds, including VICSX, did admirably well in 2020.  I am not putting any new money into PIMCO since my purchases at the end of March and on April 8.  All my new fixed income investing, mostly moving out of cash, has been going into VG.  I own PIGIX, PMZIX, and PIMIX from PIMCO - all purchased at the end of March after selling all fixed income OEFs earlier in March.   

Chang,

I presume you are talking about tax-deferred accounts? 

 

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Re: PMZIX


@Anitya wrote:

@BigTom wrote:

Option 4: Sell both because they are black boxes and PIMCO is expensive...


60 basis points is not expensive for a managed fund if managed fund is what one is seeking.

VICSX is an index fund and it is in only one sector so its performance should be more predictable and takes away manager risk.  PIGIX mandate is a bit broader.

I own PIGIX, for the first time since March 26.  I never gave VG any thought for fixed income investing, but most of their funds, including VICSX, did admirably well in 2020.  I am not putting any new money into PIMCO since my purchases at the end of March and on April 8.  All my new fixed income investing, mostly moving out of cash, has been going into VG.  I own PIGIX, PMZIX, and PIMIX from PIMCO - all purchased at the end of March after selling all fixed income OEFs earlier in March.   

Chang,

I presume you are talking about tax-deferred accounts? 


Thanks for sharing your holdings. My case is somewhat similar to yours -- I own PIGIX and PZMIX, but my third PIMCO fund is their muni fund PHMIX. Unfortunately, PIGIX and PZMIX are in a taxable account. I could actually sell them and re-buy them in an IRA, but that would trigger CGs as well as require a fair amount of jiggering. I'm just going to leave them in taxable and pay the taxes.

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Re: PMZIX

Haven't you accumulated tax losses to use in conjunction with realizing capital gains? One of the advantages of a taxable account is tax loss harvesting to neutralize the effects of selling with capital gains.

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Re: PMZIX


@chang wrote:

@BigTom wrote:

Option 4: Sell both because they are black boxes and PIMCO is expensive...

Add VWETX to the mix (link) and it's tempting to increase duration. Here's the rolling return view: link. That extra return obviously comes with a lot of volatility.


My POV in extending duration at this time is “performance chasing”. This should have been done prior to the recent Fed cuts (actually, this should have been done years ago). We are near zero on fed interest rates. Could they go negative? Sure they can but we have come down a long way in rates. All the easy money has been made.

I realize you are talking corporates and not treasuries but corporate rates will follow treasury yields. The spreads between the two should remain constant unless their is a financial accident which impacts investment grade bonds. In addition to rates, you have to look at corporate credit. If there are downgrades in corporate credit, long term corporate credit will be impacted the hardest.

So now you have two issues which could impact LT IG corporates...

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Re: PMZIX


@jmrdnc wrote:

Haven't you accumulated tax losses to use in conjunction with realizing capital gains? One of the advantages of a taxable account is tax loss harvesting to neutralize the effects of selling with capital gains.


The CGs aren’t that big and yes, I can offset with booked losses. The issues are more admin. Fidelity seems to have ceased to support PIGIX and PMZIX—test trades fail at any level. I could buy them in a VG IRA but I don’t have enough cash there to replace the amounts I own in taxable. I could move cash from Fido IRA to VG IRA ... maybe I will do that again (already done twice) ... but right now I’m just not inclined to go through all the motions.

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Re: PMZIX


@chang wrote:


Thanks for sharing your holdings. My case is somewhat similar to yours -- I own PIGIX and PZMIX, but my third PIMCO fund is their muni fund PHMIX. Unfortunately, PIGIX and PZMIX are in a taxable account. I could actually sell them and re-buy them in an IRA, but that would trigger CGs as well as require a fair amount of jiggering. I'm just going to leave them in taxable and pay the taxes.


I did not do a better job either.  My fixed income OEF used to be in tax deferred; now all the PIMCO OEFs are in a taxable account.  I am likely to sell PIMIX in the next few months (may be 2021?) and not even buy it in the tax deferred.   I will have to just pay tax on the capital gains.  I am not planning to sell PIGIX and PMZIX.  I am less hot on PIGIX as a long term holding.  Do not have similar reservations about PMZIX.   

The last time I tried to move money to VG IRA, they wanted some medallion signatures (witnesses) and all sorts of headaches.  I just gave up and do not move money to VG IRA.  I wish they were as easy as Fidelity and Schwab.  To move to TRP, you will have to submit a paper transfer request, but TRP makes the receiving and sending back the paper form easy.   Has VG changed asset transfers to VG IRA?

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Re: PMZIX

@Anitya “The last time I tried to move money to VG IRA, they wanted some medallion signatures (witnesses) and all sorts of headaches.  I just gave up and do not move money to VG IRA.  I wish they were as easy as Fidelity and Schwab.  To move to TRP, you will have to submit a paper transfer request, but TRP makes the receiving and sending back the paper form easy.   Has VG changed asset transfers to VG IRA?”

I had an easier time. I followed the on-line TOA questionnaire, printed out the form, signed it, and e-mailed it to VG. A couple days later the money left my Fido IRA, and a couple days after that it showed up in my VG IRA.

I did this twice, both times with cash only; but I presume it would go the same with other assets.

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Re: PMZIX

Thanks, Chang.  

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Re: PMZIX

It’s nice to see PIGIX and PMZIX move in opposite directions (like today). It suggests that, as a pair, they can reduce volatility while bringing in yield.

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Re: PMZIX

Thanks Chang. 

I will have to study up on Pimco funds. My simple Vanguard and other conservative bond funds are doing, but it looks safe to venture for higher yield. 

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Re: PMZIX

@FatKat “It looks safe” sounds like famous last words. Who knows if any PIMCO funds are safe. But I’m holding PIGIX and PMZIX and reinvesting dividends. But I haven’t added to these in a long time.

https://youtu.be/mqrpPaNm8yw

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Re: PMZIX


@FD1001 wrote: (6/22/2020)

M* ER at this (link) still says 1.37%.

PMZIX did pretty well YTD and I used to own it for several weeks but the black swan is gone now and may not return

 Total ReturnTotal ReturnTotal ReturnReturnTotal ReturnTotal ReturnSDMorningstarMorningstar
 1 Week1 Month3 MonthYTD12 Month3 Year3 YearReturnRisk
MNCPX(ER-0.5%)0.53.397.921.383.812.793.24AverageLow
JSIAX(ER=0.9%)0.512.056.450.953.012.583.63Above AverageBelow Average
PMZIX-0.031.726.510.833.083.163.36HighLow

 

The other 2 funds are doing better for 1-4 weeks.  You can also see that PMZIX had a better performance in the last 3 years.  It's not a surprise that PMZIX is invested in MBS/Securitized.


The above was about 5 weeks ago and MNCPX continues to lead and making 3 times more PMZIX for one month. MNCPX has better performance than PMZIX for 1-3-12 months + MNCPX ER=0.5% while PMZIX ER=1.37%. 

  %%% Total%%Standard
 $ CurrentTotal ReturnTotal ReturnReturnTotal ReturnTotal ReturnDeviation
TickerPrice1 Month3 MonthYTD12 Month3 Year3 Year
MNCPX9.462.276.213.575.593.383.37
JSIAX9.931.514.452.583.82.823.7
PMZIX10.840.743.61.933.733.353.42
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Re: PMZIX

PMZIX has an ER of 1.37% Higher than PIMIX.


@FatKat wrote:

Thanks Chang. 

I will have to study up on Pimco funds. My simple Vanguard and other conservative bond funds are doing, but it looks safe to venture for higher yield. 


 

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Re: PMZIX


@Gary1952 wrote:

PMZIX has an ER of 1.37% Higher than PIMIX.


@FatKat wrote:

Thanks Chang. 

I will have to study up on Pimco funds. My simple Vanguard and other conservative bond funds are doing, but it looks safe to venture for higher yield. 


 


Wow! It looks like Pimco makes put very well no matter how that fund performs? I am looking to buy back into PIGIX and maybe PIMIX? I have to due diligence on choosing between these funds.

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