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Frequent Contributor

Revisiting PIMIX

I sold a time ago, but am considering repurchasing PIMIX. Thoughts?

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32 Replies
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Frequent Contributor

Re: Revisiting PIMIX

PONAX/PIMIX has done good in this selloff while some other multisector/nontraditional darlings have stunk. Note that Stockcharts doesn't recognize IISIX, JMSIX; FSRIX is used as it has longer history than FADMX [relevant if other timeframes are used].   https://stockcharts.com/h-perf/ui?s=JGIAX&compare=FSRIX,ISIAX,PONAX,SEMPX&id=p71023241359

YBB
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Frequent Contributor

Re: Revisiting PIMIX

My only concern at this time would be maintaining their dividend. What say? Just a humble opinion is all I ask.

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Participant ○○

Re: Revisiting PIMIX

I would focus on total return.  It is not a CEF that a dividend cut would translate into a depreciation in price.

Yes, I went back into PIMIX last week but still watching its performance for a full allocation to it.  I probably will DCA into it.

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Frequent Contributor

Re: Revisiting PIMIX

@Anitya , of the 5 funds in my chart, only PONAX/PIMIX had inflows; others had large outflows. M* Quote page shows fund flows below the chart.

At some point I may also get back into PONAX. My unhappiness was with the lack of transparency on Argentina situation - to the point of ignoring and not addressing it in any meaningful way. But I am back into PCI.

YBB
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Participant ○○○

Re: Revisiting PIMIX

M*'s Eric Jacobson writes a piece today on What to Make of Pimco Income's Return of Capital and concludes, "there's very little with which to be concerned."

https://www.morningstar.com/articles/976038/what-to-make-of-pimco-incomes-return-of-capital

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Participant ○○○

Re: Revisiting PIMIX

PIMIX holds Puerto Rico bonds and some in the "Argentina" type countries. If the yield with leverage holds, it will be attractive. I read an article that if unemployment drags on, mortgage delinquencies/foreclosures may be problematic starting with FHA ones (less stringent requirements). 

Added by Edit: My realtor says that the County has prohibited real estate showings indefinitely. Distressed properties may not attract buyers pre-foreclosures. This is an area where even 100 year old bungalows are priced over half million, and new construction 1 mil +

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Participant ○○

Re: Revisiting PIMIX

Thanks, Yogi. 

I did not know you had exited PIMIX - I recall a lot of your PIMIX was a holding place for PCI.  So, it makes sense you are back in PCI.  I wish to find something like the 2012 PIMIX - the current one is too big.  When I add the AUM in the managed / pooled accounts for PIMIX strategy, it is $200B or more.  I too was a bit annoyed with the lack of transparency. 

How often is the fund flows information updated?  I see IOFIX has an outflow of only -1.03B.  Something I saw on Bloomberg tells me it had outflows much more than that.

I never exited PCI completely.  Now, I also own PDI, PCN, & PCM.  All these CEFs may go down more but when I bought them I knew that is a possibility.  I also made the unfortunate buy of 2,000 shares of DMO.  

 

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Frequent Contributor

Re: Revisiting PIMIX

I appreciate the responses.

Thanks

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Frequent Contributor

Re: Revisiting PIMIX

@wayoutwest , thanks for 19(a) notice of ROC for PIMIX.

These notices are tentative during the year because the final determination of ROC can be made only after the year. So, there may or may not be ROC for 2020 - that will be determined in early 2021.

YBB
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Participant ○○

Re: Revisiting PIMIX


@wayoutwest wrote:

M*'s Eric Jacobson writes a piece today on What to Make of Pimco Income's Return of Capital and concludes, "there's very little with which to be concerned."

https://www.morningstar.com/articles/976038/what-to-make-of-pimco-incomes-return-of-capital


I would like the fund to make more ROC distributions to put more emphasis on preservation of capital, rather than chase yields.  I hope they drop the dividend down to 4% p.a.  If they do, I will put way more money into it.

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Frequent Contributor

Re: Revisiting PIMIX

PIMIX got clobbered today--hard for me to trust it much, especially since April seems to be in for some terrible coronavirus death projections--could be another downleg of the equity market and PIMIX seems to be shadowing equity performance these days.  

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Frequent Contributor

Re: Revisiting PIMIX

Amazingly PIMIX has done quite a bit better than VTI over the past 12 months per MI charts. 

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Participant ○○

Re: Revisiting PIMIX


@dtconroe wrote:

PIMIX got clobbered today--hard for me to trust it much, especially since April seems to be in for some terrible coronavirus death projections--could be another downleg of the equity market and PIMIX seems to be shadowing equity performance these days.  


Are you referring to the -0.46% today?  I will take 1/10th of SPY's decline any day.

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Follower ○○○

Re: Revisiting PIMIX

I continue to keep 25% of our retirement funds in PIMIX and remain satisfied. I bought into this fund in lieu of purchasing an annuity and it's doing exactly what I had hoped.

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Frequent Contributor

Re: Revisiting PIMIX


@Anitya wrote:

@dtconroe wrote:

PIMIX got clobbered today--hard for me to trust it much, especially since April seems to be in for some terrible coronavirus death projections--could be another downleg of the equity market and PIMIX seems to be shadowing equity performance these days.  


Are you referring to the -0.46% today?  I will take 1/10th of SPY's decline any day.


I am talking about its -.46% loss today, -8.38% for 1 month, -8.07% YTD, -3.60% loss for 1 year, and the reality that when equities started tanking the greatest when the crash started, PIMIX was one of the worst performing multisector bond oefs.  We are now facing Italy like spread of the coronavirus, death projections of a shockingly increased amount, hospitals having to turn away people away, unemployment at shockingly rates, business that are faced with scary projections of how many will survive this intact, and those that do may not get back to anything close to normal for a much longer period than some are willing to acknowledge.  The OP wanted an opinion about PIMIX, and my opinion is that it has a strong likelihood of being another falling knife in this investing period.  You have a different opinion, which is perfectly fine.  The OP can make his/her own decision about what to do, but I am sheltering in place for now--both for health reasons and investing reasons.

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Frequent Contributor

Re: Revisiting PIMIX


@YorkLion wrote:

I continue to keep 25% of our retirement funds in PIMIX and remain satisfied. I bought into this fund in lieu of purchasing an annuity and it's doing exactly what I had hoped.


PIMIX is not an annuity, and this is not a normal correction.  If PIMIX has to continue to use Return of Capital for an extended period of time, that precious distribution amount, may very likely decline, which is not annuity-like.

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Follower ○○○

Re: Revisiting PIMIX

That is why it only makes up 25% of my little "Annuity substitute". 

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Frequent Contributor

Re: Revisiting PIMIX


@YorkLion wrote:

That is why it only makes up 25% of my little "Annuity substitute". 


Good luck, but I consider terms like "Annuity substitute", like I consider other bond oefs described as "Cash substitutes".  I think this market crash, makes those kind of descriptive terms somewhat dangerous and inaccurate.  PIMIX has marketed itself based on that constant monthly dividend, but this market will truly test that decision, and the impact on that fund continuing to be used in that manner, may turn out to be inaccurate.  

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Participant ○○

Re: Revisiting PIMIX

dtconroe,

You are one of the regular posters here I read.

I think we all should strive to provide information for everybody's sake who is reading and refrain from using hyperbolic adjectives, which I agree includes "cash like."   

Yogi provided a chart to show relative performance of PIMIX and that was retorted by saying PIMIX was "clobbered."  I understand sometimes people like to use hyperbole for effect but it should be used in conjunction with facts (like I provided the 0.46%) if one is trying to be helpful. 

I think your decision to shelter in place is wise. 

A

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