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  • bee September 2012
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PIMCO StocksPLUS Long Duration Instl PSLDX

andrei
edited September 2012 in Fund Discussions
Do you have any opinion about PIMCO StocksPLUS Long Duration Instl PSLDX ?

This is the PIMCO fund which invests in stocks via their futures and adds to it long term bonds. Potentially, this is an explosive and dangerous mixture, but apparently during the last few years these dangers equilibrated each other, perhaps because of the fall of the interest rates. As a results, the rise of the NAV of this fund was amazingly steady since the market bottomed in 2009, see

http://quote.morningstar.com/fund/chart.aspx?t=PSLDX&region=USA&culture=en-us

It is up 42% during the last year. Only institutional shares of this fund are available, with the minimum of $1M, but one can get it at Scottrade for $100, with $17 transaction fees, see http://research.scottrade.com/qnr/Public/MutualFunds/Summary?symbol=psldx

Maybe long term bonds sing their last song and we should not even look in this direction, but what if their smart combo with stocks will continue to work?

Any comments?

See also a closely related discussion at http://www.mutualfundobserver.com/discussions-3/#/discussion/4071/ping-cathyg-great-video-interview-on-understanding-lt-treasuries

Comments

  • beebee
    edited September 2012
    Hey Andrei,

    Very nice chart.

    If one were to pair PSLDX with a steady eddy like a PGNDX (Pimco GNMA fund) or even one of my favorites, PONDX (Pimco Income), one could periodically reallocate profits from PSLDX and into PONDX along the way. Paying attention to when these fund crossover might alert you to downtrends.

    A conservative investment might be 25% PSLDX and 75% PONDX and aggressive just the opposite. Downtrends (crossovers) would be what to watch for.

    Over the last three years PSLDX looks to me as if it has maintained a "risk on" trade.

    image

    Thanks for the heads up with Scottrade.
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