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Fund Spy: A Solid Fund for Retirees

MarkMark
in Fund Discussions
Pimco Real Return PRRIX provides worthwhile inflation-protected bond exposure, which can help preserve purchasing power in retirement. By Miriam Sjoblom, (CFA) for M* ,Jan 16, 2020

"Despite some noteworthy team turnover, Pimco Real Return's experienced management team and extensive supporting cast of global-bond specialists continue to give it an edge in the inflation-linked bond arena. Given the importance of low fees in this competitive field, the fund's cheapest institutional share classes earn Morningstar Analyst Ratings of Silver and Bronze, while its remaining shares are rated Neutral."

Article Here

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  • WABACWABAC
    Mark said:

    Pimco Real Return PRRIX provides worthwhile inflation-protected bond exposure, which can help preserve purchasing power in retirement. By Miriam Sjoblom, (CFA) for M* ,Jan 16, 2020

    "Despite some noteworthy team turnover, Pimco Real Return's experienced management team and extensive supporting cast of global-bond specialists continue to give it an edge in the inflation-linked bond arena. Given the importance of low fees in this competitive field, the fund's cheapest institutional share classes earn Morningstar Analyst Ratings of Silver and Bronze, while its remaining shares are rated Neutral."

    Article Here

    This retiree prefers to separate strategies so he sees the moving parts he's betting on -- I mean investing in.

    So if I want derivatives, corporates, and securitized fare I'ld buy them separately.

    Per the M* link:
    It employs macro-driven strategies (driven by real growth, inflation, and country-specific analysis) and micro-driven themes (including Consumer Price Index seasonality, on-the-run/off-the-run premiums, and implied inflation volatility). Although U.S. TIPS and, to a lesser extent, other global inflation-linked bonds dominate the portfolio, the strategy can invest up to 20% in other sectors, such as corporates and securitized fare.

    The approach has led to sizable off-index bets at times, a trait that distinguishes it from its more-constrained peers, including use of Pimco's bonds-plus techniques, by which the strategy gets exposure to its primary sectors via derivatives and invests the cash collateral in short-term bonds. The team may also make meaningful and swift maturity shifts, though the portfolio's overall duration has generally stayed within a year of the benchmark's. The strategy's adventurous nature can cause its performance to diverge from that of the U.S. TIPS market at times. But overall, its flexible approach, which benefits from the insights of Pimco's broad, deep bench of global-bond experts, earns a High Process Pillar rating.
    But for people that don't like to own too many funds this offering from PIMCO is probably safe enough.
  • MarkMark
    Well not exactly. M* and/or their analyst said all that, not Mark. I just linked the article. I guess I should have put all the text within the quote marks.
  • WABACWABAC
    Mark said:

    Well not exactly. M* and/or their analyst said all that, not Mark. I just linked the article. I guess I should have put all the text within the quote marks.

    Blockquotes are your friend ;-).
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