MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

PIMIX ETF Version PDI: a Buy at these levels?

Joe
edited July 2013 in Fund Discussions
I think PDI, the ETF version of PIMIX bond fund, is a buy (assuming interest rates dont zoom up again soon and one wants some bond exposure.) PDI has been beaten up by the recent rise in rates such that it now has a Distribution Rate of 7.54% and trades at nearly 7% discount to asset value.

Current $28.17 $30.27 -6.94%
Share Price versus Net Asset Value:

52 Wk Avg discount: -0.73%
52 Wk High: +3.96%
52 Wk Low: -11.42%

Distribution Rate 7.54%


Thoughts?

Comments

  • andrei
    It is not ETF, but rather a closed end fund. Its manager recently bought more shares of PDI, at a price which was well below the present price, see http://www.insider-monitor.com/trader/cik1201895.html
  • JunksterJunkster
    I think it is game over for PONDX (PIMIX) and not entralled with PDI. But then I am a buy strength, sell weakness kind of guy. What surprises me is the lack of discussion about the one area in Bondland that has survived the recent carnage and that is bank loan/floating rate funds. They have performed as advertised. Wish I could say I hold the numero uno fund there which is HFRZX but I don't. I have held however NFRIX and recently ramped back up not only there but in Junkland. Junk bonds haven't received much discussion either but it's not hard to find several with 5%+ YTD gains. A not bad gain in a year of mostly red in Bondville.
  • Joe
    Good suggestion; however none of HFRZX or NFRIX (or their other share classes) are available to individual investors at Schwab.
  • Mona
    Reply to @Junkster:

    Junkster,

    I need to stay with Vanguard or on a Vanguard Brokerage platform. I am in OSTIX and pleased. I like the tamer junk and am thinking about VWEAX. However the duration is 4.9 years. I could add to OSTIX.

    Any thoughts?

    Mona
  • kevindowkevindow
    A recent cautionary WSJ article on bank-loan funds, "Bank-Loan Funds Pose Risk" may be found in the top link of this google SEARCH.

    I continue to like and own PDI, which I purchased for an average 8.5% discount to NAV. Dan Ivascyn is one of the brightest stars at PIMCO, and he has more tools available at his CEF than he does at PIMIX.

    Kevin
  • JunksterJunkster
    Reply to @Mona: Hi Mona, you have been spot-on with OSTIX and it held better than many during the recent decline in junk. If your choice was adding there or buying VWEAX I would add to OSTIX. I much prefer WHIYX in that sector and it is really tame yet always a huge outperformer vs its benchmark. I also have some NCOIX in junk, not as tame but a good performer. I wish Scottrade offered NSYIX from the same family but it doesn't. Nuveen Symphony has some great junk and bank loan funds.
  • ron
    I think the decision whether to own an open or closed end fund. at least to me, is whether I am comfortable with leverage and volatility of CE funds that also often traded frequently by short term traders, which is why I tend to select the OE fund. I do own PIMIX.
  • fundalarmfundalarm
    Reply to @Junkster: so Junkster aka Hiyield007 aka Junkster, still sticking to the bond funds despite equities recent performance? :)
  • fundalarmfundalarm
    @Joe: if you have never invested in CEFs, I would keep out. If you want to start, start small and watch your own reaction to the volatility. by the way Dan Ivascyn keeps buying PDI with the latest 30k shares completed yesterday.
  • JunksterJunkster
    edited July 2013
    Reply to @fundalarm: There's one in every forum isn't there?? You may want to research the archives (under hiyield007)and dates beginning where I posted some of my biotech stocks. Let's see SNTS at 13 now over 24, NPSP at 9.80 now over 18 and the one I have had the sense to stick with the whole while and accumulate more on the way up, LGND at 21 now over 47. Plus I surely didn't stick with the bond funds when they were in decline. I use a 1% to 1.25% trailing stops from highs. I won't even mention all the biotech stocks in between since it would be after the fact posting but stock trading is not my forte. For instance bough ACAD in the mid 14s and sold in the mid 17s while it is now trading above 20. Not my best move among many others. Besides LGND I hold small positions now in NBIX and VPHM. Biotech, especially small caps have been the place to be this year.
  • fundalarmfundalarm
    Reply to @Junkster: my bad then.... i've been absent too much recently.
Sign In or Register to comment.