Current PAUDX Holdings- betting on bonds?

Old_Joe

For what it's worth, PAUDX seems to be betting on bonds, at least for now:

Asset allocation
  Cash	              25.72% 	 
  Stocks	     -10.61% 	 
  Bonds	             122.66% 	 
  Preferred	       1.11% 	 
  Convertible	       2.10% 	 
  Other	              10.45% 	

Security 	                              Net Assets 	 
PIMCO StocksPLUS TR Short Strat Instl		12.75%
PIMCO High Yield Instl				12.39%
PIMCO Emerging Markets Currency Instl		12.00%
PIMCO Emerging Local Bond Instl			10.58%
PIMCO EM Fdmtl IndexPLUS TR ST Instl		8.54%
PIMCO CommoditiesPLUS Strategy Instl		7.71%
PIMCO Income Instl				7.33%
PIMCO Emerging Markets Bond Instl		7.25%
PIMCO Intl Fdmtl IdxPLUS TR Strat Instl		5.99%
PIMCO Floating Income Instl			5.70% 	

andrei

Most interesting! What is the source of the data? I did not find it at PIMCO website, the latest there was from Sept. 2012; probably I did not look hard enough...

From the second table it seems that PAUDX is short US stocks, but long International stocks (5.99% in PTSIX) and it especially emphasizes emerging markets stocks (8.54% in PEFIX).

Old_Joe

Hi andrei- here you go: google finance

andrei

Thanks a lot. The data from 30 Sept. 2012 can be found on Morningstar website, they give 42 holdings, the top ones exactly coincide with the ones you give. So these data are 3.5 months old. During that time they could change the strategy, after the fiscal cliff and the recent stock market run up. Negativity with respect to US stocks is quite interesting, but it was before the cliff...

Investor

M* might not be accounting the equity exposure properly as PIMCO index plus funds etc. get exposure via derivatives while holding bonds as collateral. So, it is really hard to get true exposures for many PIMCO funds.

I considered this fund a few times and am bothered by heavy derivative use. Also, I hold directly one of its constituent funds PONDX so I did not need significant duplication.

andrei

In fact, PONDX was doing much better than PAUIX, but PONDX does not offer stock diversification, which may become important.

claimui

Reply to @andrei: You can also get this information on the fund page: http://investments.pimco.com/Products/pages/283.aspx

The "Portfolio" tab gives a basic overview of holdings categorized by "strategy".

The "Documents" tab includes "PIMCO FUNDS PORTFOLIO STATISTICS REPORT" which gives the exact holdings, and is updated every month.

claimui

Also noticed that a new monthly commentary from Rob Arnott is available: http://investments.pimco.com/insights/External Documents/Arnott_on_All_Asset_January_2013_PCAAA009.pdf

Charles

Thanks claimui.

I like the part about how demography drives GDP in different places around the world.

PAUIX is impressive and has billions in AUM to show for it. It and its sibling PAAIX have beaten SP500 by 2-3% annually the past ten years, while demonstrating great down side protection...no load, low fees...great fund shop in PIMCO, smart and articulate manager in Mr. Arnott. What more can you ask for?

Yield...and they produce that too!

I looked for similar funds. Below is list of all asset allocation funds with high yield and low down side volatility. Oldest share class only. Note M* shows some have loads, but check...I know Schwab for example offers Destra Preferred and Income Securities A DPIAX and Principal Global Dividend Inc A PGBAX as No Load No Fee. Other MFO readers have also noted the latter's no-load institutional class PGDIX. Note too the ETF PowerShares CEF Income Composite PCEF. I grouped results into older and newer funds, listed top to bottom by APR relative to SP500 over their life times.

Old_Joe

Hi claimui: Yes, very interesting, for sure. His comment that "we are still squarely in the sweet spot for bonds, at least demographically for much of the developed world" is extremely interesting. I can't obtain the institutional shares, but am thinking of moving a bit into PAUDX just as an offset to my recent increase in equity exposure.

Sven

Reply to @Old_Joe: You can get into the institutional shares at Vanguard for $25K along with $25 transaction fee. Other large brokerage houses require $1M.

Sven

Reply to @Charles: Why are front-loaded fee (A share) waived at Schwab while Fidelity does not? If that is true across the board, this could enable access to many funds as no-load.

scott

Reply to @Sven: Pimco All Asset/All Authority institutional shares are no min at Ameritrade, but there is a transaction fee ($49.99).

Charles

One of the perks of being with Schwab, I guess. They do some things very well, like their Personal Choice Retirement Accounts. Other stuff not so well, which I have groused about previously.

But in this case...AOK. Here are the screen-shots showing DPIAX and PGBAX as No Load No Fee:









Hey...I did not know that AOK was a fund symbol until now! AOK is iShares S&P Conservative Allocation ETF. Gotta add that one to my notable list.

Sven

Reply to @Charles: Really appreciate the info. I left Schwab years ago for Fidelity when Schwab's service was trailing badly. Perhaps it is time to give them another try.

Old_Joe

Hi there Sven- FWIW, I've had a good experience with them since I opened an account about 9 months ago. So far, OK.

The main reason that I chose them is because they have an office about 1/2 block away, so I can get my hands around the manager's neck if it comes to that.