- Last Ratings Update:11/30/2014
- Price as of 11/30/2014 :$27.45
- Net Assets:$426.56 Million
- Peer Rank:81 of 218
- Investment Rating:C
We rate Pimco Income Opportunity Fund at C. This overall rating indicates it is among the top 10% of all closed end funds in its peer group. Positive factors that influence this rating include a greater than above average total return and low price volatility. The fund invests approximately 94% of its assets in bonds and may be considered for investors seeking a Global Income strategy.
POSITIVES AND RISKS
Total return ranks above peers over the last three years. The Pimco Income Opportunity Fund has returned an annual rate of 11.95% since inception. More recently, the fund has generated a total return of 15.49% in the last five years, 13.70% in the last three years, and 6.82% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 77% of them. It has also outpaced 63% of its competitors on a three year basis and 49% of them over the last year for the period ending 11/30/2014. On a year to date basis, PKO has returned 3.92%.
Downside risk has been below average. PKO has a draw down risk of -16.93%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 12.0%. This fund has had moderate volatility in its monthly performance over the last 36 months. As of 11/30/2014, the fund was trading at a price of $27.45, which is 0.5% below its 52-week high of $27.60 and 3.1% above its 52-week low of $26.63.
High expense ratio hinders performance. On total assets of $426.56 million, PKO maintains a high expense ratio compared to its Global Income peers of 1.93% to cover all operating costs. Brokerage costs for the fund to buy and sell shares are not included in the expense ratio. As PKO is a closed end fund, it has no front end or back end load.
Manager tenure and performance record are net positives. Substandard fund managers tend to be replaced, so a long tenure is usually a good sign that a fund is achieving its objectives. The Pimco Income Opportunity Fund has been managed by Daniel J. Ivascyn for the last 7 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 97% of other fund managers.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV