PIMCO Income Opportunity FundFind Ratings Reports
- Last Ratings Update:10/31/2016
- Price as of 10/31/2016 :$22.78
- Net Assets:$338.29 Million
- Peer Rank:102 of 250
- Investment Rating:C
We rate Pimco Income Opportunity Fund at C. 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 10.31% since inception. More recently, the fund has generated a total return of 9.01% in the last five years, 4.70% in the last three years, and 9.58% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 60% of them. It has also outpaced 57% of its competitors on a three year basis and 72% of them over the last year for the period ending 10/31/2016. On a year to date basis, PKO has returned 16.95%.
Downside risk has been below average. PKO has a draw down risk of -32.91%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 10.9%. This fund has had a low level of volatility in its monthly performance over the last 36 months. As of 10/31/2016, the fund was trading at a price of $22.78, which is 1.9% below its 52-week high of $23.22 and 2.1% above its 52-week low of $22.31.
High expense ratio hinders performance. On total assets of $338.29 million, PKO maintains a high expense ratio compared to its Global Income peers of 2.63% 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 9 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 88% of other fund managers.