PIMCO Income Opportunity Fund

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PKO : NYSE : Financial
$23.82 | %
Today's Range: 23.70 - 23.90
Avg. Daily Volume: 63,300
07/29/16 - 3:59 PM ET
  • Last Ratings Update:06/30/2016
  • Price as of 06/30/2016 :$23.00
  • Net Assets:$388.35 Million
  • NAV:$22.74
  • Premium1.14%
  • Peer Rank:106 of 269
  • Investment Rating:C
  • Performance:B-
  • RiskC
PKO Price Chart


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.


Total return ranks above peers over the last three years. The Pimco Income Opportunity Fund has returned an annual rate of 10.44% since inception. More recently, the fund has generated a total return of 8.24% in the last five years, 7.32% in the last three years, and 6.98% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 61% of them. It has also outpaced 59% of its competitors on a three year basis and 74% of them over the last year for the period ending 6/30/2016. On a year to date basis, PKO has returned 15.22%.

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 11.5%. This fund has had moderate volatility in its monthly performance over the last 36 months. As of 6/30/2016, the fund was trading at a price of $23.00, which is 1.6% below its 52-week high of $23.38 and 2.9% above its 52-week low of $22.35.

High expense ratio hinders performance. On total assets of $388.35 million, PKO maintains a high expense ratio compared to its Global Income peers of 2.43% 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 86% of other fund managers.

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