Pimco Income Opportunity Fund of Beneficial InterestFind Ratings Reports
- Last Ratings Update:12/31/2018
- Price as of 12/31/2018 :$25.39
- Net Assets:$379.38 Million
- Peer Rank:42 of 274
- Investment Rating:B
We rate Pimco Income Opportunity Fund at B. Positive factors that influence this rating include a well 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 very high in comparison with peers over the last three years. The Pimco Income Opportunity Fund has returned an annual rate of 11.54% since inception. More recently, the fund has generated a total return of 9.80% in the last five years, 19.15% in the last three years, and 9.10% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 90% of them. It has also outpaced 96% of its competitors on a three year basis and 97% of them over the last year for the period ending 12/31/2018. On a year to date basis, PKO has returned 9.10%.
Downside risk has been below average. PKO has a draw down risk of -8.19%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 9.9%. This fund has had a low level of volatility in its monthly performance over the last 36 months. As of 12/31/2018, the fund was trading at a price of $25.39, which is 2.3% below its 52-week high of $26.00 and 9.4% above its 52-week low of $23.21.
High expense ratio hinders performance. On total assets of $379.38 million, PKO maintains a high expense ratio compared to its Global Income peers of 2.99% 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 11 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 99% of other fund managers.