PIMCO Income Opportunity FundFind Ratings Reports
- Last Ratings Update:04/30/2021
- Price as of 04/30/2021 :$27.02
- Net Assets:$401.79 Million
- Peer Rank:143 of 230
- 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 12.75% since inception. More recently, the fund has generated a total return of 9.37% in the last five years, 4.10% in the last three years, and -7.77% in the last year. How does that compare to other equity funds? In the last five years, it has outperformed 84% of them. It has also outpaced 62% of its competitors on a three year basis and 35% of them over the last year for the period ending 4/30/2021. On a year to date basis, PKO has returned -13.94%.
Downside risk has been below average. PKO has a draw down risk of -28.14%, which is the largest price decline experienced over the last three years. This fund has a three year standard deviation of 18.7%. This fund has experienced a high level of volatility in its monthly performance over the last 36 months. As of 4/30/2021, the fund was trading at a price of $27.02, which is 1.1% below its 52-week high of $27.31 and 4.9% above its 52-week low of $25.75.
High expense ratio hinders performance. On total assets of $401.79 million, PKO maintains a high expense ratio compared to its Global Income peers of 2.73% 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 David Hammer for the last 6 years. Over that period, the manager was able to capture more actual gains in excess of the expected return than 92% of other fund managers.