PIMCO Income Fund Class D (PONDX) is a multi sector bond fund that is well diversified. Its current yield is 5.1% (distributions are paid to shareholders monthly) and it’s expense ratio is .79%. Though the cost of PONDX is a little high (I prefer a net expense ratio of .75% or less but will make exceptions for well-performing funds), it gives good cash flow with its high yield. This fund also has a 12b-1 fee of .25% (but this is already included in the net expense ratio) The most that the fund has lost in a 3 month period is 6.21%.
This fund has consistently outperformed its index, and it has also outperformed a majority of multisector bond funds. Out of all of the bond funds that I am invested in, this one is my favorite. With its beta of .19, it is not a risky fund to invest in. This fund is ideal for investing in both retirement accounts and taxable brokerage accounts due to its high yield. Its fund managers are well known among experts that follow the bond market. They are known for being able to “outsmart” the market, and PONDX’s consistently high performance seems to support that notion.
A majority of my investment portfolio is invested in this fund. Even in my taxable account, PONDX performs about as well after taxes as my best municipal bond fund (which is mostly tax exempt). I like this fund so much that I sold most of my shares of Charles Schwab’s bond index fund to buy PONDX. Its worst 3 month loss is only slightly more than bond index fund’s, but the performance is vastly superior. In the bond market, this fund comes out on top.