Picking Between PIMCO's Real Return Funds
Know the distinctions between PIMCO's Silver-Medalist Real Return, Commodity Real Return, and CommoditiesPLUS funds before taking the plunge.
Michael Herbst: We're going to compare and contrast three funds run by Mihir Worah and his Real Return team at PIMCO. We often get questions about how these three funds are similar and different from each other.
So, the first is PIMCO Real Return (PRTNX). This is the purest play on inflation-protected securities that Worah's team runs. It's benchmarked to the Barclays U.S. TIPS Index and, therefore, will track pretty closely to that particular index. The main thing to keep in mind for this inflation-protected bond fund is that Worah can invest up to 20% of assets outside of TIPS and outside of inflation-protected securities. So, at times, this fund will dive deeper into credit or non-U.S. bonds than some of its category peers.
Michael Herbst does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.