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Mutual Funds

5 Compelling Pimco Picks

Total Return. Bill Gross mostly buys investment-grade, intermediate-term U.S. bonds for Pimco's flagship fund. Skip the sales fee with near-clone Harbor Bond (symbol HABDX), which charges 0.55% and yields 4.5%. Harbor, a member of the Kiplinger 25, gained 8.4% over the past year through June 30 and 6.1% annualized over the past five years.


The Bond Kings Spice up Their Menu

Shaking up the Investment Mix

Pimco Increases Treasury Fund Offerings

CommodityRealReturn Strategy. Manager Mihir Worah buys derivatives to tap a broad basket of commodities. But the derivatives tie up only a small part of the fund's assets, and he stashes the bulk in Treasury inflation-protected securities. Because of the crash in commodity prices, the fund, also a member of the Kiplinger 25, plunged 50.6% over the past year and lost 0.3% annualized over the past five. The fund's Class D shares (PCRDX) are available without sales charges through many discount brokers and charge 1.24% annually.

Investment Grade Corporate. This fund isn't pure vanilla; manager Mark Kiesel can dabble in other sectors. The D shares (PBDDX) recently yielded 5.2% and charge 0.90% in annual expenses. Those shares have gained 6.7% annualized over the past three years, and 7.7% over the past year.

Emerging Local Bond. Manager Michael Gomez buys emerging-markets debt denominated in local currencies. The young fund lost 1.1% over the past year but gained 12.5% in the first half of this year. The D shares (PLBDX) charge 1.35% and recently yielded 6.4%.

Global Multi-Asset. This barely tested hedge fund-like mutual fund is co-manager Mohamed El-Erian's opportunity to put his worldview to work. The Class D shares (PGMDX) charge 1.55% and gained 4.5% in the first half of the year.