2024-04-29 11:00:00 ET
Summary
- PIMCO High Income Fund offers a current yield of 12.03%, but other closed-end peer funds have higher yields.
- The fund's share price performance has been volatile but has outperformed domestic bond indices in recent months.
- The fund's leverage ratio is in line with its peers, and it has been able to cover its distributions through net unrealized gains.
- Bond funds like this one are looking better than they did at the end of December, but rate hikes are a real risk right now.
- The fund has failed to fully cover its distribution YTD and trades at a premium so caution is urged.
The PIMCO High Income Fund ( PHK ) is a closed-end fund that income-focused investors can employ as a means of achieving their goals. This seems only logical given that the name of the fund strongly implies that its intent is to provide its shareholders with a very high level of current income. The fund actually does pretty well here, as it yields 12.03% at the current share price, which is likely to be an incredibly attractive yield for anyone who is still accustomed to 7% or so being a “high yield” as was the case over most of the past fifteen years. However, the fund’s 12.03% current yield is a bit lower than many other closed-end funds that are employing a similar strategy:
Fund Name | Morningstar Classification | Current Yield |
PIMCO High Income Fund | Fixed Income-Taxable-Multi-Sector | 12.03% |
Guggenheim Strategic Opportunities Fund ( GOF ) | Fixed Income-Taxable-Multi-Sector | 15.02% |
DoubleLine Yield Opportunities Fund ( DLY ) | Fixed Income-Taxable-Multi-Sector | 9.18% |
TCW Strategic Income Fund ( TSI ) | Fixed Income-Taxable-Multi-Sector | 5.22% |
Western Asset Diversified Income Fund ( WDI ) | Fixed Income-Taxable-Multi-Sector | 12.20% |
Virtus Global Multi-Sector Income Fund ( VGI ) | Fixed Income-Taxable-Multi-Sector | 13.20% |
Read the full article on Seeking Alpha
For further details see:
PHK: Decent Positioning And Portfolio, But Expensive Given Bond market Risks