If you've been stuck searching for Diversified Bonds funds, consider PIMCO Income C (PONCX) as a possibility. PONCX holds a Zacks Mutual Fund Rank of 2 (Buy), which is based on various forecasting factors like size, cost, and past performance.

Objective

The world of Diversified Bonds funds is an area filled with options, such as PONCX. Investors looking for exposure to a variety of fixed income types that stretch across issuers, maturities, and credit levels will find a good fit with Diversified Bonds funds. Typically, these funds have a solid amount of exposure to government debt, as well as modest holdings in the corporate bond market.

History of Fund/Manager

PONCX finds itself in the PIMCO Funds family, based out of Newport Beach, CA. The PIMCO Income C made its debut in April of 2007 and PONCX has managed to accumulate roughly $3.73 billion in assets, as of the most recently available information. The fund's current manager is a team of investment professionals.

Performance

Investors naturally seek funds with strong performance. This fund has delivered a 5-year annualized total return of 2.22%, and is in the middle third among its category peers. If you're interested in shorter time frames, do not dismiss looking at the fund's 3 -year annualized total return of 0.81%, which places it in the middle third during this time-frame.

It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.

When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of PONCX over the past three years is 6.41% compared to the category average of 25%. Looking at the past 5 years, the fund's standard deviation is 6.59% compared to the category average of -9%. This makes the fund more volatile than its peers over the past half-decade.

This fund has a beta of 0.47, meaning that it is less volatile than a broad market index of fixed income securities. Taking this into account, PONCX has a positive alpha of 1.8, which measures performance on a risk-adjusted basis.

Ratings

Investors should also consider a bond's rating, which is a grade ( 'AAA' to 'D' ) given to a bond that indicates its credit quality. With this letter scale in mind, PONCX has 68.33% in high quality bonds rated at least 'AA' or higher. The fund has an average quality of AA, and focuses on high quality securities.