Performance
The "D" share class of All Asset, the one most commonly purchased in our portfolios, was launched on April 30, 2003. While many advisors may have balked at purchasing a fund in such an infant stage, we had extensive interaction with Pimco prior to the fund’s launch. They sent us their backtesting data and indexes used to replicate the fund’s exposures had it been in existence over the past decade. After running them through our own quantitative studies, we were impressed by the risk reduction capabilities and return potential from such an eclectic mix of funds and asset classes. We made our first purchase in May 2003.
As noted, this fund is more like a hedge fund than a conventional stock fund and Rob's performance objective reflects that. Rather than benchmarking himself relative to the S&P 500 or peers, he targets an absolute return of 5% over inflation (CPI). Looking at the fund’s performance since inception, the fund has returned 15.40% annualized and more than doubled his goal of CPI + 5.0% and it has done so with less than half of the risk of the S&P 500.
| Pimco All Asset Fund Performance (as of 10/21/04) |
| |
YTD |
1-Year |
| Pimco All Asset D |
7.86% |
13.49% |
| Peer Category: Flexible Funds |
1.62% |
6.52% |
| S&P 500 |
0.90% |
7.60% |
| % Rank in Peer Category |
Top 2% |
Top 2% |
However, to give you some context, the table above compares All Asset to the S&P 500 and its peer group funds. Year-to-date through October 21, 2004, All Asset’s return of 7.86% dwarfs the S&P 500’s 0.90%, while taking roughly two thirds of the risk. And it ranks in the top 2% of other "Flexible Funds" as defined by Lipper.
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