PIMCO Long-Term US Government InstlPGOVX

Morningstar Rating

Fund Research and Analysis

by Michael Herbst

PIMCO Long-Term U.S. Government appears to be back on track, though long-term bond investors can find more buttoned-up and more flexible options.

This fund tends to exercise more flexibility than some of its straight-laced long-term government-bond category peers. Read more

Kudos

Attractive long-term returns.

Seasoned management team. Read more

Risks

Above-average interest-rate sensitivity can result in significant price swings.

Use of futures, options, and derivatives adds another layer of risk.

Investing a bit in nongovernment securities won't please style purists.

The broker-sold share classes are pricey. Read more

Strategy

Manager Steve Rodosky invests the bulk of the fund's assets in a mix of Treasuries, agency bonds, and mortgage-backed securities. However, he will attempt to boost returns by owning a bit of corporate debt and by participating in the options, derivatives, and futures markets. Read more

Management

Steve Rodosky took over for Jim Keller on July 16, 2007. Rodosky has been with PIMCO as a member of its Long Duration team since 2001. He draws on an immense pool of analytical talent at PIMCO and invests according to the macroeconomic view formulated by the firm's investment professionals. Read more

Inside Scoop

This fund exercises a bit more latitude to invest outside the government sphere than some of its long government-bond peers. That bent has weighed on the fund's relative performance, but we have high regard for PIMCO's ability to manage the risks of its broader mandate. Read more

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