I have own a large position in PAAIX.  It is a great long term hold.  Morningstar mis classifies this as a moderate balanced fund.  It holds very little in stocks. It fits better into a go anywhere bond fund.  If you go to Pimcos Institutional site they give you monthly updates on the holdings.  The manager adjusts holdings monthly and is very sharp. 

Mitchelg

Thanks for the comments. Looks like it may be a good time to take a position.

From memory, Pimco describes this fund as an asset allocation fund run by Arnott. Am I confusing this with another fund ?

Jack

No, Jack, you are not confusing PASDX with another fund. PASDX is their All Asset allocation fund. It is a fund of funds and invests in their other realreturn funds.

The Pimco funds use multiple strategies in their quest to achieve their goals. In addition to more traditional bond and equity strategies, these funds also successfully use options, futures and derivatives contracts. Because the Pimco realreturn funds use these multiple strategies, the allocation reported at M* is skewed and do NOT reflect the equity exposure you might expect to see... Each Pimco fund invests the bulk of their assets in US Treasuries and then use the interest paid by the Treasuries to invest in options, futures and derivatives contracts. That is why the M* portfolio xray for each of their funds show almost 100% bonds.

Jack, the realreturn approach using these multiple strategies have been remarkably effective and successful. Just ignore the skewed M* xray and focus on understanding what makes each of the underlying funds tick.

Below are links to articles and data about the Pimco funds --most specifically, for PASDX All Asset. Since PASDX is a fund of funds and invests in Pimco's realreturn funds, you might want to review their fund data, too.

http://www.pimco.com/LeftNav/Product+Focus/2006/Strategic+Markets-+Harris+Interview.htm

PASDX Pimco All Asset D fund card
http://www.allianzinvestors.com/documentLibrary/mutualFunds/productLiterature/
fundCards/dShares/pimco_all_asset_af150d.pdf

PASDX (and other realreturn funds) prospectus
http://www.allianzinvestors.com/documentLibrary/mutualFunds/prospectuses/
PIMCO_RRStrategy_Equity_Related_Funds_Prospectus_D_Shares.pdf

PASDX strategy allocation, 1st Qtr 2008 update
http://www.allianzinvestors.com/documentLibrary/mutualFunds/productLiterature/
productCharts/all_asset_fund_ab200.pdf

Jack, you may or may not be comfortable with the strategies Pimco uses to achieve its goals. I hope that is not the case. I have invested in several of their funds over the years... PASDX, PCRDX, PSPDX and PIPDX. (I sometimes trade in and out.) They have always behaved how you would expect them to for their target markets --and simultaneiously pay a generous yield.

I hope you find the above information useful.

Regards,
Susan

These funds are holding a lot of cash. The x-ray on this fund shows it with 74% cash.I checked PETDX,which is Pimco's real estate fund and it has 58% in cash and 41% in bonds.Seems odd to me but what do i know?It does look like PASDX  keeps a good payout coming.I just don't understand holding that much cash.Can someone enlighten me?-wes

Over the past few years, many threads have discussed the pros and cons of Pimco All Asset. I owned it at one time but sold it because I didn't think this fund-of-fund under manager Robert Arnott has consistently fulfilled his stated objective to beat the rate of inflation by a certain percentage. Compare the year-to-date returns of Pimco All Asset with Arnott's other fund Pimco All Asset All Authority: PASDX +0.83%; PAUDX +2.78%. More than a dozen other Pimco bond funds are outperforming PASDX. I am hopeful that Mohamed El-Erian's new Pimco Global Allocation will offer an alternative to Arnott's allocation models.

I didn't think this fund-of-fund under manager Robert Arnott has consistently fulfilled his stated objective to beat the rate of inflation by a certain percentage.

That's why I ended up selling my PASDX, closer. The fund itself never seemed to go much of anywhere. Since I like to rebalance my funds, it didn't really fit in with my other funds and what I wanted to do with them. However, I will say that PASDX is a very good fund to hold in volatile times like now.

Re El-Erian's new Pimco Global Advantage fund... Do you know when it's coming out? The speculation is late June. I find nothing more irritating than when ALL we have to go on are articles and SEC filings...

Bloomberg article dated 4/25/08... http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aLwv03OqHFTM

the Seattle Times dated 5/18/08... http://seattletimes.nwsource.com/html/businesstechnology/2004421766
_bloomfund18.html

the SEC's edgar...
http://sec.gov/Archives/edgar/data/810893/000119312508079103/d485apos.htm

and, of course, our own M* Mutual Fund forum courtesy of Norbertc on 5/4/08...
http://socialize.morningstar.com/NewSocialize/forums/thread/2514464.aspx

I keep looking, but I haven't found anything on the Pimco and Allianz websites yet.

If you've run across anything else on Pimco's Global Advantage fund, can you post it here? Thanks, closer!

Regards,
Susan

 

Susan - Thank you for the information and your thoughts on PASDX. I appreciate it very much.

 Jack