Pcrix

[BUM]

Us old timers probably still own this. I do, and have masochistically been adding to it. Its a good time I guess - nobody wants in. Also bought IAU yesterday. When commodities appreciate, if I live long enough, I'll do good...

 

[ownyourfuture]

IAU is an interesting buy.

I just put it in my watchlist.
I'm leery of trying to 'catch a falling knife' though.
Been burned in the past

Good Luck

 

[SVHoper]

Hi,

Google finance says PCRIX top holdings are:

Pimco Cayman Cmdty Fd Ltd Instl 14.48%
US Treasury Note 1.25% 13.88%
Fin Fut Euro$ Cme 03/14/16 8.13%
US Treasury Note 7.47%
US Treasury Note 7.45%
US Treasury Note 2.625% 5.77%
US Treasury Note 2.5% 4.72%
US Treasury Note 1.125% 4.01%
US Treasury Note 3.47%
US Treasury Note 1.875% 2.98%

To a total stock market slicer (ie total commodity dummy), this seems like a lot of treasuries and not much Commodities for a 0.74% ER. Would you mind explaining your thinking... is it buying on a Commodity dip

 

[BUM]

Hi,

Google finance says PCRIX top holdings are:

Pimco Cayman Cmdty Fd Ltd Instl 14.48%
US Treasury Note 1.25% 13.88%
Fin Fut Euro$ Cme 03/14/16 8.13%
US Treasury Note 7.47%
US Treasury Note 7.45%
US Treasury Note 2.625% 5.77%
US Treasury Note 2.5% 4.72%
US Treasury Note 1.125% 4.01%
US Treasury Note 3.47%
US Treasury Note 1.875% 2.98%

To a total stock market slicer (ie total commodity dummy), this seems like a lot of treasuries and not much Commodities for a 0.74% ER. Would you mind explaining your thinking... is it buying on a Commodity dip

This fund doesn't hold the actual commodity (crude, gold, corn, etc.).
From Pimco:


The funds do not invest in physical commodities. Instead, they
use an enhanced index strategy. This exposes the funds to
commodities through investments in commodity-index-linked
derivative instruments. PIMCO CommodityRealReturn Strategy
Fund is linked to the Dow Jones UBS Commodity Total Return
Index. PIMCO CommoditiesPLUS Strategy Fund is linked to the
Credit Suisse Commodity Benchmark. Also, the funds may
invest in derivatives linked to the value of a particular
commodity or commodity futures contracts (or in subsets).
PIMCO CommodityRealReturn Strategy Fund then
“collateralizes” these derivative instruments by investing the
remaining portfolio assets in an actively managed portfolio of
inflation-indexed bonds and other fixed income securities. In
this way, the fund seeks to capitalize on the inflation-hedging
properties of both commodities and inflation-indexed bonds.

I'm not exactly buying on the dip. I add to the position from time to time. This is one of those times