Why not 100% PSLDX?

[BullHouse_BearMarket]

At about $1 a year, give or take, the reinvestment works great to keep building the share count and thus more distribution value each year. No complaints with low share value when it pays over 10% each year.

[mroe800]

Capital gains day, hopefully, right?

Yes. PIMCO documentation shows combined ST/LT cap gains of $0.46405 today.

https://www.pimco.com/handlers/displayd ... SxM6tszowg

[Raraculus]

I was checking the closing PSLDX price today and you can imagine my surprise! 6% loss! Came here to find relief... just a cap gain/dividend distribution. If I held this in a taxable account, I would have been very bummed today.

[international001]

I see if I buy it on Vanguard account, it has a 25k minimum? Is this a Vanguard thing? I don't see any minimum at Fidelity

[jarjarM]

I see if I buy it on Vanguard account, it has a 25k minimum? Is this a Vanguard thing? I don't see any minimum at Fidelity

Schwab was at $100k minimum when I purchased so that's already a good deal.

[Ramjet]

I see if I buy it on Vanguard account, it has a 25k minimum? Is this a Vanguard thing? I don't see any minimum at Fidelity

No minimum at TDA, only $50 per trade. It's not expensive to buy at Ally or Etrade either

[averagedude]

I wouldn't put all of my eggs in the PSLDX basket. Their are so many smart individual and institutional investors out their and if this is such a great idea, than tell my this fund has assets under management in the millions instead of billions. If you desire to own this fund and you completely understand the risks, just make it a part of your portfolio, not all of it.

[drzzzzz]

I see if I buy it on Vanguard account, it has a 25k minimum? Is this a Vanguard thing? I don't see any minimum at Fidelity

Fidelity has a minimum of $1,000,000 probably since listed as an institutional class. I confirmed that today with a rep.

[Semantics]

I wouldn't put all of my eggs in the PSLDX basket. Their are so many smart individual and institutional investors out their and if this is such a great idea, than tell my this fund has assets under management in the millions instead of billions.

At 940M AUM it's in fact very close to a billion-dollars, it seems disingenuous to portray a large distinction when you would not have done so if it were 7% larger. I think there are several pretty simple reasons that it doesn't have more AUM, but they're probably more boring than what you're hoping for.

1) It's very tax-inefficient, probably the biggest factor in the "low" AUM is nobody wants to buy it in a taxable account.
2) It's technically actively managed (the bond part) and won't show up in lists of index funds or 401k plans -- not very easy to market.
3) It's a mutual fund not an ETF.
4) It's not available at all brokers, and most that do offer it have minimum investment thresholds and charge high transaction fees.
5) It's leveraged, which steers most investors away by default, even if they have no problem levering up to buy a home.

I didn't know about this fund until March when I started spending a lot more time here. I'm pretty sure most retail investors just don't know about it.

There's no doubt it likely won't massively outperform SPX like it has over the past decade, and may have higher volatility, but the prospectus makes it pretty clear what this fund is and isn't.

[000]

I wouldn't put all of my eggs in the PSLDX basket. Their are so many smart individual and institutional investors out their and if this is such a great idea, than tell my this fund has assets under management in the millions instead of billions.

At 940M AUM it's in fact very close to a billion-dollars, it seems disingenuous to portray a large distinction when you would not have done so if it were 7% larger. I think there are several pretty simple reasons that it doesn't have more AUM, but they're probably more boring than what you're hoping for.

1) It's very tax-inefficient, probably the biggest factor in the "low" AUM is nobody wants to buy it in a taxable account.
2) It's technically actively managed (the bond part) and won't show up in lists of index funds or 401k plans -- not very easy to market.
3) It's a mutual fund not an ETF.
4) It's not available at all brokers, and most that do offer it have minimum investment thresholds and charge high transaction fees.
5) It's leveraged, which steers most investors away by default, even if they have no problem levering up to buy a home.

I didn't know about this fund until March when I started spending a lot more time here. I'm pretty sure most retail investors just don't know about it.

There's no doubt it likely won't massively outperform SPX like it has over the past decade, and may have higher volatility, but the prospectus makes it pretty clear what this fund is and isn't.

6) Institutional investors can implement it themselves.

[jarjarM]

I wouldn't put all of my eggs in the PSLDX basket. Their are so many smart individual and institutional investors out their and if this is such a great idea, than tell my this fund has assets under management in the millions instead of billions.

At 940M AUM it's in fact very close to a billion-dollars, it seems disingenuous to portray a large distinction when you would not have done so if it were 7% larger. I think there are several pretty simple reasons that it doesn't have more AUM, but they're probably more boring than what you're hoping for.

1) It's very tax-inefficient, probably the biggest factor in the "low" AUM is nobody wants to buy it in a taxable account.
2) It's technically actively managed (the bond part) and won't show up in lists of index funds or 401k plans -- not very easy to market.
3) It's a mutual fund not an ETF.
4) It's not available at all brokers, and most that do offer it have minimum investment thresholds and charge high transaction fees.
5) It's leveraged, which steers most investors away by default, even if they have no problem levering up to buy a home.

I didn't know about this fund until March when I started spending a lot more time here. I'm pretty sure most retail investors just don't know about it.

There's no doubt it likely won't massively outperform SPX like it has over the past decade, and may have higher volatility, but the prospectus makes it pretty clear what this fund is and isn't.

6) Institutional investors can implement it themselves.

+1 for both of you, the strategy isn't super sophisticated. If the institution has reasonable handle on the fixed income side, it can be executed fairly easy w/o paying Pimco for it.

Also, in most brokerage, the minimum entry is quite high, $100k for schawab, and up to $1m for others.

[AZAttorney11]

The minimum for PSLDX at Schwab isn't $100,000 or $1,000,000. I initially purchased $10,000 of it back in June in my Roth IRA.

[codoriti]

Yes, those are outdated limits for PSLDX on Schwab, they changed at some point. There is more discussion on limits and brokers earlier in the thread. Schwab's current limits on PSLDX in an IRA is $1000.

[jarjarM]

That change must be pretty recent, I purchased in Schwab only early this year (during the depth of March) and it was $100k at the time.

[Ramjet]

I wouldn't put all of my eggs in the PSLDX basket. Their are so many smart individual and institutional investors out their and if this is such a great idea, than tell my this fund has assets under management in the millions instead of billions. If you desire to own this fund and you completely understand the risks, just make it a part of your portfolio, not all of it.

It is not good to be held in taxable

Main reason IMO

[Ramjet]

I didn't know about this fund until March when I started spending a lot more time here

How much of your portfolio did you allocate to it

[Semantics]

I didn't know about this fund until March when I started spending a lot more time here

How much of your portfolio did you allocate to it

6%, all in my Roth IRA (majority of my portfolio is in taxable and this would be bad there). I initially figured I'd migrate it all to a HEDGEFUNDIE style allocation (was initially in Vanguard which doesn't have leveraged ETFs), but with bond yields so low I might wait a bit as I'm curious if their active management can do better than TMF.

[OuterBanks]

I noticed yesterday PSLDX was unchanged for the day. Doesn’t that seem unusual that the fund can hit exactly 0% change for the day?

[firebirdparts]

It’s not unheard of. I am in the habit of checking every day. They are always very late pricing it.

[international001]

Just tried to by $4000 on my Vanguard Roth IRA. Denied because it didn't reach the minimum required.

[moptop]

25K minimum at vanguard

[hnd]

no limit on TDA. I tiptoed in last year.

[kevinf]

Just tried to by $4000 on my Vanguard Roth IRA. Denied because it didn't reach the minimum required.

I just buy NTSX or VTSAX until I have enough to justify the purchase fee (and in your case, meet the minimum purchase amount).

[OuterBanks]

After buying in at $25,000 I aim for having exactly $6,000 for each purchase of PSLDX to limit the $20 fee. I let some money invest in taxable until I can completely max out the yearly contribution and buy more in one shot.

[ccf]

I'm poking at PSLDX in Portfolio Visualizer and ... any ideas why this happened in 2013?

red = 100% PSLDX
blue = 100% SPY

[moptop]

I'm poking at PSLDX in Portfolio Visualizer and ... any ideas why this happened in 2013?

red = 100% PSLDX
blue = 100% SPY

I'm guessing it was a bad year for longterm bonds.

[firebirdparts]

Yes, I would have certainly expected to find that before I looked. Long term bonds rates shot up on May 1 2013. I don't remember why.

[international001]

Fidelity (Brokerage Link) tells me that I have to call to a representative to buy the fund.

Sounds normal?

[Tingting1013]

Fidelity (Brokerage Link) tells me that I have to call to a representative to buy the fund.

Sounds normal?

Call them on Monday and report back

[firebirdparts]

Fidelity (Brokerage Link) tells me that I have to call to a representative to buy the fund.

Sounds normal?

Maybe so. I don't know what they call it, but it's certainly in some kind of special category. When I look at it in brokeragelink, I don't see any data feed coming from the outside world into Fidelity. No graphs, no performance data. It doesn't have a fund web page and it doesn't show in the fund finder tool. Since I already own it, I can still buy more by going to the trade button. At least I could the last time i checked.

Just to be clear, I bought it during a brief window when they just treated it like any normal fund. Just lucky.

[kardan]

I spoke with a Fidelity rep yesterday and they told me that individuals can't buy PSLDX through Fidelity even if they want to invest the $1M minimum. They claimed it had something to do with their relationship (or lack of one) with PIMCO. This was after about a 10 minute hold while they checked with "another department".

[Elysium]

I'm poking at PSLDX in Portfolio Visualizer and ... any ideas why this happened in 2013?

red = 100% PSLDX
blue = 100% SPY

I'm guessing it was a bad year for longterm bonds.

It was. 2018 was another bad year for long bonds and this type of strategy.

[corp_sharecropper]

I'm poking at PSLDX in Portfolio Visualizer and ... any ideas why this happened in 2013?

red = 100% PSLDX
blue = 100% SPY

I'm guessing it was a bad year for longterm bonds.

It was. 2018 was another bad year for long bonds and this type of strategy.

In 2013 bond yields rose when Bernanke announced that they would be scaling back, or tapering, Fed treasury purchases (slowing down on QE). Basically treasuries were getting dumped by investors as yields increased (will cause other non-treasury bond yields to rise also). Often referred to as the "taper tantrum", gotta love Wall Streets' creativity.

[imak]

Wondering if equity portion of PSLDX can be diversified away from S&P 500 to resemble more of diversified equity portfolio, such as Paul Merriman's ultimate buy and hold allocations.

To mimick PSLDX (100% equity & 100% long-term bond), I attempted a lazy approximation with 110% Equity and 90% Long-term treasuries with equity allocation similar to Paul Merriman style slice-and-dice large-cap/small-cap and US/Intl split of approximately 70%-30%.

SSO (2x S&P500) : 20%
UWM (2x Russell2000) : 20%
VXUS (ex-US Large cap) : 15%
VSS (ex-US Small cap) : 15%
TMF (3x Long-term treasuries): 30%

As per portfolio visualizer, returns are about 17% CAGR from 2012-2020 with similar volatility as PSLDX:

https://www.portfoliovisualizer.com/bac ... tion5_1=30

Yield : 0.90% (significantly lower than PSLDX, favorable for taxable account)
Expense ratio: 0.72% (about 12 basis points higher than PSLDX)

SSO, UWM and TMF leveraged ETFs were selected as their assets under management are larger than 250M (my arbitrary threshold).

For this portfolio, even though returns are about 4% lower than PSLDX so far (mainly due to International underperformance), we get the advantage of more diversified equity exposure and much favorable yield for taxable account implementation.

Curious if anyone is implementing these kind of cloned versions of PSLDX?

[Register44]

[ccf]

[
In 2013 bond yields rose when Bernanke announced that they would be scaling back, or tapering, Fed treasury purchases (slowing down on QE). Basically treasuries were getting dumped by investors as yields increased (will cause other non-treasury bond yields to rise also). Often referred to as the "taper tantrum", gotta love Wall Streets' creativity.

ah thank you! I vaguely remember now.

[international001]

I spoke with a Fidelity rep yesterday and they told me that individuals can't buy PSLDX through Fidelity even if they want to invest the $1M minimum. They claimed it had something to do with their relationship (or lack of one) with PIMCO. This was after about a 10 minute hold while they checked with "another department".

They just told me I can buy it if I have $1M

I guess when I get there I'll figure it out

[kevinf]

Buy it elsewhere and do a transfer-in-kind to Fidelity?

[international001]

Buy it elsewhere and do a transfer-in-kind to Fidelity?

It's a Fidelity 401k. Can you do this?

[kevinf]

No idea! Just suggesting possible backdoor methods.

[manlymatt83]

If my goal is to remain 50/50 US / International, and I own PSLDX, is it safe to buy just as much VXUS as PSLDX to maintain a balance?

[manlymatt83]

For a nomad who doesn't ever want to buy a home, could you instead put the value of a home into PSLDX and have similar risk in leverage to a mortgage?

[cos]

If my goal is to remain 50/50 US / International, and I own PSLDX, is it safe to buy just as much VXUS as PSLDX to maintain a balance?

Considering the equity portion of PSLDX is around 100% US stocks, yes, this makes perfect sense.

[BullHouse_BearMarket]

I think it is dividend day but not entirely sure. Seems like it is usually the last Thursday of December.

[OuterBanks]

Dividend was on December 9, 2020.

Dividend History for Stockplus Long Duration Fd Instl Cl/PIMCO Funds (NASDAQ:PSLDX)
https://www.dividendinvestor.com/divide ... ail/psldx/

[BullHouse_BearMarket]

Dividend was on December 9, 2020.

I think that was short and long term capital gains distribution. Typically the quarterly dividend follows on the last Thursday in December. I suppose it is possible there won't be one.

[pshonore]

Dividend was on December 9, 2020.

I think that was short and long term capital gains distribution. Typically the quarterly dividend follows on the last Thursday in December. I suppose it is possible there won't be one.

Sept dividend was paid on 9/10; believe the 12/10 payment was dividend and cap gains.

[OuterBanks]

Dividend was on December 9, 2020.

I think that was short and long term capital gains distribution. Typically the quarterly dividend follows on the last Thursday in December. I suppose it is possible there won't be one.

Interesting, you are right, it was just the short and long capital gains in December so far, still need an income distribution. Going back several year it seems there has always been one in December.

[mroe800]

Buy it elsewhere and do a transfer-in-kind to Fidelity?

I have been considering trying this. I hold a good bit of my portfolio at Vanguard in PSLDX.

Dividend was on December 9, 2020.

I think that was short and long term capital gains distribution. Typically the quarterly dividend follows on the last Thursday in December. I suppose it is possible there won't be one.

Interesting, you are right, it was just the short and long capital gains in December so far, still need an income distribution. Going back several year it seems there has always been one in December.

The PIMCO website Tax Center contains all this information. Dividend of $0.16/share will be paid on 12/28/2020.

[mwxlkn]

I'm potentially interested in PSLDX as well. Do you know what happened to the fund on Dec 8th?



(4ish% drop vs VOO < 1% drop)