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Annual Return numbers PIMCO not making sense

Hi,

I've been looking into moving some dollars into Pimco Total Return Admin ( mutual fund) via my 401K with Wells Fargo. The Wells Fargo website has good numbers for PIMCO Admin : 6 percent or so, per year, per quarter, etc.

But when I chart it (PTRAX) , the value of the fund, ever since

2002, just bouncres around between 10 and 11. What am I missing ? Shouldn't the value be going up 6 percent per year, if the WF website says it is getting 6 percent per year ???

If I buy into PTRAX, will not the value of my holdings vary up and down, directly with the value in the chart every day ??? According to the chart, it's been hovering between 10 and 11 ever since 2002, bouncing up and down.

Will the fund be paying MY particular account dividends approximating 6 percent, , that are not reflected in the share price ??

Synopsis : the share price is going nowhere, so how can they claim decent returns on the investment???

Thanks

Reply to
nonick
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Are you charting the *price*? That's not the total return for any fund, or even almost any stock. You need to track price plus any payouts (dividends, distributions, etc). Some sources of data will give you an "adjusted price" which reflects those distributions and a chart of that would work right.

That depends - do you have distributions automatically reinvested in the fund? (Most folks do most of the time, especially in retirement accounts like 401ks where one may not even have a choice about that). If so, then no, the value of that fund holding in your account reflects those distributions being reinvested. If not, then you should be accumulating cash somewhere.

Synopsis: you're probably not looking at what you think you are.

Reply to
BreadWithSpam

The stated returns are total returns and assume reinvestment of distributions. When you reinvest the distributions you buy more shares. This fund makes monthly distributions so each month your share balance will be higher that it was the month before.

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Reply to
Froggie

In Bread's response he mentioned the difference between a bond fund's "yield" and "total return". Before you go any further with investing in a bond fund (like PTRAX) it is imperative that you understand the difference. Suggest you Google those terms, and post again if you still have questions.

-HW "Skip" Weldon Columbia, SC

Reply to
HW "Skip" Weldon

Just before a $ 6 dividend, a fund might be worth $106 per share, but once it is ex-dividend, you would only pay $ 100 for it since you won't get the dividend. If you reinvest the dividends, your dollar value in the fund would increase because your 100 shares would now be 106 shares, but it would increase due to additional shares, not because the price per share went up.

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Reply to
JoeSixPack

Yes.

The return includes the dividend.

PTRAX holds a mixture of cash and bond assets both long and short gaining some leverage to get a higher return.

Some of those bonds are mortgage based, so like the corporate bonds, their is some risk.

-- Ron

Reply to
Ron Peterson

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