Fund Evaluator:

PIMCO GNMA and Government Secs Instl Overview

PIMCO GNMA and Government Secs Instl (PDMIX) is an actively managed Taxable Bond Government Mortgage-Backed Bond fund. PIMCO launched the fund in 1997.

The investment seeks maximum total return, consistent with preservation of capital and prudent investment management. The fund normally invests at least 80% of its assets in a diversified portfolio of securities of varying maturities issued by the GNMA, and of securities issued or guaranteed by the U.S. government, its agencies or government-sponsored enterprises, which may be represented by forwards or derivatives such as options, futures contracts or swap agreements. It may invest, without limitation, in derivative instruments, such as options, futures contracts or swap agreements, or in mortgage- or asset-backed securities.

About PIMCO GNMA and Government Secs Instl (PDMIX)

There are 3 members of the management team with an average tenure of 10.51 years: Daniel Hyman (2012), Michael Cudzil (2013), Munish Gupta (2022). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Bloomberg US Agg Bond TR USD index with a weighting of 100% and Bloomberg GNMA TR USD index with a weighting of 100%. PIMCO GNMA and Government Secs Instl has 2061 securities in its portfolio. The top 10 holdings constitute 123.9% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

PIMCO GNMA and Government Secs Instl is part of the Fixed Income global asset class and is within the Taxable Bond fund group. PIMCO GNMA and Government Secs Instl has 0.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 182.1% (181.5% domestic bond, 0.6% foreign bond and 0.0% convertible bond). PIMCO GNMA and Government Secs Instl has -82.1% of the portfolio in cash.

Assets Under Management

The fund has $588 million in total assets, which is above the $337 million average for the Government Mortgage-Backed Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PDMIX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The PIMCO GNMA and Government Secs Instl expense ratio is high compared to funds in the Government Mortgage-Backed Bond category. PIMCO GNMA and Government Secs Instl has an expense ratio of 1.89%, which is 113% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. PIMCO GNMA and Government Secs Instl has a portfolio turnover rate of 1297%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 367% for the Government Mortgage-Backed Bond category.

Recently, in the month of July 2026, PIMCO GNMA and Government Secs Instl returned -1.6%, which earned it a grade of F, as the Government Mortgage-Backed Bond category had an average return of -1.2%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

PIMCO GNMA and Government Secs Instl has a trailing yield of 4.61%, which is above the 3.87% category average. The fund normally distributes its income monthly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

PIMCO GNMA and Government Secs Instl Grades

Year to date, the fund has returned -0.1%, 0.3 percentage points better than the category, which translates into a grade of B. The fund has returned 4.3% over the past year (grade of A), 4.5% over the past three years (grade of A) and 0.3% per year over the past five years (grade of B) and 1.5% per year over the past 10 years (grade of A).

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