Fund Evaluator:

PIMCO Preferred and Capital Secs A Overview

PIMCO Preferred and Capital Secs A (PFANX) is an actively managed Taxable Bond Preferred Stock fund. PIMCO launched the fund in 2015.

The investment seeks maximum total return, consistent with prudent investment management. The fund invests at least 80% of its assets in a diversified portfolio of preferred securities and Capital Securities. “Capital Securities” include (1) securities issued by U.S. and non‑U.S. financial institutions (including, but not limited to, banks and insurance companies) that can be used to satisfy their regulatory capital requirements and (2) securities, which may include instruments referred to as hybrid securities, that would be subordinated (i.e., fall lower in the capital structure) to at least one type of debt.

About PIMCO Preferred and Capital Secs A (PFANX)

There are 1 members of the management team with an average tenure of 11.31 years: Philippe Bodereau (2015). Management tenure is more important for actively managed funds than passive index funds.

The fund has 3 primary benchmarks: Bloomberg Global Aggregate TR Hdg USD index with a weighting of 100%, ICE BofA Contingent Captl TR USD index with a weighting of 30% and ICE BofA 8%CnstdCoreWestPfd&JrSubTRUSD index with a weighting of 70%. PIMCO Preferred and Capital Secs A has 395 securities in its portfolio. The top 10 holdings constitute 61.5% 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 Preferred and Capital Secs A is part of the Hybrid Securities global asset class and is within the Taxable Bond fund group. PIMCO Preferred and Capital Secs A has 49.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.8% allocated to foreign stock, and 33.9% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 82.9% (34.0% domestic bond, 48.9% foreign bond and 0.3% convertible bond). PIMCO Preferred and Capital Secs A has -36.1% of the portfolio in cash.

Assets Under Management

The fund has $95 million in total assets, which is below the $549 million average for the Preferred Stock 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.

PFANX 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 Preferred and Capital Secs A expense ratio is high compared to funds in the Preferred Stock category. PIMCO Preferred and Capital Secs A has an expense ratio of 1.32%, which is 19% higher than its category average, making the fund expense ratio grade a D. 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 Preferred and Capital Secs A has a portfolio turnover rate of 32%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 37% for the Preferred Stock category.

Recently, in the month of July 2026, PIMCO Preferred and Capital Secs A returned -0.7%, which earned it a grade of F, as the Preferred Stock category had an average return of -0.3%. 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 Preferred and Capital Secs A has a trailing yield of 4.94%, which is below the 5.56% category average. The fund normally distributes its income quarterly 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 Preferred and Capital Secs A Grades

Year to date, the fund has returned 1.6%, 0.1 percentage points better than the category, which translates into a grade of C. The fund has returned 6.7% over the past year (grade of A), 9.4% over the past three years (grade of A) and 2.4% per year over the past five years (grade of D) and 5.3% per year over the past 10 years (grade of A).

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