Posted inFixed Income

HEAD-TO-HEAD: Amundi versus Pimco

FSA compares two fixed income products: the Amundi Global Aggregate Bond Fund and the Pimco GIS Income Fund.
by Rupert Walker

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Fees

It is critical to evaluate expenses, as they come directly out of returns, according to Morningstar.

“Both funds have a myriad share classes so it really depends which share class you are looking at to assess their relative costliness,” said Dobrescu.

The institutional share class for the Pimco fund is priced at 0.55% compared with to 0.51% for the Amundi fund (so a similar level).

“But both funds also offer retail share classes that are much more expensive – for example, the egregiously priced Pimco GIS Income E USD, charging 1.45%a year, as it includes distribution fees,” said Dobrescu.

Indeed, Morningstar has taken Pimco to task for expensive retail share classes and big price tags outside the United States.

The ongoing charges figure of 1.20% for the Amundi Global Aggregate Bond A2 share class is more reasonable.

Nevertheless, the most expensive share classes of the Pimco fund are rated Neutral by Morningstar , while the priciest share classes of the Amundi fund are rated Negative.

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