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Preferred and Capital Securities Fund: Bank Fundamentals Haven’t Been This Strong in Decades

By Advisor Perspectives
Asset Management

SUMMARY

  • Given the strength in bank fundamentals, preferred securities may offer opportunities to generate higher yield and higher return than traditional fixed income.
  • PIMCO’s Preferred and Capital Securities Fund (PFINX) seeks attractive investment ideas in bank securities around the world, diversified across issuers, currencies and structures. We see opportunity for total return in many financials outside the U.S., especially in core European countries.
  • We believe PFINX is positioned to perform well even if interest rates continue to rise.
  • The fund provides diversification from both core bonds and equities, along with a relatively high source of income, some of which may be U.S. tax-advantaged.

Read more at Advisor Perspectives.

Photo: Fortune Live Media

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