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PIMCO Total Return Instl Message Board

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  • gotburned26 gotburned26 Oct 28, 2011 7:51 PM Flag

    Yep, Billy Bob Took It in The Rump

    Can you or someone else explain why this thing went up today .05?

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    • Coz they have exposure to emerging market debt & currencies, besides some derivatives as this fund employs leverage and is actively managed. US 10Yr. rate is only one thing that affects this fund.

      • 2 Replies to ca_resident_alias
      • Even simpler; the underlying securities in the PTTRX portfolio increased in value and when divided by all the outstanding shareholders the increased value of the portfolio resulted in a higher NAV. The PTTRX NAV is not a derivitive soley on stock market trades it is also based on the value of what it owns in its portfolio.

        It's as if 1000 people bought a house worth $10,000 an each shareholder put in $10. Then the house went up in value to say $12,000. If that happened each shareholder's basis in the portfolio would be $12 compared to their original investment of $10.

        Now add the change in portfolio NAV to the fact that shares in the house can be traded on the open market, there will also be fluctuations in NAV due to market demand in ownership of the house. This is why it takes several hours for Pimco to compile the value of its entire portfolio each day for posting by 3:00 pm PCT since ther are hundreds of thousand of diferent "houses" held in the PTTRX portfolio. I'd like to know how they keep track of it all and can issue a NAV valuation two hours after market close but they do it accurately each and every day.

      • Thank you, new to the board and have had this fund in my 401k for several years. Sad to say I've never really kept up with it as all of you have.

10.300.00(0.00%)Oct 20 6:45 PMEDT