Q: How would you rate this bond fund? Is there a better alternative in terms of performance, risk and cost?
5i Research Answer:
PMIF is a more active fixed income fund designed to be adapt the portfolio to market conditions. We think fixed income funds in general can be good options offering low-risk, predictable cash flows which offer a diversification from equities. While returns have not been exceptional, PMIF has outperformed other Canadian alternatives such as CBO, XHY, and XBB. The latter options have much lower expense ratios but PMIF is more actively managed and it does have better returns over recent time periods. We think PMIF is a decent fixed income fund.