The fund is a closed-end bond fund investing principally in investment-grade, commercial mortgage-backed securities. The fund's primary investment goal is high current income, with capital gain from the disposition of investments as a secondary objective.
For the third-quarter ending Sept. 30, the fund's total return investment performance, based on its NYSE share price, was 1.28%. For the past year the fund's return investment was 4.71%. On an annualized basis the fund's return was 4.99% over the past three years, and a strong 9.4% over the past five years.
Performance numbers based on net asset value were 2.52% for the third-quarter, 6.89% over the past year, 5.99% on an annualized basis for the past three years, and 8.18% annualized for the past five years.
The fund's regular monthly dividend per share was $0.09 with total dividends for the quarter of $0.28. Annualized dividend yield was 9.38% based on NYSE share price. Annualized dividend yield was 8.78% based on net asset value.
As of Sept. 30 the funds net assets were $141 million, with an average duration of 5.2 years and average maturity of 7.13 years. The fund's holdings include mortgages on apartment buildings, 21%; healthcare facilities, 17%; hotels and motels, 9%; multi-class (a mix of commercial property, including office and industrial properties), 35%; and a variety of other capital types, 18%.
Asset quality is a mixture from AAA to B, with an average quality of BBB. "We don't purchase anything below a B rating as a matter of policy," fund spokesman Jeff Sargent says.
The Commercial Mortgage Securities Trust is one of 60 different mutual funds PIMCO manages.
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