Bond Fund Bet Intensifies as Wealth Manager Boosts PIMCO Position by 40K Shares

The Trade

Heirloom Wealth Management significantly increased its exposure to PIMCO Active Bond ETF (NYSE: BOND), adding 40,231 shares worth approximately $4.27 million in Q3. The expanded position now stands at 482,494 shares valued at $45.04 million, making BOND the fund’s largest single holding at 10.88% of assets under management.

Why It Matters

This aggressive move into bond ETF funds signals a notable strategic shift. For context, the additional purchase represents a 9% change relative to the firm’s 13F reportable assets, indicating meaningful conviction in fixed income positioning. BOND remains the top position even ahead of heavyweight tech stocks like Google, Nvidia, and Microsoft in Heirloom’s portfolio mix.

The Bigger Picture

Current holdings snapshot:

• BOND: $45.04 million (10.9% of AUM)
• DFIP: $45.00 million (10.9% of AUM)
• GOOGL: $31.91 million (7.7% of AUM)
• NVDA: $29.51 million (7.1% of AUM)
• MSFT: $28.03 million (6.8% of AUM)

As of November 9, 2025, BOND shares traded at $93.49, delivering a 7.34% one-year return. However, the bond ETF has lagged the S&P 500 by 5.32 percentage points—underperformance typical of fixed income during risk-on equity rallies driven by AI enthusiasm.

About PIMCO’s Bond Fund

BOND operates as an actively managed fixed income strategy targeting investment-grade debt securities with flexibility to allocate up to 30% to high-yield bonds. Monthly rebalancing and dividend payments (5.07% annualized yield as of November 10) provide regular income streams. With $5.91 billion in market capitalization, the fund leverages PIMCO’s active management expertise to navigate both government bonds, mortgage-backed securities, and corporate credit.

The Bond ETF Investment Case

Bond ETF funds like PIMCO’s offer diversified exposure across multiple debt instruments through a single ticker. Unlike index-tracking alternatives, active management allows portfolio managers to capitalize on market dislocations and credit opportunities. The structure provides institutional and retail investors with:

• Liquidity: Trade on exchanges like stocks
• Transparency: Regular 13F disclosures and daily pricing
• Income focus: Monthly dividends plus capital appreciation potential

Heirloom’s near-10% increase in position size, combined with BOND already representing their largest holding, suggests management views bond ETF funds as an attractive risk-adjusted alternative amid tech stock valuations and anticipated interest rate dynamics.

Key Data Points

• Post-trade stake: 482,494 shares at $45.04 million
• Position weight: 10.88% of $413.9 million AUM
• Dividend yield: 5.07% annually
• One-year performance: 7.34% (vs. 12.66% S&P 500)
• Total reportable positions: 43 holdings in the fund

This move underscores how institutional managers continue rotating toward income-generating assets, with bond ETF funds remaining core allocation components in diversified portfolios.