Reader: Is there a Vanguard Fund that is similar to the Pimco Total Return fund. That fund has a substantial front end load.

Ken

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funds-newsletter: Hello Ken - I think I can help you on this question, which is a very practical one that perhaps my other readers might want to know about too.

I love PIMCO Total Return Institutional fund (PTTRX), and have recommended it pretty much since I started my Model Portfolios, but it is not available to everyone unless it is included as one of your 401(k) choices. If you look up the the non-institutional classes of the fund, you will find that there are loads and/or higher expenses than PTTRX.

Vanguard doesn't really have a similar fund. But Harbor Funds has a fund called Harbor Institutional Bond Fund which is also managed by Bill Gross who manages the PIMCO Total Return Fund. It has no load and the expense change is reasonable (0.55% annually). Even though the fund is called "institutional", apparently anyone can invest in it.

You can request or download an application on their site at www.harborfunds.com.

You can find out more about the fund at the above website or get comparative fund info at morningstar.com. The fund's symbol is HABDX. Let me know how it works out.