PIMCO Dynamic Income Fund vs StepStone Group

This page compares PIMCO Dynamic Income Fund and StepStone Group INC-CLASS A, examining their business models, financial performance, and market context. It presents neutral, accessible information to help readers understand how these entities operate within their sectors. Educational content, not financial advice.

Comparison Snapshot

Key Financial Metrics

PDI

Metric

STEP

$7.09B

Market Cap

$8.75B

N/A

Potential Profit

-0.75%

N/A

Analyst Rating

Buy

Investment Analysis

PIMCO Dynamic Income Fund

PDI

Pros

Offers a high forward dividend yield of over 14%, making it attractive for income-focused investors.
Employs a dynamic global fixed income strategy across multiple credit sectors, providing diversification benefits.
Managed by experienced investment teams at PIMCO and Allianz, leveraging deep credit market expertise.

Considerations

Trades at a significant premium to net asset value, increasing downside risk if the premium narrows.
High yield is partly supported by return of capital distributions, which may not be sustainable long-term.
Portfolio includes exposure to below-investment-grade and complex securities, increasing credit and liquidity risk.

StepStone Group

STEP

Pros

Operates in the growing private markets asset management sector, benefiting from increasing institutional demand.
Generates recurring revenue from management fees and carried interest, supporting stable cash flows.
Has a diversified client base and global footprint, reducing reliance on any single market or region.

Considerations

Performance is closely tied to private equity and real estate cycles, making it sensitive to economic downturns.
Carried interest revenue can be volatile and is dependent on successful exits and market conditions.
Faces intense competition from larger asset managers, which could pressure fee margins and growth.

About The Companies

PIMCO Dynamic Income Fund (PDI)

The PIMCO Dynamic Income Fund (PDI) is a closed-end investment fund that aims to provide shareholders with current income as its primary goal, alongside a secondary objective of capital appreciation. Managed by the well-known Pacific Investment Management Company LLC (PIMCO), the fund invests in a diverse, global portfolio of debt and other income-producing securities. This includes assets like mortgage-backed securities, corporate and sovereign bonds from both developed and emerging markets, and high-yield debt. The fund has a notable focus on privately issued (non-agency) mortgage-related securities, committing to invest at least 25% of its total assets in this area. It also has the flexibility to invest up to 40% of its assets in securities from emerging market countries, offering broad exposure for investors. Being a closed-end fund, its shares trade on an exchange like a stock.

StepStone Group (STEP)

StepStone Group is a global investment firm that specialises in private markets. It offers customised investment solutions, advisory services, and data analytics to its clients, which include institutional investors like pension funds. The firm helps clients build portfolios across asset classes that aren't typically available on public stock exchanges, such as private equity, infrastructure, private debt, and real estate. StepStone uses a variety of strategies, including investing in new funds (primaries), buying stakes in existing funds (secondaries), and investing directly into companies alongside other fund managers (co-investments). With significant revenue streams suggesting strong demand for its services, StepStone plays a key role for investors looking for exposure to alternative asset classes. However, like all investments, its value can go down as well as up, and returns are not guaranteed.

Buy PDI or STEP in Nemo

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Zero Commission

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Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

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6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

PIMCO Dynamic Income Fund vs StepStone Group

Comparison Snapshot

Investment Analysis

PIMCO Dynamic Income Fund

Pros

Considerations

StepStone Group

Pros

Considerations

About The Companies

Buy PDI or STEP in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

Comparison Snapshot

About The Companies

PIMCO Dynamic Income Fund vs StepStone Group

Comparison Snapshot

Investment Analysis

PIMCO Dynamic Income Fund

Pros

Considerations

StepStone Group

Pros

Considerations

About The Companies

Buy PDI or STEP in Nemo

Zero Commission

Trusted & Regulated

6% Interest on Cash

Discover More Comparisons

PIMCO Dynamic Income Fund vs Voya Financial

Lincoln Financial vs StepStone Group

Cullen/Frost Bankers vs StepStone Group

Frequently asked questions

What does a forward dividend yield tell me about stock_1 compared with stock_2?

How should I interpret a premium to net asset value (NAV) for stock_1?

What is the difference between a fixed income strategy and an asset management business model as seen in these stocks?

Why is diversification important when comparing these two stocks?

How should I weigh income prospects against capital risk for stock_1?

What role do recurring revenues play for stock_2, and why is that relevant?

Why might stock_2 be sensitive to private market cycles?

What does diversification imply for risk management when comparing these stocks?

In what market contexts might these stocks perform differently?

How can understanding the business context help compare these stocks within their sectors?

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Comparison Snapshot

About The Companies