Why PIMCO Total Return Retained Its Gold Rating

Viewed in the context of its competitors, you can see why PIMCO Total Return is still an elite fund

Russel Kinnel 15 April, 2014 | 10:31AM

PIMCO has been swirling in controversy these days. Since Mohamed El-Erian left the firm, there have been a number of published reports highlighting heated arguments between El-Erian and Bill Gross. Some of the over-the-top quotes from Gross have undermined faith in his leadership just as El-Erian's departure left the firm without a clear heir apparent.

The news emphasised what we've long heard from ex-employees: PIMCO is a difficult place to work, where demands are so extreme that it's very hard to have a life outside the firm. You won't last long if your fund underperforms. This investment-bank-style culture has led to a steady stream of departures, though none as big as El-Erian's.

However, the cupboard isn't bare. In fact, the firm is still the best in the business in many areas. Can anyone match PIMCO when it comes to managers, analysts and traders? Can they match the breadth of expertise in corporate bonds, mortgages, sovereign credits and derivatives?

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
PIMCO GIS Ttl Ret Bd E USD Acc28.76 USD0.70

About Author

Russel Kinnel  is Morningstar's director of fund research. He is also the editor of Morningstar FundInvestor, a monthly newsletter dedicated to helping US investors build winning portfolios.

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