PIMCO Funds Under Review Following Gross' Exit

REACTION: All Morningstar analyst ratings on PIMCO funds are under review following today's news

Russel Kinnel 26 September, 2014 | 4:56PM

We are placing all rated PIMCO funds under review—including the flagship PIMCO Total Return—while we assess the impact of today’s announcement that founder, managing director and chief investment officer Bill Gross is leaving the firm for Janus. PIMCO has said it will name a replacement for Gross by end of day, Friday, September 26.

Following Mohamed El-Erian’s departure in March, PIMCO named six deputy CIOs in order to make a more orderly plan of succession. They are Andrew Balls, Dan Ivascyn, Mihir Worah, Mark Kiesel, Scott Mather and Virginie Maisonneuve. These six will likely play key roles in the wake of Gross’ departure.

PIMCO’s depth of resources means investors have time to reassess their options. While it is not a shock to see Gross depart, it is a big surprise to see him leave so quickly and to a competitor.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
PIMCO GIS Ttl Ret Bd E USD Acc28.33 USD0.37

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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