PIMCO Total Return Will Not Be Changing Its Stripes
Manager Bill Gross is embracing flexibility, but not all-out change.
It's important for investors to know what PIMCO Total Return (PTTRX) will and will not be.
In institutional lingo, this is a "core-plus" offering. It keeps its rate sensitivity in a range around its benchmark, the Barclays U.S. Aggregate, invests in the same sectors as the index, and can add some out-of-benchmark bonds. That gives the fund a broad palette. Manager Bill Gross has historically made large bets using the fund's benchmark sectors (in particular with agency mortgages), has peppered in nonbenchmark holdings such as emerging-markets and nonagency mortgage debt, and has long used interest-rate bets to try to improve returns.
Eric Jacobson has a position in the following securities mentioned above: PTTRX. Find out about Morningstar’s editorial policies.