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Morningstar's Current View on PIMCO

Still formidable, with areas for improvement and a few open questions.

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On Jan. 21, 2014, PIMCO announced that former CEO and co-CIO Mohamed El-Erian would be departing the firm by mid-March 2014. That announcement took most PIMCO observers by surprise. The firm announced a number of additional changes to its leadership ranks on Jan. 29, 2014.

Since those announcements, a number of media articles have focused on the fractious interactions between CIO Bill Gross and El-Erian; short-term performance challenges and outflows at a few of the firm's funds; and Gross' at-times tempestuous behavior. Those articles generally did not directly address the question of whether El-Erian's departure, Gross' behavior, or the recent leadership changes have actually impaired or benefited PIMCO's investment process and investment culture.

Eric Jacobson has a position in the following securities mentioned above: PTTRX, PRRIX. Find out about Morningstar’s editorial policies.