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.
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 emphasized 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.
Russel Kinnel has a position in the following securities mentioned above: PTTRX, DODIX. Find out about Morningstar’s editorial policies.