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Fund Spy

PIMCO Total Return Fired From Some Retirement Funds

Target-date funds haven't been immune from the question of whether to replace or retain the strategy following Bill Gross' departure.

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Morningstar rates 24 of the industry’s most widely held target-date series each quarter. Full reports, which include analytical text for the five pillars that underlie the ratings, are available to subscribers of Morningstar's software for advisors and institutions: Morningstar Principia®, Morningstar Advisor Workstation(SM), Morningstar Office(SM), and Morningstar Direct(SM). Morningstar.com Premium Members can access each of the target-date series’ Summary Report.

Bill Gross' surprise departure from PIMCO and its flagship PIMCO Total Return (PTTRX) at the end of September affected investors of all stripes. The fund is pervasive in defined contribution plans as participants' primary core bond holding, for example. Retirement-plan tracker BrightScope counts the strategy in almost half of the more than 55,000 plans in its database. (Indeed, the fund stands as the mainline fixed-income option in Morningstar's 401(k) plan.)

Janet Yang, CFA has a position in the following securities mentioned above: PTTRX. Find out about Morningstar’s editorial policies.