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Fund Spy

PIMCO in Better Shape Than Expected

But the firm isn't yet out of the woods after a tumultuous 2014.

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Morningstar recently issued a new Stewardship Grade for PIMCO. The firm's overall grade--which considers corporate culture, fund board quality, fund manager incentives, fees, and regulatory history--is a C. What follows is Morningstar's analysis of the firm's corporate culture. This text, as well as analytical text on the other four Stewardship Grade criteria, is available to subscribers of Morningstar's software for advisors and institutions: Morningstar Advisor Workstation(SM), Morningstar Office(SM), and Morningstar Direct(SM).

PIMCO's corporate culture is on much more solid ground than one might expect given the tumultuous 2014 departures of former co-CIOs Mohamed El-Erian and William Gross. The firm's leadership team--helmed by CEO Doug Hodge, president Jay Jacobs, and group CIO Dan Ivascyn--has done an admirable job navigating what has been the most challenging stretch in the firm's history. Yet given still-considerable areas of uncertainty, PIMCO's Corporate Culture score remains a C.

Michael Herbst has a position in the following securities mentioned above: PTTRX. Find out about Morningstar’s editorial policies.