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Weighing in on PIMCO's Prospects

An update on the firm eight months after Bill Gross' departure.

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Eight months after Bill Gross' abrupt departure from PIMCO on Sept. 26, 2014, the dust is finally starting to settle. Below, we provide an update on the firm, assess the impact of recent outflows, and recap the Morningstar Analyst Ratings on funds that we've been keeping a close eye on since Gross left.

PIMCO Is in Better Shape Than Expected
Reassuringly, fears that PIMCO would suffer mass defections following Gross' exit have not materialized. There have been a few notable departures, among them Saumil Parikh, who led  PIMCO Unconstrained Bond (PFIUX) after Gross left, and central-bank watcher Paul McCulley, whose departure was signaled well in advance. Overall, turnover in the firm's investment staff has been close to historic levels in both the senior and more junior levels of the organization. As a result, PIMCO remains one of the best-resourced fixed-income managers in the business, with more than 250 portfolio managers with an average of two decades of experience.

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

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