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Ivascyn: Growth Not (Yet) a Problem for PIMCO Income

Dan Ivascyn says the global mandate has allowed him and comanager Alfred Murata to handle inflows without sacrificing risk-adjusted return.

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Eric Jacobson: One of the funds that you manage personally is the PIMCO Income Fund, along with your comanager Alfred Murata. What are the challenges of running a fund like that, that has been so popular and growing so much?

Dan Ivascyn: Well, there are no unique challenges at the moment relating to fund size. As you know we have a very flexible global mandate. We're not tethered to any particular benchmark, and we have the ability to utilize the full global set of tools at PIMCO, which includes almost 250 portfolio managers. So, we've been pleased that we've been able to maintain performance during this period of growth. If we get into a situation where we feel that growth is limiting our ability to provide good value to clients--when I talk about value it's not just return, it's risk-adjusted returns--we'll consider steps to reduce those inflows. But we're nowhere close to that point currently. But it's something that if necessary we will certainly do.

Eric Jacobson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.