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Ballooning Assets at PIMCO Income Give Us Pause

Closing this impressive fund even temporarily might better serve its investors.


Eric Jacobson: There's no question that PIMCO Income has been truly impressive. The fund boasts a world class team, an effective, time-tested process, and a stellar record. The strategy's assets have grown at an astonishing rate, though, which partly explains why its Morningstar Analyst Rating is Silver rather than Gold.

Assets in the overall strategy--in other words, assets across the small handful of vehicles PIMCO manages the same way around the globe--dipped a little in May, but have otherwise ballooned over the past couple of years. They stood at more than $207 billion at the end of May, having more than doubled since the beginning of 2017.

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