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The People of Pimco Continue to Impress

The combination of people and process has made the firm resilient.

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Eric Jacobson: Morningstar recommends a number of funds run by Pimco. And the reasons are much deeper than their record of performance. The starting point is its people. It has been roughly five years since cofounder Bill Gross left the company. But the acrimony of his departure overshadowed the remarkable achievements he made in attracting and retaining world-class talent and establishing a culture that has endured and perpetuated itself. There have been high-profile departures in the past, but they've been relatively few. And there has almost always been a deep bench of talent ready to step up and excel in the place of those who left.

Our Analyst Rating framework draws heavily on Process, and the way Pimco runs money has been a cornerstone reason in support of our recommendation of its funds. It stretches from the way that Pimco's teams contribute to the research and management of funds, to the functioning of its investment committees, to the execution of its risk-management efforts. The firm is very well resourced across each of those areas. And while its funds have certainly had stumbles here and there, Pimco's avoidance of major blowups has been crucial to its success and to the confidence of so many investors.

Eric Jacobson has a position in the following securities mentioned above: PTTAX. Find out about Morningstar’s editorial policies.