In the wake of Bill Gross’ sudden departure from PIMCO, the gigantic fund company has seen significant outflows.
Different investors may have different reasons for taking their money out of PIMCO.
But here’s one explanation from Sterne Agee Asset Management (SAAM).
This is the note they sent to investors:
Today we made changes to all Classic and Classic Plus portfolios other than the aggressive models.
We liquidated the position in the PIMCO Total Return Fund.
Our sense is that the new PIMCO management team is both experienced and energized.
However, we are concerned about ongoing distractions as their investment professionals attempt to stem & manage around potentially large liquidations.
Proceeds from the sale of PIMCO Total Return Bond fund have been allocated to the other existing intermediate fixed income positions: RidgeWorth Total Return Bond fund & JP Morgan Core Bond fund. In the Moderately Aggressive Model, the JP Morgan Core Bond Fund was a new addition.
So there you have it. The new PIMCO managers are good (everyone agrees at that) but it’s not worth being at a place seeing this much volatility.