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The biggest reason not to own PTTRX is not the departure of Bill Gross but the size of the fund itself. There are plenty of stories of people and institutions and pension funds etc all pulling out of Pimco. A decision based on emotion? Probably.
Moving over to Janus opens another can of worms as Janus has had their issues with ethics and SEC investigations.
I don't own any Pimco funds but if I did I would stay put.
Moving over to Janus opens another can of worms as Janus has had their issues with ethics and SEC investigations.
I don't see this as opening another can of worms. PIMCO made its own deals with Canary (for $25M) to allow Canary rapid trading while barring "regular" investors from doing that.
That resulted in a $50M settlement between PIMCO and the SEC. Here's the SEC's notice of distribution of settlement money to shareholders (in 2011!).
Best description of what PIMCO was doing I found in a quick search is in a WSJ article (as usual, follow this google link, click on first story: Scandal Tags Pimco Funds Run by William Gross
And there were other misdeeds - Stephen Treadway (the former Chairman of the Board of Trustees of many of PIMCO's funds) personally settled with the SEC for failing to disclose a conflict of interest in setting up shelf space deals for funds handled by PIMCO's distributor.
When using broad brushstrokes (PIMCO "has had their issues with ethics and SEC investigations"), a lot of families get tarnished. Details on Janus, like details on PIMCO, show that there were multiple subsidiaries and fund groups in each family, and only some of them were involved.
(Though in PIMCO's case, while the bond funds weren't directly involved in the market timing, some were used to park the trading money - including Gross' funds - Total Return and Low Duration.)
@msf, thanks for that info, I was not aware of that situation with Pimco. I knew that the SEC had investigated them for something but these days the SEC has been targeting a lot of financial operations.
Comments
Moving over to Janus opens another can of worms as Janus has had their issues with ethics and SEC investigations.
I don't own any Pimco funds but if I did I would stay put.
I own one (PASAX) and I am keeping it.
Old_Skeet
That resulted in a $50M settlement between PIMCO and the SEC.
Here's the SEC's notice of distribution of settlement money to shareholders (in 2011!).
Best description of what PIMCO was doing I found in a quick search is in a WSJ article (as usual, follow this google link, click on first story: Scandal Tags Pimco Funds Run by William Gross
And there were other misdeeds - Stephen Treadway (the former Chairman of the Board of Trustees of many of PIMCO's funds) personally settled with the SEC for failing to disclose a conflict of interest in setting up shelf space deals for funds handled by PIMCO's distributor.
When using broad brushstrokes (PIMCO "has had their issues with ethics and SEC investigations"), a lot of families get tarnished. Details on Janus, like details on PIMCO, show that there were multiple subsidiaries and fund groups in each family, and only some of them were involved.
(Though in PIMCO's case, while the bond funds weren't directly involved in the market timing, some were used to park the trading money - including Gross' funds - Total Return and Low Duration.)