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Missing From Most Pimco Stock Funds: Individual Stocks
FYI: Pacific Investment Management Co., best known for its bond funds, runs $27.7 billion in stock mutual funds, according to researcher Morningstar. But the vast majority of those dollars aren’t invested in individual stocks.
Instead, most of Pimco’s 18 stock funds get their stock exposure by buying derivatives linked to indexes. That ties up only a small portion of the funds’ assets—and the firm then aims to boost returns by investing the remaining dollars in a variety of bonds.
