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M*: Pimco Total Return Posts $3.2 Billion Outflows In December:
FYI: Investors pulled $3.2 billion from the Pimco Total Return Fund, once the world's largest bond fund, in December, bringing last year’s total cash withdrawals to $16.1 billion, Morningstar said on Friday. Regards, Ted http://www.reuters.com/article/funds-pimco-outflows-idUSL1N1EW14C
I have some dough in PTTRX, as it is my ONLY core-bond option in my 401k. So, like a lot of 401k investors, I am a bit of a captive-customer of it.
When Bill Gross left, I was hopeful/encouraged. His behavior & commentaries struck me as somewhat 'off' in the couple years leading up to his departure. From a p-r perspective, I thought it was smart to replace the 'bond-king' with not one, but THREE experienced managers Kiesel/Mather/Worah. And naming Ivascyn as PIMCO's CIO -- I viewed that as wise too. Then too, as PTTRX has been bleeding assets. -- M* always maintained it had too many AUM --- so presumably now, with its AUM considerably shrunken, it should be much more manageable, right?
Maybe my expectations for the new team were too high. -- In 2016, M* indicates PTTRX returned 2.60% vs the bond-index returning 2.65%. And PTTRX lags the index on a trlg 3-year bassis too. I know there is always a cost-drag, but then (successful) active-management is supposed to overcome that drag and then some.
Its doing 'OK', but given the more manageable size, 3 top-tier managers, and Ivascyn's leadership of the firm, I guess I expected a lot more of PTTRX since Gross departed. I admit to some degree of disappointment. Especially as PIMIX (which I hold in large positions in my taxable and IRAs) continues to regularly deliver multiples of the returns of PTTRX. I don't expect PTTRX to achieve returns comparable to PIMIX, but I am disappointed that given all the brainpower running PTTRX it cannot must meaningful, consistent outperformance vs a "dumb" bond index.
Would love to hear thoughts of other PTTRX holders, plus or minus. Am I being too stern of a critic?
Comments
When Bill Gross left, I was hopeful/encouraged. His behavior & commentaries struck me as somewhat 'off' in the couple years leading up to his departure. From a p-r perspective, I thought it was smart to replace the 'bond-king' with not one, but THREE experienced managers Kiesel/Mather/Worah. And naming Ivascyn as PIMCO's CIO -- I viewed that as wise too. Then too, as PTTRX has been bleeding assets. -- M* always maintained it had too many AUM --- so presumably now, with its AUM considerably shrunken, it should be much more manageable, right?
Maybe my expectations for the new team were too high. -- In 2016, M* indicates PTTRX returned 2.60% vs the bond-index returning 2.65%. And PTTRX lags the index on a trlg 3-year bassis too. I know there is always a cost-drag, but then (successful) active-management is supposed to overcome that drag and then some.
Its doing 'OK', but given the more manageable size, 3 top-tier managers, and Ivascyn's leadership of the firm, I guess I expected a lot more of PTTRX since Gross departed. I admit to some degree of disappointment. Especially as PIMIX (which I hold in large positions in my taxable and IRAs) continues to regularly deliver multiples of the returns of PTTRX. I don't expect PTTRX to achieve returns comparable to PIMIX, but I am disappointed that given all the brainpower running PTTRX it cannot must meaningful, consistent outperformance vs a "dumb" bond index.
Would love to hear thoughts of other PTTRX holders, plus or minus. Am I being too stern of a critic?