There was some shocking news late last week that bond guru Bill Gross had decided to leave Pimco a firm he started well over 30 years ago. Normally, as a Financial Advisor with assets invested with Pimco I would do a review of the incoming manager(s) and determine if the right thing to do is buy, sell, or hold? Well, the same should probably be done if you have assets invested in your 401(k) or IRA with Pimco. Most 401(k) participants that have any exposure to fixed income in general have some form of an allocation to Pimco either through them directly or via a fund of funds that invests in a basket of other managers. The demise of the firm may have started a few years back when Gross decided it was the right time to take big directional bets. This has led to an already steady outflow of assets as his thesis has been wrong so far and individuals and institutions become frustrated with waiting.
So, the moral of the story becomes please do your own due diligence or sit down with your financial advisor and determine whether or not you need to make a change to your own asset allocation.
Signing off for now...
Eric Marvin
Past performance is no guarantee of future results. Please always consult your financial advisor with questions pertaining to your specific situation.
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