Tags: pimco | bill gross | investors | fund | dan ivascyn

FT: Investors Pour $50 Billion Into Pimco, Embrace New Star as Gross Forgotten

FT: Investors Pour $50 Billion Into Pimco, Embrace New Star as Gross Forgotten
Pacific Investment Management Co.

By    |   Monday, 31 July 2017 02:01 PM

Investors reportedly have flocked back to Pimco, pouring nearly $50 billion into the investment house as a rising star fund manager has emerged after bond king Bill Gross’s 2014 departure.

Pacific Investment Management Co. has staged a “remarkable turnround” to become the world’s best-selling active mutual fund manager, the Financial Times reported.

“A revival for the fixed income specialist also points to a wave of demand for bond funds this year, even as central banks around the world prepare to implement tighter monetary policies which could hit prices for such securities,” the FT reported.

Pimco attracted almost $50 billion to its funds in the six months to the end of June, according to figures compiled for the Financial Times by Morningstar, the data provider. The group manages $1.6 trillion, down from $1.9 trillion when Gross left in September 2014.

The new money has been concentrated in just one product: Pimco’s $130 billion Income Fund run by Dan Ivascyn, who replaced Gross as chief investment officer.

Ivascyn’s fund became the world’s largest actively managed bond fund earlier this year, prompting fears the company risks again becoming too reliant on a star manager.

“Ivascyn, 48, was one of the senior Pimco fund managers who, amid infighting at the company in 2014, threatened to resign if Gross did not,” the FT reported.

For his part, Ivascyn has warned that the constant controversies surrounding the White House have harmed the U.S. economic outlook. 

President Donald Trump’s key initiatives such as a healthcare overhaul, tax cuts and fiscal stimulus are less likely to win approval before the 2018 mid-term elections as controversies build, Ivascyn recently told Bloomberg.

“We’re becoming a bit more cautious about the possibility of meaningful legislation,” Ivascyn said in a telephone interview from his office in Newport Beach, California. “These types of distractions are just going to make it even more difficult to gain consensus.”

The economy will grow slower than the Trump administration’s projections of 3 percent, Ivascyn said.

Pimco’s long-term outlook is for 2 percent U.S. growth, for inflation about 2 percent and a federal funds rate about 2 percent to 3 percent, according to a May 31 report.

(Newsmax wires services contributed to this report).

© 2020 Newsmax Finance. All rights reserved.


   
1Like our page
2Share
StreetTalk
Investors reportedly have flocked back to Pimco, pouring nearly $50 billion into the investment house as a rising star fund manager has emerged after bond king Bill Gross’s 2014 departure.
pimco, bill gross, investors, fund, dan ivascyn
366
2017-01-31
Monday, 31 July 2017 02:01 PM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved