With over $1.2 trillion in assets under its belt, the Pacific Investment and Management Company (commonly known as PIMCO) is one of the world’s top bond fund managers. The firm, which formed its strengths in active bond management and equity futures management, has served millions of clients ranging from retail to institutional investors for the past four decades.
The firm runs the world’s largest mutual fund, the Total Return fund, which has over $200 billion in it, and oversees more than 70 mutual funds.
The Newport Beach, California based investment company was founded in 1971 by Bill Gross, who the New York Times called “the nation’s most prominent bond investor,” and Mohamed El-Erian, a top Oxford-educated economist who serves as the firm’s CEO and co-CIO.
Gross and El-Erian, whose expert views on the global economy are often influential and market-moving, are both fixtures on financial news networks such as CNBC and they both regularly contribute columns for business news publications.
PIMCO pioneered many investment and management strategies, including the “New Investment Manager Structure”, which incorporates portfolio management and client servicing with business administration.
Here are some facts about the company.
- The firm previously functioned as a unit of the Pacific Life Insurance Co., managing accounts for the insurer’s clients
- In 1971, Bill Gross, Bill Podlich and Jim Muzzy officially incorporated the company, launching with $12 million in assets
- PIMCO landed its first Fortune 100 client in 1977, securing its position in the industry and opening doors at other major corporations
- It is one of the first management firms to expand into the management of TIPS, emerging markets and municipal bonds
- The company was acquired by German financial services provider Allianz in 2000, creating the world’s sixth-largest investment management firm, but continues to run as an autonomous subsidiary from their parent company
- Mohamed El-Erian quit as head of the Harvard Management Company to become CEO of PIMCO at the end of 2007
- The firm is often called “The Beach” by bond dealers for its success and prominence as well as for its location on the west coast in Newport Beach
- In March 2011, PIMCO dumped all government-related debt from its Total Return fund, with Gross warning against U.S. deficit spending and its inflationary impact, which will undermine the value of government debt