Understand Why Pimco Total Return Fund Drop 5%. The Full Coverage!

PIMCO’s Total Return Fund or PIMCO is the world’s biggest bond portfolio headed by Bill Gross. Pimco Total Return Fund (PTTAX) took a fall of 5.26%, or 60 cents, to $10.80 a share on Wednesday.

According to the Pimco official, Total Return Fund had a short-term distribution of 44 cents and long-term cap gains distribution of 9 cents for a total of 53 cents. So if you do some math the amount would be around equivalent to the fall of 60 cents per share. Is that justifiable?

PIMCO is a short form for Pacific Investment Management Company, LLC, it is a global investment management and solutions firm headquartered in Newport Beach, California. It has its offices distributed around the major cities in the world including New York, London, Hong Kong, Tokyo, Munich, Zurich, Amsterdam, Toronto, Singapore, and Sydney.

PIMCO had over $1.3 trillion of assets under management at the end of September 2010. Gross manages the Total Return Fund, the world’s largest mutual fund with assets of $255.3 billion as of October 15, 2010. Previously, PIMCO had functioned as a unit of Pacific Life Insurance Co., managing separate accounts for that insurer’s clients. In 2000, Allianz SE – a large global financial services company based in Germany acquired PIMCO , but the firm continues to operate as an autonomous subsidiary of Allianz.

PIMCO describes itself as one of the fund investment company that managing the risk and delivering the returns to its clients. It now oversees investments totaling more than $1 trillion on behalf of a wide range of clients, including millions of retirement savers, public and private pension plans, educational institutions, central banks, foundations and endowments, among others.

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