Friday, May 07, 2004
Finance Tip for All Families: Fire PIMCO
The SEC has just filed civil fraud charges against giant mutual fund firm PIMCO Advisors for conspiring with hedge fund scumbags Canary Capital in a sweetheart deal to screw smaller shareholders.
To add insult to injury, the guy who signed off on this deal was the chairman of the board of directors for PIMCO's mult-manager funds. And he's still the CEO of the entire company.
Which means he's also CEO of the company that runs PIMCO Total Return, which is the world's largest bond fund, with $8.7 billion dollars under management.
If you hold bonds in a mutual fund, through an advisor, chances are good you own PIMCO Total Return.
There's no reason to think that fund manager Bill Gross is implicated.
It's not hard to cast a protest vote, though. You can move your retirement PIMCO Total Return holdings, and direct all new contributions into Harbor Bond, which Bill Gross, instead. You get the same great management, with lower expenses, anyway. At just a fraction of the cost (0.58% for Harbor as opposed to a pricey 0.9% PIMCO Total Return.)
It's not worth pulling all of your money out of Pimco, if it will generate a capital gains tax or other penalties.
But PIMCO --oops, did I say PIMCO? I meant "PIMP-CO--" deserves a shot across the bow for this one.
Splash, out
Jason
To add insult to injury, the guy who signed off on this deal was the chairman of the board of directors for PIMCO's mult-manager funds. And he's still the CEO of the entire company.
Which means he's also CEO of the company that runs PIMCO Total Return, which is the world's largest bond fund, with $8.7 billion dollars under management.
If you hold bonds in a mutual fund, through an advisor, chances are good you own PIMCO Total Return.
There's no reason to think that fund manager Bill Gross is implicated.
It's not hard to cast a protest vote, though. You can move your retirement PIMCO Total Return holdings, and direct all new contributions into Harbor Bond, which Bill Gross, instead. You get the same great management, with lower expenses, anyway. At just a fraction of the cost (0.58% for Harbor as opposed to a pricey 0.9% PIMCO Total Return.)
It's not worth pulling all of your money out of Pimco, if it will generate a capital gains tax or other penalties.
But PIMCO --oops, did I say PIMCO? I meant "PIMP-CO--" deserves a shot across the bow for this one.
Splash, out
Jason
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