March 21 Pacific Investment Management Co on
Friday launched the Pimco Global Income Opportunities Fund, one
of the largest closed-end funds to list on the Toronto Stock
Exchange, according to a statement by the firm.
The fund, which raised $600 million in its common share
offering, will be managed by Alfred Murata and traded under the
symbol "PGI.UN." The actively managed portfolio is comprised
primarily of fixed-income securities selected from multiple
global fixed-income sectors.
This is the first time Pimco is launching a closed-end fund
in Canada. Pacific Investment Management Co, which had $1.91
trillion of assets under management as of Dec. 31, is a unit of
European financial services company Allianz SE.
The news is a refreshing break after a rough week for the
firm. Morningstar Inc analysts downgraded Pacific
Investment Management Co's overall stewardship grade by one
notch on Tuesday, reflecting a higher degree of uncertainty
after the departure of Mohamed El-Erian and other key personnel.
The research firm downgraded Pimco's stewardship grade to a
C from B following a comprehensive review of Pimco which
included a visit to the Newport Beach, California-based fund
company by Morningstar analyst Eric Jacobson on March 10. The
highest grade is an A and the worst is an F.
Morningstar's Jacobson reaffirmed its Gold Rating on Bill
Gross's flagship $236 billion Pimco Total Return as "Gross is
still one of the best around; modest showings in 2011 and 2013
were disappointing, but expectations of perfection weren't
But on Thursday, Pimco was replaced by TCW Group Inc as the
subadvisor of a $1.3 billion bond fund offered by Columbia
Management Investment Advisers LLC. According to a source
familiar with the situation, the move out of Pimco had been in
the works since October and was unrelated to the management
shakeup at Pimco.
(Reporting By Jennifer Ablan; Editing by Bernard Orr)