Leaving Pimco? 4 Gold-Rated Fund Options
Gross' departure from the firm he co-founded in 1971, for a much smaller fund at Janus Capital, prompted a record $446.5 million in withdrawals on Sept. 26. The following Monday Morningstar downgraded the bond fund's rating from gold to bronze. Overall, Pimco reported net outflows of $23.5 billion in September.
As investors flee, what are their options? "If you are looking for a substitute the next logical step would be to look at the intermediate bond funds that are gold-rated," says Morningstar analyst Josh Charney, who adds that only about 3% of total funds receive such a rating. "That could be a really good starting point."
With many advisors reevaluating their bond fund investments, here are the four intermediate-term bond funds that also carry a gold rating from Morningstar. -- Andrew Coen
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All data from Morningstar as of Oct. 2.
Metropolitan West Total Return Bond Fund (MWTRX)
3-year return: 5.64%
Total assets: $34.2 billion
YTD Flows: $7.3 billion
Dodge & Cox Income Fund (DODIX)
3-year return: 4.90%
Total assets: $29.4 billion
YTD Flows: $3.4 billion
Fidelity Total Bond Fund (FTBFX)
3-year return: 3.97%
Total assets: $16.1 billion
YTD Flows: $3 billion
Loomis Sayles Investment Grade Bond A (LIGRX)
3-year return: 6.31%
Total assets: $10.4 billion
YTD Flows: $254 million