PIMCO hiring Franklin Resources and GS to open global equity fund

Discussion in 'Wall St. News' started by ASusilovic, Nov 10, 2010.

  1. ‘Not Sustainable’

    Allianz reported fixed-income deposits of 127 billion euros in the 12 months ended Sept. 30. Its third-quarter deposits climbed 19 percent from the same period in 2009.

    Baete said investors may turn away from fixed-income funds and move to equities if interest rates increase from the near- zero levels that they’ve been at for the past two years. The deposits into bond funds are “probably not sustainable and we are seeing the buildup of a new bubble,” Baete said.

    In a July 28 interview with Tom Keene on Bloomberg Radio’s “On the Economy,” Gross said Pimco had been attracting almost $1 billion a week from investors.

    Under Chief Executive Officer El-Erian, Pimco last year began a push into equities as it looks to diversify beyond its mainstay of bonds. The firm has hired portfolio managers from Franklin Resources Inc. and Goldman Sachs Group Inc.’s asset- management unit to open global equity funds.


    It´s absolutely ridiculous. PIMCO is attracting $1 billion per week and looking to diversify its business into equities. I ask myself who are these morons pushing billions into bond mutual funds ???? And where are these investors coming from ? The US ? :confused:
  2. 1) When "noted" investors get involved in "new" types of investments, be careful! :(
    2) It very well may be the Summer of 2007, all over again. :eek: