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Thursday, January 07, 2016|
Pimco Reverses a 31-Month Trend as Layoff Rumors Persist
Doug Hodge and his team just reversed a 31-month trend, even as they continue to fend off rumors of layoffs.
Bloomberg, the Financial Times, Reuters, and the Wall Street Journal all report that in December 2015 Pimco's [profile] flagship Total Return Fund bought in $1.3 billion, its first net inflows since April 2013. AUM in the fund stood at $89.9 billion on December 31, 2015, down from a peak of $293 billion two and a half years ago when it was the largest mutual fund in the world.
Yet some Pimco-watchers still worry about the possibility of layoffs. On the other side of the Atlantic, Laura Suter of Money Marketing reports that the pension consultants at NEPC are warning clients about an anticipated "scaling back of non-investment professionals" at Pimco.
"Pimco has already slowed their hiring rate to allow natural attrition to rescale their business model," NEPC reportedly said in a meeting for a pension fund.
Pimco reportedly told the publication that its natural attrition rate is 10 percent and declined to comment beyond that. Similar layoff rumors hit TV news in September 2015.
Printed from: MFWire.com/story.asp?s=53235
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