How will the millions taken from PIMCO today be used? Will they be held? What do you think?

[littlemissmartypants]

Good or bad? And what are your thoughts on the Argentine bank, too?
~lmsp

[elleng]

1. 'Competitors such as Vanguard and DoubleLine Funds have benefited

from the problems at Pimco, which has huge holdings in assets such as US Treasury bonds and mortgage-backed securities.

They have attracted hundreds of millions of dollars from Pimco's departing investors, reflecting the sensitivity such funds have to management changes.'

http://www.bbc.com/news/business-29454263

[littlemissmartypants]

2. Thanks. eom

[A HERETIC I AM]

3. Management tenure in Mutual Funds is very important to some investors....

particularly pension funds and insurance companies. Continuity tends to mean stability. People with a particular money management style rarely change in mid-stream. With Gross departing Pimco, investors would understandably feel concerned that the management of the fund will change in unpredictable ways.

If the yield curve on Treasuries rises, as should be expected in the future, the value of bonds in general as well as those held in the fund will fall, taking with it the share price of the fund.

People are going to look for return on their money, be it a pension fund or your Aunt Mable, so what will happen to the money realized from share redemption's? It will likely go into another fund that looks preferable to Pimco's Total Return, whichever that might be.