Insights

Pimco Strongly Outperforms Peers, Suffers Capital Outflows Anyway. Another Example of Why Your Performance Doesn’t Really Matter.

Taking Investors’ Temperature, February 2016

Pimco’s Total Return Fund has suffered continuous outflows since the sudden departure of Bill Gross in September 2014 despite strong performance. Previously, Pimco overall had strong net capital flows at the firm despite historically poor performance at its flagship fund (as we discussed in our January 2015 Investors’ Temperature). Pimco’s experience during both these periods illustrates Chestnut’s bedrock belief, backed by our market research: investor trust, not manager performance, is the primary driver of net asset flows.


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