NEWPORT BEACH, Calif., Jan. 10, 2001 (PRIMEZONE) -- PIMCO announced today that assets under management of the PIMCO Total Return Bond Fund increased over 28 percent since the beginning of 2000 and exceeded $38.2 billion as of December 31, 2000, reinforcing its position as the world's largest bond mutual fund.
PIMCO also announced that Total Return Fund manager Bill Gross and his team have been named "Fixed Income Manager of the Year" by Morningstar, the Chicago-based investment information and research firm. Morningstar's rating was based on the fund's long-term performance, as well as the particularly impressive results it achieved during 2000, when Total Return's institutional class share performance was 12.09 percent, compared with 11.63 percent for its key performance benchmark, the Lehman Brothers Aggregate Bond Index.
PIMCO won the same award in 1998, making it the first two-time winner in Morningstar history.
"The consistent, successful management style of Bill Gross and his team has set PIMCO apart from other money managers," said William S. Thompson, PIMCO's Chief Executive Officer. "Since its inception in May 1987, aided by PIMCO Funds' expanding retail and remarketing distribution channels, the Total Return Fund and PIMCO's management style has achieved widespread acceptance in the United States and abroad."
The Total Return Fund has been turning in an impressive performance for the past decade. Its three-, five- and 10-year performances were 7.06 percent, 7.19 percent and 9.21 percent, respectively. The Lehman Brothers Aggregate Bond Index for the same periods were 6.36 percent, 6.46 percent and 7.97 percent. The Total Return Fund has an overall five-star rating from Morningstar and is rated number 1 of 33 in the Lipper Intermediate Investment Grade Debt category for the 10-year period ended December 31, 2000.
In its decision to name Gross "Fixed Income Fund Manager of the Year," Morningstar noted PIMCO's "success with risk controls that keep portfolios from taking dangerous bets." The result: Total Return produced a hefty return during a year when nearly 40 other bond funds lost more than 10 percent.
Investors shared that sentiment during 2000, giving the Total Return Fund a net cash flow of over $5 billion - more than any other bond fund.
With more than $210 billion in fixed income assets under management, PIMCO is one of the world's leading fixed income fund management companies. Founded in 1971 and based in Newport Beach, Calif., the company is majority owned by Munich-based Allianz Group, a leading global insurance company with nearly $670 billion in assets and represented in 70 countries around the globe. In addition, PIMCO manages a family of 64 stock and bond mutual funds available to both retail and institutional investors.
Except for the historical information and discussions contained herein, statements contained in this news release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may involve a number of risks, uncertainties and other factors that could cause actual results to differ materially, including the performance of financial markets, the investment performance of PIMCO's sponsored investment products and separately managed accounts, general economic conditions, future acquisitions, competitive conditions and government regulations, including changes in tax laws. Readers should carefully consider such factors. Further, such forward-looking statements speak only on the date at which such statements are made. PIMCO undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.
Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that Fund shares, when redeemed, may be worth more or less than their original cost. Returns are annualized and net of fees and other expenses for Institutional Class shares and includes reinvestment of dividends, income and capital gains, if any. The Lehman Brothers Aggregate Bond Index is an unmanaged market index representative of the U.S. taxable fixed income universe. Investments in foreign securities and markets pose different and possibly greater risk than those customarily associated with domestic securities, including currency fluctuations, foreign taxes and political instability. Morningstar proprietary ratings reflect historical risk-adjusted performance, are subject to change monthly, and are calculated from the fund's 3-, 5-, and 10-average annual returns as of December 31, 2000. The ratings are inclusive of appropriate sales charge adjustments, and a risk factor that reflects a fund's performance below 3-month Treasury bill returns. In the case of the Total Return Fund, the Morningstar ratings are based upon the Funds' Institutional Class shares, other classes may vary. The top 10% of the funds in an investment category receive 5 stars, the next 22.5% receive 4-star ratings. The Total Return Fund received 5-, 4- and 5-star ratings out of 1,769,1,309, and 398 taxable bond funds for the 3, 5, & 10-year periods, respectively. According to Lipper Analytical Services, Inc., the fund's total return performance ranked 17 of 289, 2 of 153 and 1 of 33, for the 1-, 5- and 10-year periods in The Lipper Intermediate Investment Grade Debt Category as of 12/31/00. Call or write for a current PIMCO Funds prospectus containing more complete information, including management fees and expenses. Please read it carefully before you invest or send money. PIMCO Funds Distributors LLC, 2187 Atlantic Street, Stamford, CT 06902, (800) 927-4648.