Bill Gross and Larry Fink manage a $3 trillion pile of bonds -- an amount almost as big as Germany’s economy. Their firms, Pacific Investment Management Co. and BlackRock Inc., doubled holdings since 2008, outpacing the market’s growth of 50 percent.
Bill Gross’s Pacific Investment Management Co., which suffered record redemptions from its main mutual fund last year, was dropped as manager of a $1.3 billion bond fund offered by Columbia Management Investment Advisers LLC.
Pacific Investment Management Co. was replaced by TCW Group Inc. as the manager of a $1.3 billion bond fund offered by Columbia Management Investment Advisers LLC, as the world’s biggest bond firm reorganizes management and faces client redemptions.
Morningstar Inc. analysts may downgrade their ratings for Pacific Investment Management Co.’s mutual funds after a review of the firm’s regulatory issues, board quality, manager incentives, fees and corporate culture.