PIMCO - "Your Global Invesment Authority"?

Pacific Investment Management Company (or PIMCO), is one of the worlds largest bond fund managers and has deservedly or arguably earned the title "the global authority on bonds". Their Total Return bond fund, managed by Bill Gross, is the world's largest mutual fund with $234 billion of assets under management, and has returned an average of 7.5% over the past five years, which is better than 98% of its peers according to Bloomberg.

PIMCO has emerged from the Financial crisis stronger; It has continued hiring as the competition has paused or pulled back, and assets under management have steadily grown to over $1.2 trillion. It enjoyed stronger net inflows than any other large US bond fund firm in the 12 months to the end of June. Any change in its stance makes waves, which helps explain why Spain's finance minster recently paid PIMCO a visit. Spain is the S in the sovereign 'PIGS'.

So what is PIMCO saying now that it is diversifying it's offering into stocks, ETF's and more? Mohamed El-Erian and Bill Gross having been talking for some time now about the 'new normal' - subdued global economic growth as a result of rich world over-indebtedness and insufficient consumption in developing countries. The new normal they believe means the end of the decades long bull market in bonds and mediocre returns in general.

GB