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Tuesday, November 11, 2014

Pimco could withstand extra $300-$350 billion outflows over 2 yrs -Morningstar, (NASDAQ: MORN)

Pacific Investment Management Co can withstand additional outflows of about $300 billion to $350 billion over the next two years before its portfolio management operation is impaired, according to research firm Morningstar Inc on Tuesday.Pimco is struggling to stem redemptions after the unexpected departure of co-founder Bill Gross on Sept. 26, an event that has triggered another round of speculation in the bond market over leadership stability and a possible separation from its parent Allianz SE.Morningstar based its outflow estimate on the assumption that redemptions are orderly, Allianz continues its support and Pimco has strong firm-wide fund performance, Sumit Desai, an analyst at Chicago-based Morningstar, said in a webinar Tuesday to discuss the firm.Last week, Pimco reported outflows of $48.3 billion across its open-ended funds in October, adding to $25.5 billion of withdrawals in the previous month, Morningstar said.

Morningstar, Inc., is a provider of independent investment research to investors worldwide. Shares of MORN fell by 0.53% or $-0.37/share to $70.07. In the past year, the shares have traded as low as $61.03 and as high as $85.97. On average, 78937 shares of MORN exchange hands on a given day and today's volume is recorded at 88830.