It's been a rough year for Pimco [profile]. John Rekenthaler wonders if the problem lies with the Newport Beach, California-based bond fund giant's ambition (though not its AUM) growing too much.

Pointing to a Kiplinger's article, the Morningstar guru highlights the performance woes of the Pimco Global Multi-Asset Fund PMed by Pimco CEO Mohamed El-Erian and of much of Pimco's lineup: 22 of its 87 funds are in the bottom 10 percent when it comes to year-to-date performance, while only six are in the top 10 percent.

"As PIMCO has morphed from being a bond-market specialist to a generalist that prides itself on asset allocation, its mission has become harder," Rekenthaler writes. "No, for the most part, I do not think that Pimco has become too big. Perhaps it has become overly ambitious." 

Edited by: Neil Anderson, Managing Editor


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