Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
What might the Janus Global Unconstrained Bond Fund look like under Bill Gross?
Good thought. I know it's good because I make a similar observation in our impending profile of JACUX. Gross has managed PIMCO and Harbor Unconstrained since their manager's sudden desire for a sabbatical in December 2013.
From what I haven't heard, he has no restrictions from Pimco. I'd suspect he would pretty much mimic what he is comfortable with albeit at a smaller portfolio to start.
Thank you. I figure the smaller size of the Harbor Unconstrained Fund might give a better sense of what he might be up to in Janus' Unconstrained Global in that Mr. Gross would (initially at least) have ability to be very opportunistic with small asset size.
Looking forward to David's commentary, but if HAUBX is what the new fund could be like, looks like more gross-mediocrity, pun intended. There are just better funds in this category out there.
I'm still amazed at all the publicity Gross's move and his new potential fund are getting. Just makes no sense to me why this fund would end up on anyones must-have-list.
Looking forward to David's commentary, but if HAUBX is what the new fund could be like, looks like more gross-mediocrity, pun intended. There are just better funds in this category out there.
I'm still amazed at all the publicity Gross's move and his new potential fund are getting. Just makes no sense to me why this fund would end up on anyones must-have-list.
I don't really disagree with you. After the initial announcement, I said I thought Janus (the stock) was an interesting potential short if I was going to/could short individual stocks. I still think the benefits to Janus could very well be less-than-anticipated.
So will Bill Gross continue to be the manager of the Harbor Bond Fund and the Harbor Unconstrained Bond Fund? Why would money follow Gross to Janus, when he is the manager of these two Harbor bond funds? Seems that Janus would not appreciate this arrangement.
Harbor Fund, like American Beacon, to a certain extent Vanguard, and other fund families, legally manages their funds but subcontracts out the day to day management to other management companies, not specific managers.
The Adviser has engaged the services of several subadvisers (each, a “Subadviser”) to assist with the portfolio management of the Funds ... Each Subadviser is responsible to provide the Fund with advice concerning the investment management of the Fund’s portfolio, which advice shall be consistent with the investment objectives and policies of the Fund. The Subadviser determines what securities shall be purchased, sold or held for the Fund and what portion of the Fund’s assets are held uninvested. ...
Harbor Commodity Real Return Strategy Fund, Harbor Unconstrained Bond Fund, Harbor Bond Fund and Harbor Real Return Fund. The Funds are subadvised by Pacific Investment Management Company LLC (“PIMCO”).
So if Harbor wants Gross to continue, it seems it would have to negotiate a new subadvisory contract with Janus, which would likely need fund shareholder approval. BTW, Gross owns no shares of the Harbor funds he managed.
@msf, a good piece of detective work you did. Good to know. I bet most of the shareholders in Harbor Bond and Harbor Unconstrained Bond invested there because of Gross. I recall many years ago, M* recommended people investing in Harbor Bond as a cheaper way to get access to Bill Gross' investing skills than Pimco Total Return.
Comments
Good thought. I know it's good because I make a similar observation in our impending profile of JACUX. Gross has managed PIMCO and Harbor Unconstrained since their manager's sudden desire for a sabbatical in December 2013.
More soon,
David
Thank you. I figure the smaller size of the Harbor Unconstrained Fund might give a better sense of what he might be up to in Janus' Unconstrained Global in that Mr. Gross would (initially at least) have ability to be very opportunistic with small asset size.
The PIMCO equivalent [https://investments.pimco.com/products/pages/349.aspx] has as of 09-30-14 $21 Billion in assets. Janus (as noted above) has only $41 Million.
I'm still amazed at all the publicity Gross's move and his new potential fund are getting. Just makes no sense to me why this fund would end up on anyones must-have-list.
Why would money follow Gross to Janus, when he is the manager of these two Harbor bond funds? Seems that Janus would not appreciate this arrangement.
From the prospectus: Not by Gross (or Worah for the Commodity fund).
Here's the subadvisory contract between Harbor and PIMCO for the Unconstrained Bond Fund; the manager's name (Gross) appears nowhere in the contract.
http://www.sec.gov/Archives/edgar/data/793769/000119312513336741/d583237dex99d40.htm
So if Harbor wants Gross to continue, it seems it would have to negotiate a new subadvisory contract with Janus, which would likely need fund shareholder approval. BTW, Gross owns no shares of the Harbor funds he managed.