The 7 Best Pimco Funds

Bond-management powerhouse Pimco has more than Bill Gross to crow about. We profile its seven best mutual funds.

Call it the Pimco touch. The Newport Beach, Cal., firm seems to excel in just about every category of fund it offers -- from bonds to stocks to commodities. And even though Bill Gross, who manages Pimco Total Return, the world's largest mutual fund, is still the firm's most-recognizable name, Pimco employs plenty of other managers with star power in their own right.

With $2 trillion under management and new money pouring into Pimco's funds, you might worry that the company is bound to stumble. But there are reasons to believe Pimco can maintain its terrific record. Chris Sawyer, an analyst for Litman Gregory, which publishes the No-Load Fund Analyst newsletter, says that Gross and the Pimco team seem to be aware of the pitfalls of resting on their past successes. "He demands excellence of his colleagues and expects his colleagues to demand that of him," Sawyer says. And although Pimco has tended to excel in part by making superb calls on the big economic picture, its funds don't bet the farm on any one particular economic prediction. They'll hold a range of bets at any given moment -- making big flameouts unlikely.

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Elizabeth Leary
Contributing Editor, Kiplinger's Personal Finance
Elizabeth Leary (née Ody) first joined Kiplinger in 2006 as a reporter, and has held various positions on staff and as a contributor in the years since. Her writing has also appeared in Barron's, BloombergBusinessweek, The Washington Post and other outlets.