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Gross Named Bond Fund Manager of Decade

Bill Gross, who manages the biggest mutual fund in the world for Newport Beach-based Pacific Investment Management Co., has been named the top bond fund manager of the past decade.

Chicago-based fund tracker Morningstar Inc. selected Gross as its Fixed-Income Manager of the Decade.

Gross has won the Morningstar’s Manager of the Year honor three times, in 1998, 2000 and 2007.

“No other fund manager made more money for people than Bill Gross,” said Karen Dolan, Morningstar’s director of fund analysis, in detailing his pick for the decade honor. “Investors of his flagship Total Return (Fund) are $47 billion wealthier for the decade.”

Pimco’s Total Return Fund managed by Gross recently became the largest fund of any type with $202 billion under management.

“Gross has stayed ahead of the competition throughout the decade by making the right calls at the right times,” Dolan said.

In a statement, Gross said, “My Pimco colleagues and I are honored that Morningstar has recognized our efforts to consistently manage risk and deliver returns on behalf of Pimco’s clients during a decade that has presented more challenges than any I can recall. Pimco’s investment professionals are the best in the world at what they do and (Chief Executive) Mohamed (El-Erian) and I are grateful to be able to lead them.”

Total Return had annualized returns of 7.7% during the 10 years through 2009, according to Morningstar.

That placed Gross in the top 1% of his bond fund peers during the past five years, according to Morningstar. In 10 years, Gross and the fund ranked in the top 3%.

Gross is co-chief investment officer for Pimco, overseeing $940 billion in bonds and other investments.

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