Archive for November 2008

Get Bill Gross For Less

November 12, 2008

Pimco’s Bill Gross is arguably the best bond manager that has ever lived.  His Pimco Total Return Fund sports returns since inception that look like they should be equities, not bonds.  But Bill Gross’ expertise comes at a price.  The Class A shares of Total Return (PTTAX) have a 3.75% front-end load, a 1.0% back-end load and annual expenses of .96, which includes a .25 12b-1 fee.  Pretty steep price of admission, although having Bill Gross manage the bond portion of your portfolio is a dream scenario.  But what if you could get Bill Gross managing a no-load fund with identical portfolio composition and performance to Pimco Total Return? No front-end load, no back-end load, no 12b-1 fee and annual operating expenses of only .57. And he has managed this fund since the late 1980’s.  Wouldn’t you love to own this fund?  Well, you can.  Look at the Harbor Bond Fund (HABDX).