I sense I am nearly alone in losing faith in Bill Gross' ability to maneuver his fund in the right direction. At best, as his earlier gains in BOND have slipped away, his fund is proving no more successful than an index fund. Of course the bond market is worsening and the redemptions that will occur as bond investors seek shelter in cash will add to the carnage. But my expectation is that, when you're paying a premium for the KING of bonds to manage this part of your portfolio that he will out-think the competition, especially indexes. Instead he seems to jump into and out of treasuries like a gambler, too often at the wrong time. And the redemptions he'll contend with as more investors head for safety in cash will make it all even worse.
This performance and mis-direction simply solidifies the genius of Vanguard's Bogle who has always maintained that over time active fund managers will under-perform the market indexes.
I have had my entire bond holdings with Gross and company for years but am in the process of shifting my money away from BOND and PTTRX into cash and into a total bond index. Gross simply does not merit the large fees Pimco charges for this type of management and when returns are this low these management fees don't even make sense.
Bottom line: This IS a great REIT with a long track record, suffering just like the REIT ETFs from self-inflicted panic that the Fed will let rate increases go crazy. That WILL NOT happen, particularly with the new Fed chairwoman. Tapering will be closely watched and controlled. This stock may drift lower but look for it to climb quickly once some normalcy returns. I'd definitely double up if share price drifts below $35/share. At that point corresponding dividends will be incredible.