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.
Late reply. You will have to pay a fee unless you open an account directly with Berwyn. I've owned it through my Scottrade account and Scottrade charges only $17/transaction vs. Fidelity's $49 or Schwab's $75. When you're dollar cost averaging, these fees will kill you. More worth it if you can put a good amount of money behind each trade.