If PIMCO’s New Fund Loses Money Bill Gross Will Eat These Fees Himself

Pacific Investment Management Co., seeking to raise $600 million for a fund that would invest in residential mortgages, agreed to slash its management fee should the fund suffer losses. Pimco REIT Inc., which filed for an initial public offering in April, disclosed last week that its annual management fee would decline to 1.0 percent from 1.5 percent if the fund loses money over a one-year period…“Investors have complained that you shouldn’t be able to earn a fee if the entity is losing money,” said Merrill Ross, a REIT analyst at Wunderlich Securities Inc., a regional brokerage based in Memphis, Tennessee. “But no one has ever offered this as a resolution before.” [Bloomberg]