PIMCO, the world's largest bond fund is moving away from its investments in mortgage-backed securities and U.S. government-related holdings, presumably its major Treasury holdings.

According to an article on CNBC, the PIMCO Total Return Fund cut its holdings of mortgage securities in February to 29% from 36% in January. Apparently, the comapny is shifting towards more exposure to non-U.S. developed market securities.

Why would the Fund change strategy?

According to another article, there is some strife at the center of PIMCO. Investors, which include funds such as the North Dakota State Investment Board, are putting the fund on a watch list after the resignation of CEO Mohamed El-Erian.

Meanwhile, there appears to be falling confidence at PIMCO in the ability of the Federal Reserve to keeping holding strong with its monetary course, despite its taper away from the mortgage-backed securities market.

"In addition to the changing policy rate at the center, asset prices on the outer circles are dependent on investor expectations and the confidence in policymakers and the effectiveness of their policies," writes co-founder Bill Gross in his March Investment Outlook. "The center must have credibility, the center must 'hold' or else the entire array of asset prices at the extremities is at risk."