Gross's top fund suffered $3.1 billion in losses in April

Pimco Total Return Fund sustained its 12th straight month of withdrawals as the world's largest bond fund trailed peers.

May 2, 2014 @ 8:51 am

+ Zoom
(Bloomberg News)

Bill Gross's Pimco Total Return Fund suffered its 12th straight month of withdrawals in April as the world's largest bond fund trailed peers.

Clients withdrew an estimated $3.1 billion from Pacific Investment Management Co.'s $230 billion fund, matching redemptions in March, Morningstar Inc. said in an e-mailed statement Thursday. The outflows represented about 1.3% of assets as of March 31, Morningstar said.

Mr. Gross, 70, has missed the rally in long-dated Treasuries in 2014 by concentrating on shorter-maturity bonds after last year misjudging the timing and impact of the Federal Reserve's plan to reduce stimulus. His fund has declined 1.7% in the past year, trailing 90% of similar funds. This year, the fund has advanced 2.1%, lagging behind 71% of rivals, according to data compiled by Bloomberg.

The Pimco Total Return Fund, a formerly top-ranked fund whose five-year ranking has slipped to the 59th percentile, lost money to redemptions last month even as investors started returning to fixed income. Industrywide, taxable bond funds attracted money in the first three weeks of April, according to the Investment Company Institute.

Investors pulled a record $41.1 billion from Pimco Total Return in 2013, according to Morningstar. They've removed $11.3 billion from the fund so far this year, the data show.

Morningstar estimates deposits or withdrawals for mutual funds on a monthly basis by computing the change in assets that isn't accounted for by performance. The fund's actual withdrawals or deposits may differ from Morningstar's estimates because of the timing of purchases and redemptions or dividend distributions.

(Bloomberg News)

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

What to do when your partnership ends

Breaking up is hard to do: and that is certainly true when it comes to advisory firms. Financial Adviser Rob Holdford tells his story and explains how you can survive and thrive when a partnership dissolves.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

T. Rowe Price steps up its game to serve financial advisers

The Baltimore-based mutual fund giant is more aggressively targeting financial advisers with a beefed-up wholesale crew and placement on custodial platforms.

The most important tax changes for 2018

The Internal Revenue Service issued inflation adjustments to more than 50 tax provisions for 2018.

Shift to Roth 401(k)s 'highly likely' part of tax reform: former Treasury official Mark Iwry

Mandated contributions to Roth accounts would likely only be partial, as opposed to having a full repeal of pre-tax accounts.

E*Trade acquiring custodian Trust Company of America

Discount broker buying second-tier custodian for $275 million.

Another thousand Dow points higher, and investors yawn

Market milestones keep falling like dominoes, with 51 records broken so far this year.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print