Bill Gross sees bond fund assets hit lowest level since November 2014

Fund has lost 7% so far this year after Gross made a bad bet on rates on U.S. Treasuries and German bunds

Aug 9, 2018 @ 9:24 am

By Bloomberg News

Investors pulled money from Bill Gross's bond fund for the fifth consecutive month in July, reducing the fund's assets to the lowest since November 2014, less than two months after Mr. Gross took over the go-anywhere pool.

The Janus Henderson Global Unconstrained Bond Fund suffered more than $200 million in redemptions last month, according to Bloomberg estimates. That helped lower the fund's assets to $1.25 billion compared with February's all-time high of $2.24 billion.

Mr. Gross has piled up year-to-date losses of 7%, one of the toughest slumps in a storied career that dates to 1971, when he co-founded Pacific Investment Management Co. The decline was attributed in part to a misplaced bet that rates on U.S. Treasuries and German bunds would converge, a position the fund later scaled back.

Mr. Gross, 74, took over the unconstraine fund in October 2014 after being ousted from Pimco, where he managed the world's onetime largest mutual fund, Pimco Total Return.

Janus Henderson spokeswoman Erin Passan and Mr. Gross didn't immediately reply to requests for comment.

Estimates for the Janus fund flows are based on the change in assets over the month that isn't accounted for by performance, fees or reinvested dividends. The numbers may vary from actual figures and from estimates compiled by other data providers.

(More: Bill Gross's bond fund sees $580 million of outflows in first half)

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