Gundlach's DoubleLine Fund has third month of net redemptions

Jeffrey Gundlach's DoubleLine Total Return Bond Fund, which has beaten 97% of rivals over the past three years, had its third straight month of net withdrawals as investors continued to flee bonds.
OCT 01, 2013
Jeffrey Gundlach's DoubleLine Total Return Bond Fund, which has beaten 97 percent of rivals over the past three years, had its third straight month of net withdrawals as investors continued to flee bonds. Clients pulled an estimated $1.1 billion from the $36.8 billion fund in August, according to research firm Morningstar Inc. The fund had $1.2 billion of net redemptions in June, its first monthly withdrawals since opening in April 2010, followed by redemptions of $580 million in July, Chicago-based Morningstar said. Fixed-income fund withdrawals were triggered by U.S. Federal Reserve Chairman Ben Bernanke, who told Congress on May 22 that the central bank could start reducing its bond purchases and is prepared to begin phasing out one of the most aggressive easing programs in its century-long history later this year. Investors pulled $17.1 billion from U.S. bond funds last month through Aug. 21, according to estimates from the Investment Company Institute. Gundlach said in an interview in April that shrinking market returns would prompt an end to the rush of investor money into bond funds, including his. Gundlach co-founded Los Angeles- based DoubleLine Capital LP in December 2009 after he was dismissed from TCW Group Inc. over a dispute. A phone call and e-mail to Loren Fleckenstein, an analyst at DoubleLine Capital, weren't immediately returned. DoubleLine Total Return Bond Fund declined 0.9 percent this year, ahead of 87 percent of similarly managed funds, and has advanced 7 annually percent over the past three years to beat 97 percent of peers, according to data compiled by Bloomberg. Morningstar estimates deposits or withdrawals for mutual funds by computing the change in assets on a monthly basis 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)

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.