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Massive Outflows in June at PIMCO Total Return

New lead managers for 2 Mairs & Power funds, ORIX to buy 90% of Robeco, and Harbor removes Marsico Capital as the subadvisor of Harbor International Growth.

Morningstar Fund Analysts, 07/04/2013

Over the past two-plus weeks, many bond investors have headed for the exits, on the heels of Federal Reserve Bank chairman Ben Bernanke disclosing plans to end quantitative easing.

The news has roiled bond markets, and some of the first flow data that has been released by fixed-income managers show that June was an ugly month for them from a fund-flows perspective.

Among those bond funds feeling major pain is PIMCO Total Return PTRRX, which is the world's largest bond fund. PIMCO recently informed Morningstar that PIMCO Total Return's preliminary net outflows for June were a whopping $9.9 billion. That's about 3.5% of the $285 billion that the fund had at the end of May. The fund slid 2.6% for the month.

Morningstar will release its June fund flows data in another week. To view May 2013 flows data, go here.

Eyeing Bill Frels' Upcoming Retirement, Mairs & Power Taps Lead Managers for Growth and Balanced Funds
Mairs & Power is preparing for the retirement of longtime portfolio manager Bill Frels more than a year from now, on Dec. 31, 2014 (at age 75). Effective July 1, Mark Henneman is lead manager of Mairs & Power Growth MPGFX and Ron Kaliebe is lead manager of Mairs & Power Balanced MAPOX. Frels is moving to a comanager role on both funds.

Both funds have earned 5-star records under Frels' lead, as well as Morningstar Analyst Ratings of Silver. Frels joined Mairs & Power in 1992 and had been lead manager of the Balanced fund since then. He began comanaging the Growth fund in 1999 with George Mairs III, taking over as lead manager in 2004. Frels and Henneman were named Morningstar's Domestic-Stock Fund Manager of the Year in 2012 for their work on the Growth fund.

These are well-laid transitions: Henneman and Kaliebe have been comanagers of their respective funds since 2006, and Frels will be contributing for another 18 months. This is another example of a culture of strong stewardship that has earned Mairs & Power a Parent rating of Positive from Morningstar's analysts.

ORIX to Purchase 90% of Robeco
Japanese bank ORIX Corporation will purchase 90% of Robeco Groep N.V., the asset-management arm of Dutch bank Rabobank.

Morningstar fund analysts cover more than 1,700 mutual funds and write regular commentary covering fund industry news, fund investing trends, picks, portfolio planning, international investing, and more.

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