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Bill Gross's Pimco Total Return Fund Assets Drop Again

Bill Gross's Pimco Total Return Fund Assets Drop Again

07/02/2014

 By Min Zeng and Kirsten Grind 

Investors pulled $4.5 billion from Bill Gross's Pimco Total Return Fund in June, the 14th straight month of outflows from his massive bond fund, despite returns that outpaced many rivals in the second quarter.

June's outflow represents 2% of its assets at the end of May and marks the biggest monthly outflow for the fund since September 2013, according to fund tracker Morningstar.

Assets in the flagship fund at Pacific Investment Management Co. fell to $225.2 billion at the end of June, compared with $228.9 billion a month earlier. Asset numbers also take into account performance of the fund, while flow numbers don't.

Total Return remains the world's biggest bond fund by assets. Mr. Gross is co-founder and chief investment officer at Pimco, which manages $1.94 trillion in global assets as part of Germany's Allianz SE.

A spokesman for Pimco said Wednesday the firm doesn't comment on specific fund flows.

In a statement, the spokesman said, "Patient investors are rewarded over the long-term by sticking with core bond allocations in a diversified portfolio. The PIMCO Total Return fund has outperformed its benchmark and a majority of its peers over the last 1, 3, 5, 10 and 15 years."

The Pimco fund continued to shrink even as the bond fund industry overall has seen new cash flowing in. U.S.-listed bond mutual funds and exchange-traded funds attracted $8.6 billion in new cash in June, bringing the inflow this year to $76.5 billion, according to fund tracker TrimTabs Investment Research.

DoubleLine Total Return Bond Fund at DoubleLine Capital, one of the Pimco fund's main rivals, attracted $515 million inflow in June and the fund's asset size was $33 billion at the end of last month, according to Morningstar.

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