8 Funds That Investors Are Fleeing in Droves
Should you hold on or bail?
Last week, I wrote about funds with high levels of inflows. Today, I'll look at some that people are fleeing. The outflow figures are for the 12 months ended May 2015.
PIMCO Total Return (PTTRX), Negative $125 Billion
Why the big outflows? The Bill Gross kerfuffle. We just reaffirmed our Bronze Morningstar Analyst Rating on the fund, as things have actually gone pretty well since Gross' departure. The outflows are the biggest negative, but they have had little to no impact on returns, and performance has been solid. The new three-person team seems to be functioning well so far, though we'll want to see more evidence of that before considering an upgrade. Outflows have finally started to slow down, though there's no telling when they'll actually end. I haven't touched my PIMCO Total Return investment (other than rebalancing) since Gross left, and I think that's the wise course for most people.
Russel Kinnel has a position in the following securities mentioned above: PTTRX. Find out about Morningstar’s editorial policies.