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.
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.