Rekenthaler Report

5 Years Later: PIMCO Total Return

John Rekenthaler

The Big Slide
In the spring of 2013,  PIMCO Total Return (PTTRX) was the world's largest mutual fund. Its fortunes were about to change, and then some. That May, the fund suffered the first of what would become 51 straight months of net outflows. PIMCO Total Return now ranks 28th in assets. It is not even the company's biggest offering, having been overtaken by  PIMCO Income (PIMIX).

The sales debacle seems silly, in hindsight. Intermediate-term bond funds by nature are sedate, and PIMCO Total Return has been no exception. The fund's negative 1.9% return in 2013 was its only calendar-year loss over the past decade. Even then, it slightly outpaced the industry's standard benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index (albeit while trailing its typical competitor). Nothing remarkable can be said about the fund's performance.

John Rekenthaler has a position in the following securities mentioned above: PTTRX. Find out about Morningstar's editorial policies.